Emirates Telecommunication Corporation - Research Paper Example

? Table of Contents I. Synopsis of the Company 03 – 04 II. Research Proposal 04 – 04 Purpose of the Study 04 – 05 A. Introduction to Satisfaction 05 – 06 III. Literature Review A. Defining Customer Satisfaction 06 – 08 B. Importance of Customer Satisfaction 08 – 09 C. Factors Affecting Customer Satisfaction 1. Price Fairness and Customer Satisfaction 09 – 10 2. Service Quality and Customer Satisfaction 10 – 11 IV. Theoretical Framework: Independent Variables 1. Price Fairness 11 – 11 2. Service Quality 11 – 11 Dependent Variable 1. Customer Satisfaction 11 – 12 V. Hypotheses 12 – 12 VI. Analysis of the Variable 12 – 12 VII. Research Methodology 14 – 14 A. Population/Sample Size/Data Collection 14 – 14 1. Population 14 – 14 2. Sample Size/Participants 14 – 15 3. Data Collection Method 15 – 15 4. Data Analysis 15 – 15 VIII. Limitations of the Study 15 – 16 IX. Resources 16 – 16 Proposal for a Research Paper on Etisalat, UAE I. Synopsis of the Company: Emirates Telecommunication Corporation (Etisalat) is the leading telecommunications corporation in the Middle East, with its headquarters in Abu Dhabi, UAE, and also the “largest operator the Middle East and Africa regions” (Company Profile par.2). The company caters to consumers, telecommunication companies, internet service providers, content providers as well as mobile operators and boasts of a market value of over “AED 80 billion (US$ 20 billion)” and their annual revenues account for “AED 30 billion (US$ 8 billion)” (par.2). The company is involved in operations in 18 countries spread across Asian, African and Middle East regions with a coverage of over “140 million subscribers” (par.3). The company has received several accolades at national as well as international levels in recognition of their excellent customer service and support. Etisalat aligns innovative technology in their products and services to derive maximum customer service satisfaction and always strives to provide their consumers as well as the other stakeholders with updated technological support. The company, keeping its promise to customers has launched nano-SIM cards in the UAE market to support iPhone-5 compatibility, with a plan for offering “new equipment to customers allowing them to choose from a wide range” (Etisalat Launches the nano-SIM cards in UAE markets Starting 1st October 2012 par.3). Thus Etisalat has a proper appreciation of the customers’ needs and wants and provide them with up to date technology and multiple to choose from tailor made options that fit the needs of each segment. Overall, the company has been successful in understanding the customers’ needs and promptly responding to them in terms of innovative products that match their requirements and facilitating prompt after sales services. Thus, the company has sustained its track record of apt customer support and thereby ensured their full satisfaction. The company’s Annual Report for the year ending 31-12-2010 indicates that they have had to confront several challenges due to the radical shifts in the global business scenario but it appears that Etisalat has taken the situation in good stride and the changes “prepared (them) to operate in a new environment under diverse circumstances” rather than create blockades in their path to progress (Engaging Business People 3). Thus, it transpires that through effective corporate management strategies, the company has acquired the required level of performance efficiency that enables them to not only sustain but also surpass competition. II. Research Proposal Purpose of the Study: Founded during 1976, Etisalat has pursued a distinct strategy of focusing on long term objectives as can be evidenced from their establishing the Etisalat University College in 1989 to “create a talent pool of engineers to drive its future growth” (History – Milestones). The intervening span of time from 1991-1999 has seen the company tapping the full potential of emerging technologies such as wireless telecommunication, GSM and the internet. Their tactic of building up talent from own resources has again been evidenced from the establishment of Etisalat Academy in 2000 for providing “professional and technical training” (History – Milestones). From then on, the company has registered steadfast growth in their customer base and further expanded to the other regions of Middle East as well as to Asia and Africa. The consistent progress that Etisalat has made over the span of three decades is a subject matter of interest to all corporate entities. Many factors that have been aligned into the fabric of the company’s corporate strategy seem to have contributed to their sustained success. These crucial elements have also enabled them to attain both their short and long term objectives, thus facilitating their evolution as a leader in telecommunication in 18 countries. The enviable growth of Etisalat and exploring the factors that distinguish them from other companies will be of interest to both the business and the academic communities. Therefore, the scope of this research will include an exploration of various factors that have facilitated the realization of short and long objectives of the investors in the company. Thus, the