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1 Online Open Access publishing platform for Management Research Copyright by the authors - Licensee IPA- Under Creative Commons license 3.0 Research Article ISSN Customer satisfaction in mobile telephony: An analysis of major telecommunication service providers in Ode Egena Department of Business Management, Benue State Universality, PMB , Makurdi, Benue State odeexpress@gmail.com ABSTRACT The telecommunication industry in has developed to be very competitive, as different Telecom companies jostle for the attention of subscribers. One of the key challenges confronting these Telecommunication companies is how they manage their service quality, which holds a great importance to customer satisfaction. This research is propelled by the need to empirically measure customer satisfaction with service delivery of Mobile Telecommunication Networks in. The data used for this study were obtained using a structured survey questionnaire. The questions were close ended and used a 5 point Likertscale. The questionnaires were administered by hand and through survey monkey online research platform. The sample consists of 532 University Students. The data obtained from the survey were captured, coded and analysed using the Statistical Package for Social Sciences (SPSS), Version 20. The survey was conducted and restricted to subscribers using the four major GSM mobile phone operators. The research was able to determine that a relationship exist between service quality/delivery and customer satisfaction, SERVQUAL reliability dimension and customer satisfaction and between customer satisfaction and switching intention among mobile phone users in. The results make obvious that the respondents would likely stay with their telecom service providers as long as the companies are able to satisfy their changing needs and meet customer requirements beyond expectations. With the increased competition in the n Telecommunications industry and the everincreasing influence of the Telecommunications Commission (NCC), retaining customers is one major strategy that the companies must adopt to remain cost-effective. With the introduction of Mobile Number Portability (MNP) which allows subscribers to port to a better service provider while maintaining the existing mobile number, retaining customers should be a smarter option than attracting new customers since it is less expensive. Keyword: Customer satisfaction, Service quality, Mobile telephony, Telecommunications. 1. Introduction Marketing, as we have come to understand, has its focus on the customers needs and wants, preference, attitudes, lifestyles, etc (Oyeniyi et al, 2008). In this regard, a firm s success and growth is dependent, at least in part, on the extent to which she could integrate her knowledge about the customers needs, wants, preferences, etc with her own intellectual, creative capacity and skills. Consequently, comparative advantage is secured through intelligent identification and satisfaction of customer needs better and sooner than competitors and sustenance of customer satisfaction through better service quality. Having satisfied customers does not only hold the potential of increasing an organization s customer base, but also increases the use of more volatile customer mix and increase the firm s reputation. One 1

2 known path to achieving customer satisfaction is through the quality of customer service. Customer service is the provision of service to customers before, during and after a purchase. Zeithaml and Bitner (2003), defined customer service as a series of activities designed to enhance the level of customers satisfaction that is, the feeling that a product or service has met customer s expectations. It involves a series of comprehensive activities targeted at the satisfaction of customers and customers perception of a service or product. The Telecommunication industry in has developed to be very competitive, as different Telecom companies jostle for the attention of subscribers. One of the key challenges confronting these Telecommunication companies is how they manage their service quality, which holds a great importance to customer satisfaction. Service quality and customer satisfaction are very essential in maintaining customer loyalty. Delivering high quality services is closely linked to profits, cost savings and market share (Zeithaml, 2000, Manusamy et al, 2010). As stated by various authors (Ballantayne et al, 1996 and Berry, 1996), it is easier and much cheaper to keep existing customers than to get new ones. Additionally, satisfied customers express more willingness to reuse or repurchase a product or service than dissatisfied customers. Telecommunication Companies are, therefore, increasingly more customer-centric and are much interested not just on acquiring new customers, but more importantly, delighting and retaining existing customers. This is perhaps because it costs more to attract new customers than to retain existing ones. Again, it is more profitable retaining an old customer who is more likely to repurchase or re-use a company s products/services and recommend them to others. Customer retention is therefore, basically a product of customer loyalty and value which in turn is a function of the level of customer satisfaction or dissatisfaction (Reichheld, 1996). Consequently, due to the relevance of customer satisfaction to an organizations existence, attempts have been made to adopt measures to ascertain customer satisfaction/dissatisfaction. Traditionally, some organizations rely on customer complaints to ascertain customer satisfaction, though many organizations no longer use only customer complaints, rather they adopt rigorous qualitative and quantitative mechanisms to measure customer satisfaction. In this regard, measuring customer satisfaction provides the feedback of how successful an organization is at providing products and/or services to the satisfaction of customers. The quality of customer service varies by products, industry, and customer (Oyeniyi et al, 2008). The multi-dimensional nature of communication and the ease with which telecom services can be duplicated has added a complex dimension to the competitive trend in the industry. This trend fosters a continuous fight for customer s share and also increases the need to build loyal customers through effective customer s service activities. The shift to devoting considerable attention and resources to customer acquisition and retention through customer satisfaction is not different from the Mobile Telecommunication Networks in. Though competition has been rife in the industry, the mobile telecommunication companies are continually improving upon the quality of their service delivery, with the influence of the n Communications Council (NCC). Since survival and growth or financial outcome is driven by customer loyalty which is in turn driven by customer satisfaction and value (Rust and Oliver, 1994), delivering quality service and customer satisfaction have been important goals and pursuit for the expanding mobile telecom networks as well as regulators of the industry. 2

