SERVICE GAP MANAGEMENT AND CUSTOMER SATISFACTION OF TELECOMMUNICATION FIRMS IN PORT HARCOURT
The aim of this study is to examine the influence of service gap management and customer satisfaction of telecommunication firms in Port Harcourt.
OTHER RELATED PROJECT TOPICS HERE
CHAPTER ONE
INTRODUCTION
Background of the Study
Over the years, marketing has transited into a more interesting and competitive sector. The concept of service gap management in attaining organizational success has received attention from both manufacturers and retail organizations and also from players in services industries from all over the world, be it local or multi-national (Somuyiwa & Oyesikun, 2010). Service gap management and customer satisfaction are very important concepts that telecommunication firms must understand if they want to remain competitive and grow. Service quality is generally regarded as being a key factor in the creation of worth and in influencing customer satisfaction. Hence, telecommunication firms have to be strategically positioned to provide quality services to satisfy customers. To provide improved quality service, telecommunication companies need to investigate the degree of customers’ sensitivity and expectations toward service quality. Armed with such information, telecommunication outfits are then able to strategically focus service quality objectives and procedures to fit the market. Product and service delivery factors on reported levels of service quality within a single GSM provider. Mobile phones have become a necessity in human life. This is due to technological advances that allow people to communicate with each other anywhere and at any time. This also contributes to the increase in the telecommunication sector of the country. Leading telecommunication companies are now competing with each other in terms of service gap management to become a major service provider and attract more customers, in other words, they are becoming more consumer focus. This is the main reason customers often switch from one service provider to another service provider to get the best service. As competition gets on the rise among telecommunication firms, it is necessary for them to know current efficient service delivery, customer expectation, and trends about the service they provide and the customers’ perception of the service quality.
According to Hansemark & Albinson (2004) “satisfaction is an overall customer attitude towards a service provider, or an emotional reaction to the difference between what customers anticipate and what they receive, regarding the fulfillment of some needs, goals or desire “.Customer satisfaction is essential as it is known as a strong contributor to business profitability, competitive advantage, and a hallmark of a successful business (Nwokah & Maclayton, 2006). The development of Telephone networks is so rapid and gives the investors a quick return on investment more than they could have expected and Nigeria been one of the fastest developing Mobile Telecommunication markets in Africa, with a large number of subscribers that make it Africa’s largest market. Nigeria became one of Africa’s most vibrant cellular phone markets with four contending service operators i.e. Mtn, Airtel, Glo, and 9mobile. Most Telecommunication Companies spend a lot of money in trying to be bridge the gap between themselves and consumers on their service offerings that they believe will have a good impact on their products/services. That can help them to gain favourable market share, as they meet customer’s expectation, provide value-added services, and efficient service delivery systems. Service gap management has grown substantially within the global and telecommunication industries for the perceived fact that organizations feel customer satisfaction is the bait and plays an important role in the consumer decision-making process (Fashakin, 2010). There are several reasons for this dramatic growth in organizations. First, consumers have accepted new service design as part of their buying decision criteria. It provides reluctant decision-makers with an incentive to make choices by increasing the value offered. Second, the increasing tendency of businesses to focus on long-term results has helped spur growth in serving consumers better, which can provide an immediate boost in sales.
The telecommunications industry is highly competitive with each organization sourcing for subscribers. To retain consumers in face of keen competition, service providers must develop an efficient way of service gap management that will not only win customers but help to retain them. Customer satisfaction plays an important role in retaining old consumers and attracting new ones (Ayanwale, 2005). This is where service gap management becomes a pertinent necessity in organizational success. The aim of this study is, therefore; to measure the impact of service gap management and customer satisfaction of the telecommunication industry in Port Harcourt. Several studies have been undertaken on product innovation, most of these studies were conducted in developed nations, Europe and America particularly in the retail sector. However, few such studies have been conducted in developing countries like Nigeria, much less in the service sector and particularly in the telecommunication industry.
1.2 Statement of the Problem
This study‘s main problem is that working in the world’s market builds increasing risk and the defenselessness experienced by organizations and this way influences their outcome. Telecommunication firms are confronted with expanding challenges in service gap management (Mok & Sparks, 2001). How telecommunication firms can satisfy customer expectation and deliver quality service is an important problem for a variety of reasons. Service firms see the management of service gaps as a source of growth and a way of sustaining a competitive advantage. Many non-services recognize that their ability to compete now depends on deploying their goods with bundled service.
Policymakers recognize the central role of services gap management, especially for telecommunication firms, in the transition into a knowledge-based or information economy. Telecommunication services are rapidly changing at present, and satisfying a customer is a necessity. The popularity of digital devices among younger consumers has generated great interest among marketers. Especially the cell phone and mobile phone networks have become very popular among millions of young consumers around the world. In the past, research on service gap management and customer satisfaction has been done mostly in a mature market considering general consumers (Son, 2010). Constant service gap management has been widely used by these network providers in their attempt to outsmart their competitors and better satisfy their customers. The request has turned difficult to project since developing companies now take part in the world’s market, gauging interest and contenders reactions has turned out to be challenging. It is to this effect that the researcher proposes service gap management as a critical organizational factor affecting in satisfaction of the telecommunication industry in Port Harcourt.