results and findings of the study will be able to provide substantial information relating to corporate management, best strategies and practices. Further, it will be of specific interest to other companies to receive a full appreciation of how their corporate strategy of investing in education has translated into fruitful outcomes in terms ready availability of a talent pool and how this has impacted their overall operational performance and efficiency in achieving customer satisfaction. This study, in order to realize its set objectives will, however, confine to developing a correlational link between customer satisfaction and how various marketing variables influence the same. In the context of this study, the determining market variables such as price fairness and service quality/customer service will be considered as these aspects exercise a major influence on customer satisfaction in industries. A. Introduction to Customer Satisfaction: Telecommunications is a major service industry, which will usually comprise of a wide variety of individual customers as well as business clients. The service is basically dependent on the technology and the quality and skill level of the technicians, who can deliver service to the customers in conformity to the mission and vision of the company. Since the entire future of such a service depends on customer satisfaction, Etisalat has to focus on providing full support to the customers through an efficient network of technicians and customer service executives. From the track record of the company over a period of three decades, it can be deduced that they have understood this concept quite clearly and have been able to deploy appropriate strategies to derive customer satisfaction in all areas of their products and services. One of the major factors that account for their ability to stand up to the customers’ needs and expectations derive from the fact that they have focused on investing on education for creating their own talent pool. Telecommunication, being fully dependent on technology, it is imperative that service providers in this area have skilled human resources to meet the exigencies of services. Etisalat have had a clear understanding of their long term objectives and, therefore, keeping in view of the customer satisfaction in the future they have established the college and academy to educate and train adequate and appropriate talent from their own resources. Thus, the company has been able to provide its customers with excellent service that have enabled them to sustain a high level of customer satisfaction. III. Literature Review: A. Defining Customer Satisfaction: Profit generation in a business occurs as a direct result of customer satisfaction and if the company sustains the level of customer satisfaction, they can aspire to increase their customer base manifold and thus increase their profitability. A study by Joan L Giese and Joseph E Cote of Washington State University suggests that consumer satisfaction essentially comprises three components such as a “summary affective response of varying intensity,” a “time-specific point of determination and limited duration,” which need to be directed toward “focal aspects of product acquisition and/or consumption” (Giese & Cote 15). On the other hand, a research study titled, “Customer Satisfaction: Improving Quality and Access to Services and Supports in Vulnerable Neighborhoods: What the Research Tells Us,” finds that companies that have been successful in maintaining customer satisfaction have achieved this by attending to “every detail to ensure that the customer’s physical, social and psychological experience is pleasant” (13). The study further contends that in order for service providers to attain customer satisfaction it is necessary to facilitate them “personalized service” (13). From another perspective, customer satisfaction relies completely on how the employees of a company respond to the needs of its customers. So the management of the organization has to make sure that employees are always motivated and satisfied so that they will work hard to the attainment of corporate goals. The research study by Julie M Hays and Arthur V Hill finds that a “learning organization whose employees have a clear vision of the importance of service quality to the organization and are motivated to provide that quality will achieve superior service quality” and thereby derive customer satisfaction for the company (Hays & Hill 1). Grigoroudis & Siksos (2010), however, find that maximizing the profit is the ultimate objective of all marketing strategies and, therefore, deriving customer satisfaction is very important as the former is dependent on the latter. In the context of Etisalat it appears that they have attained customer satisfaction levels of a sustaining nature by way of providing prompt service that makes it a personalized experience for the users of their services and by rendering them continued support. This strategy seem to continue as a tradition in the company because most of the employees are sourced from their own talent pool and they understand the vision and mission of the company quite well and remain motivated. B. Importance of Customer Satisfaction: Recognizing the significance of