The Effect of Product Innovation on Customer Loyalty (Survey of Samsung Phone Users in Indonesia)

: In the digital era, Samsung is a brand that dominates smartphones. This South Korean brand is the number one Android phone manufacturer recognized for its capabilities globally. Even though Samsung has the highest market share, Samsung's market share has decreased. The low customer loyalty is allegedly the main cause of the decline in Samsung's market share. This paper aims to determine product innovation's effect on customer loyalty for Samsung cellphone customers in Indonesia. The research method in this scientific work is carried out quantitatively. The sampling technique used was nonprobability, with purposive sampling as the sampling technique. Meanwhile, the number of respondents was 100 people who live in Indonesia and are Samsung cell phone customers. While the data analysis technique used is simple linear regression analysis. The results of this study reveal a positive influence of product innovation on customer loyalty for Samsung cellphone customers in Indonesia.


INTRODUCTION
Customer loyalty is an important thing that must be maintained by companies for the sake of sustainability and to improve good relations between companies and customers (Ardimansyah, 2021).The concept of customer loyalty makes customers always loyal to using products with the same brand and reluctant to use competitor products and recommend products to others (Sari, 2022;Soemali & Diah Dharmayanti, S.E., M.Si., 2015).
The application of the concept of customer loyalty in the long term is the goal for strategic market planning and is used as the basis for developing sustainable excellence (Ekawati, 2020).This concept is realized because customer loyalty provides indirect benefits for companies to be able to contribute to introducing products or services that have been felt by these customers (Sari, 2022).
In the digital era, Samsung is a brand that dominates smartphones (Clinten, 2022;Nugraha, 2022).This brand from South Korea is the number one Android cellphone manufacturer that has been recognized for its capabilities globally (Nugraha, 2022).Reflected in the market share scores that have always been the lead in the last five years (Gs.statcounter.com, 2022).Even though Samsung has the highest market share, it continues to decline.In 2017 Samsung's market share was 32.99%, while in 2021, it was only 27.79% or decreased by 5.2%.
Based on the phenomenon and explanation above, this article aims to prove the effect of product innovation on customer loyalty from Samsung cellphone customers in Indonesia so that it is expected to overcome the problem of decreasing Samsung's market share so far.

LITERATURE REVIEW Product Innovation
According to (Kotler & Keller, 2016), product innovation is any goods, services, or ideas considered new by someone, no matter how long their history is.In simple terms, product innovation can be interpreted as a breakthrough related to new products.Meanwhile, according to (Haris, 2021), product innovation is an action taken by a company to implement and create new ideas.
There are 5 product innovation indicators explained by (Septiani & Dismarita, 2022) as a basis for overall experiential marketing analysis.The following are product innovation indicators in this article which include: 1. Relative advantage 2. Compability 3. Complexity 4. Trialability

Product Innovation
Customer loyalty is a customer's commitment to stay in-depth to re-purchase or repatronize selected products or services consistently in the future, even though situational influences and marketing efforts have the potential to cause behaviour changes (Afrida et al., 2020).

RESEARCH METHODS
This research is a verification descriptive quantitative research.This method describes the object of study based on existing and ongoing facts by collecting, compiling and explaining the necessary data for later analysis according to current theory.The method of determining the sample uses non-probability sampling, namely purposive sampling.Samples were taken based on certain predetermined criteria, specifically for Samsung mobile phone customers in Indonesia.The Tabbanic formula determines the number of pieces in an infinite population.Based on the calculation results, the minimum number of samples required is 100 respondents.
The procedure for testing the hypothesis was done using simple regression analysis with SPSS 26.The collected data was evaluated using a 5-point Likert rating scale ranging from strongly disagree to agree and given a score to obtain interval data strongly.This study uses a primary data source in the form of a questionnaire as an instrument or technique in data collection.Questionnaires were distributed online via Google Forms with consideration of ease of access, cost and time efficiency, and subject confidentiality.

