THE RELATIONSHIP AMONG MARKETING MIX, SATISFACTION, AND REPURCHASE INTENTION ON SMARTFREN USERS AT BRAWIJAYA UNIVERSITY

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1 THE RELATIONSHIP AMONG MARKETING MIX, SATISFACTION, AND REPURCHASE INTENTION ON SMARTFREN USERS AT BRAWIJAYA UNIVERSITY Rakhmansyah Wildan Akbar H Supervisor: Prof. Dr. Djumilah Zain, SE. International Management Program, Faculty of Economic and Business, University of Brawijaya idankwildan@gmail.com Abstract Repurchase intention by consumers is one of the most important things that must be maintained by the marketer. The reason is the diminishing market share due to the increase in the number of competitors. Marketers have utilized a variety of ways to increase the repurchase by the consumer, including maximizing the marketing mix to gain customer satisfaction, because customer satisfaction is the key to repurchase intention. This study aims to determine the effect of marketing mix to repurchase intention through satisfaction. The analysis used in the study is path analysis with 100 Smartfren users as samples. The sampling technique was purposive sampling. Validity test and reliability test is conducted for instrument testing. The study results indicate that the marketing mix variables only have significant positive effect on repurchase intention when through satisfaction. Satisfaction is variable with the most influence on repurchase intention. Smartfren need to develop a marketing mix to maintain customer satisfaction and repurchase from customers. Keywords: Smartfren, Marketing Mix, Satisfaction, Repurchase Intention Background of the Study Business growth has increased rapidly. The competitions in business become more oppressive. This condition is not only caused by the growing of the existing company, but also from the new companies which try to enter the market. Due to the prevailing tight competition, every company is obliged to enhance its competitive advantage in order to maintain its customer. This high intensity of the competition in business may occur because the companies operating in the same business are numerous. All these companies create many products which give the customer more options to get the product they compatibly need. When the market has provided many kinds of product, the competition becomes more intense because the customer may choose the product which is compatible for them. Furthermore, the market share for the company is also decreased. This situation enables the company to maintain the long term relationship with the customer and make them loyal customers. However, having loyal customers does not necessarily influence the profit or sales. The company needs more actual loyal customer, which is called customer retention (Buttle, 2004). The competition in communication business sector has been stricter because there are several companies which enter this business sector. The expansion that happens in this business sector may make the market share of each company

2 decrease. In Indonesia, there are ten companies which enter the communication business sector whether in GSM or CDMA technology (kemenkominfo, 2013). This is the highest number of communication providers in the world. To compete in this business sector in Indonesia, the companies are required to have competitive advantage and mange the relationship with the customer. Smartfren is one of those companies which enter this business field. This company has changed its name from Mobil8 to Smartfren in Smartfren has several target market such as the users of mobile phone, the users of internet data services and both of them. However, according to Smartfren advertisement, this company has more tendencies to gain the target market from internet users. Based on its company annual report, the number of Smartfren customers has been increased overtime. However, the growth in number of competitors has also decreased the market share of Smartfren. According to Ferrel and Hartline (2008:363), the key to customer retention is customer satisfaction. Fully satisfied customers are more likely to become loyal customers, even advocates for the firm and its products. Therefore, satisfied customers are less likely to switch to the competitors. Satisfied customers are also more likely to spread the positive words about the firm and its products. In order to create fully satisfied customers, the company needs to create good marketing mix (product, price, place, and promotion). Marketing mix is a set or combination of the 4 P s in order to reach the marketing objective such as the retention or the customer satisfaction. When a company that enters the communication business with a lot of competitors such as Smartfren is capable to create a good marketing mix, the customers needs and goals in choosing the products would be fulfilled. By doing some observation before the study was conducted, the author found that in Malang, most of Smartfren internet users at Brawijaya University keep using the product even when the product quality is not quite good, such as the internet connection. This phenomenon induces the writers curiosity to observe more about the reason of Smartfren customer retention whether they are fully satisfied or because of the price as mentioned in marketing mix. Based on the explanation above, this study intends to observe more about the customer retention. Customer retention is important to keep the company existence in the existing tight competition in business. To reach the condition of customer retention, the company needs to create fully satisfied customers which are influenced by the marketing mix of the products. There are three problems on this study those are: a. Do marketing mix variables positively influence the satisfaction? b. Does satisfaction influences repurchase intention? c. Do marketing mix variables have indirect influence to repurchase intention through satisfaction? Literature Review a. Marketing Mix Marketing mix is a tool used in marketing for making characteristics goods and services offer to consumer. According to Kotler (2006:19), marketing mix is several tools used