3 This research is propelled by the need to empirically measure customer satisfaction with service delivery of Mobile Telecommunication Networks in. According to a discussion paper on the n Telecommunication Environment, (Ndukwe, 2004), is the fastest growing mobile market in Africa and one of the fastest in the world. The paper noted that the goals set by government have only partly been met especially with respect to the quality of service. Since the full liberalization of the sector in 2000 (Ndukwe, 2004), the industry has witnessed a tremendous increase in subscriber growth rate for all the mobile telecom operators. This growth trend could not be attributed to customer satisfaction; it is fundamentally due to the substantial growth in investment and expansion of network access during the past years. This seems a success story, and there are high hopes that the service quality delivered by the Mobile Telecommunication Networks in meets customer expectations, ideal service or satisfaction. However, since the inception of mobile telephony, there had been many complaints from customers about the service delivery of the Mobile Telecommunication Networks in. From the firm s perspective, it is important to ensure that customers are satisfied with the product they purchase as well as with the way the product is delivered. Customers have specific needs, expectations, and perceptions, but if a company is not able to exceed, delight or at least meet these expectations, the customer becomes dissatisfied and probably does not consider a repurchase. One prerequisite for customer satisfaction is, therefore, that the company knows their customer s needs and expectations. According to Parasuraman et al (1988), the larger the gap between a company s and customer s perceptions concerning both service products and service delivery, the smaller the probability of satisfying the customers. This indicates that telecommunication companies should have more profound understanding of their customer s needs. An investigation of the relationship between service provision of Mobile Telecommunication Networks in and customer satisfaction appears therefore of interest. 2. Review of literature The customer is the most important factor why companies make efforts for service quality improvements. In this section, the researcher will pay attention to concept of customer satisfaction and service quality Customer satisfaction (CS) In today s competitive and dynamic market, the term customer satisfaction (CS) has received much attention and interest among scholars and practitioners. This perhaps can be traced to its importance as a key element of business strategy, and goal for all business activities (Anderson et al, 1994). There are two basic definitional approaches to the study of CS (Parker and Mathew, 2001). The first approach defines CS as an outcome while the second approach views it as a process. It is however important to note that these two approaches are not mutually exclusive but complementary, as one often depends on the other. As a process, CS is defined as an evaluation between what was received and what was expected (Johnson, 2001; Gustafsson, Johnson and Roos, 2005).), emphasizing the perceptual, evaluative and psychological processes that contribute to customer satisfaction (Vavra, 1997). 3

