Beruflich Dokumente
Kultur Dokumente
ACADEMIC SESSION
2008-2010
Submitted to:
Submitted By:-
Dr. Sadia Samar Ali Vineet
Kumar Sarawagi
The Analysts 1
Driver of Customer Satisfaction from the Indian Cellular Service Provider
The Analysts 2
Driver of Customer Satisfaction from the Indian Cellular Service Provider
ACKNOWLEDGMENT
Life is a process of accumulating and discharging debts, not all of those can be measured.
We cannot hope to discharge them with simple words of thanks but we can certainly
acknowledge them.
The Analysts.
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
TO WHOM SO EVER IT MAY CONCERN
DECLARATION
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
DATE:- ANALYSTS
PGDM
Institute of Management Studies
TABLE OF CONTENT
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
1. Abstract………………………………………………….…..…01
2. Introduction………………………………………………….02
3. Need and Objectives………………………………………03
4. Indian Cellular Profile……………………………………04
5. Description of the survey data and Methods…...05
6. Basic Format of the Research Study………………06
7. Literature Review…………………………………….07-12
8. Research Methodology……………………………..13-21
9. Conclusion…………………………………………..……….22
10. Limitations and Future Results……………………..23
11. References…………………………………………………...24
12. Annexure……………………………………………….25-30
13. Glossary of the Terms…………………………………..31
LIST OF EXHIBITS
LIST OF TABLES
02. Age of
respondent……………………………………………………………...13
ABSTRACT
The conditions for doing business are changing rapidly. In last few years the mobile
telecom market has witnessed a substantial growth and rapid changes globally as well as
domestically. Customer satisfaction is a critical issue in the success of any business
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
system, hence; one of the key challenges of this market is how they satisfy and retain their
customers and also manage service quality, which holds a significant importance to
customer satisfaction and their perceived performance. In order for companies to survive
and grow, they must find new ways of thinking, which has led to doing marketing
researches, especially those related to customer satisfaction.
This Project tries to find a model which can best describe the customer satisfaction
formation in mobile telecom sector and will apply and evaluate it in the Indian market of
this area. It will also study the dimensions of service quality on the perceived performance
of the customers in the market.
For doing so, a survey has been performed on customers of the Indian cellular service
provider, questionnaires were distributed among them and the results analyzed based upon
the proposed research questions and hypotheses, and finally the conclusions and
implications were made.
INTRODUCTION
Telecommunications companies also talk of their customers being their most important
assets, just like companies in other business domains. But rarely is this reflected in a
company's strategy and operations. The customers of telecom services, like cellular
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
services, are moving ahead with times and have started buying cellular services just like
daily household items such as toothpaste. Therefore, it is necessary in today's business
scenario to understand the fact that the idea of customers being a company's most
important assets is not just a management theory, but it is a very crucial economic fact. In
the current business scenario, the use of Customer Relationship Management (CRM) is
quite common and critical and customer retention is the primary goal in firms that practice
CRM. In the light of the importance of customer relationship and customer retention, it is
very crucial for the companies in any business domain to know what actually drives the
customer satisfaction. As the cellular industry in India is one of the fastest growing
sectors, it is important and interesting to explore the drivers of customer satisfaction in this
industry.
The study will contribute to the managerial decisions to be made by the cellular companies
of India, when they have to decide on the factors (with respect to service quality and
service features) that actually affect the satisfaction of customers and on the major areas
they have to focus on to get more number of satisfied customers. This becomes important
in the Indian scenario, as the churn rate of cellular users in India is 6 percent, which is one
of the highest in the world.
