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Factors Influencing Customer Satisfaction
In Mobile Telecommunications
Industry of Nepal
Business Research Project Report
Submitted to
Kathmandu University
In partial fulfillment of the requirements for the
Bachelor of Business Administration
By
Ayush Man Tamrakar
A011935-10
Under the supervision of
Ritesh Kumar Thakur,
Faculty of Statistics
June, 2014
i
Declaration
I, the undersigned declare that this research project is a result of my study carried out
in the year 2014. It has not been previously submitted to any other university or any
other examinations.
Signature
Ayush Man Tamrakar
BBA 2010-2014
KU Registration: A011935-10
Kathmandu College of Management
ii
Acknowledgement
I would like to express my gratitude to all those who gave me the opportunity to
explore and complete this research study. First and foremost, I would like to thank
Kathmandu University School of Management (KUSOM) for providing this excellent
research opportunity to the students of undergraduate Bachelors in Business
Administration (BBA) program.
I express my special gratitude to my academic supervisor, Mr. Madhu Sudan Gautam.
It was his encouragement, patience, and valuable feedback that enabled me to
complete this work. I am also deeply indebted to my research supervisor, Ritesh
Kumar Thakur. The support that he provided motivated me to think more broadly
about the associated concepts and constructs, and helped expand my understanding of
research as a discipline. Invaluable discussions we held stimulated my enthusiasm and
imagination in the research process.
I would also like to give my sincere gratitude to Ms. Jashmina Pradhananga and all
my friends and colleagues who supported me with the information required to
complete this research effectively. Likewise, I thank all the respondents who filled in
the survey, without which this research would be incomplete.
This project would not have been possible without the kind support and help of many
individuals. I would like to extend my sincere thanks to all of them.
iii
Executive Summary
In the present customer driven market, the concept of customer satisfaction is
regarded as a fundamental marketing concept in any kind of business. Previously, it
used to be an unpopular and overlooked concept; and business houses and companies
were hind-sighted with the motive to widen the customer base than to retain the
existing customers. However, today the same business houses and companies have
begun to shift their focus on incorporating customer relationship management to
sustain their business. With the inclusion of customer relationship management as an
independent unit in the organization structure, the businesses have encompassed the
responsibility of delivering customer satisfaction in their priority zone. The need of
this customer relationship management and the fulfillment of the expectations of the
customers cannot be neglected in the mobile telecommunications industry.
With the on-going modernization and in the age of information, the students,
especially those pursuing their higher level studies are one of the most dominant
customers in the mobile telecommunication industry from the social as well as the
economic facets. The students of age group 16 to 35 are the most aware and well
informed generation in the society. With the quick access to information about the
mobile telecommunications service around the world and high expectations from the
service providers, these students have a mixture of perceptions about the services
provided by the mobile telecommunication sector in Nepal. This diverse nature of
perception held by the students is the reason behind this investigation on the influence
of socio-economic and service factors on the satisfaction level of students.
This research follows the definition of customer satisfaction as an experience-based
assessment of the customer through the difference in his/her own anticipations
iv
regarding the overall functionality of the services and fulfillment of the service
obtained from the seller. The research’s antecedents, which refer to the cause
elements, include buyer requirements and anticipations, service quality, observed
assessment, internal fulfillment and complaint administration.
This research study was conducted by administering 150 questionnaires to students of
age group 16 to 35 pursuing higher secondary level in various disciplines, bachelors
level, masters level and above in Kathmandu through the online social media sources.
The questionnaire survey administered to the respondents was divided into two
sections. Section I includes questions on socioeconomic factors; and section II covers
questions on service features, service performance and overall customer care.
From the results obtained from the research, it was revealed that 55% of the
respondents are satisfied and 8% of the respondents are highly satisfied with the
mobile telecommunications industry of Nepal. The findings showed that the grouping
of the mobile service features exhibited a moderate relationship with satisfaction
while the socioeconomic variables demonstrated a very weak relationship.
Based on the findings of this research, the implication that can be drawn for mobile
service providers is that, there is a need to improve and customize their services in
order to achieve higher level of customer satisfaction. It can be affirmed that through
the enhancement of the features of the mobile telecommunication services, the level
of customer satisfaction can be increased effectively. Along with this, the mobile
service providers must create segments in the market to formulate plans and policies
to fulfill the requirements of its demographically diversified customers and enhance
the level of customer satisfaction through customization and better service quality.
v
Table of Contents
Declaration......................................................................................................................i
Acknowledgement .........................................................................................................ii
Executive Summary..................................................................................................... iii
Table of Contents...........................................................................................................v
List of Tables ...............................................................................................................vii
List of Figures............................................................................................................ viii
List of Acronyms ..........................................................................................................ix
Chapter I: Introduction...................................................................................................1
1.1. Background of the Research ...........................................................................1
1.2. Problem Statement ..........................................................................................3
1.3. Objectives of the Research..............................................................................4
1.4. Organization of the Report..............................................................................5
Chapter II: Literature Review ........................................................................................6
2.1. Definitions...........................................................................................................8
2.2. Antecedents.........................................................................................................8
2.3. Socioeconomic Variables and Customer Satisfaction.......................................11
Chapter III: Methodology ............................................................................................12
3.1. Sample Selection...............................................................................................13
3.2. Research Instrument..........................................................................................13
3.3. Conceptual Framework .................................................................................14
vi
3.4. Operational Definition...................................................................................16
Chapter IV: Results......................................................................................................17
4.1. Data Analysis........................................................................................................17
4.2. Customer Satisfaction among the Socioeconomic Groups...................................24
4.3. Factors Influencing Customer Satisfaction...........................................................28
4.4. Relationship between Customer Satisfaction and Socioeconomic Variables.......34
Chapter V: Summary, Discussions, and Implications .................................................39
5.1. Summary ...........................................................................................................39
5.2. Discussions........................................................................................................40
5.3. Implications.......................................................................................................41
References....................................................................................................................43
Appendix......................................................................................................................45
Appendix 1: Questionnaire Format..........................................................................45
Appendix 2: Frequency Table of Weekly Allowances ............................................48
Appendix 3: Frequency Table of Weekly Expenses ................................................49
Appendix 4: Frequency Table of Weekly Mobile Services Expenses.....................50
Appendix 5: Frequency Table of Mobile Service Providers....................................51
Appendix 6: Frequency Table of Customer Satisfaction .........................................52
vii
List of Tables
Table 1: Cross Tabulation between Customer Satisfaction and Weekly Allowance...24
Table 2: Cross Tabulation between Customer Satisfaction and Weekly Expenses.....25
Table 3: Cross Tabulation between Customer Satisfaction and Mobile Expenses......26
Table 4: Cross Tabulation between Customer Satisfaction and Service Providers.....27
Table 5: Result of Regression Analysis between CS and Quality of the Network......28
Table 6: Result of Regression between Customer Satisfaction and Billing ................30
Table 7: Result of Regression between Customer Satisfaction and Validity ..............31
Table 8: Result of Regression between Customer Satisfaction and Customer Care ...32
Table 9: Result of Regression between CS and Network, Billing, Validity and
Customer Care .............................................................................................................33
Table 10: Result of Regression between Customer Satisfaction and Allowance ........35
Table 11: Result of Regression between Customer Satisfaction and Expenses ..........36
Table 12: Result of Regression between Customer Satisfaction and Mobile Expenses
......................................................................................................................................37
viii
List of Figures
Figure 1: Conceptual Framework of the Research ......................................................15
Figure 2: Pie Chart of Weekly Allowances .................................................................18
Figure 3: Pie Chart of Weekly Expenses.....................................................................19
Figure 4: Pie Chart Representation of Weekly Mobile Services Expenses.................20
Figure 5: Pie Chart Representation of Mobile Service Providers................................21
Figure 6: Pie Chart Representation of Overall Customer Satisfaction ........................22
ix
List of Acronyms
BBA Bachelors in Business Administration
BS Bikram Sambat
CS Customer Satisfaction
D Dissatisfied
GSM Global System of Mobile Communications
KCM Kathmandu College of Management
KUSOM Kathmandu University School of Management
NDCL Nepal Doorsanchar Company Limited
NO No Opinion
NTC Nepal Telecom Corporation
S Satisfied
SMS Short Message Service
SPSS Statistical Package for Social Sciences
UTL United Telecom Limited
VD Very Dissatisfied
VS Very Satisfied
1
Chapter I: Introduction
1.1. Background of the Research
The mobile telecommunication industry is one of the thriving service industries of the
modern day world. With the up-surging importance of information in the day to day
activities, this industry is also expanding swiftly. With this swift change, the mobile
telecommunication service providers are able to provide the customers with new
advanced features and updated technology at reasonable prices. The ever growing
needs of customers have compelled the companies to go for the search of possible
developments that can be undertaken and focus on the concept of customer
satisfaction, since this is the key to maintain stability in the industry in terms of
market share.
The Global System of Mobile Communications (GSM) is a second-generation digital
technology, which was initially incorporated in Europe and in less than ten years after
its launch, it developed into world’s leading and fastest growing mobile standard
(GSM Association , 2006).
In Nepal, operation of telecommunication service dates back to B.S. 1970. However,
telecommunication service was formally provided mainly after the establishment of
‘Mohan Akashwani’ in B.S. 2005. (Telecom, Brief Introduction, 2014). After serving
the nation for 29 years, Nepal Telecommunication Corporation got transformed into
Nepal Doorsanchar Company Limited (NDCL) starting Baisakh 1, 2061. NDCL is a
state owned company registered under the Companies Act 2053 with 85%
government share. However, the company is popularly known to the general public by
the brand name Nepal Telecom (NT) as a registered trademark (Telecom, Brief
2
Introduction, 2014). Ncell (previously Mero Mobile) broke the monopoly held by the
state-owned Nepal Telecom, by building a new arena in mobile telephony services.
Despite the economic and social benefits of the mobile telecommunications to the
economy and the market of Nepal, there is not much research prospect in this sector,
unlike the developed countries, due to the lack of appropriate information. However,
it is possible that the mobile operators may have conducted satisfaction surveys and
other marketing research. Even so, the interaction with the mobile service providers
for any additional insight yielded no new information than that available in the
internet.
This absence of specific investigation in the mobile telecommunications sector may
have stopped it from creating the pool of information beneficial for its growth. The
measurement of customer satisfaction level addresses both users and public interests.
Such studies if carried out can assist in economic and social development (Turel,
2006). Therefore, there is necessity to gain more understanding in the area of
customer satisfaction.
3
1.2. Problem Statement
The telecommunication industry of Nepal is at present facing the major hurdles of
constantly increasing oligopoly market rivalry as well as the increasing customers’
expectation of the service quality. Customers have the choice of selection among the
mobile telecommunication companies based on the level of satisfaction, the degree of
affordability and the quality level of service being provided. This pattern of customer
demand and tight competition is forcing the mobile telecommunications companies to
reject the traditional customer satisfaction model and to accept new practical
strategies which will definitely enable them to take a major portion of the market
share. Thus, the objective of this research study is to identify the factors that are
prevalent among the mobile telecommunication users to exhibit the eagerness to reject
the exiting service provider and also those ready to continue with the existing mobile
service provider.
With the present scenario of modernization and entrance into information age,
students, especially who are pursuing their higher level studies are one of the most
dominant customers of the mobile telecommunication services from the social as well
as the economic aspects. The students from age group 16 to 35 are the most conscious
and well informed generation in the society. With this information in hand, there are
various perceptions of the services provided by the mobile telecommunication sector
in Nepal. This research examined the level of influence of socioeconomic and mobile
service determinants on the satisfaction level of students.
4
1.3. Objectives of the Research
The objectives of the research are:
1. Determine the major determinants for overall customer satisfaction in the
mobile telecommunication industry of Nepal for students from age group 16 to
35 residing in Kathmandu.
2. Evaluate the relationship between customer satisfaction and quality of the
network, billing, period of validity, and customer care support
3. Evaluate the relationship between customer satisfaction and various
socioeconomic behaviors of students such as weekly allowances, weekly
expenses and weekly mobile expenses.
5
1.4. Organization of the Report
This research was conducted to find out the customer satisfaction level of students of
Kathmandu from age group 16 to 35 in the telecommunications industry of Nepal.
The research is outlined in five chapters.
Chapter I starts with the introduction of the research topic including the problem
statement of the research along with the research objectives and the research
questions. This chapter describes the rationale of the research.
Chapter II intends to provide the literature review related to the topic. This section
tries to relate different concepts and ideas related to the research from different
perspective. It includes how researches have been conducted as well as what previous
researches elicit.
Chapter III describes about the research methodology and strategy used to fulfill the
research objectives. It contains the theoretical framework as the foundation for the
research as well as includes the description of the collection and analysis tools along
with justification of the sample chosen for the data collection.
Chapter IV sets analysis of the data collection from the field to be used for the
findings in the research. It covers quantitative and qualitative data analysis method for
the research analysis.
Chapter V includes the findings of the research from the primary and secondary data.
It also includes the reasons for the outcomes seen as well the implications that can be
observed by those situations and further sets the base for other researches. Latter part
of the research contains references and the appendices for additional perusal.
6
Chapter II: Literature Review
Customer satisfaction and its concepts and constructs have been categorized as an
essential aspect in the marketing field for a very long period. According to Keith, the
marketing is defined as the process of satisfying the requirements and desires of the
customers.(The Marketing Revolution, 1960).
As cited by Dr. Eniola, studies have shown that it requires five times the cost to gain a
new customer which is required for retaining an existing customer (Naumann, 1995).