3 constantly by the company to achieve sales target in the right target market. One traditional depiction of marketing activities is in terms of the marketing mix, which has been defined as the set of marketing tools the firm uses to pursue its marketing objectives. McCarthy classified these tools into four groups, which he called the 4 Ps of marketing: Product, Price, Place, and Promotion. 1. Product A product is seen as an item that satisfies the demand of the customer. It is a tangible good or an intangible service. For example, good will for intangible. Tangible products are those that have an independent physical existence. One of the typical examples of mass-produced tangible objects is the motor car and the disposable razor. A less obvious but ubiquitous massproduced service is a computer operating system. 2. Price Price is the amount a customer pays for the product. The price is very important as it determines the company's profit and survival. Adjusting the price has a profound impact on the marketing strategy. The price elasticity of the product will affect the demand and sales as well. The marketer should set a price that complements the other elements of the marketing mix. 3. Place Place in Marketing mix refers to providing the product at a place which is convenient for consumers to access. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix. 4. Promotion Promotion is all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, personal selling, and sales promotion. b. Satisfaction Consumer satisfaction is a consumer behavior concept. It is basically concerns how the consumer feels about a certain product or service after the product or service is consumed. Consumer satisfaction has always been considered as an important business goal because if a consumer is satisfied with a product, service, or brand, they would be more likely to continue purchasing it and tell others about their favorable experience with it. According to Kotler (2006:136), satisfaction is a person s feeling of pleasure or disappointment resulting from comparing a product s perceived performance in relation to his or her expectation. If the performance does not fulfill the expectations, the customer will be dissatisfied. If the performance matches the expectations, the customer will be satisfied. If the performance exceeds the expectations, the customer will be highly satisfied or delights. c. Retention and Repurchase Intention Customer retention is reputed in some research as a customer loyalty and used alternately (Heskett, 1994). Furthermore, some literature states that

4 there is a relation between loyalty and retention, it could be wrong to assume that all the customers who do repeat purchase for a product are loyal customers. According to Schiffman and Kanuk (2007:10), the overall objectives of providing value to customers continuously and more effectively than the competition is to have and to retain highly satisfied customer. This strategy of customer retention makes it in the best interest of customers to stay with the company rather than switch to another firm. Retention is the propensity of customers to stay afloat using a product in the future (Ranaweera and Jaideep, 2003). Customer repurchase is the repetition of buying on the same product or buying the product that is previously bought. Repurchase also refers to the possibility of customer to utilize again the product or services they used before. According to Swasta and Irawan (2001:26), customer repurchase is the purchasing which has been done by the customer of the same product and will purchase that product again in the future. Hypothesis The hypotheses in this study are: 1. Marketing Mix influences satisfaction 1a. Product influences satisfaction 1b. Price influences satisfaction 1c. Place influences satisfaction 1d. Promotion influences satisfaction 2. Marketing Mix influences repurchase intention 2a. Product influences repurchase intention 2b. Price influences repurchase intention 2c. Place influences repurchase intention 2d. Promotion influences repurchase intention 3. Satisfaction has positive influence on customer repurchase intention Research Methodology Type of Research This study is an explanatory research that describes the causal relationships among variables through hypothesis testing. This research is conducted by using survey, a method of research that attempts to explain a social phenomenon by looking at the relationship of research variable. This study uses the quantitative approach namely path analysis, which emphasizes on hypotheses testing and the use of parametric or measured data. The study conducted at Brawijaya University, Lowokwaru, Malang, 65145, East Java. A sample is a subgroup or subset of the population. By studying the sample, the researcher should be able to draw conclusions that are generalizable to the population of interest. (Sekaran and Bougie, 2010). Hair et al. (2009: 22) explains that a sample size have a substantial impact to statistical significance, both in small and large sample size. To determine the number of samples the researcher follows the procedure proposed by Naresh K Maholtra (1993:662), who speculates that the number of sample size should be at least four or five times the number of attributes used in the study.

