International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
ARTIFICIAL INTELLIGENCE AND CUSTOMER EXPERIENCE:
RELATIONSHIP TO NETFLIX CUSTOMER LOYALTY THROUGH
CUSTOMER SATIFACTION
Nicholas Ariesta Ferdynand1.
Galuh Mira Saktiana2* Faculty of Economics and Business.
Universitas Tarumanagara.
Jakarta.
Indonesia Email: nicholas.
115210091@stu.
id, galuhs@fe.
*Corresponding Author Submitted: 17-01-2025.
Revised: 27-02-2025.
Accepted: 08-04-2025
ABSTRACT
The development of technology is growing faster and more sophisticated.
Competition among online streaming service providers in Indonesia is fierce.
Netflix and similar companies are seeking methods to attract and retain loyal customers.
This research seeks to uncover the relationships among several Netflix metrics, including artificial intelligence, customer experience, customer loyalty, and customer satisfaction.
For this study, a crosectional descriptive quantitative method was applied.
The analysis of the data was performed using Structural Equation Modeling-Partial Least Square (SEM-PLS) with the assistance of SmartPLS 4 software.
A questionnaire is employed in this study's non-probability sampling with purposive sampling strategy, which collects data from up to 200 valid respondents.
The study's findings reveal that Artificial Intelligence does not impact on Customer Loyalty.
Conversely, both Customer Experience and Customer Satisfaction exert a positive and significant influence on Customer Loyalty.
Additionally.
Artificial Intelligence and Customer Experience positively and significantly affect Customer Satisfaction.
Moreover.
Customer Satisfaction mediates the indirect effects of Artificial Intelligence and Customer Experience on Customer Loyalty.
Keywords: Artificial Intelligence.
Customer Experience.
Customer Loyalty.
Customer Satisfaction INTRODUCTION As time goes by, the development of technology is growing faster and more sophisticated.
People, especially generation Z, are now starting to turn to streaming applications because they offer easy access and diversity of content.
(Anjani et al.
, 2.
This has made competition for online streaming service providers in Indonesia fierce.
Companies in this field are looking for ways to gain and maintain loyal customers.
One such company is Netflix.
Netflix has the most diverse content collection and the highest quality original content.
However, in 2022.
Netflix lost 200,000 paid subscribers who moved to Disney Hotstar.
Reporting from Kompas.
, this decline is the first decline in subscribers that Netflix has experienced in the last 10 years.
This is because Disney Hotstar adopted artificial intelligence technology first while at that time Netflix considered that artificial intelligence technology could have a negative impact on its business operations.
According to Databoks .
, the number one online streaming app in Indonesia is Disney Hotstar.
In the report above, it is revealed that in 2023.
Disney Hotstar will be the most indemand application in Indonesia, beating Netflix.
This happens because Disney Hotstar understands that customer loyalty is the key to winning the competition between companies.
(Arifin & Tjokrosaputro, 2.
Rio .
argue that customer loyalty is the constancy and embedded commitment by customers in terms of repurchasing or subscribing to products in the future despite changes in https://doi.
org/10.
24912/ijaeb.
International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
situations and marketing methods that can result in switching consumers to other applications.
Prentice et al.
and Dini et al .
, found that artificial intelligence has an influence on customer loyalty.
However, according to Muhammad & Hussein .
revealed that artificial intelligence has no influence on customer loyalty.
Next, based on Nikmah .
Sudiyono et al.
, .
and Zare & Mahmoudi .
, state that customer experience drives customer loyalty.
However, according to Lyna & Prasetyo .
, argue that customer experience has a negative and insignificant role in fostering customer loyalty.
Arifin & Tjokrosaputro .
along with Nur & Innocentius .
have found that customer satisfaction significantly enhances customer loyalty.
However, according to Setyawan & Nabhan .
, revealed that customer satisfaction has no authority on customer loyalty.
Aguiar et al.
and Alghaniy .
found that artificial intelligence positively affects customer satisfaction.
Meanwhile.
Claudia & Yanti .
Keni & Sandra .