This, thus, makes business houses and companies focus more into maintaining strong
customer relationships. Similarly, many companies both in large and small scale are
accepting the concept customer satisfaction as their operational aspect though which
they maintain an effective business framework. With this motive, companies today
have made huge investments in database mining and relationship marketing along
with customer management and planning to have good relationships with its
customers. (Feciková, 57 - 66) Thus, it is generalizable that the main objective for
companies today is maintaining strong customer relationship management,
Furthermore, direct effect in the market share of companies, can be seen through
increasing customer satisfaction which leads to increased profitability, positive word
of mouth, lower marketing expenses, and significantly impact the commercial image
and existence (Pizam, 1999).
Customers are value-maximizers, thus, they estimate which will offer most value and
chose that particular product. Whether the product offers live up to the expectation or
will affect neither satisfaction nor repurchase probability (Kotler, 2000).
7
Customer delivered value is the variance between overall customer value and overall
customer cost. Further, total customer value refers to the bundle of benefits customers
expect from a given product or service. And, total customer cost refers to the bundle
of costs customers expect to incur while evaluating, using and disposing of the
products and services (Kotler, 2000).
Total customer value includes four sources: product value, service value, and personal
value along with image value. Whereas, total customer cost includes monetary cost,
time cost and energy cost along with psychic cost (Kotler, 2000).
Satisfaction is a person’s feeling of liking or frustration that results from comparing
the actual performance of a product or service to its expectations from an overall point
of view. Similarly, buyers form their expectations from past buying experience,
advice from friends and associates; and information from marketers and competitor.
(Kotler, 2000).
8
2.1. Definitions
As cited by Gekara in ‘Measurement of Consumer Satisfaction during Post Merger
Period’, the perception of customer satisfaction has been presented in two preliminary
definitional approaches: as a process and as a consequence of a consumption
experience. (Gekara, 2011)
As a process, customer satisfaction, is referred as an assessment between what was
received and what was expected. This emphasizes the perceptual, evaluative and
psychological processes which makes a contribution to customer satisfaction.
(Gekara, 2011)
2.2. Antecedents
As cited by Ode Egena, customer satisfaction is preceded by numerous causes and
these causes strongly impacts the degree of customer satisfaction. (Customer
Satisfaction in Mobile Telephony, 2013) The antecedents are:
Perceived Value
Perceived value, in simple, is the anticipated benefit which is derived from the
customers’ perception regarding the product and service. The customers’ perceived
value is derived from the tangible, psychological and social benefits. Since, the
demand for a product is affected by the above benefits, the perceived value is taken
into consideration when determining the feasibility of the prices (Customer Perceived
Value, 2014).
9
Customer Requirements and Expectations
There is a high level of interrelationship between the level of customer satisfaction
and the understanding of customer requirements and expectations (Samuel, Customer
Satisfaction in Mobile Telecommunications Industry in Nigeria, 2006). Furthermore,
the requirements and expectations of the customers are divisible into three: basic
requirements, expected requirements and excitement requirements.
First, basic requirements are the obvious requirements of customers and achieving
these requirements may not be enough for customer satisfaction. Second, expected
requirements are the significant requirements that customers are fully aware of and
satisfaction is expected in every purchase. Third, excitement requirements are
unconscious and understood requirements of clients. By recognizing and sustaining
such requirements, businesses shall have added great importance to customers and can
earn faithful clients. (Farokhian, 2011).
Service Quality
The service quality is a measurement of the subjective aspects of customer service,
which depends on the level of anticipated benefits and observed outcomes of the
service. Thus, the expectations of customers are dependent upon the service they
obtain and the capability of the service providers. At present, the business houses and
companies provide benefits in their products and service along with offerings which
also delight them in the highest manner. This approach of delighting customers is
intended to exceed the customers’ expectation. (Service Quality, 2008).
10
Complaint Management
Handling complaints, a satisfactory business practice can assure excellent customer
service in a company. Complaint management is the course of how organizations
handle, manage, respond to and report customer objections in the moment of
confusion and need of assistance. (What Is a Complaint Management System?, 2014).
Internal Satisfaction
Internal satisfaction is a phenomenon related to customers’ emotion and attitude
rather than objective measurement of satisfaction. A customer who is satisfied with a
purchased product or service hired will make regular payments; these regular
payments improve the cash flow of the business. Thus, customers who are highly
satisfied will purchase more and benefit the company’s brand image. (Total Quality
Management, 2008).
This literature review elaborates the significance of the research study to make a clear
understanding of service performance assessment by customers. The service
performance is based on their past involvements, benefits acquired, level of service
superiority and treatment of complaints and queries. Through the investigation of
quality of network, billing, period of validity and customer care support of the
telecommunication industry of Nepal, the customer satisfaction of students of
Kathmandu with the mobile telecommunication services will be measured.
11
2.3. Socioeconomic Variables and Customer Satisfaction
Socioeconomic status refers to a person's or group's situation within a categorized
community structure. It depends on a grouping of variables, including profession,
income, wealth, education, and residence. Sociologists frequently use socioeconomic
position as a means of predicting performance (Socio Economic Status, 2013).
This literature review conveys the information that consumers differ to each other in
in terms of their behavior and background; and the major determinants for this change
are the socioeconomic characteristics of the individual customer and the environment.
Thus, the need for exploration of the socio economic factors and its impact in the
customer satisfaction with respect to mobile telecommunications industry of Nepal is
highly essential. These factors are important characteristics of the general people and
it strongly affects their views, way of life and standard of living. Further, the detailed
study of the impact of these factors on the customer satisfaction of students with
mobile telecommunications services in Nepal will give accurate insights to understand
the needs and expectations of customers with various socioeconomic background and
behavior.
12
Chapter III: Methodology
In this research, the explorative and comparative research methods were employed to
meet the objectives.
1. Primary Sources:
a. In-depth Interview
b. Questionnaire Survey
c. Pilot testing
2. Secondary Source:
a. Company Profile of NTC, NCell, Smart Cell and UTL
b. Company Websites
c. Publications by Nepal Telecommunications Authority
d. Articles by Sparrow SMS and various other companies.
The purpose of this research design was to understand customer satisfaction of student
of age group 16 to 35 residing in Kathmandu with the performance of the mobile
telecommunication industry of Nepal. Similarly, it also aimed to identify factors that
influence customer satisfaction for student in Nepal regarding the services of mobile
telecommunication service providers.
The questionnaire survey consisted of questions which were based on the independent
variables: mobile services features and socioeconomic characteristics. The mobile
services features include quality of the network, billing, and period of validity and
customer care services; similarly the socioeconomic variables include weekly
allowances, weekly expenses and mobile recharge. The questions were self-
constructed and answers were based on the rating scale which varied from ‘very
satisfied’ to ‘very dis-satisfied’.
13
3.1. Sample Selection
This research was conducted by administering 150 questionnaires to students of age
group 16 to 35 of various institutions pursuing higher secondary level, bachelors
level, masters level degree and above in Kathmandu through the online sources. The
students were be targeted from various fields of study such as medicine, law,
engineering, technology, tourism and business based on convenience sampling.
3.2. Research Instrument
The research instrument used in this research study to collect the data was through the
administration of questionnaire survey to the sample selection. The questionnaire
survey form used fixed-response alternate questions that involved the respondent to
select from a fixed set of answers to every question. This type of survey method is the
most common and popular technique of primary data collection in marketing research.
(Samuel, Customer Satisfaction in Mobile Telecommunications Industry in Nigeria,
2006)
The surveys were administered randomly to the sample students through the internet
using Google forms. The use of social media sources such as Facebook was highly
useful in making contact with the samples. Information regarding the samples were
easily available through the social media sources, thus, sample selection was made
quicker.
The questionnaire which was administered is divided into two sections; I and II.
Section I has questions on socioeconomic factors and the section II includes questions
on service features, overall customer care, service performance and the service
operator. The questionnaire survey form included several questions and the options
14
for answers were very satisfied, satisfied, no opinion, dissatisfied and very
dissatisfied. For referral, the questionnaire survey form is placed at Appendix 1.
3.3. Conceptual Framework
The conceptual framework of this research examined the level of customer
satisfaction of the mobile telecommunication services of students from age group 16
to 35 residing in Kathmandu. The research aimed to explore the relationship between
customer satisfaction and specific socioeconomic variables of the students.
As cited by Dr. Samuel Eniola, in his research, previous researches on mobile
telecommunication services recommended that essential characteristics of the mobile
telecommunication services are quality of the network, billing validity and customer
care. (Samuel, Customer Satisfaction in Mobile Telecommunications Industry in
Nigeria, 2006).. Figure 1 presents the theoretical structure of this research. Hence, this
research study used these variables in its analysis.
The research sought to find the answers to whether the students of Kathmandu from
age group 16 to 35 are satisfied with the mobile telecommunication sector in Nepal,
whether socioeconomic factors such as weekly allowances, weekly expenses and
weekly mobile expenses of students has strong relationship with the level of customer
satisfaction; and if the quality of the network, billing, period of validity and customer
care support have strong relationship with customer satisfaction.
15
Source: (Samuel, Customer Satisfaction in Mobile Telecommunications Industry in Nigeria, 2006)
Figure 1: Conceptual Framework of the Research
Similarly, Figure 1 illustrates the purpose of this research to explore the level of
customer satisfaction of students of age group 16 to 35 with the factors of mobile
telecommunications industry of Nepal and socioeconomic factors.
The theoretical framework used in this research is similar to the research study
conducted by Samuel Eniola on Customer Satisfaction in Mobile
Telecommunications Industry in Nigeria.
Customer
Satisfaction
Network Availability
Billing
Period of Validity
Customer Care
Weekly Allowances
Weekly Expenses
Weekly Recharge on
Mobile Services
16
3.4. Operational Definition
Quality of network can be defined as the call quality which is perceived by
consumers. It contains call clarity while making and receiving calls and coverage of
the network.
Billing refers to the price of recharging balance and making expenses of the incurred
balance. It comprises of various types of recharge schemes and payment options.
Validity period refers to the duration wherein, after every balance recharge and due
balance payments, a customer can make calls or receive calls.
Customer care can be defined as the complaint managing systems with the capability
to get attendant quickly, response of the attendant and provide a solution along with
the customer support offered.
Customer satisfaction can be defined as an experience-based valuation assessed by the
buyer of how different his/her own anticipations regarding the overall functionality of
the facilities and the characteristics gained from the seller have been satisfied.
(Samuel, Customer Satisfaction in Mobile Telecommunications Industry in Nigeria,
2006)
17
Chapter IV: Results
4.1. Data Analysis
The responses of 150 respondents were analyzed though the SPSS 20.0 and Microsoft
Excel 2013. In the research, the descriptive statistics was applied to evaluate the
degree of customer satisfaction. The relationship between customer satisfaction; and
the mobile services characteristics and certain socioeconomic variables were analyzed
with the linear regression model. Similarly, customer satisfaction and all the mobile
services characteristics were also analyzed using the multiple regression analysis.
The descriptive frequency was cross tabulated with the dependent variable though the
SPSS package. And, the representation of the data in pie chart was done through
Microsoft Excel 2013. Similarly, Microsoft Excel was also used to code the options of
the answers though ‘Find’ and ‘Replace’ tools.
In the SPSS package, the linear regression model was used to compare the value of
the dependent variable with one or more predictors. In the results of regression
analysis, the model summary table interprets the relationship power of the dependent
variable and the model. R value symbolizes the strength of the relationship. R2
symbolizes the proportion of the variation in the dependent variable explained by the
regression. Beta value symbolizes the coefficient value of the model which states the
percentage of change in dependent variable with 1 percent change in the independent
variable. Both R and R2
, range from 0 to 1 with larger values indicating stronger
relationship (Samuel, Customer Satisfaction in Mobile Telecommunications Industry
in Nigeria, 2006). . And, significance level was taken at 95% confidence level, which
denoted the level of significance between the dependent and independent variables.
18
4.1.1. Frequency Statistics
From Figure 2 to Figure 5, the frequency statistics of the socioeconomic variables are
presented.
Weekly Allowances
Source: Field Survey
Figure 2: Pie Chart of Weekly Allowances
Figure 2 represents the fact that the majority of the sample have weekly allowances
from Rs. 101 to Rs. 1000 cumulatively holding 65% of the total sample. In contrast
only 3% of the samples have weekly allowances below 3%.
This result states that most of the students of Kathmandu from age group 16 to 35
receive weekly allowances from Rs. 101 to Rs. 1000.
Below Rs. 100 per week
3%
Rs. 101 to Rs.
500 per week
27%
Rs. 501 to Rs.
1000 per week
38%
Rs. 1001 to Rs.
2000 per week
12%
Rs. 2001 to Rs.
5000 per week
9%
Rs. 5001 and
above
11%
19
Weekly Expenses
Source: Field Survey
Figure 3: Pie Chart of Weekly Expenses
Figure 3 represents the fact that the majority of the sample have weekly expense of
Rs. 101 to Rs. 1000 cumulatively holding 65% of the total sample. In contrast only
3% of the samples have weekly expenses below 3%.
This result states that most of the students of Kathmandu from age group 16 to 35
spend weekly expenses from Rs. 101 to Rs. 1000.
Below Rs. 100 per week
3%
Rs. 101 to Rs.
500 per week
32%
Rs. 501 to Rs.
1000 per week
33%
Rs. 1001 to Rs.
2000 per week
14%
Rs. 2001 to Rs.
5000 per week
9%
Rs. 5001 and
above
9%
20
Weekly Mobile Expenses
Source: Field Survey
Figure 4: Pie Chart Representation of Weekly Mobile Services Expenses
Figure 4 represents the fact that 27% of the sample spends Rs. 100 on mobile
services. Similarly, other 22% and 23% of the sample spend Rs. 200 and Rs. 50
respectively on the weekly mobile services consumption.
