Universiti Teknoiogi MARA. Measuring Web Quality Metrics of Telecommunication Service Providers in Malaysia

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1 Universiti Teknoiogi MARA Measuring Web Quality Metrics of Telecommunication Service Providers in Malaysia Nazihah Binti Zainal Abidin Thesis submitted in fulfillment of the requirements for Bachelor of Science (Hons) Business Computing Faculty of Information Technology And Quantitative Science May 2007

2 SUPERVISOR APPROVAL MEASURING WEB QUALITY METRICS OF TELECOMMUNICATION SERVICE PROVIDERS IN MALAYSIA BY: NAZIHAH BINTI ZAINAL ABIDIN This thesis was prepared under the supervision of supervisor, Puan Fauziah Binti Ahmad. It was submitted to the Faculty of Information Technology and Quantitative Science (FTMSK) and accepted as partial fulfillment of the requirement for the degree of Bachelor of Science (Honest) Business Computing. Approved by: (Puan Fauziah Binti Ahmad) Date:..^.9.:..?..'..^.?."?

3 DECLARATION I certify that this thesis and the research to which it refers are the product of my own work and that any ideas or quotation from the work of other people, published or otherwise are fully acknowledged in accordance with the standard referring practices of the discipline MAY 31, 2007 ^ LI NAZIHAH BINTI ZAINAL ABIDIN

4 ACKNOWLEDGEMENT Alhamdullillah, praise to Allah Almighty, for the blessing, this research project has successfully completed throughout the last 4 months. This project is a result of determination, continuous and persistent effort and time which involved many important people who I would like to acknowledge. First and foremost, I would like to express my gratitude to Allah S.W.T., for give me strength and opportunity to finish this research project. Without His consent, I would never complete this research. Secondly, it is with great honor to have the opportunity to express my highest gratitude towards to my supervisor, Puan Fauziah Binti Ahmad for his guidance, ideas, patience, and never-ending support. All the hours spent in lessons were highly remembered as experiences to guide more for my future. His advices and criticisms are very much appreciated, as it has helped me a lot in doing this research in a proper way. Not to forget to my thesis coordinator, Puan Rogayah Abdul Majid for the lessons in class that has given me a better understanding in conducting this research project. With no exception, I would like to share my joy of completion this research with my dearest parents, other family members and friends for their encouragements, sacrifices, and supports both financially and morally. Without their patience and prayers, I may not have the chance to strive for the best. Thank you for all the supports and may Allah bless all of you. Last but not least, a lot of thanks also to my fellow friends who are involved directly or indirectly in this project who shared and discuss expertise and experiences with me. Most of their opinions and suggestions are valuable to me in order to enhance my project quality. Lastly, thanks to all the people who have directly and indirectly contributed to this project. IV

5 ABSTRACT This study investigates measuring web quality metrics of telecommunication service providers in Malaysia. This study seeks to identify web metrics tools to measure quality of telecommunication service providers' websites Besides, this research is also performed to identify level of telecommunication service providers companies' websites quality both for Malaysian companies and its counterparts. It also tries to compare between telecommunication service providers' websites quality in Malaysia with others in East Asian countries. Finally, the study also aims identify the differences in Malaysian and East Asian telecommunication service provider company's website elements. To achieve these objectives, observation has been done on selected telecommunication service providers in Malaysia and East Asian country to obtain relevant data. The questions focused on the elements of web quality metrics that have been defined, includes multimedia capability, search facility, responsiveness, security, usability, information accuracy, information relevance, empathy, trust and playfulness. The data gathered was analyzed and presented using the One-sample t-test and Descriptive statistics methods. It was found that Malaysian telecommunication service provider has good quality websites. It is also found that most Malaysian telecommunication service providers industry does implement e-commerce elements in their website. Secondly, the findings also showed that, all of the elements on website of telecommunication service provider of Malaysia and East Asian country are emphasized on the similar elements. In conclusion, this study also reveals that the level of website quality of telecommunication service providers in Malaysia and East Asian is likely similar in terms of services and features offered by both.