, and Sauw & Mointi .
concluded that customer experience enhances customer satisfaction.
Contrarily.
Yuliamir et al.
discovered no significant impact of customer experience on customer satisfaction.
Additionally.
Singh & Singh's .
research revealed that consumer loyalty and artificial intelligence may be mediated via customer happiness.
In the meantime, customer satisfaction as a mediating variable has a link that influences customer experience on customer loyalty, according to Fatimah et al.
Due to the inconsistent research results, the purpose of this study is to reveal the results between the impacts of artificial intelligence, customer experience, customer loyalty with customer satisfaction as a mediating variable.
Literature Review and Hypothesis This research incorporates the Technology Acceptance Model (TAM) theory, which is an adaptation from Fred Davis's Theory of Reasoned Action (TRA) introduced in 1986.
Fahlevi et al.
highlight that TAM was crafted to examine and comprehend the factors driving the adoption of technological applications (Jogianto, 2009: .
Research concerning artificial intelligence often implements the Technology Acceptance Model theory in order to interpret how the factors of technology use influence the success drivers of a marketing technique.
As such, this research utilizes an overview of the "Technology Acceptance Model" theory.
The link between artificial intelligence and customer loyalty Dini & Andarini .
, argue that artificial intelligence personalization technology significantly affects consumer loyalty.
This is backed up by research results from Cai et al.
which conveys that increasing the integration of artificial intelligence results in an overall increase in customer loyalty.
Other research also reveals that highlighting the application of artificial intelligence contributes to the ease and efficiency of customer service which affects customers' positive perceptions of the brand and increases their loyalty.
(Maulida & Adi, 2.
According to Prentice et al.
and Dini et al .
, revealed that artificial intelligence boosts customer loyalty in a positive way.
H1: Artificial intelligence has an influence on customer loyalty https://doi.
org/10.
24912/ijaeb.
International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
The link between customer experience and customer loyalty Research from Claudia & Yanti .
argues the positive effect of customer experience is key in fostering customer loyalty.
This can be seen based on findings from the research conducted by Keni & Sandra .
which states that a good customer experience felt by customers of a product or company will increase customer loyalty.
According to Nikmah .
Sudiyono et .
, and Zare & Mahmoudi .
, customer experience significantly influences customer loyalty.
Enhancing customer loyalty can be achieved by improving customer experience, as a higher evaluation of customer experience correlates with a higher level of customer loyalty.
Both variables exhibit a positive relationship (Listyorini & Susanta, 2.
H2: Customer experience has an influence on customer loyalty The link between customer satisfaction and customer loyalty Research conducted by Suhendi & Jalari .
, revealed that customer satisfaction drives customer loyalty.
Other analysis also shows that customer satisfaction plays an important role because consumers will have loyalty to a product or institution if customer satisfaction is met and even exceeds customer expectations so that it can steal customer attention (Yusup & Mulyandi, 2.
In obtaining high customer loyalty, it must be preceded by high customer (Wijaya & Tjokrosaputro, 2.
According to Arifin & Tjokrosaputro .
and Nur & Innocentius .
stated that customer satisfaction exerts a positive impact on customer H3: Customer satisfaction has an influence on customer loyalty The link between artificial intelligence and customer satisfaction According to Robby .
, reveals that artificial intelligence has an influence on customer The ability of artificial intelligence technology plays a pivotal role in creating customer satisfaction The application of artificial intelligence brings various benefits to improving experience and customer satisfaction in a more efficient, relevant and innovative (Nugraha et al.
, 2.
According to Aguiar et al, .
and Alghaniy .
revealed that artificial intelligence undoubtedly has a beneficial impact on enhancing customer H4: Artificial intelligence has an influence on customer satisfaction The link between customer experience and customer satisfaction When customers have a favorable experience, customers generally experience an upward trend in their contentment level with the products or services they receive.
Liputri & Gosal .
assert that customer happiness is influenced by the customer experience.
According to Faizi & Febrilia .
, customer happiness flourishes with a top-notch user experience.
According to research by Nikmah .
