LAHORE GARRISON UNIVERSITY Area of Research: MarketingResearch Topic: Impactof service quality on customer satisfactionSubmitted By:MirzaHaris BaigRoll No:F16-MBA-009Submitted To:Ms.Afaf KhalidCourse Title: BusinessResearch MethodsDepartment:BusinessAdministration (MBA 3) Abstract:This study investigates the relationship between servicequality and customer satisfaction in the telecommunication industry. A total of50 respondents participated in the study. Research questions and objectiveswere set, alongside the hypotheses that were formulated and tested. Descriptivestatistics comprising the simple percentage and tables were used for datapresentation and analysis.
Regression analysis and Pearson correlationcoefficient were used to testing our hypotheses. The study tells that servicequality has effect on customer satisfaction and that there is a positiverelationship between service quality and customer satisfaction. The researcherconcluded by recommending that organizations should focus more attention onservice quality, because of its effects on customer satisfaction. To ensurethat customer satisfaction level is high, organization must first of all knowthe expectations of the customers and how they can meet such expectations. Ithas been exposed that it costs to attract new customer than to retain existingones. It is also recommended that organizations should welcome suggestions fromcustomers and more programmed should be designed to measure service quality andcustomer satisfaction better.
Introduction:Telecommunication service providers(TSPs) are of paramount importance to both developed and emerging economies InMalaysia, TSPs are projected to contribute greatly to the national goal ofachieving status as a developed nation by the year 2020. Customer satisfactionis defined as “the number of customers, or percentage of total customers,whose reported experience with a firm, its products, or its services (ratings)exceeds specified satisfaction goal. Today, telecommunication is an inseparablepart of our everyday life. Besides telephone, now-a-days mobile phones areplaying a great role to communicate from one place to another place.
The mobiletelecommunication is one of the fastest growing industrial sectors inBangladesh. It is projected that Bangladesh will be the third biggest telecommarket in Asia after China and India (Uddin, Akhter 2012). The competition inthis sector has become very intense and the companies’ need for survival, inthese very difficult conditions that dominate in this sector, forces them tosearch for ways to attract and retain customers (Vranakis et al. 2012).
Thepurpose of this research is to know the impact of service quality on customersatisfaction in tele communication industries. Literature review:In previous researches, meeting andexceeding expectations of clients and customers is a perspective that hasgained most attraction. This concept is all inclusive and cuts across servicedomains, but expectations change and experiences with alternate serviceproviders could shape the customers’ expectations. Customer Satisfaction:Customer satisfaction is a personalfeeling of either pleasure or disappointment resulting from the evaluation ofservices provided by an organization to an individual in relation to expectations.Admittedly, satisfaction is more complex to define to accurately fit everycontext and measure. In the words of Oliver (1997), everyone knows whatsatisfaction is until asked to give a definition. Then it seems, nobodyknows. From marketing perspectives, customer satisfaction has multi-dimensionality.
Satisfaction can be related to attribute-specific and overall performance. Itis attribute-specific where it relates to a specific product or service (Cronin& Taylor, 1992). For example, with mobile telecommunication, satisfactioncan be related to a specific attribute such as: Multimedia Messaging Service,Mobile TV or Mobile Internet Service or satisfaction with the voice quality,picture quality, speed, and the like.The object of customer satisfaction may bevaried and can be related to different dimensions of multiple experiences withproduct/service provider (Surenshchandar et al. 2002 cited in Satari, 2007).
Customer satisfaction can be defined as it is a judgmental level of product orservices that provides a pleasurable level of consumption. Customer satisfactionrelated to fulfilling customer requirement and providing them long lasting benefits(Syed Saad Andaleeb, 2006). Customer satisfaction as a judgment that a productor service feature, or the product or service itself, provides a pleasurablelevel of consumption related fulfillment (Oliver 1997). Jones, Sasser (1995) mentioned that achievingcustomer satisfaction is the main goal for most service firms today.Service quality:Service quality and customersatisfaction are two distinctive constructs but highly correlated. It isconcluded that to achieve high customer satisfaction a business must develop ahigh perception level about service quality (G.
S. Suresh chandar, 2002). Gronroos(1984) defined service quality as the outcome of the evaluation process wherethe customer compares his expectation with the service he perceives during theservice encounter. Similarly, Parasuraman et al. (1988) delineated servicequality as the consumer’s overall evaluation of a specific service firm thatresult from comparing that firm performance with the customer generalexpectations of how firms in that industry should perform.
Nowadays, deliveringquality service is an integral part of an ongoing strategy of most businessfirms and constitutes an essential ingredient for success and survival in thepresent day’s competitive environment (Ulwick, Bettencourt 2008).Servicequality has been the subject of considerable interest by both practitioners andresearchers in recent years (Henderson 2013).When customers get expectedservice quality, it leads to higher satisfaction (Hutchinson et al. 2009).Quality is a multi-dimensional phenomenon (Mosahab et al. 2010). Thus, reachingthe service quality without distinguishing the important aspects of quality isimpossible. Service quality can be described as a rationale of differencesbetween expectation and competence along the important quality dimensions.
