Syntax Literate: Jurnal
Ilmiah Indonesia p–ISSN: 2541-0849 e-ISSN: 2548-1398
Vol. 9, No. 10, Oktober 2024
CUSTOMER SATISFACTION IN
INDIGENOUS TELECOMMUNICATION COMPANIES IN NIGERIA: ROLE OF SERVICE QUALITY
Ogunberu Adedayo Olufemi1, Adeyemi Omolade Sunday2, Olubiyi
Timilehin
Olasoji3,
Binuyo Adekunle Oluwole4, Temi
Olajide-Arise5
1McPherson University, Seriki
Sotayo, Ogun State, Nigeria
2Oduduwa University Ipetumodu,
Ile-Ife, Osun State, Nigeria
3West Midlands Open University, Nigeria
4Babcock University, Ilishan
Remo, Ogun State, Nigeria
5Mountain Top University, Pakuro,
Nigeria
Email: [email protected], [email protected], [email protected], [email protected],
Abstract
The Nigeria's telecommunication sector is strongly impacted by customer
satisfaction and more so the sector is a competitive landscape where key
companies (MTN, GLO, AIRTEL, and 9MOBILE) are vying to maintain their market
share, ensure consumer satisfaction, and cultivate enduring service quality.
Service quality is a major factor in determining customer satisfaction,
especially in relation to mobile services offering, network reliability, data
speed, and coverage. Therefore, this study examined service quality and
customer satisfaction of selected telecommunication firms in Nigeria. The study
employed quantitative method and survey research while the population for the
study consisted ninety-four service team members selected from three (3)
telecommunication firms with the largest number of subscribers in Nigeria. The
sample size used for this study was total enumeration. The study employed a
validated adapted questionnaire which was on a six-point likert-type
scale and it was administered to the study participants to collect primary
data. The reliability test of the questionnaire was achieved with Cronbach
Alpha values was between 0.818 and 0.847. Data analysis and test of hypothesis
was conducted with descriptive and inferential statistics. The result obtained
from the analysis revealed that service scope has statistically positive and
significant effect on market share of selected telecommunication firms in
Nigeria (β = 0.515, t = 8.059, p<0.05). The study concluded that service
quality affect customer satisfaction of selected telecommunication firms in
Nigeria. It was recommended that firms should place more efforts in improving
the quality of products and services in order to improve customer satisfaction
and help reduce customer attrition.
Keywords: Customer satisfaction, Data speed, Mobile
service, Network reliability, Service quality.
Introduction
Customer satisfaction in Nigeria's telecom
sector is strongly impacted by service quality, which is still a crucial
concern. Service quality is a major factor in determining customer loyalty,
especially in relation to mobile services offering, network reliability, data
speed, and coverage. Consumers want reliable service, yet many experience frequent interruptions, which makes them unhappy.
Telecommunication firms need to enhance their service quality to aid customer
satisfaction and be competitive. Low quality offerings erode consumer
satisfaction among such firms as MTN, Airtel, and Glo
The researches of
Research Method
Quantitative methods and survey research designs were utilised to study the effect of service quality on customer
satisfaction of selected telecommunication firms in Nigeria. The survey approach is employed to assess the
opinions, attitudes, and feelings of various groups, allowing them to offer
more dependable and honest input regarding the issue under inquiry. This study
adopted the research methodology utilised by
Table 1. Sample size distribution
S/N |
Firm |
No. of service employees in the IS
department |
1 |
MTN Nigeria |
32 |
2 |
Airtel Nigeria |
30 |
3 |
9 Mobile |
32 |
TOTAL |
94 |
Source: Human Resource Department of Telecommunication
Firms (2019)
Total enumeration was used to sample all
the items in a universe leaving no element of chance to ensure that highest
accuracy is obtained and it is used when the population is small. The
respondents selected should be representative of the population concerned to
give better responses representative enough for meaningful analysis and
reporting (Kothari, 2004).
Data analysis was performed by checking
for consistency of filled questionnaire to ensure data cleansing, sorting and
coding. Normality, Linearity, Homoscedasticity and Multicollinearity tests were
performed on the data collected in line with the study objective. The objective of the study sought to evaluate
the effect of service scope on market share of selected telecommunication firms
in Nigeria. Study respondents were asked to indicate on a six-point Likert-type
scale, their level of agreement on several statements describing service
quality and its interaction with customer satisfaction. Using this scale, the study sought to know respondents’ levels of
agreement on various statements relating to service scope and market share of selected
telecommunication firms.