, a positive customer experience can also lead to customer satisfaction, showing the connection of customer experience and customer satisfaction.
H5: Customer experience has an influence on customer satisfaction Customer satisfaction mediates between artificial intelligence and customer loyalty According to Smith & Cooper .
, argue that customer satisfaction can serve as a mediator within the dynamic between artificial intelligence and customer loyalty.
This can be proven from research conducted by Lee & Kim .
which states that customer satisfaction acts as a bridge that connects the ability of artificial intelligence to improve customer experience with the resulting increase in customer loyalty.
Research conducted by Singh & Singh .
also revealed that Artificial intelligence technology influences customer loyalty, with customer satisfaction serving as a crucial intermediary.
https://doi.
org/10.
24912/ijaeb.
International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
H6: Customer satisfaction mediates the relationship between artificial intelligence and customer loyalty.
Customer satisfaction mediates between customer experience and customer loyalty According to Listyorini & Susanta .
, revealed indicating the presence of Customer experience impacts customer loyalty via the pathway of customer satisfaction.
This is moreover supported by research conducted by Gaby & Ning .
, argue that consumers who have a good and impressive customer experience regarding products that meet consumer expectations, friendly service, easy ordering methods, convenient places, and even attractive promos so that consumers feel satisfaction.
According to Fatimah et al.
, .
, revealed that customer satisfaction as a mediating variable has a relationship that affects customer experience on customer loyalty.
H7: Customer satisfaction mediates the relationship between customer experience and customer loyalty.
In accordance with the description of the hypothesis above, the research framework model is as follows:
Figure 1: Research Framework Model
RESEARCH METHODS
The research design of this study is descriptive quantitative through cross-sectional data collection techniques, using non-probability side by side purposive method of 216 Netflix This study uses a sample size that refers to Rian .
which reveals that the sample size can be decided by scaling up the number of indicators by 10.
Within the scope of this research, there are 20 indicators, thus necessitating a sample size of 200 respondents.
This study found data obtained through a questionnaire distributed online via google form with a 5-point Likert scale.
This research uses SmartPLS 4.
0 software for data analysis.
The following variable measurements are presented in the table below.
Table 1.
Statement of Each Variable Variables Artificial intelligence (Chen et al.
, 2022 and Sardesai et , 2.
Customer Experience (Fauziah et al.
, 2.
https://doi.
org/10.
24912/ijaeb.
Indicator Artificial intelligence makes it easy to select content quickly Artificial intelligence technology is very easy to operate Artificial intelligence technology really understands what I Artificial intelligence technology recommends special or recent content for me Artificial intelligence technology gives me easy access to my favorite shows The service provided was a new experience for me I feel comfortable so that I can leave a good impression Service is always improving day by day International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
Has clean and clear visual content Overall, very responsive and prompt in dealing with my I will recommend to other consumers I feel satisfied every time I use the app.
Will be my first online streaming app I use the app frequently I am very happy to recommend to my friends I will choose to watch to fulfill my needs I am satisfied with the content provided Overall.
I am satisfied with the content and services provided.
I had a good experience Using the app is very easy Customer Loyalty (Firmansyah, 2.
Customer Satisfaction (Nur & Innocentius, 2.
RESULTS AND DISCUSSIONS
Based on the collected data, males aged 18 to 24 with the highest level of education.
SMA/SMK, represent the largest group of research participants.
Additionally, the majority of responders are college or high school students with monthly incomes under IDR 3,000,000.
Heterotrait-Monotrait Ratio (HTMT).
Fornell-Lacker, and cross loading are examples of discriminant validity, while Average Variance Extracted (AVE) and loading factor are examples of convergent validity.
Cronbach's alpha and composite reliability are also included in the reliability test.
Table 2.
Loading Factor Analysis Artificial Intelligence AI1
AI2
AI3
AI4
AI5
Customer Experience CE1
CE2
CE3
CE4
CE5
Customer Loyalty CL1
CL2
CL3
CL4
CL5
Customer Satisfaction CS1
CS2
CS3
CS4
CS5
Table 3.
