The Impact of 4G LTE Technology on Customer Satisfaction in Metro Atlanta - Research Paper Example

The Impact of 4G LTE Technology on customer satisfaction in Metro Atlanta Contents Chapter 4 2 Works Cited 11 Chapter 4 In the era of ‘consumerism’, most of the companies across the world are actively seeking strategic ways through which they can easily win over the loyalty of the consumers. This research paper analyzes the validity of huge investments, made by giant cellular companies (AT&T, Verizon, Sprint and T-Mobile), in 4G LTE (Long Term Evolution) technology. In the context of the analysis, the researcher tries to estimate the factors determining customer satisfaction in the mobile phone industry.

For the purpose of analysis, the researcher had conducted a closed-ended questionnaire survey (18 questions) against a random sample of 50 individuals, living around the Metro Atlanta Area (Newman and Benz 155). These individuals are small business operators, students and corporate employees (Mankiw and Taylor 134). The analysis results are as follows: Figure 1: Area of Habitat (Source: “Report Analysis”) The initial question, as stated in the above figure, was placed to 50 individuals.

Out the total, 45 responded positively and 5 claimed that they did not live near the Metro Atlanta Area. Majority of the individuals lived near the most popular Metro Area in U.S. Thus, it can be assumed that these are the customers, who are potential users of wireless cellular phones (with 4G technology). Figure 2: Sample Age Distribution (Source: “Report Analysis”) When the question regarding ages of the individuals was placed, it was found that about 31 of them were middle-aged, belonging to the age group of 30 to 49 years.

The second maximum was the group of individuals falling within the age group of 25 to 29 years. This shows that majority of the sample observations comprises individuals who are likely to be employed and thus, are potential demand creators of technological gadgets with 4G LTE technology. Moreover, the Standard Deviation (S.D.) for ages of the sample individuals was only 8.4 (this proves that all are likely to possess the purchasing power of creating a demand for an expensive gadget) (Hirsch 45).

Figure 3: Gender Distribution (Source: “Report Analysis”) As stated in the above pie chart, all the 50 individuals were women. Figure 4: Smart Phone Use (Source: “Report Analysis”) It was noted that all the 50 individuals claimed to possess Smartphones. Figure 5: Mobile Capability for using LTE Technology (Source: “Report Analysis”) As stated in the above graph it was found that the Smartphone’s of all the individuals were capable to adopt the 4 G technologies in their mobiles.

Figure 6: Smartphone Lifespan (Source: “Report Analysis”) All the individuals had claimed that their Smartphones were only one to two years old. This proves that all of them are aware of the usage and value of 4G technologies in their mobiles. Figure 7: Cellular Network (Source: “Report Analysis”) All the 50 individuals commented that their cellular networks were of AT&T Company. Figure 8: Wireless Plan (Source: “Report Analysis”) As stated in the above pie diagram, all the individuals in the sample were found to use wireless plans that included a special data feature (internet accessible package).

On the basis of the analysis till now, it can be stated that the popularity of using Smartphones has received a very high response from the sample. So, it is obvious that these individuals, who have recently purchased Smartphones, have the access to 4G network and internet in their wireless cellulars. All of them are customers of the company of AT&T. Figure 9: Mobile Network Satisfaction (Source: “Report Analysis”) Thus, when a question was raised at these individuals, regarding the quality of internet service provided by their mobile network (in this case, AT&T), it was noted that 66.

7 % were very satisfied and the remaining 33.3% claimed that the service was moderate (33.3%). This indicates that the company of AT&T still needs to make improvements in quality of internet service provided through its network (Tucker 194). Figure 10: Customer Service Contacts (Source: “Report Analysis”) It was found that, out of all the individuals included in the sample, 50% of them claimed that they contacted customer service, if they were unsatisfied with the quality of services. On the other hand, the rest 50% claimed to not register their complaints to customer service on an event of poor service of the network (Fama 288-307).

When the individuals were asked regarding the customer service quality, about 91.7% (33 individuals) of them claimed that their mobile network related problems were always solved by the customer service. However, about 11.1% (4) of the individuals (out of the 36 individuals responded to the question) claimed that their mobile-related problems were not resolved, even after registering complaints. Figure 11: Cellular Carrier (Source: “Report Analysis”) Out of all the individuals, about 38% of them claimed that they would continue to use their existing cellular carrier in future.

On the other hand, about 10% of the individuals were unaware or confused regarding this decision. This proves that if the majority of the individuals are assumed to use the network of AT&T, then the company can afford to lose almost 20% share of customer demand in future, if it does not improve the required business areas. Nonetheless, it should be noted that customers were not able to provide a reason for such a response. Therefore, from the above analysis, it can be summarized that customers, living in modern urbanized locations, are primarily users of Smartphones with advanced features.

Among all the mobile network providers, AT&T is the most popular one. However, in terms of technological gadgets, the consumers’ satisfaction substantially depends on after-sales customer service quality. A large proportion of individuals are not satisfied with the modern 4G LTE connection because they face complexities in adapting and using such modern applications. Chapter 5 In the modern era, with the rise in the scope of commercial activities, the per capita income thresholds and living standards of individuals have significantly improved.

Even so, with the rise in aggregate disposable incomes and demand thresholds, the degree of competition among business firms has increased. At present, the different mobile phone companies like, AT&T, Verizon, Sprint and T-Mobile, in the market are subjected to cut-throat competition (Glisic 188). This is the sole reason for which these firms have augmented their investment levels in new technological innovations. It is true that such huge investments help companies to serve customers with enhanced quality products, thereby increasing their satisfaction levels.

However, it should also be noted that the nature of customer service, provided by the companies, is a primary driving force to manipulate the level of customer demand. It is, thus, expected that if the customer service team of a mobile phone company can successfully address to all the problems regarding customers’ mobile usage, then the company can actually enjoy the perks of making new innovations in business in the long run. The aggregate wireless telephone services provided by the company of A T&T have improved by only 1% from 2012 to 2013.

The company is lagging behind three of its market rivals (Sprint, Wireless Telephone Service and Verizon Wireless) by only 686 points out of 750 total points. It is, thus, expected that a few strategic measures can surely help the company in leading the industry. It should be noted that the company is among the leading providers of the latest 4G Technology. The organization can enjoy the true benefits of this investment, provided it tries to improve its after-sales customer service quality. This is considered as the primary determining factor of customer satisfaction in this research work (from the report analysis) (Woodford 202).

Works Cited Fama, Eugene. “Agency Problems and the Theory of the Firm.” Journal of Political Economy, 88.2, (1980): 288 – 307. Web.16 October 2013. Glisic, Savo G. Advanced Wireless Networks: 4G Technologies. New York City: John Wiley & Sons, 2006. Print. Hirsch, Arnold, R. Macroeconomics. Connecticut: Cengage Learning, 2008. Print. Mankiw, Gregory N. and Mark P. Taylor. Microeconomics. Connecticut: Cengage Learning EMEA, 2006. Print. Newman, Isadore and Carolyn R. Benz. Qualitative-Quantitative Research Methodology: Exploring the Interactive Continuum.

Illinois: SIU Press, 1998. Print. Tucker, Irvin. B. Macroeconomics for Today. Connecticut: Cengage Learning, 2010. Print. Woodford, Michael. Macroeconomics. New Jersey: Princeton University Press, 2003. Print.