5 There are six variables in this research, those are product (X1) with four attributes, price (X2) with three attributes, place (X3) with three attributes, promotion (X4) with four attributes, satisfaction (Y) with three attributes, and repurchase intention (Z) with one attribute. With a total of eighteen attributes to the variables in the study, the 100 samples are considered to be sufficient to describe the whole population. The Sampling Techniques The sampling technique of this research is purposive sampling. The sampling here is confined to specific types of people who can provide the desired information, either because they are the only ones who have it, or conform to some criteria set by the researcher. (Sekaran and Bougie, 2010). In this study, the respondent characteristics are: 1. Still using the Smartfren product. 2. Three months of minimum using or subscribing of smartfren product. 3. Minimum age Being a Brawijaya University Student (owning the Student ID card). The sample comprises both economics and engineering faculties. The faculty of economic is chosen because it has the highest number of students among all social faculties. The engineering faculty is chosen because it has the highest number of students among all the science faculties. Research Variables According to Norman and Steiner (2003:158), the independent variable in path analysis is also called exogenous variable. An exogenous variable is a variable that has paths coming from it and none leading to it. The exogenous variable is just affected by the factors outside of the model which also makes it as an independent variable. In this study, there are four exogenous variables, which are: 1. Product Product is everything that can be offered to customer in order to fulfill their needs and wants. The items of this variable are (Irsad. Z., 2010): a. Product variance b. Quality of product c. Branding d. Service quality 2. Price Price is a measurement of monetary or other units including other goods or services to get the rights of owning or rights of using the goods or services. The items of price are: a. Price list b. Discounts c. Special price 3. Place Place is the set of organization or a channel that used as a media of delivering the goods or services from producer to customer. The items of place are: a. Marketing channel (coverage of retailer and distributor) b. Location (ease of reaching the retailer and distributor) c. Stock (availability of products) 4. Promotion Promotion is a communication process of delivering the right information to customer to introduce the goods or

6 services and keep the information in customer s mind. The items of promotion are: a. Advertisements b. Sales personnel c. Public relations d. Direct marketing Endogenous variable is a variable that has at least one path leading to it (Norman and Steiner, 2003). This study uses two endogenous variables, which are customer satisfaction (Y) that also has a role as a mediating variable and repurchase intention (Z). Satisfaction (Y) as a mediating variable, at least has one arrow that go to it and one arrow that go from it. That is defined as how the customer feels after using the smartfren s products. The items of satisfaction are: a. Right decision b. Expectation c. Overall satisfaction Another endogenous variable in this study is repurchase intention of smartfren users (Z). The item of repurchase intention variable is a tendency to continue of using the product. Data Collection Method Based on the type of research explained in the previous section, the data are collected by questionnaire. The author collects the questionnaire data by using the snowball method. The author found one required respondents and then asks them whether they know other people which has the requirements to be the respondents. The secondary data are collected by internet browsing and also interviewing some respondents. Data Analysis Method This study uses path analysis to answer the problem formulated in the study. According to Riduwan and Kuncoro (2008), path analysis is very useful to explain the causal relationship between variables, and is used to confirm or test a proposed model and not to develop a model. There are two types of effect in path analysis. The first effect is the direct effect and the second is indirect effect. When the exogenous variable has an arrow pointed to endogenous variable directly, then it is said as the direct effect. The other condition is when the exogenous variable has an arrow to endogenous variable through the other endogenous variable, then it is said as indirect effect. To see the total effect of the exogenous variable, we have to add the direct and indirect effect. One variable may not have a direct effect, but it may have an indirect effect as well. The relationships among variables in this study are as follows: 1. Product (PR) to Customer Satisfaction (SAT) and Customer Repurchase Intention (RPI). 2. Price (PC) to Customer Satisfaction (SAT) and Customer Repurchase Intention (RPI). 3. Place (PL) to Customer Satisfaction (SAT) and Customer Repurchase Intention (RPI). 4. Promotion (PO) to Customer Satisfaction (SAT) and Customer Repurchase Intention (RPI).