This result states that most of the students of Kathmandu from age group 16 to 35
spend Rs. 50 to Rs. 200 on weekly mobile recharge.
Rs. 10
10%
Rs. 50
23%
Rs. 100
27%
Rs. 200
22%
Rs. 500
14%
Rs. 1000
2%
Rs. 2000 and
above
2%
21
Mobile Telecommunications Service Provider
Source: Field Survey
Figure 5: Pie Chart Representation of Mobile Service Providers
Figure 5 interprets the information regarding the current preference of the mobile
service providers in Nepal. The students from age group 16 to 35 of Nepal are mostly
users of Nepal Telecom which constitutes over 70% of the sample. Similarly the
students have given the secondary preference to NCell. In contrast, UTL and
SmartCell constitute a very less percentage of the total sample, cumulatively only 5%.
This result states that most of the students of Kathmandu from age 16 to 35 prefer
Nepal Telecom as their mobile service providers.
Nepal
Telecom
70%
Ncell
25%
UTL
1%
SmartCell
4%
22
4.1.2. Analysis of Customer Satisfaction
For the data analysis, the dependent variable i.e. customer satisfaction was
investigated with the descriptive frequency. Figure 6 presents the result of the
analysis of the overall customer satisfaction.
Source: Field Survey
Figure 6: Pie Chart Representation of Overall Customer Satisfaction
The pie-chart, in Figure 6, represents the results of the analysis of the students’
customer satisfaction with the mobile telecommunications services in a frequency
distribution.
This result interprets the fact that 55% of the respondents are satisfied, and 8% very
satisfied with the mobile telecommunications services in Nepal. Hence, it answers the
question of this research that students were satisfied with the mobile
telecommunication sector of Nepal. This score is highly above average because it
resembles a mobile telecommunication sector that is in a developing phase.
Very
Dissatisfied
3%
Dissatisfied
21%
No Opinion
13%
Satisfied
55%
Very Satisfied
8%
23
The interpretation of this result might be that students of Kathmandu are certainly
satisfied with the mobile service performance and its impact. The result presented that
customers are satisfied with their experiences of consumption of the mobile
telecommunication services.
This satisfaction degree might also result from lack of strong opponent companies that
the customers can compare services with. It might be also due to the fact that
respondents are in a way new to satisfaction measurement and they may not have
been able to express their perceptions accurately. Thus, there is need for continuous
measurement of customer satisfaction to accurately record the customers’ perceptions
of the mobile telecommunication services.
This result validates the fact that the students of Kathmandu are certainly satisfied
with the performance mobile telecommunication industry of Nepal. This degree of
satisfaction must have resulted due the presence of very less number of
telecommunication service providers in Nepal; these service providers are few in
number, and the price competition is at a stagnant phase. Due to this reason,
customers have to accept whatever they are being offered and are not yet susceptible
to new developments and technology in telecommunications sector. Another reason
might be that students are not able to express their perception well in terms of the
variables.
24
4.2. Customer Satisfaction among the Socioeconomic Groups
The socioeconomic variables were examined alongside customer satisfaction using
the cross tabulation of the descriptive frequency to show the assessments of customer
satisfaction among various categories of the socioeconomic variables. The result of
the investigations can be elaborated in the following tables.
Table 1: Cross Tabulation between Customer Satisfaction and Weekly Allowance
Satisfaction
Total
V.D. D N.O S V.S.
W. Allowance
Below Rs. 100 per week 0 0 1 4 0 5
Rs. 101 to Rs. 500 per week 1 8 5 23 4 41
Rs. 501 to Rs. 1000 per week 2 14 7 33 0 56
Rs. 1001 to Rs. 2000 per week 0 8 1 8 0 17
Rs. 2001 to Rs. 5000 per week 1 0 3 10 0 14
Rs. 5001 and above 1 1 2 5 8 17
Total 5 31 19 83 12 150
Source: SPSS Results from Analysis of the Responses
Table 1 represents the cross tabulated data of the weekly allowance and customer
satisfaction encountered by the respondents. The highest numbers of respondents,
which add to 33 and who received Rs. 501 to Rs. 1000 per week, were satisfied with
the mobile services. Similarly, the respondents were rarely very dissatisfied with the
mobile services despite of their differences in allowances. However, the respondents
receiving Rs. 5000 and above as allowance were very satisfied and 8 in number.
25
Table 2: Cross Tabulation between Customer Satisfaction and Weekly Expenses
Satisfaction
Total
V.D. D N.O S V.S.
W.
Expense
Below Rs. 100 per week 0 2 1 1 0 4
Rs. 101 to Rs. 500 per week 1 6 9 30 2 48
Rs. 501 to Rs. 1000 per week 2 14 5 28 1 50
Rs. 1001 to Rs. 2000 per week 0 8 1 11 2 22
Rs. 2001 to Rs. 5000 per week 1 1 2 7 2 13
Rs. 5001 and above 1 0 1 6 5 13
Total 5 31 19 83 12 150
Source: SPSS Results from Analysis of the Responses
Table 2 represents the cross tabulated data of the weekly expenses and customer
satisfaction encountered by the respondents. The highest numbers of respondent is 58,
who spent Rs.101 to Rs. 1000 per week were satisfied with the mobile services.
Similarly, the respondents were rarely very dissatisfied with the mobile services
despite of their differences in expenses. However, the respondents spending Rs. 5000
and above and who are both satisfied and very satisfied are 11 in number.
26
Table 3: Cross Tabulation between Customer Satisfaction and Mobile Expenses
Satisfaction Total
V.D. D N.O S V.S.
W. Recharge Rs. 10 0 1 1 7 7 16
Rs. 50 1 11 5 16 1 34
Rs. 100 0 6 4 27 3 40
Rs. 200 2 8 6 16 1 33
Rs. 500 1 5 2 13 0 21
Rs. 1000 0 0 0 3 0 3
Rs. 2000 and above 1 0 1 1 0 3
Total 5 31 19 83 12 150
Source: SPSS Results from Analysis of the Responses
Table 3 represents the cross tabulated data of the weekly mobile expenses and
customer satisfaction encountered by the respondents. The highest numbers of
respondents, who spent Rs.50 to Rs. 200 per week and were satisfied with the mobile
services, add to 59. Similarly, the respondents were rarely very dissatisfied with the
mobile services despite of their differences in expenses. However, the respondents
spending Rs. 10 as mobile expenses were very satisfied and 7 in number.
27
Table 4: Cross Tabulation between Customer Satisfaction and Service Providers
Satisfaction Total
V.D. D N.O S V.S.
M. Operators Nepal Telecom 4 25 16 58 2 105
Ncell 1 6 2 25 4 38
UTL 0 0 0 0 1 1
Smart Cell 0 0 1 0 5 6
Total 5 31 19 83 12 150
Source: SPSS Results from Analysis of the Responses
Table 4 represents the cross tabulated data between users of mobile services with their
level of satisfaction. The table represents that 58 of the respondents using NTC as
their mobile service providers were satisfied while 16 had no opinion and 25
expressed dissatisfaction. Similarly, 25 users of Ncell among the respondents were
satisfied with its service.
28
4.3. Factors Influencing Customer Satisfaction
For the data analysis measures, the relationship between mobile services features and
customer satisfaction were investigated by using the linear regression model. R value
varies from 0 and 1 with larger values and representing strong relationship at 95 %
confidence level. The following divisions elaborate the resulted findings:
Relationship between Customer Satisfaction and Quality of the Network
In table 5, a variation of .351 was seen in the dependent variable (customer
satisfaction) as predicted by the independent variable (quality of the network). It is
seen that the predictor variable of quality of the network is significant because its p-
value is 0.000. Similarly, customer satisfaction is expected to increase by .593 when
the quality of the network increases by one.
These findings specify that there is a moderate relationship between customer
satisfaction and quality of the network. This finding means that quality of the
network has moderate significance over mobile services features in students of
Kathmandu. Since, Kathmandu is a crowded location; the network is at times
unmanageable and faces disturbances in the calls.
Table 5: Result of Regression Analysis between CS and Quality of the Network
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .593a
.351 .347 .819
a. Predictors: (Constant), Network
29
Coefficients
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
P ValueB Std. Error Beta
1 (Constant) 1.677 .208 8.067 .000
Network .545 .061 .593 8.956 .000
a. Dependent Variable: Satisfaction
Source: SPSS Results from Analysis of the Responses
Relationship between Customer Satisfaction and Billing
In table 6, a variation of .186 was seen in the dependent variable (customer
satisfaction) as predicted by the independent variable (billing). It is seen that the
predictor variable of billing is significant because its p-value is 0.000. Similarly,
customer satisfaction is expected to increase by .593 when billing increases by one.
These outcomes validate that there is a moderately weak relationship between billing
and customer satisfaction. This finding means that billing has moderately negligible
significance over mobile services features in students of Kathmandu. The reason for
his might be due to the fact that the tariffs which are offered by the mobile service
providers are not very affordable and the services in regards to billing are not
adequate, since there are a lot of internet call applications which gives free voice calls
over the internet.
30
Table 6: Result of Regression between Customer Satisfaction and Billing
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .431a
.186 .180 .917
a. Predictors: (Constant), Billing
Coefficients
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
P ValueB Std. Error Beta
1 (Constant) 2.299 .210 10.938 .000
Billing .371 .064 .431 5.813 .000
a. Dependent Variable: Satisfaction
Source: SPSS Results from Analysis of the Responses
Relationship between Customer Satisfaction and Period of Validity
In table 7, a variation of .142 was seen in the dependent variable (customer
satisfaction) as predicted by the independent variable (validity period). It is seen that
the predictor variable of validity period is significant because its p-value is 0.000.
Similarly, customer satisfaction is expected to increase by .377 when validity period
increases by one.
These findings validate that there is a weak relationship between the period of validity
and customer satisfaction. The irrelevance of this finding also means that period of
validity has negligible significance over mobile services features in students of
Kathmandu. The reason for this might be due to the fact that the period of validity
31
offered by the mobile telecommunications service providers is very less and the
expiry date is stipulated in every schemes.
Table 7: Result of Regression between Customer Satisfaction and Validity
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .377a
.142 .136 .942
a. Predictors: (Constant), Validity
Coefficients
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
P ValueB Std. Error Beta
1 (Constant) 2.183 .265 8.226 .000
Validity .352 .071 .377 4.947 .000
a. Dependent Variable: Satisfaction
Source: SPSS Results from Analysis of the Responses
Relationship between Customer Satisfaction and Customer Care Support
In table 8, a variation of .204 was seen in the dependent variable (customer
satisfaction) as predicted by the independent variable (customer care). It is seen that
the predictor variable of customer care is significant because its p-value is 0.000.
Similarly, customer satisfaction is expected to increase by .451 when customer care
increases by one.
32
The result determines that there is a moderately weak relationship between customer
care and customer satisfaction. The inference of this result is that customer care
service has negligible significance over mobile services features in Nepal. The reason
for this might be due to the fact that mobile service providers in Nepal do not offer
good customer relationship management and the complaint handling is very tiresome
and requires a long time.
Table 8: Result of Regression between Customer Satisfaction and Customer Care
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .451a
.204 .198 .907
a. Predictors: (Constant), Customer Care
Coefficients
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
P ValueB Std. Error Beta
1 (Constant) 2.190 .216 10.124 .000
Customer Care .406 .066 .451 6.150 .000
a. Dependent Variable: Satisfaction
Source: SPSS Results from Analysis of the Responses
33
Relationship between Customer Satisfaction and Quality of the Network,
Validity, Billing, and Customer Care Support
In table 9, a variation of .457 was seen in the dependent variable (customer
satisfaction) as predicted by the independent variable (quality of the network, validity,
billing and customer care). It is seen that the predictor variable of quality of the
network, validity and customer is significant because its p-value is less than 0.05
whereas billing is insignificant because its p-value is greater than 0.05. Similarly,
customer satisfaction is expected to increase by 0.388, 0.141, 0.171 and 0.226 when
the quality of the network, billing validity and customer care increases by one.
The result validates that the interaction of the mobile services features have a
moderately weak relationship with customer satisfaction. The interpretation of this
result is that the associated mobile services features is adequately significant to the
assessment of the customer satisfaction with mobile services. Therefore, customer
satisfaction in regards to mobile telecommunications services in Nepal is a purpose of
the assessment of quality of the network, billing, and period of validity and customer
care service. Thus, mobile service providers should emphasize on improving mobile
services characteristics to enhance customer satisfaction.
Table 9: Result of Regression between CS and Network, Billing, Validity and Customer Care
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .676a
.457 .442 .757
a. Predictors: (Constant), Customer Care, Billing, Validity, Network
34
Coefficients
Model Unstandardized Coefficients Standardized Coefficients T Sig.
P ValueB Std. Error Beta
1 (Constant) .716 .269 2.664 .009
Network .356 .071 .388 5.042 .000
Billing .121 .063 .141 1.938 .055
Validity .160 .061 .171 2.604 .010
Customer Care .203 .061 .226 3.328 .001
a. Dependent Variable: Satisfaction
Source: SPSS Results from Analysis of the Responses
4.4. Relationship between Customer Satisfaction and Socioeconomic
Variables
Similarly, for the further data analysis measures, the relationship between socio
economic variables and customer satisfaction were investigated by using the linear
regression model. R value varies from 0 and 1 with larger values and representing
strong relationship at 95 % confidence level. The following divisions elaborate the
resulted findings.