6 TABLE CONTENTS CONTENT PAGE APPROVAL DECLARATION ACKNOWLEDGEMENT ABSTRACT LIST OF TABLES LIST OF FIGURES iv v ix x CHAPTER ONE: INTRODUCTION 1.0 Introduction Research Background Problem Statement Research Questions Objectives of the Research Scope of the Research Research Approach and Methodology Significances of the Research Limitations of the Research Conclusion 6 CHAPTER TWO: LITERATURE REVIEW 2.0 Introduction Terminology Quality Metrics Measurement Electronic Commerce 8 VI

7 2.2 Past Research Dimension Technology Acceptance Model (JAM) IS Success Model and SERVQUAL Conclusion 16 CHAPTER THREE: RESEARCH APPROACH AND METHODOLOGY 3.0 Introduction Research Model Hypotheses Research Approach and Methodology Primary Data - Web Observation [a] Selection of Website [b] Instrumentation [c] Data Collection Secondary Data [a] Academic Journals [b] Articles and Online Articles Data Analysis Methodology Conclusion 30 CHAPTER FOUR: DATA ANALYSIS AND FINDINGS 4.0 Introduction Instrument Reliability Descriptive Data Statistical Analysis Result of Hypotheses One-sample Mest Frequency Test Differences of Web Quality Elements 36 Vll

8 4.6 Conclusion 37 CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS 5.0 Introduction Conclusions Limitations Recommendations Conclusion 41 REFERENCES 42 APPENDIX A 48 APPENDIX B 56 APPENDIX C 64 viu

9 LIST OF TABLES Table No. Name 3.1 Hardware Description 3.2 Elements of Web Quality Dimension 3.3 Criteria of Evaluating Website Quality 3.4 Data Analysis Methodology 4.1 Cronbach's Alpha Reliability Coefficient 4.2 Number of Website Page No Number of Website Implement Element of 32 E-commerce 4.4 Analysis of Hypotheses One-sample t-test Independent-sample t-test Results of Frequency Test Differences of Web Quality Elements Results of Hypotheses 37 IX

10 LIST OF FIGURES 1^ Name Page No. 2.1 A framework for Evaluating E-commerce Web 14 Site Quality ( Mel Cao et al., 2005) 3.1 Research Model: Extended Technology 18 Acceptance Model (TAM) and IS Success Model (Source : Cao et al., 2005) 3.2 Research Methodology Numberof Website Implement Element of E- 33 commerce

11 CHAPTER 1 INTRODUCTION 1.0 Introduction This chapter focuses on the introduction of the project. The first section describes on the project background and the industry background. The following sections outline the researcher's problem statement, research questions, objectives, scope of the research, significances of the research, and limitations of the research. Lastly this chapter will cover on research approach and methodology. 1.1 Research Background Telecommunication is the transmission of electronic waves by electronic transmitters over distance for the purpose of communication. Telecommunications is the backbone of all Information Technology Systems (ITS) applications. It provides the means for sending data, voice, and video information between devices. Malaysia has a well-developed telecommunication infrastructure. Many of the players in Malaysia's telecommunications sector were seriously affected by the economic crisis of the late 1990s. Even though, there has been strong growth in the sector over the last decade. Currently, the main players in telecommunication service providers companies in Malaysia are Celcom, DiGi, Maxis, Telekom Malaysia, Jaring, TMNet and TimeTelekom. Every year, new technologies increase services available and the speed of delivery. As more people access services online, telecommunication service providers' websites are increasingly becoming important point of contact with the providers. Websites are part of everyday life and are used to exchange and convey information between user communities. The web site can be viewed locally and internationally, it's a new media used to exchange and gather information and ideas and performing transactions. According to Cao et al. (2005), website also is an effective tool for commercial purposes for promoting business to current and potential clients anywhere, anytime. It enables customers to find out all the information they need

