POST-COMPLAINTS SATISFACTION AND CUSTOMER RETENTION OF MOBILE TELEPHONE IN PORT HARCOURT

POST-COMPLAINTS SATISFACTION AND CUSTOMER RETENTION OF MOBILE TELEPHONE IN PORT HARCOURT

The aim of this study is to ascertain the extent to which post complaints satisfaction influence customer retention of the mobile telephone in Port Harcourt.

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Competing in today’s global economy is becoming increasingly difficult. As customers often perceive products and services as homogeneous, retailers and designers try to differentiate themselves from competitors by directing the retail design of organizational environments toward triggering memorable customer experiences, a process in which multiple tangible and intangible stimuli can interact (Carù& Cova, 2007). Despite the growing recognition of the importance of post complaint satisfaction in the mobile telephone industry, academic literature on this topic often lacks conceptualization of the phenomenon.

Consumers of mobile telephone service providers in Nigeria are varied and their tastes, needs and expectations are also varied (NCC 2007). User satisfaction is very important in today’s business world. Deng et al (2009) stated that the ability of a service provider to create a high degree of satisfaction is crucial for product differentiation and developing a strong relationship with the user. Hanif et al (2010) stated that user satisfaction makes the phone users loyal to one telecommunication service provider. The satisfaction of the user can help the telephone will help to build long and profitable relationships with their users (Eshghi, 2007). It is apparent that differentiation solely based on hygiene factors such as functionality and quality is no longer a sustainable competitive advantage, rather they become fundamentals to operate in the marketplace. To stay competitive, many industry have adopted approaches like Customer Relationship Management (CRM). However, for a customer to be retained, he must be attracted first. Given the formidable facts of rapid shifts in business environments, customers’ demand poses the challenges for firms achieve sustainable competitive advantages in the long run (Gentile et al. 2007).

Perhaps, Post-complaint satisfaction describes the extent to which service recovery efforts of firms meet or exceed customers’ expectation and assuage their angst following a service failure. It is the sense of satisfaction consumers have after a problem-resolution experience (Mansfield & Warwick, 2000). Failure of service providers to meet expected standards may only upset or annoy customers. Customers will, however, exhibit complaint behaviour if and when the service provider fails to address the issue immediately, especially if the failure occurs in the core service (Hoffman & Kelly, 2000). Ensuring that customers get fair treatment in the event of service failure does not only bring about post complaint satisfaction, it also induces loyalty behaviours. When customers get committed to a service provider, they are likely to forgive a poor service experience and remain loyal to the service provider (Priluck, 2003). In this regard, research suggests that customers exhibit higher levels of trust and commitment when they are assuaged through adequate service recovery initiatives in the event of service failure, especially, if they have a relationship with the service provider (Priluck, 2003). Such customer-firm relationship according to Zamora et al (2004) and Vasques& Alonso (2000) can be represented by following a sequence that includes trust, relational commitment and loyalty.

However, customer retention is described in the context of behavioural intention to return to an organisation and willingness to recommend the organisation to others (Swan & Oliver, 1989; Zeithaml et al, 1996). It refers to a customer’s intention to repurchase a service from the service provider (Morgan & Hunt, 1994). Customer retention is a customer’s intention to stay loyal with the service provider especially in the context of switching costs (Edward &Sahadev, 2011). Customer retention is the inclination of the customers to stay with the service provider in future (Ranaweera&Prabhu, 2003). Zeithaml et al (1996) have used the term future behavioural intentions synonymous with customer retention. Zineldin (2000) retention is defined as a commitment to continue to do business or exchange with a particular company on an ongoing basis. Retention can be also defined as customer’s liking, identification, commitment, trust, willingness to recommend and repurchase intentions with the first four being emotional-cognitive retention constructs and the last two being behavioural intentions (Stauss, 2002). Customer retention refers to a long-term commitment on the part of the customer and the firm to maintain the relationship (Wilson, 1995).

Studies on post complaint satisfaction are replete in the literature (Ateke et al, 2015; Taleghani, et al 2011; Kang et al, 2009; Awa, 2012; Davidow, 2003). However, most of these studies are either conducted in business and economic environments that are markedly different from the Port Harcourt context, or are conducted using variables other than post complaint satisfaction as the predictor variable. With a view to contributing to the discourse on post complaint satisfaction therefore, the intent of the current study is to investigate the nexus between post complaint satisfaction and customer retention of the mobile telephone in Port Harcourt. It is on this backdrop that the current researcher wants to go into this study, to fill the knowledge gap that exists.

1.2 Statement of the Problem

The Nigeria customer is increasingly becoming self-aware of the need to receive high-quality service and to have their complaints about goods or services addressed by companies they deal with. Coupled with that is the increasingly fast-paced competition for excellent customer service amongst mobile telephone, post complaints satisfaction effectively has become a real point for competitiveness. When firms show an inability to deal with customer complaints, customer allegiance could be affected, resulting in high customer turnover and low customer retention. Consequently, the loss of one customer could cause a chain reaction where a lot more customers are lost: reducing market share, reducing mobile telephone profitability and increasing negative perceptions about the mobile telephone. In light of these assertions, it is imperative that mobile telephone perfect their customer handling procedures to avoid the bleak repercussions that come with failure. The challenge here is that most mobile telephone hardly, if not never, assess their customer complaint procedures to find out if it is delivering in terms of handling customer complaints effectively. Due to this, some mobile telephone adopts a nonchalant approach to customer complaints, especially if it is related to customer service, oblivious of the latent harm being caused to the mobile telephone. It is for this reason and the need for the mobile telephone to continuously be at the forefront of customer service and mobile telephone excellence in Nigeria, that this study has become imperative.