customer satisfaction and constantly striving for its attainment is an essential factor in determining the success of corporate entities. Research studies suggest that having the required insight into the company’s objectives and deploying the “right instrument for the right needs of the organization” will enable the company to deliver a high level of service quality (European Primer on Customer Satisfaction Management 43). From the way Etisalat has anticipated their customer service needs and instituted a process of facilitating their own talent pool, it can be construed that this company has appreciated customer service needs for the long term and responded to it adequately, which accounts for their success in the present day. Customer satisfaction is the most significant component for a successful the marketing of a product or service and research studies point to the importance of this aspect in the long term profitability of organizations. Reichheld & Sasser (1990), contend that customer loyalty can be derived as a consequence of customer satisfaction and satisfied customers will further enhance the reputation of the company through word of mouth propaganda. This view has further been asserted by Ranaweera & Prabhu (2003), who argue that when a firm provides customer satisfaction of a higher level, its clientele will increase and this can also generate a new customer base based on the feedback from existing customers. Thus, it transpires that in order for business entities to survive competition and retain a loyal customer base, it must focus its activities for the improvement of service quality for the attainment of customer satisfaction. As can be deciphered from the performance of Etisalat, they have recognized the significance of customer satisfaction in enhancing their profitability and modeled their services accordingly, which is one of the most significant aspects of their business strategy. C. Factors Affecting Customer Satisfaction: 1. Price Fairness and Customer Satisfaction: Price can be perceived as the monetary value a consumer has to pay and that the business fixes for a product or service (Grigoroudis & Siskos 2010). On the other hand, Friedman (2009) defines price as the sum a buyer exchages to the seller for the purported values of a product or service. Thus, when a customers find that a product or service meets their perceived value, they will be satisfied of the product. On the other hand, if the customers feel that the product or service does not return the value they have paid for, they become unsatisfied. Thus, companies need to charge a fair and reasonable price for their products or services, if they want to attain customer satisfaction. Hirshleifer (2010) finds that various distributive considerations such as prices at distribution centers, as the pricing system involves different prices at different outlets, can influence the price. This is especially valid in the case of Etisalat as their stores in different locations provide service at different costs. In a sense this benefical to the company as the prices are not centrally fixed and prices can be varied according to the market conditions. Besides, pricing factor is also dependant on methods of payment, payment plans, costs of installation, service changes being levied and cost of replacement of equipment. In these circumstances price control, after evaluating the pulse of the market, is crucial as the customer can evaluate whether the prices being offered by the company are fair or not. Thus, customers perception about whether the price is reasonable or not, or whether the product has the benefits at par with the cost being paid, will affect the company’s ability to market a product or service. When one considers the case of Etisalat, it becomes apparent that their market monopoly should have been lost when Du, another telecommunication service provider entered the market, with attractive pricing strategy. Thus, companies will not be able to exploit customer susceptibility in the long run and will have to always make sure that the price they offer is reasonable enough to derive the satisfaction of the consumers and to sustain their trust and loyalty. However, in the case of Etisalat, the reverse seems to be the case as their prices, even during the time they enjoyed market monopoly has been fair and thus they have been enjoying sustainable customer loyalty. Thus it becomes evident that if companies aim at long term objectives and attempt to increase sales volumes by fair pricing strategy, they can achieve customer satisfaction which will carry them forth on a track of profitablity even if there is stiff competition. 