Relationship between Customer Satisfaction and Weekly Allowances
In table 10, a variation of .011 was seen in the dependent variable (customer
satisfaction) as predicted by the independent variable (weekly allowance). It is seen
that the predictor variable of weekly allowance is insignificant because its p-value is
greater than 0.05. Similarly, customer satisfaction is expected to increase by .104
when the weekly allowance increases by one.
35
These findings reveal that there is a very weak relationship between weekly allowance
and customer satisfaction and hence, the interpretation of the result is that weekly
allowance has an insignificant impact on customer satisfaction. The reason for this
might be due to the fact that students receive limited allowance and would rather
spend it more on other consumptions rather than mobile services, and thus are
dissatisfied.
Table 10: Result of Regression between Customer Satisfaction and Allowance
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .104a
.011 .004 1.011
a. Predictors: (Constant), W. Allowance
Coefficients
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
P ValueB Std. Error Beta
1 (Constant) 3.184 .218 14.606 .000
W. Allowance .078 .061 .104 1.268 .207
a. Dependent Variable: Satisfaction
Source: SPSS Results from Analysis of the Responses
Relationship between Customer Satisfaction and Weekly Expenses
In table 11, a variation of .020 was seen in the dependent variable (customer
satisfaction) as predicted by the independent variable (weekly expenses). It is seen
that the predictor weekly expense is insignificant because its p-value is greater than
36
0.05. Similarly, customer satisfaction is expected to increase by .140 when the weekly
expense increases by one.
The result demonstrates that there is a weak relationship between weekly expense and
customer satisfaction. This means that weekly expense has negligible influence on
customer satisfaction. The reason for this might be due to the fact that students in
Nepal, put less emphasis on consumption of mobile services although they spend high
amount of money on other personal services.
Table 11: Result of Regression between Customer Satisfaction and Expenses
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .140a
.020 .013 1.007
a. Predictors: (Constant), W. Expense
Coefficients
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
P ValueB Std. Error Beta
1 (Constant) 3.087 .221 13.994 .000
W. Expense .110 .064 .140 1.724 .087
a. Dependent Variable: Satisfaction
Source: SPSS Results from Analysis of the Responses
37
Relationship between Customer Satisfaction and Purchase of Recharge Cards
In table 12, a variation of .029 was seen in the dependent variable (customer
satisfaction) as predicted by the independent variable (weekly recharge). It is seen that
the predictor variable of weekly recharge is significant because its p-value is 0.039.
Similarly, customer satisfaction is expected to decrease by .169 when the weekly
recharge increases by one.
The result demonstrates that there is a very weak and inverse relationship between
expenses on recharge cards and customer satisfaction and hence. This insignificance
means that expenses on recharge cards have negligible influence on customer
perception of mobile services performance. The reason for this might be due to the
fact that students in Nepal, are getting familiar with free internet communication
services as an alternative of mobile services. So students spend less on mobile
telecommunication services.
Table 12: Result of Regression between Customer Satisfaction and Mobile Expenses
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .169a
.029 .022 1.002
a. Predictors: (Constant), W. Recharge
38
Coefficients
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
P ValueB Std. Error Beta
1 (Constant) 3.837 .207 18.524 .000
W. Recharge -.124 .059 -.169 -2.085 .039
a. Dependent Variable: Satisfaction
Source: SPSS Results from Analysis of the Responses
39
Chapter V: Summary, Discussions, and Implications
5.1. Summary
This study was initiated with the intention to examine the level of satisfaction of
customers with the mobile telecommunications industry. Here, the customers
primarily imply students between the age group of 16 to 35 years of Kathmandu,
Nepal. The research further attempts to identify the determinants influencing
contentment with the mobile service providers and the extent of association with
various socioeconomic variables.
As per the research undertaken in regard to the investigation and analysis of the level
of customer satisfaction, the outcomes established the fact that the customers were
contented with the service provided by the mobile telecommunications industry and
its performance in Nepal. Within the groups segmented on the basis of weekly
allowance, the majority of customers who received allowance between Rs. 500 to Rs.
1000 were comparatively more satisfied than those who received weekly allowances
less than Rs. 500. Similarly, there is dominance of satisfied students in the category of
those who spent Rs. 100 to Rs. 1000 as their weekly expenses than those who spent
below or above that range. Lastly, larger number of students who recharged their
mobile accounts with Rs. 50 to Rs. 200 was found to be more satisfied than those who
spent above or below that range; while only few of the respondents expressed higher
level of satisfaction as regards to this aspect. In totality, however, these three
socioeconomic variables seem to have low influence on satisfaction because even the
respondents mentioned as majority above seemed to be only moderately satisfied with
these factors.
40
Among the mobile service features that were identified to have impact on the level of
customer satisfaction, quality of the network demonstrated to have highest impact
amongst others. In contrast, billing, customer care and period of validity showed
relatively weak influence on customer satisfaction. The results indicate that the four
features of mobile service have low significance on the level of customer satisfaction.
The results, thus, validated that customer satisfaction level varied among diverse
socioeconomic groups. For this very reason, mobile service providers need to
improve, better comprehend these market fragments and customize their services as
much as possible to meet the expectations of the diverse socioeconomic groups in
order to take maximum advantage out of customer satisfaction which in turn can help
retain customers and induce a sense of loyalty among them.
5.2. Discussions
From the research findings, we could make number of inferences regarding the
various results that the research has concluded. Firstly, the reason for the customers
being satisfied with their mobile telecommunications service providers could be that
the students of Kathmandu were in fact pleased with the service performance or it
could be because of the lack of availability of alternative service providers in the
industry.
Secondly, the low level of satisfaction among the students who received less than Rs.
500 could be because of the less talk time and recharge cards they could purchase
with that amount of money given that they had to spend it on other weekly
expenditures. Thirdly, the high satisfaction level among the students who spent Rs.
100 to Rs. 1000 as their weekly expense could be because of the belief and
contentment that the service they were being provided was worth the amount they
41
were paying. The same reason could be inferred for the high level of satisfaction
among the students who recharged their mobile accounts with Rs. 50 to Rs. 200.
Moreover, the reason for the quality of the network being considered as the most
significant determinant for customer satisfaction could be because customers do not
want their calls to be interrupted in between, sought for clarity during calls and prefer
service that has wide network coverage. The other mobile service features do not
seem to have much influence on customer satisfaction as much as quality of the
network. Today, in the age of technology, people prefer internet to mobile services for
communication purpose as it is cheaper and billing has become easier through online
payment systems. Also validity period do not seem to have positive impact on
customers as the prepaid cards have short validity periods with expiry dates. Lastly,
talking about the customer care, the reason for this feature having low impact could
be that not only mobile telecommunications industry but even other industries do not
have proper, quick and effective customer care services; so people tend to neglect this
aspect.
Overall, the changing structure of Nepalese society and advancement in internet and
telecommunications services could be considered as the reasons for the low level of
satisfaction among the customers of mobile telecommunications industry.
5.3. Implications
Mostly, the inference of this research study for mobile service providers is that the
mobile operators must not just rely on profit margins for a good indicator of business
outcomes. They should, rather, develop strategies that better capture student’s
expectations of their service offerings. Such strategies help businesses to match their
42
performance against customer standards, compare consumer standards against internal
process and identify prospects for improvement.
In addition, to maximize customer satisfaction, mobile service providers must
emphasize on refining mobile services features by investing in equipment to enhance
call quality and exposure, offer rational appraising and price reductions, offer
reasonable period of validity and enhance customer care through routine personnel
training and provision of better customer-friendly equipment.
Lastly, for the improvement of customer satisfaction, particularly for students, in the
mobile telecommunications industry, there is requirement for collaboration between
academic organizations and mobile service providers in order to achieve better
customer-oriented mobile services.
43
References
(2006). Retrieved from GSM Association : www.gsmworld.com
Customer Perceived Value. (2014). Retrieved from Business Dictionary:
http://www.businessdictionary.com/definition/customer-perceived-value.html
Customer Satisfaction in Mobile Telephony. (2013). Asian Journal of Management
Research.
Farokhian, H. V. (2011). Customer Satisfaction Modeling (CSM) in Product
Planning. World Applied Sciences Journal, 1095.
Feciková, I. (57 - 66). An index method for measurement of customer satisfaction.
2004: Emerald Group Publishing Limited.
Gekara, D. A. (2011). Measurement of Consumer Satisfaction During Post Merger
Period. Udaipur: Int.J.Buss.Mgt.Eco.Res.
Kotler, P. (2000). Customer Satisfaction. In P. Kotler, Fundamental of Marketing (10
edition ed.).
Lonergan, D. S. (2004). Asia-Pacific Region to drive global wireless revenue. Boston,
MA, USA: The Yankee Group Report.
Naumann, E. (1995). Customer Satisfaction Measurement and Management: Using
the Voice of the Customer. Cincinati OH: Thomson Executive Press.
Pizam, A. a. (1999). Customer satisfaction and its measurement in hospitality
enterprises . International Journal of Contemporary Hospitality Management ,
326-339.
44
Samuel, D. E. (2006). Customer Satisfaction in Mobile Telecommunications Industry
in Nigeria. Nigeria.
Service Quality. (2008). Retrieved from Wikipedia:
http://en.wikipedia.org/wiki/Service_quality
Socio Economic Status. (2013). Retrieved from Dictionary.com:
http://dictionary.reference.com/browse/socioeconomic+status
Telecom, N. (2014). Brief Introduction. Retrieved from NTC.NET:
http://www.ntc.net.np/companyInfo/ntBrief.php
Telecom, N. (2014). Telecommunications in Nepal. Retrieved from Wkipedia:
http://en.wikipedia.org/wiki/Telecommunications_in_Nepal
The Marketing Revolution. (1960). Journal of Marketing.
Total Quality Management. (2008). Retrieved from WordPress:
http://totalqualitymanagement.wordpress.com/2008/09/12/customer-focus-
and-satisfaction/
Turel, O. a. (2006). Satisfaction with mobile services in Canada: An empirical
investigation. In Telecommunications Policy 30 (pp. pp.314–331).
What Is a Complaint Management System? (2014). Retrieved from eHow:
http://www.ehow.com/facts_6401656_complaint-management-system_.html
45
Appendix
Appendix 1: Questionnaire Format
1. What is your average weekly allowance?
The amount of money you either receive from your parents as pocket money or you
earn as income.
o Below Rs. 100 per week
o Rs. 101 to Rs. 500 per week
o Rs. 501 to Rs. 1000 per week
o Rs. 1001 to Rs. 2000 per week
o Rs. 2001 to Rs. 5000 per week
o Rs. 5001 and above
2. What is your weekly average expense?
The amount of money you spend on a personal basis on average. Example: Money
spent in restaurants, movies, games, hangouts, fuel expenses and other daily personal
expenses.
o Below Rs. 100 per week
o Rs. 101 to Rs. 500 per week
o Rs. 501 to Rs. 1000 per week
o Rs. 1001 to Rs. 2000 per week
o Rs. 2001 to Rs. 5000 per week
o Rs. 5001 and above
3. How much do you spend on weekly on the recharge of mobile
telecommunications?
This refers to the average amount of balance you recharge every week.
o Rs. 10
o Rs. 50
o Rs. 100
o Rs. 200
o Rs. 500
46
o Rs. 1000
o Rs. 2000 and above
4. Which of the mobile service providers do you subscribe to
o Nepal Telecom
o NCell
o UTL
o SmartCell
5. Are you satisfied with the QUALITY OF THE NETWORK of the service
provider?
Quality of the network refers to the call quality as perceived by customers and
includes; call clarity when calling and receiving and the coverage.
o Very Satisfied
o Satisfied
o No Opinion
o Dissatisfied
o Very Dissatisfied
6. Are you satisfied with the BILLING of the service provider?
Billing refers to the cost, variety, affordability, freedom of choosing the recharge
cards and speed of recharging.
o Very Satisfied
o Satisfied
o No Opinion
o Dissatisfied
o Very Dissatisfied
7. Are you satisfied with the VALIDITY period of the service provider?
Validity refers to the period in which you can make calls and or receive calls after
every recharge.
o Very Satisfied
o Satisfied
o No Opinion
o Dissatisfied
47
o Very Dissatisfied
8. When you call to complain or query anything, how satisfied are you with the
OVERALL CUSTOMER CARE SERVICE?
