Professional Documents
Culture Documents
1.0 INTRODUCTION
Fornell, 1992, Levesque and McDaugall, 1996 state that organisations are
therefore increasingly being more customer-centric and are much
interested not just in acquiring new customers, but more importantly,
retaining existing customers. This is perhaps because Customer’s
satisfaction holds the potential for increasing an organization’s customer
base, increase the use of more volatile customer mix and increase the
firm’s reputation. One path to achieving customers’ satisfaction is through
customers’ service.
1
the feeling that a product or service has met customer’s expectation.
Customer’s service varies by product, industry and customer. It however,
assume important dimension in service delivery and sales of product. This
is because Service firm such as Telecommunication firms, have no
inventory of finished goods to buffer production from random demand
variability (Dutta and Roy, 2006). Nevertheless, it is a demand for
corporation survival; profitability and growth that service firm hold their
own in competition.
RESEARCH QUESTIONS
2
To examine switching intention among customers of MTNs within Nigeria.
This is organised into six chapters. Chapter one is the introductory chapter
that covers the Background to the study, Research Questions, Research
Aims/Objectives and Structure of thesis.
3
CHAPTER TWO:
In January 2001, the regulatory body NCC, modernised and expanded the
mobile telecommunications network and services by granting GSM license
to three service providers; MTN Nigeria, Econet Wireless Vmobile,(now
Zain), and the first national carrier, NITEL (initially MTS, privatised to form
Mtel). In 2002, the second national carrier, Globacom was also granted
license to commence operation. Since the launch of the GSM, the number
of subscribers in Nigeria has greatly increased. Ndukwe (2005, pp 37-38,
40) reported that between 1998 and 2000, the number of mobile lines
4
was 35,000 but grew to over 11 million as of March 2005, with a growth
rate of more than a million lines annually since 2002. This translated to an
increase from the total density of 0.4 lines per 100 inhabitants in 1998 to
9.47 lines per 100 inhabitants currently.
Accordingly, the broad business and purpose of the NCC as derived from
the enabling Decree 75 of 1992 helps to facilitate private sector
participation in telecommunications service delivery, coordinate and
regulate the activities of all the operators to ensure consistency in
availability and survey of service delivery and fair pricing (NCC, 2006).
5
CHAPTER THREE
6
been received against what was expected, including the purchase
decision itself and the
needs and wants associated with the purchase (Armstrong & Kotler,
1996). According to Bitner & Zeithaml (2003) satisfaction is the
customers’ evaluation of a product or
service in terms of whether that product or service has met their needs
and expectations.
According to Boselie, Hesselink, and Wiele (2002) satisfaction is a positive,
affective
state resulting from the appraisal of all aspects of a party’s working
relationship
with another.
7
retailing have pointed out that service quality positively influence
customer satisfaction (Johnson & Fornell, 1991; Kristensen et al 1999;
Cronin et al 2000). Similar conclusions have been proposed by (Kuo, 2003;
Lee & Lin, 2005; Collier & Bienstock, 2006; Hsu, 2006; Park & Kim, 2006;
Bauer et al., 2006) in the studies of website and online shopping . Thus,
Hypothesis 1 is proposed as follows:
8
expectations of service or as meeting or exceeding customer
expectations.
According to (Ward 2007), Customer service is an organization’s ability to
supply their customers’ wants and needs.
Service quality model has gained a lot of attention since the findings of
the exploratory research by Parasuraman et al., in (1985). In this study,
he developed a gap model of perceived service quality and revealed ten
dimensions to measure service quality but in a second study in 1988, the
ten dimensions were condensed to five dimensions.
9
elements of the service organisation and Corporate quality as the
dimension of quality developing during the history of the service
organisation.
10
(1992) developed a one-factor measurement instrument instead of the
five-factor measures proposed by Parasuraman et al., (1988).
However, Bitner, Booms and Mohr (1994) define service quality as “the
consumer’s overall impression of the relative inferiority/superiority of the
organization and its services.” Other researchers view service quality as
“a function of the differences between expectation and performance along
the quality dimensions” (Parasuraman, Zeithaml, & Berry, 1985, 1988,
1991), “a relativistic and cognitive discrepancy between experience-based
norms and performances concerning service benefits” (Roest & Pieters,
1997), and “a form of attitude representing a long-run overall evaluation”
(Cronin & Taylor, 1994; Taylor & Cronin, 1994).
11
integrates the two constructs and suggests that perceived service quality
is an antecedent to satisfaction.
