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],

[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 (Olatunde et al., 2020). Furthermore, sustaining consumer satisfaction depends on the dependability of the product coming from executed services, although many Nigerian telecommunications firms have difficulty providing flawless services. Problems such as missed calls, sluggish internet connections, and coverage gaps irritate users. Despite the firms' efforts to increase its infrastructure, these problems still exist. Previous studies indicated that raising the service quality can greatly increase customer satisfaction since satisfied customers are more likely to stay loyal to a business, however, other studies were inconclusive on such (Mirza et al., 2013). In addition, customers' growing demands for corporate accountability make the problem of dissatisfaction worse. This is known as "greenwashing," or making false environmental claims. While several Nigerian telecom companies tout their sustainability initiatives, these claims are undermined by poor product quality occasioned by the service quality at the beginning. Consumers place a high value on genuine and transparent product offerings, underscoring the necessity for the firms to match their marketing to the real quality produced and thus ensure customer satisfaction (Sharma, 2022). Therefore, Nigerian telecommunication firms need to make investments in reliable infrastructure, pay attention to service implementation and open communication to solve these problems. Raising the caliber of the product offering should increase customer satisfaction while lowering churn rates. A client-centric strategy is crucial, where the product's quality coming from executed service will match the expectations of the customer (Alabar et al., 2017).

The researches of  (Awwal, 2014; Mirza et al., 2013; Moore, 2014; Pastuszak et al., 2013) among others studied.  (Awwal, 2014; Mirza et al., 2013; Moore, 2014; Pastuszak et al., 2013) studied service quality, its dimensions and firm performance especially in the construction industry and were able to establish a relationship, however, scholarly reviews revealed that there are few studies on the relationship between service quality and customer satisfaction in the telecommunication industry as identified by (Al-Dubai & Alaghbari, 2018; Pastuszak et al., 2013). Organisational performance in the Nigerian telecommunication industry has been impacted by reduction in customer satisfaction with many of the complaints on poor product and service quality (NCC, 2017), which was the end result of service execution. Service quality challenges in the industry included; improper target setting of products and services quality requirements and standards, inappropriate quality auditing and control on products and services and issues related to substandard equipment (Service Management Institute, 2014; (Bunu et al., 2019). Where these conditions were adhered to, products and services quality met with expectations but where this was not the case, unsatisfactory products and services such as drop calls, unsolicited messages, and loss of service were the result experienced. Further challenges also included drop in active voice and data subscriptions by subscribers (NCC, 2017). The documentation of these quality issues and how they impacted customer satisfaction in the industry have been limited to agencies with few researchers actually documenting them (Rolik, 2017). This study aims to examine service quality and customer satisfaction of selected telecommunication firms in Nigeria.

 

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 (Arokodare et al., 2023; Olowoporoku & Olubiyi, 2023; Olubiyi et al., 2022; Sunday & Olasoji, 2023)  with cross-sectional have adopted this method in their respective studies and found it helpful. The study also used a proportionate sampling technique. The quantitative method was used in this study since it involved the utilisation and analysis of numerical data using specific statistical techniques to support or refute alternative knowledge claims as needed in this study. adapted structured questionnaire was used to gather primary data for the study. The primary population for this study consisted of three (3) selected telecommunication firms in Nigeria. These firms were chosen because they were the market leaders in the industry and had the largest number of subscribers in Nigeria (NCC subscriber data, 2022). The secondary population for the study included ninety-four (94) service employees in the Information System (IS) department of the selected telecommunication firms. This population was less than two hundred (200) and thus the sample size used for this study was total enumeration as suggested by (Singh & Masuku, 2014). The sample size assisted in making inferences on the study population, reveal differences where necessary and help eliminate sampling error on the individuals in the population. Table 1 below presents the sample size distribution among the firms.

 

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

 

Result and Discussion

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 (Calvo-Mora et al., 2015) on contextual and mediation analysis of total quality management (TQM) as a critical success factor in service excellence found that designing a model that supports reliability and validity for implementing TQM as a success factor on services impacts the quality of service deliverables and lead to customer satisfaction. This position was corroborated with (Kumar et al., 2014), who studied the status of quality management practices in manufacturing SMEs and the finding revealed that the adoption of Six Sigma to quality management directly impacts customer satisfaction over time. The study explained that implementation of the process on service deliverables improves the quality, reduces errors and improves customer satisfaction.

The work of (Handley & Gray, 2013) on inter-organisational quality management found a positive relationship between quality and customer satisfaction. The study revealed that quality audit is important to the perception of consumer of products and services. (Alanazi & Bach, 2016) found a positive relationship between quality and customer satisfaction. They found out that product quality, service quality, price quality affect customer satisfaction. Further, Christos, Evangelos, and Fotis (2010) found that the process of quality management and employee involvement influence service quality improvement and enhance customer satisfaction. Likewise, Evangelos and Jiju (2015) reviewed the ISO 9001 quality management practices among organisations and found that continuous improvement process in quality measurement positively influence customer satisfaction and prevent non-conformance, while (Milunovic & Filipovic, 2013)  reviewed the methodology for quality management of services in manufacturing industries and found that customer satisfaction influenced by the quality management in place in the organisation. The study also revealed that the methodology for quality management can be specific to services.

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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Ogunberu Adedayo Olufemi, Adeyemi Omolade Sunday, Olubiyi Timilehin Olasoji, Binuyo Adekunle Oluwole, Temi Olajide-Arise (2024)

 

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