Average Variance Extracted (AVE) Analysis Variables Artificial Intelligence Customer Experience Customer Loyalty Customer Satisfaction Average Variance Extracted (AVE) If the square root of each construct's AVE exceeds the correlation values with other constructs in the model, the Fornell-Larcker criteria are met, and deemed acceptable.
This indicates good discriminant validity among the constructs.
Table 4.
Fornell-Lacker Analysis Variables Artificial Intelligence Customer Experience Customer Loyalty Customer Satisfaction Artificial Intelligence Customer Experience Customer Loyalty Customer Satisfaction 0,775 0,768 0,781 0,654 0,716 0,766 0,688 0,737 0,750 https://doi.
org/10.
24912/ijaeb.
0,772
International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
Table 4 clearly shows that each construct's AVE value surpasses those of any other constructs in the model.
Therefore, we can conclude that the discriminant validity of this study is Table 5.
Cross Loading Analysis Variables AI1
AI2
AI3
AI4
AI5
CE1
CE2
CE3
CE4
CE5
CL1
CL2
CL3
CL4
CL5
CS1
CS2
CS3
CS4
CS5
Artificial Intelligence Customer Experience Customer Loyalty Customer Satisfaction Additionally, an indicator's correlation with the same variable must be higher than its correlation with other variables, and the cross loading analysis result must be greater than 0.
in order for the analysis to be considered discriminant (Hair et al.
, 2.
Table 6.
Hetorait-Monotrait Ratio Analysis Variables Artificial Intelligence Customer Experience Customer Loyalty Customer Satisfaction Artificial Intelligence Customer Experience Customer Loyalty Customer Satisfaction In addition, the Heteroit-Monotrait Ratio (HTMT) analysis must be smaller than 1.
0 for the data to be considered valid (Hair et al.
, 2.
Table 7.
Analysis Results Discriminant Validity Variables Artificial Intelligence (X.
Customer Experience (X.
Customer Loyalty (Y) Customer Satisfaction (Z) Cronbach's Alpha Composite Reliability Referring to Table 7, the Cronbach's alpha values all exceed 0.
6, and the composite reliability values surpass 0.
These findings confirm that every variable in this study is both reliable and https://doi.
org/10.
24912/ijaeb.
International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
valid, meeting the necessary composite reliability criteria.
Consequently, this study validates all examined variables.
The outcome of hypothesis testing can be assessed by examining the t-statistic and the p-value's significance level.
A path coefficient is considered positive if its value exceeds 0 and negative The significance test can also be performed by examining the p-value and the tvalue.
If the p-value is below 0.
05, it signifies an effect between independent and dependent On the other hand, if the p-value exceeds 0.
05, the relationship is deemed A mediating effect is present when the path coefficientAos p-value falls under 0.
Table 8.
Hypothesis Test Analysis Variables Artificial Intelligence -> Customer Loyalty Customer Experience -> Customer Loyalty Customer Satisfaction -> Customer Loyalty Artificial Intelligence -> Customer Satisfaction Customer Experience -> Customer Satisfaction Artificial Intelligence -> Customer Satisfaction -> Customer Loyalty Customer Experience -> Customer Satisfaction -> Customer Loyalty Original sample (O) Sample mean (M) Standard
(STDEV)
T statistics (|O/STDEV|) Referring to Table 8, it can be seen that the first hypothesis in this study is rejected.
Artificial intelligence variables contained in this study can affect customer loyalty variables positively but not significantly.
This can be proven by the original sample of 0.
117 (>0.
and a p-value 182 (<0.
This is reinforced by research Muhammad & Hussein .
which reveals that artificial intelligence has no effect on customer loyalty.
This condition shows that the use of artificial intelligence technology is still in its early stages and has not been fully optimized to increase customer loyalty.
Furthermore, the second hypothesis in this study is accepted.
The customer experience variable in this study has a powerful and beneficial influence on customer It is apparent that the initial sample outcome is 0.
290 (>0.
and the p-value is 0.
(<0.
