COMMONWEALTH JOURNAL OF COMMERCE & MANAGEMENT RESEARCH CUSTOMER EXPECTATION AND PERCEPTION IN TELECOMMUNICATION SECTOR: AN EMPIRICAL STUDY OF UDAIPUR

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1 CUSTOMER EXPECTATION AND PERCEPTION IN TELECOMMUNICATION SECTOR: AN EMPIRICAL STUDY OF UDAIPUR Suteekshn Singh Ranawat Research Scholar,Department of Business Administration, MLSU, Udaipur ABSTRACT Customer satisfaction is the ultimate goal of any business or industry, so it is necessary for telecommunication marketers to fulfill customers expectations which not only make customers satisfied but also enhances the market share. In service industry literature, SERVQUAL is the most widely used structure to measure customer expectations and perceptions so this paper is an attempt to identify the difference between expectation & perception of telecom customers with the help of Parasuraman s et al (1988) SERVQUAL model. Key Words: Service quality, Customer expectation, Customer perception, Telecommunication 19

2 INTRODUCTION Within the last two decades, service quality has become a main concern in the business world especially in services sector. The key to success in winning the global battle now and in future is to have high standards of service. Hence, it is helpful for service organizations to know the customer service quality perceptions in order to overcome the competitors and at tract and retains the customers. Because of the globalization and liberalization, Indian companies have been forced to adopt quality management programs and telecommunication sector is not exception to it. A customer will be satisfied only when his/her expectations will be met, so in the year 1988 Parasuraman s et al developed a model to measure the expectation & perception towards any service, which is named as a SERVQUAL model. In the context of hotel service the model is based on following five dimensions:- 1. Reliability dimension is concerned with the telecom service provider s ability to perform the service accurately and dependably. 2. Responsiveness dimension is related with the employees willingness to help customers and provide prompt services. 3. Assurance dimension includes Employees knowledge, courtesy and their ability to inspire trust and confidence. 4. Empathy dimension is related with Caring, individualized attention given to customers or the ease of access, approachability and effort taken to understand customers requirements. 5. Tangibles dimension is all about the appearance of the physical facilities and material relayed at outlet. The negative gap score between the customers perception & expectation reveals lacunas in service & helps hoteliers to improve the service which enhances the customers satisfaction. 20

3 LITERATURE REVIEW Khan (2010) found that mobile operators are vigorously investing in network coverage, up gradation and quality, competitive pricing and diversified offering to attract new customers and retain the existing customer. the result of the study substantiate the response of strategy of the mobile phone operators to enhance quality of network, the tangible, responsiveness and assurance, empathy and convenient dimension of services that are vital to affect the customers perception of quality of service. Singh, Mohan and Guha (2010) proposed that consumers tend to be price seeking or price averse as consumer uncertainity about product quality increases, which intimates that the availability of quality information should affect consumer price sensitivity. Shrivastva (2011) analyzed that the India is the third largest country in the world in telecommunication network with 621 million connections. The telecommunication sector is growing at a speed of 45% during the recent year. and this growth is possible due to various proactive and positive decision of the government and contribution of both by public and private sector. Kuo (2011) states that developing customers satisfaction, we should understand a key mediator users flow experiences. More over a model considers that the element of perceived value and perceived service characteristics could directly influence customer satisfaction and indirectly influence flow experience. Consequently, we believe that customer satisfaction and customers flow experience induces behaviour that can lead to the phenomenon of customer recommendation, which, in turn become free advertising for a firm and attracts new customers. Lin, & Wu, (2011) concluded that the unsatisfied consumers of a company do not take time to switch that brand. Low quality services can also lead dissatisfaction. A low quality service is such type of service which does not fulfill the requirements however it all depends 21

4 upon that which segments a company is targeting and what are their expectations for that product. Singh (2013) concludes that overall perceived service quality has a significant influence on customer satisfaction. He found that policy, problem solving and reliability are the significant predictors of overall customer satisfaction. Hence managers need to understand these dimensions carefully and they should develop their strategies for delivering in the market by understanding these dimensions for attaining the maximum customer satisfaction level. Here in delivering the maximum customer satisfaction level, the factor, Policy is found to be the main factor. So from this we can say that high quality merchandise, convenient parking for the customers, operating hours of the outlet etc. emerged as the significant variables, where managers should deliver maximum for achieving the maximum customer satisfaction level. The next dimension was problem solving showing a significant impact on the overall customer satisfaction level. It means managers need to handle the customer returns and exchanges, as well as they should provide the immediate solutions for the customer problems to achieve the maximum customer satisfaction level. Next dimension is reliability showing a significant impact on the customer satisfaction level. It means managers need to work towards error-free transactions with the customers and right transactions for the first time. By this way managers will be able to achieve maximum customer satisfaction in the retail outlets. RESEARCH OBJECTIVES The purposes of this research paper are as follow:- 1. To learn and understand the important factors in service quality dimensions applicable to telecommunication sector 2. To know the level of customer satisfaction with service quality dimensions. 3. To check the significance of difference between customers expectations and perceptions in telecom sector 22