4 The process definitions of satisfaction however, concentrate on the antecedents of satisfaction rather than satisfaction itself (Parker and Mathews, 2001). The outcome approach of the CS is defined as the end-state satisfaction resulting from the experience of consumption. This is a post- consumption state and can be an outcome that occurs without comparing expectations (Oliver, 1996). In addition, Parker and Mathews (2001) expressed that attention has been focused on the nature of satisfaction of the outcome approach which include: emotion, fulfillment and state. Admittedly, flipping through the literature on satisfaction shows that satisfaction itself is a complex concept and difficult to unanimously define and accurately measure. Gerpott, Rams and Schindler (2001) citing Homburgand Bruhn (1998) defines CS as an experience-based assessment made by the customer of how far his own expectations about the individual characteristics or the overall functionality of the services obtained from the provider have been fulfilled. In this instance, satisfaction is higher or lower with respect to the extent to which what was actually provided exceeds or falls short of what was expected (Gerpott, Rams and Schindler, 2001). There are several factors that precede CS. In this regard, Rust and Oliver (1994) and Taylor and Baker (1994) identified several factors that precede customer satisfaction and suggested that these factors strongly influence the extent of customer satisfaction. Some of these antecedents include: Clear Understanding of Customer Needs and Expectations (Basic needs, Excitement needs and Expected needs) and perceived value. Previous research studies have suggested four features, which are key drivers of the customer value of cellular services. These include: network quality, price, customer care, and personal benefits (Booz, Allen and Hamilton, 1995, Danaher and Rust, 1996; Bolton, 1998; Gerpott, 1998) Service Quality (SQ) The service quality concept has gained much attention from scholars and practitioners. According to Stanton 1986 cited by Hessalmaldin 2007 services include recognizable and necessary immovable activities which meet a need and its attachment to goods sale or other services is not of necessity The term quality has many definitions and interpretations, but the general definition as applied to this research is as follows: A measure of the extent to which the service delivery meets the customer s expectations (Hessalmaldin 2007). David Garvin (1987 cited in Hessalmaldin 2007) classified quality as follows: a. Product-Based Quality: in this respect, certain features and specifications of product are taken into account, which are measurable and at the same time representing the higher quality as well. b. Consumer-Based Quality: according to this basis, the consumer is the determinant of the quality of goods and services, based upon his vision, the types of goods and service that satisfies his needs, are in high quality. c. Goods Specification-Based Quality: in this viewpoint, the experts introduce specific features of a product or service and the closer the manufactured product to these features, the higher quality is considered. 4

5 d. Cost-Based Quality: this mainly emphasizes the element of price; on the basis of this viewpoint, the quality of the product would be based on its accepted price and logical cost. Much of the initial work in developing a model to define and assess service quality has been conducted by Parasuraman, Zeithaml and Berry (1990). In conceptualizing the basic service quality model, Parasuraman et al. (1990) identified 10 key determinants of service quality as perceived by the company and the consumer: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding/knowing the customer and tangibility. They noted that discrepancy existed between the firm s and the customer's perceptions of the service quality delivered. In investigating this discrepancies the authors assert that service quality can be assessed by measuring the discrepancies or gaps between what the customer expects and what the customer perceives and receives. The magnitude and direction of this gap, directly affects the service quality as perceived by consumers. Parasuraman, Zeithaml and Berry (1990) noted that consumers would have perceptions of high service quality to the extent that their expectations are lower than the perceived service performance. Based on the review of the literature, Parasuraman, Zeithaml and Berry (1990) developed the SERVQUAL scale. This scale was designed to uncover areas of good of bad service quality and can be used to show service quality trends over time, especially when used with other service quality techniques. The SERVQUAL scale is based on a difference score between customer expectations of service and their perceptions after receiving the service. Initially, Parasuraman, Zeithaml and Berry (1990) focused on the ten determinants of service quality. However, after two stages of scale purification, they reduced the ten determinants to five dimensions of service quality: tangibles, reliability, responsiveness, assurance, and empathy. Parasuraman, Zeithaml and Berry (1990). In the discussion, they assert that the SERVQUAL scale deals with perceived quality and look specifically at service quality, not customer satisfaction. They state that perceived service quality is a global judgment or attitude concerning the superiority of service whereas satisfaction is related to specific transaction. They reported that the scale had a reliability rating of 0.92 and that the five dimensions could be ranked in order of importance: reliability, assurance, tangibles, responsiveness, and empathy.. 3. Objectives of the Study From the identified research problem, the main objective of the study is to analyze customer satisfaction with service delivery of Mobile Telecommunication Networks in. The specific objectives include 1. To measure the overall customer satisfaction with the services delivered by Mobile Telecommunication Networks in 2. To measure customer satisfaction with Reliability of service quality in Mobile Telecommunication Networks in. 3. To examine switching intentions among customers of Mobile Telecommunication Networks in. 5