2. Service Quality and Customer Satisfaction: Service quality is an extremely difficult concept to define in terms of certain specific parameters as it encompasses a wide array of elements, dependent on different circumstances and customers range widely in their attributes and expectations. However, in general terms a common definition can be found in the context of a difference in the expectation of the quality of a product before a customer buys it and his or her perception about the attainment of the expectation of the quality after the product or service is acquired. Thus, Kunst & Lemmink (2007) postulate the idea that customers can become dissatisfied when they feel that the product or service that they have bought does not meet their expectations once they acquired it. Thus, if a company achieve a realistic understanding of the expectation of quality by their consumers and modulate the product according those expectations, which incidentally is the image the company breeds on the customers’ mind, they can definitely achieve customer satisfaction when the customer actually uses the product or service. They also have to streamline their distribution channels and adopt intervention measures to ensure the seamless flow of supply and services. Basically, what constitutes quality is the consumers’ perception, irrespective whether the product actually possesses quality or not. Therefore, a company cannot decide the quality without knowing the aspirations of the customers. Thus, companies have to evolve appropriate strategies, whereby they can ensure that the product or service they provide the customer possesses the expected quality and under no circumstances they should compromise the quality, as it has a direct bearing on the retention of customers’ loyalty (Stebbing, 2010). Besides, companies must also align their product design and distribution channels to conform to the expectation of the customers in order to sustain their satisfaction. Etisalat, in this context has emerged as an example of proper response to customer’s needs through providing services in a variety of regions, uniform pricing strategy and efficient services as compared to competitors. Their efficiency in service quality mainly derives the availability of adequate and motivated talent, which they pool from their own resources. Technology driven products and services have to mainly rely on human talent and the recognition of this factor and the implementation of appropriate strategies have been the most significant factor in the success of Etisalat in attaining the service quality that consumers expect. Independent Variables: Price Fairness Price fairness constitutes an independent variable, which needs to consider the point of view of the consumers. The users must feel that the product and services that Etisalat offers are within a fair range of price that conforms to the quality they provide. Service Quality The aspect of service quality is another independent variable that measures to what extent the quality of services being provided by Etisalat meets the expectations of the consumers. Dependant Variable: Customer Satisfaction Customer satisfaction is recognized as the dependent variable as the primary objective of Etisalat is to attain constant increase in this variable. Hypotheses: The research will attempt that the relationship between the independent variables of price fairness and service quality and the dependent variable of customer satisfaction, based on the analysis of the company’s performance and sustained success, is as follows: H1: The perception of the customer that the price at which the product or service is being offered is fair will increase the number of satisfied customers. H2: When the quality of service being provided meets or exceeds the expectation of the customer the number of satisfied customers also increases. Analysis of the variables According to (Fowler, 2008), a study variable is a construct that a researcher uses to substantiate the hypotheses based on various aspects of the selected study topic, with the primary factor of having more than one value. The author further contends that in order to realize the objectives of the study, the researcher will also have to explore the set of variables that are involved in the study in hand. The researcher will also have to analyze the variables on both premises such as independent and dependent so that the baseline purpose of the study can be achieved. Research Methodology: The scope of the research is to analyze various strategies of Etisalat that have enabled them to sustain their business in a highly successful manner and to derive benefits from the results for both the business and academic communities. As such, it envisages both primary and secondary data collection and analysis so that the best outcomes are gained. The research will comprise both qualitative as well as quantitative data collection. As such a mixed methodology approach will be best for a research of this magnitude because in order to derive relevant information the researcher will have to prepare and distribute questionnaires to the management as well as consumers of the company. The questionnaires will be a combination of both open ended as well as close ended question as qualitative as well as quantitative data are to be obtained. The researcher also proposes to conduct an exhaustive review of the available literature on the company and relevant managerial philosophies so as to glean the maximum information on the topic to benefit the stakeholders. A. Population, Sample Size/Participants and Data Collection: 1. Population: For the purpose of evaluating the price fairness and service quality aspects, the study will include the general public who are subscribers to the services of Etisalat, from within the UAE. Etisalat’s Annual Report, 2010 places their current subscription over 5 million in the UAE in the Emirates and they employ over 10,000 individuals. 