Service Quality and Customer Satisfaction in a Telecom Company - Literature review Example

?Evaluating Service Quality and Satisfaction Introduction satisfaction is perceived as a basic marketing construct in all kinds of industries in the business field. In the past, it was not considered an important concept because businesses presumed that it was more important to acquire new consumers instead of using valuable capital to try and hold on to the ones that were already present. Since then, companies have began to appreciate the importance of catering to the needs of consumers; particularly those who appear to be satisfied with the services they receive as first time customers. Customer satisfaction is particularly important for service producing firms as the service becomes the actual products that is being marketed to the client(s). Does the company follow a strategy in terms of customers’ satisfaction and what are the expectations of the users? Telecommunication service providers contribute considerably to the development initiatives in both developing and developed nations. Owing to the fact that there is stiff competition between different telecommunication providers situated all over the world, the function of customer care has come to be regarded as being one of the factors that determines the level of success enjoyed by telecommunication companies. In addition, many clients of telecommunication providers have knowledge regarding what real quality service is and so their demands have increased. Telecommunication service providers all over the world provide different goods and services for clients in various markets. Business rivalry between different telecommunication firms ensures that there is the best possible customer satisfaction in the provision of the necessary goods and services. According to Yaacob (2010), to continuously supply the best quality service, telecommunication establishments have to look into the extents of customers’ expectations with regard to service quality in different markets. Such information allows telecommunication companies to then tactically plan on how to integrate service quality processes and objectives into the market. Service quality basically refers to the factors that drive customer expectations and define competence along the lines of quality dimensions. According to Yaacob (2010), there are ten factors that customers use to define or grade service quality in most industries. These are tangibles, reliability, communication, responsiveness, security, credibility, courtesy, competence, accessibility and understanding the needs of consumers. Wong, Kong, Liang and Chua (2009) have mentioned a scale that was formed by experts to measure service quality known as SERVQUAL. This is a broad instrument that has been widely used in assessing consumer preferences and satisfaction in past marketing studies. The greatest performance level in top quality service is usually determined by customer expectations. Service quality is deemed to be low when the firm’s performance is below expectation. The SERVQUAL structure is a common analytical instrument used to assess perceived service as well as customer service. Dependability refers to the servicing firm’s capacity to ensure that it meets all its commitments to consumers satisfactorily and on time (Wong, Kong, Liang and Chua 2009). Responsiveness is descriptive of the level to which consumers feel that their service provider is prepared to offer assistance whenever it is required. Assurance has to do with how customers are treated by the workers in the service provider company. It also deals with the service provider personnel’s ability to engender trust in the firm’s clientele. Empathy has to do with the care given to individual customers by the service provider; as well as the extent to which detailed consumer needs and inclinations can be understood and expressed. Tangibility has to do with the evidence of employees, facilities, and communication resources used by the corporation while supplying customers with services. According to Quinn (2012), the idea of meeting and surpassing customer expectations is an all inclusive perspective that cuts across all service domains. However, it is normal for customer expectations to change. Occasionally, the experiences that customers have with other service providers influence their expectations (Mosahab, Mahamad and Ramyah, 2010). When the customers of a particular telecommunication’s firm change their expectations due to the changes seen in another firm, there is a gap. A gap basically refers to the disparity or difference between the perceptions that customers have about a company’s performance and their previous expectations of it (Mohr and Thomas, 2003). The service quality management in telecommunication corporations is largely based on how to manage such gaps. If gaps are not adequately addressed, it is common for customers who are dissatisfied to move to other telecom providers that offer the services that the customers are looking for. Customer satisfaction is an individual feeling of disappointment or pleasure with a particular service or product being offered. Service providers usually consider customer satisfaction as one of the most important, if not the most important, principles in business (Massam, 2003). This is because customer satisfaction is an obvious precondition for customer retention. As the positive result of marketing operations, high levels of customer satisfaction will result in repeated visits and more product purchases. Satisfied clients are also likely to spread the news of their satisfaction to friends and acquaintances; thus resulting in more revenue for the telecom service provider (Maiyaki and Mokhtar, 2011). On the other hand, it has been established that disappointed customers tend to complain of bad services to their friends and acquaintances. This will lead to the large-scale loss of existing as well as any potential customers (Khurana and Sohal, 2011). A satisfied client will not only stay longer, but is likely to start examining other products and weighing the possibility of purchasing other goods and services. Customer satisfaction can be viewed as either one that delivers cumulative satisfaction, or transaction-specific satisfaction. Customer satisfaction that is transaction-specific has to do with a consumer’s assessment of her or his particular reactions to a service provider (Ismail, Ali and Abdullah, 2009). Conversely, cumulative satisfaction has to do with the client’s general perception of a wide range of issues, from inception to date, regarding a service provider. The expectations of the customers of Telecom industries Satisfaction is generally referred to as the customer’s response of fulfilment at having enjoyed a transaction experience with a service provider (Ishaq, 2010). It is the decision that a service or product is offering an agreeable level of consumption-related enjoyment. Other marketing researchers have referred to customer satisfaction as a consumer’s assessment of a service or product according to whether that it has met his or her previous expectations. The failure to meet consumer expectations generally leads to a general disappointment in the service or product (Hellberg, Greene and Boyes, 2007). It is vital for telecom service providers to appreciate the issues that contribute to customer dissatisfaction. Most of the time, dissatisfaction about one specific aspect in a service provider can result in a general dissatisfaction with all aspects of the service provider, even if all other aspects are satisfactory. For example, if a consumer feels ignored by the staff, he or she will start seeing unfriendly agendas in any other errors that may be unintentionally committed by the service provider’s personnel (Hanrahan, 2007). Another aspect of customer