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EFFECT OF EMPLOYEE LOYALTY ON

CUSTOMER SATISFACTION OF SOME


TELECOMMUNICATION COMPANIES IN
MOGADISHU, SOMALI

BY
ZAHRA ABDULLAHI AHMED
SHAFIE MOHAMUD SHAFIE
ABDIKARIM ALI BARE

A PROJECT PROPOSAL SUBMITTED IN


PARTIAL FULFILMENTS OF THE
REQUIREMENTS FOR THE DEGREE IN
BACHELOR OF BUSINESS ADMINISTRATION

FACULTY OF MANAGEMENT SCIENCES

SIMAD UNIVERSITY

MAY, 2019
DECLARATION A

We hereby declare that this our original work, and the best of our knowledge that has

not been presented to any other collage, University, or institution other SIMAD

UNIVERSITY (SU) in Mogadishu-Somalia

Name of the candidate: Zahra Abdullahi Ahmed

Signature ____________________________________

Date: 13/05/2019

Name of the candidate: Abdikarim Ali Barre

Signature _____________________________________

Date: 13/05/2019

Name of the candidate: Shafie Mohamud Shafie

Signature ______________________________________

Date: 13/05/2019

II
DECLARATION B

I officially state that I have supervised and read this study and, in my opinion is to an

acceptable standards of academic presentation is fully adequate. I hereby also confirm

that the research proposal was conducted in accordance with the degree regularities

and University Researchers Project Manual (RPM).

Name of the supervisor: Mohamed Muse Hassan

Signature: ___________________________________

Date: 13/5/2019

III
APPROVAL SHEET

This proposal entitled ‘‘the effect of employee loyalty on customer satisfaction’’

prepared and submitted by Abdikarim Ali Barre, Shafie Mohamud Shafie, and

Zahra Abdullah Ahmed, in partial fulfilments of the requirements for the degree in

bachelor of business administration has been examined and approved by the penal on

oral examination of the grade PASSED.

Name and signature of chairman of panellist

__________________________________________________________

Name and signature of panellist

__________________________________________________________

Name and signature of HOD, Business department

___________________________________________________________

Name and signature of Dean, faculty of management sciences

IV
TABLE OF CONTENTS

DECLARATION A .................................................................................................................. II

DECLARATION B ................................................................................................................. III

APPROVAL SHEET .............................................................................................................. IV

TABLE OF CONTENTS .......................................................................................................... V

CHAPTER ONE ...................................................................................................................... 1

INTRODUCTION ..................................................................................................................... 1

1.0 BACKGROUND OF THE STUDY .................................................................................... 1

1.2 STATEMENT OF THE PROBLEM ................................................................................... 3

1.3PURPOSE OF THE STUDY ................................................................................................ 4

1.4 RESEARCH OBJECTIVES ................................................................................................ 4

1.4RESEARCH QUESTIONS .................................................................................................. 5

1.6 SCOPE OF THE STUDY................ ........................................................................... ........5

1.6.1 CONTENT SCOPE .......................................................................................................... 5

1.6.2 GEOGRAPHICAL SCOPE ............................................................................................. 5

1.6.3 TIME SCOPE .................................................................................................................. 5

1.7 SIGNIFICANCE OF THE STUDY ..................................................................................... 5

1.8OPERATIONAL DEFINITIONS OF VARIABLES ........................................................... 6

CHAPTER TWO ..................................................................................................................... 7

REVIEW OF RELATED LITERATURE ................................................................................. 7

2.0 INTRODUCTION ............................................................................................................... 7

V
2.1 CONCEPTS, OPINIONS, AND IDEAS FROM AUTHORS/ EXPERTS ......................... 7

2.1.1 EMPLOYEE LOYALTY ................................................................................................. 7

2.1. 2 CUSTOMER SATISFACTION ...................................................................................... 9

2.1.3 RELATIONSHIP BETWEEN EMPLOYEE LOYALTY AND CUSTOMER

SATISFACTION ..................................................................................................................... 11

2.1.4 COMPANY TRANSPARENCY .................................................................................... 11

2.2 THEORETICAL / CONCEPTUAL/APPLICATIONS PERSPECTIVES ........................ 13

2.2.1Theoretical approaches .................................................................................................... 13

SERVQUAL ................................................................................................................... 13

Criticism – SERVQUAL ................................................................................................. 14

Kano Model ...................................................................................................................... 14

ACSI Methodology ........................................................................................................... 15

2.2.2 CONCEPTUAL FRAMEWORK ................................................................................... 16

CHAPTER THREE ............................................................................................................... 17

