a study of the impact of customer care services on...

A Study of the Impact of Customer Care Services on Customer Satisfaction of Mobile

Phone Subscribers of U.P. (East) Circle

A THESIS SUBMITTED TO THE IFTM UNIVERSITY

for THE AWARD OF DEGREE OF

DOCTOR OF PHILOSOPHY

in MANAGEMENT

By

Shekhar Srivastava Under the Supervision of

Dr.Ashish Bhatnagar

SCHOOL OF BUSINESS MANAGEMENT IFTM UNIVERSITY

MORADABAD (INDIA) 2013

CERTIFICATE

This is to certify that the thesis entitled A Study of the Impact of Customer Care

Services on Customer Satisfaction of Mobile Phone Subscribers of U.P. (East)

Circle submitted for the award of Ph.D degree in Management is the bon-a-fide

work of Mr.Shekhar Srivastava, carried out under my supervision.

He has fulfilled the requirements for the degree of Doctor of Philosophy in

Management at IFTM University regarding the nature and prescribed period of

work.

The thesis submitted by him incorporates the work done by him and has

not been submitted elsewhere for any degree or diploma.

Date: (Dr.Ashish Bhatnagar)

Research Supervisor

DECLARATION

I hereby declare that the thesis entitled A Study of the Impact of Customer Care

Services on Customer Satisfaction of Mobile Phone Subscribers of U.P. (East)

Circle submitted by me to the IFTM University for the award of Degree of

Doctor of Philosophy in Management is my own and that it has not been

submitted previously to any other institution including this university nor has been

published at any time before.

Date: (Shekhar Srivastava) Research Scholar Ph.D (Management) Program IFTM University, Moradabad

Contents

Sr. No. Chapters Page No.

