ABSTRACT
The study examined the effect of quality service delivery in enhancing customers’ satisfaction among MTN users in Abia State. The objective of the study was to evaluate the effect of quality service delivery in enhancing efficient customer satisfaction in MTN. However, the study seeks to examine the problems encountered in achieving quality service delivery in MTN; to determine the various ways MTN design their service mix to achieve quality service delivery; determine the effect of quality service delivery on achieving customer satisfaction in MTN and to determine the relationship existing between quality service delivery and customer’s satisfaction. The sample size of the study was 400, this was determined using Taro Yamane’s method; a well structured questionnaire was designed and used to collect primary data for the study which were later analyzed using sample percentage and multiple regression model. The study concluded that customer satisfaction is an experience based assessment made by customers on their over-all expectation of the service quality and deliver. However, age has positive relationship at 1%. This implies that as an individual grows, he/she has better rating index for MTN service quality, Location was also with positive relationship with Umuahia and Aba at 5% respectively while Isiukwuator was at 1% .this shows that customers in Aba and Umuahia have better service quality perception than the customers in Isiukwuator. In the area of occupation, civil servants has negative relationship with their perception of service quality at the probability level of 10%, Students had a positive correlation of 1%. This indicates that they perceive MTN service quality as unsatisfactory. However, the study recommended that MTN telecommunication operators should improve their customer service level. Such will attract, retain, and retrieve customer for the company and MTN operators need to provide reasonable validity period that are aligned with mobile service attributes to maximize this factions and this should be done periodically.
TABLE OF CONTENTS
Title i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Table of contents viii
List of tables’ ix
Abstract x
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 4
1.3 Objectives of the Study 5
1.4 Research Questions 5
1.5 Research Hypothesis 6
1.6 Scope of Study 6
1.7 Significance of Study 6
1.8 Limitation of study 7
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction 8
2.2 Historical Background of Mobile Telephone Network ( MTN Nigeria) 8
2.3 Nature and Meaning of Service 9
2.4 Services Marketing 9
2.4.1 Characteristics of Service Marketing 9
2.5 Service Marketing Mix 10
2.6 Service Marketing Premises and Strategy 11
2.7 Planning and Developing Service 12
2.8 Service Marketing and Consumer Behavior 13
2.9 Challenges of Service Marketing 14
2.10 Improving Service Quality 15
2.10.1 Service Quality and Productivity Improvement 16
2.11 Service Failures and Recovery 16
2.12 Complaining Behavior of Customers 18
2.13 Complaining Outcomes 20
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design 24
3.2 Area of Study 24
3.3 Population of the Study 25
3.4 Determination of the Sample size 25
3.5 Sampling Techniques 26
3.6 Method of Data Collection 26
3.6.1 Instrument 27
3.6.2 Data sources 27
3.7 Method of Data Analysis 27
3.8 Model Specification 27
3.9 Validity 28
3.10 Reliability 28
CHAPTER FOUR
RESULTS AND DICUSSIONS
4.1 Socio-Economic Characteristics 29
4.2 Customer Satisfaction with the Services of MTN Operators 32
4.3 Delivering of quantity service to the target customer 35
4.4: Analysis of the Determinants of customer satisfied among MTN 37
subscribers in Abia State
CHAPTER 5
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1: Summary 39
5.2: Conclusion 39
5.3: Recommendations 40
REFERENCE
APPENDIX
LIST OF TABLES
Table 4.1.1: Age of Respondents 29
Table 4.1.2: Gender of Respondents 29
Table 4.1.3: Occupation of the Respondents 30
Table 4.1.4: Location of Respondents 30
Table 4.1.5: Income level of Respondents (Monthly) 30
Table 4.1.6: Educational level of Respondents 31
Table 4.2.1 Customer Satisfaction with the Services of MTN Operators 31
Table 4.2.2: The likely problems encountered in the use of MTN Services 32
Table 4.2.3: How the Customers rate services billing of MTN mobile
Operators 32
Table 4.2.4 Customer rating of the validity period of MTN mobile
Operators 33
Table 4.2.5: Customers satisfaction with service quality 33
Table 4.2.6 Preference of MTN services delivery to other networks 34
Table 4.3.1 Delivering of quantity service to the target customer 35
Table 4.3.2: Mention the problem encountered in the delivery of these
Services. 36
Table 4.3.3: Various ways these problems can be solved 36
Table 4.3.4: Quality service delivery of MTN enhances better
Customer satisfaction among the customers. 36
Table 4.4.1: Relationship Between Age, Gender, Location, Occupation
and Customer Satisfaction Rating 37
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The term “marketing” has different definitions. Ama (2000) defined it as the performance of business activities that directs the flow of goods and services to the customer. Institute of Marketing, UK (2005) added that marketing is the management process responsible for identifying and satisfying customers’ requirements profitably. However, (Onah and Thomas, 2003) in their own view defined marketing as those activities by individuals or organizations either profit or non-profit that enables, facilitates and encourages exchange to the satisfaction of both parties. A comprehensive definition of marketing was given by Bearden, ingram and LaFaorg (2007). They defined marketing “as an organizational function and a set of processes for creating, pricing, communicating. and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders”. This builds a long-term and mutually profitable relationship with the customers. This can be achieved by a right combination of marketing variables that are under the control of the company.