12 about any related products from the company. A web site also enables the company to make, as much information available to customers as they think is needed. Using the Internet as a marketing tool is a wise business decision no matter the size of the company. More and more people and businesses use the Internet to find information because it is convenient and saves time. Having a website is becoming essential that customers and the general public almost expect a company to have a website. Having website alone does not promise effective medium of communication and commerce between the business and its' client. Other aspects, such as customer relationship management (CRM), must also be paid attention in order to assure quality services and relationship with the customers. Website Quality plays an important role in attaining website effectiveness. According to Offutt (2000), only high quality mechanism will bring repeat users to websites. Researchers have investigated website quality using variety of approaches, including methodologies, quality frameworks, estimation models, criteria, usability guidelines, assessment methods and metrics, but they have not agreed on a consistent set of constructs and variables affecting website success. Some instruments that are using to measure web quality metrics in previous studies are SERQUAL, WEBQUAL, SITEQUAL, EWAM, WA Method and FQT4Web. This research will use selected method and tool available in order to identify the level of website quality in telecommunication industry in Malaysia. These methodologies will be described in the following chapter, literature review. 1.2 Problem statement In Malaysia there is a lot of telecommunication service providers' websites that provide information about their services, background of their company and platforms for many applications. The websites are services that are extended from what they have offered through their call centers and service center. Apart from that, some additional services such as entertainment, news updates and community links are also made available though the website. Different websites have different kinds of features and meet different kind of expectations. Towards some extends, if is expected that telecommunication service providers' websites should provide beyond informational type of websites. It should include elements of interactivity.

13 personalization, and perhaps e-commerce. The question are the websites represent the standard of their highly technology oriented services? How interactive and effective are their websites to the users? What are the factors should be identified to categorize the level of the websites? There is a need for this research as there was no research has been done before to identify the web quality level of telecommunication service providers in Malaysia. 1.3 Research Questions The research questions of this research are : What are the web metrics tools to measure quality of telecommunication service providers' websites? What is the level of telecommunication service providers companies' websites quality compared to others Asian countries? What are differences in Malaysia and East Asian telecommunication service provider company website elements? 1.4 Objectives of the Research The main objectives of this research are : To identify web metrics tools to measure quality of telecommunication service providers' websites. To identify level of telecommunication service providers companies' websites quality. To compare between telecommunication service providers' websites quality in Malaysia with others in East Asian countries.

14 To identify the differences in Malaysia and East Asian telecommunication service provider company website elements. 1.5 Scopes of the Research This research is only focuses on telecommunication service providers' websites in Malaysia since the industry has a well-developed and the latest information and communications technology infrastructure. This industry also becomes important as the government wants the country to become an information-based society by 2020, and the telecommunication sector plays a major role in its vision. The study will evaluate the websites of Malaysian telecommunication companies and to compare with websites of East Asian telecommunication since the cultures among the East Asian country which is more similar rather than other developing countries. According to Lovelock and Yip (2000), the cultural elements have the greatest influence when the services involve high a high degree of interaction between customers and service personnel. 1.6 Research Approach and Methodology The data for this research will be obtained through observations performed on 16 websites of telecommunication service providers in Malaysia and 16 websites of other East Asian telecommunication service providers companies. The observation will focus on the quality metrics of the telecommunication websites. There are four factors that are critical to measure the websites quality which are system quality, information quality, service quality and attractiveness. The collected data are then analyze and compute to research information as a research result and findings. The detailed description of the research methods will be discussed in Chapter 3. There are secondary data that is being used to as a reference relates to this topic, such as journals on past research, articles and books.

15 1.7 Significances of the Research By doing this research, the tools to measure quality of telecommunication service providers in Malaysia will be identified. The tools included some important element to measure the websites qualities which are taken from the previous study done all over the world. This tool is adapted from the others researchers to accommodate with the environment of telecommunication service providers industry. These studies are important to the companies of the telecommunication service providers related to the web quality metrics of telecommunication service providers in Malaysia. This research will give an idea of the level of telecommunication service providers companies' websites quality compared to others in East Asian countries which have identified before. Therefore, they can take this opportunity to improve their website quality and do the enhancement based on standard telecommunication worldwide. 1.8 Limitations of the Research There are a few limitations when conducting a research. Some of the factors which considered as limitation of the research are time and cost constraint. Time provided to complete this research is only 4 months, which is so short in order to complete this research. If the longer period is given, the number of respondents can be increase. Another point is since the research is done through observation method, it is difficult to have the cooperation and time from the respondents, as an alternative way, this research only done by the researcher to observe those websites. In addition, some of the websites require ID and password which is given after the user subscribed with the company services, to perform most of the tasks on the website. Another limitation is some of the website is not provided with personalization method, which is difficult for the researcher to understand the language.

