UNDERSTANDING CUSTOMER SATISFACTION THROUGH QUALITY SERVICE DELIVERY IN THE TELECOMMUNICATION INDUSTRY

ABSTRACT

Quality service delivery today has become not only the rhetoric of every business enterprise, but also occupies eminent position in every discourse.  No business organization can survive without building its customer satisfaction and brand loyalty; likewise no organization can make a healthy living without meeting the needs of its customers. The purpose of this study was to investigate customer satisfaction through quality service delivery in the telecommunication industry. Therefore, related literature which dealt with the customer satisfaction and quality service delivery in the telecommunication industry was also reviewed as part of this study.

The study employed a descriptive survey. A research questionnaire was used as the instrument for data collection; Using a stratified and simple random technique, one hundred questionnaires were distributed to undergraduates from the five faculties in Olabisi Onabanjo University main campus Ago Iwoye. The data collected were thus analyzed using frequency count and regression analysis.

The findings of the study revealed that  there is significant relationship between customer satisfaction and quality service delivery among telecommunication companies in Nigeria. there is a significant relationship between quality service delivery and choice of telecommunication service provider.

It was concluded that customers satisfaction has a lot to with the kind of service provide by the telecom providers. Customers satisfaction has a relationship with quality service among telecommunication in Nigeria. However, the success achieving customers satisfaction could be achieved if proper attention is given to increasing the quality of service delivered which will make all customers stick to their providers.

The study therefore recommends that with the increased competition in the Nigerian Telecommunications industry and the ever-increasing influence of the Nigeria Telecommunications Commission (NCC), retaining customers is one major strategy that the companies must adopt to remain profitable. Mobile telecom service providers should focus more attention on service quality because of its close knit relationship with customer satisfaction. Also With the introduction of Mobile Number Portability (MNP) which permits subscribers to transfer to a better service provider while maintaining their existing mobile number, retaining customers should be a smarter option than attracting new customers since it is less expensive. To prevent subscribers from switching, telecom service providers must ensure that customer satisfaction level is high. 

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Quality service delivery today has become not only the rhetoric of every business enterprise, but also occupies eminent position in every discourse.  No business organization can survive without building its customer satisfaction and brand loyalty; likewise no organization can make a healthy living without meeting the needs of its customers. That is what organizations do: they serve people’s needs. Quality service delivery helps in cementing the relationship between customers and the organization and it is a two-way flow of value. This means that customers derive real value from the relationship which translates into value for the organization in the form of enhanced profitability and sustainability over a long period of time.

Today’s  fast  paced  and  increasingly  competitive  global  market  requires  effective  and efficient strategies to survive and to make profits which can contribute toward the growth of the organisation. Quality service and customer satisfaction are global issues that affect all organisations whether private or business, small or large, global or local.  Customer  satisfaction  have  long  been  recognised  as  playing  a  crucial  role  towards  the organisational success and survival in today’s global competitive market. It  is  obvious  that  the customers  are  more  important  stakeholders  in  many  organisations  and their  satisfaction  is  a  priority  in  marketing  management.  Customer  satisfaction  and  quality service has been a subject of interest to researchers and organisations as it has been proven by some researchers that quality service is related to customer satisfaction. Profit maximisation can be achieved through increase in sales with lesser costs and one of the ways of achieving that is through exceeding customer satisfaction. Customers are constantly aiming to get the highest satisfaction from products or services that they buy/get from various organisations across the globe. Thus, it must be noted that winning in today’s competitive marketplace demands that organisations  need  to  build  profitable  and lasting customer relationship (Kotler, Armstrong, Saunders and Wong, 2002).

Delivering high quality services is closely linked to profits, cost savings and market share (Zeithaml, 2000, Manusamy, Chellia, and Mun, 2010). Furthermore, satisfied customers express more willingness to reuse or repurchase a product or service than dissatisfied customers. Accordingly, 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  satisfaction  can  be  defined  in terms  of  meeting  the  expectations  of  the customers  in  terms  of  parameters associated  with  satisfaction.  The  customer  mind  is  a  complex set  of  thoughts  and  ideas  and  cannot  be fully predictable by human being. 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 various 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, Omotayo, Abiodun and Joachim, 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, customer’s interest  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 through customer satisfaction is not different from the Mobile Telecommunication Networks in Nigeria. 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 Nigerian Communications Commission (NCC). Since survival and growth or financial outcome is driven by customer loyalty which is in turn driven by customer satisfaction and value (Nimako, 2012), 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. The   Telecommunication industry in Nigerian has developed to  be  very  competitive,  as  different Telecommunication companies jostle for the attention of subscribers. One of the key challenges confronting these Telecommunication companies  is  how  they  manage  their  quality service , which  holds a  great  deal  to customer  satisfaction.

Nigeria’s mobile telecommunication industry is perhaps one of the fastest growing sectors of the Nigeria economy and there is fierce competition within the sector made up of different telecommunication  operators  namely, MTN, Etisalat,  Airtel,  and  Glo. 

According to Parasuraman, Zeithaml, and Berry (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 on customers satisfaction through quality service delivery provided by Mobile Telecommunication Networks in Nigeria appears therefore of interest upon this assertion will the study be carried out.

1.2 Statement of the Problem

It costs five times more to attract a new customer than it is to sustain and retain current profitable one (Ghavami and Olyaei, 2006).  Marketers  understand   that  every  effort  invested  in marketing  communication  was  aimed  towards  the  attracting  new  customers  and  creating  superior  and  lasting  value  for them (Kotler and Keller, 2006). Kotler  and  Keller  (2006)  made  it clear that a satisfied customer will inform one or two of his friends or close associates about it, but if treated poorly, the customer  goes  about  informing  hundreds  of  current  and prospective  customers. 

