Determining Factors Affecting Customer Loyalty to Internet Service Provider during the COVID-19 Pandemic: A Structural Equation Modeling Approach

Abstract

Internet Service Provider (ISP) has been a critical aspect during the COVID-19 pandemic especially in developing countries such as Indonesia. The purpose of this study was to determine factors affecting customer loyalty to ISP in Indonesia during the COVID-19 pandemic by utilizing a structural equation modeling (SEM) approach. There were 252 respondents who voluntarily answered an online questionnaire which consisted of 49 questions that covered several factors such as Customer Service Performance (CSP), Internet Quality (IQ), Router Quality (RQ), Payment Method (PM), Internet Package (IP), Security & Privacy (SP), Promotion (P), COVID-19 impact (CV), Customer Satisfaction (CS), and Customer Loyalty (CL). SEM showed that IQ was found to have the highest effect on CS which subsequently led to CL, followed by SP, CSP, RQ, and PM. This study is one of the first studies that explored customer loyalty to Internet Service Providers during the COVID-19 pandemic. The SEM construct can be applied and extended to enhance customer satisfaction on ISP particularly in developing countries.