ABSTRACT
In addition to product differentiation, there is also service differentiation to increase competitiveness on every company. Differentiation is one of the two competitive advantages which can be owned by a company apart from fee advantage (Porter 1994). Service differentiation is a kind of service and quality enhancement which consists of different value in offering service to the customers. Nowadays, one of the services that is mostly used is internet service. The use of internet service is increasing in this digital area. The competition in internet service is becoming tight which is seen by competitors coming in. This condition makes PT. Telkom decreased. This research will discuss service differentiation and service quality towards customer satisfaction on internet service provider of Telkom (IndiHome). The results of the research revealed that the service differentiation perception did not affect the customer satisfaction of IndiHome product. The positive and significant influence are shown by the variable of service quality perception with tangible indicator (real), reliability, responsiveness, assurance, and empathy towards the satisfaction of IndiHome product customers.