Overall customer care service refers to the medium of service, value and facilities of
customer care provided.
o Very Satisfied
o Satisfied
o No Opinion
o Dissatisfied
o Very Dissatisfied
9. Overall, how satisfied are you with the use of this service?
Are your expectations of the service you are paying for being met?
o Very Satisfied
o Satisfied
o No Opinion
o Dissatisfied
o Very Dissatisfied
48
Appendix 2: Frequency Table of Weekly Allowances
Response Frequency Percentage Cumulative %
Below Rs. 100 per week 5 3% 3.33%
Rs. 101 to Rs. 500 per week 41 27% 30.67%
Rs. 501 to Rs. 1000 per week 56 38% 68.00%
Rs. 1001 to Rs. 2000 per week 17 12% 79.33%
Rs. 2001 to Rs. 5000 per week 14 9% 88.67%
Rs. 5001 and above 17 11% 100.00%
49
Appendix 3: Frequency Table of Weekly Expenses
Response Frequency Percentage Cumulative %
Below Rs. 100 per week 4 3% 2.67%
Rs. 101 to Rs. 500 per week 48 32% 34.67%
Rs. 501 to Rs. 1000 per week 50 33% 68.00%
Rs. 1001 to Rs. 2000 per week 22 14% 82.67%
Rs. 2001 to Rs. 5000 per week 13 9% 91.33%
Rs. 5001 and above 13 9% 100.00%
50
Appendix 4: Frequency Table of Weekly Mobile Services Expenses
Response Frequency Percentage Cumulative %
Rs. 10 16 10% 10.67%
Rs. 50 34 23% 33.33%
Rs. 100 40 27% 60.00%
Rs. 200 33 22% 82.00%
Rs. 500 21 14% 96.00%
Rs. 1000 3 2% 98.00%
Rs. 2000 and above 3 2% 100.00%
51
Appendix 5: Frequency Table of Mobile Service Providers
Response Frequency Percentage Cumulative %
Nepal Telecom 105 70 70.00%
Ncell 38 25 95.33%
UTL 1 1 96.00%
SmartCell 6 4 100.00%
52
Appendix 6: Frequency Table of Customer Satisfaction
Response Frequency Percentage Cumulative %
Very Dissatisfied 5 3% 3.33%
Dissatisfied 31 21% 24.00%
No Opinion 19 13% 36.67%
Satisfied 83 55% 92.00%
Very Satisfied 12 8% 100.00%

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Factors Affecting Customer Satisfaction in Telecommunication Sector in Nepal

  • 1. Factors Influencing Customer Satisfaction In Mobile Telecommunications Industry of Nepal Business Research Project Report Submitted to Kathmandu University In partial fulfillment of the requirements for the Bachelor of Business Administration By Ayush Man Tamrakar A011935-10 Under the supervision of Ritesh Kumar Thakur, Faculty of Statistics June, 2014
  • 2. i Declaration I, the undersigned declare that this research project is a result of my study carried out in the year 2014. It has not been previously submitted to any other university or any other examinations. Signature Ayush Man Tamrakar BBA 2010-2014 KU Registration: A011935-10 Kathmandu College of Management
  • 3. ii Acknowledgement I would like to express my gratitude to all those who gave me the opportunity to explore and complete this research study. First and foremost, I would like to thank Kathmandu University School of Management (KUSOM) for providing this excellent research opportunity to the students of undergraduate Bachelors in Business Administration (BBA) program. I express my special gratitude to my academic supervisor, Mr. Madhu Sudan Gautam. It was his encouragement, patience, and valuable feedback that enabled me to complete this work. I am also deeply indebted to my research supervisor, Ritesh Kumar Thakur. The support that he provided motivated me to think more broadly about the associated concepts and constructs, and helped expand my understanding of research as a discipline. Invaluable discussions we held stimulated my enthusiasm and imagination in the research process. I would also like to give my sincere gratitude to Ms. Jashmina Pradhananga and all my friends and colleagues who supported me with the information required to complete this research effectively. Likewise, I thank all the respondents who filled in the survey, without which this research would be incomplete. This project would not have been possible without the kind support and help of many individuals. I would like to extend my sincere thanks to all of them.
  • 4. iii Executive Summary In the present customer driven market, the concept of customer satisfaction is regarded as a fundamental marketing concept in any kind of business. Previously, it used to be an unpopular and overlooked concept; and business houses and companies were hind-sighted with the motive to widen the customer base than to retain the existing customers. However, today the same business houses and companies have begun to shift their focus on incorporating customer relationship management to sustain their business. With the inclusion of customer relationship management as an independent unit in the organization structure, the businesses have encompassed the responsibility of delivering customer satisfaction in their priority zone. The need of this customer relationship management and the fulfillment of the expectations of the customers cannot be neglected in the mobile telecommunications industry. With the on-going modernization and in the age of information, the students, especially those pursuing their higher level studies are one of the most dominant customers in the mobile telecommunication industry from the social as well as the economic facets. The students of age group 16 to 35 are the most aware and well informed generation in the society. With the quick access to information about the mobile telecommunications service around the world and high expectations from the service providers, these students have a mixture of perceptions about the services provided by the mobile telecommunication sector in Nepal. This diverse nature of perception held by the students is the reason behind this investigation on the influence of socio-economic and service factors on the satisfaction level of students. This research follows the definition of customer satisfaction as an experience-based assessment of the customer through the difference in his/her own anticipations
  • 5. iv regarding the overall functionality of the services and fulfillment of the service obtained from the seller. The research’s antecedents, which refer to the cause elements, include buyer requirements and anticipations, service quality, observed assessment, internal fulfillment and complaint administration. This research study was conducted by administering 150 questionnaires to students of age group 16 to 35 pursuing higher secondary level in various disciplines, bachelors level, masters level and above in Kathmandu through the online social media sources. The questionnaire survey administered to the respondents was divided into two sections. Section I includes questions on socioeconomic factors; and section II covers questions on service features, service performance and overall customer care. From the results obtained from the research, it was revealed that 55% of the respondents are satisfied and 8% of the respondents are highly satisfied with the mobile telecommunications industry of Nepal. The findings showed that the grouping of the mobile service features exhibited a moderate relationship with satisfaction while the socioeconomic variables demonstrated a very weak relationship. Based on the findings of this research, the implication that can be drawn for mobile service providers is that, there is a need to improve and customize their services in order to achieve higher level of customer satisfaction. It can be affirmed that through the enhancement of the features of the mobile telecommunication services, the level of customer satisfaction can be increased effectively. Along with this, the mobile service providers must create segments in the market to formulate plans and policies to fulfill the requirements of its demographically diversified customers and enhance the level of customer satisfaction through customization and better service quality.
  • 6. v Table of Contents Declaration......................................................................................................................i Acknowledgement .........................................................................................................ii Executive Summary..................................................................................................... iii Table of Contents...........................................................................................................v List of Tables ...............................................................................................................vii List of Figures............................................................................................................ viii List of Acronyms ..........................................................................................................ix Chapter I: Introduction...................................................................................................1 1.1. Background of the Research ...........................................................................1 1.2. Problem Statement ..........................................................................................3 1.3. Objectives of the Research..............................................................................4 1.4. Organization of the Report..............................................................................5 Chapter II: Literature Review ........................................................................................6 2.1. Definitions...........................................................................................................8 2.2. Antecedents.........................................................................................................8 2.3. Socioeconomic Variables and Customer Satisfaction.......................................11 Chapter III: Methodology ............................................................................................12 3.1. Sample Selection...............................................................................................13 3.2. Research Instrument..........................................................................................13 3.3. Conceptual Framework .................................................................................14
  • 7. vi 3.4. Operational Definition...................................................................................16 Chapter IV: Results......................................................................................................17 4.1. Data Analysis........................................................................................................17 4.2. Customer Satisfaction among the Socioeconomic Groups...................................24 4.3. Factors Influencing Customer Satisfaction...........................................................28 4.4. Relationship between Customer Satisfaction and Socioeconomic Variables.......34 Chapter V: Summary, Discussions, and Implications .................................................39 5.1. Summary ...........................................................................................................39 5.2. Discussions........................................................................................................40 5.3. Implications.......................................................................................................41 References....................................................................................................................43 Appendix......................................................................................................................45 Appendix 1: Questionnaire Format..........................................................................45 Appendix 2: Frequency Table of Weekly Allowances ............................................48 Appendix 3: Frequency Table of Weekly Expenses ................................................49 Appendix 4: Frequency Table of Weekly Mobile Services Expenses.....................50 Appendix 5: Frequency Table of Mobile Service Providers....................................51 Appendix 6: Frequency Table of Customer Satisfaction .........................................52
  • 8. vii List of Tables Table 1: Cross Tabulation between Customer Satisfaction and Weekly Allowance...24 Table 2: Cross Tabulation between Customer Satisfaction and Weekly Expenses.....25 Table 3: Cross Tabulation between Customer Satisfaction and Mobile Expenses......26 Table 4: Cross Tabulation between Customer Satisfaction and Service Providers.....27 Table 5: Result of Regression Analysis between CS and Quality of the Network......28 Table 6: Result of Regression between Customer Satisfaction and Billing ................30 Table 7: Result of Regression between Customer Satisfaction and Validity ..............31 Table 8: Result of Regression between Customer Satisfaction and Customer Care ...32 Table 9: Result of Regression between CS and Network, Billing, Validity and Customer Care .............................................................................................................33 Table 10: Result of Regression between Customer Satisfaction and Allowance ........35 Table 11: Result of Regression between Customer Satisfaction and Expenses ..........36 Table 12: Result of Regression between Customer Satisfaction and Mobile Expenses ......................................................................................................................................37
  • 9. viii List of Figures Figure 1: Conceptual Framework of the Research ......................................................15 Figure 2: Pie Chart of Weekly Allowances .................................................................18 Figure 3: Pie Chart of Weekly Expenses.....................................................................19 Figure 4: Pie Chart Representation of Weekly Mobile Services Expenses.................20 Figure 5: Pie Chart Representation of Mobile Service Providers................................21 Figure 6: Pie Chart Representation of Overall Customer Satisfaction ........................22
  • 10. ix List of Acronyms BBA Bachelors in Business Administration BS Bikram Sambat CS Customer Satisfaction D Dissatisfied GSM Global System of Mobile Communications KCM Kathmandu College of Management KUSOM Kathmandu University School of Management NDCL Nepal Doorsanchar Company Limited NO No Opinion NTC Nepal Telecom Corporation S Satisfied SMS Short Message Service SPSS Statistical Package for Social Sciences UTL United Telecom Limited VD Very Dissatisfied VS Very Satisfied
  • 11. 1 Chapter I: Introduction 1.1. Background of the Research The mobile telecommunication industry is one of the thriving service industries of the modern day world. With the up-surging importance of information in the day to day activities, this industry is also expanding swiftly. With this swift change, the mobile telecommunication service providers are able to provide the customers with new advanced features and updated technology at reasonable prices. The ever growing needs of customers have compelled the companies to go for the search of possible developments that can be undertaken and focus on the concept of customer satisfaction, since this is the key to maintain stability in the industry in terms of market share. The Global System of Mobile Communications (GSM) is a second-generation digital technology, which was initially incorporated in Europe and in less than ten years after its launch, it developed into world’s leading and fastest growing mobile standard (GSM Association , 2006). In Nepal, operation of telecommunication service dates back to B.S. 1970. However, telecommunication service was formally provided mainly after the establishment of ‘Mohan Akashwani’ in B.S. 2005. (Telecom, Brief Introduction, 2014). After serving the nation for 29 years, Nepal Telecommunication Corporation got transformed into Nepal Doorsanchar Company Limited (NDCL) starting Baisakh 1, 2061. NDCL is a state owned company registered under the Companies Act 2053 with 85% government share. However, the company is popularly known to the general public by the brand name Nepal Telecom (NT) as a registered trademark (Telecom, Brief
  • 12. 2 Introduction, 2014). Ncell (previously Mero Mobile) broke the monopoly held by the state-owned Nepal Telecom, by building a new arena in mobile telephony services. Despite the economic and social benefits of the mobile telecommunications to the economy and the market of Nepal, there is not much research prospect in this sector, unlike the developed countries, due to the lack of appropriate information. However, it is possible that the mobile operators may have conducted satisfaction surveys and other marketing research. Even so, the interaction with the mobile service providers for any additional insight yielded no new information than that available in the internet. This absence of specific investigation in the mobile telecommunications sector may have stopped it from creating the pool of information beneficial for its growth. The measurement of customer satisfaction level addresses both users and public interests. Such studies if carried out can assist in economic and social development (Turel, 2006). Therefore, there is necessity to gain more understanding in the area of customer satisfaction.
  • 13. 3 1.2. Problem Statement The telecommunication industry of Nepal is at present facing the major hurdles of constantly increasing oligopoly market rivalry as well as the increasing customers’ expectation of the service quality. Customers have the choice of selection among the mobile telecommunication companies based on the level of satisfaction, the degree of affordability and the quality level of service being provided. This pattern of customer demand and tight competition is forcing the mobile telecommunications companies to reject the traditional customer satisfaction model and to accept new practical strategies which will definitely enable them to take a major portion of the market share. Thus, the objective of this research study is to identify the factors that are prevalent among the mobile telecommunication users to exhibit the eagerness to reject the exiting service provider and also those ready to continue with the existing mobile service provider. With the present scenario of modernization and entrance into information age, students, especially who are pursuing their higher level studies are one of the most dominant customers of the mobile telecommunication services from the social as well as the economic aspects. The students from age group 16 to 35 are the most conscious and well informed generation in the society. With this information in hand, there are various perceptions of the services provided by the mobile telecommunication sector in Nepal. This research examined the level of influence of socioeconomic and mobile service determinants on the satisfaction level of students.
  • 14. 4 1.3. Objectives of the Research The objectives of the research are: 1. Determine the major determinants for overall customer satisfaction in the mobile telecommunication industry of Nepal for students from age group 16 to 35 residing in Kathmandu. 2. Evaluate the relationship between customer satisfaction and quality of the network, billing, period of validity, and customer care support 3. Evaluate the relationship between customer satisfaction and various socioeconomic behaviors of students such as weekly allowances, weekly expenses and weekly mobile expenses.
  • 15. 5 1.4. Organization of the Report This research was conducted to find out the customer satisfaction level of students of Kathmandu from age group 16 to 35 in the telecommunications industry of Nepal. The research is outlined in five chapters. Chapter I starts with the introduction of the research topic including the problem statement of the research along with the research objectives and the research questions. This chapter describes the rationale of the research. Chapter II intends to provide the literature review related to the topic. This section tries to relate different concepts and ideas related to the research from different perspective. It includes how researches have been conducted as well as what previous researches elicit. Chapter III describes about the research methodology and strategy used to fulfill the research objectives. It contains the theoretical framework as the foundation for the research as well as includes the description of the collection and analysis tools along with justification of the sample chosen for the data collection. Chapter IV sets analysis of the data collection from the field to be used for the findings in the research. It covers quantitative and qualitative data analysis method for the research analysis. Chapter V includes the findings of the research from the primary and secondary data. It also includes the reasons for the outcomes seen as well the implications that can be observed by those situations and further sets the base for other researches. Latter part of the research contains references and the appendices for additional perusal.