FINDINGS AND DISCUSSION Description of Respondent Characteristics
This study tested a total of 100 respondents.Based on the questionnaire, it is known that the number of male respondents is 66.3% while the number of females is 33.8%.Meanwhile, the age of the respondents, aged 10-20 years, was 7.5%; aged 21-30 years, was 57.5%; aged 31-40 years was 25%; old 41-50 years was 10% and over 50 years by 0%.The validity test results showed that the questionnaire was tested with a significance level of 5%.The results of testing the validity of the research instrument show that in all questions (13 items), both X and Y variables can be valid because each item's significance value is less than 0.05 or 5%.The reliability test results show that the reliability level in this study for product innovation is 0.720, and for customer loyalty, it is 0.810.Then the results of this test can be concluded that the questionnaire question items are reliable because of Cronbach's alpha ()  0,700..065c.d   Table 3 shows that the significance value obtained is 0.065 because of the asymp.Sig value.> 0.05 (Alpha) or 0.065 > 0.05, then the standardized residual values are said to be normally distributed.The results of the correlation test and the coefficient of determination can be seen that the correlation value (R) of product innovation to customer loyalty for Samsung cellphone customers in Indonesia is 0.592, which means that the strength of the correlation between product innovation and customer loyalty simultaneously is included in the quite strong category because it is between 0.400 -0.599 as stated by Sugiono (2015: 184).Furthermore, the test results show that the coefficient of determination (R Square) is 0.350, indicating that each dimension of product innovation (X) contributes 35% to the customer loyalty variable.Meanwhile, the remaining 65% is donated by other factors not examined in this study.Based on Table 5, the Fcount value is 52.865, which means it is greater than Ftable, which has a value of 3.94 (52.865 > 3.94), and model 1 has a significance value of 0.000, less than 0.05. it can be concluded that if Fcount > Ftable, then H0 is rejected and Ha is accepted, which means that there is an influence between product innovation and customer loyalty on Samsung cellphone customers in Indonesia.Table 6 shows that in model 1 there is a partial effect between product innovation and customer loyalty.To find out the ttable is done by looking at the t table at the degree of freedom (df) 98 (the total data is 100 minus the number of 2 variables) and α = 5%.Then the results obtained ttable 1.66055, by comparing the value of tcount with ttable and significance.From the results of a simple linear regression analysis, the tcount value is 7.271 > ttable 1.66055 and a significance value of 0.000.From these results it can be said that there is a significant influence between product innovation and customer loyalty on Samsung cellphone customers in Indonesia.

Discussion
Based on the data processing results regarding model 1 in Table 4.4 Correlation Test Results and Determination Coefficient, the correlation value (R) of the relationship between product innovation and customer loyalty is 0.592, which means that the two variables have a fairly strong relationship.Meanwhile, the coefficient of determination shows that the product innovation variable contributes 35% to customer loyalty and 65% contribution from other factors.
Discussion on testing the hypothesis of the effect of product innovation on customer loyalty simultaneously by referring to model 1 in Table 4.5.Model Fit Test Results (F Test), showing a Fcount value of 52.865 from the correlation between product innovation variables on customer loyalty with a significance value of 0.000 where if Fcount compared to Ftable which is 3.94, Fcount has a greater value than Ftable (Fcount > Ftable) which means that product innovation simultaneously influences customer loyalty.Therefore H0 is rejected, and Ha is accepted, which means that there is an influence between product innovation and customer loyalty for Samsung cellphone customers in Indonesia.
Based on model 1 in Table 6 Partial Test Results (T-Test), the product innovation variable partially affects customer loyalty.Table 6 is obtained by comparing the tcount value with ttable (1.66055).The results of the partial t-test show that the tcount for the product innovation variable is 7.271 > 1.66055 and a significance of 0.000 < 0.05, this means that there is an influence between the product innovation variable and customer loyalty, so H0 is rejected, and Ha is accepted.

CONCLUSION
Based on the results of research that has been carried out using an online questionnaire for Samsung cellphone customers in Indonesia to determine the effect of product innovation on customer loyalty, it can be concluded that there is an influence between product innovation and customer loyalty, which means that the higher the company's ability to create product innovation, the customer loyalty will increase.BIBLIOGRAPHY Afrida, R., Yacob, S., & Sari, N. (2020).Membangun loyalitas pelanggan melalui kualitas produk dan citra merek ( studi pada pelanggan Oppo Jambi ).8( 1