1. Preface i - iv

2. Acknowledgement v

3. List of Abbreviations vi

4. List of Tables vii - x

5. List of Figures xi - xv

6. Chapter 1 : Introduction 1 - 36

1.1 Introduction 1

1.2 Customer Requirements while Contacting a Customer Service 6

1.3 Development of Mobile Telecommunication 7

1.3.1 Service Quality and Mobile Phone Services 10

1.3.2 Mobile Number Portability (MNP) and its Impact on Service Providers 12

1.3.3 Players and Role of Mobile Telecommunication 14

1.4 Overview of Mobile Service Providers in U.P. (East) Circle 17

1.4.1 Bharti Airtel Limited 17

1.4.2 Reliance Communications 18

1.4.3 Tata Teleservices Limited 20

1.4.4 Bharat Sanchar Nigam Limited 22

1.4.5 Vodafone 23

1.4.6 Idea Cellular Limited 24

1.4.7 Aircel Group 25

1.4.8 Uninor 26

1.4.9 Mobile TeleSystems (MTS) 28

1.5 Role of TRAI 29

1.6 Problem Statement 31

1.7 Objectives of the Study 32

1.8 Importance and Scope of the Study 33

1.9 Structure of Thesis 35

1.10 Conclusion 36


7. Chapter 2 : Review of Literature 37 - 79

2.1 Introduction 37

2.2 Service and Its Attributes 39

2.3 Service Quality 42

2.4 Customer Needs and Expectations 48

2.5 Perceived Value 48

2.6 Customer Satisfaction 50

2.7 Service Quality Models 51

2.7.1 Technical and functional quality model (Gronroos 1984) 51

2.7.2 GAP model (Parasuraman et al. 1985) 52

2.7.3 Attribute Service Quality Model (Haywood-Farmer, 1988) 54

2.7.4 Synthesised Model of Service Quality (Brogowicz et al. 1990) 56

2.7.5 Performance Only Model (Cronin and Taylor 1992) 57

2.7.6 Ideal value model of service quality (Mattsson, 1992) 57

2.7.7 Evaluated Performance and Normed Quality Model (Teas 1993) 58

2.7.8 IT Alignment Model (Berkley and Gupta 1994) 59

2.7.9 Retail Service Quality and Perceived Value Model (Sweeney et al. 1997) 60

2.7.10 Service quality, customer value and customer satisfaction model (Oh 1999) 61

2.7.11 Antecedents and Mediator Model (Dabholkar et al., 2000) 62

2.7.12 Internal Service Quality Model (Frost and Kumar, 2000) 62

2.7.13 Model of e-Service Quality (Santos 2003) 64

2.8 Disconfirmation Models 65

2.9 Satisfaction-Loyalty link 66

2.10 Complaint Management 68

2.11 Customer Relationship Management 70

2.11.1 Benefits of CRM project 72

2.12 Major Research Gaps 76

2.13 Conclusion 78


8. Chapter 3 : Background of the Study 80 - 113

3.1 Introduction 80

3.2 Relationship in Business 81

3.3 Origin of Customer Relationship Management (CRM) 82

3.3.1 Features of CRM 84

3.4 Relationship Marketing-Historical Framework 87

3.5 Evolution of Relationship Marketing 88

3.5.1 Definitions of Relationship Marketing 90

3.6 Customer and Customer Care 96

3.7 Need of Relationship with Customers 97

3.8 Customer Profiling 102

3.9 Key changes in the business environment and customer based marketing 106

3.10 Service Quality and Customer Satisfaction 108

3.11 Conclusion 113

9. Chapter 4 : Research Methodology 114 - 136

4.1 Introduction 114

4.2 Types of Research 117

4.3 Statement of the Problem 119

4.4 Objectives of the Study 121

4.5 Hypotheses of Study 121

4.6 Research Methodology Used 122

4.7 Research Process 125

4.8 Tools & Techniques used for Data Analysis 128

4.8.1 Chi-Square Test 128

4.8.2 Factor Analysis 129

4.9 Key Stages in Research 129

4.9.1 Questionnaire Design 130

4.9.2 Variables Used 131

4.9.2.1 Dependent Variables 132

4.9.2.2 Independent Variables 132

4.9.2.3 Intervening/Extraneous Variables 133


4.9.3 Pre Testing and Reliability of the Questionnaire 133

4.9.4 Specifying the Data Needs and Data Collection 135

4.9.5 Data Analysis 135

4.10 Limitations of the Study 136

4.11 Conclusion 136

10. Chapter 5 : Data Analysis & Interpretation 137 - 240


5.1 139

5.2 A study of customer satisfaction with reference to effectiveness of the network, billing/call charges and multimedia/value added services 148

5.2.1 Part I - Effectiveness of the Network 148

5.2.2 Part II - Billing/Call Charges 158

5.2.3 Part III - Multimedia/Value added Services 169

5.3 A study of Customer Satisfaction with reference to Customer Care Services and Quality Dimensions 177

5.3.1 Part I - Customer Satisfaction with various dimensions of Customer Care Services 177

5.3.2 Part II - Customer Satisfaction with various quality dimensions 199

5.4 Overall Customer Satisfaction Level and Switching Intention 211

5.5 Testing of Hypotheses 225

5.6 Factor Analysis 230

5.7 Conclusion 239

11. Chapter 6 : Conclusion and Recommendations 241 - 252


6.2 Conclusion 245

6.3 Recommendations 248

6.3.1 Service Provider-wise Recommendations 248

6.3.2 Recommendations for Regulator and Policy Makers 251

6.4 Scope for Future Research 252

12. Bibliography 253 - 265

13. Annexure 266 - 294

Annexure A : Questionnaire 266

Annexure B : Research Papers Published 274

i

PREFACE

The customers are very important and play a crucial role in any process of

marketing. Today, customers are the kings of the market and marketers are smart

their expectations i.e. they delight them.

Customer service refers to a series of activities designed to enhance the

a customer s

experience in dealing with an organisation. In terms of business strategy it

represents an overall description of the desired relationship between the producer

and the customer. It allows a company to keep the cost of running a business at a

reasonably low level and also helps to increase productivity in a company

especially if such a service is of high quality and customer friendly. The

relationship between customer service and customer satisfaction is a vital one. It is

a relationship in which both the business and the customer can come out ahead if

the relationship steadily builds over time, driving business results, and

subsequently inspiring a fierce loyalty of the customer to the brand.

Telecom services are recognized world-over as an important tool for the

socio-economic development of a nation. It is one of the prime support services

essential for rapid growth and modernization of various sectors of the economy. In

India too, the telecommunication sector has revolutionized the way we

communicate and share information, thereby helping over 900 million Indians

stay connected.

