THE DOMINANT FACTORS OF PRODUCT WHICH INFLUENCE PRESIDENT UNIVERSITY STUDENTS IN BUYING DECISION OF MOBILE INTERNET SERVICE PROVIDER: A CASE STUDY OF PT. SMARTFREN TELECOM, TBK.

Abstract

The purpose of this research is to identify the dominant factors of product influence President University Students choose Smartfren as an internet service provider. The researcher rank the factors based on “Three Level of Product” theory by Philip Kotler and Armstrong. This research was designed using quantitative research, which involves analysis of factor to determine the dominant factors. The questionnaire was spread to 71 students in President University. All of the respondents are the user of Smartfren. All of the statement is elaborated based on the theory. The questionnaire is designed to answer the matters observed and divided into several variables. Likert scale is used to measure the data. The researcher use factor analysis to search the most dominant factor. Factor analysis is a statistical method used to describe variability among observed, correlated variables in term of potentially lower number of unobserved, uncorrelated variables called factors. From the research founding, the needs of an excellent internet service provider become the most dominant factor why customer choose Smartfren as internet service provider. The first dominant factor has 31.696% of variance. From the variance, the least dominant factor is quality of customer service with 2.440% of variance. Since Smartfren is a merger between 2 products, which are Smart and Mobile-8, company must be able to highlight the strength of the product, which is in this research related with the most dominant factor. In order to gain more customers, Smartfren also have to improve the least dominant factor which is the quality of customer service. The researcher hopes the research founding can be applied in telecommunication sector and improve understanding in product knowledge.