Building Brand Loyalty in Home Appliances Competitive Market by Optimizing Existing Service Centers: Case Study of Terang Brand in Indonesia

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Building Brand Loyalty in Home Appliances Competitive Market by Optimizing Existing Service Centers: Case Study of Terang Brand in Indonesia

ABSTRACT : In today’s competitive home appliance industry, established enterprises such as Terang face substantial pressures from Chinese manufacturers, resulting in customer segmentation into price-conscious and value-conscious categories. This study investigates how Terang may use its service centers to increase customer loyalty by addressing consumer behavior and preferences. The study’s goal is to identify key psychographic traits and preferences of consumers who value quality and after-sales service, develop effective market segmentation and tailored marketing strategies, and analyze competitors to better understand consumer preferences and innovate after-sales service strategies. Using primary data from in-depth interviews with Terang customers and internal management, the study finds that value-conscious consumers prioritize quality and after-sales service, which have a substantial impact on their brand loyalty. Terang can set itself apart from competitors who compete solely on price by focusing on these value-conscious customers. The findings help Terang navigate the competitive market, target the right consumer segments, and use its service centers to generate customer loyalty, assuring long-term business sustainability and growth. This study can help firms improve customer engagement and loyalty through strategic service management in a highly competitive industry.

KEYWORDS – After-Sales Service, Consumer Loyalty, Experience Centre, Home Appliances, Value-Conscious Consumer

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