Review of literature on customer satisfaction in telecom sector

Review of literature on customer satisfaction in telecom sector

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Remember me on this computer. Enter the email address you signed up with and we'll email you a reset link. Need an account? Click here to sign up. Download Free PDF. The impact of quality of services and satisfaction on customer loyalty: The moderate role of switching costs Management Science Letters, Mohammad Adaileh. Download Download PDF Full PDF Package Download Full PDF Package This Paper.

A short summary of this review of literature on customer satisfaction in telecom sector. The impact of quality of services and satisfaction on customer loyalty: The moderate role of switching costs. Management Science Letters 10 — Contents lists available at GrowingScience Management Science Letters homepage: www.

The study review of literature on customer satisfaction in telecom sector studies though the role of switching cost as a mod- Received in revised format: No- erate variable.

Lack of studies in the field of quality in Jordanian telecommunication is the main vember 25 reason for this review of literature on customer satisfaction in telecom sector. Therefore, the study uses statistical December 27, data gathered through a questionnaire distributed to the employees of ASEZA.

Thus, statistical Keywords: methods are used to analyze the data collected and the hypotheses are tested. In addition, the moderator model Switching cost has sig- Customers loyalty nificant positive impacts on enhancing the relationship between service quality and customer sat- Switching cost isfaction towards customer loyalty.

Introduction The beginnings of communications in the world goes back to the invention of the electric telegraph, which was the commu- nication tool to send messages in the early years of the nineteenth century.

It was used in Europe, and with the begin of the mobile communications were locally and internationally developed and enhanced the possibility of making calls at any time and place over time.

The mobile telephone industry has revolutionized review of literature on customer satisfaction in telecom sector digital information technology and impacted the world with its typical services. Until these days, mobile communications are still flourish and improving with the intro- ducing more internet services such as email and social pages Huurdeman, In addition, telecommunication networks have become the primary element among the individuals in society, and play vital role to communicate with others by high quality.

In Jordan, the telephone service market faces competition in local market and internationally; where in Jordan there is three companies provide telephone and internet services such as Zain, Orange and Umniah. E-mail address: Iharazneh meu. Harazneh © by the authors; licensee Growing Science, Canada doi: The statistics shows Jordan Telecommuni- cation Regulatory Authority that the numbers of subscribers in these companies reached More- over, the number of subscribers in the aforementioned companies reached 5.

The equity stakes in market share among telecommunication com- panies, confirmed the strength competition among those companies, where the companies offer better features and competitive prices increase for customer retention. Due to the strong competition in telecoms market, the telecommunication companies established strategies, worked as a barrier to prevent customer to switch to another competitor, such as the terms of the agree- ment borne by the customer and the costs paid by customer, therefore these strategies sought to keep current customers and attract new customer.

In this context, the question comes to mind is to learn how Jordanian telecom companies increase the customer loyalty by providing high quality services and achieve satisfaction with these services through their competitive offers.

Literature review The global communications environment has seen a lot of changes since last decade, review of literature on customer satisfaction in telecom sector, due to several factors that could be attributed to globalization and the technology revolution Abubakar et al. Further, review of literature on customer satisfaction in telecom sector, there is a high competition among companies in the telecommunications sector Alzghoul et al.

The customers also have become aware of their importance for companies and they are more interested in the way they are treated by company employees and how they receive their services Alnajdawi et al. It has led to the development of a service quality role as an inevitable consequence to survival and continued in engagement with these companies.

In addition, the focus on service quality is fundamental to being directly related to the level of customer satisfaction which helps to make customer satisfaction as one of the important goals for any organization Caruana, ; de Ruyter et al.

Further, the more customers feel that the telecommunication companies are interested in solving their problems, the more loyal they are. In this context, the fact is the winning a new customer takes five times more than customer retention. Due to the importance of customers for all companies, the telecommunication companies are plagued by challenges to reach quality of services.

In other words, customer satisfaction has to focus on customers and to attempt to attract new customers with new strategies, review of literature on customer satisfaction in telecom sector.

This study determines the impact of the quality of telephone services by Jordanian telecom companies and customer satisfaction on the customer loyalty in the light of switching costs as a moderate variable, from the perspective of Aqaba Special Economic Zone Authority.