6 3.1 Research methodology The purpose of this research is to examine customer satisfaction with n Mobile Telecommunications with focus on the four major players in the sector and also to measure the switching intention of mobile network users in. The data used for this study were obtained using a structured survey questionnaire designed to evaluate customer satisfaction and switching intention of mobile phone users in. The questionnaire was designed to reflect customer satisfaction with the service delivery of mobile telecommunication service providers in. The questions were close ended and used a 5 point Likert scale to evaluate the level of customer satisfaction and the switching intention of customers. The questionnaires were administered by hand and through survey monkey online research platform. The sample consists of 532 University Students. The data obtained from the survey were captured, coded and analyzed using the Statistical Package for Social Sciences (SPSS), Version 20. The survey was conducted and restricted to subscribers using the four major GSM mobile phone operators: MTN, GLO, Etisalat and Airtel. 3.2 Analysis and interpretation A Pearson product-moment correlation coefficient was computed to assess the relationship between service delivery and overall customer satisfaction of Mobile Telecommunication Networks in. There was a correlation between the two variables [r = 0.388, n =526, p = 0.000]. Overall, there was a positive correlation between service delivery and overall customer satisfaction of Mobile Telecommunication Networks in. This indicates that if service delivery is good, the overall customer satisfaction will be high and vice versa. The null hypothesis is therefore rejected based on the results. Error! Reference source not found. presents a graphical representation of how customers are satisfied or dissatisfied with the four major telecommunications companies in. Overall, as shown in Figure 1, customers who use MTN are more dissatisfied with the services provided by the network provider. Apparently, within the sample, more subscribers use MTN regularly (75%) but customers were generally dissatisfied with the service delivery of mobile network providers. Similarly, customers of GLO were more satisfied than dissatisfied with the services provided. The question then is: why are subscribers still loyal to service providers despite the poor services received? Several reasons are responsible. Before the rise in telecoms service providers, MTN was the first to launch its services in. Q2 Q3 Table 1: Correlations Q2 Q3 Pearson Correlation ** Sig. (2-tailed).000 N Pearson Correlation.388 ** 1 Sig. (2-tailed).000 N **. Correlation is significant at the 0.01 level (2-tailed). (Source: SPSS Output, 2013) Many subscribers joined the network because it was the only option available. Even though other options are now available, the switching cost deters consumers from shifting to better service providers. With the introduction of Mobile Network Portability (MNP) in April,

7 by the n Communications Commission (NCC), the subscribers can now port to a better service provider and still retain their mobile number. Figure 1: Customer Satisfaction Survey (Source: SPSS Output, 2013) This will not only enhance competition, but will also enhance the service quality of telecom service providers in. One of the objectives was to measure the relationship between reliability service quality dimension and customer satisfaction. A reliability test for the SERVQUAL reliability dimension was performed using Cronbach s Alpha. The reliability analysis showed a value of indicating an acceptable value based on Field s (2006) recommended generally accepted and appropriate value of 0.7. Within the SERVQUAL model, service quality is defined as the gap between customer perceptions of what happened during the service transaction and his expectations of how the service transaction should have been performed (Culiberg and Rojšek, 2010). The reliability dimension of service quality was selected as a measure of service quality with mobile telecommunication service providers in. The dimension consists of five (5) questions which measure the ability of the service providers to perform the promised service dependably and accurately. The selection is based on a survey conducted by Arlen (2008) which identified the reliability dimension as the most important SERVQUAL dimension to customers. For the purpose of convenience, the four other dimensions of service quality (Responsiveness, Assurance, Empathy and Tangibles) are excluded from the analysis. The reliability Service Quality Dimension refers to how the company perform and complete their promised service, quality and accuracy within the given set of requirements between the company and the customer. This hypothesis examined if there is a significant link between reliability of service quality and customer satisfaction. The result is presented in Error! Reference source not found. below: A correlation for the data revealed that reliability SERVQUAL dimension and customer satisfaction were significantly related, R1 (r =.62, N = 526, p <.01, 2-tailed), R2 (r =.56, N = 526, p <.01, 2-tailed), R3 (r =.48, N = 526, p <.01, 2-tailed), R4 (r =.58, N = 526, p <.01, 2-tailed), R5 (r =.35, N = 526, p <.01, 2-tailed). Higher service reliability was associated 7