2. Sample Size/Participants: Calculations based on Raosoft Sample Size Calculator suggest a minimum sample size of 385 with a 5 million population as the base and providing for 5% margin for error and 95% confidence levels. Therefore, the study will consider about 400 subscribers of Etisalat in UAE to be included for the survey. 3. Data Collection Method: The main information to be derived from the sample population relates to their perception of the price fairness and service quality of Etisalat telecommunications. Most of the subscribers of Etisalat also use internet services. Thus, an online survey would be the best method in this research to elicit data from the sample population, considering the elements of speed and cost effectiveness that it will facilitate. Therefore, the survey questions will be sent to the intended audience of 400 subscribers, with a times span of a fortnight to send their responses. Most of the questions will be close ended where they will have the option to choose between positive and negative answers. However, since the nature of the research also leaves scope for qualitative data, a few open ended questions will also be included. The participants will also be assured of their confidentiality by including a confidentiality statement with an undertaking that the information they divulge will be used exclusively for the purpose of this study and it will not be shared with any third parties. Data Analysis: The data obtained through the investigation will be analyzed, using appropriate statistical tools such regression analysis, in order to arrive at the findings. Conclusions and Recommendations: Based on the analysis of the data collected, through literature review and answers to the interview questions/questionnaires, the researcher will draw the findings and opinions and also provide appropriate conclusions and recommendations. Limitations of the Study: There are no major limitations to the study as the investigation, mainly is to be conducted among a population that is conversant with online surveys and since the study relates to a survey being used by them they would be willing to share their opinion about the service. Information about the company and their services are also readily available through online and other sources. Thus, the researcher does not anticipate any major problem in accessing and analyzing information relating to the study. Resources: The study will rely primarily on online sources and the internet for obtaining information and hence, it does not envisage any major expenditure. The computer, software, stationery etc for the study will be used from the researcher’s own resources. The researcher will also use the college library and public libraries for accessing relevant information. Conclusion: The research study, thus, will investigate the practices in Etisalat that have contributed to their sustained success in a span of over three decades, by analyzing the independent variables such price fairness and quality and dependent variable such as customer satisfaction. The results of the study are expected to provide relevant information both to academic and business communities. The study’s findings will also contribute to the existing knowledge on the topic. Besides, this study will also encourage further studies on the topic, ruling out the limitations recorded herein. Works Cited Company Profile. Website of Etisalat Telecommunications. (2012). Web. 08 December 2012 Customer Satisfaction: Improving Quality and Access to Services and Supports in Vulnerable Neighborhoods: What the Research Tells Us. 2007. Center for the Study of Social Policy. Web. 08 December 2012. Etisalat Launches the nano-SIM cards in UAE markets Starting 1st October 2012. (2012). Web. 08 December 2012. European Primer on Customer Satisfaction Management. 2008. European Public Administration Network. Web. 08 December 2012. Fowler, F. J. (2008). Survey Research Methods. Newbury Park: Sage Publication. Friedman, M. (2009). Price Theory. Chicago: Aldine Publishing Company. Giese, Joan L & Cote, Joseph A. Defining Consumer Satisfaction. 2002. Academy of Marketing Science Review, Vol. 2000/1. Web. 08 December 2012. Grigoroudis, E., & Siskos, Y. (2010). Customer Satisfaction Evaluation. New York: Springer US. Hays, Julie M & Hill, Arthur V. A Preliminary Investigation of the Relationships between Employee Motivation/Vision, Servicing, Learning and Perceived Service Quality. 2000. Journal of Operations Management. Vol.250. pp. 1-15. Print. Hirshleifer, J. (2010). Price theory and Applications. New Jersey: Prentice Hall. History – Milestones. Website of Etisalat Telecommunications. (2012). Web. 08 December 2012 Kunst, P., & Lemmink, J. (2007). Managing service Quality. London: J.G.M. Hendrikx Innovation Trading. Ranaweera, C., & Prabhu, J. (2003). On the Relative Importance of Customer Satisfaction and Trust as Determinants. Journal of Targeting, Measurement and Analysis for Marketing, 12(1), 82. Reichheld, F. F., & Sasser, W. E. (1990). Zero Defections: Quality Comes to Services. Harvard Revuew, 105-11. Stebbing, L. (2010). Quality Management in Service Industry. New York: Ellis Horwood.   Read More