16 1.9 Conclusion Chapter 1 provides an introduction to this research, including the current problems of the situation and also discussed on the reasons of doing this research. The research will elaborate details in the next chapter. Chapter 2 will provides a literature related to the areas investigated in this study. In Chapter 3, the researcher covers the research approach and methodology. Research analysis and finding are discussed in Chapter 4 while the last chapter. Chapter 5 will covers on the conclusion and recommendations for further related research.

17 CHAPTER 2 LITERATURE REVIEW 2.0 Introduction This chapter presents a review of literature related to measuring web quality metrics. This section will explain on the dimension used to evaluate web quality, the tools and also some important terminology used in this research. All the information is based on previous researches, books, magazines and also from the Internet which are relevant to the research. 2.1 Terminology There were several terms that being used for this research which are the terms quality metrics, measurement and electronic commerce. This section will explained those terminologies Quality Metrics A metric is a verifiable measure stated in either quantitative or qualitative terms. A metric is a verifiable measure that captures performance in terms of how something is being done relative to a standard, allows and encourages comparison, and supports business strategy. Metrics have now been defined to measure almost any conceivable attribute of software. In fact according to Ruhe et al. (2003), web metrics is a particularly valuable area of ongoing, commercially relevant research. While quality relates to customer satisfaction and the level of accomplishment of user expectation when interfacing a website (Moustakis 2006). According to Brajnik (2002) quality is a property of a website defined in terms of a system of attributes, like consistency of background colors or average download time.

18 2.1.2 Measurement According to Boyce et al. (1994) Measurement, in most general terms, can be regarded as the assignment of numbers to objects (or events or situations) in accord with some rule [measurement function]. The property of the objects that determines the assignment according to that rule is called magnitude, the measurable attribute; the number assigned to a particular object is called its measure, the amount or degree of its magnitude. It is to be noted that the rule defines both the magnitude and the measure. In addition, based on the research paper done by Dhyani et al. (2002) stated that: "When you can measure what you are speaking about, and express it in numbers, you l<now something about it; but when you cannot express it in numbers, your l<nowledge is of a meager and unsatisfactory kind; it may be the beginning of knowledge, but you have scarcely in your thoughts advanced to the state of science." For this study, besides measuring web quality for telecommunication service provider, it's also trying to measure availability of e-commerce elements in those websites Electronic Commerce According to Keeney (1999), e-commerce is defined as the sale and purchase of products and services over the internet, which includes the sharing of business information, maintaining business relationship, and conducting business transaction by way of internet based technology. E-commerce firms depend on people visiting their sites, purchasing their products, and more important becoming repeat customers (Smith and Merchant, 2001). The use of an e-commerce channel such as the web makes a faster response to the needs of the marketplace (Hsu, 2006).

19 2.2 Past Research According to the past research done by Cao et al. (2005), which the main idea of this research is to identify what constitutes web site quality or what makes a web site effective. Previous studies on web site quality have generally focused either on basic content management or on specific sets of web site functions. The researcher chooses online bookstores as the application domain and students as users because many students buy books using the internet. In analyzing web content, the evaluations include the quality of online information, the relevance of information and the use of multi-media elements. While in functionality, there are evaluations of various search engines, waiting time, response time and interface design. Another factors that some of the investigators have looked at is the capability for and level of customer feedback. The goal of the research is to identify those variables that capture e-commerce web site quality and to develop measures and empirically validate them. From this research, it's found that customers are very particular about having a web site easy to read, easy to navigate and also consider about the loading time. Another element that perceived by the user is search facility which reflects the extent to which a tool or structure helps a web site user to find information. Some of the tools include menus, directories, frames, buttons, site maps, subject trees, a search engine, image maps and colors. Additionally, the factor analysis indicate that e-commerce web sites should be designed to provide accurate information, reduce loading and searching time, make searching easier, and make the site secure because customers are most concerned with finding accurate information, searching fast and placing order securely. According to the research done by Barnes and Vidgen (2003) found the factors that important to the quality of website are ease use and accurate, trusted and pertinent information. While, empathy and community aspect are less concerned by the respondents. This research is done on the electronic government (e-government) to measure the website quality improvements. E-government provides communication, transaction and integration of administrative services, which mean it can be accessible to all. The evaluation of this website is done in two separate period of time, which one before the redesign is done, and another one is after the redesign exercise. It's evaluated by asked the important of the factor and rating the website. It's found that primary focus by the users to be on information-orientation rather than