(V.A. Parasuraman A.
Z., 1985) identified tenrequirements useful for customers’ evaluation of the quality of services; fewof them are reliability, responsiveness understanding the customers and serviceaccessibility.Reliability: Ability to perform the promised servicedependably and accurately.Responsiveness: Willingness to help customers and provideprompt service.
Frame work HypothesisH1: Servicequality has a significant impact on customer satisfactionResearch Questions1) What is the impact of service quality oncustomer satisfaction in telecommunication industry?Methodology:This section focuses on the research techniques employed in this study. Itconsists of research design, research population, sample and samplingtechniques, data collection instruments, administration of the instrument,validity and reliability of the research instrument, method of data analysisand problems encountered on the field in the course of this study. For thepurpose of this study, survey research design was adopted. This is becausesurvey research design helps in collecting data from members of a population inother to determine their current status in that population with respect to oneor more variables. In selecting our sample for this study, a simple randomsampling method was used. This ensures that every member of the population hasequal chance of being part of the sample. Primary data collected through questionnaires were used in this study.
.The population consists of the student of the Lahore Garrison University. Thesample size of our population is 360 but due to some limitation I only choosethe 50 students of Lahore Garrison University. The questionnaire were given toindividual respondent who were given time to complete them objectively andhonestly.The responses of student were use for analysis.
Analysis of data wasdone through appropriate descriptive statistics procedure while the hypotheseswere tested with the help of linear regression correlation analysis. . In thisstudy the coefficient alpha (Cronbach Alpha) was used to test the reliabilityof the measurement scale. The Cronbach alpha for this study is 0.650 forcustomer satisfaction and .624 is reliability of service quality.
This impliesthat data collected are reliableReliability of C.S Crobach Alpha No of items .650 4 Reliability of S.Q Crobach Alpha No of items .624 8 Data analysis anddiscussion: Table1: Gender Distribution of Respondents Gender Frequency Percent Male 24 50% Female 24 50% Total 50 100% Table 1 above shows the gender distribution of therespondent of the researcher’s questionnaires which indicates that malerespondents were 24 (50%), while female respondent were 24 (50%). This impliesthat there is equal distribution in male and female respondent.
Table 2: Frequencies ofrespondent Frequency Percent Strongly disagree 1 2 Disagree 1 2 Neutral 9 19 Agree 24 50 Strongly agree 13 27 Total 48 100 This table shows that majority of the respondents (50%)agree the statement, 19% prefers neutral, 2% preferred disagree and 2 percentpreferred strongly disagree while remaining respondents 27% preferred Stronglyagree. Table 3:Are you Satisfiedfrom customer care service of your telecommunication Company? Frequency Percent Strongly disagree Disagree 2 4.2 Neutral 9 18.8 Agree 23 47.
9 Strongly agree 14 29.2 Total 48 100 This table shows that majority of the respondents (47%)agree the statement, 18% preferred neutral, 4.2% preferred disagree and whileremaining respondents 29.2% preferred Strongly agree. Frequency Percent Strongly disagree Disagree Neutral 14 29.2 Agree 17 35.4 Strongly agree 17 35.
4 Total 48 100 Table 4:Are You Satisfied from customized service? This table shows that majority of the respondents (35.4%)agree the statement, 29.2% preferred neutral, while remaining respondents 35.
4%preferred Strongly agree. Table 5: Are you Satisfied from messagesregarding new plans? This table shows that majority of the respondents (47.9%)agree the statement, 27.
1% preferred neutral, 6.3% preferred disagree, whileremaining respondents 18.8% preferred Strongly agree. Table 6: When a customer has a problem, service provider shouldshow a sincere interest in solving it? Frequency Percent Strongly disagree Disagree 3 6.3 Neutral 13 27.1 Agree 23 47.9 Strongly agree 9 18.
8 Total 48 100 Frequency Percent Strongly disagree 3 6.3 Disagree 0 0 Neutral 8 16.7 Agree 17 35.4 Strongly agree 20 41.
7 Total 48 100 This table shows that majority of the respondents (35.4%)agree the statement, 16.7% preferred neutral, 6.
3% preferred strongly disagreeand while remaining respondents 41.7% preferred Strongly agree. Frequency Percent Strongly disagree Disagree Neutral 8 16.
7 Agree 24 50 Strongly agree 16 33.3 Total 48 100 Table 7: They should provide their services at the time they promise to do so? This table shows that majority of the respondents (50%)agree the statement, 16.7% preferred neutral, while remaining respondents 3.3%preferred Strongly agree. Table 8: Cooperativebehavior or courtesy behavior of your service provider? Frequency Percent Strongly disagree 2 4.2 Disagree Neutral 12 25 Agree 24 50 Strongly agree 10 20.8 Total 48 100 This table shows that majority of the respondents (50%)agree the statement,25% preferred neutral, 2% preferred S. disagree and whileremaining respondents 20.