For any country to achieve national development, several aspects of the economy are expected to change positively. A strategic aspect of these expectations is the quality of services of the telecommunications industry (Bello-iman and obadan, 2004). The introduction of the Global System of Mobile Communication (GSM) into the Nigeria market in August, 2001 brought amazing transformation to the telecommunications industry. It made telephone lines available to most Nigerians. Telephone lines increased from 656,461 in 2001 when GSM was introduced to 81,195,684 in 2010 (Onwuegbuchi, 2010). It has also enhanced the revenue base of the government as well as generated employment opportunities in the country. The rationale and motivation for this study lies on the fact that despite these benefits, Magbeola (2004) and CPC (2010) noted that the operations of GSM have been shrouded in controversy notwithstanding the fact that it has been of utmost benefit to consuers and the economy generally. GSM services have been criticized overtime for high tariffs, drop calls, acute network congestion, wrong billings, poor signals, call jamming, speech breakages, echoing of speech, delay or non-delivery of text messages after necessary charges have been deducted, inability to load recharge cards and general poor services (CPC, 2010). Aminu and hartini (2008) observed that rapid diffusion of GSM services is accompanied by low satisfaction and high switching behavior.
Customer satisfaction is a fundamental goal of marketing as the purpose of marketing is to satisfy customers’ want and desires. In the option of Bloemer and odekerken-schroder (2002), customer satisfaction is the result of successful marketing that creates competitive value for consumers. Contemporary marketing efforts are geared towards meeting consumer’s needs and ensuring customer satisfaction and strategizing on how to retain such customers. Unfortunately, most marketing efforts focus on attracting new customers rather than retaining old ones (Hassan, 2008).
Services can be described as activities, benefits or satisfaction which are offered for sale or are intangible in nature i.e. they are not concrete objects which can be seen, felt or tasted rather we enjoy the benefits from them. When a customer buys a service from the service market he simply buys the time, knowledge and skill from someone who is the service provider. With these, we can say service marketing refers to the marketing of services against tangible products. In addition, service marketing can be defined as the marketing of processes, deeds and performance.
Service marketing possesses unique characteristics that differentiate them from marketing of tangible goods. The most common characteristics include (Anuforo and Boniface, 2013; 2014):
i. Intangibility
ii. Inseparability
iii. Perishability
iv. Variability
a. Intangibility: Services are activities performed by the service provider unlike physical products; services cannot be seen, felt or smelt before they are consumed. Not all services products have similar intangibility. Some services are highly intangible while others are low.
b. Inseparability: Services are typically produced and consumed simultaneously. In the case of physical goods, they are manufactured into products, distributed through multiple reservoirs and consumed later but in the case of services, it is different because the service cannot be separated from the service provider.
c. Perishability: Services are acts, performance or deeds whose consumption takes place simultaneously. Services cannot be stored i.e. the value of services exist at the point where it is required.
d. Variability: Services are highly variable, as they depend on the service provider.
