LAHORE GARRISON UNIVERSITY Area of Research: Marketing Research Topic:

LAHORE GARRISON UNIVERSITY

 

 

 

 

Area of Research: Marketing

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Research Topic: Impact
of service quality on customer satisfaction

Submitted By:

Mirza
Haris Baig

Roll No:

F16-MBA-009

Submitted To:

Ms.
Afaf Khalid

Course Title: Business
Research Methods

Department:
Business
Administration (MBA 3)

 

 

 

 

Abstract:

This study investigates the relationship between service
quality and customer satisfaction in the telecommunication industry. A total of
50 respondents participated in the study. Research questions and objectives
were set, alongside the hypotheses that were formulated and tested. Descriptive
statistics comprising the simple percentage and tables were used for data
presentation and analysis. Regression analysis and Pearson correlation
coefficient were used to testing our hypotheses. The study tells that service
quality has effect on customer satisfaction and that there is a positive
relationship between service quality and customer satisfaction. The researcher
concluded by recommending that organizations should focus more attention on
service quality, because of its effects on customer satisfaction. To ensure
that customer satisfaction level is high, organization must first of all know
the expectations of the customers and how they can meet such expectations. It
has been exposed that it costs to attract new customer than to retain existing
ones. It is also recommended that organizations should welcome suggestions from
customers and more programmed should be designed to measure service quality and
customer satisfaction better.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Introduction:

Telecommunication service providers
(TSPs) are of paramount importance to both developed and emerging economies In
Malaysia, TSPs are projected to contribute greatly to the national goal of
achieving status as a developed nation by the year 2020. Customer satisfaction
is defined as “the number of customers, or percentage of total customers,
whose reported experience with a firm, its products, or its services (ratings)
exceeds specified satisfaction goal. Today, telecommunication is an inseparable
part of our everyday life. Besides telephone, now-a-days mobile phones are
playing a great role to communicate from one place to another place. The mobile
telecommunication is one of the fastest growing industrial sectors in
Bangladesh. It is projected that Bangladesh will be the third biggest telecom
market in Asia after China and India (Uddin, Akhter 2012). The competition in
this sector has become very intense and the companies’ need for survival, in
these very difficult conditions that dominate in this sector, forces them to
search for ways to attract and retain customers (Vranakis et al. 2012). The
purpose of this research is to know the impact of service quality on customer
satisfaction in tele communication industries.

Literature review:

In previous researches, meeting and
exceeding expectations of clients and customers is a perspective that has
gained most attraction. This concept is all inclusive and cuts across service
domains, but expectations change and experiences with alternate service
providers could shape the customers’ expectations.

Customer Satisfaction:

Customer satisfaction is a personal
feeling of either pleasure or disappointment resulting from the evaluation of
services provided by an organization to an individual in relation to expectations.
Admittedly, satisfaction is more complex to define to accurately fit every
context and measure. In the words of Oliver (1997), everyone knows what
satisfaction is until asked to give a definition. Then it seems, nobody
knows. From marketing perspectives, customer satisfaction has multi-dimensionality.
Satisfaction can be related to attribute-specific and overall performance. It
is attribute-specific where it relates to a specific product or service (Cronin
& Taylor, 1992). For example, with mobile telecommunication, satisfaction
can be related to a specific attribute such as: Multimedia Messaging Service,
Mobile TV or Mobile Internet Service or satisfaction with the voice quality,
picture quality, speed, and the like.The object of customer satisfaction may be
varied and can be related to different dimensions of multiple experiences with
product/service provider (Surenshchandar et al. 2002 cited in Satari, 2007).
Customer satisfaction can be defined as it is a judgmental level of product or
services that provides a pleasurable level of consumption. Customer satisfaction
related to fulfilling customer requirement and providing them long lasting benefits
(Syed Saad Andaleeb, 2006). Customer satisfaction as a judgment that a product
or service feature, or the product or service itself, provides a pleasurable
level of consumption related fulfillment (Oliver 1997). Jones, Sasser (1995) mentioned that achieving
customer satisfaction is the main goal for most service firms today.