8 with increased overall customer satisfaction. Based on the analysis above, since the Sig. value for the various variables (Q3, R1, R2, R3, R4 and R5) is.000 which is less than.05, (p <.05), we can say that there is a significant positive correlation between reliability of service quality and customer satisfaction. The null hypothesis (Ho) is therefore rejected. Although, the strength of the relationship differs among different variables, they all reflect a moderate positive correlation. As shown in Error! Reference source not found. below, a high proportion (46%) reflecting 242 of the respondents expressed the desire to switch mobile service providers and 22% were not very sure (116). This illustrates how dissatisfied the subscribers are with the service delivery of mobile telecommunication networks in. Q3 RL1 Table 1: Link between reliability of service quality and customer satisfaction (Correlations) Q3 RL1 RL2 RL3 RL4 RL5 Pearson Correlation **.562 **.482 **.584 **.352 ** Sig. (2-tailed) N Pearson Correlation.616 ** **.465 **.511 **.385 ** Sig. (2-tailed) N Pearson Correlation.562 **.594 ** **.573 **.343 ** RL2 Sig. (2-tailed) N Pearson Correlation.482 **.465 **.373 ** **.329 ** RL3 Sig. (2-tailed) N Pearson Correlation.584 **.511 **.573 **.531 ** ** RL4 Sig. (2-tailed) N Pearson Correlation.352 **.385 **.343 **.329 **.318 ** 1 RL5 Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). (Source: SPSS Output, 2013) Table 2: Switching Intention among mobile phone users (Source: SPSS Output, 2013) Frequency Percent Valid Percent Cumulative Percent No Not sure Valid Yes Total Missing System 2.4 Total

9 Table 3: Association between customer satisfaction and switching intention among customers of Mobile Telecommunication Networks in (Correlations) Q3 Q4 Pearson Correlation ** Q3 Sig. (2-tailed).003 N Pearson Correlation ** 1 Q4 Sig. (2-tailed).003 N **. Correlation is significant at the 0.01 level (2- tailed). (Source: SPSS Output, 2013) A correlation for the data revealed that customer satisfaction and switching intention were significantly related (Error! Reference source not found.), r = -.13, N = 530, p <.01, 2- tailed. The analysis demonstrates a negative relationship between customer satisfaction and switching intention. Higher customer satisfaction was associated with lower switching intention and a lower customer satisfaction correlates with a higher switching intention among the subscribers. 4. Conclusion Upon conducting this research, new findings were discovered. However, the main objectives of this research were also achieved. The research was able to determine the relationship between service quality/delivery and customer satisfaction, SERVQUAL reliability dimension and customer satisfaction and the relationship between customer satisfaction and switching intention among mobile phone users in. Based on the analysis conducted to test the various relationships, all three attributes had a significant relationship with customer satisfaction. Service delivery and reliability dimension of service quality had a positive relationship with customer satisfaction, indicating that an increase in one will lead to an increase in the other. This means that an excellent service delivery along with an increase in how a company perform and complete its promised service, quality and accuracy within the given set of requirements will lead to an increase in customer satisfaction. However, the analysis also indicated a negative correlation between switching intention and customer satisfaction. This signifies that customer dissatisfaction will increase the desire to switch service providers. The results make obvious that the respondents would likely stay with their telecom service providers as long as the companies are able to satisfy their changing needs and meet customer requirements beyond the customers expectations. With the increased competition in the n Telecommunications industry and the everincreasing influence of the Telecommunications Commission (NCC), retaining customers is one major strategy that the companies must adopt to remain profitable. With the introduction of Mobile Number Portability (MNP) which allows subscribers to port to a better service provider while maintaining the existing mobile number, retaining customers should be a smart option than attracting new customers since it is less expensive. 9

