An Empirical Study On Factors Affecting Customers .
Pacific Business Review InternationalVolume 8, Issue 3, September 2015An Empirical Study on Factors Affecting Customers Satisfaction and BehaviouralIntentions w.r.t. Mobile Telecom Service ProvidersMs. Esha JainAssistant Professor, School ofManagement, G. D. GoenkaUniversityDr. Manish MadanAssociate Professor, RukminiDevi Institute of AdvancedStudiesAbstractAim of Study:The aim of the study is basically to explore the factors that affectsatisfaction of customers in telecom sector and also this study aims toinvestigate the relationship between the customer satisfaction and thebehavioral intentions of the customers using mobile telecom servicesin Delhi and NCR.Scope of the StudyThis study investigates the factors which affect the satisfaction ofcustomers and the behavioral intentions of customers using mobiletelecom services in Delhi and NCR.Research ObjectivesThe broad objectives of study are to explore the various servicesoffered by mobile telecom service providers in Delhi and NCR, toestablish a relationship between the perceived value, service qualitydimensions and marketing mix with that of the satisfaction ofcustomers and to establish a relationship between customersatisfaction and behavioral intentions of customers.Research MethodologyThe study is exploratory in nature. A systemized and organized studywas done to reach the desired objectives of the study. The responsesobtained from the respondents i.e. customers using mobile telecomservices in Delhi and NCR using various statistical techniques. Theimportance of this study is that it focuses on identifying the variousfactors affecting the overall satisfaction of customers using mobiletelecom services in Delhi and NCR. Here in this study variousindependent variables are perceived value, service quality andmarketing mix, where the dependent variables are customersatisfaction and behavioral intentions.Significance of StudyOne of the drivers of customer retention is customer satisfaction whichis achieved by ensuring that the customer gets need satisfying productsand services. It is, therefore, important to understand the needs of thecustomer and provide solutions in the form of products and servicesthat actually meet those needs.Key Words: Behavioral Intentions, Customer Satisfaction, MobileTelecom Sector, Telecom serviceswww.pbr.co.in01
Pacific Business Review InternationalIntroductionAlexander Graham Bell in 1876 invented the telephone.As far as the commercial mobile telephony is concerned itwas began in 1946 and in the 1995 it was accepted forusage by general public due to its lowering of cost andrich in features. In the past years, telecommunication insome countries and regions have developed from1G(analog radio signals telecommunication), got through2G-GSM(global system for mobile), 3G-WCDMA (wideband code division multiple access), and then to 4GLTE(long term evolution). For example, USA, UK, Canada,China, Japan, South Korea, and Singapore have alreadylaunched 4G (Curwen &Whalley, 2011).In India thesufficiently large portion of the economy is contributedby the service organization, which resulted infundamental shift in understanding the role of marketing.Customer switching in the service industry is developedincorporating the elements. This customer switching inthe service industry is very much influenced by theperception of customers in terms of attitude, affection,normative and various control factors. Now in thisindustry the emphasis is being shifted from new customerto the customer retention. In order to understand theconcept of customer retention in India in service industry,the telecommunication industry has studied. Astelecommunication industry is one of the fastest growingsector in Indian service industry.Review of LiteratureCustomer satisfaction with the service, the overall qualityof service perceived by the customer, perceived costs, andattitude towards behavior when a customer thinks aboutswitching service providers, are predominant variablesthat impact service switching decisions of consumers.Switching means the loss of continuing service customer(Keaveney 1995), customer defections (Reichheld andSasser 1990), Inter-brand substitutability (Bucklin andSrinivasan 1991), brand changing (Holland 1984),movement of buyer from one product to another(Carpenter and Lehmann1985), curtailing patronage(Yi 1990), changes in choice (Morgan and dev 1994),Non repeat purchase behavior (Kasper 1988),Inconsistency of brand choice from purchase to purchase(Sambandam and Lord 1995). Customer satisfaction isan evaluative process of perceiving discrepancy betweenprior expectations and the actual performance of aproduct/ service after its consumption (Tse and Wilton1988). Though negative effects of customer switchingsuch as reduced market share, impaired profitability andincreased cost has been as area of great concern forservice firms (Reichcheld and Sasser 1990)Satisfaction.Bedbury (2000) asserts that a brand is not aproduct but rather the sum total of everything a company02does — the good, the bad and even the off strategy — thatcreates a large context or an identity in the consumer's mind.Further, he explains that a brand is a promise and a mark oftrust.In its totality, a brand can be described as a “trademark thatcommunicates