7 5. Product (PR), Price (PC), Place (PL), Promotion (PO) directly to Customer Repurchase Intention (RPI). Path Analysis According to Ulfa (2007) there are several steps to follow in path analysis, they are (1) developing the model based on concept and theory, (2) integration with the base assumptions, (3) discovering the parameter (calculating the path coefficient), (4) validity test of the model and (5) model intrepretation. a. Developing the model based on concept and theory In developing the model, the first step to do is to design or create a hypothetical model based on concepts and theory. In this study, theoritically product (PR), price (PC), place (PL), promotion (PO), and satisfaction (SAT) affect directly or indirectly to repurchase intention (RPI). Based on these theoritical relationship, the next step is to construct it to a path model and conversed into a hypothetical model. b. Integration with the base assumptions Assumptions that are the base of path analysis are as follows: In a path analysis model, the relationship between variables is linier and aditive. Only recursive model one way causal relationship, is used in path analysis, a two way causal analysis can not use path analysis. Endogen variables data are minimal on interval scale. Observed variables are measured without fault (measuring instruments are valid and reliable). Analysed model are specified (identified) correctly based on relevant concepts and theories. c. Discovering the parameters (calculating the path coefficient) Discovering the parameters is usually implemented in calculating path coefficient. The calculation of coefficient in a path diagram is explained as follows: 1) The two-way arrows coefficients are the correlation coefficients (r are calculated as usual) 2) The one way arrows are calculated using regression with standardized data partially on each equations. The method used is OLS, the ordinary least square. This can be used because the model is a recursive model. From this calculation a direct path coefficient can be observed. Beside that, there are still two other way to calculate the path coefficient, by using correlation matrix approach and doing a further calculation of regression coefficient (raw data). That coefficient path is taken from the Standardize Coefficients Beta, and are explained as follows : By changing the observed data to the standardized data, individual units value of the variables is nothing (Z don t have an individual value) and the scale also becomes uniformed ( 4 s/d +4, no matter how much the minimal and maximal value is). There are three methods in calculating path coefficients. The matrix correlation approach (p = Rx-1 Ry), regression coefficient followed by a calculation process {pi = bi (Sxi / Sy)}, and standardized regression coefficient. In this study, the chosen