According to Durkin and Howcroft in order to sustain the relationship with customers, customer loyalty must be maintained and developed through solid social relationships in order to achieve the new concept of emotional customer loyalty, so that customers reach the top of loyalty to the companies. A number of researchers, such as Arnott and Bridgewaterwho focused on the fact that in order to achieve the highest profit and the largest market share, the current loyal customers must be retained because they cost the organization less than attracting new customers who expected to serve them.

Harazneh et al. It is too difficult for loyal customers to switch to another company, because they do not have sensitivity toward the price and ready to purchase in high prices in addition to intent of repurchase which lead to frequently purchase. Customer loyalty allocated to a particular company or a specific brand will give an advantage by indirect promotion to the company services. Moreover, they will tell others about the previous positive experiences and the way that they used the services and even to convince the others about joining to the company.

Therefore, they become active source to attract new customers for this company, and decrease the costs of attracting customer and even they will invest the difference to promote to other customers by promotions campaigns de Cannière et al. Service provided to customers will keep them loyal to service companies if the value of what they get, is greater than what they expect from competitors since loyalty reflects the customer's return and the review of literature on customer satisfaction in telecom sector of dealing with the service pro- vider.

As a result of many studies indicate that there is a positive relationship between quality of service and level of loyalty, particularly that customer loyalty is often one of the dependent variable in the model of quality of service, where Sirdeshmukh et al. Mohsan et al. This is basically the goal of every organization to which it seeks to strengthen relationship, growth and gain customer satisfaction.

Specifically, those who had a previous positive experience will be been as a free advertising for a company when they seek the news from friends and others about the company services.

Due to the importance of customer satisfaction in the services industry, the unsatisfied customers for a specific service provider can keep the organization out of gaining the customers who are expected to use the company services, where the customer's satisfaction can maintain and attract new customers frequent in the near and long term. Satisfaction can be divided into two important aspects based on theoretical literature, specific satisfaction, and cumulative satisfaction.

Specific satisfaction can be summarized as collected information about a particular service when the customers want to use it, where the cumulative satisfaction is the evaluation of the service period after the usage process and over time and past experience about the service customers reach full satisfaction because it predicts about high performance in present and future Ghazali, ; Vildová et al.

There are three aspects influencing on customer satis- review of literature on customer satisfaction in telecom sector directly Athanassopoulos et al. Li and Green, mentioned that the market has a number of competitors providing the same services, review of literature on customer satisfaction in telecom sector, therefore the customer is free to choose any firms or provider, in addition, to maintain the current customer when they join the firm, they must provide better offers for better quality at the same time and low costs then the customer will join the best provider offers in the service market.

Akbar and Parvez pointed out about the quality of service and customer satisfaction in both the business and academic sectors and provided a strong relationship between quality of service and customer satisfaction. It can measure customer satisfaction through customer expectation compression with actual performance, where the customer will be satisfied when the actual performance meet his expectations, and dissatisfied when actual performance does not meet his expectations Abdullah et al. In addition, the customer's knowledge of the services is considered whether the offers reflect the reality of the services or the offers only attract the consumer to the service market and does not consider the service value Gupta, ; Mascarenhas et al.

The high costs that will be incurred by the customer, since the companies use strategies in order to retain the customers such as the postpaid offers, and also it could reach the psychological and social strains. Adding to that the costs of education and financial costs caused by transfer to another service provider Fornell, The switching cost strategies reduce the transfer from one provider to another, due to the role of the knowledge of customer and previous experiences while trying to transfer, review of literature on customer satisfaction in telecom sector, and when customer expect that the switching costs are more beneficial from the switching.

The previous studies found that there is a negative relationship between switching costs and the uncertainty in the levels of customer satisfaction in most sectors. In addition, there is a concern about the role of switching costs and fluctuate the result in each study analysis and many suggest that the relationship between switching costs and customer loyalty is a relative and specific relationship Viard, There are different types of techniques which influence switching costs based on the type of commercial activity and the quality of service or the product.