8% preferred Strongly agree. Table 9: Personalattention and proper time given by attendant? Frequency Percent Strongly disagree 0 0 Disagree 3 6.0 Neutral 15 30.0 Agree 28 56.
0 Strongly agree 4 8.0 Total 50 100.0 This table shows that majority of the respondents (56%)agree the statement that their service provider give personal attention andproper time. 30% preferred neutral, 6% preferred disagree and while remainingrespondents 8% preferred Strongly agree.
Table 10: Employees shouldmake information easily obtainable by the customers? Frequency Percent Strongly disagree 0 0 Disagree 0 0 Neutral 9 18.0 Agree 37 74.0 Strongly agree 4 8.0 Total 50 100.0 This table shows that majority of the respondents (74%)agree the statement that Employees should make information easily obtainable bythe customers, 18% preferred neutral, while remaining respondents 8% preferredStrongly agree. Table 11: Employees in a telecommunication should never be toobusy to respond to customers’ requests.
? Frequency Percent Strongly disagree 1 2.0 Disagree 6 12.0 Neutral 13 26.0 Agree 21 42.0 Strongly agree 9 18.
0 Total 50 100.0 This table shows that majority of the respondents (42%)agree the statement that Employees in a telecommunication should never be toobusy to respond to customers’ requests, 26% preferred neutral, 12% preferreddisagree and 2% preferred strongly disagree, while remaining respondents 18%preferred Strongly agree. Frequency Percent Strongly disagree 2 4.0 Disagree 1 2.
0 Neutral 8 16.0 Agree 34 68.0 Strongly agree 5 10.
0 Total 50 100.0 Table 12: Service provider should have the knowledge to answer customers’questions This table shows that majority of the respondents (68%)agree the statement that Service provider should have the knowledge to answercustomers. questions 16% preferred neutral, 2% preferred disagree and 4%preferred strongly disagree while remaining respondents 10% preferred Stronglyagree.
Table 13: The employees shouldunderstand the specific needs of their customers? Frequency Percent Strongly disagree 3 6.0 Disagree 0 0 Neutral 5 10.0 Agree 36 72.0 Strongly agree 6 12.0 Total 50 100.0 This table shows that majority of the respondents (72%)agree the statement that the employees should understand the specific needs oftheir customers, 10% preferred neutral, 6% preferred strongly disagree whileremaining respondents 12% preferred Strongly agree.
DescriptiveStatistics:Table 14: Variable N Mean Std. Deviation C.S (dv) 50 14.
30 2.32 S. Q (iv) 50 30 3.19 This table show the mean and std.deviation of dependent and independent variable. The mean of Customersatisfaction is 14.
30 and std. deviation is 2.32. In addition, the mean ofservice quality is 30 and std.
deviation is 3.19.Correlation among variable:Table 15: C.S S.Q Pearson correlation Sig (two tailed) N 1 50 .547** .000 50 Pearson correlation Sig (two tailed) N .547** .
000 50 1 50 ** correlation is significant atthe 0.01 level (2 tailed)Bivariate correlation is used to know the nature and significant levelof the variable and to know the relationship of the variable. That’s whyresearcher used to bivariate correlation to compute pearson’ correlation. Thistable show that there is a positive significant relationship between c.s ands.
q r=1 and sig=.000 which indicate the positive significant correlationbetween these two variables. Table 16: ANOVA Model Sum of square Df Mean of square F Sig Regression Residual Total 79.4 186.3 265.
7 I 48 49 79.40 3.88 20.451 .
000 The table show that the independentvariable has significant relationship with customer satisfaction. F=20.451 andsig =.000 Table 17: Coefficient Model Unstandardized Coefficient Standardized coefficient t Sig B Std.
Error Beta 1 constant S.Q 2.408 .
399 2.662 .088 .547 .
904 4.522 .370 .
000 C.S (d.v)Table was made determine whether service quality has aneffect on customer satisfaction. The result of regression analysis shows that thereis significant relationship between service quality and customer satisfaction(b=.399) and sig=.
000 so that the first hypothesis is accepted becausesignificant value of result is less than 0.05 Conclusion and Recommendation:The generalobjective of this study is to determine the relationship between servicequality and customer satisfaction, and also investigate the strategies utilisedby an organisation to deliver exceptional service quality and customersatisfaction through customer service. These objectives were tested by Onehypotheses. It is also clear from this research that customer service hasimpact on service quality perception and customer satisfaction.Telecommunicationcompanies should improve its care service about customer, since it is the mostpreferred form of customer service. Telecommunicationcompanies should also ensure that staffs are knowledgeable of customers’requests and problems. Telecommunicationcompany staff should always listen to what your customer wants becausecustomers don’t buy products or services, they sometimes buy solutions toproblems. Telecommunicationcommunication staff should encourage and welcome suggestions on improvingcustomer satisfaction Many programsshould be designed to measure service quality and customer satisfaction, andalso to improve customer service.
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