  • 16. 6 Chapter II: Literature Review Customer satisfaction and its concepts and constructs have been categorized as an essential aspect in the marketing field for a very long period. According to Keith, the marketing is defined as the process of satisfying the requirements and desires of the customers.(The Marketing Revolution, 1960). As cited by Dr. Eniola, studies have shown that it requires five times the cost to gain a new customer which is required for retaining an existing customer (Naumann, 1995). This, thus, makes business houses and companies focus more into maintaining strong customer relationships. Similarly, many companies both in large and small scale are accepting the concept customer satisfaction as their operational aspect though which they maintain an effective business framework. With this motive, companies today have made huge investments in database mining and relationship marketing along with customer management and planning to have good relationships with its customers. (Feciková, 57 - 66) Thus, it is generalizable that the main objective for companies today is maintaining strong customer relationship management, Furthermore, direct effect in the market share of companies, can be seen through increasing customer satisfaction which leads to increased profitability, positive word of mouth, lower marketing expenses, and significantly impact the commercial image and existence (Pizam, 1999). Customers are value-maximizers, thus, they estimate which will offer most value and chose that particular product. Whether the product offers live up to the expectation or will affect neither satisfaction nor repurchase probability (Kotler, 2000).
  • 17. 7 Customer delivered value is the variance between overall customer value and overall customer cost. Further, total customer value refers to the bundle of benefits customers expect from a given product or service. And, total customer cost refers to the bundle of costs customers expect to incur while evaluating, using and disposing of the products and services (Kotler, 2000). Total customer value includes four sources: product value, service value, and personal value along with image value. Whereas, total customer cost includes monetary cost, time cost and energy cost along with psychic cost (Kotler, 2000). Satisfaction is a person’s feeling of liking or frustration that results from comparing the actual performance of a product or service to its expectations from an overall point of view. Similarly, buyers form their expectations from past buying experience, advice from friends and associates; and information from marketers and competitor. (Kotler, 2000).
  • 18. 8 2.1. Definitions As cited by Gekara in ‘Measurement of Consumer Satisfaction during Post Merger Period’, the perception of customer satisfaction has been presented in two preliminary definitional approaches: as a process and as a consequence of a consumption experience. (Gekara, 2011) As a process, customer satisfaction, is referred as an assessment between what was received and what was expected. This emphasizes the perceptual, evaluative and psychological processes which makes a contribution to customer satisfaction. (Gekara, 2011) 2.2. Antecedents As cited by Ode Egena, customer satisfaction is preceded by numerous causes and these causes strongly impacts the degree of customer satisfaction. (Customer Satisfaction in Mobile Telephony, 2013) The antecedents are: Perceived Value Perceived value, in simple, is the anticipated benefit which is derived from the customers’ perception regarding the product and service. The customers’ perceived value is derived from the tangible, psychological and social benefits. Since, the demand for a product is affected by the above benefits, the perceived value is taken into consideration when determining the feasibility of the prices (Customer Perceived Value, 2014).
  • 19. 9 Customer Requirements and Expectations There is a high level of interrelationship between the level of customer satisfaction and the understanding of customer requirements and expectations (Samuel, Customer Satisfaction in Mobile Telecommunications Industry in Nigeria, 2006). Furthermore, the requirements and expectations of the customers are divisible into three: basic requirements, expected requirements and excitement requirements. First, basic requirements are the obvious requirements of customers and achieving these requirements may not be enough for customer satisfaction. Second, expected requirements are the significant requirements that customers are fully aware of and satisfaction is expected in every purchase. Third, excitement requirements are unconscious and understood requirements of clients. By recognizing and sustaining such requirements, businesses shall have added great importance to customers and can earn faithful clients. (Farokhian, 2011). Service Quality The service quality is a measurement of the subjective aspects of customer service, which depends on the level of anticipated benefits and observed outcomes of the service. Thus, the expectations of customers are dependent upon the service they obtain and the capability of the service providers. At present, the business houses and companies provide benefits in their products and service along with offerings which also delight them in the highest manner. This approach of delighting customers is intended to exceed the customers’ expectation. (Service Quality, 2008).
  • 20. 10 Complaint Management Handling complaints, a satisfactory business practice can assure excellent customer service in a company. Complaint management is the course of how organizations handle, manage, respond to and report customer objections in the moment of confusion and need of assistance. (What Is a Complaint Management System?, 2014). Internal Satisfaction Internal satisfaction is a phenomenon related to customers’ emotion and attitude rather than objective measurement of satisfaction. A customer who is satisfied with a purchased product or service hired will make regular payments; these regular payments improve the cash flow of the business. Thus, customers who are highly satisfied will purchase more and benefit the company’s brand image. (Total Quality Management, 2008). This literature review elaborates the significance of the research study to make a clear understanding of service performance assessment by customers. The service performance is based on their past involvements, benefits acquired, level of service superiority and treatment of complaints and queries. Through the investigation of quality of network, billing, period of validity and customer care support of the telecommunication industry of Nepal, the customer satisfaction of students of Kathmandu with the mobile telecommunication services will be measured.
  • 21. 11 2.3. Socioeconomic Variables and Customer Satisfaction Socioeconomic status refers to a person's or group's situation within a categorized community structure. It depends on a grouping of variables, including profession, income, wealth, education, and residence. Sociologists frequently use socioeconomic position as a means of predicting performance (Socio Economic Status, 2013). This literature review conveys the information that consumers differ to each other in in terms of their behavior and background; and the major determinants for this change are the socioeconomic characteristics of the individual customer and the environment. Thus, the need for exploration of the socio economic factors and its impact in the customer satisfaction with respect to mobile telecommunications industry of Nepal is highly essential. These factors are important characteristics of the general people and it strongly affects their views, way of life and standard of living. Further, the detailed study of the impact of these factors on the customer satisfaction of students with mobile telecommunications services in Nepal will give accurate insights to understand the needs and expectations of customers with various socioeconomic background and behavior.
  • 22. 12 Chapter III: Methodology In this research, the explorative and comparative research methods were employed to meet the objectives. 1. Primary Sources: a. In-depth Interview b. Questionnaire Survey c. Pilot testing 2. Secondary Source: a. Company Profile of NTC, NCell, Smart Cell and UTL b. Company Websites c. Publications by Nepal Telecommunications Authority d. Articles by Sparrow SMS and various other companies. The purpose of this research design was to understand customer satisfaction of student of age group 16 to 35 residing in Kathmandu with the performance of the mobile telecommunication industry of Nepal. Similarly, it also aimed to identify factors that influence customer satisfaction for student in Nepal regarding the services of mobile telecommunication service providers. The questionnaire survey consisted of questions which were based on the independent variables: mobile services features and socioeconomic characteristics. The mobile services features include quality of the network, billing, and period of validity and customer care services; similarly the socioeconomic variables include weekly allowances, weekly expenses and mobile recharge. The questions were self- constructed and answers were based on the rating scale which varied from ‘very satisfied’ to ‘very dis-satisfied’.
  • 23. 13 3.1. Sample Selection This research was conducted by administering 150 questionnaires to students of age group 16 to 35 of various institutions pursuing higher secondary level, bachelors level, masters level degree and above in Kathmandu through the online sources. The students were be targeted from various fields of study such as medicine, law, engineering, technology, tourism and business based on convenience sampling. 3.2. Research Instrument The research instrument used in this research study to collect the data was through the administration of questionnaire survey to the sample selection. The questionnaire survey form used fixed-response alternate questions that involved the respondent to select from a fixed set of answers to every question. This type of survey method is the most common and popular technique of primary data collection in marketing research. (Samuel, Customer Satisfaction in Mobile Telecommunications Industry in Nigeria, 2006) The surveys were administered randomly to the sample students through the internet using Google forms. The use of social media sources such as Facebook was highly useful in making contact with the samples. Information regarding the samples were easily available through the social media sources, thus, sample selection was made quicker. The questionnaire which was administered is divided into two sections; I and II. Section I has questions on socioeconomic factors and the section II includes questions on service features, overall customer care, service performance and the service operator. The questionnaire survey form included several questions and the options
  • 24. 14 for answers were very satisfied, satisfied, no opinion, dissatisfied and very dissatisfied. For referral, the questionnaire survey form is placed at Appendix 1. 3.3. Conceptual Framework The conceptual framework of this research examined the level of customer satisfaction of the mobile telecommunication services of students from age group 16 to 35 residing in Kathmandu. The research aimed to explore the relationship between customer satisfaction and specific socioeconomic variables of the students. As cited by Dr. Samuel Eniola, in his research, previous researches on mobile telecommunication services recommended that essential characteristics of the mobile telecommunication services are quality of the network, billing validity and customer care. (Samuel, Customer Satisfaction in Mobile Telecommunications Industry in Nigeria, 2006).. Figure 1 presents the theoretical structure of this research. Hence, this research study used these variables in its analysis. The research sought to find the answers to whether the students of Kathmandu from age group 16 to 35 are satisfied with the mobile telecommunication sector in Nepal, whether socioeconomic factors such as weekly allowances, weekly expenses and weekly mobile expenses of students has strong relationship with the level of customer satisfaction; and if the quality of the network, billing, period of validity and customer care support have strong relationship with customer satisfaction.
  • 25. 15 Source: (Samuel, Customer Satisfaction in Mobile Telecommunications Industry in Nigeria, 2006) Figure 1: Conceptual Framework of the Research Similarly, Figure 1 illustrates the purpose of this research to explore the level of customer satisfaction of students of age group 16 to 35 with the factors of mobile telecommunications industry of Nepal and socioeconomic factors. The theoretical framework used in this research is similar to the research study conducted by Samuel Eniola on Customer Satisfaction in Mobile Telecommunications Industry in Nigeria. Customer Satisfaction Network Availability Billing Period of Validity Customer Care Weekly Allowances Weekly Expenses Weekly Recharge on Mobile Services
  • 26. 16 3.4. Operational Definition Quality of network can be defined as the call quality which is perceived by consumers. It contains call clarity while making and receiving calls and coverage of the network. Billing refers to the price of recharging balance and making expenses of the incurred balance. It comprises of various types of recharge schemes and payment options. Validity period refers to the duration wherein, after every balance recharge and due balance payments, a customer can make calls or receive calls. Customer care can be defined as the complaint managing systems with the capability to get attendant quickly, response of the attendant and provide a solution along with the customer support offered. Customer satisfaction can be defined as an experience-based valuation assessed by the buyer of how different his/her own anticipations regarding the overall functionality of the facilities and the characteristics gained from the seller have been satisfied. (Samuel, Customer Satisfaction in Mobile Telecommunications Industry in Nigeria, 2006)
  • 27. 17 Chapter IV: Results 4.1. Data Analysis The responses of 150 respondents were analyzed though the SPSS 20.0 and Microsoft Excel 2013. In the research, the descriptive statistics was applied to evaluate the degree of customer satisfaction. The relationship between customer satisfaction; and the mobile services characteristics and certain socioeconomic variables were analyzed with the linear regression model. Similarly, customer satisfaction and all the mobile services characteristics were also analyzed using the multiple regression analysis. The descriptive frequency was cross tabulated with the dependent variable though the SPSS package. And, the representation of the data in pie chart was done through Microsoft Excel 2013. Similarly, Microsoft Excel was also used to code the options of the answers though ‘Find’ and ‘Replace’ tools. In the SPSS package, the linear regression model was used to compare the value of the dependent variable with one or more predictors. In the results of regression analysis, the model summary table interprets the relationship power of the dependent variable and the model. R value symbolizes the strength of the relationship. R2 symbolizes the proportion of the variation in the dependent variable explained by the regression. Beta value symbolizes the coefficient value of the model which states the percentage of change in dependent variable with 1 percent change in the independent variable. Both R and R2 , range from 0 to 1 with larger values indicating stronger relationship (Samuel, Customer Satisfaction in Mobile Telecommunications Industry in Nigeria, 2006). . And, significance level was taken at 95% confidence level, which denoted the level of significance between the dependent and independent variables.