a promise (Phillips, 1998).Bolton (1998)suggests that service organizations should be proactive andlearn from customers before they defect by understanding theircurrent satisfaction levels. Managers and researchers may haveunderestimated the importance of the link between customersatisfaction and retention because the relationship betweensatisfaction and duration times is very complex and difficult todetect without advanced statistical techniques. Consequently,he proposes that, instead of “learning from defections”, serviceorganizations should be proactive and learn from customersbefore they defect by understanding their current satisfactionlevels.Oliver (1980) proposed the theory of “expectationinconformity”, that is the customers will feel satisfied when theservices actual performances are beyond their expectation.Oppositely, when the services actual performances are undertheir expectation, customers will feel dissatisfied.Therelationship between customer satisfaction and behavioralintentions has been identified (Bearden & Teel, 1983; Oliver,1980). It has been proposed that customers satisfaction ofservice value influences purchase intentions and behaviorintentions (Bolton & Drew, 1991), these behavioral intentionsmay be either positive, for example customer retention, loyaltyintention, and word of mouth, or negative, for example,customer defection or switching intention. According toAndreassen and Lindestad (1998), customer perceived valuewas positively associated with customer satisfaction in theservice industries. Patterson and Spreng (1997) alsoconfirmed that perceived value had a positive and directrelationship with customer satisfaction. While it is contendedthat value has a direct impact on how satisfied customers arewith the service supplier (Anderson &Fornel, 1994) and thatsatisfaction depends on value (Ravald&GroÈnroos, 1996),little attention has been paid to customer value in evaluatingservices (Lemmink, Ruyter&Wetzels 1998). It has beenproposed that behavioral intentions are determined in part ofperceived value (Bolton & Drew, 1991).Scope of StudyThis research endeavors to study or which factors affecting thecustomer satisfaction and behavioral intentions in using mobiletelecommunication service in Delhi and NCR. To overcome thearea of this research, this study scope on mobiletelecommunication in Delhi and NCR. The respondents areusers of mobile telecommunication services in Delhi and NCR.Objectives of StudyThe objectives of study are as follows:(1) To explore the various services offered by mobile telecomservice providers in Delhi and NCRwww.pbr.co.in
Volume 8, Issue 3, September 2015(2) To establish a relationship between the perceivedvalue, service quality dimensions and marketing mixwith that of the satisfaction of customers.(3) To establish a relationship between customersatisfaction and behavioral intentions of customers.Hypotheses of StudyThe following Hypotheses were formulated asfollows:Hypothesis 1:H01: There is no significant relationship betweenperceived value and customer satisfaction intelecom sector services.HA1:There is significant relationship between perceivedvalue and customer satisfaction in telecom sectorservices.Hypothesis 2:H02: There is no significant relationship between servicequality dimensions and customer satisfaction intelecom sector services.HA2:There is significant relationship between servicequality dimensions and customer satisfaction intelecom sector services.Hypothesis 3:H03: There is no significant relationship betweenmarketing mix and customer satisfaction intelecom sector services.HA3:There is significant relationship between marketingmix and customer satisfaction in telecom sectorservices.Hypothesis 4:H04: There is no significant relationship betweencustomer satisfaction in telecom sector servicesand behavioral intentions of customers.HA4:There is significant relationship between customersatisfaction in telecom sector services andbehavioral intentions of customers.Research DesignThe study is exploratory in nature. A systemized andorganized study was done to reach the desired objectivesof the study. The responses obtained from the respondentsi.e. customers using mobile telecom services in Delhi andNCR using various statistical techniques. This study isrestricted to mobile telecom service users. Theimportance of this study is that it focuses on identifyingwww.pbr.co.inthe various factors affecting the overall satisfaction ofcustomers using mobile telecom services in Delhi and NCR.Here in this study various independent variables are perceivedvalue, service quality and marketing mix, where the dependentvariables are customer satisfaction and behavioral intentions.Sources of DataTo cater the need of the research, the researchers have usedprimary data through self-constructed structured Questionnaireand as far as the secondary data is concerned that was obtainedfrom various reports web sites, and journals etc. to explore thevarious services offered by the telecom sector companies. Thedata was collected from customers using mobile telecomservices in Delhi and NCR.Sampling TechniqueSimple random sampling technique was used to gather datafrom the respondents, because of which respondents divergedfrom every age group, gender, professions, religions, maritalstatus, countries etc. but