20 business transactions. In addition, personalization is one of the factors that need to be considered as there are problems occurred on cultural and languages issues. Another research done by Barnes and Vidgen (2002) on measuring quality of bookstore website using WebQual tools also stated that elements that are concerned by the customer are ease of site use, finding accurate information, and being able to reliably transact and receive goods. This shown that the content of the website is important criteria to be focus. It's also stated that Web content management is concerned with the life cycle of Web documents, from creation through Web publishing to destruction. Trust is another element that based on customer perceptions of quality weighted by important. This element is part of service interaction quality. Moreover, trust is likely to be a key differentiator of future "winner" and "losers" in e-commerce. In addition, according to the authors, a key challenge for e-commerce organizations is to understand customer requirements and to develop their Web presence and back-office accordingly. In the Airline industry website, customers are concerned most about accuracy, relevancy, believability, ease of understanding and timeliness of information as well as the convenience provided for ticket purchasing. On the other hand, security and reliability is a lower perceived important, perhaps due to greater acceptance of online transaction activities among the respondent. This research is done by Shchiglik and Barnes (2004). It's also found that improving a website will not always necessarily be the most effective solution for increasing a quality score. But the external considerations such as past experience, advertising, and brand image can also influence a customer's perception. Based on the past research done by Webb and Webb (2004) measuring the quality website of retail sector of music purchases (compact disc and cassettes), the security is an important dimension in business-to-consumer (B2C) environment. This includes privacy of information and security of transaction, this is not unexpected businesses given major consumer alerts on viruses, hackers, identity theft, and protection of information. There is a difference between security dimension in B2C and information system (IS) which in IS, security concerns such as password protection or employee access to selected database, security in B2C environment refers to whether customers feel that their financial information will 10

21 remain secure and private if provided over the Internet to a business. From the research, it's stated that a combination of quality factors derived from service quality and data quality are needed to evaluate both desired and minimum quality factors expected of a B2C Website. Another quality factors that are considered necessary in B2C environment are reliable, considerate of user needs, easy navigate, and trustworthy. The first important thing to analyze and evaluate bank site is determine the primary goal either the site simply to deliver information, promote and encourage online banking, allow customers to sign up for products online or other. Additionally, according to Sablosky (2003) on the article titled Website, it was discussed four important suggestions for good website quality. Firstly is to make it useful and usable. The website should choose an easy and efficient format. Besides, website also should be clean and easy to navigate, this include to be sure every function works smoothly. Second suggestion is it should reflect the bank's brand. Website is an extension of branch network, marketing materials and media placements. Therefore, website should provide the right choice of colors, graphics and type which reflect with the company's brand. Thirdly is to engage visitors in a sale. It's one of the goals to capture new customers as well as to satisfy current customer, so website should provided with information that the customers are looking for. The last suggestion is to offer added value that makes visitors want to come back. This include received newsletter via , provide links to relevant financial service sites and other. There are positive relationships between website quality and customer value with customer satisfaction. According to this research done by Hsu (2006) the success of e-commerce depends on knowing customers. The survey was done based on E- shop. Students with experience in shopping through the internet participated in this study. Based on this research, firms need continue to improve and pay close attention to the information presented on their websites such as accuracy, comprehensive, reliability and relevance. In addition, quality, cost-based value, and performance outcomes are important elements for any company involved in e- commerce. It was found that reducing the cost of products and time purchasing product are not the priority for customers to shop online. However, the performance 11