TELECOMMUNICATION SERVICES
Several studies in the past few decades suggest that service quality has
become a major area of attention to practitioners, managers and
researchers owing to its strong impact on business performance, lowering
costs, improving customer satisfaction, customer loyalty and profitability
(Leonard & Sasser,1982; Cronin &Taylor,1992; Gummesson, 1998;
Silvestro and Cross, 2000). According to Brown and Swart (1989),
customers prefer organizations that deliver higher service quality, and
suppliers can charge a premium for service qualities.
12
The results indicated that perceived service quality and perceived value
are the key constructs affecting the customer's satisfaction with mobile
services. Satisfaction in turn leads to customer loyalty. Woo and Fock
(1999) investigated determinants of customer satisfaction in the Hong
Kong mobile phone services sector. They conducted an exploratory factor
analysis on 20 attributes followed by confirmatory factor analysis and
obtained four determinants of customer satisfaction viz. transmission
quality and network coverage, pricing policy, staff competence and
customer service.
In their study in the New Zealand's telecom services industry Danaher and
Gallagher (1997) identified that certain attributes of the personnel
delivering the service, such as friendliness and competency, more
strongly influence the overall service quality than other factors viz. clear
voice and time taken to respond. In another study Wang et al., (2004)
investigated the impact of quality-related factors on customer value and
customer satisfaction using structural equation modeling (SEM) in China.
They used the SERVQUAL (Parasuraman et al., 1988) factors (reliable,
tangible, responsive, assurance and empathy) to measure service quality,
but added "network quality" as another antecedent of customers'
perceived service quality. Results indicated that all the service quality
factors had significant and positive impact on customer satisfaction.
13
reliability, responsiveness, assurance, and empathy, using a seven-point
Likert type scale measuring both customer expectations and perceptions
and further explains that if the performance is less than what the
customer expects, quality is perceived to be low and conversely, if
performance meets or exceeds customer’s expectations, quality is
perceived to be high, resulting in satisfaction.
Kim et al., (2004) investigated the effect of different service features and
switching barriers on customer satisfaction and customer loyalty in the
Korean mobile telecommunication services sector. They used SEM to test
their proposed structural model.
Aydin and Ozer (2005) used the SEM technique to study the impact of
service quality, perceived value, customer expectations and complaint
handling on customer satisfaction in the Turkish mobile telephone market.
The results showed that service quality, customer expectations and
complaint handling had positive and significant effect on customer
satisfaction, Service quality had the strongest effect than other constructs
in their model.
14
3.2 Customer Value
According to Wang and Lo (2002) more and more firms are searching for
new ways to achieve, retain, upgrade and leverage competitive
advantages, given the fact that customers are becoming more
demanding, competition is getting more intense and technology is
changing more rapidly.
As some researchers have concluded (Day, 1990: Naver and Slater, 1990),
creating superior customer value is a major goal for market-driven firms.
In fact, delivery superior customer value is inevitably becoming one of the
most important success factors for any firm now and in the future because
of its significant impact on behaviour intensions of customers.
Lam et al., 2004; Ravald and Gronroos 1996 defined value as the
perceived trade-off of benefits and costs, customers are more (less) loyal
to products with higher (lower) perceived value. For instance, a study of
retail and airline companies showed that perceived value relates
positively to future purchases and willingness to recommend the company
to others (Sirdeshmukh, Singh and Sabol, 2002).
Researches by Wang et al., (2004) and Turel and Serenko (2006) studies
of the telecom industry which investigated the mobile services in China
15
and Canada found out that service quality is positively related to
perceived value.
According to a report prepared for the Office of Fair Trading and the
Department of Trade and industry by National Economic Research
Associates ( April, 2003) defines switching cost as the real or perceived
costs that are incurred when changing supplier but which are not incurred
by remaining with the current supplier.
16
satisfaction falls to a certain point, loyalty reduces equally dramatically. Yi
(1990) expressed that the impact of customer satisfaction on customer
loyalty by stating that “customer satisfaction influences purchase
intentions as well as post-purchase attitude”. In other word, satisfaction is
related to behavioral loyalty, which includes continuing purchases from
the same company, word of mouth recommendation and increased scope
of relationship.
However, the idea of linking service quality and customer satisfaction has
existed for a long time. Studies indicate that there are links among
customer satisfaction, service quality, customer value, customer loyalty,
17
and profitability (Grönroos, 1982; Parasuraman et al., 1985; Heskett,
Sasser, & Schlesinger, 1997; Anderson & Mittal, 2000).