In the last ten years, the mobile revolution has truly changed the socio-

economic landscape of India and played a pivotal role in the growth and

development of the economy. The Indian mobile telecommunication industry has

ii

witnessed significant rise in competition in recent years largely due to the

deregulation policy of government and the advent of mobile telecommunication

companies.

Mobile telecommunication companies are continuously competing for

customer-centric strategies to sustain in the market in the long-run i.e. there is an

increasing need to build loyal customers through effective

activities. Loyal customers, from cost perspective tend to stay longer with the

preferred providers, buy more and generate favourable word of mouth effect that

may further benefit the service provider but considering the competitive battle in

the mobile telecommunications industry, there is a risk that customers may leave

their service provider irrespective of retention efforts.

Competitive advantage is secured through intelligent identification and

satisfaction of customers needs better and sooner than competitors and sustenance

mobile market is poised to grow at an increasing rate, the mobile service providers

have not been able to either maintain or increase customer satisfaction.

This research focuses on various issues related to customer care and

switch to other competitor networks. This study is helpful in recognizing the

importance of customer care services and its overall impact on customer

satisfaction and finally the switching intention of the mobile subscribers and what

role MNP is playing in this highly competitive market. To the management of

mobile phone service providers in Uttar Pradesh (East) circle, the findings and

results of this study will provide a more reliable, scientific measure and

perspective for describing and evaluating the level of their customer satisfaction

with the services they deliver.

iii

This study provides empirical support for management strategic decisions

in several critical areas of their operations, and above all, provide a justifiably

valid and reliable guide for designing workable service delivery improvement,

strategies for creating and delivering customer value, achieving customer

satisfaction and loyalty, building long- term mutually beneficial relationship with

profitable customers and achieve sustainable business growth in Uttar

Pradesh (East) circle.

To policy makers such as the Ministry of Communications and Telecom

Regulatory Authority of India, the findings and results of this study will provide

invaluable insights and a more reliable guide to evaluate performance of service

providers with special reference to customer care services. It will also help the

TRAI to ensure that these operators are responsive to customer and community

The study is organised into six chapters

Chapter 1 - Introduction

Chapter 2 - Review of Literature

Chapter 3 - Background of the Study

Chapter 4 - Research Methodology

Chapter 5 - Data Analysis & Interpretation

Chapter 6 - Conclusion and Recommendations

First Chapter - Introduction ctory in nature and it covers

Concepts and theoretical framework, Development of Telecommunications in

India, Objectives, Scope and importance of the study.

Second Chapter - Review of Literature

the study and the results of various studies are summarized.

iv

Third Chapter - Background of the Study s the concept of

Relationship Marketing, Customer Care and Service Quality with special

reference to Mobile Phone services.

Fourth Chapter - Research Methodology consists the details regarding

various sources used for data collection, sampling and its plan, hypotheses and

statistical tools applied to fulfill the study objectives.

Fifth Chapter- Data Analysis & Interpretation

collected data by using various statistical tools and interpretations are done to

expose relations and processes that underlie.

Sixth Chapter- Conclusion and Recommendations concludes the study

with major findings, conclusion and recommendations.

(Shekhar Srivastava)

v

ACKNOWLEDGEMENT

I take this opportunity to express my gratitude to all those, who have made contribution towards the successful completion of this thesis. Above all, I express my gratitude to the almighty for his blessings.

I am extremely grateful to my respected supervisor Prof.Ashish Bhatnagar who has provided excellent guidance, given me valuable suggestions, and shared intelligent thoughts. I am very much grateful to him for his valuable presence despite his busy schedule, which helped me to complete this research work successfully.

It gives me pleasure to express my warm regards and sincere thanks to Dr.A.L.Kundu, Professor, Defence University College, Ethiopia and Late Prof. K.V.Babu, Former HOD MBA Program, LDCITS, Allahabad for their encouragement and incessant help during the research work.

I am also grateful to the subscribers of various mobile phone service providers, who participated and cooperated in this study. I gratefully acknowledge the help in terms of valuable suggestions given by executives of mobile phone service providers of U.P. (East) Circle.