were restricted only to customers usingmobile telecom services in Delhi and NCR.Data Collection TechniquePrimary data was collected from various customers usingmobile telecom services in Delhi and NCR. There were 486respondents of which 400 were considered for study as other 86were summarily rejected due to some unfilled parts. Selfconstructed structured questionnaire was used to interview thevarious customers using mobile telecom services in Delhi andNCR.Statistical Tools UsedIBM SPSS 20 (Statistical Package for the Social Sciences), fordata analysis which include descriptive statistics, multipleregression analysis, and for the reliability the Cronbach'sAlpha was calculated and sample adequacy was tested on KMOand Bartlett's Test. Five points Likert's scale is used formeasuring responses from strongly disagree to strongly agree.About the QuestionnaireA self-constructed well-structured questionnaire is used for thecollection of data. It is designed in such a manner to explore thegeneral opinion of various customers using mobile telecomservices. The questionnaire was divided into two parts: Firstpart contains questions related to the demographic profile ofcustomers like Gender, Age, Nationality, EducationalBackground, Occupation and Income etc. Second part contains45 questions from Measurement, Service Quality, MarketingMix, Customer Satisfaction and Behavioral intentions. Thequestionnaire was developed on five point Likert's scale fromstrongly disagree to strongly agree.03
Pacific Business Review InternationalIn order to check the reliability of the questionnaire, theCronbach's Alpha test was applied. The value ofCronbach's alpha is found to be 0.741 in perceived value,0.761 in service quality, 0.829 in marketing mix, 0.778 incustomer satisfaction and 0.845 in behavioral intentionsof the questionnaire, which is well above than 0.6. Also04the overall value of Cronbach's alpha is 0.791. As the value ofCronbach's Alpha is more than 0.6, which consider theinstrument to be reliable for the study. Therefore, the highCronbach's Alpha coefficient in this study represents a highconsistency and reliability among statements in questionnaire.www.pbr.co.in
Volume 8, Issue 3, September 2015Kaiser-Meyer-Olkin test was done to measure thehomogeneity of variables and Bartlett's test of sphericitywas done to test the correlation among the variables used.From table 2, it is found that the value for Kaiser-MeyerOlkin Measure of Sampling Adequacy was more than 0.6in all the parts of questionnaire, as it is 0.842 in perceivedvalue, 0.848 in service quality, 0.941 in marketing mix,0.974 in customer satisfaction, 0.812 in behavioralintentions of the questionnaire. Also Bartlett's Test ofData was analyzed and on the basis of the mean andstandard deviations, conclusions were drawn. The meanwww.pbr.co.inSphericity has significant value less than 0.05 at 5 % level ofsignificance in all the parts of questionnaire. Thus it isconcluded that instrument is accepted for the study.Descriptive Statistical AnalysisThe data was analyzed on five points Likert's scale and based onthe calculations the scores fall between the range of followingare considered as follows:-and Standard deviations are as follows:05
Pacific Business Review InternationalFrom table 4 it is found that most of the values of means ofall the variables of the dimensions i.e. Measurement,Service Quality, Marketing Mix, Customer Satisfactionand Behavioral Intentions lies in the mean range of 3.41 –4.20, so it can be concluded that all the values areFrom Table 5, it is quite clear that satisfaction ofcustomers using telecom services in Delhi and NCR isfound to be significantly associated with the factors likeMeasurement, Service Quality, Marketing Mix andBehavioral Intentions. However there is some associationin some variables while some have no relationship at all.considered as agree level.Coefficients Of CorrelationKarl Pearson Coefficient of correlation was calculated to findthe significant relationships between dimensions.Hypothesis TestingHypothesis 1:H01: There is no significant relationship between perceivedvalue and customer satisfaction in telecom sectorservices.HA1:06There is significant relationship betweenperceived value and customer satisfaction in telecomsector services.www.pbr.co.in
Volume 8, Issue 3, September 2015Table 6 indicates that the multiple regressionanalysis identifies that customer satisfaction ispositively affected by perceived value. It is clearthat the perceived value contributes to thecustomer satisfaction. Since the positiverelationship is found between the both variableswhich implies that the greater the perceived value andgreater is the customer satisfaction. Since p – value isless than 0.01 that means it is significant at 1% level ofsignificance so the alternative hypothesis is supportedthat is perceived value is related to the customersatisfaction.Table 7 shows the association between the perceivedvalue and the satisfaction of customers using mobiletelecom services in Delhi and NCR. The coefficient ofcorrelation between perceived value and the satisfactionof customers is 0.542 and the value of R square is 0.294.Thus more than one fourth of variation in dependentvariable that is customer satisfaction is explained by theindependent variable perceived value. Since the