The information system (IS) department
personnel of the chosen telecommunication companies received ninety-four (94)
copies of the research questionnaire. Seventy-four (74) questionnaires were
correctly completed and given back to the researcher, yielding an equivalent
response rate of 78.7%. This was a good representation and sufficient to draw
conclusions from the study population. Table 4.1 present results of the
response rate.
Table 2. Response rate
Responses |
Frequency |
Percent (%) |
Completed usable copies of questionnaire |
74 |
78.7% |
Unusable, unreturned and disqualified questionnaires |
20 |
21.3% |
Total |
94 |
100% |
Source: Researcher’s field survey (2019)
Demographics (n = 94)
This section discusses the independent
variables first, then moves on to the dependent variables, providing an
explanation of the descriptive statistical analysis of the respondents'
opinions. For convenience of analysis, the responses were coded using numerical
values on a six-point Likert-type scale. Five (5) for high (H), four (4) for
moderately high (MH), three (3) for moderately low (ML), two (2) for low (L),
and one (1) for very low (VL) were the values assigned. Descriptive statistics
including percentages, means, and standard deviation were used to interpret the
results.
The mean of the responses using a width of
class interval were interpreted as follows: 5.50-6.00 implied very high degree,
4.50-5.49 implied high degree, 3.50-4.49 implied moderately high degree,
2.50-3.49 implied moderately low degree, 1.50-2.49 implied low degree and
0.50-1.49 implied very low degree. A standard deviation of more than one (1)
indicated that the responses were widely distributed or no consensus, and less
than 1 indicated consensus on responses obtained. The summarised responses as presented in the Tables below.
Table 3. Analysis of descriptive
statistics of responses of respondents on service quality
Items |
Very High |
High |
Moderately High |
Moderately Low |
Low |
Very Low |
Mean |
Std. Dev. |
Customer satisfaction |
6.8% |
83.8% |
9.5% |
0.0% |
0.0% |
0.0% |
4.97 |
.405 |
Quality control |
10.8% |
50.0% |
39.2% |
0.0% |
0.0% |
0.0% |
4.72 |
.652 |
Cost of Quality (cost of fixing issues) on the service |
33.8% |
50.0% |
16.2% |
0.0% |
0.0% |
0.0% |
5.18 |
.690 |
Planning for quality on service |
39.2% |
50.0% |
10.8% |
0.0% |
0.0% |
0.0% |
5.28 |
.652 |
Product acceptance |
18.9% |
41.9% |
39.2% |
0.0% |
0.0% |
0.0% |
4.80 |
.740 |
Source: Field survey data (2024)
Table 3 presents respondents’ responses to
service quality. Table 3 shows that 6.8% of the respondents indicated that
customer satisfaction is very high, 84.8% indicated high and 9.5% moderately
high. On the average, the respondents indicated that customer satisfaction is
high with a mean of 4.97 and standard deviation of 0.405. The results further
show that 10.8% of the respondents responded very high to quality control, 50%
indicated high and 39.2% moderately high. On the average, the respondents
indicated that quality control is high with a mean of 4.72 and standard deviation
of 0.652. The results reveal that 33.8% of the respondents indicated that cost
of quality (cost of fixing issues) on the service is very high, 50% indicated
high, 16.2% moderately high. On the average, the respondents indicated that
cost of quality (cost of fixing issues) on the service is high with a mean of
5.18 and standard deviation of 0.690.
The results also indicated that 39.2% of
the respondents responded very high to planning for quality on service, 50%
indicated high, 10.8% moderately high. On the average, the respondents
indicated that planning for quality on service is high with a mean of 5.28 and
standard deviation of 0.652. Finally, the results in the Table shows that 18.9%
of the respondents indicated that Product acceptance is very high, 41.9%
indicated high, 39.2% indicated moderately high. On the average, the
respondents indicated that product acceptance is high with a mean of 4.80 and
standard deviation of 0.740.
The findings of the descriptive statistics of the
variable, customer satisfaction are indicated on Table
4
Table 4. Analysis of descriptive
statistics of responses of respondents on customer satisfaction
Items |
Very High |
High |
Moderately High |
Moderately Low |
Low |
Very Low |
Mean |
Std. Dev. |
Customer acquisition |
18.9% |
67.6% |
13.5% |
0.0% |
0.0% |
0.0% |
5.05 |
.571 |
Customer retention |
13.5% |
33.8% |
51.4% |
1.4% |
0.0% |
0.0% |
4.59 |
.739 |
Customer feedback |
24.3% |
60.8% |
13.5% |
1.4% |
0.0% |
0.0% |
5.08 |
.657 |
Customer attrition |
45.9% |
32.4% |
21.6% |
0.0% |
0.0% |
0.0% |
5.24 |
.791 |
Customer complaints |
17.6% |
43.2% |
37.8% |
1.4% |
0.0% |
0.0% |
4.77 |
.750 |
Source: Field survey data (2024)
Table 4 shows the perceptions of the
participants on customer satisfaction. From the Table, about 18.9% of the
respondents indicated that customer acquisition was very high, 67.6% indicated
high and 13.5% moderately high. On the average, the respondents indicated that
Customer acquisition was high with a mean of 5.05 and standard deviation of
0.571. The results towards customer retention indicated that 13.5% of the
respondents responded very high, 33.8% indicated high, 51.4% indicated
moderately high and 1.4% indicated moderately low. On the average, the
respondents indicated that customer retention was high with a mean of 5.08 and
standard deviation of 0.657.
