CUSTOMER SEGMENTATION AND PREFERENCE OF INDONESIAN MOBILE TELECOMMUNICATION INDUSTRY: A DATA MINING APPROACH

• Main Author: Adi Nugraha, Alvin
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/54985
• Institution: Institut Teknologi Bandung

The number of mobile internet users in Indonesia is overgrowing over the past years because of the emerging mobile telecommunication technologies. However, nowadays, the growth is declining year by year. The competition in the mobile telecommunication industry is tight. It makes each company struggles to increase their revenue and net expense. The continually increasing number of mobile internet users does not necessarily mean positive growth for the five major mobile telecommunication companies in Indonesia. It makes the companies focusing their investment more on improving data volumes per customers. Therefore, improving repurchase intention is a main key for the companies. It could be done by improving customer satisfaction through determining the right market segments and main customer preferences. Understanding customer segmentation and preferences are vital to increasing customers’ repurchase intention (i.e. data consumption per user) and customer satisfaction. In response, we present novel insights on mobile internet users’ segmentation and preference. The online questionnaire data from more than 500 respondents is used, and applying k-modes clustering and logistic regression analysis to establish the customer segmentation and preference models are done in this research. Based on the clustering method result, it can be seen that the industry has two main market segments. The profile of the first segment can be described as a person with late adolescence who is a student with expense below Rp 3 million and pay mobile company credit and internet costs between Rp 50 thousand – 100 thousand. The majority of activities are playing social media/chatting and not using the Dual-SIM feature. Meanwhile, the profile of the second segment can be described as a person with late adolescence to early adulthood who is an employee with an expense of more than Rp 5 million and pay mobile company credit and internet costs above Rp 100 thousand. The majority of activities are playing social media/chatting and video calls/free calls, and using the Dual-SIM feature. Based on the predictive analytics method, the main customer preferences toward each company are found. The customers choose Telkomsel and XL Axiata because they have more preferences for internet speed, network coverage, signal strength, call minute bonus size, SMS bonus size, other exclusive offers, customer care quality, and service center availability. Meanwhile, the customers choose Indosat, Tri, and Smartfren because they have more preferences for affordable package price and larger internet quota size. Then, the data mining results in this research will be used by the companies as the considerations for decision makers to make actions to improve their customer satisfaction. It can used to make business strategies, marketing strategies, or even product development strategies.