The pivot of every prosperous business is to retain or sustain customers. It requires truthful and rational communication between the customer and the company offers. If a customer is convinced that he is getting deserved quality service, he will be ready to react favourably to the marketer’s cross -selling as   well as up-selling approaches. Telecommunication  companies  in  Nigeria  show  antipathy  as  well  as  apathy  towards  pulling  their  marketing communication strategies and other resources together towards acquiring,  retaining  and  building  long -lasting  value  laden customer  relationships  to  improve  their  lifetime  values  that will  necessitate  loyalty.

Consequently, the Nigerian telecommunication  services  subscribers  are  totally  tired  of complaining  about  network  failures,  cross  lines,  drop  calls, poor internet connectivity, high call tariffs, and general poor customer  care  services  (Oghojafor,  2014;   Tajudeen,  2008). These are the complaints that tend to stymie customer frequent purchase  and  loyalty  to  any  of  the  network  providers  in Nigeria as their services are perceived to possess little or no competitive  differentiation  advantage.   However, understanding customer’s satisfaction is a serious issue and has poses a serious threat that requires urgent attention to restore the image and reputation of telecommunication services providers that had already been battered in the minds of Nigerian subscribers. 

1.3 Objectives of the Study

 The purpose of this  study  is  to  understand customers satisfaction through quality service delivery. Thus, the specific objectives of this study are:

1.     To assess the relationship between customers satisfaction and quality service delivery.

2.     To examine the factors influencing the choice of service providers by customers. 

3.     To identify the major factors affecting customer satisfaction in the telecommunication industry.

4.     To  highlight  mechanisms  to  continuously  improve  the  level  of  service  quality and customer satisfaction within the Nigerian telecommunication providers.

1.4 Research Questions

1.     Is there a relationship between customers’ satisfaction and quality service delivery?

2.     What are the factors influencing the choice of service providers by customers. 

3.     What are the major factors affecting customer satisfaction in the telecommunication industry.

4.     Are there  mechanisms  to  continuously  improve  the  level  of  service  quality and customer satisfaction within the Nigerian telecommunication providers.

1.5 Research Hypotheses

H01: there is no significant relationship between customer satisfaction and quality service delivery among telecommunication companies in Nigeria.

H02:  There is no significant relationship between quality service delivery and choice of telecommunication service provider.

1.6 Significance of the Study

The major importance of this study, is to explore and understand the relationship, if any, between quality services delivery and the  satisfaction  of  its  customers,  whose  outcome  would  help  in  strategically  resolving  the problems that this research would unfold, and thus help increase the company’s profitability and also help customers to choose the best service providers.

This research will also uncover the dimensions of quality service delivery that customers considered as significant.  This will provide  empirical  support  for  management  strategic  decisions  in several critical areas of their operations. This study will also stand as a means of help to telecommunication subscribers as to know which telecommunication company they can subscribe to and also enlighten the telecommunication companies on the possible ways through which they can improve their service to meet their customers demand, thus satisfying them. This research would serve as a major benefits to Nigerian telecommunication company and Other Business Organisations. Wherever  possible, the  results  of  this  study  will  help  policy  makers  within telecommunication providers; To  implement  strategies  that would maintain  and  enhance  service  quality  that meets and exceeds customer expectations. To develop effective and consistent service standards to relevant stakeholders. To understand  the  importance  of service  quality  in  building  competitiveness and profitable customer satisfaction within the telecommunications 

1.7 Scope of the Study

This study shall be delimited to Olabisi Onabanjo University undergraduates Students, Ago Iwoye.

1.8 Methodology Study Area

 The study was undertaken in Olabisi Onabanjo University, Ago-Iwoye, Ogun State. The research designs under this methodology will be survey design, according to (Asika 1991) Research design is the structuring of investigation aimed at identifying variables and the relationship to one another. This is used for the purpose of obtaining data to enable the researcher to test hypothesis and answer the research question. The research population will comprise undergraduates in Olabisi Onabanjo University.

 Instruments of Data Collection

Primary and secondary data were employed to carry out the findings of this research. The primary data will be a self constructed questionnaire that was used as the research instrument for data collection and the secondary data will be journals etc.

Data Analysis

Descriptive statistical techniques such as percentages, frequencies count and regression analysis was used. 

1.9 Operational Definition of Terms

Quality Service: It is the comprehensive assessment or outlook of  overall  excellence  of services  being  provided  to  a  number  of  stakeholders  including  the organisation’s customers.

Customer Satisfaction: Customer is the most important stakeholder of an organization who  provides  payment  in  exchange  for  the  product  offering  provided  to  a  person  by  the organisation with an objective of fulfilling a need and ultimately maximise satisfaction of the same.

Telecommunication companies: These are the companies that deal with the aspect of transferring communication through the provision of services to their customers.

1.10 Organization of the Study

This  research  study consists  of  five  chapters  and  the  organisation  and  outline  of  this study is as follows:

Chapter one examines the introductory aspect of the study.

Chapter two examines the obtainable literature on the topic and how the research fits into the gaps.  Chapter  three  outlines  the  research  methodologies  and  describes  the  study  area  and parameters. It is also in this chapter where the research strategy is also outlined. It covers the selection  of  the  sample,  sampling  techniques,  instrument  design,  data  collection  process, extensive  research  approach  and  the  overall  methodology  employed  in  this  study  including the research’s limitations. The fourth chapter presents  the  analysis  of  data collected.  It also includes an in depth discussion of the results and chapter five gives the summary, conclusion and recommendation of the study.