AdjustedR square is found to be 0.291 which indicates that 29.1%of the variation in satisfaction of customers is explainedby the perceived value. The significant value is found tobe 0.000 which is below than 0.05, thus it is significant at5% level of significance. Thus, null hypothesis is rejectedand alternative hypothesis is accepted. So, there is significantrelationship between perceived value and customer satisfactionin telecom sector services.Table 8 indicates that the multiple regression analysisidentifies that customer satisfaction is moderatelyaffected by service quality, as three out of five servicequality dimensions are found to be significant. It is clearthat the service quality dimensions moderately contributeto the customer satisfaction. Since the moderaterelationship is found between the both variables whichwww.pbr.co.inHypothesis 2:H02: There is no significant relationship between servicequality dimensions and customer satisfaction intelecom sector services.HA2:There is significant relationship between service qualitydimensions and customer satisfaction in telecom sectorservices.imply that the greater the service quality dimensions andgreater is the customer satisfaction. Since p – value is less than0.01 in tangibility, reliability and assurance that means they aresignificant at 1% level of significance but the service qualitydimensions responsiveness and empathy are insignificant at 1%level of significance so the alternative hypothesis is moderatelysupported that is service quality dimension is moderately07
Pacific Business Review Internationalrelated to the customer satisfaction. Thus the multipleregression equation for the service quality dimensionsand the customer satisfaction is given as follows:-Table 9 shows the association between the service qualitydimensions and the satisfaction of customers usingmobile telecom services in Delhi and NCR. Thecoefficient of correlation between service qualitydimensions and the satisfaction of customers is 0.742 andthe value of R square is 0.551. Thus more than one half ofvariation in dependent variable that is customersatisfaction is explained by the independent variableservice quality dimensions. Since the Adjusted R squareis found to be 0.545 which indicates that 54.5% of thevariation in satisfaction of customers is explained by theservice quality dimensions. The significant value is foundto be 0.000 which is below than 0.05, thus it is significantat 5% level of significance. Thus, null hypothesis is rejected andalternative hypothesis is accepted. So, there is significantrelationship between service quality dimensions and customersatisfaction in telecom sector services.08Hypothesis 3:H03: There is no significant relationship between marketingmix and customer satisfaction in telecom sectorservices.HA3:There is significant relationship between marketing mixand customer satisfaction in telecom sector services.www.pbr.co.in
Volume 8, Issue 3, September 2015Table 10 indicates that the multiple regression analysisidentifies that customer satisfaction is moderatelyaffected by marketing, as three out of seven marketingmix are found to be significant. It is clear that themarketing mix moderately contribute to the customersatisfaction. Since the moderate and positive relationshipis found between the both variables which imply that thegreater the marketing mix elements and greater is thecustomer satisfaction. Since p – value is less than 0.01 inproduct, process and physical evidence that means they aresignificant at 1% level of significance but the other marketingmix elements are insignificant at 1% level of significance so thealternative hypothesis is moderately supported that ismarketing mix elements are moderately related to the customersatisfaction. Thus, the multiple regression equation for themarketing mix elements and the customer satisfaction is givenas follows:-Table 11 shows the association between the marketingmix elements and the satisfaction of customers usingmobile telecom services in Delhi and NC
An Empirical Study on Factors Affecting Customers Satisfaction and Behavioural . importance of this study is that it focuses on identifying the various factors affecting the overall satisfaction of customers using mobile . customer a
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the empirical formula of a compound. Classic chemistry: finding the empirical formula The simplest type of formula – called the empirical formula – shows just the ratio of different atoms. For example, while the molecular formula for glucose is C 6 H 12 O 6, its empirical formula
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After distinguishing motivational factors from satisfaction factors, motivational factors should be maintained in a list for further processing while satisfaction factors should be ignored. Step 3: Factors that are not being fulfilled at work place should be short listed. These are the factors that need to be addressed in order to improve the
Part of the midterm exam will consist of a series of empirical problems to be solved using Stata and submitted electronically. Final Exam: The final exam is cumulative. Like the midterm, the final will include a series of empirical problems to be solved using Stata and submi
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