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IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN TELECOM SECTOR OF PAKISTAN

Research proposal for B.COM(HONS) ASSIGNMENT to be presented at the HAILEY COLLEGE OF COMMERCE UNIVERSITY OF THE PUNJAB

MUHAMMAD BILAL SATTAR SECTION:D B.COM(HONS) MORNING BC08-208 CELL NO:0345-4092517 EMAIL:bilal.sattar@yahoo.com

Statement of Topic
At present the customer satisfaction is being measured in telecommunication sector by using the five dimensions of service quality as telecommunication is service sector so customer satisfaction depends on service quality, this research would focus on CHURN Management and customer relationship management (CRM) and focus on customer retention through customer care, cost & billing and network quality.

Aim of Study
The main aim of the study is to retain customers through churn management while adopting CRM and it can be done through customer care, cost & billing and through providing quality network. The study aims to know the relationship b/w customer satisfaction and perceived service quality and to determine which aspect of service quality affects customer satisfaction.

Introduction
Every organization strives for long term success. There are various factors that contribute to organization success. Quality is considered to be main element of customer satisfaction in both manufacturing and service quality. Henkel et al(2006) found that satisfied customer of telecom sector have high extent of usage and intention to repurchase in future. (ojo, 2010)Found that importance can be realized with the fact that organization should focus on service quality. The five dimensions identified as part of construct service quality are tangibles, empathy, reliability, responsiveness and assurance (Parasuraman & grewal, 2000). The attainment of quality in products and services has become a pivotal concern of the 1980s. While quality in tangible goods has been described and measured by marketers, quality in services is largely undefined and unsearched. The authors attempt to rectify this situation by reporting the insights obtained in an extensive exploratory investigation of quality in four service businesses and by developing a model of service quality. Propositions and recommendations to stimulate future research about service quality are offered (parasuraman, zeithaml, & Barry, 1985). The moderating role of switching costs in the customer satisfaction-loyalty link; and to identify customer segments and then analyze the heterogeneity in the satisfaction-loyalty link among the different segments (Lee, Lee, & Feick, 2001) The conceptualization and measurement of service quality and the relationships between service quality, consumer satisfaction, and purchase suggests that the current operationalization of service quality mix up satisfaction and attitude The results suggest that (1) a performance-based measure of service quality may be an improved means of measuring the service quality concept, (2) service quality is an originator of consumer satisfaction, (3) consumer satisfaction has a significant effect on purchase

intentions, and (4) service quality has less effect on purchase intentions than does consumer satisfaction (cronin & taylor, 1992). the relationship between service quality customer relationships and customer loyalty and retention using evidence from the UK banking sector and its small business customers found that investment in the development of service quality and customer relationships is the belief that such investments will enhance loyalty, retention and profitability. (Ennew & Binks, 1996)

Literature Review
(Joshi, Khurana, & Khurana, 2010) found that the dimensions of service quality that have significant impact on customer satisfaction they also found that network quality also seems to be most important dimension influencing customer satisfaction. (Ojo, 2010) found that service quality has impact on customer satisfaction and there is positive relationship between service quality and customer satisfaction he also found that organization should first derive the expectations of customers regarding service quality and their suggestions should be taken into account. ( Butt & Run, 2009) found that price quality usage and service support impacts customers satisfaction and is affected by the signal quality network coverage and off-net charges are also responsible for customer satisfaction and the coverage in term of number of cities. ( Ahmad, Ahmed, Nawaz, Usman, Shaukat, & Ahmad, 2010) found that five dimensions of service quality determines the retention intention of customers with the quality offered. (Analytic Network Process Analysis of an Indian Telecommunication Service Supply Chain: A Case Study, 2010) found that the dimensions of telecom service quality influenced in four perspectives including customer, internal business, innovation and learning & finance. ( Venkatesh, 2008) found that how service providers can fulfill the needs of customers and how to gain an edge in the telecom market of India and found that variety of services offered by the various players leads to switch over and churn. ( Paulrajan & Rajkumar, 2011) Found that price and quality are most influential factors in determining the selection of telecom service providers moreover communication quality, call services, facilities, price and customer care impacts the customer satisfaction. ( Oyeniyi & Abiodun, 2010) found that customer satisfaction positively affects the customer retention and switching cost affects the level of customer retention so the service quality of telecom sector will determine the switching cost of customers ( Ali, Ali, Waseemullah, Ahmed, & Akram, 2009)found that the determinants of customer satisfaction and customer retention and studied the variables like price, call clarity, satisfaction of customers and help that service providers will provide for maximizing the customer satisfaction. ( BHARGAVA, BHARDWAJ, & . RATHORE, 2010) found that six sigma model is an important tool for assessing the customer satisfaction that brings additional benefit to telecom industry and helps to adopt the best practice for service delivery, process optimization, continuous improvement, quality of service, process improvement payback maximization that leads to customer satisfaction ( Ismail, Abdullah, & Francis, 2009) found that there is close relation between service quality and customer satisfaction. ( Hemphill & Geursen, 2005)found that satisfaction and intention are generalizable and are closely related to each other. ( Yunus, Ismail, Juga, & Ishak, 2009) found that customer satisfaction is related with how organization respond to perceived value,how much reliable their services are and empathy and

assurance relation with customer satisfaction. ( ZAIM, TURKYILMAZ, TARIM, UCAR, & AKKAS, 2010) found that there is relationship between service quality customer satisfaction and customer loyalty.