1.3 Aim and Objectives of the State

The aim of this study is to ascertain the extent to which post complaints satisfaction influence customer retention of the mobile telephone in Port Harcourt. Other specific objectives include:

1. To determine the extent to which assurance significantly influences brand commitment of mobile telephone in Port Harcourt.
2. To know the extent to which responsiveness significantly influences brand commitment of mobile telephone in Port Harcourt.
3. To ascertain the extent to which apology significantly influences brand commitment of mobile telephone in Port Harcourt.

Research Questions

With respect to the specific objectives, the following research questions were formulated to give direction to the study.

1. To what extent does assurance relate to the brand commitment of mobile telephone in Port Harcourt?
2. To what extent does responsiveness relate to the brand commitment of mobile telephone in Port Harcourt?
3. To what extent does apology relate to the brand commitment of mobile telephone in Port Harcourt?

1.5 Research Hypotheses

The hypothesis presented below where formulated from the research questions above.

H0₁: There is no significant relationship between explanation and brand commitment of mobile telephone in Port Harcourt.

H0₂: There is no significant relationship between apology and brand commitment of mobile telephone in Port Harcourt.

H0₃: There is no significant relationship between Responsiveness and brand commitment of mobile telephone in Port Harcourt.

Figure 1.1:    Conceptual Framework on Post Complaints Satisfaction and Customer Retention of Mobile Telephone in Port Harcourt.

1.6 Significance of the study

The outcome of this study is expected to benefit scholars, players in the mobile telephone industry in Port Harcourt, as well as other business practitioners.

Firstly, the study promises to bridge the gap in Post complaints Satisfaction and customer retention literature by providing an integrated view of the interactive relationship between assurance, responsiveness and apology on the brand commitment of mobile telephone in Port Harcourt. The study is geared towards extending the frontiers of knowledge in dynamic capabilities. This study promises to be a good reference material for researchers and academics in the field of marketing and other related to management science.

Secondly, primary data will be collected focusing on the consumer of the mobile telephone in Port Harcourt. The recommendations from this study may be beneficial to managers in this sector. Functional managers and sales representatives in this sector might gain an understanding of how to improve their organization’s mobile telephone.

Finally, communities, i.e public enterprises, government agencies, and parastatals stand to gain from this study.

1.7 Scope of the Study

Scope of the study sets the limits in terms of theoretical content, geographical scope and unit of analysis.

Content scope: This study adopted Lewins (1951) force field theory. Specifically, the study theoretically and empirically explores dimensions of post complaints satisfaction(Assurance, Responsiveness, and Apology) and the measures of customer retention (Brand Commitment).

Geographical Scope: The study revolved around customers of the mobile telephone industry in Port Harcourt.

Level/Unit of Analysis: The study placed emphasis on customers of a mobile telephone within Port Harcourt. Thus, data concerning the demographic characteristics of the subjects and observable. The data which were gotten from the responses of elements of the study.

1.8 Limitation of the study

Some factors posed a limitation to the generalisability of the results, findings and conclusion of this study. The following are the limitations of this study:

1. The findings from this study will be based on self-reported data, which may be subject to common method variance or potential respondent self-selection bias.
2. The study does not provide control for other factors that may moderate the relationship between post complaints satisfaction and customer retention I.e socio-cultural factors, economic factors, the life cycle of the industry, etc.
3. The study has limited generalizability because it focused on only the mobile telephone industry that has offices in Port Harcourt. Although the conceptual model of the study is theory-driven, the strength of the hypothesized relationships may vary across states and national boundaries. This can be attributed to the regulatory policies, cultural practices, other environmental factors peculiar to Port Harcourt.
4. Engaging the same respondents to indicate their perception of both the endogenous and target constructs limits the generalizability of the study conclusions. This approach gives rise to common method bias.
5. Data will be captured from multiple respondents of the same organization, which is capable of reducing bias.
6. Multiple assessments including non-response bias, Cronbach’s alpha, composite reliability, convergent validity and discriminant validity were used to support the accuracy of the data and the results.

1.9 Definition of Terms

Post-complaint satisfaction: This is describing the extent to which service recovery efforts of firms meet or exceed customers’ expectation and assuage their angst following service failure (Mansfield & Warwick, 2000).

Customer retention: This is described in the context of behavioural intention to return to an organisation and willingness to recommend the organisation to others (Zeithaml et al, 1996).

Assurance: This is an embodiment of trust and confidence. (Ekiz&Arasli, 2007).

Responsiveness: The willingness or readiness of employees to provide service, timeliness of service such as mailing a transaction slip immediately, calling the customers back quickly, and giving prompt service (Yarimglu, 2014).

Apology: This is a psychological exchange or what is offered by service providers in place of the problem or distress which the customer suffered (Ekiz & Arasli, 2007).

Brand commitment: An enduring attitude exhibited by a client for a particular network or firm (Brown, 2000).