My earnest thanks are due to all the Research Committee members for constantly monitoring my work and for providing valuable suggestions. I would like to gratefully acknowledge the support and encouragement provided by the management of IFTM University, Moradabad.

I would also like to thank Mr. Sanjay Saxena for proof reading my thesis with great patience.

Finally, I would like to whole heartedly thank everyone, who wished for the successful outcome of the thesis, and also submitting my apology that, I could not mention their names individually.

Date: (Shekhar Srivastava)

Place:

vi

List of Abbreviations

3G Third Generation Services

B2B Business-to-Business Marketing

B2C Business-to-Consumer Marketing

BSNL Bharat Sanchar Nigam Limited

CDMA Code-Division Multiple Access

CRM Customer Relationship Management

EP Evaluated Performance

ERP Enterprise Resource Planning

FDI Foreign direct investment

GSM Global System for Mobile Communications

ILD International Long Distance

IT Information Technology

MNP Mobile number portability

MTNL Mahanagar Telephone Nigam Limited

NLD National Long Distance

RM Relationship Marketing

SCM Supply Chain Management

TRAI Telecom Regulatory Authority of India

UAS Unified Access Service

vii

List of Tables

Table No. Table Description Page

No.

1.1 History of Cellular Telephony in India 8

1.2 Mobile Phone Service Providers of India 16

2.1 Relevance of Quality Dimensions in Mobile Services 67

2.2 Summary of Various Studies in the area of Cellular Mobile Telephony

75

3.1 Difference between Conventional Marketing and Relationship Marketing

93

5.1.1A City of Respondent(s) 139

5.1.2A Gender of Respondents 140

5.1.3A Age Group 141

5.1.4A Profession of Respondent(s) 142

5.1.5A Monthly Income of Respondent(s) 143

5.1.6A Telecommunication Service Provider 144

5.1.7A Type of Mobile Communication 145

5.1.8A How long have you been using this connection? 146

5.1.9A Monthly Expenses on Mobile Phone 147

5.2.1.1B Main Connectivity Problem - Service Provider Wise 148

5.2.1.2B Service Provider Wise Connectivity Problem Area 150

5.2.1.3B Service Provider Wise Specific hours of the day-when you faced the problem

152

5.2.1.4B Do you get the expected network services from your service provider?

154

5.2.1.5B To what extent, your mobile services met your expectations?

155

5.2.1.6B Rate your satisfaction level with reference to effectiveness of the network

157

5.2.2.1B If you are a postpaid customer, are you aware about the billing system of your service provider

159

viii


No.

5.2.2.2B If you are a postpaid customer, do you receive billing updates from your service provider

160

5.2.2.3B If you are a postpaid customer, are you satisfied with the billing services of your service provider?

161

5.2.2.4B If you are a prepaid customer, are you aware about the tariff plans/recharge coupons offered by your service provider?

162

5.2.2.5B If you are a prepaid customer, do you receive updates to recharge your prepaid card?

163

5.2.2.6B If you are a prepaid customer, are you satisfied with the prepaid tariff plans/recharge coupons offered by your service provider?

165

5.2.2.7B Do you think call Charges of your service provider is economical in comparison to other operators?

166

5.2.2.8B Rate your satisfaction level with reference to call charges. (Service Provider wise)

168

5.2.3.1B Are you aware about 3G (3rd generation) technology? 169

5.2.3.2B Are you using 3G technology services offered by your service provider?

170

5.2.3.3B Are you using Internet/Broadband/E-mail facilities offered by your service provider through mobile phone?

171

5.2.3.4B Are you getting regular updates regarding various value added services offered by your service provider?

172

5.2.3.5B To what extent, value added services (access to Internet, SMS, MMS, Voice message etc) offered by your service provider met your expectations?

173

5.2.3.6B Rate your satisfaction level with reference to Multimedia/Value added Services.

175

5.3.1.1C Prompt Customer Services in Terms of Accessibility of Customer Care Centres and Handling of Customer Complaints

177

5.3.1.2C Ability of the Customer Care Executive to Understand the Specific Needs of the Customers and to Communicate with them

180

ix


No.

