The Influence of Product Quality, Sales Promotion, ‘and Price ‘on ‘Purchase Intention: A Case Study of Indihome Users in Palembang After FMC (Fixed Mobile Convergence)

Abstract

The growth of telecommunications in Indonesia has brought significant benefits to the country's population. Indonesia's telecommunications industry ranks among the fastest-growing in Asia. This research aims to examine customer feedback from users of telecommunication services following the fixed mobile convergence transformation implemented by Telkom and Telkomsel. A quantitative approach was used, with a survey of 320 respondents selected through non-probability purposive sampling. These participants are individual users of Telkomsel services from GraPARI in Palembang City. Data analysis was conducted using Structural Equation Model (SEM) with the Partial Least Squares (PLS) technique to assess the model and hypotheses. The findings indicated that product quality, sales promotion, and price were all rated highly. Additionally, these factors significantly influenced buying interest in a positive direction, with a 50.1% impact. This suggests that as product quality improves, buying interest increases; similarly, better sales promotions and more competitive pricing contribute to higher buying interest in Indihome Telkomsel One services.