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Impact of service quality on the customer satisfaction and customer loyalty in Nepalese telecommunication industry / Binita Shrestha
Title : Impact of service quality on the customer satisfaction and customer loyalty in Nepalese telecommunication industry Material Type: printed text Authors: Binita Shrestha, Author Publication Date: 2018 Pagination: 102p. Size: GRP/Thesis Accompanying material: 9/B Languages : English Descriptors: Telecommunication
Telecommunication equipment industry
Telecommunication systemsClass number: 384 Abstract: Telecommunications has been the means through which all transactions and activities are undertaken like aiding decision making, organizing, influencing, activating, instructing, providing feedback, promoting interpersonal and business relationships as well as exchange of information (Boohene & Agyapong, 2011).
The telecom market place is more competitive than ever and telecom operators are increasingly competing with players from other sectors. Operators need new ways to differentiate their offerings, increase revenues, reduce business costs and build brand equity-often in partnership with several other contents and application providers. For mobile operators, the goal is to become their customers channel of choice for a while range of service beyond traditional voice. Thus, operators need a fast, efficient way to offer new services and contents that are localized and unique to them, of to offer them packaged in a way that builds a unique user experience. Telecom industries play a vital role to develop the countries with emerging markets (Arokiasamy and Abdullah, 2013).
This study is an attempt to analyze the impact of service quality on customer relationship management and loyalty and attract the attention of practitioners towards betterment of service quality to reduce the customer attrition, and to give suggestions to improve the service quality. The results of the study help to determine the aspect of service quality (empathy, reliability, assurance, tangibility and responsiveness) to be focused while formulating customer relationship management strategies that influence the customers to retain for a longer period of time. This may also help to formulate strategies to retain the loyal.(Archi Dubey, Feb. 2016)
The opportunities that lie in the telecom market seem endless and the growing demand for mobile telephone systems is creating a worldwide market. Actors in this industry are seeking the most profitable markets (Hossain and Suchy, 2013). Today, telecommunication is an inseparable part of our everyday life. Besides telephone, now a day’s mobile phones are playing a vital role to communicate from one place to another place. The phone is not only used for making calls, among many other functions, it is used for communicating through text-messages, multi-media messages, as well as to connect us to the internet.
Telecommunication companies are becoming increasingly more customer-centric and are much interested not just on acquiring new customers, but more importantly, delighting and retaining existing customers. This is perhaps because it costs more to attract new customers than to retain existing ones. Again, it is more profitable retaining an old customer who is more likely to repurchase or reuse a company’s products services and recommend them to others. Customer retention is therefore, basically a product of customer loyalty and value which in turn is a function of the level of customer satisfaction or dissatisfaction (Reichheld, 1996).
The major objective of the study is to analyze the customer satisfaction towards telecom sector of Nepal. The specific objectives of this study are: to study the perception of customer on reliability, service quality, assurance, empathy, network quality, responsiveness and customer satisfaction in Nepalese telecommunication sector, to analyze the relationship of reliability and network quality with customer satisfaction, to examine the impact of service quality and responsiveness on customer satisfaction in Nepalese telecommunication sector, to find out the most important service quality dimension affecting customer satisfaction.
The primary source of data is used to assess the opinion of customers with respect to customer satisfaction in Nepalese telecommunication sector. The survey is based on 201 respondents from 2 telecommunications sector in Nepal. The questions were asked in the Likert scale questions. The Likert scale questions of different variables as reliability, service quality, assurance, empathy, network quality, responsiveness, and customer satisfaction and customer loyalty were measured in 5 point scale. For the fact finding of the study primary data was analyzed by using percentage frequency distribution and methods such as descriptive statistics, correlation analysis and regression analysis.
The result of the study shows that there is positive correlation between service quality dimensions and customer satisfaction in the Nepalese telecommunication industries. The impact of reliability, service quality, empathy, assurance, network quality and responsiveness are positively significant with customer satisfaction. This indicates that good service quality dimensions in the form of reliability, price fairness, network quality and responsiveness tends to increase customer satisfaction. Reliability and network quality has the highest weighted mean which reveals that it is followed by the Nepalese telecommunication sectors. Likewise, service quality and responsiveness has lowest weighted mean values which indicate that service quality and responsiveness is not effectively followed in Nepalese telecommunication sectors. Beta coefficient of reliability is positive. It indicates that higher the level of reliability, higher would be the customer satisfaction. The beta coefficient for service quality is positive with customer satisfaction. Likewise, the result shows that beta coefficient for network quality is positive. The results show that beta coefficient for responsiveness is also positive. It indicated that more the services are responsive higher would be the customer satisfaction and customer loyalty.