5 RESEARCH METHODOLOGY Research design The primary purpose of this research is to identify the customers expectation & perception towards telecom sector and find out the level of customer satisfaction. Therefore descriptive research design is used to serve the purpose. Research approach To collect Primary data structured questionnaire was designed which was divided under two heads i.e. demographics & service quality. In first part respondents were asked to reveal their personal characteristics i.e. gender, age, education, income & occupation. In second part respondents were asked to evaluate parameters of service quality on a 5 point scale, separately for their expectation & perception. Sampling for sampling. Sample size of this study was 300 & stratified purposive sampling method was adopted Analytical Tools: For analysis and interpretation Arithmetic mean & z-test were applied ANALYSIS & INTERPRETATIONS Table 1: Demographic Profile of Respondents Particulars Classification Frequency Percentage Gender Male Female Undergraduate Education Graduate Post Graduate

6 Age Group Monthly Income Profession / Occupation Other 20 7 Below 20 Years Years Years Above 60 Years 15 5 Less Than Rs. 10, Rs. 10,001 to 25, Rs. 25,001 to 40, More than Rs. 40, Govt. Employee 15 5 Private Employee Business Housewife Student Other 0 0 Interpretation: As per shown in table demographics of respondents were classified according to their gender, education, age, monthly income & Profession. Out of total respondents 82% are male & rests are female. Majority of respondents are undergraduate (43%) & 47% respondents belong to the age group of 20 to 40 years. 48% of respondents have their monthly income in the range of less than Rs. 10,000 and 37% respondents are employed in private organizations. Customers Expectation & Perception towards Service Quality This part included analysis on the basis of five factors of service quality i.e. tangibility, reliability, responsiveness, assurance, and empathy based on Parasuraman et al. (1988) SERVQUAL Model. Data explored customer s expectation and perception levels towards service quality of telecom service provider. The degree of expectation & perception towards service quality of telecom service provider was set from 1 to 5 (5 denotes the highest expectation/perception, whereas, 1 is the lowest expectation/perception). 24

7 In addition following criteria is used for analysis part:- The score among mean lowest expectation/perception The score among mean low expectation/perception The score among mean average expectation/perception The score among mean high expectation/perception The score among mean highest expectation/perception Table 2: Customers Expectation & Perception towards Reliability Dimension Reliability Expectation Perception Mean Level Mean Level Mean Quality Gap Score provides you service as promised always has the services available when customer wants it 4.17 High 3.52 High Highest 3.47 High services are error free 3.98 High 3.07 Moderate performs the services right at the first 4.1 High 3.5 High -0.6 time Overall Mean Score 4.15 High 3.39 High Interpretation: It can be observed from the table that customers expectations are high for all the factors related to the reliability apart from second statement, where their expectations are highest with the mean score of 4.35, which projects that every time customers desire the availability of demanded service. 25

8 On the counter side perception level for three statements is high while it is moderate for one statement. Even though for two statements level of expectation & perception is high but the gap score for all the statements is negative, which highlights the customer dissatisfaction with reliability dimension. Table 2 shows that overall expectation concerning Reliability dimension is high (4.15) & the overall perception towards Reliability dimension is also high (3.39) but the mean quality gap score is negative (-0.76) which shows that telecommunication service provider staff is not completely able to perform the promised services accurately. Table 3: Customers Expectation & Perception towards Responsiveness Dimension: Responsiveness Expectation Perception Mean Level Mean Level Mean Quality Gap Score staff tell exactly when services will be provided staff are willing to help you every time give you prompt service 4.45 Highest 3.53 High Highest 3.53 High Highest 3.53 High staff are able to handle customer 4.32 Highest 3.28 High complaints directly and immediately Overall Mean Score 4.38 Highest 3.47 High Interpretation: It is clear from the table that customers expectations are highest for all the factors concerning responsiveness dimension while for all the factors perception is in high range only, which clearly indicates the customer dimension. The difference between expectation & perception is highest (-1.04) for the statement that staff 26

9 are able to handle customer complaints directly and immediately. It means grievance handling procedure of telecommunication service providers need improvement. The overall customers expectations concerning responsiveness dimension is highest (4.38), while the overall customers perception is high (3.47). The mean quality gap score is negative ( ) which shows that there is lack of willingness in staff to help customers & provide prompt services Table 4: Customers Expectation & Perception towards Assurance Dimension Assurance Expectation Perception Mean Level Mean Level Mean Quality Gap Score I can trust the service provider staff 4.02 High 3.5 High Employees of Telecommunication service provider are courteous with customers Telecommunication service provider staff are well qualified and perform the jobs accurately 4.26 Highest 3.53 High Highest 3.42 High Service provider do the job well 4.35 Highest 3.5 High overall Mean Score 4.25 Highest 3.49 High Interpretation Table shows that overall expectation concerning Assurance dimension is highest (4.25) wherein expectations are high for I can trust the service provider staff (4.02). The overall satisfaction of perception towards Assurance dimension is at high level (3.49), with Employees of Telecommunication service providers are courteous with customers (3.53) receiving maximum score in this category. The mean quality gap score is negative ( ) which shows that staff don t have enough knowledge & courtesy to inspire trust & confidence among customers. 27