Some of the dominant models still widely used are the expectancy
disconfirmation model which describes customer satisfaction as a function
of expectations and disconfirmation resulting from a comparison of
expectation with actual performance perception [Oliver 1980]; the
perceived performance model which suggests customer satisfaction with
tangible products to be affected by the actual performance only [Churchill
and Suprenant, 1982]. The main constructs in this model are:
expectations, performance, disconfirmation, and satisfaction.
18
expectancy disconfirmation model in framing customer satisfaction on a
national basis in Sweden [Fornell 992] and in the USA [Fornell et al. 1996].
Expectatio
ns
Satisfactio
Disconfirmati
n
on
Perceived
Performan
ce
19
4.0 CHAPTER FOUR
This chapter will present a detailed idea about how the research will be
conducted. This includes research approach, research design, data
collection, sample selection method and data analysis methods. At the
end of this methodology part validity and reliability issues will be
discussed to follow the quality standards of the research.
20
that all involved in the programme are able to derive full value from the
views expressed by respondent, including noting any personal hygiene or
honesty.
The descriptive research will be used in this study since the purpose is
just to describe and not to establish any relationships. Also it can provide
a lot of information which is useful in identifying further areas of research.
21
Descriptive research is appropriate when the research objectives include
the description of the characteristics of marketing phenomena,
determination of the frequency of occurrence of specific marketing
phenomena.
The knowledge claims, the strategies and the method all contribute to a
research approach that tends to be more quantitative, qualitative or
mixed (Creswell 2003)
22
differences between the groups. It is also possible to use the methods
simultaneously. (Hirsjärvi et al 2005; Malhotra & Birks 2000)
The study is based on both secondary and primary data in order to find
sufficient and describing data. As a result of wanting the information
gathered to be focused on specific research question a survey
questionnaire will be administered.
Primary data are data originated by a researcher for the specific purpose
of addressing the problem at hand. (Malhotra & Birks, 2007) Primary data
is, data collected for the first time and for a specific purpose. There are
two main methods by which primary data can be collected-observation
and communication. Observation method is used to get both past and
current information.
23
questionnaires were administered in total. The rating scale varied form
“Very Satisfied” to “No Opinion”.
24
According to (Hair et al., 2003) convenience sampling involves select
sample numbers who can provide required information and who are more
available to participate in the study. Convenience samples enable the
researcher to complete a large number of interviews and quickly.
25
4.4 SELECTION OF RESPONDENTS
The location is based on my experience of the area in Lagos state and the
selection of respondent was based on Subscribers in Ikeja area of Lagos
state. Ikeja is the capital choice of residence for state parastatals,
corporate bodies, top state officers, civil officers, businessmen and
averagely rich people. It is the choice of residence for civil officers,
business people, etc.
A total number of 100 people were interviewed for this study. This number
is in accordance with the views of Dillman (2000) and Hill et al. (2003),
who reported that a sample size of 100 and above is sufficient to present
good concise research findings and also, provide good representation of
the population or organization or any subject investigated. Selection is by
convenience sampling (Non-probability sampling); interception of mobile
users (questionnaires were handed out to every passerby and interested
people waited to fill the forms) on streets in the central area of the chosen
location on their way to work, lunch, school and shopping centers, etc.
The points of data collection were changed within the chosen central
location to minimize bias. 100 respondents were administered the
questionnaires.
The Likert scale used in this study is odd numbered (as proposed by
Spagna, 1984); balanced (the number of favorable and unfavorable
categories is equal). This view is proposed by Watson (1992), who
reported the balanced state helps to obtain an objective data; has non-
forced choices “no opinion” to improve the accuracy of the data (as
proposed by Hasnich, 1992); and 5-scaled categories which conforms to
the traditional guidelines reported by Aaker (1997). He proposed that the
categories scale should be between 5 and 9.
26
satisfaction with service delivery, thirty-seven (37) related to customer
satisfaction with dimensions of SERVQUAL and eight (8) related to
importance of SERVQUAL dimensions and one (1) related to switching
intention of customers.
After collecting all the data the process of analysis begins. To summarize
and rearrange the data several interrelated procedure are performed
during the data analysis stage (Zikmund, 2000).
For quantitative data analysis, statistical tools of Microsoft excel and SPSS
are used for data input and analysis. The statistics results were presented
by tabular form with detail description.
4.7 VALIDITY
Validity is concerned with whether the findings are really about what they
appear to be about (Saunders et al., 2003). Validity defined as the extent
to which data collection method or methods accurately measure what
they were intended to measure (Saunders et al. 2003). Cooper &
Schindler (2003) believe that validity refers to the extent to which a test
measures what we actually wish to measure. According to (Cooper &
Schindler 2003) there are two major forms: external and internal validity.