Service quality:

Service quality and customer
satisfaction are two distinctive constructs but highly correlated. It is
concluded that to achieve high customer satisfaction a business must develop a
high perception level about service quality (G.S. Suresh chandar, 2002). Gronroos
(1984) defined service quality as the outcome of the evaluation process where
the customer compares his expectation with the service he perceives during the
service encounter. Similarly, Parasuraman et al. (1988) delineated service
quality as the consumer’s overall evaluation of a specific service firm that
result from comparing that firm performance with the customer general
expectations of how firms in that industry should perform. Nowadays, delivering
quality service is an integral part of an ongoing strategy of most business
firms and constitutes an essential ingredient for success and survival in the
present day’s competitive environment (Ulwick, Bettencourt 2008).Service
quality has been the subject of considerable interest by both practitioners and
researchers in recent years (Henderson 2013).When customers get expected
service quality, it leads to higher satisfaction (Hutchinson et al. 2009).
Quality is a multi-dimensional phenomenon (Mosahab et al. 2010). Thus, reaching
the service quality without distinguishing the important aspects of quality is
impossible. Service quality can be described as a rationale of differences
between expectation and competence along the important quality dimensions. (V.A. Parasuraman A. Z., 1985) identified ten
requirements useful for customers’ evaluation of the quality of services; few
of them are reliability, responsiveness understanding the customers and service
accessibility.

Reliability: Ability to perform the promised service
dependably and accurately.

Responsiveness: Willingness to help customers and provide
prompt service.

 

Frame work

 

 

 

 

 

Hypothesis

H1: Service
quality has a significant impact on customer satisfaction

Research Questions

1)      What is the impact of service quality on
customer satisfaction in telecommunication industry?

Methodology:

This section focuses on the research techniques employed in this study. It
consists of research design, research population, sample and sampling
techniques, data collection instruments, administration of the instrument,
validity and reliability of the research instrument, method of data analysis
and problems encountered on the field in the course of this study. For the
purpose of this study, survey research design was adopted. This is because
survey research design helps in collecting data from members of a population in
other to determine their current status in that population with respect to one
or more variables. In selecting our sample for this study, a simple random
sampling method was used. This ensures that every member of the population has
equal chance of being part of the sample. 
Primary data collected through questionnaires were used in this study. .
The population consists of the student of the Lahore Garrison University. The
sample size of our population is 360 but due to some limitation I only choose
the 50 students of Lahore Garrison University. The questionnaire were given to
individual respondent who were given time to complete them objectively and
honestly.The responses of student were use for analysis. Analysis of data was
done through appropriate descriptive statistics procedure while the hypotheses
were tested with the help of linear regression correlation analysis. . In this
study the coefficient alpha (Cronbach Alpha) was used to test the reliability
of the measurement scale. The Cronbach alpha for this study is 0.650 for
customer satisfaction and .624 is reliability of service quality. This implies
that data collected are reliable

Reliability of C.S

Crobach
Alpha

No of
items

.650

4

 

Reliability of S.Q

Crobach Alpha

No of items

.624

8

 

 

 

 

 

Data analysis and
discussion:

                Table
1: Gender Distribution of Respondents

Gender

Frequency

Percent

Male

24

50%

Female

24

50%

Total

50

100%

 

 

 

 

Table 1 above shows the gender distribution of the
respondent of the researcher’s questionnaires which indicates that male
respondents were 24 (50%), while female respondent were 24 (50%). This implies
that there is equal distribution in male and female respondent.

 

                   Table 2: Frequencies of
respondent

                  

 

Frequency

Percent

Strongly disagree

1

2

Disagree

1

2

Neutral

9

19

Agree

24

50

Strongly agree

13

27

Total

48

100

 

 

 

 

 

 

 

This table shows that majority of the respondents (50%)
agree the statement, 19% prefers neutral, 2% preferred disagree and 2 percent
preferred strongly disagree while remaining respondents 27% preferred Strongly
agree.

 

      

 

 

 

 

 

 

 

                  Table 3:Are you Satisfied
from customer care service of your telecommunication Company?