8 method is the standardized regression coefficient, as this method is considered to be the simplest one. Beside that, the calculation of goodness of fit by coefficient of determination and the trimming theory can be done more practically. The calculation of standardized regression coefficient is done partially on every equation, because the model is a recursive model, the method used is ordinary least square (OLS) method. The coefficient ρi are the direct path coefficient. The indirect path coefficient is calculated by multiplying the coeffcient of the direct coefficient of the equation path. d. Validity test of the model Validity test on path coefficient on every direct path equation is the same as in regression analysis that is by using the p-value in t-value test, which is the partially standardized variables regression test. According to the trimming theory, the non-significant path is eliminated so that there will be a model supported (confirmed) by empirical data. e. Model interpretation The last step in path analysis is interpreting the result of the analysis. First of all by observing the result of the model validity test and then followed by calculating the direct effect coefficient, the indirect effect coefficient and the total effect coefficient of all variables that have a causal relationship with the endogen variable. Hypothesis Test The approach used in testing the variables affecting the endogenous variable is the significance test. Generally, significance test is a procedure to check whether a hypothesis is correct or not. The hypothesis test used in this study, both for the direct effect and indirect effect is using the t-value test. The t-value is referred to the critical ratio value produced from the calculation using SPSS The base for the decision making is the criterion of t-value test of path coefficients: If the t-value > t table then there is a significant effect on that path (H0 are rejected, Ha are accepted), and so is the opposite, or If the value of the Sig. (p-value) < α then there is a significant effect on that particular path (H0 are rejected, Ha are accepted), and so is the opposite. Findings and Discussion Company Profile Smartfren Telecom, Tbk. is a provider of telecommunications services operator based on CDMA technology which has a cellular license and limited mobility (fixed wireless access), and has network coverage of CDMA EV-DO (equivalent mobile broadband network with 3G) which is the largest in Indonesia. Smartfren is not only the first telecom operator in the world that provides CDMA EV- DO Rev. B (equivalent to 3.5 G with download speeds up to 14.7 Mbps) but also the first CDMA operators providing Blackberry services. Smartfren service is valued as a partner that is best for the customer as it offers intelligent solutions in telecommunication services to enhance the customer experience in communicating in life.

9 As a CDMA carrier that provides highspeed mobile Internet network (mobile broadband) which is the largest in Indonesia, Smartfren is committed to become a provider of telecommunication services affordable for the community with the best quality. Respondents Characteristics In this study, the respondents are smartfren users who are still active students of the Faculty of Engineering and The Faculty of Economics and Business Brawijaya University. The respondents have been using the product of Smartfren for at least six months. Respondents are taken based on the criteria of the research sphere, Brawijaya University region. Validity and Reliability Test Validity test is used to see whether each instrument is valid or not in the marketing mix variables, customer satisfaction, and repurchase intention. Critical value of this test is with DF = n-1 significance level of 0.05 (5%). Instrument is valid if the figures obtained correlation coefficient is greater than the value of r critical. Reliability is an index that indicates the extent to which the measuring instrument can be trusted or relied on. To see whether it is reliable or not, is shown by the coefficient of reliability. The coefficient values range from 0 to 1. Increasingly close to 1 indicates more reliable. Path Analysis In this study the analysis used to test the hypotheses proposed between the variable in the hypotheses is the path analysis. This analysis is used to know the level of influence in a causal relationship with the data gathered from the sample surveyed. Discover Theoretical Model The step to develop the theoritical model in this study is done by scientifically exploring the variables and the relationship among them that is already observed in theories and in the result of previous research. This step is done to ensure that the theoritical model developed in this study is justified. Calculation of Path Coefficient The calculation of the path coefficient in this study is done by using the standardized regression analysis by seeing the simultanous and partial influence on each of the equations. The method used is the ordinary least square (OLS) which is the least square method calculated by using SPSS 20.0 software. a. Direct effect of X1, X2, X3 and X4 to Y The result of the standardized regression is presented in Table Variables Beta T Sig t Explanation X Significant X Significant X Significant X Significant Adjusted R Square = Source: Processed Data 2014

