A Comparative Study of Telecommunication Service Quality and Customer Satisfaction Between NTC and Ncell in Nepal (original) (raw)
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Identification of factors responsible for customer satisfaction is a key concern of marketing scholars and marketers in now a days and it will remain in the future. There is considerable evidence that quality factors affecting customer satisfaction in numerous ways. However, this empirical study is initiated to find out what particular factors responsible for customer satisfaction in the mobile telecommunication industry in Bangladesh. 282 samples have been collected through structured questionnaire; study reveals that service innovativeness, service reliability, service competitiveness and service consistency have significant influence on making customer satisfied and the operator’s network/signal coverage, pricing, offering, fulfillment of customer demand, value added service, brand value and operators contribution for society have insignificant influences on making customer satisfied at five percent level of significant at multiple regression analysis. On the basis of these findings; study concludes that in promoting customer satisfaction mobile service providers should be concerned for factors responsible for insignificant influence on customer satisfaction and care of those factors have significant influence on promoting customer satisfaction in telecommunication industry in Bangladesh. Today, telecommunication is an inseparable part of our everyday life. Besides tele-phone, now-a-days mobile phones are playing a great role to communicate from one place to another place. The phone is not only used for making calls, among many other functions, it is used for communicating through text-messages, multi-media messages, as well as to connect us to the internet. The opportunities that lie in the telecom market seem endless and the growing demand for mobile telephony systems is creating a world-wide market. Actors in this industry are seeking the most profitable markets throughout the world (Hossain, Suchy 2013). The mobile telecommunication is one of the fastest growing industrial sectors in Bangladesh. It is projected that Bangladesh will be the third biggest telecom market in Asia after China and India (Uddin, Akhter 2012). The competition in this sector has become very intense and the companies’ need for survival, in these very difficult conditions that dominate in this sector, forces them to search for ways to attract and retain customers (Vranakis et al. 2012). The increases in the number of subscribers on the various operators in Bangladesh have brought with it the challenges of customer satisfaction. Though the industry is relatively new yet the growth is much faster in comparison to other industries due to aggressive market oriented business strategy. The mobile telecommunication industry of Bangladesh is going towards high market penetration rate. Many foreign investors are now interested to do business in telecom sector in Bangladesh which reveals that Bangladesh has become a significant hub for telecoms. Bangladesh has currently six mobile phone operators in Mobile Telecommunication Industry (BTRC 2014). This industry has reached maturity stage in telecommunication business in 2G network services. Mobile telecommunication industry of Bangladesh has rapidly expanded in recent years. The total number of Mobile Phone subscribers has reached 111.797 million at the end of October 2013 (BTRC 2014). Table 1. Market Share Operators Active Subscribers Percentage Grameen Phone Ltd. (GP) 46.663 41.74 Banglalink Digital Communications Limited 28.387 25.39 Robi Axiata Limited (Robi) 24.835 22.22 Airtel Bangladesh Limited (Airtel) 8.229 7.36 Pacific Bangladesh Telecom Limited (Citycell) 1.344 1.20 Teletalk Bangladesh Ltd. (Teletalk) 2.340 2.09 Total 111.797 100.00 Source: BTRC, January 2014. Table 1 shows Grameenphone, the largest mobile operator in the country, reached 46.663 million at October 2013 at the rate of 41.74% market share, Banglalink ac-quired 28.387 million subscribers October 2013 at the rate of 25.39% market share, Robi captured 24.835 million subscribers October 2013 at the rate of 22.22% market share, Airtel captured 8.229 million subscribers October 2013 at the rate of 7.36% market share, Citycell maintained 1.344 million subscribers October 2013 at the rate of 1.20% market share and Teletalk captured 2.340 million subscribers October 2013 at the rate of 2.09% market share. The Bangladesh Telecommunication Regulatory Commission (BTRC) gave the ap-proval of the 3G service packages for the three private operators in conformity with that of the state-owned telecom operator, Teletalk. The operator bought spectrum of 2100 bands with the cost of US$ 21 million per megahertz (MHz) spectrum. Only GP bought 10 MHz spectrum while others bought 5MHz spectrum each for the 3G service (BTRC 2014). The new era is introducing, advancement in mobile telecommunication appeared. Mobile