METHODOLOGY .................................................................................................................. 17

3.0 INTRODUCTION ............................................................................................................. 17

3.1 RESEARCH DESIGN ....................................................................................................... 17

3.2 RESEARCH POPULATION ............................................................................................. 17

3.2.1 SAMPLE SIZE ............................................................................................................... 18

3.2.2 Sampling Procedure ........................................................................................................ 19

3.3 RESEARCH INSTRUMENT ............................................................................................ 19

VI
3.3.1 Validity and Reliability of the Instrument ...................................................................... 19

3.4 DATA GATHERING PROCEDURES ............................................................................. 20

3.5 DATA ANALYSIS ............................................................................................................ 20

3.6 ETHICAL CONSIDERATIONS ....................................................................................... 20

3.7 LIMITATION OF THE STUDY ....................................................................................... 21

REFERENCES ........................................................................................................................ 22

APPENDIX A .......................................................................................................................... 24

APPENDIX B .......................................................................................................................... 27

VII
VIII
CHAPTER ONE

INTRODUCTION

1.0 BACKGROUND OF THE STUDY

Overall within the European Union, a shift is underway to re-think and reform social

services with social inclusion and “user involvement” as driving forces. Employee

loyalty is a set of beliefs that puts the customer’s interests first, while not excluding

those of all other stakeholders such as owners, managers and employees, in order to

develop a long-term profitable organization that satisfies it clients/customers on a

continuous basis (uttal, 1989), organizations should not only set objectives of profit

maximization but also customer needs should be considered and better understood

because the sole purpose of a business is not profit but to create a customer (Drucker,

1999). According to Arnould et al (2001), customer satisfaction is the consumer’s

fulfilment response.

It is a judgment that a product or service feature or a product or a service itself say,

provides pleasurable level of consumption-related fulfilment. It is also the measure of

how products and services supplied by a company meet or surpass customer

expectations. Failure to meet needs expectations is assumed to result in dissatisfaction

with product or service. Twenty-first centuries is called fast changing world.

Such organizations smart enough to predict the changing needs of their customers

focus on their organizational capability, offer high-quality services, and to see the

quality of internal and external service as a tool to gain competitive advantage. In fact,

during the four decades since the introduction of the marketing concept, employee

loyalty has been identified as employees who are devoted to the success of their

1
organization and believe that being an employee of this organization is in their best

interest.

It is important to identify those key factors in employee loyalty which allows the

companies to differentiate themselves from the competition (Singh and Koshy, 2012).

In Uganda that offers the telecom service under Airtel Brand; it acts as a carrier for

national and international long distance communication services. The Company offers

fixed line services, broad band internet access services and money transfer services

under a common brand “Airtel”. According to Kotler and Keller (2006) customer

satisfaction refers to a person’s feelings of pleasure when a firm’s offerings matches

or exceeds customer expectations.

As performance indicator within an organization’ customer satisfaction measures

products and services, in meeting customer expectations.

Customer satisfaction is thus a customer response or judgment to a product or service

in terms of the extent to which consumption meets their expectations. Lamb et al.

(2005) noted that, the main point of the marketing concept is that organizations have

to be more responsive to customer needs and demand. Organizations are being

reformed to provide better, faster, more reliable services and the customer has a

prominent place in these reforms. According Lamb et al. (2005) added that, customer

satisfaction is a critical requirement for successful marketing and successful firms the

world over has got it down to a fine art.

Organizations make sure customer needs are known (through research) and then make

sure they satisfy those needs well. A famous quote by Kan (1995) as cited in Okasana

and Andrius (2003) states that, “a dissatisfied customer told7 to 20 people about their

experience.

2
A satisfied customer told 7.to 5 people about their positive experience”. The concept

of customer satisfaction and service quality are closely related. As a result, business

organizations aim to develop strong relationships with customers in delivering quality

services in order to gain a competitive advantage (Kotler and Keller, 2006).

However there are still complaints by customers on the quality of service as confirmed

by Airtel Uganda Ltd consumer survey report

1.2 STATEMENT OF THE PROBLEM

In Somalia, since the collapse of the central government in 1991, many businesses

started to boom up fast especially service industry. These businesses were facing an

environment which is dynamic, changeable, and essential, as well as an intensive

competition. These circumstances and many others compel the organizations to adopt

certain business concepts, policies, and practices in order to attain their goals and to

get prominent results. Among those business concepts is market orientation. The

market orientation concept has been debated regularly over the last decade. Plentiful

studies of market orientation and organizational capabilities in this field have been

published. It has become the essential theoretical notion of modern marketing

management and strategic management (Hou, 2008).