This finding strengthens the results of Nikmah's research .
Sudiyono et al.
and Zare & Mahmoudi .
which state that customer experience is a very important key in building customer loyalty.
A good customer experience often results from high quality service which creates satisfaction and loyalty.
In addition, the third hypothesis in this study is accepted.
The customer satisfaction variable in this study positively and significantly influences customer loyalty.
Referring to the original sample result of 0.
456 (>0.
and the p-value is 0.
000 (<0.
These results align with the findings of Arifin & Tjokrosaputro .
, who found a positive connection between customer satisfaction and loyalty.
Similarly, research by Nur & Innocentius .
supports that customer satisfaction significantly boosts customer loyalty.
A high degree of satisfaction can increase customer loyalty by lowering the rate of unsubscriptions.
https://doi.
org/10.
24912/ijaeb.
International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
Furthermore, the fourth hypothesis in this study is accepted.
The artificial intelligence variables examined in this study show a favorable and noteworthy impact on customer loyalty.
It can be seen that the original sample result is 0.
299 (>0.
and the p-value is 0.
002 (<0.
This study is bolstered by findings from Aguiar et al.
and Alghaniy .
, which demonstrate that artificial intelligence significantly enhances customer loyalty.
The use of artificial intelligence can help personalize the customer experience so that customers can get recommendations that suit their individual needs and preferences which at the same time increase customer satisfaction.
In addition, the fifth hypothesis in this study is accepted.
The customer experience variable in this study exerts a positive and significant impact on customer loyalty.
It can be seen that the original sample result is 0.
508 (>0.
and the p-value is 0.
000 (<0.
This study supports the research results of Claudia & Yanti .
Keni & Sandra .
and Sauw & Mointi .
which reveals that the customer experience significantly enhances customer In meeting or exceeding customer expectations, products and services hold the key to creating a positive experience which in turn increases satisfaction.
Furthermore, the tstatistic and p-value reveal customer satisfaction serves as a complete mediator in how artificial intelligence influences customer loyalty, with a t-statistic of 2.
670 (>1.
and a p-value of 008 (<0.
This result is reinforced by research conducted by Singh & Singh .
which explains that customer satisfaction is an important key in connecting artificial intelligence with customer loyalty.
Using artificial intelligence can enhance customer satisfaction, eventually resulting in stronger customer loyalty.
The study further asserts that customer satisfaction serves as the linking factor between customer experience and customer loyalty.
The mediation variable yielded a t-statistic of 3.
(>1.
and a p-value of 0.
000 (<0.
Due to the significant outcomes from both direct and indirect influences, customer satisfaction serves as a partial mediator in this scenario.
This finding supports Fatimah et al.
, who unveiled that customer satisfaction serves as a crucial intermediary linking customer loyalty and customer experience.
Furthermore, customer satisfaction not only boosts loyalty but also enhances the overall customer experience.
CONCLUSIONS AND SUGGESTIONS
From the above discussion, it is concluded that customer experience significantly enhances customer loyalty among Netflix consumers, while artificial intelligence does not impact this Moreover, customer satisfaction greatly influences customer loyalty, and artificial intelligence positively affects user satisfaction.
Additionally, customer experience significantly boosts Netflix subscribers' satisfaction.
Customer satisfaction can positively and significantly impact both the artificial intelligence experience and loyalty among Netflix users, contributing to an improved customer experience and increased loyalty.
Therefore.
Netflix needs to maintain customer loyalty by adopting the latest technology such as artificial intelligence which can improve customer experience while increasing customer In addition, this study has some limitations such as this survey has a limited sample size of 200 respondents, which is not enough to represent the broad community of Netflix Rejection of the first hypothesis that examines the interplay between artificial intelligence and customer loyalty.
This may be due to the use of artificial intelligence technology which is still in its early stages and has not been fully optimized to increase customer loyalty.
Therefore, this study suggests that future researchers investigate this research model with respondents who have used Netflix for more than 1 year.
https://doi.
org/10.
24912/ijaeb.
International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
REFERENCES