10 Some statements can be made based on the data in the table above: 1) Standardized regression equation of X1, X2, X3, X4 to Y: Y = X X X X ) The statement concluded from the t-test value is that the marketing mix variables which are product (X1), price (X2), place (X3), and Promotion (X4) have significant influence on satisfaction (Y) because those variables have sig t < 0.05 or 5%. 3) The value of beta in the table which also used in the equation is showing the value of the impact of marketing mix variables to satisfaction without the impact of factor outside the model. b. The direct effect of X1, X2, X3, X4 and Y to Z The result of the standardized regression is presented in Table Variables Beta T Sig t Explanation X X X X Not significant Not significant Not Significant Not significant Y Significant Adjusted R Square = Source: Data Processed 2014 Some statements can be made based on the data in the table above: 1) Standardized regression equation of X1, X2, X3, X4, Y to Z: Z = X X X X Y ) The statements concluded from the t-test value are as follows: Satisfaction (Y) has significant influence on repurchase intention (Z) because those variables have sig t < 0.05 or 5%. Product (X1), price (X2), place (X3) and promotion (X4) influence the repurchase intention (Z) but not significantly influencing because those variables have sig t > 0.05 or 5%. The value of beta in the table which also used in the equation is showing the value of the impact of marketing mix and satisfaction variables to repurchase intention variable without the impact of factor outside the model. Path Model Validity Based on the models and the explanation in the path coefficient calculation, a Goodness of fit model test is conducted using total determination coefficient. The total varsity of the data that can be explained by the model are measured with the formula below: R2m = 1 P2e1 P2e2.P2ep P2e1 = 1 R21 P2e2 = 1 R22 R21 is the adjusted R square for equation 1 is as much as and R22 is the adjusted R square for equation 2 is as much as Therefore, P2e1 = = P2e2 = = The total determination coefficent, thus are as follows:

11 X 1 X 2 X 3 X 4 R2m = 1 (0.511x 0.524) = or 73.2% The result of the calculation of R2m indicates a varsity of data which can be explained by the model is as much as 73.2%, or in other words, the information concluded in the data 73.2% can be explained by the model. The remaining 26.8% shows the varsity that is explained by other variables that are not included in the model. Model Interpretation The path analysis calculated in SPSS 20.0 results in the model as follows : e1 Y The direct effect of the path coefficient equation is as follows: Direct effect of X1, X2, X3 and X4 to Y : Y = ρyx1 X1 + ρyx2 X2 + ρyx3 X3 + ρyx4 X4 + e1 = X X X X Direct effect of X1, X2, X3, X4 and Y to Z : Z = ρzx1 X1 + ρzx2 X2 + ρzx3 X3 + ρzx4 X4 + ρzy Y + e2 = X X X X Y e2 Z Indirect effects of the path coefficient are as follows: Indirect effects of X1, X2, X3 and X4 through Y to Z: X1 to Z = ρyx1 X1 x ρzy Y = 0,237 x = X2 to Z = ρyx2 X2 x ρzy Y = x = X3 to Z = ρyx3 X3 x ρzy Y = x = X4 to Z = ρyx4 X4 x ρzy Y = x = Hypothesis Test As a whole, the model in this study can be divided into 9 direct effects and 4 indirect effects. The following table presents the result of the hypothesis test for the direct and indirect effects: 1. Marketing mix influences satisfaction a. Product (X1) has positive and significant influence on customer satisfaction (Y) because it has sig t value and the sig t value is < 0.05 or 5%. b. Price (X2) has positive and significant influence on customer satisfaction (Y) because it has sig t value and the sig t value is < 0.05 or 5%. c. Place (X3) has positive and significant influence on customer satisfaction (Y) because it has sig t value and the sig t value is < 0.05 or 5%. d. Promotion (X4) has positive and significant influence on customer satisfaction (Y) because it has sig t value and the sig t value is < 0.05 or 5%. 2. Marketing mix influences repurchase intention