Telecommunications companies also talk of their customers being their most important
assets, just like companies in other business domains. But rarely is this reflected in a
company's strategy and operations. The customers of telecom services, like cellular
services, are moving ahead with times and have started buying cellular services just like
daily household items such as toothpaste. Therefore, it is necessary in today's business
scenario to understand the fact that the idea of customers being a company's most
important assets is not just a management theory, but it is a very crucial economic fact. In
the current business scenario, the use of Customer Relationship Management (CRM) is
quite common and critical and customer retention is the primary goal in firms that practice
CRM. In the light of the importance of customer relationship and customer retention, it is
very crucial for the companies in any business domain to know what actually drives the
customer satisfaction. As the cellular industry in India is one of the fastest growing
sectors, it is important and interesting to explore the drivers of customer satisfaction in this
industry.
Research has been done over the years, in different services sector to find out the drivers
of customer satisfaction with respect to service quality. However, very few studies have
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
taken into consideration the service features. Also, hardly there is any study that has been
done on the cellular service industry, which has considered both service quality and
features together as drivers of customer satisfaction. As such, there is a need for
conducting such a study in the Indian scenario. Therefore, this study explores the variables
of service quality and service features with regard to Indian cellular services, and the two-
fold objective of this study is to find out the underlying constructs of these variables from
the cellular users' perspective, in the light of the users' experience in using the services of a
cellular company, and then study the impact of these underlying factors on customer
satisfaction.
The study will contribute to the managerial decisions to be made by the cellular companies
of India, when they have to decide on the factors (with respect to service quality and
service features) that actually affect the satisfaction of customers and on the major areas
they have to focus on to get more number of satisfied customers. This becomes important
in the Indian scenario, as the churn rate of cellular users in India is 6 percent, which is one
of the highest in the world.
The cellular industry all over the world has been witnessing high growth rates in
subscriber base in recent years. For the developing countries (like India), in particular,
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
cellular services are becoming a very significant proportion of the overall telecom
infrastructure, which can be proved easily as we look at the tele density of India19.86
percent or 225.21 million as on June, 2007 (landline40.08 million and cellular185.13
million). In fact, India is one of the fastest growing wireless markets in the world, and the
government had set a target of 250 million subscribers and 22 percent tele density in India
by the end of 2007 with a focused development plan.
Indian telecom sector had witnessed a very slow growth during the last century it was the
era of landline connections under the monopoly of the department of telecommunications,
Government of India. It started picking up only after 1995 when the first competitive
regime was opened with the participation of private operators in the field of cellular
mobile telephony. It witnessed a tremendous growth (50 percent) in the year 2006. During
2006, India exceeded 100 million GSM mobile subscribers target and became the fifth
nation to have achieved this benchmark after China, Japan, the US, and Russia.
Continuous reduction in tariffs and improved affordability of handsets and services have
also contributed to the rapid growth in the number of mobile subscribers. However, the
reduction in tariffs has brought down the Average Revenue Per User (ARPU) of the
cellular operators; as reported by different sources (TRAI, Voice and Data, other market
research agencies) making the control of churn and holding on to the satisfied customers
very important.
At present, the Indian cellular industry is dominated by some major players. The market
shares of these major players at the end of the financial year 2006-07 are: Bharti Airtel
(23.7 percent), BSNL (17.8 percent), Reliance (17.7 percent), Hutch (16.8 percent), Idea
(8.9 percent), Tata Teleservices (7.3 percent) and the remaining 7.8 percent is shared by
six other players, namely, Aircel, MTNL, Spice, BPL, HFCL, and Shyam (as reported in
Voice and Data, July 2007). In terms of the presence in number of circles, Bharti and
Reliance are present in 23 circles, followed by BSNL in 21 circles, Tata Tele in 20 circles,
Hutch in 22 circles, and Idea in 11 circles.
The questionnaires were prepared with 25 service-related variables, which determine the
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
customer satisfaction towards Indian cellular service provider. All the variables were to be
marked in a scale of 1 to 5, with 1 representing "strongly disagree" and 5 "strongly agree".
Besides, demographic data on age, sex, educational background, cellular usage time and
monthly expenses were also gathered. The data were collected by means of questionnaires
within IMS, Ghaziabad. The target mainly consists of the students of the PGDM first year.