According to the difficulty that facing customers to switch from one provider to another, because of the high costs when they want to switch, is better for customer to keep the relationship with the current provider and stay away of the risk and switch to a new provider and bearing new costs and probability of dissatisfaction with the new service provider Jackson, Dick and Basu mentioned that, there are a few of companies globally adopted a switching costs strategy to develop and raise the level of customer loyalty, in the same context, Burnham et al.

Service quality played the main role in gaining the largest number of customers and organization profit, so this is what makes the value and importance of service quality among the companies and in order to enhance customer satisfaction. The previous studies found that the high level of competition increases the service quality for the customers. Customer satisfaction is linked to the features and offers provided by the company.

Therefore, companies must focus on developing the service quality and to provide the competitive advantage and keep the relation with the customers to get their goals Oliver, ; Taamneh et al.

The customers depend on their previous experiences in expectation either positive or negative. Therefore, if the previous experience is positive it will lead the customers to continue with the same provider, however, if it is negative, it will encourage the customers to leave the current service provider. Accordingly, these methods lead the company to know to which extent the customers are satisfied with their service quality Alatailat et al.

The customer normally checks the service and decides whether the quality is consistent with the price Chen et al. According to Grönroos,the quality of services enhances the company's relationship with customers, but this relation- ship depends on providing the best quality service to develop a relationship with existing customers and even attracting new ones in the future. There is a difference between the evaluation of the service and product.

According to Parasuraman et al, review of literature on customer satisfaction in telecom sector. Proposed research framework 3. Research Hypothesis H1: Quality of telecommunications services and customer satisfaction impact customer loyalty of the Jordanian telecommu- nication companies positively. H Quality of telecommunication services impacts customer loyalty of the Jordanian telecommunication companies posi- tively.

H Customer satisfaction impacts customer loyalty of the Jordanian telecommunication companies positively. H2: Switching costs as moderating variable improves the relationship between quality of telecommunications services and customer satisfaction with customer loyalty of the Jordanian telecommunication companies positively. H3: There are statistically significant differences on customer loyalty of the Jordanian telecommunication companies, in terms of demographic variables; viz age, gender, level of scientific and income.

Sub hypotheses H There is statistically significant difference on customer loyalty of the Jordanian telecommunication companies in terms of gender.

H There is statistically significant difference on customer loyalty of the Jordanian telecommunication companies in terms of age.

H There is statistically significant difference on customer loyalty of the Jordanian telecommunication companies in terms of the level of education. H There is statistically significant difference on customer loyalty of the Jordanian telecommunication companies in terms of income, review of literature on customer satisfaction in telecom sector. Methods applied This study tries to assess the interplay among quality of Jordanian Telecoms services, satisfaction and customer loyalty under the presence of switching costs as a moderator variable.

Noting that this study is conducted in the Aqaba Special Economic Zone Authority and without the intervention from the researcher while the time horizon of the study is cross-sectional. of No. of Departments Departments Employees Employees 1 Directorate of beach management 48 15 labs department 69 2 Administration of land and property 23 16 Human resource management 3 Administration public works 17 Department of transportation 12 4 Administration of tax revenues 79 18 Information system 45 5 Environmental management 25 19 Promote investment opportunity 6 6 Storage management 20 local community 34 7 Licensing management 45 21 Customs department 47 8 Operation and Training management 7 22 Directorate of city service 9 Department of Studies and Planning 48 23 Investors services 57 10 Tourism management 20 24 Area review of literature on customer satisfaction in telecom sector 35 11 Department of supervision and enforcement 92 25 Media 5 12 Department of administration 26 Institutional development 14 13 Finance department 80 27 Internal control 10 14 Department of engineering tender 14 28 legislation law 9 Total 5.

Data analysis In this section the researchers will describe the characteristics of the demographics variables of the study sample Employees in ASEZAwhich are Gender, Age, Educational Qualification, Monthly Income. To describe these characteristics, the frequencies and percentages were calculated as follows: 1.

Gender The results obtained showed the frequency and percentages of males and females in the sample of the study.

What is CUSTOMER SATISFACTION RESEARCH? What does CUSTOMER SATISFACTION RESEARCH mean?

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