5.3.1.3C Sincerity, patience and capability to solve customer problems

183

5.3.1.4C Satisfaction with the Response of Customer Care Executive(s)

185

5.3.1.5C Willingness of Customer Care Executive(s) to Help in Emergency Situations

188

5.3.1.6C Behaviour of Customer Care Executive(s) in establishing service confidence and their customer centric approach

191

5.3.1.7C Rating for Customer Care Services of Mobile Operators 193

5.3.1.8C Are Customer Care Executive(s) Apologizing for Inconvenience Caused to Customers?

196

5.3.2.1C Effectiveness of the Network to offer Variety of Entertainment Facilities

199

5.3.2.2C How truthful is your service provider to you? 201

5.3.2.3C Having sound loyalty programme to recognize you as a frequent customer

203

5.3.2.4C How economical is the use of your telecom network services?

205

5.3.2.5C Network Innovativeness 207

5.3.2.6C How do you rate the brand image and reputation of your service provider?

209

5.4.1D Rate Your Overall Satisfaction Level with Your Service Provider

211

5.4.2D Do you think that your mobile service provider has few drawbacks as compared to other operators?

213

5.4.3D Are you aware about the MNP (Mobile Number Portability)?

215

5.4.4D Do you think MNP is helping operators to bring better choice to the customers?

217

5.4.5D Do you have the Intention of Switching to a Better Service Provider?

219

5.4.6D If Decided to Switching to a Better Service Provider, Name of New Service Provider

221

x


No.

5.4.7D Reasons for Switching to New Operator 223

5.5.1E Rating of the customer care services and Rating of Overall Satisfaction Level with the Service Provider

225

5.5.2E Overall Satisfaction Level with Service provider Switching Intention

226

5.5.3E Satisfaction with effectiveness of the Network Switching Intention

227

5.5.4E Satisfaction with the Call Charges Switching Intention 228

5.5.5E Satisfaction with Multimedia/Value Added Services Switching Intention

229

5.6.1F Communalities 230

5.6.2F Total Variance Explained 231

5.6.3F Component Matrix 231

5.6.4F Rating of customer care services and City of Respondents 232

5.6.5F Rating of customer care services and Name of the service provider

234

5.6.6F Communalities 236

5.6.7F Total Variance Explained 236

5.6.8F Component Matrix 237

5.6.9F Brand Image and Reputation of Service Provider and Name of the Service Provider

238

xi

List of Figures

Figures No.

Figure Description Page No.

1.1 Product-Focused Approach to Customer-Focused Approach

2

1.2 Customer-Care System 4

2.1 Grönroos Model of Service Quality 52

2.2 The Gap Model of Service Quality 53

2.3 The Extended Gap Model of Service Quality 54

2.4 Attribute Service Quality Model 55

2.5 Synthesised Model of Service Quality 56

2.6 Ideal value Model of Service Quality 58

2.7 The IT Alignment Model 59

2.8 Retail Service Quality and Perceived Value Model 60

2.9 Service Quality, Customer Value and Customer Satisfaction Model

61

2.10 Antecedents and Mediator Model 62

2.11 Internal Service Quality Model 63

2.12 Model of e-Service Quality 64

2.13 The Effect of Satisfaction 66

3.1 Influences on Relationship Marketing 93

3.2 The Satisfaction Profit Chain 102

3.3 A Framework for Evaluating a Customer Service Policy 105

3.4 The American Customer Satisfaction Index (ACSI) Model 111

4.1 Research Approach 126

5.1.1A City of Respondents 139

5.1.2A Gender of Respondents 140

5.1.3A Age Group 141

5.1.4A Profession of Respondent(s) 142

xii

Figures No.


5.1.5A Monthly Income of Respondent(s) 143

5.1.6A Telecommunication Service Provider 144

5.1.7A Type of Mobile Communication 145

5.1.8A How Long have you been using this connection? 146

5.1.9A Monthly Expenses on Mobile Phone 147

5.2.1.1B Main Connectivity Problem - Service Provider Wise 149

5.2.1.2B Service Provider Wise Main Connectivity Problem Area 151

5.2.1.3B Specific hours of the day-when you faced the problem 153

5.2.1.4B Do you get the expected network services from your service provider?

154

5.2.1.5B To what extent, your mobile services met your expectations?