After the civil war, many companies emerged quickly such as OLYMPIC, QARAN

EXPRESS, and shrinking of NATIONLINK Shortly. After few years, these

companies collapsed due to lack of experience, and low Employee loyalty. This

situation led OLYMPIC to lose its customers and serve for unsatisfied clients.

The company’s customers didn't want to lose their products. They wanted sustainable

business and be able to shop in comfort, closer to their suburban homes. But the

company failed to adapt, effectively and achieve employee loyalty and customer

satisfaction.

3
This has resulted OLYMPIC Company to go out of business. By the way, some

corporations have changed their original names including HORMUUD, was early

known by AL –BARAKAAT, which has opened to take a tough competition among

telecommunication companies in Somalia.

In 2002, AL- BRAKAAT, was faced by unprecedented failure, so this challenge that

faced the above mentioned companies and possibly to face the existing and future

companies that has driven the researchers that, there is gap which needs to get a

comprehensive solution. And there is some studies including, one was done by Ali

(2016) in which market orientation and business performance in Somalia is not

completely covered and no changed the aspect. Furthermore, there has been no study

conducted on the employee loyalty on customer satisfaction in Mogadishu, Somalia.

And also this is another gap, in which this study intends to address.

1.3 PURPOSE OF THE STUDY

The study will investigate and sight effect of employee loyalty on customer

satisfaction at some selected companies in Mogadishu, Somalia.

1.4 RESEARCH OBJECTIVES

1 To investigate the effect of employee welfare on customer satisfaction in

Mogadishu,

Somalia.

2 To examine the effect of employee engagements on customer satisfaction in

Mogadishu, Somalia.

3 To identify the effect of company transparency on customer satisfaction in

Mogadishu, Somalia.

4
1.4RESEARCH QUESTIONS

1. How to investigate the effect of employee welfare on customer satisfaction in

Mogadishu, Somalia?

2. How to examine the effect of employee engagement on customer satisfaction in

Mogadishu, Somalia.

3. How to identify the effect of company transparency on customer satisfaction in

Mogadishu, Somalia.

1.6 SCOPE OF THE STUDY

1.6.1 Content scope

In this study the researchers will focus on the effect of employee loyalty on customer

satisfaction in Mogadishu, Somalia.

1.6.2 Geographical scope

This research will be limited some selected telecommunication companies in

Mogadishu, Somalia.

1.6.3 Time scope

This study is Corresponding study

1.7 SIGNIFICANCE OF THE STUDY

As the study investigates the effect of employee loyalty on customer satisfaction, it

will be useful for all business centres either public or private companies. The outcome

of this study will be beneficial for business owners as it will give recommendations. It

will also give secondary data to researchers and larger population in Somalia, who

may be interested in the topic as the work will be made available in the library of

SIMAD University (SU). Findings were also available for reference by academicians,

5
researchers who seek to conduct further research in any of the variable under this

study.

1.8OPERATIONAL DEFINITIONS OF VARIABLES

Employee Loyalty can be defined as employees being committed to the success of

the organization and believing that working for this organization is their best option

(Angle, 1983).

Customer Satisfaction on is a measurement of how products or services supplied by

a company meet customer expectations.

6
CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.0 INTRODUCTION

This chapter provides a critical review of related literature on the variables, in light of

the objectives of the study, conceptual framework

2.1 CONCEPTS, OPINIONS, AND IDEAS FROM AUTHORS/ EXPERTS

2.1.1 EMPLOYEE LOYALTY

In general, employee loyalty can be best described in terms of a process, where certain

attitudes give rise to certain behaviours (intended or actual). There have been major

changes in the business world and the workforce in the last couple of decades. In the

past, once hired an employee believed it was a life time job and managers expected

their unstinted loyalty to the enterprise.

Similarly, workers used to be devoted to their employer. This image of employment

loyalty has gradually changed with the advent of “globalization” when employees

began to face restructuring, company relocations, and downsizing.

Employers’ broke the rules mutual obligations are reconsidered, life time

employment and devotion is no longer expected, job-hopping is considered to be a

normal phenomenon, and people are constantly striving for higher salaries or better

working conditions.

Loyalty and trust have become more difficult to obtain and give in the work place.

Loyalty seems like a quality that's becoming increasingly harder to find, whether it's

employee loyalty to a company or consumer loyalty to a product. In the past,

employees believed when they were hired by a company that they would be with that

company until they retired. Starting in the 1980s as companies sought to increase

7
profits; workers' perceptions of lifetime employment were shattered by corporate

downsizing, company relocations to other states or countries and static wages.

Loyalty has two dimensions: internal and external. Loyalty is, fundamentally, an

emotional attachment. The internal dimension is the emotional component. It includes

feelings of caring, of affiliation and of commitment. This is the dimension that must

be nurtured and appealed to. The external dimension has to do with the way loyalty

manifests itself. This dimension is comprised of the behaviours that display the

emotional component and is the part of loyalty that changes the most.

Instead, what happens most often is that the leaders of an organization feel that they

are very loyal to their employees and that the organization has policies in place to

reflect that-but that workers don't understand what management is trying to do. On the

other hand, employees who feel they are very loyal to their companies aren't

demonstrating it in ways management Seema Mehta et al, Int.J.Buss.Mgt.Eco.Res.,

Vol 1(1),2010,98-108 98 understands. The terms of the loyalty are far different from

what they were in the past. Rather than a blind corporate allegiance, employees show

their commitment through their efforts for the organization.

What's more, they are well aware of their market value and as reported recently in a

Fast Company cover story, they have unique requirements and are not afraid to make

bold and frequent career moves to meet them. This trend, coupled with decreased

employer loyalty, has resulted in job-hopping rates unseen even a decade ago. Indeed,

the days of waiting for the gold watch and easing into retirement are long gone. The

sooner companies can face the fact that they've got to do more to earn employee

loyalty, the better they will be at recruiting and retaining the best and the brightest. In

fact, studies show that corporate and shareholder return on investment is directly

related to employee retention rates. Happy employees equal happy returns.

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2.1. 2 CUSTOMER SATISFACTION

According to Arnould et al, (2001), customer satisfaction is the consumers’ fulfilment

response.

It is a judgement that a product or service feature, or the product or service itself say,

provides a pleasurable level of consumption-related fulfilment. Failure to meet needs

and expectations is assumed to result in dissatisfaction with product or service.

A sense of fulfilment in the knowledge that one’s needs have been met is expected to

result into satisfaction which is also related to other types of feelings, depending on

the particular context or type of service. For those services that really surprise the

consumer in a positive way, satisfaction may mean delight. And in some situations,

where the removal of a negative leads to satisfaction, the consumer may associate a

sense of relief with satisfaction. Service organizations need to recognize that although

considerable research studies conducted by Bearden et al (1983) tend to measure

customer satisfaction at a particular point in time as if it were static, satisfaction is a

dynamic moving target that may evolve over time influenced by a variety of factors,

(Zeithamal, et al., 2003).

Considerable research reveals that the determinants of customer satisfaction include

customers‟ emotional response, their attributions and their perceptions of equity.

Oliver (1997) contends that customer satisfaction with a product or service is

influenced

Significantly by customer’s evaluation of product or service feature. Ostrom, et al.,

(1995) studies indicated that customer services will make tradeoffs among different

service features (for example, price level versus quality versus friendliness of

personnel versus level of customization) depending on the type of service being

evaluated and criticality of the service.

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Satisfaction and commitment, more inclination to mention to others, reduction in

criticisms and increase customer withholding (Buteele, 1996).

Two terms are closely related, one is customer satisfaction and the other one is service

quality.

Both are directly proportional. If one increases, other increases vice versa. Customer

satisfaction is a term used to satisfy the customers by the service quality provided by

banks. Customer complaints are related with the customer satisfaction. If customer

complaints are less, then it means customers are more satisfied (Lee, 2009).

Service quality can be described as the understanding power of the organization’s

performance, achievements and efficiency. If perceived service quality is good

according to the customer behaviors and intentions, then customers are more satisfied

and loyal with their products (Zeithamal, 2000).(Yang, 2001)If service quality of

product is not good, then sales and profits will be reduced and ultimately customers

shift towards other competitor’s product (Yang, 2001).

In the modern world, service sector plays an important role in all the banks either a

conventional banks or non-conventional banks. Banking sector performs all its

activities either economic or social in all around the world. Service managers of banks

are more concerned about their quality of services and customer satisfaction.

According to a nutshell, Oliver (2010) summarizes that customer satisfaction is vitally

important to the “well-being of individual consumers, to the profits of firms supported

through purchasing and patronization, and to the stability of economic and political

structures”. Therefore, consumers, firms, and economies all benefit from receiving

satisfying outcomes whether in the marketplace or life in general.

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2.1.3 RELATIONSHIP BETWEEN EMPLOYEE LOYALTY AND

CUSTOMER SATISFACTION

Through organizing and directing services of institutions towards consumers with

people or staff that see serving customers as their primary function. In today’s market

place it’s no longer enough to satisfy customer’s needs and wants in terms of quality,

promptness among others but it is more important to delight customers on a

continuous basis.

Being employee loyalty to quality management, and means maintaining good

relationship with your customers as well as putting the customer first in the decision-

making process so as to be successful within the hyper competitive market (Sit et al.,

2009).

In their empirical investigation into customer orientation and customer satisfaction

relationship among Japans firms Deshpande et al (1993) concludes that customer

orientation is positively associated with customer satisfaction. Similar studies on the

customer orientation and customer satisfaction were conducted in United States of

America whose results were also revealed to be positively correlated (Redman et al.,

1998) whose loyalty to the organization also increased

(Ganesan, 1994; Williamson, 1991)

2.1.4 COMPANY TRANSPARENCY

A transparency object as having the property of transmitting light without appreciable

scattering so that bodies lying beyond are seen clearly. Social scientists have

metaphorically adopted this definition to connote the ability of interested parties to see

through otherwise private information to understand the intentions of the sender.

Company transparency is an ideology that looks beyond employee happiness and

and/or all employee retentions

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The field of finance has done much to study the effects of transparency across a broad

range of industrial settings. Such studies generally investigate transparency as the

inherent Quality of information in institutional communications.

However, researchers in finance have not yet come to consensus on a single

theoretical definition to describe the basic dimensions of Transparency (Bloomfield &

O’Hara, 1999). Be that as it may, scholars from a variety of research domains have

noted the importance of understanding the critical role of institutional

Communications (e.g., employment contracts) on organizational behavior (e.g.,

Ashcraft, Kuhn, &Cooren, 2009; Eisenhardt, 1989; Rosengren, 1999; Weick 1987).

Therefore, this study builds a comprehensive definition of transparency based on

literature in finance and empirically investigates its constituent parts against important

organizational constructs such as trust.

Empirical studies investigating transparency in finance have analyzed it as both the

Dependent variable (Hodge, Kennedy, & Maines, 2004; Patel et al., 2002) and

independent

Variable (Board & Sutcliffe, 2000; Gemmill, 1996; Rosengren, 1999; Winkler, 2000)

under

Question. Some studies define transparency as the timely disclosure of information

(e.g.,

Bloomfield &O‟Hara, 1999; Madhavan, Porter, & Weaver, 2005; Pagano &Roell,

1996;

Securities and Exchange Commission, 1995; Securities and Investment Board, 1995)

while other Studies define transparency as the level of clarity in information

(Bushman, Piotroski, & Smith,

2004; Jordan, Peek, & Rosengren, 2000; Winkler, 2000).

12
Still others studies define transparency as the level of accuracy in information (Flood,

Huisman, Koedijk, &Mahieu, 1999; Granados, Gupta, & Kauffman, 2006). Overall,

the literature in finance appears to ascribe three primary Dimensions to the construct

of transparency. Namely, transparency is the degree to which Information is disclosed,

clear, and accurate.

2.2 THEORETICAL / CONCEPTUAL/APPLICATIONS PERSPECTIVES

2.2.1Theoretical approaches

Organizations analyses customer satisfaction with various customer satisfaction

models. Different models clarify different theories of customer satisfaction.

• SERVQUAL

The SERVQUAL instrument has been widely applied in a variety of service

industries, including tourism and hospitality. The instrument was used to measure

hotel employee quality as well.

Parasuraman, Zeithamal and Berry (1988) built a 22-item instrument called

SERVQUAL for measuring consumer perceptions of service quality.

SERVQUAL Addresses many elements of service quality divided into the

dimensions of tangibles, Reliability, responsiveness, assurance, and empathy.

A number of researchers have applied the SERVQUAL model to measure Service

quality in the hospitality industry, with modified constructs to suit specific Hospitality

situations. The most widely accepted conceptualization of the customer satisfaction

Concept is the expectancy disconfirmation theory.

The theory was developed by Oliver (1980), who proposed that satisfaction level is a

result of the difference between expected and perceived performance. Satisfaction

(positive disconfirmation) occurs when product or service is better than expected. On

the other hand, A performance worse than expected results with dissatisfaction

13
(negative disconfirmation)”. Providing services those customers prefer is a starting

point for providing Customer satisfaction – A relatively easy way to determine what

services customer Prefers is simply to ask them. Gilbert and Horsnell (1988)

advocates that guest comment cards (GCCs) are most commonly used for determining

hotel guest satisfaction.

GCCs are usually distributed in hotel rooms, at the reception desk or in some other

visible place.

• Criticism – SERVQUAL

Though SERVQUAL has been generally robust as a measure of service quality, the

instrument has been criticized on conceptual and methodological grounds. The main

criticism

Of SERVQUAL has focused on the use of expectation as a comparison standard. It

has been argued that expectation is dynamic in nature,

And that it can therefore change according to customers‟ experiences and

consumption situations. One of the main problems mentioned in the literature is the

applicability of the five SERVQUAL dimensions to different service settings and

replication Studies done by other investigators failed to support the five-dimensional

factor Structure as was obtained by Parasuraman et al. (2001) in their development of

SERVQUAL”.

• Kano Model

The Kano model is a theory developed in the 80‟s by Professor Noriaki Kano and his

colleagues of Tokyo Rika University. The Kano et al (1996) model of Customer

satisfaction classifies attributes based on how they are perceived by customers and

their effect on customer satisfaction.

14
Kano model measures satisfaction against customer perceptions of attribute

performance;80 grades the customer requirements and determines the levels of

satisfaction. The underlying assumption behind Kano‟s method is that the customer

satisfaction is not always proportional to how fully functional the product or service is

or in other words, higher quality does not necessarily lead to higher satisfaction for all

product attributes or services requirements

• ACSI Methodology

The American Customer Satisfaction Index (ACSI) was launched in 1994. The

American Customer Satisfaction Index uses customer interviews as input to a Multi-

equation econometric model developed at the University of Michigan‟s Ross School

of Business. The ACSI model is a cause-andeffect model (Fig-6) with Indices for

drivers of satisfaction on the left side (customer expectations, perceived Quality, and

perceived value), satisfaction (ACSI) in the centre, and outcomes of Satisfaction on

the right side (customer complaints and customer loyalty, including Customer

retention and price tolerance).

The ACSI survey process involves collecting data at the individual customer Level.

Casual sequence begins with customer expectations and perceived quality Measure

15
2.2.2 CONCEPTUAL FRAMEWORK

Independent variable dependent variable

Employee loyalty Customer satisfaction

Employee engagements

Employee Welfare

Company transparency

Employee engagement: a state of mind in which employees feel a vested interest in

the company’s success and are both willing and motivated to perform to levels that

exceed the stated job requirements.

Employee welfare entails everything from services, facilities and benefits that are

provided or done by an employer for the advantage or comfort of an employee. It is

undertaken in order to motivate employees and raise the productivity levels

Company transparency: refers to the extent to which shareholders, investors and

other stakeholders have ready access to a company's or market's data.

16
CHAPTER THREE

METHODOLOGY

3.0 INTRODUCTION

In this chapter, the researchers will demonstrate the research methodology use to

achieve the purpose of the study and generate data required for the research. This

chapter discusses research area, research design, population and sampling, data

collection, validity and reliability, data analysis and limitations of the study.

3.1 RESEARCH DESIGN

The research methodology to be used in the research project is descriptive research

design specially survey research. Survey research is an appropriate methodology for

this research project, in general the data collection methods to be used in surveys are

questionnaire, it is often the case that the population or sample used in surveys is big

and questionnaire or scale is an effective method to use in engaging with large

research population.

In order to examine the effect of employee loyalty on customer satisfaction. This

design is selected for this study because it is less expensive and easily accessible for

collecting information from the target population. This design was used to identify the

customer orientation and customer satisfaction in Mogadishu Somalia.

3.2 RESEARCH POPULATION

Population is the total collection of elements about which we wish to make

interferences (Heskett, 2002). the population of the study is the customers of

Hormuud, Somtel, and Sahal Companies According sells manager of those

companies

17
3.2.1 SAMPLE SIZE

Sample is a part of the selected population that would be a representative from the

Population.

As researchers, Hormuud Telecommunication Company is a larger corporation that

has thousands of official employees; the researchers don’t have access to obtain data

from those employees to reach all of them, so as researcher 116 is target population as

accessibility to be adopted a sample.

The sample size was consist of (116) selected from customers of Hormuud, Somtel,

and Sahal companies in Mogadishu, Somalia.

In order to draw sample from the population the researcher used solven’s formula that

𝑁
is 𝑛 = Where: n = number of samples, N = total population and e = margin
1+𝑁(𝑒2)

of error 5%.

The research is being adapted by 116 populations, so in the expression of solven’s

116
formula we got 𝑛= = 90
1+116(0.05)2

And the following table indicates how the package of questioners has aligned among

the selected companies in Mogadishu Somalia

NO COMPANY BOX UP OF QUESTIONNAIRE

1 HORMUUD 50 BU of Questionnaire

2 SOMTEL 20 BU of Questioner

3 SAHAL 20 BU of Questioner

18
3.2.2 Sampling Procedure

The research team will use probability sampling especially simple random sampling

technique for choosing sample. The rationale for choosing this approach is that

respondents who are appropriate to participate in this study considered a fair way to

select a sample from a larger population, since every member of the population has an

equal chance of getting selected.

3.3 RESEARCH INSTRUMENT

The research team use questionnaire for collecting data in this study. The rational for

choose questionnaire will guide by the nature of data to be gather, the time available,

as well as the objectives of this study; in addition to that, Questionnaire is a set or

written questions with a choice of answers, devised for the purpose of a survey or

statistical study.

The research questionnaire will comprise closed questions only and will adopt from

study (Mohmood M. Hajatt, 2002).

Questionnaire of four point of liker scale from Strongly Agree (1), Agree (2), Neutral

(3), Disagree Agree (4), and StronglyDisagree (5) will adopt to identify variable of

Somali community perception.

3.3.1 Validity and Reliability of the Instrument

The validity and reliability of collection methods for survey data will be easier to

assess where you have a clear explanation of the techniques used to collect the data

(Saunders et al, 2009). Also, the Validity refers to the level to which data collection

method accurately measures what it will intended to measure or to the extent to which

research findings are about what they are claim to be about (Saunders et al., 2009).

According to the Dahir (2015) defines Reliability is the consistency throughout a

19
series of measurements or One of the important characteristics of any instrument is

how reliably it measures.

To test reliability of each construct.

Coefficient which is quite acceptable is a value between 0.60 to 0.70 or more.

However, a great care will exercise to reduce the error. Reliability refers degree to

which measures are free from error.

3.4 DATA GATHERING PROCEDURES

The beginning of the field activities was marked by the approval of the research

proposal by the University. Thereafter, the research team secures the permission and

the letters of introduction from the different group. Data collect will be primary by

using a hand delivered questionnaire data to the select respondents of the study.

3.5 DATA ANALYSIS

The data of this research will be analyzed with the help of the statistical program

SPSS V.26 This program will choose because it is capable of processing various

statistical analyses that are not available in Excel. Content validity index, descriptive

and regression.

The reliability and content validity was used to evaluate the stability of measure,

internal consistency of measurement instrument and to extent to which the

interpretation of the result of a test are warranted.

3.6 ETHICAL CONSIDERATIONS

To carry out this study, the researcher coordinates with and will be use individual and

institutional data. Thus, the data collect will keep confidential and will exclusively use

for the purpose of Bachelor degree requirements. The respondents will be informing

of the contents and the aims of the research prior to administration of any instrument.

20
This research will be fully conducted ethically and all copyrights will be observed and

where permission will require reproducing materials will be sought.

3.7 LIMITATION OF THE STUDY

Accessibility of the data may be limited, some of the respondents may not participate

to share with the researchers some of the information that they consider confidential

but the researcher promise to keep the information got as confidential and only to be

use for academic purposes. There may be a language barrier because some of the

respondents may feel difficult in understanding the questions in the questionnaire but

the researchers will too patient to explain fully when need arises.

21
REFERENCES

Cheserek, L. K., Kimwolo, A. K., & Cherop, F. (2015). Effect of quality financial

services on customer satisfaction by commercial banks in

Kenya. International journal of humanities and social science, 5(7), 102

112.

Christopher Warren.(July, 2015). The Malleability of Spatial Skills: A Meta-Analysis

of Training Studies

D. H. Hamer, S. Hu, V.L. Magnuson, N. Hu, and A.M. Pattatucci (1993). A Linkage

between customer value and customer satisfaction

Dauw,S.ZhuChih,T. Lin,C. Hung TsaiJi-F, W. (2010). International Journal for

Qualityresearch

David, H. Nathaniel, G. Meadow, Elizabeth, T. Linda, L. Hand, Alison, R. Alden, and

Ivanka, A. Holjevac, Suzana, M. Sanja,R. (1990).Customer satisfaction

measurement

Drucker, L. (Sep,1999). Management challenges for the 21st century

Emmanuel, O. and Lloyd, C. Harris. (August, 2000).Leadership style, organizational

culture and performance: empirical evidence from UK companies

Norazah, M. (2013).Examining the Correlations of Hotel Service Quality with

Tourists Satisfaction

Papadopoulou, P., Kanellis, P., & Martakos, D. (2002). Trust Formation And

Relationship Building In Electronic Servicescapes. In ECIS (pp. 1487-1497).