1.3 Aim and Objectives of the Study
The aim of this study is to examine the influence of service gap management and customer satisfaction of telecommunication firms in Port Harcourt. The objectives of this study are to:
- Determine the extent to which customer expectation affects customer satisfaction of telecommunication firms in Port Harcourt.
- Determine the extent to which perceived quality affects customer satisfaction of telecommunication firm in Port Harcourt.
- Determine the extent to which service delivery affects customer satisfaction of telecommunication firms in Port Harcourt.
1.4 Research Questions
The following research questions were formulated as a guide to this study:
- To what extent does customer expectation affect customer satisfaction of telecommunication firms in Port Harcourt?
- To what extent does perceived quality affect customer satisfaction of telecommunication firms in Port Harcourt?
- To what extent does service delivery affect customer satisfaction of telecommunication firms in Port Harcourt?
CONCEPTUAL FRAMEWORK
Figure 1.1 Conceptual framework of service gap management and customer satisfaction of telecommunication firms in Port Harcourt.
Source: Researchers review of related literature (2019).
1.5 Research Hypotheses
A hypothesis is a comprehensive statement of the relationship between two variables. In the course of this study, the following hypotheses were postulated;
HO1: There is no significant relationship between customer expectation and repeat purchase of telecommunication firms in Port Harcourt.
HO2: There is no significant relationship between customer expectation and referral of telecommunication firms in Port Harcourt.
HO3: There is no significant relationship between perceived quality and repeat purchase of telecommunication firms in Port Harcourt.
HO4: There is no significant relationship between perceived quality and referral of telecommunication firms in Port Harcourt.
HO5: There is no significant relationship between service delivery and repeat purchase of telecommunication firms in Port Harcourt.
HO6: There is no significant relationship between service delivery and referral of telecommunication firms in Port Harcourt.
1.6 Significance of the Study
Practical Significance
The research work will be beneficial to lovers and consumers of Telephone networks, manufacturers, and retailers and provide solutions concerning ways in which they can get to their target customers and consumers with a minimum service gap.
Theoretical Significance
This research work will also be beneficial to those that are in an academic environment such as, lecturers, students studying marketing as a profession, and also interested scholars. Which in time to come, this work might be of use for future study.
1.7 Scope of the Study
The scope of the study was strictly defined by the research topic; service gap management and customer satisfaction of telecommunication firms in Port Harcourt. This study shows the context/theoretical, geographical, and where the study was conducted as well as the unit of analysis on which the research work is applied which are the consumers of telecommunication services.
Context/Theoretical Scope: This study focuses on the relationship between service gap management and customer satisfaction of telecommunication firms in Port Harcourt. The study is domicile in service gap management.
Geographical Scope: This research work will be carried out in Port Harcourt.
Level/Unit of Analysis: This study is interested in the micro-level/unit of analysis. The data that will be used to draw a conclusion in course of this study will be gotten from consumers of telecommunication services.
1.8 Limitations of the Study
The limitations of the study can be addressed under the following headings such as;
The Level of Bias: Research is a scientific process, which entails that every activity must be systematically and objectively done with little or no form of bias. Conversely, the nature of human beings is such that in almost everything he or she does, there is always an iota of bias in it. It is on this premise that the findings/results of some studies are not correct or most times not accurate.
Area of Research: This research work is strictly limited to Port Harcourt. Therefore, the result of this research work cannot be generalized to other states in the federation.
Measurement and Data Collection: This can also be a problem with the objective of this research work. Most times to get back questionnaires given to respondents is difficult, thereby leading to a waste of resources (the research instrument).
Lack of corporation by some respondents to supply answers to probing questions in the questionnaire is also a barrier in the study.
A poor choice in choosing a statistical tool can serve as a better barrier.
1.9 Definition of Terms
Service gap management: Is the difference, imbalance, or disparity which is determined to exist between customers’ perception of performance and their prior expectation
Customer satisfaction: A state where customer expectation of a service offering meets service demand.
Customer expectation: Customer expectation is a measure of the customer’s anticipation of the quality of a company’s products or services.
Perceived quality: In general, when customers perceive high quality, the product meets customers’ needs, which, in turn, leads to their satisfaction and loyalty (Juran & Gofrey, 1999).
Service delivery: Service delivery system design is the specification and construction of technologically networked social practices that deliver valuable capacities for action to a particular customer.
Referral: Customer referral is the process of networking for acquiring new customers by the organisation and incentivize the existing customer.
Repeat purchase: A state where a satisfied customer comes to purchase the same product over again.
1.10 Organization of Study
The study was organized in five chapters; chapter one comprises the introduction which deals with the background of the study, the profile of the organization under study, problem statement, objectives of the study, research questions, the significance of the study, a brief summary of the method used, scope, limitation, and organization of the study.
Chapter two reveals both the theoretical and empirical literature about the topic.
Chapter three looks at the methodology which is basically the research purpose, design, data collection methods, population, sampling technique for data collection and questionnaire design as well as a brief profile of the organization.
Chapter four presents, analyze and discuss the empirical results.
In conclusion, chapter five has a summary of findings, conclusions as well as recommendations.
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