  • 28. 18 4.1.1. Frequency Statistics From Figure 2 to Figure 5, the frequency statistics of the socioeconomic variables are presented. Weekly Allowances Source: Field Survey Figure 2: Pie Chart of Weekly Allowances Figure 2 represents the fact that the majority of the sample have weekly allowances from Rs. 101 to Rs. 1000 cumulatively holding 65% of the total sample. In contrast only 3% of the samples have weekly allowances below 3%. This result states that most of the students of Kathmandu from age group 16 to 35 receive weekly allowances from Rs. 101 to Rs. 1000. Below Rs. 100 per week 3% Rs. 101 to Rs. 500 per week 27% Rs. 501 to Rs. 1000 per week 38% Rs. 1001 to Rs. 2000 per week 12% Rs. 2001 to Rs. 5000 per week 9% Rs. 5001 and above 11%
  • 29. 19 Weekly Expenses Source: Field Survey Figure 3: Pie Chart of Weekly Expenses Figure 3 represents the fact that the majority of the sample have weekly expense of Rs. 101 to Rs. 1000 cumulatively holding 65% of the total sample. In contrast only 3% of the samples have weekly expenses below 3%. This result states that most of the students of Kathmandu from age group 16 to 35 spend weekly expenses from Rs. 101 to Rs. 1000. Below Rs. 100 per week 3% Rs. 101 to Rs. 500 per week 32% Rs. 501 to Rs. 1000 per week 33% Rs. 1001 to Rs. 2000 per week 14% Rs. 2001 to Rs. 5000 per week 9% Rs. 5001 and above 9%
  • 30. 20 Weekly Mobile Expenses Source: Field Survey Figure 4: Pie Chart Representation of Weekly Mobile Services Expenses Figure 4 represents the fact that 27% of the sample spends Rs. 100 on mobile services. Similarly, other 22% and 23% of the sample spend Rs. 200 and Rs. 50 respectively on the weekly mobile services consumption. This result states that most of the students of Kathmandu from age group 16 to 35 spend Rs. 50 to Rs. 200 on weekly mobile recharge. Rs. 10 10% Rs. 50 23% Rs. 100 27% Rs. 200 22% Rs. 500 14% Rs. 1000 2% Rs. 2000 and above 2%
  • 31. 21 Mobile Telecommunications Service Provider Source: Field Survey Figure 5: Pie Chart Representation of Mobile Service Providers Figure 5 interprets the information regarding the current preference of the mobile service providers in Nepal. The students from age group 16 to 35 of Nepal are mostly users of Nepal Telecom which constitutes over 70% of the sample. Similarly the students have given the secondary preference to NCell. In contrast, UTL and SmartCell constitute a very less percentage of the total sample, cumulatively only 5%. This result states that most of the students of Kathmandu from age 16 to 35 prefer Nepal Telecom as their mobile service providers. Nepal Telecom 70% Ncell 25% UTL 1% SmartCell 4%
  • 32. 22 4.1.2. Analysis of Customer Satisfaction For the data analysis, the dependent variable i.e. customer satisfaction was investigated with the descriptive frequency. Figure 6 presents the result of the analysis of the overall customer satisfaction. Source: Field Survey Figure 6: Pie Chart Representation of Overall Customer Satisfaction The pie-chart, in Figure 6, represents the results of the analysis of the students’ customer satisfaction with the mobile telecommunications services in a frequency distribution. This result interprets the fact that 55% of the respondents are satisfied, and 8% very satisfied with the mobile telecommunications services in Nepal. Hence, it answers the question of this research that students were satisfied with the mobile telecommunication sector of Nepal. This score is highly above average because it resembles a mobile telecommunication sector that is in a developing phase. Very Dissatisfied 3% Dissatisfied 21% No Opinion 13% Satisfied 55% Very Satisfied 8%
  • 33. 23 The interpretation of this result might be that students of Kathmandu are certainly satisfied with the mobile service performance and its impact. The result presented that customers are satisfied with their experiences of consumption of the mobile telecommunication services. This satisfaction degree might also result from lack of strong opponent companies that the customers can compare services with. It might be also due to the fact that respondents are in a way new to satisfaction measurement and they may not have been able to express their perceptions accurately. Thus, there is need for continuous measurement of customer satisfaction to accurately record the customers’ perceptions of the mobile telecommunication services. This result validates the fact that the students of Kathmandu are certainly satisfied with the performance mobile telecommunication industry of Nepal. This degree of satisfaction must have resulted due the presence of very less number of telecommunication service providers in Nepal; these service providers are few in number, and the price competition is at a stagnant phase. Due to this reason, customers have to accept whatever they are being offered and are not yet susceptible to new developments and technology in telecommunications sector. Another reason might be that students are not able to express their perception well in terms of the variables.
  • 34. 24 4.2. Customer Satisfaction among the Socioeconomic Groups The socioeconomic variables were examined alongside customer satisfaction using the cross tabulation of the descriptive frequency to show the assessments of customer satisfaction among various categories of the socioeconomic variables. The result of the investigations can be elaborated in the following tables. Table 1: Cross Tabulation between Customer Satisfaction and Weekly Allowance Satisfaction Total V.D. D N.O S V.S. W. Allowance Below Rs. 100 per week 0 0 1 4 0 5 Rs. 101 to Rs. 500 per week 1 8 5 23 4 41 Rs. 501 to Rs. 1000 per week 2 14 7 33 0 56 Rs. 1001 to Rs. 2000 per week 0 8 1 8 0 17 Rs. 2001 to Rs. 5000 per week 1 0 3 10 0 14 Rs. 5001 and above 1 1 2 5 8 17 Total 5 31 19 83 12 150 Source: SPSS Results from Analysis of the Responses Table 1 represents the cross tabulated data of the weekly allowance and customer satisfaction encountered by the respondents. The highest numbers of respondents, which add to 33 and who received Rs. 501 to Rs. 1000 per week, were satisfied with the mobile services. Similarly, the respondents were rarely very dissatisfied with the mobile services despite of their differences in allowances. However, the respondents receiving Rs. 5000 and above as allowance were very satisfied and 8 in number.
  • 35. 25 Table 2: Cross Tabulation between Customer Satisfaction and Weekly Expenses Satisfaction Total V.D. D N.O S V.S. W. Expense Below Rs. 100 per week 0 2 1 1 0 4 Rs. 101 to Rs. 500 per week 1 6 9 30 2 48 Rs. 501 to Rs. 1000 per week 2 14 5 28 1 50 Rs. 1001 to Rs. 2000 per week 0 8 1 11 2 22 Rs. 2001 to Rs. 5000 per week 1 1 2 7 2 13 Rs. 5001 and above 1 0 1 6 5 13 Total 5 31 19 83 12 150 Source: SPSS Results from Analysis of the Responses Table 2 represents the cross tabulated data of the weekly expenses and customer satisfaction encountered by the respondents. The highest numbers of respondent is 58, who spent Rs.101 to Rs. 1000 per week were satisfied with the mobile services. Similarly, the respondents were rarely very dissatisfied with the mobile services despite of their differences in expenses. However, the respondents spending Rs. 5000 and above and who are both satisfied and very satisfied are 11 in number.
  • 36. 26 Table 3: Cross Tabulation between Customer Satisfaction and Mobile Expenses Satisfaction Total V.D. D N.O S V.S. W. Recharge Rs. 10 0 1 1 7 7 16 Rs. 50 1 11 5 16 1 34 Rs. 100 0 6 4 27 3 40 Rs. 200 2 8 6 16 1 33 Rs. 500 1 5 2 13 0 21 Rs. 1000 0 0 0 3 0 3 Rs. 2000 and above 1 0 1 1 0 3 Total 5 31 19 83 12 150 Source: SPSS Results from Analysis of the Responses Table 3 represents the cross tabulated data of the weekly mobile expenses and customer satisfaction encountered by the respondents. The highest numbers of respondents, who spent Rs.50 to Rs. 200 per week and were satisfied with the mobile services, add to 59. Similarly, the respondents were rarely very dissatisfied with the mobile services despite of their differences in expenses. However, the respondents spending Rs. 10 as mobile expenses were very satisfied and 7 in number.
  • 37. 27 Table 4: Cross Tabulation between Customer Satisfaction and Service Providers Satisfaction Total V.D. D N.O S V.S. M. Operators Nepal Telecom 4 25 16 58 2 105 Ncell 1 6 2 25 4 38 UTL 0 0 0 0 1 1 Smart Cell 0 0 1 0 5 6 Total 5 31 19 83 12 150 Source: SPSS Results from Analysis of the Responses Table 4 represents the cross tabulated data between users of mobile services with their level of satisfaction. The table represents that 58 of the respondents using NTC as their mobile service providers were satisfied while 16 had no opinion and 25 expressed dissatisfaction. Similarly, 25 users of Ncell among the respondents were satisfied with its service.
  • 38. 28 4.3. Factors Influencing Customer Satisfaction For the data analysis measures, the relationship between mobile services features and customer satisfaction were investigated by using the linear regression model. R value varies from 0 and 1 with larger values and representing strong relationship at 95 % confidence level. The following divisions elaborate the resulted findings: Relationship between Customer Satisfaction and Quality of the Network In table 5, a variation of .351 was seen in the dependent variable (customer satisfaction) as predicted by the independent variable (quality of the network). It is seen that the predictor variable of quality of the network is significant because its p- value is 0.000. Similarly, customer satisfaction is expected to increase by .593 when the quality of the network increases by one. These findings specify that there is a moderate relationship between customer satisfaction and quality of the network. This finding means that quality of the network has moderate significance over mobile services features in students of Kathmandu. Since, Kathmandu is a crowded location; the network is at times unmanageable and faces disturbances in the calls. Table 5: Result of Regression Analysis between CS and Quality of the Network Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .593a .351 .347 .819 a. Predictors: (Constant), Network
  • 39. 29 Coefficients Model Unstandardized Coefficients Standardized Coefficients t Sig. P ValueB Std. Error Beta 1 (Constant) 1.677 .208 8.067 .000 Network .545 .061 .593 8.956 .000 a. Dependent Variable: Satisfaction Source: SPSS Results from Analysis of the Responses Relationship between Customer Satisfaction and Billing In table 6, a variation of .186 was seen in the dependent variable (customer satisfaction) as predicted by the independent variable (billing). It is seen that the predictor variable of billing is significant because its p-value is 0.000. Similarly, customer satisfaction is expected to increase by .593 when billing increases by one. These outcomes validate that there is a moderately weak relationship between billing and customer satisfaction. This finding means that billing has moderately negligible significance over mobile services features in students of Kathmandu. The reason for his might be due to the fact that the tariffs which are offered by the mobile service providers are not very affordable and the services in regards to billing are not adequate, since there are a lot of internet call applications which gives free voice calls over the internet.
  • 40. 30 Table 6: Result of Regression between Customer Satisfaction and Billing Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .431a .186 .180 .917 a. Predictors: (Constant), Billing Coefficients Model Unstandardized Coefficients Standardized Coefficients t Sig. P ValueB Std. Error Beta 1 (Constant) 2.299 .210 10.938 .000 Billing .371 .064 .431 5.813 .000 a. Dependent Variable: Satisfaction Source: SPSS Results from Analysis of the Responses Relationship between Customer Satisfaction and Period of Validity In table 7, a variation of .142 was seen in the dependent variable (customer satisfaction) as predicted by the independent variable (validity period). It is seen that the predictor variable of validity period is significant because its p-value is 0.000. Similarly, customer satisfaction is expected to increase by .377 when validity period increases by one. These findings validate that there is a weak relationship between the period of validity and customer satisfaction. The irrelevance of this finding also means that period of validity has negligible significance over mobile services features in students of Kathmandu. The reason for this might be due to the fact that the period of validity
  • 41. 31 offered by the mobile telecommunications service providers is very less and the expiry date is stipulated in every schemes. Table 7: Result of Regression between Customer Satisfaction and Validity Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .377a .142 .136 .942 a. Predictors: (Constant), Validity Coefficients Model Unstandardized Coefficients Standardized Coefficients t Sig. P ValueB Std. Error Beta 1 (Constant) 2.183 .265 8.226 .000 Validity .352 .071 .377 4.947 .000 a. Dependent Variable: Satisfaction Source: SPSS Results from Analysis of the Responses Relationship between Customer Satisfaction and Customer Care Support In table 8, a variation of .204 was seen in the dependent variable (customer satisfaction) as predicted by the independent variable (customer care). It is seen that the predictor variable of customer care is significant because its p-value is 0.000. Similarly, customer satisfaction is expected to increase by .451 when customer care increases by one.
  • 42. 32 The result determines that there is a moderately weak relationship between customer care and customer satisfaction. The inference of this result is that customer care service has negligible significance over mobile services features in Nepal. The reason for this might be due to the fact that mobile service providers in Nepal do not offer good customer relationship management and the complaint handling is very tiresome and requires a long time. Table 8: Result of Regression between Customer Satisfaction and Customer Care Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .451a .204 .198 .907 a. Predictors: (Constant), Customer Care Coefficients Model Unstandardized Coefficients Standardized Coefficients t Sig. P ValueB Std. Error Beta 1 (Constant) 2.190 .216 10.124 .000 Customer Care .406 .066 .451 6.150 .000 a. Dependent Variable: Satisfaction Source: SPSS Results from Analysis of the Responses
  • 43. 33 Relationship between Customer Satisfaction and Quality of the Network, Validity, Billing, and Customer Care Support In table 9, a variation of .457 was seen in the dependent variable (customer satisfaction) as predicted by the independent variable (quality of the network, validity, billing and customer care). It is seen that the predictor variable of quality of the network, validity and customer is significant because its p-value is less than 0.05 whereas billing is insignificant because its p-value is greater than 0.05. Similarly, customer satisfaction is expected to increase by 0.388, 0.141, 0.171 and 0.226 when the quality of the network, billing validity and customer care increases by one. The result validates that the interaction of the mobile services features have a moderately weak relationship with customer satisfaction. The interpretation of this result is that the associated mobile services features is adequately significant to the assessment of the customer satisfaction with mobile services. Therefore, customer satisfaction in regards to mobile telecommunications services in Nepal is a purpose of the assessment of quality of the network, billing, and period of validity and customer care service. Thus, mobile service providers should emphasize on improving mobile services characteristics to enhance customer satisfaction. Table 9: Result of Regression between CS and Network, Billing, Validity and Customer Care Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .676a .457 .442 .757 a. Predictors: (Constant), Customer Care, Billing, Validity, Network
  • 44. 34 Coefficients Model Unstandardized Coefficients Standardized Coefficients T Sig. P ValueB Std. Error Beta 1 (Constant) .716 .269 2.664 .009 Network .356 .071 .388 5.042 .000 Billing .121 .063 .141 1.938 .055 Validity .160 .061 .171 2.604 .010 Customer Care .203 .061 .226 3.328 .001 a. Dependent Variable: Satisfaction Source: SPSS Results from Analysis of the Responses 4.4. Relationship between Customer Satisfaction and Socioeconomic Variables Similarly, for the further data analysis measures, the relationship between socio economic variables and customer satisfaction were investigated by using the linear regression model. R value varies from 0 and 1 with larger values and representing strong relationship at 95 % confidence level. The following divisions elaborate the resulted findings. Relationship between Customer Satisfaction and Weekly Allowances In table 10, a variation of .011 was seen in the dependent variable (customer satisfaction) as predicted by the independent variable (weekly allowance). It is seen that the predictor variable of weekly allowance is insignificant because its p-value is greater than 0.05. Similarly, customer satisfaction is expected to increase by .104 when the weekly allowance increases by one.
