The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization's products. Work done by Parasuraman, Zeithaml and Berry Leonard L  between and provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance.
This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature. The usual measures of customer satisfaction involve a survey  using a Likert scale. The customer is asked to evaluate each statement in terms of their perceptions and expectations of performance of the organization being measured. Good quality measures need to have high satisfaction loadings, good reliability, and low error variances.
In an empirical study comparing commonly used satisfaction measures it was found that two multi-item semantic differential scales performed best across both hedonic and utilitarian service consumption contexts. It loaded most highly on satisfaction, had the highest item reliability, and had by far the lowest error variance across both studies. A semantic differential 4 items scale e. In the study, respondents were asked to evaluate their experience with both products, along seven points within these four items: Finally, all measures captured both affective and cognitive aspects of satisfaction, independent of their scale anchors.
Recent research shows that in most commercial applications, such as firms conducting customer surveys, a single-item overall satisfaction scale performs just as well as a multi-item scale.
The ACSI measures customer satisfaction annually for more than companies in 43 industries and 10 economic sectors. In addition to quarterly reports, the ACSI methodology can be applied to private sector companies and government agencies in order to improve loyalty and purchase intent. The Kano model is a theory of product development and customer satisfaction developed in the s by Professor Noriaki Kano that classifies customer preferences into five categories: The Kano model offers some insight into the product attributes which are perceived to be important to customers.
Power and Associates provides another measure of customer satisfaction, known for its top-box approach and automotive industry rankings. Power and Associates' marketing research consists primarily of consumer surveys and is publicly known for the value of its product awards.
Other research and consulting firms have customer satisfaction solutions as well. For B2B customer satisfaction surveys, where there is a small customer base, a high response rate to the survey is desirable. In the European Union member states, many methods for measuring impact and satisfaction of e-government services are in use, which the eGovMoNet project sought to compare and harmonize.
From Wikipedia, the free encyclopedia. Upper Saddle River, New Jersey: The Future of Business: A Central Phenomenon in Marketing".
Fundamentals of Customer-Focused Management: Journal of Fashion Marketing and Management. Customer satisfaction toolkit for ISO Leading professional give you proven techniques for getting reliable results. Morgeson III, and M. Journal of Economic Psychology. The Customer Satisfaction Audit. Retrieved from " https: Business terms Customer experience Services marketing.
Customer privacy is another area of concern, where the apprehensions still remain in the mind of the customers. A fixed platform service is of not much acceptability, as there has been a shrinkage in te number of such users. A high density means enough bandwidth and spectrum allocation with suitable technology to achieve the desired level of service quality in terms of customer service and satisfaction. The internet has got two categories: The growth rate in broadband category is higher tan that at narrowband, as the speed of data transfer is one of the crucial factors in data interchange service user.
The main consideration for mobile use in this category consumers is the connectivity, not the quality of service. This is a direct reflection of the tariffs as imposed by the company.
Telecom Regulatory Authority of India, has to ensure a healthy competition, while achieving affordable tariffs with continual growth, through the formulation and implementation of regulatory policies and measures appropriate to the scenario.
TRAI has been successful in achieving this aim of providing the financial sustainability of the service provider and operators, promoting efficiency and effectiveness in the sector and meeting the social objectives of equality in service providing.
This has shown great rewards, which are apparent from the exceptional growth in subscriber base, with decrease in tariffs, to the advantage of customers. The light touch approach applied by the regulatory body TRAI has given the service providers some flexibility towards fixing the telecommunication tariff.
Today, the telecom consumer has a wide range of products and service options available. The consumer can select the one as per his usage and need profile. This gives him an option to pay for only what he needs and selects. This also is a factor contributing to user satisfaction. Many consumers have availed one unique option of Life Time Plan. It is a set of tariffs which enables the consumer to avail the same tariffs without any adverse rate changes, applicable throughout the license period of the service provider.
This also gives the consumer a sense of freedom from the rigmarole of tariffs calculation. The regulatory authority TRAI publishes a report every quarter on the factors that are indicative of the performance of the service provider, under the name 'The Indian Telecom Services performance Indicators'.
This testimony provides a extensive view on the Telecom Services in the country and also serves as an authentic reference document for various research agencies, stakeholders and analysts can use. The Total Revenue of the Telecom Service Sector has gone up and the contribution of revenue from the private companies is very high owing to their large market share. The Operating Ratio for the telecom service industry is shown an increase.
In the telecom service sector, the capital deployed has shown a declining pattern both in the public as well as private sector.
The gross capital investment of the telecom services sector ,however, shown the reverse pattern in case of major access telecom service providers. The Capital Employed Turnover Ratio for the entire sector has displayed an increase with a major share of increase taking place in the private sector as compared to the public sector. The public sector has also shown increase but the ratio is smaller in comparison to the private sector.
The Assets Net Turnover Ratio for the entire sector as well as the public and private sectors has shown a marginal incremental trend. It is, obtained by dividing debt by equity. The Debt Equity Ratio for the entire sector as well as the public and private sectors has shown a trend of growth. Major players in India in GSM sector are: As per Dept of Telecommunications, Ministry of telecommunications and Information Technology report , Indian telecom network is second largest in the world after China.
Overall tele-density in the country is Urban tele-density is The share of wireless telephones in total telephones is The share of private sector in total telephones is The wireless subscriber base was The total subscriber base of wireless services has grown from In Bangalore, the subscriber base of various telecom operators are in GSM network: The scope also covers the demographic preferences which would be usefully and gainfully employed to devise marketing strategies for the mobile service providers in Bangalore.
Alternative Hypothesis H1 Customer Satisfaction has a significant impact on the customer loyalty. To get an insight into the problem secondary data collection was done followed by primary data collection..
Following sources were used: A number of study and research work has been done in this area of interest by post graduate and PHD in India and abroad in countries like , Thailand , North Korea , Pakistan and Malaysia. The article and the research work gave a complete understanding and insight into factors which affect the customer satisfaction and loyalty and how these could be corroborated with the study.
The literature review mentions the research work identified and studied to finally give a complete shape to this study. The secondary research has also identified some gaps like affect of eletronic service quality E S Qual was never found out by any of the studies. Also devising of various marketing strategies with respect to factors identified to be successful with other factors identified as having low affect was not done in any of the studies.
The respondents were four types ,ie, Students Under graduates, graduates and post graduates , Executives of various corporate in Banglaore including Defence executives Defence officers , Housewives and Businessmen mentioned as Business person.
The questionnaire was designed on likely scale with scores varying from 1 Strongly disagree to 5 Strongly agree. It had a total of 62 questions , 58 likert scale questions and 4 'answer in your own language type' excluding the questions to capture demographic and profile details. The second part was designed on likert scale and contained questions within the predetermined factors.
There were also four questions of answer in your own words. The factors were as given below: They also keep their customer informed of the time of rendering the services and customers feel they are dependable. Responsiveness This factor had questions related to promptness in delivering services , their readiness to provide services including their willingness.
Assurance The factor evaluates whether the service provider's employees instill confidence in customers and make the customers feel safe in their transactions. If the behavior of current service provider employees is consistently courteous and if the employees have the knowledge required to understand and respond to the customer questions appropriately, then the customer may have the feeling of assurance.
Empathy Empathy relates to the compassion of current service provider towards the customers and is related to the individual attention customers feel to have received.
Employees of the respondents current service provider must deal with customers in a caring fashion, keeping in mind the best interest of the customers. Employees of your current service provider must understand the needs of their customers and should be sympathetic towards them.
Empathy is a direct measurement of the same. Tangibles Whether the service provider uses modern equipment, and provides visually appealing store facilities, marquee and sign boards etc shows how the physical and tangible aspects of the business and service providing adds to the service quality. The service provider's Employees must have a neat appearance bringing a professional approach.
It also evaluates the manner and intensity with which the other aspects associated with the services like employees behavior, promptness in redressal of queries are appealing and satisfying. Whether the Service provider's store has convenient business hours or not also is a factor associated with tangibles.
These factor are quantifiable and evidently perceptible by the customer and have a major bearing on the customer satisfaction level. Other additional factors have also been tested time and again in various studies conducted of similar nature. These factors are explained below: Whether the services provided by the current service provider and charged at reasonable price or not, implementing a fair and transparent pricing structure is the factor to be determined and arrived at.
This helps in identifying whether the service provider has honest pricing structure with no hidden cost, and the customer is getting full talk time ie what he has been paying for. Also it evaluates whether the customer is able to get variety of price schedules different charge denominations and is able to chose for his specific requirements. This feature has been part of the pre paid services. Customer Perceived Network Qualtiy Another construct is the mention of ability of service operator to provide sufficient geographical coverage with desired quality of network coverage.
The clarity and undisturbed voice quality achieved during the call session with fast and undisturbed network connectivity are considered as the measures. The degree of premature call termination or call dropping, and service availability at peak network time are considered. Also, the number of attempts required to make the call, countrywide coverage with own or third party tie ups, while roaming has been considered.
Yet another factor indicative of the network quality as perceived by the customer is easy internet connectivity and wide internet coverage. Value Added Services Whether the customer is receiving a range of values added services at reasonable rates and the convenience with which a customer can decide and get the services enabled or disabled is measured as an additional factor contributing to the customer satisfaction level This is a definite indicative factor of quality of services provided by the service providers.
Whether the service provider puts the customer at convenience for all aspects like attending to queries, billing, providing an updated and correct as well as timely information is another important aspect.
These factors related to Service Quality by Parasuraman et al. The factors represent electronic service quality delivered by the website on which the consumer shops, as per the Handbook of Marketing scales. Electronic service quality E-S Qual is defined broadly to encompass all phases of a customer's interaction with a website - the extent to which a website facilitates efficient and effective shopping or service experience.
Website The service providers have a net presence and it has facilitated the life of a mobile service customer. Whether the website of service provider makes it easy to navigate around and find what the customer needs, whether it enables easy online payment of bills are the considered issues.
Whether the information at the website is well organized and provides simplicity of use ensuring the 24x7 availability of the site are the factors looked for. An equally important issue is the delay in response and loading and running time. Privacy For the website users, the secure and protect transactions are required, especially when the user if making online payments for services.
Also the issue considered is if the website secures sharing of the query information with other sites. Feeling of Satisfaction The customer satisfaction is a measure of the feeling the customer has about the services and the service provider.
It is evaluated if the customer felt extremely happy with the service provider with current service provider meeting all pre purchase expectations. The overall satisfaction level with service provider was also evaluated. Whether the current service provider provided the customer everything promised at the time of engagement of services was also considered. Customer Loyalty Whether the customer wants to continue with the service provider is the aim of finding this response. The loyalty has also been checked on the factor if the customer is keen to avail more connections and services with the same service provider or in a situation of a competitor offering a cheaper connection.
If the customer has ever switched to other service provider then depending on the response, it was asked to be specific about the period and reasons, so as to find out the migration of the customer base amongst the service providers. The factors which would be crucial in coming back to the previous service provider gave an insight in the factors governing customer loyalty.
No problems were observed in the pilot study. The respondents who participated in the pilot study were not part of sample used fro main study. The respondents in many cases, chose not to disclose their preferences and experiences. The questionnaire was collected and only 5 of them needed an additional explanation to handle the unanswered questions, filling it completely.
The complete period to distribute and collect the questionnaire back was about 12 days. After feeding the same in microsoft excel , it was further codified and ported to SPSS Statistical package for the social sciences package for analysis. SPSS 16 for windows was used to carry out the necessary and required analysis. Factors analysis was carried out by computing means of each factor, a detailed factor analysis was not required since the questions were designed as per the approved and tested factors.
Hence , factors were not required to be derived using factor analysis. Also important statistical tools like computing and checking bivariate correlation, anova and regression were carried out to check the affect of factors ,which were independent variables on the dependent variables of Customer satisfaction and customer loyalty. The regression model used is given below: Also means for demographic preferences.
Also bearing of satisfaction on loyalty was tested empirically using regression. Correlation between Customer Satisfaction and Customer Loyalty was also seen. Hypotheses testing was also done using regression. This study however could be easily extended to find out important factors responsible for customer satisfaction and loyalty for individual service providers.
The study also would have resulted in finding factors which were not responsible for customer satisfaction and loyalty and where the service provider lacks.
This would have helped mobile service providers to devise strategies in heir offer to make satisfied customers leading to loyalty. Also this would have given insight on the factors which are lacking and needs improvement. Data analysis and Results 4. The profile of the respondents is given below in table 1: Mobile Connection type Frequency Percent Postpaid 34 Mobile Connection Type 4.
In females, only 14 had postpaid connections with 40 prepaid users. So altogether there were 34 postpaid connections and 69 prepaid connections among respondents. Please refer tables 1 and 2. Refer table 3 below: Age Groups of Respondents 4. Service Provider Frequency 4. Please refer the table 5 below. Please see table 6 below: Please see the table 9 below: Age Group in years vrs Occupation Age groups of Respondents student Exexutive Housewife Businessmen Total yrs 7 8 15 0 30 yrs 5 10 5 1 21 yrs 14 9 3 10 36 yrs - 7 - 7 14 yrs - - - 2 2 Total 26 34 23 20 The reasons for changing over to new subscriber was poor connectivity , poor services and costly call rates or plan of their previous mobile service provider.
Data Analysis The mean of means of the likert scales scores for all the independent 12 factors were computed which are given in the next page in table The mean scores of independent factors of all users combined are given in descending order and the result shows that the respondents give more weightage to factors like Website , Convenience , Customer Perceived Network Quality and information and responsiveness mean. This means that the website has emerged as a most important factor due to proliferation of internet.
All activities are now being done on website like billing , recharging, querying and complaint resolving. Convenience of usage, recharging for prepaid , network connectivity and timely information updates with immediate response to complaints are also important. Overall Mean of Factors. Factors N Mean Std. Deviation Website mean 3. Deviation Factors Mean Std.
Mean Score by Mobile Connection Type The mean scores of factors in respect of postpaid and prepaid users were computed to find out that the factors of Website , Information and Communication and Privacy were the most preferential factors for postpaid to be satisfied with the service provider.
The prepaid users gave more preference to Website , Convenience and Customer Perceived Network Quality in the order of priority. Since prepaid users 69 for twice in numbers to post paid users 34 , the overall preferences to factors of prepaid users are in line with overall factors preferences.
For housewives factors of website, Convenience , and privacy were important where as businessmen considered Customer Perceived Network Quality CPNQ , Tangibles and Website to be more important factors. Please see the table 13 below: Website webmean was the most important factor for both male and female however , males like Customer Perceived Network Quality CPNQ , Tangibles as other important factors ,however, females indicated Convenience and Privacy as important for them after website.
Qualification Profile Wise Preferences The respondents who were below under graduates diploma holders or ITI certification preferred website , privacy and pricing structure factors ; however; under graduates indicated website, CPNQ Customer Perceived Network Quality and privacy as there preferences in the order of priority. For post graduates Convenience, Website and tangibles to be important.
We see that website is the factor getting maximum score for below graduates and under graduates and second highest scores by post graduates. It emerges as the most important factor in this internet world as preferred by the respondents. Please see the table 15 in the next page.
The factors preferred by respondents in different Age Groups profiles are given above in the table Age group Wise Preferences. Respondents with monthly expenditure in the range of Rs gave preference to Customer Perceived Network Quality CPNQ , Website and Value added Services whereas for those with monthly expenditure more than Rs preferred Website, Assurance and Empathy factors for being satisfied by the mobile services.
Please see the table 18 below: Please see the tables 19 and 20 given below: Error of the Estimate 1. Constant , Empmean b. Error Beta 1 Constant 1. Mean Customer Satisfaction 4. The regression analysis shows that the customer satisfaction is dependent on the three independent variables ,ie, empathy , customer perceived network quality, website quality.
We can write the regression equation as follows: Also R2 value of 0. The sig values P value for all these factors are less than 0. Please see the tables 21 and 22 below: Constant , CPNQmean b. The R2 value of 0. Also Sig P values are less than 0. When customer satisfaction was taken as one of the independent variables for computing regression for customer loyalty the equation was computed as shown below in the tables 23 and Constant , Customer Satisfaction b.
Error Beta 1 Constant. Customer Loyalty with customer satisfaction as one of the independent variables 4. When customer satisfaction was taken as one of the independent variables , it was seen that it has maximum bearing on customer loyalty. The regression equation model can be written as given below: R2 values of 0. Correlation between Customer satisfaction and Customer loyalty The data being non parametric a spearmans correlation was computed to see the affect or correlation between the two factors.
Please see the table 25 below: N Correlation is significant at the 0. Hence , it can be interpreted that the customer satisfaction has a very significant impact on the customer loyalty. To make a customer loyal , he has to be satisfied with the mobile service provider first. Please see the scatter plot in the next page: Out of the customers whose questionnaires were accepted, 18 had defected with a churn percentage of The high churn percentage of respondents tells that the service quality of service providers are not very good and there is scope for further improvement.
With the table 26 shown in the next page gives the reasons for defection including offers which will bring them back to their previous mobile service providers: Reasons for Defection No. Hence to avoid defections and to reduce churning rates the service providers should ensure good quality coverage and network connectivity.
This is also clearly reflected and corroborated by the factor customer perceived network quality as one of the very important factors in satisfying customers and making them loyal. Also call rates have to cheaper and competitive and services. It is the second most important factor. Hence we reject the Null hypotheses and take the Alternate Hypotheses.
introduction to customer satisfaction Whether the buyer is satisfied after purchase depend on the offers performance in relation to the buyer expectation. In general satisfaction is a person's feelings of pleasure or disappointment resulting from comparing a products perceived performance relation /5(7).
Introduction To Customer Satisfaction And Loyalty. Chapter 1: Introduction Introduction to Customer Satisfaction and Loyalty Mobile service is one of the growing sectors in India. With economy opening up in this sector, competition has increased manifold. The entry of private companies promoted the use of cellular phones in the country.
CUSTOMER SATISFACTION TOWARDS SUV’SMAHINDRA & MAHINDRA 1 INTRODUCTION Customer satisfaction: Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is the overall essence of the impression about the supplier by the customers. This impression which a customer makes regarding supplier is the sum total of all the process he goes through, right from communicating supplier before doing any marketing to post delivery options and services and managing queries or complaints post delivery.
Customer satisfaction is an abstract concept that basically measures the degree to which the products or services of a business meet consumers' expectations. Factors that can affect consumer. Concepts of Customer Services and Customer Satisfaction: Introduction Posted on July 6, by John Dudovskiy Johnson and Clark () define service concept as a shared understanding of the service nature provided and received.