 

 

Frequency

Percent

Strongly disagree

 

 

Disagree

2

4.2

Neutral

9

18.8

Agree

23

47.9

Strongly agree

14

29.2

Total

48

100

 

 

 

 

 

 

 

This table shows that majority of the respondents (47%)
agree the statement, 18% preferred neutral, 4.2% preferred disagree and while
remaining respondents 29.2% preferred Strongly agree.

 

      

 

Frequency

Percent

Strongly disagree

 

 

Disagree

 

 

Neutral

14

29.2

Agree

17

35.4

Strongly agree

17

35.4

Total

48

100

                    Table 4:
Are You Satisfied from customized service?

 

 

 

 

 

 

 

 

This table shows that majority of the respondents (35.4%)
agree the statement, 29.2% preferred neutral, while remaining respondents 35.4%
preferred Strongly agree.

 

               

 

 

 

 

                     

Table 5: Are you Satisfied from messages
regarding new plans?

 

 

 

 

 

 

 

This table shows that majority of the respondents (47.9%)
agree the statement, 27.1% preferred neutral, 6.3% preferred disagree, while
remaining respondents 18.8% preferred Strongly agree.

 

 

Table 6: When a customer has a problem, service provider should
show a sincere interest in solving it?

 

Frequency

Percent

Strongly disagree

 

 

Disagree

3

6.3

Neutral

13

27.1

Agree

23

47.9

Strongly agree

9

18.8

Total

48

100

 

Frequency

Percent

Strongly disagree

3

6.3

Disagree

0

0

Neutral

8

16.7

Agree

17

35.4

Strongly agree

20

41.7

Total

48

100

 

 

 

 

 

 

 

This table shows that majority of the respondents (35.4%)
agree the statement, 16.7% preferred neutral, 6.3% preferred strongly disagree
and while remaining respondents 41.7% preferred Strongly agree.

 

 

 

Frequency

Percent

Strongly disagree

 

 

Disagree

 

 

Neutral

8

16.7

Agree

24

50

Strongly agree

16

33.3

Total

48

100

Table 7:
They should provide their services at the time they promise to do so?

 

 

 

 

 

 

 

This table shows that majority of the respondents (50%)
agree the statement, 16.7% preferred neutral, while remaining respondents 3.3%
preferred Strongly agree.

                        

                   Table 8: Cooperative
behavior or courtesy behavior of your service provider?

 

Frequency

Percent

Strongly disagree

2

4.2

Disagree

 

 

Neutral

12

25

Agree

24

50

Strongly agree

10

20.8

Total

48

100

 

 

 

 

 

 

 

 

This table shows that majority of the respondents (50%)
agree the statement,25% preferred neutral, 2% preferred S. disagree and while
remaining respondents 20.8% preferred Strongly agree.

        

 

 

 

 

 

 

 

 

               

 

  Table 9: Personal
attention and proper time given by attendant?

 

 

Frequency

Percent

Strongly disagree

0

0

Disagree

3

6.0

Neutral

15

30.0

Agree

28

56.0

Strongly agree

4

8.0

Total

50

100.0

 

 

 

 

 

 

 

This table shows that majority of the respondents (56%)
agree the statement that their service provider give personal attention and
proper time. 30% preferred neutral, 6% preferred disagree and while remaining
respondents 8% preferred Strongly agree.

 

                  Table 10: Employees should
make information easily obtainable by the customers?

 

Frequency

Percent

Strongly disagree

0

0

Disagree

0

0

Neutral

9

18.0

Agree

37

74.0

Strongly agree

4

8.0

Total

50

100.0

 

 

 

 

 

 

 

This table shows that majority of the respondents (74%)
agree the statement that Employees should make information easily obtainable by
the customers, 18% preferred neutral, while remaining respondents 8% preferred
Strongly agree.

 

 

 

 

 

 

 

Table 11: Employees in a telecommunication should never be too
busy to respond to customers’        requests.?

 

Frequency

Percent

Strongly disagree

1

2.0

Disagree

6

12.0

Neutral

13

26.0

Agree

21

42.0

Strongly agree

9

18.0

Total

50

100.0

 

 

 

 

 

 

 

This table shows that majority of the respondents (42%)
agree the statement that Employees in a telecommunication should never be too
busy to respond to customers’ requests, 26% preferred neutral, 12% preferred
disagree and 2% preferred strongly disagree, while remaining respondents 18%
preferred Strongly agree.