operators in Bangladesh currently provide voice call, voice message, SMS, MMS, internet service, international roaming and information services e.g., news, stock quotes, weather, etc. Operators are enthusiastic to promote quality of ser-vices for customer satisfaction at present and near the future. In spite of these outstanding and remarkable improvements in accessibility of mo-bile services in Bangladesh; there are higher rate of customer complaints on the high rate of tariff, interrupted voice signals, irresponsible to customer preference, poor cus-tomer service, connection errors, poor interconnect with other networks. There is therefore the operators need to evaluate the determinants of customer satisfaction in the mobile telecommunication industry in Bangladesh. The customer remains the key concern of marketer and marketing manager now a days and it will remain the future; because customer performs a key role in business, without customer business is impossible. It is customer for which business is created. There are considerable evidences that higher customer satisfaction leads to higher profitability in business. In today’s competitive business; marketing manager concern for attracting, developing and maintaining customers through quality of customer services that of the competitors do. Therefore, this study is initiated to investigate respondents demographic, to investi-gate user’s value added service interface, to identify the factors (service innovative-ness, service reliability, service competitiveness, service consistency, the operator’s network/signal coverage, pricing, offering, fulfillment of customer demand, value added service, brand value and operators contribution for society) responsible for cus-tomer satisfaction in mobile telecommunication industry in Bangladesh and finally provides some policy implications on the basis of findings of the study. Creating satisfied and loyal customers is a key concern of marketers and marking managers in now a days and it will remain in the future. It is well accepted that customer satisfaction is both a goal and a marketing tool for customer-centered companies (Kotler, Keller 2012). Customers’ satisfaction with their purchase is a significant factor that leads business to success. In recent times, customer satisfaction has gained new attention within the context of the paradigm shift from transactional marketing to relationship marketing (Sheth, Parvatiyar 1994). Organizations can accomplish customer satisfaction by satisfying their customers’ needs and wants (LaBarbera, Mazursky 1983). Customer satisfaction as a judgment that a product or service feature, or the product or service itself, provides a pleasurable level of consumption related fulfillment (Oliver 1997). In general satisfaction is a person’s feelings of pleasure or disappointment that result from comparing a product’s perceived performance or outcome to the expectation (Oliver, Richard 2006). If the performance falls short of expectations, the customer is dissatisfied. If the performance matches the expectations the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied and delighted (Fournier, Mick 1999). In case of mobile commerce, customer satisfaction is customer’s post-purchase appraisal and emotional response or reaction to the overall product or service, familiarity in a mobile commerce environment (Lin, Wang 2006). Jones, Sasser (1995) mentioned that achieving customer satisfaction is the main goal for most service firms today. Increasing customer satisfaction has been shown to directly affect companies’ market’s hare, which leads to improved profits, positive recommendation, and lower marketing expenditures and greatly impact the corporate image and survival (Pizam, Ellis 1999). Better service quality results in enhanced customer satisfaction, which in turn leads to strong customer loyalty. It can be stated that customers, when satisfied with the services they have experienced, are more likely to establish loyalty (Taylor et al. 1993), resulting in repeat purchases (Fornell 1992) and favorable word-of-mouth (Halstead, Page 1992). In today’s dynamic business environment from the firm’s point of view, it is about building and sustaining a strong relationship with their customers by understanding the ingredients of customer satisfaction. The key to customer loyalty is customer satisfac-tion which largely depends on the service quality offered by service providing firms. Service quality and customer satisfaction have been identified as key elements of the service-profit chain (Heskett et al. 1997). Customer service quality is a significant source of distinctive competence and often considered a key success factor in sustain-ing competitive advantage in service industries (Palmer 2001). Nowadays, delivering quality service is an integral part of an ongoing strategy of most business firms and constitutes an essential ingredient for success and survival in the present day’s com-petitive environment (Ulwick, Bettencourt 2008).