The questionnaires were distributed to the 100 students and 93 responses were received.
The data consisted of 93 questionnaires, of which 61 were from male students and 32 from
female students.
To analyze the data collected, SPSS 15.0 for windows was used. The data on 25 services
related variables was reduced through factor analysis. We found that the eight factors are
playing very important role in the customer satisfaction from the Indian cellular service
provider. Almost all the respondents gave importance to the Network qualities.
This study follows the same format as in a study done by Levesque and McDougall (1996)
in the context of retail banking services. The study explores the determinants of customer
satisfaction in retail banking by considering several variables related to service quality,
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
service features, and customer satisfaction and future intentions. A factor analysis was
conducted on the service quality and service features variables followed by a regression
analysis conducted with these factors (relational performance, core performance, and
features) as independent variables and customer satisfaction, recommendation and
willingness to switch as dependent variables. R2 for customer satisfaction model was 0.71
with all the factors affecting satisfaction significantly; R2 for recommendation model was
0.57 again with all the factors affecting recommendation significantly although relational
performance was affected more; R2 for switching model was 0.29 with only core
performance factor affecting the willingness to switch significantly. A similar procedure
will be followed in this study for the Indian cellular services.
07.LITERATURE REVIEW
Danaher and Gallagher (1997) have conducted a study on Telecom New Zealand's
International Directory Services where the factors of friendly and competent were found to
affect the overall service quality more than other parameters (factors) of clear voice or
time taken to respond by an operator with the help of regression analysis (R2 - 0.52).
Athanassopoulos and Iliakopoulos' (2003) study on residential customers of a European
telecommunication company yielded the result of customer perceived performance
(satisfaction, recommendation to others, relationship, and value for money combined)
being affected by product performance satisfaction, directory enquiries, branch network,
billing, and corporate image in case of no faults; similarly for customers with fault repair
incidents, branch network is not affecting customer perceived performance. Aydin and
Ozer (2005) have studied the effects of service quality, perceived value, customer
expectations, and complaint handling on customer satisfaction with the use of Scanning
Electron Microscope (SEM), with the results showing that service quality, customer
expectations and complaint handling are affecting customer satisfaction, with the effect of
quality being the strongest. A study on Korean mobile telecommunication services (Kim et
al., 2004) has analyzed the effect of different service features and switching barrier on
customer satisfaction and loyalty using SEM. The results indicated that customer
satisfaction is affected by call quality; value added services, and customer support, with
both customer satisfaction and switching barrier affecting customer loyalty. So, all these
studies have looked at different facets of service quality or service features affecting
customer satisfaction, but not both together.
As cellular service is basically a service and not a product, it is also necessary to explore
the studies done in other service sectors regarding the relation of service quality and
features with customer satisfaction, as these studies will help in extracting the different
variables regarding service quality, service features, and customer satisfaction. Cronin et
al. (2000) have considered several service industries such as sports, entertainment,
healthcare, long distance carriers, and fast food to explore the effect of service quality on
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
customer satisfaction and behavioral intentions using SEM. They concluded that sacrifice
and service quality affect service value, and service value and service quality affect
satisfaction, while behavioral intentions are affected by service quality, service value and
satisfaction. Fornell (1992) has considered around 30 different industries in Sweden to
conclude that customer satisfaction is a function of pre-purchase expectations and post-
purchase perceived performance, while loyalty is a function of customer satisfaction,
switching barriers, and complaints. Caruana (2002) conducted a study of retail banking
customers in Malta to study the effect of service quality on satisfaction and loyalty to
conclude that service quality affects customer satisfaction which in turn affects customer
loyalty. Krepapa et al. (2003) have concluded in their study on corporate banking
customers that it is the customers' perception of company's market orientation and the gap
between customers' perception of company's market orientation and service provider's
perception of company's market orientation which affect customer satisfaction.