10 Table 5: Customers Expectation & Perception towards Empathy Dimension Empathy Expectation Perception Mean Level Mean Level Mean Quality Gap Score The Service Provider has operating hours convenient to all their customers. Service provider staff give personal attention to customers Service Provider understand needs of customers Employees of service provider give individual attention to customers 4.32 Highest 3.48 High Highest 3.23 Moderate Highest 3.33 Moderate High 3.55 High Overall Mean Score 4.26 Highest 3.40 Moderate Interpretation The analysis of empathy dimension project that customers expectations are highest for maximum statements while perceptions are high for two factors and moderate for remaining two factors. The minimum gap (-0.55) has been identified for the statement Employees of service provider give individual attention to customers and maximum gap (- 1.04) has been found for the statement Service provider staff give personal attention to customers Table shows that overall expectation concerning Empathy dimension is highest (4.26) wherein perception towards Empathy dimension is at moderate level (3.4). The mean quality gap score is negative (-0.863) which shows that staff don t give complete individual attention to customers. 28

11 Table 6: Customers Expectation & Perception towards Tangibles Dimension Tangibles Expectation Perception Mean Level Mean Level Mean Quality Gap Score Physical layout of equipment and furniture are comfortable for customer interacting with staff Highest 3.55 High Service Provider store is neat & clean 4.32 Highest 3.58 High Employees of service provider has attractive, neat & clean appearance 4.3 Highest 3.48 High Customer Service counter is well equipped with up-to-date facilities 4.43 Highest 3.58 High Overall Mean Score 4.33 Highest 3.55 High Interpretation Table 6 shows that overall expectation concerning Tangibles dimension is highest (4.33) wherein expectations are also highest for all the factors. The overall satisfaction of perception towards Tangibles dimension is at high level (3.55), with Service Provider store is neat & clean (3.58) & Customer Service counter is well equipped with up-to-date facilities (3.58) receiving maximum score in this category. The mean quality gap score is negative ( ) which shows that appearance of staff, physical facilities & written material is somewhere lacking. Hypothesis Testing Although that there is a negative difference between customer expectation & perception which leads to the customer dissatisfaction, still the significance of difference between mean scores should be identified. 29

12 So Let us take the hypothesis that H 0 : There is no significant difference between the mean scores of Expectation & Perception for any dimension. H 1 : There is a significant difference between the mean scores of Expectation & Perception for any dimension Table 7: Hypothesis Testing Attributes Mean S.D. z-values P-value Result Reliability Expectation Perception Responsiveness Expectation Perception Assurance Expectation Perception Empathy Expectation Perception Tangibles Expectation Perception Significance = 5% Degree of Freedom = Extremely Significant Extremely Significant Extremely Significant Extremely Significant Extremely Significant At 5% level of significance and for 598 degree of freedom extreme significant difference has been identified between customer expectations & perceptions. It means customers are dissatisfied with the services provided by telecommunication service provider and it can be concluded that there is a significant difference between customers expectations and perceptions in telecommunication services of Udaipur. 30

13 CONCLUSIONS Service quality is an important aspect for telecom service provider to know about customers satisfaction & SERVQUAL model is the root way to measure the effectiveness of service quality. In this paper gap has been identified between expectation & perception of customers towards the telecommunication services of Udaipur, which revealed dissatisfaction among customers. Z-test results projected the extremely differences it means extreme efforts to be made by telecom service provider to improve the level of service quality. REFERENCES Chen and Wen Kuo (2011) Understanding Consumer Recommendation Behavior in a Mobile Service Context. Lin, J. S. C., & Wu, C. Y., (2011). The role of expected future use in relationship-based service retention. Managing Service Quality, 21(5), Muhammad Asif Khan (2010) An Empirical Assessment Of Service Quality Of Cellular Mobile Telephone Operators In Pakistan International Journal of Social Science Vol.6(10). Neha Singh, Monica Mohan and Subroto Guha A Study of Tele- Connectivity Users Perception Level Towards The Various Tele-Connectivity Service Brands Journal of Reserch For UG and PG Students. Singh Ajmer(2013) Relationship between Service Quality and Customer Satisfaction in Organized Retail Outlets, Developing Country Studies Vol. 3, No.1, 2013, Vivek Shrivastva (2011) A Retailer Satisfaction Survey Of BSNL in Kanpur Zone VSRD International Journal of Business and Management Research Vol.1 (2). 31