The external validity of research findings refers to the data’s ability to be
generalized across persons, settings, and times. Internal validity is the
ability of a research instrument to measure what is purposed to measure.
4.4.2 RELIABILITY
CHAPTER FIVE
This chapter consists of two parts: Data presentation and Discussion. Data
presentation covers data on respondents’ characteristics, customer
satisfaction measurement and satisfaction with service quality
dimensions, relative importance of service quality dimensions and
switching intention. The discussion is an analysis of hypotheses, results
and findings to answer the research questions.
28
The respondents’ gender as displayed in Table 5.1.1 indicates that the
males (53%) were slightly more than the females (45%). This further
implies that there was a good representation of both genders in the
sample.
29
Frequen Valid Cumulative
cy Percent Percent Percent
Table 5.1.3 indicates the respondents’ age. It is obvious that most of them
were in the young adult age and economically active group, between the
ages of 20 and 39 consisting of 74% (44% and 30%), while the rest
constitute 12% made up of respondents below 20, between 40 and 49,
and 50 years plus.
30
Table 5.1.4 Income Level of respondents
31
Frequen
cy Percent
Post-Secondary 7 7.0
Diploma/HNDIplom 16 16.0
a
Post-graduate 32 32.0
Diploma/Masters
phD 4 4.0
32
5.2.1 Disconfirmation models
D DESIRE DISCONFIRMATION
D
How well did the services you received from your network compare
with the ideal/desired services?
E EXPECTATION DISCONFIRMATION
D
To what extent have your mobile network services met your
expectations?
33
Overall, tell how satisfied you are with the service delivery of your
network.
SI SWITCHING INTENTION
Customers were asked to rate their satisfaction with service quality using
desire disconfirmation (DD), expectation Disconfirmation (ED) measures
and overall Customer satisfaction (OCS) measures. The ED measure had a
five-point likert scale: “much worse than expected”, “worse than
expected”, “equal to expectation”, better than expected and “much worse
than expected”. The scale for DD measure was also five-point likert scale:
“very dissatisfied”, “dissatisfied”, “neutral”, “satisfied”, and “very
satisfied” where: 1 representing the lowest and 5 representing the
highest.
34
Minimu Maximu Std.
N m m Mean Deviation
35
Table 5.4.1Descriptive Statistics of Satisfaction Measures
Table 5.4.1 indicates that the mean rating of customer satisfaction using
DD measure is 2.69 with standard deviation of 1.022 while ED measure,
the mean is 2.33 with standard deviation of .842. Using OCS, the mean
rating of customers was 3.03 with standard deviation of 1.185, being the
highest.
Table 5.4.2 above also indicates that service quality influence customer
satisfaction in MTNs mobile telecom Network, indicating that when
telecom companies provide good service quality customer satisfaction can
be enhanced. Service quality positively influenced customer satisfaction.
In other words, higher service quality can lead to higher customer
satisfaction.
36
Hypothesis (H2): Service quality relates positively to mobile loyalty.
Standardiz
ed
Unstandardized Coefficient
Coefficients s
The results in the table 5.2.3 above showed that Value and switching
costs related significantly and positively to loyalty, thereby supporting H2
37
and H4. Furthermore, value related to mobile loyalty more than service
quality and switching costs did. However, Service Quality was insignificant
and failed to support H3.Service and values tend to be strong when
consumers view products as mainly functional tools (Ahtola, 1985; Batra
and Ahtola, 1990; Voss, Spangenberg and Grohmann, 2003). In contrast,
consumers who enjoy using products as hedonic toys tend to be less
concerned with cognitive factors such as service quality and value.
38
Dimensions Minimu Maximu Std.
N m m Mean Deviation
Valid 100
DIMENSIONS RANKINGS
(IN
ASCENDING
ORDER)
Reliable 1
Technical Quality 2
Responsiveness 3
39
Assurance 4
Economy 5
Image 6
Empathy 7
Tangibles 8
Table 5.3.4 indicates that the most important service quality dimension to
the customers is Reliability, followed by Technical quality,
Responsiveness, Assurance, Economy, Image and Empathy being least
important. “Tangibles” dimension, as earlier indicated in Table 5.3.3 is
unimportant to the customers.