 

Frequency

Percent

Strongly disagree

2

4.0

Disagree

1

2.0

Neutral

8

16.0

Agree

34

68.0

Strongly agree

5

10.0

Total

50

100.0

 

 

             Table 12: Service provider should have the knowledge to answer customers’
questions

 

 

 

 

 

 

 

This table shows that majority of the respondents (68%)
agree the statement that Service provider should have the knowledge to answer
customers. questions 16% preferred neutral, 2% preferred disagree and 4%
preferred strongly disagree while remaining respondents 10% preferred Strongly
agree.

 

         

 

 

 

 

            Table 13: The employees should
understand the specific needs of their customers?

 

Frequency

Percent

Strongly disagree

3

6.0

Disagree

0

0

Neutral

5

10.0

Agree

36

72.0

Strongly agree

6

12.0

Total

50

100.0

 

 

 

 

 

 

 

This table shows that majority of the respondents (72%)
agree the statement that the employees should understand the specific needs of
their customers, 10% preferred neutral, 6% preferred strongly disagree while
remaining respondents 12% preferred Strongly agree.

 

 

 

Descriptive
Statistics:

Table 14:

Variable

N

Mean

Std. Deviation

C.S (dv)

50

14.30

2.32

S. Q (iv)

50

30

3.19

 

This table show the mean and std.
deviation of dependent and independent variable. The mean of Customer
satisfaction is 14.30 and std. deviation is 2.32. In addition, the mean of
service quality is 30 and std. deviation is 3.19.

Correlation among variable:

Table 15:

 

C.S

S.Q

Pearson correlation
Sig (two tailed)
N

1
 
50

.547**
.000
 50

Pearson correlation
Sig (two tailed)
N

.547**
.000
50

1
 
50

** correlation is significant at
the 0.01 level (2 tailed)

Bivariate correlation is used to know the nature and significant level
of the variable and to know the relationship of the variable. That’s why
researcher used to bivariate correlation to compute pearson’ correlation. This
table show that there is a positive significant relationship between c.s and
s.q r=1 and sig=.000 which indicate the positive significant correlation
between these two variables.

 

Table 16: ANOVA

 

Model

Sum of square

Df

Mean of square

F

Sig

Regression
Residual
Total

79.4
186.3
265.7

I
48
49

79.40
3.88

20.451

.000

 

 

The table show that the independent
variable has significant relationship with customer satisfaction. F=20.451 and
sig =.000

 

 

 

 

Table 17: Coefficient

 

Model

Unstandardized
Coefficient

Standardized coefficient

 
t

 
Sig

B

Std. Error

Beta

1 constant
S.Q

2.408

.399

2.662
.088

 
.547

.904
4.522

.370
.000

C.S (d.v)

Table was made determine whether service quality has an
effect on customer satisfaction. The result of regression analysis shows that there
is significant relationship between service quality and customer satisfaction
(b=.399) and sig=.000 so that the first hypothesis is accepted because
significant value of result is less than 0.05

 

 

 

 

 

 

 

 

 

 

Conclusion and Recommendation:

The general
objective of this study is to determine the relationship between service
quality and customer satisfaction, and also investigate the strategies utilised
by an organisation to deliver exceptional service quality and customer
satisfaction through customer service. These objectives were tested by One
hypotheses. It is also clear from this research that customer service has
impact on service quality perception and customer satisfaction.

Telecommunication
companies should improve its care service about customer, since it is the most
preferred form of customer service.

Telecommunication
companies should also ensure that staffs are knowledgeable of customers’
requests and problems.

Telecommunication
company staff should always listen to what your customer wants because
customers don’t buy products or services, they sometimes buy solutions to
problems. 

Telecommunication
communication staff should encourage and welcome suggestions on improving
customer satisfaction

Many programs
should be designed to measure service quality and customer satisfaction, and
also to improve customer service.

More independent
variable, and hypothesis should be used in future to get know more about
service quality impact on customer satisfaction

Limitations:

This study has been
conducted within very short time of period. Small size of sample has been used
for research and tested within Lahore Garrison University.

 

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Appendix: