Вы находитесь на странице: 1из 12

LITERATURE REVIEW

Literature Review

“Everyone knows what satisfaction is, until asked to give a definition. Then, it
seems, nobody knows.” (Richard L. Oliver)

Customer
satisfaction
amongst
subscribers
of

a
ny organization is the most important factor and is one of the most popular topics for
research. It is the result of the customer’s perception of how well their job provides
certain things that are viewed as important. Key factors influencing customer satisfaction
are more services under one price, problem free service, good communication, and good
management and, of course, Price.

Price and value added services are a major factor in


attaining
customer
satisfaction
amongst
subscribers

o
f mobile. Thus, there is a positive relationship between price level and value added
services with customer satisfaction. Customers perceive services in terms of the quality
of the service and how satisfied they are overall with their experiences.

These
customer-oriented
terms—quality

a
nd satisfaction—have been the focus of attention for executives and researchers alike
over the last decade or more. Companies today recognize that they can compete more
effectively by distinguishing themselves with respect to service quality and improved
customer satisfaction.

Although
they
have
certain
things
in

c
ommon, satisfaction is generally viewed as a broader concept, whereas service quality
assessment focuses specifically on dimensions of service. Based on this view, perceived
service quality is a component of customer satisfaction.

Customer Satisfaction has been always a core issue for all the organizations in
the world who means business in its literal terms. Many organizations have conducted
researches in this field keeping in view their purpose and the rationale. Some
organizations such as Nestle and Coke conducted their researches on customer
satisfaction of their product since the beginning, so that they can enhance in this field

accordingly.
Customer
satisfaction
to

s
ome organizations is a key to success; the reason here is to check the ability of their
product to satisfy as much customers as they can, so that they can be the market leaders
in their field. Many organizations followed the strategy of customer satisfaction and
became the living legends e.g. Coke, Nestle, Shell Petroleum, Nokia, Sony and the list
goes on and on. Every company mentioned here are an innovator and a market leader in
any one or two of their products.

Customer Expectations
Expectations
combine
customers’
experiences
with

a
product or service and information about it via media, advertising,

salespersons,
and
word-of-mouth
from

o
ther customers. Customer expectations influence the evaluation of quality

and
forecast
(from
customers’
pre-purchase
perspective) how well the product or service will perform
Customer Complaints
Customer
complaint
activity
is
measured
as
t
he percentage of respondents who reported a problem with the measured companies’
product or service within a specified time frame. Satisfaction has an inverse relationship
to customer complaints.

Customer Loyalty

Customer loyalty is measured through questions on the likelihood to purchase a


company’s products or services at various price points. Customer satisfaction has a
positive effect on loyalty, but the magnitude of that effect varies greatly across companies
and industries.

Customer Satisfaction Model


The Customer Satisfaction Model is a macro level
framework
that
links
the
2
extended
Ps
(people

a
nd performance), and reflects the impact of the traditional Ps (product, price, place,
promotion).

While conceptually simple, the framework captures the


essence of marketing
(a)

Generate customer satisfaction by meeting, or better yet exceeding,


customers' requirements and expectations, i.e. delivering superior relative perceived
value.

(b)
Amass satisfied (and profitable) customers into a
substantial share of the relevant served market.
(c)

Leverage the market share into high profitability via scale economies (i.e.
spreading fixed costs over a broad volume

base),
experience
effects
(i.e.
learning

c
urve efficiencies), and market clout (e.g. getting better deals from suppliers).

Determinants of Customer Satisfaction:


Customer satisfaction is influenced by specific product
or
service
features
and
by
perceptions
of

q
uality. Satisfaction is also influenced by customer’s emotional responses, their
attributions, and their perceptions of equity.

Product and Service Features:

Customer satisfaction with a product or service is influenced significantly by the


customer’s evaluation of product or service features. For a service such as mobile
communication, important features might include the package, line rent, call rates,
comfort and privacy, facilities offered, helpfulness and courtesy of staff, and so forth.

Consumer Emotions:
Customer’s emotions can also affect their perceptions of satisfaction with
products and services. These emotions can be stable, preexisting emotions—for example,
mood state or life satisfaction. Positive emotions such as happiness, pleasure, ecstasy and
a sense of warm-heartedness enhance

customer’s satisfaction. While, negative emotions such as sadness, sorrow, regret and
anger lead to diminished customer satisfaction.

Attributions for Service Success or Failure:

Attributions—the perceived causes of events—influence perceptions of


satisfaction as well. When they have been surprised by an outcome (the service is either
much better or much worse than expected), consumers tend to look for the reasons, and
their assessments of the reasons can influence their satisfaction. For example, if a
customer of a mobile service provider fails to receive calls as hoped for, he/she will likely
search for the causes—was it something with his/her phone set, was the services provided
were not good, or did circumstances simply not allowed his/her to use the service

properly—before
determining
his/her
level

o
f satisfaction or dissatisfaction with the mobile service company.

Perceptions of equity or Fairness:

Customer satisfaction is also influenced by perceptions of equity and fairness.


Customers ask themselves: Have I been treated fairly compared with other customers?
Did other customers get better treatment, better prices or better quality service? Did I pay
a fair price for the service? Was I treated well in exchange for what I paid and the effort I
expended? Concept of fairness is central to customer’s perceptions of satisfaction with
products and services.

Other Consumers, Family members, and Coworkers:

In addition to product and service features and one’s own individual feelings and
beliefs, consumer satisfaction is often influenced by other people. Views of family
members, peers and coworkers affect the decision of purchase of an individual.

Customer Satisfaction Research


Customer
satisfaction
research
gives
customers

t
he opportunity to communicate to a business their experiences, perceptions, and
preferences with its products or services. Customer satisfaction surveys reveal whether or
not a company is meeting and exceeding its established standards and customer
expectations.

Measuring Customer Service Improves Loyalty

Results of customer satisfaction research allows for course corrections in a


company’s operations, product, or service

to
meet
customers
needs.
Measuring

c
ustomer satisfaction enhances current customer loyalty and improves customer retention
rates. It demonstrates to customers that the
company
is
committed
to
meeting
their
needs

a
nd expectations. It also exhibits to employees that customer satisfaction is an important
philosophy and goal of their employer.

What Customer Satisfaction Surveys Reveal



Buyer behavior with own company and with competitors.

Attitudes and perceptions about a
business/product/service.

Likes and dislikes about a product/service.

Future intent to purchase.
Research Methodology

Customer satisfaction is an imprecise variable, which cannot be measured


through a rating scale. Hence it has to be operationally defined and then translated into
observable and measurable way. Research was aim to break abstract notions into

observable
characteristic
behavior
by
giving

i
t dimension and hence would be able to measure customer satisfaction by this for the
research.
Price is a measurable variable & can be easily measured. Value added services
are measured with the subscriber’s preferences like quality of network, more free service
offer etc.

Subjects

A field research was conducted without any manipulation in the study


environment (work environment) to gather least biased results. Sample size of 200
respondents was taken, representing most of the locations of Rawalpindi/Islamabad.

The subjects were different age groups and designations, both


male and female from Rwp/Isb.
Apparatus
Materials used for the research are as follows:-

Questionnaire (PAQ

Personal computer

Internet

Stationary
Questionnaire
was
used
to
gather
the
data.
The
questionnaire
was
carefully
designed.
The

quest
ionnaire contained 16 questions (As can be seen in the Appendix). All the questions were
close-ended. The questions asked were related to the respondent’s perception of service
in a particular mobile service. These were personally distributed

and some were personally administered. However, the majority were given to known
sources in each organization and collected at some later time. The procedure gives a
detail how the results were interpreted.

Procedure

Sample of 200 users is taken randomly by using Area sampling technique. I


divided Rawalpindi/Islamabad city into four

sections
(government
sectors,
private

s
ectors, educational sectors and general public) and collected 50 samples representing
each area included in a particular section. Various places were visited each region to get
the response.

The people were very co-operative which helped me a great deal in


conducting research. It was assured to the respondents

that
the
information
given
would
remain
confidential. The questionnaire ended with a thank you note.

Recommendations

Public relations should be improved. There is a wide range of market forces that come
into play therefore for both companies which have a cut throat competition should
concentrate more on sales and public relations

Network congestion and traffic problems are faced by both organizations. They should
try to over come these technological errors.

The management at Ufone should be more efficient and should be able to foresee the
consumer response and not make mistakes as they originally made.


Ufone should expand its network by increasing the sales
and service outlets.

Mobilink should hold on to its current consumer base by
advertising in all kinds of media.