EFFECT OF BRAND EQUITY ON FIRM PERFORMANCE IN TELKOMSEL USING CUSTOMER-BASED BRAND EQUITY (CBBE) MODEL

• Main Author: Anisa Rozalina, Sandrafi
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/39668
• Institution: Institut Teknologi Bandung

Indonesia can step to the next level of economic growth by going digital. Telecommunication is a good way to reach the next level of economic growth through digital way. As the biggest telecommunication company in Indonesia, Telkomsel can maximize the performance because it is really impacting to Indonesia telecommunication sector and it can impact the economic potential too. This study aimed to find the empirical evidence relationship between brand equity and firm performance. Brand equity is the main factor that can lead the firm to success. Brand equity is an added value from a firm. Customer-Based Brand Equity by Keller is one of the examples of brand equity theory. Positive customer-based brand equity can bring to increased revenue, greater profit, lower cost, and maximization of shareholder value. Keller stated that there are four steps to achieving strong brand equity: brand identity, brand meaning, brand response, and brand relationship. Keller divides these four steps into six brand building blocks: salience, performance, imagery, judgment, feelings, and resonance. Brand identity is how customers easily understand products and services while creating clear connections to products and services sold under brand names. Brand meaning is the relationship between product and customer motivation. The brand response is how customers respond to the marketing activities that the brand creates. The brand relationship is the customer's personal relationship with the brand. All this can be the shape of customer perceptions because brand equity leads to company performance. Customer-Based Brand Equity by Keller approach is used and measured using a questionnaire developed from scaled. The questionnaire is being discussed first using forum group discussion to find out the advantages and disadvantages contained in the questionnaire so that in writing problems, meanings, and values can be understood and applicable for dissemination. Furthermore, problems that occur in Telkomsel customers discovered by Aspect-Based Sentiment Analysis. This study is using SEM SmartPLS as the methodology. Aspect-Based Sentiment Analysis result denoted that poor connection is the main problem of Telkomsel. All components of brand equity that Telkomsel has already well accepted, except brand identity or brand salience, it is in the almost good category. It happens because of the problem of Telkomsel in a poor connection. Brand salience measured needs satisfied and needs satisfied with the telecommunication customer is a connection. It means that Telkomsel has to be focused on brand identity first since it was the worst category in brand equity of Telkomsel. Telkomsel must create an emotional bond with customers. Telkomsel must approve its promise and gather trust because the brand fulfills its promise fully consistent and on time. Telkomsel must find a more unique difference because the brands in the telecommunications market look more like each other. As a result, it has been seen that the component of Customer-Based Brand Equity by Keller positively affects the firm performance of Telkomsel. If Telkomsel can implement the recommendation well, the firm performance will increase positively and brings to a good market share. The bigger the market share Telkomsel can get, the more profit potential that can be captured by Telkomsel