Impact of service quality on the customer satisfaction and customer loyalty in Nepalese telecommunication industry [printed text] / Binita Shrestha, Author . - 2018 . - 102p. ; GRP/Thesis + 9/B.
Languages : English
Descriptors: Telecommunication
Telecommunication equipment industry
Telecommunication systemsClass number: 384 Abstract: Telecommunications has been the means through which all transactions and activities are undertaken like aiding decision making, organizing, influencing, activating, instructing, providing feedback, promoting interpersonal and business relationships as well as exchange of information (Boohene & Agyapong, 2011).
The telecom market place is more competitive than ever and telecom operators are increasingly competing with players from other sectors. Operators need new ways to differentiate their offerings, increase revenues, reduce business costs and build brand equity-often in partnership with several other contents and application providers. For mobile operators, the goal is to become their customers channel of choice for a while range of service beyond traditional voice. Thus, operators need a fast, efficient way to offer new services and contents that are localized and unique to them, of to offer them packaged in a way that builds a unique user experience. Telecom industries play a vital role to develop the countries with emerging markets (Arokiasamy and Abdullah, 2013).
This study is an attempt to analyze the impact of service quality on customer relationship management and loyalty and attract the attention of practitioners towards betterment of service quality to reduce the customer attrition, and to give suggestions to improve the service quality. The results of the study help to determine the aspect of service quality (empathy, reliability, assurance, tangibility and responsiveness) to be focused while formulating customer relationship management strategies that influence the customers to retain for a longer period of time. This may also help to formulate strategies to retain the loyal.(Archi Dubey, Feb. 2016)
The opportunities that lie in the telecom market seem endless and the growing demand for mobile telephone systems is creating a worldwide market. Actors in this industry are seeking the most profitable markets (Hossain and Suchy, 2013). Today, telecommunication is an inseparable part of our everyday life. Besides telephone, now a day’s mobile phones are playing a vital role to communicate from one place to another place. The phone is not only used for making calls, among many other functions, it is used for communicating through text-messages, multi-media messages, as well as to connect us to the internet.
Telecommunication companies are becoming increasingly more customer-centric and are much interested not just on acquiring new customers, but more importantly, delighting and retaining existing customers. This is perhaps because it costs more to attract new customers than to retain existing ones. Again, it is more profitable retaining an old customer who is more likely to repurchase or reuse a company’s products services and recommend them to others. Customer retention is therefore, basically a product of customer loyalty and value which in turn is a function of the level of customer satisfaction or dissatisfaction (Reichheld, 1996).
The major objective of the study is to analyze the customer satisfaction towards telecom sector of Nepal. The specific objectives of this study are: to study the perception of customer on reliability, service quality, assurance, empathy, network quality, responsiveness and customer satisfaction in Nepalese telecommunication sector, to analyze the relationship of reliability and network quality with customer satisfaction, to examine the impact of service quality and responsiveness on customer satisfaction in Nepalese telecommunication sector, to find out the most important service quality dimension affecting customer satisfaction.
The primary source of data is used to assess the opinion of customers with respect to customer satisfaction in Nepalese telecommunication sector. The survey is based on 201 respondents from 2 telecommunications sector in Nepal. The questions were asked in the Likert scale questions. The Likert scale questions of different variables as reliability, service quality, assurance, empathy, network quality, responsiveness, and customer satisfaction and customer loyalty were measured in 5 point scale. For the fact finding of the study primary data was analyzed by using percentage frequency distribution and methods such as descriptive statistics, correlation analysis and regression analysis.
The result of the study shows that there is positive correlation between service quality dimensions and customer satisfaction in the Nepalese telecommunication industries. The impact of reliability, service quality, empathy, assurance, network quality and responsiveness are positively significant with customer satisfaction. This indicates that good service quality dimensions in the form of reliability, price fairness, network quality and responsiveness tends to increase customer satisfaction. Reliability and network quality has the highest weighted mean which reveals that it is followed by the Nepalese telecommunication sectors. Likewise, service quality and responsiveness has lowest weighted mean values which indicate that service quality and responsiveness is not effectively followed in Nepalese telecommunication sectors. Beta coefficient of reliability is positive. It indicates that higher the level of reliability, higher would be the customer satisfaction. The beta coefficient for service quality is positive with customer satisfaction. Likewise, the result shows that beta coefficient for network quality is positive. The results show that beta coefficient for responsiveness is also positive. It indicated that more the services are responsive higher would be the customer satisfaction and customer loyalty.
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