156

5.2.1.6B Rate your satisfaction level with reference to effectiveness of the network

158

5.2.2.1B If you are a postpaid customer, are you aware about the billing system of your service provider

159

5.2.2.2B If you are a postpaid customer, do you receive billing updates from your service provider

160

5.2.2.3B If you are a postpaid customer, are you satisfied with the billing services of your service provider?

162

5.2.2.4B If you are a prepaid customer, are you aware about the tariff plans/ recharge coupons offered by your service provider?

163

5.2.2.5B If you are a prepaid customer, do you receive updates to recharge your prepaid card?

164

5.2.2.6B If you are a prepaid customer, are you satisfied with the prepaid tariff plans/recharge coupons offered by your service provider?

166

5.2.2.7B Do you think call charges of your service provider is economical in comparison to other operators? (Service Provider Wise)

167

5.2.2.8B Rate your satisfaction level with reference to call charges. (Service Provider wise)

168

xiii

Figures No.


5.2.3.1B Are you aware about 3G (3rd generation) technology? 169

5.2.3.2B Are you using 3G technology services offered by your service provider?

170

5.2.3.3B Are you using Internet/Broadband/E-mail facilities offered by your service provider through mobile phone?

171

5.2.3.4B Are you getting regular updates regarding various value added services offered by your service provider?

172

5.2.3.5B To what extent, value added services (access to Internet, SMS, MMS, Voice message etc) offered by your service provider met your expectations?

174

5.2.3.6B Rate your satisfaction level with reference to Multimedia/Value added Services

176

5.3.1.1C Prompt Customer Services in Terms of Accessibility of Customer Care Centres and Handling of Customer Complaints a) Prompt Customer Services and Expectation of the

Subscribers b) Prompt Customer Services Service Provider wise

179

5.3.1.2C Ability of the Customer Care Executive to Understand the Specific Needs of the Customers and to Communicate With Them a) Ability of the Customer Care Executives b) Ability to Understand the Need of Customers

Service Provider wise

182

5.3.1.3C Sincerity, patience and capability to solve customer problems

184

5.3.1.4C Satisfaction with the Response of Customer Care Executive(s) a) Response of Customer Care Executive(s)

Expectation Level wise b) Response of Customer Care Executive(s) Service

Provider wise

187

xiv

Figures No.


5.3.1.5C Willingness of Customer Care Executives to Help in Emergency Situations a) Willingness of Customer Care Executive(s) b) Willingness of Customer Care Executive(s)

Service Provider wise

190

5.3.1.6C Behaviour of Customer Care Executive(s) in establishing service confidence and their customer centric approach

192

5.3.1.7C Rating for Customer Care Services of Mobile Operators a) Rating for Customer Care Services of Mobile

Operators b) Rating for Customer Care Services of Mobile

Operators Service Provider wise

195

5.3.1.8C Are Customer Care Executives Apologizing for Inconvenience Caused to Customers? a) Customer Care Executives Apologizing for

Inconvenience Caused to Customers b) Customer Care Executives Apologizing for

Inconvenience Caused to Customers Service Provider wise

198

5.3.2.1C Effectiveness of the Network to offer Variety of Entertainment Facilities

200

5.3.2.2C How truthful is your service provider to you? 202

5.3.2.3C Having Sound Loyalty Programme to Recognize you as a Frequent Customer

204

5.3.2.4C How Economical is the use of your Telecom Network Services?

206

5.3.2.5C Network Innovativeness 208

5.3.2.6C How do you rate the brand image and reputation of your service provider?

210

5.4.1D Rate Your Overall Satisfaction Level with Your Service Provider

212

5.4.2D Do you think that your mobile service provider has few drawbacks as compared to other operators?

214

xv

Figures No.


5.4.3D Are you aware about the MNP (Mobile Number Portability)?

216

5.4.4D Do you think MNP is helping operators to bring better choice to the customers?

218

5.4.5D Do you have the Intention of Switching to a Better Service Provider?

220

5.4.6D If Decided to Switching to a Better Service Provider, Name of New Service Provider

222

5.4.7D Reasons for Switching to New Operator 224

5.6.1F Rating of Customer Services and City of the Respondents 233

5.6.2F Rating of customer care services and Name of the service provider

235

5.6.3F Brand Image and Reputation of Service Provider 239

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