40
Count
Globaco
Zain MTN m Etisalat Total
Respondents definitely 2 3 3 2 10
switching yes
intentions
a bit yes 4 15 1 2 22
neutral 7 16 6 2 31
a bit no 2 10 5 2 19
definitely 3 14 1 0 18
no
Total 18 58 16 8 100
In Table 5.4.1 shows results of customer rating among the four Mobile
Networks in this study. For ZAIN, 33.3% are willing to switch to another
network while 38.9% and 27.8% are neutral and not willing to switch
respectively. For MTN, 31.0% of the customers are willing to switch while
27.6% and 41.4% are neutral and not willing to switch respectively. For
Globacom, 25% are willing to switch while 37.5% and 37.5% are neutral
and not willing to switch respectively. For Etisalat, 50% are willing to
switch, while 25% and 25% are neutral and not willing to switch
respectively.
In all 32% of customers are willing to switch to another network while 31%
and 37% are neutral and not willing to switch respectively in the Mobile
Telecom market.
41
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 13.518a 12 .333
Likelihood Ratio 15.317 12 .225
Linear-by-Linear .985 1 .321
Association
N of Valid Cases 100
5.6.2b 14 cells (70.0%) have expected count
less than 5. The minimum expected count is .80.
Table 5.6.2c indicate that a Chi square of .333 was obtained, however the
14 cells (70.0%) have expected count less than 5.Therefore, it can be
concluded that there is no significant relationship between Switching
intentions and mobile network sample audience.
42
This finding is consistent with past research results. For example. Woo
and Fock (1999)
found that the core service of mobile phone service providers is to provide
users uninterrupted service reliably .
Therefore, it can be said that switching intentions is not equal among the
mobile telecom networks in Nigeria.
43
CHAPTER SIX
44
It has been found in this study that generally customer satisfaction with
service quality is low or less than expected and desired in the Nigeria
MTNs. This imply that policy makers and industry regulators such as
Nigerian Communications Commission Authority in Nigeria, need to be
awakened to this empirical fact and take pragmatic steps to ensure that
mobile telecom network operators in Nigeria improve their efficiency and
effectiveness in the provision of telecommunication services that meet
and exceed customer need, desire and expectation.
45
weakened when confidence in expectation is low or minimal. In other
words, confidence in expectation may moderate the relationships
between expectation/desire disconfirmation and satisfaction.
Specifically, the findings of this study imply that the management of MTNs
must seriously take knowledge of their customer dissatisfaction with their
service quality and work harder to develop effective strategies to improve
the situation, work towards exceeding the expectation and desired service
quality of their customers and consider its customer switching intention
since the study indicates that switching intention is significantly different
among the MTNs in Nigeria and especially that, the customers of the
company are willing to switch to use better network services from other
competitor mobile telecom in Nigeria.
The final conclusion of this study is that generally customers are not
satisfied with service quality delivered by mobile telecom networks in
Nigeria or that their satisfaction is considerably low.
46
In addition, another major limitation of the study is that a relatively
smaller sample of the target population was used and limited to literates.
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APPENDICE A
QUESTIONNAIRE
SECTION A
1. Which mobile network(s) do you use? Tick all the networks you use.
60
Use the responses from 1-5 to answer, where: 1 representing the
lowest and 5 representing the highest
3. To what extent has your mobile network services met your expectations?
1 2 3 4 5
4. How well was the service you received from your network compared to the
desired services?
1 2 3 4
5
SECTION B
In your opinion, how does the service quality of your mobile network meet
your expectations in terms of the following dimensions? Use the responses
from 1-5 to answer, where:
61
How reliable is the use of your mobile telecom
network’s services in terms of
62
EM Giving individual customer attention by employees 1 2 3 4 5
5
63
IM How successful is your mobile network company? 1 2 3 4 5
1
6. Overall, please tell how satisfied or dissatisfied you are with the service
delivery of your network by circling one of these that best describes your
feelings and perceptions.
64
Very Dissatisfied Dissatisfied Neither Satisfied
Very Satisfied
SECTION C
8. Age:
9. Occupation
10.Income:
11.Educational Level:
65
APPENDIX B
66
Desire Disconfirmation
67
Expectation Disconfirmation
68
APPENDIX C
69
DESCRIPTIVE STATISTICS OF SATIFACTION RATING FOR
EACH DIMENSION OF SERVICE QUALITY
70
APPENDIX D
71
Model Summary
Std. Error
Mode R Adjusted R of the
l R Square Square Estimate
ANOVAb
Sum of Mean
Model Squares df Square F Sig.
Total 93.840 99
72
Coefficientsa
Standardiz
ed
Unstandardized Coefficient
Coefficients s
73
74