Host and Andersen (2004) used a sample of mortgage credit companies in Denmark to
study the effect of service quality variables and price variable on customer satisfaction; the
study indicated assurance, reliability, and price affect customer satisfaction, which in turn
affects loyalty and willingness to recommend. Ndubisi and Wah (2005) used factor and
discriminant analysis on the bank customers in Malaysia to find that the five key
dimensions of competence, communication, conflict handling, trust, and relationship
quality, discriminate between customers in terms of perceived relationship quality and
customer satisfaction, and overall bank-customer relationship quality discriminates
between satisfied and non-satisfied customers. Andaleeb (1998) studied the customer
satisfaction among hospital customers in Pennsylvania using the regression analysis (R2 -
0.63) and concluded that satisfaction is a function of communication, cost, facilities,
competence, and demeanor. McDougall and Levesque (2000) studied four services of
dentist, auto service (oil change and lubrication), restaurant, and hairstylist in Canada to
conclude that core service quality (the promise) and perceived value were the most
important drivers of customer satisfaction with relational service quality (the delivery) as a
significant but less important driver, and a direct link exists between customer satisfaction
and future intentions of loyalty and switching.
Sureshchandar et al. (2002) have conducted a study on the customers of 43 Indian banks to
conclude that from the customers' point of view there is a difference between the
constructs of service quality and customer satisfaction measured on core service, human
element of service delivery, tangibles, non-human element of service delivery and social
responsibility, although there is a high relationship (correlation) between service quality
and customer satisfaction. Gilbert et al.'s (2004) study on a cross-cultural comparison of
service satisfaction of five fast food establishments in four English-speaking countries of
Jamaica, the US, Scotland, and the Wales yielded two empirically derived, cross-cultural
fast-food customer satisfaction dimensions: satisfaction with the personal service and
satisfaction with the service setting. Olorunniwo and Hsu (2006) again worked on retail
banking customers to find that responsiveness, tangibility, reliability, knowledge, and
accessibility are the dimensions contributing significantly to service quality and
satisfaction. Sharma et al. (1999) studied three years' data of a Fortune 500 firm to develop
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
a framework for monitoring customer satisfaction and found that the factors affecting
customer satisfaction were installation, sales team leader, product, delivery, hardware
maintenance, software and technical support, business solution development, education,
cost of ownership and invoice. All these studies indicate that service quality variables
were mainly considered in previous researches to explore the drivers of customer
satisfaction and very few studies have looked at service features.
Operational Variables
Customer Satisfaction
There are lots of benefits of customer satisfaction it heightens customer loyalty and
prevents customer churn, lowers customers' price sensitivity, reduces the costs of failed
marketing and of new customer creation, and reduces operating costs due to increase in
customer number (Fornell, 1992). In general, customer is satisfied or dissatisfied from the
experience of their product or service usage and this experience becomes the measure of
satisfaction in the minds of the customers. For the purpose of this study, the variables
considered for measuring customer satisfaction are divided into three parts satisfaction
from usage (three variables overall customer satisfaction, closeness to expectations, and
rightness of decision in choosing the particular service provider), repeat buying intention
(one variable) and recommendation of service to others (one variable). Table 1 depicts
customer satisfaction variables.
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
Service Quality and Service Features
Previous studies have looked at different service quality and service feature variables in
different service industries, which have been considered for this study and are described in
detail as:
Service Quality
• The cellular company is trustworthy and its employees are believable and honest
(Cronin et al., 2000; and Caruana, 2002).
• The company fulfills its promises (Caruana, 2002; Sureshchandar et al., 2002; and
Host and Andersen, 2004).
• Employees are efficient and competent (knowledgeable and skillful) (Cronin et al.,
2000; Sureshchandar et al., 2002; and Host and Andersen, 2004).
• Employees are easily approachable (Danaher and Gallagher, 1997; and Cronin et
al., 2000).
• Employees are courteous, polite, and respectful (Danaher and Gallagher, 1997;
Cronin et al., 2000; Caruana, 2002; and Host and Andersen, 2004).
• Employees listen to customers and are willing to help (Cronin et al., 2000; Caruana,
2002; and Host and Andersen, 2004).
• Employees are pleasant, friendly, and caring (Danaher and Gallagher, 1997; and
Caruana, 2002).
• The company makes efforts to understand the specific needs of customers (Caruana,
2002; Sureshchandar et al., 2002; and Host and Andersen, 2004).
• The company provides individual and personal attention to the customers (Caruana,
2002; Johnson and Sirikit, 2002; and Sureshchandar et al., 2002).
• The company performs any service right the first time (Caruana, 2002;
Sureshchandar et al., 2002; and Host and Andersen, 2004).
• All the records are maintained accurately by the cellular company (Johnson and
Sirikit, 2002; Wang and Lo, 2002; and Lai et al., 2007)
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
• The company provides accurate and timely information (Ndubisi and Wah, 2005).
• The company is prompt in providing services (low waiting time and quick response)
(Danaher and Gallagher, 1997; Sureshchandar et al., 2002; Host and Andersen,
2004; and Olorunniwo and Hsu, 2006).
• When there are problems, the service provider is sympathetic and reassuring
(Johnson and Sirikit, 2002; Gilbert et al., 2004; and Lai et al., 2007).
• Employees in the offices are neat and clean (Cronin et al., 2000; Caruana, 2002; and
Host and Andersen, 2004).
• Physical facilities of offices are visually appealing (Caruana, 2002; Johnson and
Sirikit, 2002; and Host and Andersen, 2004).
Service Features
• The network is up-to-date and there is just low congestion problem (even in peak
traffic hours) (Johnson and Sirikit, 2002; Athanassopoulos and Iliakopoulos, 2003;
and Olorunniwo and Hsu, 2006).
• The call quality (voice clarity) is good and call drops are minimal (Athanassopoulos
and Iliakopoulos, 2003; and Kim et al., 2004).
• The coverage area of the company is wide (Kim et al., 2004; and Aydin and Ozer,
2005).
• The company has sufficient presence in different geographical areas through own
offices or dealers and franchises (Sureshchandar et al., 2002; and Aydin and Ozer,
2005).
• The operating hours are convenient for the customers (Johnson and Sirikit, 2002;
Wang and Lo, 2002; and Athanassopoulos and Iliakopoulos, 2003).
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
• The pricing of the services are reasonable and competitive (Gilbert et al., 2004; and
Host and Andersen, 2004).
• There is enough variety of pricing plans available (Sharma et al., 1999; Kim et al.,
2004).
• The range and variety of value added services (SMS, ring tones, etc.) provided are
comprehensive and competitive (Kim et al., 2004; and Aydin and Ozer, 2005).
• The billing is accurate and easy to understand (Levesque and McDougall, 1996; and
Sharma et al., 1999).
• The cellular company has reputation and good image (Aydin and Ozer, 2005).
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
08.RESEARCH METHODOLOGY
The study was exploratory in nature. Total population were Indian cellular user of Institute
of Management Studies, Ghaziabad. Sample size was 93 customers. Individual respondent
was the sampling unit. Since study includes the primary data so self designed
questionnaire was used for collecting response of the customer.
Tools Used For Data Analysis
1. Reliability (using KMO and Bartlett's Test of Sphericity) was applied to check the
reliability of the questionnaires.
2. Factor Analysis was used to find out the underlying factor.
Results and Discussions:
Reliability Test:
Reliability test was carried out using SPSS and the reliability test measure is given below:
The acquired number is bigger than 0.6 (0.692). So the data can be used for the further
analysis.
Demographic:
Table:2 Age of respondent:
AGE RESPONDENTS(in %)
18-20 1.08
20-22 45.16
22-24 43.01
24-26 6.45
> 26 4.3
The above table shows that the maximum number of respondents belong to the age group
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
of 20-22 year i.e 45.16 %. Minimum number of respondents is from age group of 18-20
years i.e 1.08 %.
Engineer 39.78
Science Graduate 25.81
Commerce Graduate 23.66
Arts Graduate 3.23
Others 7.53
The above table shows that the maximum nuber of repondents are Engineer and the
minimum number belongs to the respondent who has completed his Arts Graduate degree.
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
EXHIBIT: 3 Cellular usage of the respondents
Maximum number of repondent belongs to the Cellular Usage Time group of >5 years
(34.41%) followed by the Cellular Usage Time group of respondent belonging to 3-5 years
(29.03%).
Out of total 93 respondents 64.59% were male and 34.41 % are female respondent.
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
EXHIBIT: 5 Average monthly expense on Mobile of the respondents
Maximum number of repondent belongs to the Average Monthly Expenses (in Rs.) group
of Rs. > 800 (30.11%) followed by the Average Monthly Expenses (in Rs.) group of
respondent belonging to Rs. 400 - 600 (23.66%).
Factor Analysis:
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
Since there were many factors therefore principle component factor analysis with varimax
rotation and Kiser normalization was applied. The factor analysis results in 7 factors for
adoptation of E- Banking and the factors were named according to common nature of
statements. The detail about the factor included the factor number, factor name , their
Eigen value and their Item loading is given in Table below:
Table: 7 Factor Analysis
Factor Eigen Value
No.
Factor Name Items Items
Total % of
Loading
Variance
1 Network quality 6.35 25.401 Good network .891
and image 0 coverage
Network quality is .826
good.
Call quality is .777
good.
Reputation and .596
Image
2 Retailers and 2.12 8.486 The employees are .749
offers 2 approachable?
The employees are .705
courteous?
The employees are .647
helpful?
Promotional offers .562
3 Value Added 1.86 7.467 Verity of plans .765
Services 7
Value added .759
services
Easy billing facility .514
4 Service 1598 6.394 The promise .743
Satisfaction fulfilling?
The services is .699
reliable and
consistent?
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
The service is
trustworthy? .614
5 Problem 1.40 5.634 The employees are .761
Rectifications 9 competent?
Convenience - .654
taking services
Fast Fault Repair .543
6 Competitive 1.31 5.261 The specific needs .685
5 are considered?
Competitive .650
services are good.
Competitive prices .601
7 Self 1.24 4.995 The personal .815
Belongingness 9 attention is given?
Prompt services
are given? .432
Factor Discussion:
1. Network quality and image: This factor has emerged as a most important
determinant of research with a total variance of 25.401. Major element of this factor
include Good network coverage(.891), Network quality is good (.) etc. During our
research we find that good network coverage does affect the CUSTOMER
SATISFACTION at large extent.
2. Retailers and offers: This factor has emerged as the second most important
determinant of research with a total variance of 8.486. Major element of this factor
include The employees are approachable (.749), The employees are
courteous (.705) etc. The study shows that retailers and offer affect the customer
satisfaction at large extent.
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
3. Value added Services: This factor emerged as the important determinants of
research with a variance of 7.467. Major elements consisting this factor include
Verity of plans (.765), Value added services (.759) etc. This study shows
that Value added Services play a significant role in Customer Satisfaction.
4. Service Satisfaction: This factor has emerged as the effective determinants of
research with a variance of 6.394. The elements consisting this factor include The
promise fulfilling (.743) and The services is reliable (.699). This study
reveals that Service satisfaction plays a significant role in Customer Satisfaction.
5. Problem Rectifications: This factor has emerged as a relevant factor of research
with a total variance of 5.634. Major elements of this factor includes The
employees are competent (.761), Convenience taking services (.654)
etc. This study reveals that Problem Rectifications plays a significant role in
Customer Satisfaction.