22 outcomes, such as an easy return process and quality of service after purchasing is more important. 2.3 Dimension According to the past research done by Cao et al. (2005), web quality are identified which are system quality, information quality, service quality and attractiveness. The framework relates the web site quality to customer's perceived usefulness and perceived ease of use, and further to customers' preference and intention to reuse the site. System quality measures the functionality of a web site include usability, availability and response time. System quality can be assessed by search facility, responsiveness and multi-media capability. Search facility reflects the extent to which a tool or structure helps a web site user to find information as perceived by the user. Search facility reflects the extent to which a tool or structure helps a web site user to find information as perceived by the user. Some of the tools include menus, directories, frames, buttons, site maps, subject trees, a search engine, image maps and colors. Responsiveness is defined as the willingness to help online customers. It can be measured in at least two ways which are load time and search time. Multi-media capability refers to the non-verbal features that enhance the customer's feeling of preference for a web site. Information quality captures the e- commerce content issues. Content is represented by 2 constructs which are information accuracy and relevance. The information on the website should be accurate, informative and updated. Information relevance refers to extent to which the information on the web site is related to the information needs of the customer. Service quality measures the overall support delivered by the web site. It includes trust and empathy. Trust refers to the extent to which customers believe the web site is legal, ethical and credible and is able to protect their privacy. Empathy refers to the extent to which a web site provides caring, individualized information and attention to customers. Attractiveness consists of the issues of whether web pages are fun to read and subjectively pleasing. Playfulness is an influential factor to attract customers. Playfulness includes the devices that attract the attention of web site users with enjoyable constructs. 12

23 Based on the past research done by Oppenheim and Ward (2006) stated that additional criteria for evaluating website included navigation and structure, and security, privacy and authority. A navigation bar containing clear links helps to improve navigation for visitors and a logical structure with different sections and levels helps provide a rational path for users to take. In addition, a site map, content list and index, with a link to the site map on every page are useful for larger web sites. Landmarks such as prominent, memorable page titles and history trails where the links to previously visited pages change to a different color can aid navigation. "Security is a paramount concern for e-business website design. Visitors have more confidence in the security of professional-looking sites" (Badre, 2002). For example web sites inform visitors of any tracking or collecting of personal behavior data and how the information gathered will be used. Another research done by Moustakis et al. (2006) stated that navigation reflects the support provided to the user when moving in and around the site. Elements of navigation include ease of moving around, ease in understanding site structure, availability, and validity of link. Another element is appearance and multimedia. This element captures aspects that relate to site's "look and feel" with special emphasis on state-of-the-art graphics and multimedia artifacts. Presentation criteria regard measurements of the whole site and of a single page presentation. These include page layout, text presentation, multimedia presentation and links presentation. The page layout is probably the principal characteristic perceived by the user. Layout must be clean, and the whole content should be well structured. Layout must be adaptable to different devices. There are many issues to consider about text presentation. Used fonts must be suitable for easy reading. This implies several rules about colors and sizes. Multimedia is an important component of web sites. However, multimedia components are essential, as they convey an important message, from cases where images or sounds are just enriching the page, to make them more attractive. Lastly, links are an important component that are considering under the aspect of website presentation. According to the past research done by Yang et al. (2004) identified the broad conceptual categories related to online service quality. Customer perceived service quality can be defined as a global judgment or attitude relating to the superiority of 13

24 service relative to competing offerings. On the other hand, information system quality can be divided into two categories which are system and Information quality. System quality refers to software development caliber, while Information quality embraces accuracy, timeliness, currency and reliability of information. This study will adapt conceptual categories as suggested by Cao et al. (2005). However, some elements are added to this framework for this study which will explain further in research approach and methodology chapter. E-Commerce Website Quality System Quality - Multimedia Capability - Search Facility - Responsiveness Information Quality - Information Accuracy - Information Relevance Service Quality - Empathy - Trust Attractiveness - Playfulness ^ p k w Perceived usefulness \ \ \ ^ Perceived ease of use Preference ^ Intention to for a w revisit a Website Website / / 1 ' Web Quality Beliefs Attitude Intentions Figure 2.1 : A framework for Evaluating E-commerce Web Site Quality ( Mel Cao etal.,2005) 2.4 Technology Acceptance Model (TAM) TAM was originally developed from Fishbein and Ajzens (1975) Theory of Reasoned Action (TRA), TAM was used to examine why users beliefs and attitudes affect their acceptance and rejection of Information-communication technology. TAM model had been used since the mid-1980s, research on information technology adoption has focused on developing and testing models to predict intention to use and/or actual usage of information technology by individuals and organizations (Yang et al., 2005). Research done by Yang et al. also stated that TAM has also been used to study these applications, such as the World Wide Web, intranet, electronic commerce, and online shopping. 14