Factors Influencing Customer Satisfaction In Mobile Telecommunication Industry In Nepal

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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

description

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

Transcript of Factors Influencing Customer Satisfaction In Mobile Telecommunication Industry In Nepal

  • 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 researchs 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 worlds 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. (Fecikov, 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 persons 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 companys 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 Value B 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 Value B 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 Value B 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 Value B 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 Value B 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 Value B 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 Value B 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 Value B 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 students

    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

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  • 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%

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    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%

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    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%

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    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%