PROF, Dr. muhammad E. malik (December, 2011). impact of perceived service

quality on banking Customers’ loyalty

22
Robert ,B. Woodruff (Feb, 1997 25) .Academy of Marketing Science. Journal; spring

The Impact of Customer Satisfaction and Relationship Quality on

Customer Retention

Robert, D. Winsor(Jun, 2002).The effects of organizational culture and market

orientation on the effectiveness of strategic marketing alliances

Thorsten, H.Thurau and Alexander,K. (December 1997).

Valarie, A. Zeithaml, A. Parasuraman, A. Arvind, M. (2002). Service Quality

Delivery through Web Sites.

Winter, V.(1999) the big challenge cases on Customer satisfaction

23
APPENDIX A

QUESTIONNAIRE SECTION

We are students from the Faculty of Management Sciences, SIMAD and we are

conducting this research project to examine the effects of employee loyalty on

customer satisfaction. This research prop answers related to some selected companies

in Mogadishu, Somalia including Hormuud, Somtel, and Sahal. The questionnaire is

base don the research objectives laid out in our project.

The questionnaire contains fives sections of considerations including gender, age,

educational level, marital status, and working experiences.

Also, this questionnaire measures five levels of satisfaction: Strongly Agree, Agree,

Neutral, Disagree, and Strongly Disagree. The candidates can choose any option that

they think best matches their opinions and perception.

As a note, any data collected through this questionnaire is high confidential and will

be used only for academic purposes.

24
SECTION ONE

Demographic data

Gender

1. Male
2. Female

SECTION TWO
Age
1. Below 20 years
2. 21-30 years
3. 31-40 years
4. 41-50 years
5. 51 and above

SECTION THREE

Marital status

1. Single
2. Married
3. Other

SECTION FOUR

Educational level

1. Diploma
2. Bachelor
3. Master
4. PHD
5. Other

SECTION FIVE
Working experiences
1. > 1 year experience
2. 2- 4 years experiences
3. 5 years experiences
4. 6-10 years experiences
5. 11-20 experiences years 25

6. <20 years experiences


25
Effect of employee engagements on Customer Satisfaction 1 2 3 4 5
1. Regular employee engagements can raise the wealth of customers

2. Employee morality can only be built through employee engagements

3. Sometimes employee engagements can be ignored if employees can satisfy the customers
by MBO (Management by Objectives)

4. Employee engagements play an important role for the satisfaction of both employees and
customers

5. To engage employees, it must be considered employee’s ability for innovation

6. If employees are engaged accurately, they will work harder, and the customers may be
satisfied

Effect of employee welfare on customer satisfaction 1 2 3 4 5


1. Only recognizable employees deserve to get welfare

2. Employees can be given welfare according to their ability of customer satisfaction

3. The more employees receive welfare, the more customers satisfied

4. Employee welfare leads to employee capacity buildings

5. Employees are not always perfect; so giving them welfare is preferable sometimes

6. Any employee has the right to receive welfare irrespective of their performance

Effect of company transparency on Customer Satisfaction 1 2 3 4 5


1. The more a company serves its employees transparently, the more satisfied customers

2. Transparency of the company must be continued and implemented as long as it can be


done so

3. Transparency is for large and medium corporations not for smaller corporations

4. During employee performance evaluation, transparency is first and last

5. If employees lose transparency from their company, they continue to perform their duties

26 among the employees


6. Transparency can create larger motivation and competitions
APPENDIX B

COSTING BUDGET

NO ACTIVITY COST

1 Printing papers $15

2 Internets : Websites, Google, Articles $40

3 Re corrections fees $20

4 Transportations $70

5 Restaurant $80

6 Mobiles services fees $60

6 Files $5

7 Supervisor fee $120

Total $410

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APPENDIX C

TIME FARME

NO TIME ACTIVITY
FARMING
1 Sep/15/2018 Reviewing Articles, Books

2 Sep/18/2018 Selecting the research Title

3 Sep/23/2018 Reviewing related literatures

4 Oct/1-8/2018 Preparing introduction for the selected Title(chapter one)

5 Oct/20-30/2018 Developing literatures’ reviews and the variables of the title

(capter2)

6 Nov/5-13/2018 Developing research methodology (chapter 3)

7 Nov/25/2018 Submitting the research proposal

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