The results showed that 24.3% of the
respondents indicated that customer feedback was very high, 60.8% indicated
high, 13.5% moderately high and 1.4% indicated moderately low. On the average,
the respondents indicated that customer feedback is high with a mean of 5.08
and standard deviation of 0.657. With regards to customer attrition, 45.9% of
the respondents responded very high, 32.4% indicated high, 21.6% moderately
high. On the average, the respondents indicated that customer attrition was
high with a mean of 5.24 and a standard deviation of 0.791. Furthermore, 17.6%
of the respondents that indicated that customer complaints were very high,
43.2% indicated high, 37.8% indicated moderately high. On the average, the
respondents indicated that customer complaints were high with a mean of 4.77
and a standard deviation of 0.750.
Relating Tables 3 and 4 together, the
descriptive statistics revealed that a larger percentage of the respondents
rated most of the question items of service quality and customer satisfaction
high and have similar pattern of increase with grand mean of 4.99 and 4.95,
respectively. The findings revealed that planning for quality of service, cost
of quality (cost of fixing issues) on the service and customer satisfaction are
highly executed among telecommunication firms as most of the respondents’
perceptions to these items tended towards “high” responses. In addition, the
findings of the study revealed high customer attrition, customer feedback, and
customer acquisition in the sequence. These findings, therefore, suggest that
service quality may or may not affect customer satisfaction of selected
telecommunication firms in Nigeria. This provided answer to the research
question and enabled the researcher to achieve the objective of this study.
Test of research
hypothesis
H01: Service quality has no significant
effect on customer satisfaction of selected telecommunication firms in Nigeria.
To test the hypothesis, linear regression
analysis was used. Data for service quality and customer satisfaction were
established by adding responses of all items for the variables. The resulting
regression coefficients have been used to interpret the direction and magnitude
of the relationship. The βeta coefficients showed the responsiveness of the
dependent variable (customer satisfaction) as a result of unit change in the
independent variable (service quality). The error term ei
captured the variations that the model cannot explain.
Table 5. Regression results
Variables |
B |
Std.
Error |
t |
ρ-value |
R |
R2 |
Constant |
17.130 |
4.028 |
4.253 |
0.000 |
0.256 |
0.203 |
Service risk |
0.515 |
0.064 |
8.059 |
0.000 |
Table 5 presents linear regression results
on the effect of service quality on customer satisfaction of selected
telecommunication firms in Nigeria. The result of the regression analysis
revealed that service quality has a significant positive effect on the customer
satisfaction of selected telecommunication firms in Nigeria (β = 0.515, t =
8.059, p<0.05). The value of t-statistics at 8.059 showed that the model
parameter is statistically significant (p<0.05). Further, the result (Table
3) showed that there was a weak positive relationship between service quality
and customer satisfaction of selected telecommunication firms (R = 0.256). This meant that an increase in service
quality will lead to an increase in customer satisfaction of telecommunication
firms.