dissatisfaction with service provider has to do with whether dissatisfaction or satisfaction is experienced in a cumulative fashion or in a single ‘service occurrence (Horak, 2008). It is quite possible for a client to be contented with a specific service of a telecommunications corporation, but be unhappy with another aspect in the same service provider. In most cases, customer satisfaction indicators are based on the appraisals of cumulative satisfaction. This means that any consumer's assessment will have different results, right from the pre-purchase expectations to their devotion to a specific service provider. Another important difference is that between a customer’s satisfaction with a specific contractor, and the customer’s satisfaction with the entire sector (Goodman, 2006). For example, a customer may be satisfied with the services as well as performance level of a specific mobile phone contractor, but feel dissatisfied with the marketing strategy and pricing as a whole. The customers of service providers are often confronted by numerous offerings of goods and services that might meet a particular need. They then form expectations about the significance of various market offerings and make procurements accordingly. Satisfied consumers will constantly make purchases from their favourite service providers and inform other potential clients of their experiences. While dissatisfied consumers will disparage a service provider then switch to other providers, satisfied customers tend to be less price sensitive and become dedicated customers of their favourite service provider. Moreover, it has been found that the relationship between true loyalty and customer satisfaction is not often very clear. A research study detailed by (Desai, 2006) established that even a slight drop from total satisfaction can trigger a considerable drop in terms of customer loyalty. The research study confirmed that satisfied customers are 40 percent more inclined to being loyal customers than somewhat satisfied customers. This same study also discovered that 65% of consumers who state that they are happy with a service or product might still consider switching to other alternative service providers (Brown, 2003). In most cases, it is the consumers who are highly satisfied with a product or service and will remain with a service provider for an extended period of time. What are the suggestions and the solutions to improve the quality of the service? The contemporary quality management values employed in most telecommunication service providers have been strongly affected by the findings of Deming and Juran (Bertot, 2003). The structure of Deming Management technique expresses the efficiency of the model by use of intensive leadership efforts towards the institution of collaboration as well as learning organisation schemes that stimulate the realisation of proficient process management (Andrew and Petkov, 2003). The comprehension of process management methods allows telecommunication organisations to realise customer satisfaction via personnel fulfilment as well as constant improvement. Internal cooperation in service providers can manifest itself in acts of teamwork, mutual respect, and unity of purpose. This cooperation inspires synergy and allows for individual as well as team performances that shape the success of service provider quality initiatives (Berra, 2003). Through problem solving as well as integrated efforts, teams can accomplish greater results. This has been witnessed in a number of telecommunications industries that have incorporated Deming’s model. For example, the development programs that were started at Vodafone include team oriented arrangements. This has inspired the formation of a cooperative culture to realise corporate objectives. To what extent are the dealers satisfied with the level of the service provided by the company? Dealers are vital, as channel members, for every telecom service provider as the path through which the goods reach the consumers. This is particularly true for service providers with numerous business operations. It is usually not practical or advisable for such outfits sell directly to the final customers (Anarory and Theethayi, 2010). Owing to this fact, telecommunication service providers, particularly those with a presence in many nations, have to rely on dealers who have a significant role in adding value to the goods before selling them. The dealers have a critical role in marketing the product as consumer preference as well as loyalty is stimulated by the services and products supplied through the dealers. The dealers’ preferences and approach to customers is vital because they are the ones that are exposed to the customers. The dealers can even recommend that the marketers make certain changes to the product in order to boost sales. As a partner that reaches customers on behalf of other marketers, dealers are usually driven to do what is best first for their own businesses and not necessarily what the telecom operators want to be accomplished first (Agyapong, 2011). What the dealers are likely to view as being of most importance is how they can make a profit; therefore, any incentive programs that reflect the relationship intention of the telecom service providers as well as its motivational pattern will be appreciated by the dealer. In the dealer’s view, the word “partner” means that the dealership company will also be assisted by the telecom provider to expand and improve its own operations. This potential collaboration in building each other up actually may prove to be a greater motivation for the dealer than even any extra commission. While assessing the dealers’ commitment to a joint venture, telecom service providers should ensure that they consider the dealer’s feedback about their own company’s performance. This can help the service provider to know how the dealers as well as the end users of the product view their general brand. Telecom operators have to consider the market strategies used by the dealers, as well as their preferences and tastes prior to making a decision on the dealers to use in marketing their product. In general, when dealers needs and demands are met, it is likely that they will market the product creatively, resulting in profitability and growth for both the service provider as well as the dealer’s company. Conclusion Satisfied clients can easily be convinced into becoming loyal consumers of a telecom service provider; however, having satisfied clients does not automatically mean that the telecommunications corporation in question has loyal customers. A company will only be able to know who its loyal clients are when it goes through challenges. The customers that remain with the telecom service provider even in its challenging times are the ones that can be referred to as loyal consumers. A client remains loyal to a given telecom service provider, when he or she makes the decisions to use the services of this specific service provider over an extended period of time in spite of any challenges that might arise on the part of the customer such as increased prices. The only way for telecommunication corporations to stimulate this kind of dedication on the part of customers is by providing exceptional services on a daily basis. References Agyapong, G.K. (2011) ‘The effect of service quality on customer satisfaction in the utility industry - a case of Vodafone (Ghana)’, International Journal of Business and Management, vol. 6, no. 5 Anarory, J., & Theethayi, N. (2010) Broadband Power Line Communication Systems, WIT Press, Southampton. Andrew, T N. & Petkov, D. (2003) ‘The need for a systems thinking approach to the planning of rural telecommunications infrastructure’, Telecommunications Policy, vol. 27, no. 1, pp. 75-93. Berra, M. 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