12 a. Product (X1) has positive but not significant influence on repurchase intention (Z) because it has sig t value and the sig t value is > 0.05 or 5%. b. Price (X2) has positive but not significant influence on repurchase intention (Z) because it has sig t value and the sig t value is > 0.05 or 5%. c. Place (X3) has positive but not significant influence on repurchase intention (Z) because it has sig t value and the sig t value is > 0.05 or 5%. d. Promotion (X4) has positive but not significant influence on repurchase intention (Z) because it has sig t value and the sig t value is > 0.05 or 5%. 3. Customer satisfaction (Y) has positive and significant influence on customer repurchase intention (Z) because it has sig t value and the sig t value is < 0.05 or 5%. Discussion Based on the results of the study, the problem of this study can be answered. For the first problem, marketing mix variables (product, price, place, and promotion) have positive and significant influence on satisfaction of Smartfren users at Brawijaya University. Out of those variables, the most dominant variable that is affecting satisfaction is price. In this study, price variable is the combination of several items which are price list, discounts, and special price. The price variable also becomes the most dominant variable affecting the satisfaction. This condition shows that pricing is the main strategy of Smartfren in order to satisfy the customers. Smartfren gives the proper price list so that the customers could choose the compatible price to fulfill their need. The discounts given by Smartfren are also able to give value to customers. The special price also attracted customers. This result is the same as the results from Irsad (2010) which the price variable is the most dominant variable that affects satisfaction. Promotion variable also has positive and significant influence on satisfaction. Promotion variable becomes the second dominant variable that influences satisfaction. This variable has several items which are advertisements, sales personnel, public relations, and direct marketing. The purpose of promotion itself is delivering the information of Smartfren products. This result shows that customers are comfortable and easy in getting the information of products including the purchase and after sales information. Smartfren also has conducted all of the promotion items including presentation and direct selling to customers. Product variable has positive and significant influence on satisfaction. The results show that the products provided by Smartfren have good quality, proper variant, good brand, and service quality that meet the expectation of customers and lead it to satisfaction. The second problem of the study can also be answered. Satisfaction does influence repurchase intention positively and significantly. Satisfaction is the most dominant and significant variable that influences the repurchase intention. Marketing mix variable also has direct positive influence on repurchase intention but the influence is not significant. However, the indirect effect of all marketing mix variables to repurchase intention through satisfaction is positive and significant. The indirect influence also shows that the price variable is the most dominant variable that influences repurchase intention through satisfaction.

13 The path model shows that marketing mix variables are only influencing the repurchase intention if the customer is satisfied. This condition shows that to create fully satisfied customers, Smartfren needs to fulfill the needs and wants of customers by managing the strategy and combination of marketing mix. Satisfaction is the key to customers repurchase and loyal customers. Therefore, it is assumed that satisfaction is the key to maintain the loyal customers to repurchase the product in order to keep the profit in condition of decreased market share. Fully satisfied customers have more willingness to repurchase the products and become loyal customers. Based on calculation, this study also shows that the variables on models are representing generally 50% of the influence. The influence itself could be affected be other variables such as for the first direct influence is the marketing mix variables to customer satisfaction, the satisfaction could be affected by another variable, such as the brand image, positioning and so on. And the second is the influence to repurchase intention which could be affected by other variables such as the trust in brand and switching cost like the results of previous research of Abu Bakar (2010). Conclusion The conclusions of the study are as follows: 1. All the marketing mix variables (product, price, place, and promotion) show positive influences on customer satisfaction. 2. Each marketing mix variable does not show direct influence on the customer s repurchase intention. However, customer satisfaction shows positive influences on the customer s repurchase intention. 3. The marketing mix variables positively influence the customer s repurchase intention if the customer satisfaction is fulfilled. Recommendation 1. Considering that price has the highest contribution value to repurchase intention, it is suggested that the company prioritize the bonus level and price range. 2. Considering that the second do highest contribution to repurchase intention is made by promotion, and based on the respondents replies, it is suggested that the company focuses more on advertisement attractiveness and that the message of the advertisements is easily understood both by the customers and the potential customers. BIBLIOGRAPHY Bakar, Abu Analisis Pengaruh Customer Satisfaction, Switching Cost, dan Trust in Brand terhadap Customer Retention (Studi Kasus: Produk Kartu Seluler Prabayar SimPATI Wilayah Semarang. Minor thesis Unpublished, Marketing Management, Diponegoro University. Arikunto, Suharsimi Prosedur Penelitian Suatu Pendekatan Praktek. Rineka Citra, Jakarta. Dubrin, Andrew Essentials of Management, Eighth Edition. South-Western Cengage Learning, Canada.

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