From the results, R2 = 0.203, which
indicated that about 20.3% changes in customer satisfaction of the selected
telecommunication firms were explained by their service quality, while the
remaining 79.7% changes in customer satisfaction of selected telecommunication
firms in Nigeria were accounted for by other variables not captured in the
model. This demand for an inquiry through research to find out the other
variables that influence customer satisfaction of telecommunication firms in
Nigeria. The simple regression model explaining the variation in customer
satisfaction due to service quality is thus expressed as follows:
Customer Satisfaction = 17.130 +
0.515Service Quality …...……………….. Eq. 5
From the regression equation above, it was
revealed that holding service quality constant at zero, customer satisfaction
of selected telecommunication firms was at 17.130. The result showed that if
there is an improvement in service quality by one unit in the measurement
scale, customer satisfaction of the selected telecommunication firms is
predicted to change, increase by 0.515 units. With the significant value in the
model standing at 0.000, the level of significance is less than 0.05
(p<0.05). This meant that service quality significantly predicts customer
satisfaction of telecommunication firms. Overall, the result shows that service
quality has a weak positive effect on customer satisfaction of selected
telecommunication firms in Nigeria. Therefore, the null hypothesis (H01) that service quality does not
have any significant effect on customer satisfaction of selected
telecommunication firms in Nigeria is hereby rejected
The specific objective of this study sought to
evaluate the effect of service quality on customer satisfaction of selected
telecommunication firms in Nigeria. The result of the descriptive analysis for
the objective shows that on the average majority of the respondents asserted
customer satisfaction is high when service quality is high in the selected
telecommunication firms in Nigeria, and there was convergence in the responses
of the respondents around the mean. In this study, 83.3% of the respondent claimed
that customer satisfaction in the selected telecommunication firms in Nigeria,
while 50% of the respondents each affirmed high quality control and cost of
quality (cost of fixing issues) on the service. The results also revealed that
67.6% of the respondents asserted Customer acquisition was high in selected
telecommunication firms in Nigeria, however, findings unfolded that only 32.4%
of respondents believed customer attrition was high in the selected
telecommunication firms.
Besides, findings of the hypothesis (H01)
established a positive and statistically significant effect of service quality
on the customer satisfaction in the selected telecommunication firms in
Nigeria. Hence, the result of the descriptive statistics analysis for the
objective and linear regression analysis testing of the hypothesis (H01)
affirmed that service quality has positive and significant effect on customer
satisfaction in the selected telecommunication firms in Nigeria. The findings
of this study were consistent with the research work of
The work of
Overall, current study has found out that
service quality has a weak positive effect on customer satisfaction of selected
telecommunication firms in Nigeria. Based on the findings of this study in
collaboration with the findings from previous studies, the null hypotheses one
(H01), which states that service quality does not have any significant effect
on customer satisfaction of selected telecommunication firms in Nigeria, is
therefore rejected. The empirical study focused on investigating the relationship
that exist between service quality and customer satisfaction of selected
telecommunication firms in Nigeria and formulated a hypothesis that was
analysed by simple linear regression. Result from the test of hypothesis showed
that service quality has significant and positive effect on customer
satisfaction. Therefore, the researcher concluded that service quality has a
positive relationship with customer satisfaction and the more improved the
quality of the products and services from the service, the more satisfied the
customers.
Recommendation and Policy Implementation
The study further revealed that service quality
and customer satisfaction have a positive relationship. This implies that the
more improved the quality the more customer satisfaction experienced. There are
high improvements in customer acquisition and retention while also, the
customers provide many feedbacks and many complaints on the quality of products
and services being rendered. It is, therefore, recommended that the firms
should place more efforts in improving the quality of products and services in
order to improve customer satisfaction and help reduce customer attrition.
Contribution
to Knowledge and suggestion for further studies
Conceptually, the study developed an improved
perspective to customer satisfaction of telecommunication firms in Nigeria
through the influence of service quality during service execution. The study
explained the criticality of service quality to service execution and how it
affects customer satisfaction of these firms. The study revealed that service
quality targets customer satisfaction and are used on services to measure
conform or non-conformance to quality standards. Conformance to quality
standards aids customer satisfaction and buy-again opportunities and overall
competitive advantage. The findings of this study indicated that there are
other dimensions that influenced customer satisfaction apart from service
quality, further research should be conducted to reveal these dimensions and
how they influence customer satisfaction of telecommunication firms in Nigeria.
Conclusion
This study demonstrates that
service quality has a significant impact on customer satisfaction in selected
telecommunication companies in Nigeria. The linear regression analysis reveals
that improvements in service quality, including network coverage, data speed,
and service reliability, directly increase customer satisfaction levels.
Furthermore, findings show that factors such as service audit frequency,
auditor competency, and clear audit reporting play essential roles in ensuring
operational compliance, which in turn enhances customer satisfaction.
The results highlight the
importance for companies to continuously improve the quality of their products
and services to maintain competitiveness, reduce customer attrition, and foster
customer loyalty. Overall, the study confirms that high service quality is key
to achieving and sustaining customer satisfaction in Nigeria’s highly
competitive telecommunication sector. Going forward, companies need to focus
more on staff training, infrastructure upgrades, and better communication with
customers to ensure that the services provided meet customer expectations and
industry standards.
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Copyright holder: Ogunberu Adedayo
Olufemi, Adeyemi Omolade Sunday, Olubiyi Timilehin Olasoji, Binuyo Adekunle
Oluwole, Temi Olajide-Arise (2024) |
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