10 6. References 1. Anderson, E.W., Fornell, C. and Lehmann, D.R. (1994), Customer Satisfaction, Market Share and Profitability: Findings from Sweden, Journal of Marketing, 58, pp Arlen, C. (2008), The 5 Service Dimensions All Customers Care About. Available: Last accessed 2nd May, Auka, D.O. (2012), Service quality, satisfaction, perceived value and loyalty among customers in commercial banking in Nakuru Municipality, Kenya, African Journal of Marketing Management, 4(5), pp Ballanthyne, D., Christopher, M., and Payne, A., (1996), Improving the Quality of Service Marketing: Services (Re) Design is the Critical Link, Journal of Marketing Management, 11(1), pp Berry, L.L. (1996), Big Ideas in Service Marketing, Journal of Consumer Marketing, Spring, pp Bolton, R.N. (1998), A dynamic model of the duration of the customer s relationship with a continuous service provider: the role of satisfaction, Marketing Science, 17(1), pp Booz Allen, and Hamilton (1995), Mobilfunk. Frankfurt/M.: IMK. 8. Culiberg, B. and Rojšek, I. (2010), Identifying Service Quality Dimensions as Antecedents to Customer Satisfaction in Retail Banking, Economic and Business Review, 12(3), pp Danaher, P. J., and Rust, R. T. (1996), Indirect financial benefits from service quality. Quality Management Journal, 3(2), pp Field, A. (2006), Research Methods II: Reliability Analysis, London: Sage. 11. Gerpott, T. J. (1998)- Wettbewerbsstrategien im Telekommunikationsmarkt (3rd ed.). Stuttgart: Schaffer-Poeschel. 12. Gerpott, T. J., Rams, W. and Schindler, A. (2001), Customer retention, loyalty, and satisfaction in the German mobile cellular telecommunications market, Telecommunications Policy, 25, pp Gerpott, T.J., Rams, W., and Schindler, A., (2001), Customer retention, loyalty, and satisfaction in the German mobile telecommunications market, Telecommunications Policy, 25(4), pp

11 14. Hessalmaldin, M.S., (2008), Customer Satisfaction in Four Star Isfahan Hotels: An Application of SERVQUAL Model, Lulea University of Technology, LTU-PB- EX=08/ Manusamy, J., Chellia, S. and Mun, H.W. (2010), Service Quality Delivery and Its Impact on Customer Satisfaction in the Banking Sector in Malaysia, International Journal of innovation, Management and Technology, 1(4), pp Ndukwe Ernest C.A., (2004), An Overview of the n Telecommunications Environment, n Communications Commission, ITU Telecom Africa. 17. Okonta, C. U. (2009), Gains and Pains in the Telecoms Sector. The Nation, Monday, September 28, p Oliver, R.L. (1996), Satisfaction: A Behavioural Perspective on the Consumer, McGraw-Hill, New York, NY. 19. Oyeniyi, Omotayo and Abiodun Abolaji Joachim, (2008), Customer service in the retention of mobile phone users in African Journal of Business Management, 2 (2), pp Parasuraman, A. et al., (1988), SERVQUAL: a multiple item scale for measuring customer perceptions of service quality, Journal of Retailing, 64, pp Parasuraman, A., Zeithaml, V., and Berry, L.L. (1990), Delivering Quality Service, The Free Press, New York, NY. 22. Parker, C. and Mathews, B.P., (2001), Customer Satisfaction: contrasting academic and consumers expectations Marketing Intelligence and Planning, 19(1), pp Reichheld, F., (1996), The Loyalty Effect, Harvard Business School Press, Boston. 24. Rust, R.T and Oliver, R.L., (1994), Service Quality: Insights and Management Implications from the frontier, in Rust, R. and Oliver, R, R. (eds), Service Quality: New Directions in Theory and Practice, Sage Publications, Thousand Oaks, CA, pp Taylor, S.A. and Baker, T.L. (1994), An assessment of the relationship between service quality and customer satisfaction in the formation of consumers' purchase intentions, Journal of Marketing, 58, summer, pp Vavra, T.G. (1997), Improving Your Measurement of Customer Satisfaction: A Guide to Creating, Conducting, Analyzing, and Reporting Customer Satisfaction Measurement Programs, ASQ Quality Press. 27. Zeithaml, V. A., (2000), Service Quality and Economic Worth of Customers: What we know and what we need to learn, Journal of the Academy of Marketing Science, 28(1), pp

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