Just like the marketing mix of a product the service marketing comprises of product, price, place and promotion. However, as a service is not tangible the marketing mix has three additional elements which are: People, Process, and physical evidence. In competition services are similar; we win and lose customers based on the quality of the service. Only customers can judge the quality of service rendered, one must first understand how the customers and potential customers judge quality service. Quality Service is not an accident and can be improved through total commitment. (Lovelock, 2006).
However, service organizations appreciate the need to offer quality services at all times to their customers. This expectation is not always realized due to the nature of services which vary in different ways including the production process and the outcome In the course of service delivery. As noted by Kelly and Davis (2004) one negative service encounter can undermine an extraordinary record of superior service, lowering evaluations of quality service and causing customers to search for alternative service providers.
Service recovery can be defined as actions taken by service providers in response to service failures. Service recovery also means trying to put back smile on a customer’s face after you have made a mistake. This way he feels that the company cares and will be an advocate for the company. When services fail, some customers would complain while the majority would not but would say damaging things about the services providers. In term of utility, those who complain are more useful to the services providers. This is because the complaints provide opportunities for service recovery. Complaints when properly addressed and recovered result in service recovery paradox in which the aggrieved but now satisfied customer will rate the company performance higher than he would have if there was no service failure. However, the concept of service failure and the strategies for recovery will be discussed in chapter two.
1.2 Statement of the Problem
Marketing of service is similar in the telecommunication industry to service marketing when subjected to theoretical and empirical analysis. This therefore, required that the seven P’s (7ps) become the marketing mix variables of the telecommunication like in the MTN Nigeria should be more of “Real Marketing Thinking”. This can be done by the service providers and the likes carrying out market oriented strategic planning for not only to achieve comprehensive and long term planning. The research problem is concerned with identifying opportunities through which telecommunication industries satisfy their subscribers to achieve effective and efficient service quality. It is the intention of this research work to identify the impact of service quality delivery on subscribers, how they react to it (whether negatively or positively) and how it influence their buying behavior.
1.3 Objectives of the Study
The main objective of this study is to evaluate the effect of quality service delivery in enhancing efficient customer satisfaction in MTN; however, the study seeks to achieve the following specific objectives:
1. To examine the problems encountered in achieving quality service delivery in MTN.
2. To determine the various ways MTN design their service mix to achieve quality service delivery
3. Determine the effect of quality service delivery in achieving customers satisfaction in MTN
4. To determine the relationship existing between quality service delivery and customers satisfaction.
1.4 Research Questions
Some questions will be designed to guide the study. They are stated below:
1. What are the problems usually encountered by MTN while rendering service?
2. What are the various ways through which MTN design their service mix to achieve quality service delivery?
3. How does quality service delivery affect customers’ satisfaction in MTN?
4. What is the relationship between quality service delivery and customer satisfaction?
1.5 Research Hypotheses
In the course of this study, some hypotheses stated in null form will be used to guide the study. They are:
HO1: Quality of customer service does not enhance effective customers satisfaction and competitive advantage in MTN.
HO2: Age, occupation, location, validity period and gender are not significant in influencing customer services and satisfaction among MTN subscribers.
1.6 Scope of the Study
The scope of the study is the effect of quality service delivery in enhancing customer’s satisfaction among MTN users in Abia State.
1.7 Significance of the Study
The benefit of this study is enormous but in specific term, the study will be of important to the following groups:
a. Business organizations: the result of this study will be significant to telecommunication business organizations because they will become more aware of the factors that affect the service quality delivery in enhancing customers satisfaction among telecommunication subscribers.
b. The Investors: It is noted that a particular telecommunication company has a high level of sales resulting from good service marketing strategy; the investors may decide to invest in the telecommunication industry as its profit will be high as well as dividend.
c. Academic: The result of this study will be significant to the academic as it will form the basis for research work in pricing strategies.
1.8 Limitation of study
In a study of this nature, a lot of problems are bound to appear. It was then a task for the researcher to strive to achieve the best i could in spite of these problems.
This study however, was limited by lack of finance the researcher was constrained by lack of finance to limit his study area. A lot of expenses were also incurred in questionnaire typing and interview schedule. This constraint also posed a problem
The researcher being a graduating student had to allocate the available time between lecture hours and appointment schedule with these respondents. Even some of the educated people were reluctant filling their questionnaires. In addition, getting the relevant information from Mtn staff was an uphill task
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