Methodology
The mathematical and statistical techniques would be used to calculate the customer satisfaction and the sample of 500 university students is taken as youth is the major users of networks used in Pakistan. The mailed questionnaires and structured interviews are used as instruments of data collection.

Instruments and Measurements


Questionnaire will use dichotomous scale and five point lickert scale. The sampling technique used is non-probability sampling.

Bibliography
Ali, J. F., Ali, I., Waseemullah, Ahmed, I., & Akram, M. (2009). DITERMINANTS OF CONSUMER RETENTION IN CELLULAR INDUSTRY OF PAKISTAN. CBRC. Lahore. BHARGAVA, M. M., BHARDWAJ, D. A., & . RATHORE, P. A. (2010). Six Sigma Methodology Utilization in Telecom Sector for Quality Improvement A DMAIC Process. International Journal of Engineering Science and Technology, 2(12), 7653-7659. Yunus, N. K., Ismail, A., Juga, Z. R., & Ishak, S. (2009). SERVICE QUALITY DIMENSIONS, PERCEIVE VALUE AND CUSTOMER SATISFACTION. IBEJ, 2(1), 1-18. Ahmad, Z., Ahmed, I., Nawaz, M. M., Usman, A., Shaukat, M. Z., & Ahmad, N. (2010). Impact of Service Quality of Short Messaging Service on Customers Retention; an Empirical Study of Cellular Companies of Pakistan. International Journal of Business and Management, 5(6). Butt, M. M., & Run, E. d. (2009). Modeling customer satisfaction in cellular phone services. Jurnal Kemanusiaan. Hemphill, E., & Geursen, G. (2005). Do Customer Value, Satisfaction And Service Quality Lead To Firm Value? ANZMAC. Ismail, A., Abdullah, M. M., & Francis, S. K. (2009). Exploring the relationships among service quality features,perceived value and customer satisfaction. journal of industrial engineering and management, 2(1), 230-250. Oyeniyi, J. O., & Abiodun, J. A. (2010, january). SWITCHING COST AND CUSTOMERS LOYALTY IN THE MOBILE PHONE MARKET: THE NIGERIAN EXPERIENCE. Business Intelligence Journal, 3(1). Paulrajan, R., & Rajkumar, H. (2011). Service Quality and Customers Preference of Cellular Mobile Service Providers. Journal of Technology Management & Innovation, 6(1). Venkatesh, S. (2008). Analysis of gaps in telecommunication services a study with respect to service gaps in fixed-line segment. Innovative Marketing, 4(1). ZAIM, S., TURKYILMAZ, A., TARIM, M., UCAR, B., & AKKAS, O. (2010, june). MEASURING CUSTOMER SATISFACTION IN TURKTELEKOM COMPANY USING STRUCTURAL EQUATION MODELING TECHNIQUE. Journal of Global Strategic Management. Analytic Network Process Analysis of an Indian Telecommunication Service Supply Chain: A Case Study (Pramod and Banwet: Analytic Network Process Analysis of an Indian Telecommunication Service Supply Chain: A Case Study 2010). Analytic Network Process Analysis of an Indian Telecommunication Service Supply Chain: A Case Study, 2(4) (Service Science Jan. 15, 2010).

cronin, j. j., & taylor, s. A. (1992). measuring service quality a reexaminatiion and extension. journal of marketing, 56, 55-68. Ennew, C. T., & Binks, M. R. (1996). The Impact of Service Quality and Service Characteristics on Customer Retention: Small Businesses and their Banks in the UK. British Journal of Management, 7(3), 219230. Joshi, D. S., Khurana, P., & Khurana, S. (2010). SERVICE QUALITY IN TELECOM SECTOR - A STUDY OF TELECOM SERVICE PROVIDERS OF CHANDIGARH. Sri Krishna International Research & Educational Consortium, 1(1). Lee, J., Lee, J., & Feick, L. (2001). The impact of switching costs on the customer satisfaction-loyalty link: mobile phone service in France. Journal of Services Marketing, 15(1), 35 - 48. ojo, o. (2010). The Relationship Between Service Quality and Customer Satisfaction in the Telecommunication Industry: Evidence From Nigeria. journal of Broad Research in Accounting, Negotiation, and Distribution, 1(1). Ojo, O. (2010). The Relationship Between Service Quality and Customer Satisfaction in the Telecommunication Industry: Evidence From Nigeria. Broad Research in Accounting, Negotiation, and Distribution, 1(1). Parasuraman, A., & grewal, d. (2000). the impact of technology on the quality vaue loyality chain. journal of the academy of marketing science, 28(1), 168-174. parasuraman, a., zeithaml, v. a., & Barry, L. L. (1985). a conceptual model of service quality and its implication for future. journal of marketing, 49, 41-50.

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