6. Competitive: This factor has also emerged as the effective factor of research with a
total variance of 5.261. The elements consists in this factor are the specific
needs, Good competitive services (.650).
7. Self Belongingness: This factor has also emerged as an important finding of
research with a total variance of 4.995. Element of this factor is the personal
attention given (.815). Employees behavior also affects the Customer
Satisfaction a lot.
8. Accessibility of Information: This factor has also emerged as an important finding
of research with a total variance of 4.371. Element of this factor is the accurate
information being provided (.828). Prompt Services given also affects the
Customer Satisfaction a lot.
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
09.CONCLUSION
This study, aimed at exploring the drivers of customer satisfaction from the Indian cellular
service provider. Customer satisfaction from all points of view, i.e., satisfaction from
usage of the service, recommending the service to others, and repeats buying intention. On
the whole, the network quality and image, retailers and offer, value added services and
services satisfaction are driving all facets of customer satisfaction more than problem
rectification, competitiveness, self belongingness and accessibility of information.
When it comes to satisfaction from usage of the services, all the eight factors are
impacting satisfaction with ‘Network quality and image’ being the most important driver
of satisfaction followed by ‘Retailers and offers’ and ‘accessibility of information’ being
the least important factor.
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
The results obtained by this study pertain to only those respondents chosen through
convenience sampling i.e IMS, Lal Quan, Ghaziabad and since the profile of the sample is
not a replica of actual market share of different cellular service provider in India, this
study should be seen as giving a direction for future research, and generalization from this
study to a wider population of cellular industry should be done with some caution.
However, this research work can be extended by collecting additional samples. Also, in
order to measure customer satisfaction, overall satisfaction and behavioral intentions have
been considered. Service loyalty as an after-effect of satisfaction could be added as an
additional variable for further research.
Another direction provided by the research is related to the gap between customer
perception and expectation as a driver of satisfaction. Also, the viewpoints of cellular
companies can be explored. There are other factors influencing customer satisfaction apart
from factors suggested in this study, such as the demographic characteristics of customers
and the usage pattern of mobile telecommunication services. Future studies could examine
some of these factors. Further, to identify the proper factors influencing customer
satisfaction, in a methodical manner, cellular services can be compared with other types of
communications services as well as with other service industries.
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
11.REFERENCES
3. Zikmund William G., “Business Research Method’s”, Edition 7th, Thomson South-
Western.
5. Aghamiri Seyed Ali (2007), “Assessing and Analyzing Satisfaction Level of Domestic
Gas Consumers in Tehran”, A Case Study in Great Tehran Gas Company, Tarbiat
Modares University Faculty of Engineering.
6. Chun Liu (2006), “Key Factors Affecting Cell Phones purchase decisions by young
Chinese Consumers”, Pennsylvania State University,USA
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
12.ANNEXURE
APPENDIX A - QUESTIONNAIRE
Hello. I am the student from INSTITUTE OF MANAGEMENT STUDIES,
GHAZIABAD. I am currently conducting a study on “DRIVERS OF CUSTOMER
SATISFACTION FROM THE INDIAN CELLULAR SERVICE PROVIDER ”. I would like
to assure you that there are no rights or wrong answers and I am only interested in
your opinion. I assure you that your opinion will not be disclosed .
Section- A
(Please tick (√ ) the appropriate box)
1) Name………………………………………………………
2) Please specify the age group to which you belong?
a) 18-20 b) 20-22 c) 22-24 d) 24-26 e) >26
3) Educational Background
5) Please specify the average monthly expense (in Rs.) to which you belong?