  • 45. 35 These findings reveal that there is a very weak relationship between weekly allowance and customer satisfaction and hence, the interpretation of the result is that weekly allowance has an insignificant impact on customer satisfaction. The reason for this might be due to the fact that students receive limited allowance and would rather spend it more on other consumptions rather than mobile services, and thus are dissatisfied. Table 10: Result of Regression between Customer Satisfaction and Allowance Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .104a .011 .004 1.011 a. Predictors: (Constant), W. Allowance Coefficients Model Unstandardized Coefficients Standardized Coefficients t Sig. P ValueB Std. Error Beta 1 (Constant) 3.184 .218 14.606 .000 W. Allowance .078 .061 .104 1.268 .207 a. Dependent Variable: Satisfaction Source: SPSS Results from Analysis of the Responses Relationship between Customer Satisfaction and Weekly Expenses In table 11, a variation of .020 was seen in the dependent variable (customer satisfaction) as predicted by the independent variable (weekly expenses). It is seen that the predictor weekly expense is insignificant because its p-value is greater than
  • 46. 36 0.05. Similarly, customer satisfaction is expected to increase by .140 when the weekly expense increases by one. The result demonstrates that there is a weak relationship between weekly expense and customer satisfaction. This means that weekly expense has negligible influence on customer satisfaction. The reason for this might be due to the fact that students in Nepal, put less emphasis on consumption of mobile services although they spend high amount of money on other personal services. Table 11: Result of Regression between Customer Satisfaction and Expenses Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .140a .020 .013 1.007 a. Predictors: (Constant), W. Expense Coefficients Model Unstandardized Coefficients Standardized Coefficients t Sig. P ValueB Std. Error Beta 1 (Constant) 3.087 .221 13.994 .000 W. Expense .110 .064 .140 1.724 .087 a. Dependent Variable: Satisfaction Source: SPSS Results from Analysis of the Responses
  • 47. 37 Relationship between Customer Satisfaction and Purchase of Recharge Cards In table 12, a variation of .029 was seen in the dependent variable (customer satisfaction) as predicted by the independent variable (weekly recharge). It is seen that the predictor variable of weekly recharge is significant because its p-value is 0.039. Similarly, customer satisfaction is expected to decrease by .169 when the weekly recharge increases by one. The result demonstrates that there is a very weak and inverse relationship between expenses on recharge cards and customer satisfaction and hence. This insignificance means that expenses on recharge cards have negligible influence on customer perception of mobile services performance. The reason for this might be due to the fact that students in Nepal, are getting familiar with free internet communication services as an alternative of mobile services. So students spend less on mobile telecommunication services. Table 12: Result of Regression between Customer Satisfaction and Mobile Expenses Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .169a .029 .022 1.002 a. Predictors: (Constant), W. Recharge
  • 48. 38 Coefficients Model Unstandardized Coefficients Standardized Coefficients t Sig. P ValueB Std. Error Beta 1 (Constant) 3.837 .207 18.524 .000 W. Recharge -.124 .059 -.169 -2.085 .039 a. Dependent Variable: Satisfaction Source: SPSS Results from Analysis of the Responses
  • 49. 39 Chapter V: Summary, Discussions, and Implications 5.1. Summary This study was initiated with the intention to examine the level of satisfaction of customers with the mobile telecommunications industry. Here, the customers primarily imply students between the age group of 16 to 35 years of Kathmandu, Nepal. The research further attempts to identify the determinants influencing contentment with the mobile service providers and the extent of association with various socioeconomic variables. As per the research undertaken in regard to the investigation and analysis of the level of customer satisfaction, the outcomes established the fact that the customers were contented with the service provided by the mobile telecommunications industry and its performance in Nepal. Within the groups segmented on the basis of weekly allowance, the majority of customers who received allowance between Rs. 500 to Rs. 1000 were comparatively more satisfied than those who received weekly allowances less than Rs. 500. Similarly, there is dominance of satisfied students in the category of those who spent Rs. 100 to Rs. 1000 as their weekly expenses than those who spent below or above that range. Lastly, larger number of students who recharged their mobile accounts with Rs. 50 to Rs. 200 was found to be more satisfied than those who spent above or below that range; while only few of the respondents expressed higher level of satisfaction as regards to this aspect. In totality, however, these three socioeconomic variables seem to have low influence on satisfaction because even the respondents mentioned as majority above seemed to be only moderately satisfied with these factors.
  • 50. 40 Among the mobile service features that were identified to have impact on the level of customer satisfaction, quality of the network demonstrated to have highest impact amongst others. In contrast, billing, customer care and period of validity showed relatively weak influence on customer satisfaction. The results indicate that the four features of mobile service have low significance on the level of customer satisfaction. The results, thus, validated that customer satisfaction level varied among diverse socioeconomic groups. For this very reason, mobile service providers need to improve, better comprehend these market fragments and customize their services as much as possible to meet the expectations of the diverse socioeconomic groups in order to take maximum advantage out of customer satisfaction which in turn can help retain customers and induce a sense of loyalty among them. 5.2. Discussions From the research findings, we could make number of inferences regarding the various results that the research has concluded. Firstly, the reason for the customers being satisfied with their mobile telecommunications service providers could be that the students of Kathmandu were in fact pleased with the service performance or it could be because of the lack of availability of alternative service providers in the industry. Secondly, the low level of satisfaction among the students who received less than Rs. 500 could be because of the less talk time and recharge cards they could purchase with that amount of money given that they had to spend it on other weekly expenditures. Thirdly, the high satisfaction level among the students who spent Rs. 100 to Rs. 1000 as their weekly expense could be because of the belief and contentment that the service they were being provided was worth the amount they
  • 51. 41 were paying. The same reason could be inferred for the high level of satisfaction among the students who recharged their mobile accounts with Rs. 50 to Rs. 200. Moreover, the reason for the quality of the network being considered as the most significant determinant for customer satisfaction could be because customers do not want their calls to be interrupted in between, sought for clarity during calls and prefer service that has wide network coverage. The other mobile service features do not seem to have much influence on customer satisfaction as much as quality of the network. Today, in the age of technology, people prefer internet to mobile services for communication purpose as it is cheaper and billing has become easier through online payment systems. Also validity period do not seem to have positive impact on customers as the prepaid cards have short validity periods with expiry dates. Lastly, talking about the customer care, the reason for this feature having low impact could be that not only mobile telecommunications industry but even other industries do not have proper, quick and effective customer care services; so people tend to neglect this aspect. Overall, the changing structure of Nepalese society and advancement in internet and telecommunications services could be considered as the reasons for the low level of satisfaction among the customers of mobile telecommunications industry. 5.3. Implications Mostly, the inference of this research study for mobile service providers is that the mobile operators must not just rely on profit margins for a good indicator of business outcomes. They should, rather, develop strategies that better capture student’s expectations of their service offerings. Such strategies help businesses to match their
  • 52. 42 performance against customer standards, compare consumer standards against internal process and identify prospects for improvement. In addition, to maximize customer satisfaction, mobile service providers must emphasize on refining mobile services features by investing in equipment to enhance call quality and exposure, offer rational appraising and price reductions, offer reasonable period of validity and enhance customer care through routine personnel training and provision of better customer-friendly equipment. Lastly, for the improvement of customer satisfaction, particularly for students, in the mobile telecommunications industry, there is requirement for collaboration between academic organizations and mobile service providers in order to achieve better customer-oriented mobile services.
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  • 54. 44 Samuel, D. E. (2006). Customer Satisfaction in Mobile Telecommunications Industry in Nigeria. Nigeria. Service Quality. (2008). Retrieved from Wikipedia: http://en.wikipedia.org/wiki/Service_quality Socio Economic Status. (2013). Retrieved from Dictionary.com: http://dictionary.reference.com/browse/socioeconomic+status Telecom, N. (2014). Brief Introduction. Retrieved from NTC.NET: http://www.ntc.net.np/companyInfo/ntBrief.php Telecom, N. (2014). Telecommunications in Nepal. Retrieved from Wkipedia: http://en.wikipedia.org/wiki/Telecommunications_in_Nepal The Marketing Revolution. (1960). Journal of Marketing. Total Quality Management. (2008). Retrieved from WordPress: http://totalqualitymanagement.wordpress.com/2008/09/12/customer-focus- and-satisfaction/ Turel, O. a. (2006). Satisfaction with mobile services in Canada: An empirical investigation. In Telecommunications Policy 30 (pp. pp.314–331). What Is a Complaint Management System? (2014). Retrieved from eHow: http://www.ehow.com/facts_6401656_complaint-management-system_.html
  • 55. 45 Appendix Appendix 1: Questionnaire Format 1. What is your average weekly allowance? The amount of money you either receive from your parents as pocket money or you earn as income. o Below Rs. 100 per week o Rs. 101 to Rs. 500 per week o Rs. 501 to Rs. 1000 per week o Rs. 1001 to Rs. 2000 per week o Rs. 2001 to Rs. 5000 per week o Rs. 5001 and above 2. What is your weekly average expense? The amount of money you spend on a personal basis on average. Example: Money spent in restaurants, movies, games, hangouts, fuel expenses and other daily personal expenses. o Below Rs. 100 per week o Rs. 101 to Rs. 500 per week o Rs. 501 to Rs. 1000 per week o Rs. 1001 to Rs. 2000 per week o Rs. 2001 to Rs. 5000 per week o Rs. 5001 and above 3. How much do you spend on weekly on the recharge of mobile telecommunications? This refers to the average amount of balance you recharge every week. o Rs. 10 o Rs. 50 o Rs. 100 o Rs. 200 o Rs. 500
  • 56. 46 o Rs. 1000 o Rs. 2000 and above 4. Which of the mobile service providers do you subscribe to o Nepal Telecom o NCell o UTL o SmartCell 5. Are you satisfied with the QUALITY OF THE NETWORK of the service provider? Quality of the network refers to the call quality as perceived by customers and includes; call clarity when calling and receiving and the coverage. o Very Satisfied o Satisfied o No Opinion o Dissatisfied o Very Dissatisfied 6. Are you satisfied with the BILLING of the service provider? Billing refers to the cost, variety, affordability, freedom of choosing the recharge cards and speed of recharging. o Very Satisfied o Satisfied o No Opinion o Dissatisfied o Very Dissatisfied 7. Are you satisfied with the VALIDITY period of the service provider? Validity refers to the period in which you can make calls and or receive calls after every recharge. o Very Satisfied o Satisfied o No Opinion o Dissatisfied
  • 57. 47 o Very Dissatisfied 8. When you call to complain or query anything, how satisfied are you with the OVERALL CUSTOMER CARE SERVICE? Overall customer care service refers to the medium of service, value and facilities of customer care provided. o Very Satisfied o Satisfied o No Opinion o Dissatisfied o Very Dissatisfied 9. Overall, how satisfied are you with the use of this service? Are your expectations of the service you are paying for being met? o Very Satisfied o Satisfied o No Opinion o Dissatisfied o Very Dissatisfied
  • 58. 48 Appendix 2: Frequency Table of Weekly Allowances Response Frequency Percentage Cumulative % Below Rs. 100 per week 5 3% 3.33% Rs. 101 to Rs. 500 per week 41 27% 30.67% Rs. 501 to Rs. 1000 per week 56 38% 68.00% Rs. 1001 to Rs. 2000 per week 17 12% 79.33% Rs. 2001 to Rs. 5000 per week 14 9% 88.67% Rs. 5001 and above 17 11% 100.00%
  • 59. 49 Appendix 3: Frequency Table of Weekly Expenses Response Frequency Percentage Cumulative % Below Rs. 100 per week 4 3% 2.67% Rs. 101 to Rs. 500 per week 48 32% 34.67% Rs. 501 to Rs. 1000 per week 50 33% 68.00% Rs. 1001 to Rs. 2000 per week 22 14% 82.67% Rs. 2001 to Rs. 5000 per week 13 9% 91.33% Rs. 5001 and above 13 9% 100.00%
  • 60. 50 Appendix 4: Frequency Table of Weekly Mobile Services Expenses Response Frequency Percentage Cumulative % Rs. 10 16 10% 10.67% Rs. 50 34 23% 33.33% Rs. 100 40 27% 60.00% Rs. 200 33 22% 82.00% Rs. 500 21 14% 96.00% Rs. 1000 3 2% 98.00% Rs. 2000 and above 3 2% 100.00%
  • 61. 51 Appendix 5: Frequency Table of Mobile Service Providers Response Frequency Percentage Cumulative % Nepal Telecom 105 70 70.00% Ncell 38 25 95.33% UTL 1 1 96.00% SmartCell 6 4 100.00%
  • 62. 52 Appendix 6: Frequency Table of Customer Satisfaction Response Frequency Percentage Cumulative % Very Dissatisfied 5 3% 3.33% Dissatisfied 31 21% 24.00% No Opinion 19 13% 36.67% Satisfied 83 55% 92.00% Very Satisfied 12 8% 100.00%