a) > 200 b) 200 - 400 c) 400 - 600 d) 600 - 800 e) > 800
6) Sex:
a) Male b) Female
Section- B
(Please tick (√ ) the appropriate box)
SDA - Strongly Disagree, D – Disagree, N – Neutral, A – Agree, SA – Strongly Agree
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
3 The promise fulfilling?
14 Convenience - taking
services
15 Network quality is good.
18 24 x 7 Customer service
21 Verity of plans
25 Promotional offers
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
APPENDIX B - COMMUNALITIES
Communalities
Initial Extraction
Q1 1.000 .654
Q2 1.000 .696
Q3 1.000 .636
Q4 1.000 .669
Q5 1.000 .670
Q6 1.000 .626
Q7 1.000 .664
Q8 1.000 .696
Q9 1.000 .695
Q10 1.000 .772
Q11 1.000 .761
Q12 1.000 .674
Q13 1.000 .624
Q14 1.000 .604
Q15 1.000 .731
Q16 1.000 .788
Q17 1.000 .830
Q18 1.000 .590
Q19 1.000 .613
Q20 1.000 .700
Q21 1.000 .777
Q22 1.000 .720
Q23 1.000 .593
Q24 1.000 .561
Q25 1.000 .656
Extraction Method: Principal Component Analysis.
Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Component Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
1 6.350 25.401 25.401 6.350 25.401 25.401 3.359 13.435 13.435
2 2.122 8.486 33.888 2.122 8.486 33.888 2.470 9.879 23.314
3 1.867 7.467 41.354 1.867 7.467 41.354 2.122 8.489 31.802
4 1.598 6.394 47.748 1.598 6.394 47.748 2.110 8.442 40.244
5 1.409 5.634 53.383 1.409 5.634 53.383 1.911 7.645 47.890
6 1.315 5.261 58.643 1.315 5.261 58.643 1.868 7.472 55.362
7 1.249 4.995 63.638 1.249 4.995 63.638 1.692 6.768 62.130
8 1.093 4.371 68.009 1.093 4.371 68.009 1.470 5.879 68.009
9 .873 3.492 71.501
10 .817 3.267 74.768
11 .789 3.158 77.926
12 .778 3.113 81.038
13 .618 2.473 83.512
14 .572 2.289 85.800
15 .559 2.237 88.037
16 .487 1.946 89.984
17 .443 1.772 91.756
18 .393 1.573 93.329
19 .358 1.433 94.762
20 .313 1.253 96.015
21 .300 1.200 97.215
22 .229 .915 98.130
23 .203 .812 98.942
24 .168 .672 99.614
25 .097 .386 100.000
Extraction Method: Principal Component Analysis.
APPENDIX D-
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
The Analysts 36
a
Driver of Customer Satisfaction fromComponent
Rotated the Indian Cellular
Matrix Service Provider
Component
1 2 3 4 5 6 7 8
Q17 .891
Q15 .826
Q16 .777
Q24 .596
Q5 .749
Q6 .705
Q7 .647
Q25 .562
Q21 .765
Q22 .759
Q23 .514 .401
Q3 .743
Q1 .699
Q2 .614
Q4 .761
Q14 .654
Q13 .543
Q9 .685
Q19 .650
Q20 .447 .601
Q10 .815
Q8 .421 .518
Q11 .828
Q12 .432
Q18
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 20 iterations.
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
For the example, notice that the Kaiser-Meyer-Olkin measure of sampling adequacy is
greater than 0.90.
Chi. Square-The square of a standard normal variate is known as a Chi. Square variate
with 1 degree of freedom(df).
df(degree of freedom)-It should me more than 300for a research work. The number of
independent variates which make up the statistics (e.g. ℵ2) is known as degree of freedom
(d.f) and is denoted by υ .
Rotated Component Matrix- A rotation matrix is a real square matrix whose transpose is
its inverse and whose determinant is +1 (i.e. it is a real special orthogonal matrix).
QT = Q − 1
Det Q = + 1
The matrix is so-called because it geometrically corresponds to a linear map that sends
vectors to a corresponding vector rotated about the origin by a fixed angle.
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Driver of Customer Satisfaction from the Indian Cellular Service Provider
Eigen Value-Eigen values represent the amount of variance in the data that is explained
by the factor with which it is associated.
The Analysts 39