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Group 5 Abdi
Group 5 Abdi
RESEARCH PROPOSAL ON
HARAMAYA TELECOMMUNNICATION.
NAME ID No
1. ABDI WALDEMIKAEL____________________________0186/12
2. ABEL DERESE___________________________________0121/12
3. ABENEZER EJIGU_______________________________0311/12
4. ABRHAM ABERA________________________________0013/12
5. ALIF ZAKIR_____________________________________0210/12
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ACKNOWLEDGEMENT
First, foremost and above all I would like to thank my Lord the Almighty God for helping me to
accomplish this proposal, then I would like to express my sincere gratitude to my advisor Mr.murad for
investing his precious time on providing guidance, comments and suggestions till successful
accomplishment of this proposal.
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ABSTRACT
The aim of the study was to identify the dimensions of mobile telecommunication services in
Haramaya university as well as to develop a model to identify consumer satisfaction. The research was
a non-experimental, explorative, quantitative study. Structured questionnaire was used to collect data
from a sample of participants from the University of Haramaya .The result showed that the majority of
the respondents were satisfied with the overall mobile service offered by their service providers. From
the results, call quality was found to be the most important determinant of consumer satisfaction with
mobile telecommunication services (β = 0.276, t= 5.729, P< 0.001).This was followed by Network
charges (β =0.209, t= 4.344, P< 0.01). In conclusion, the study results suggests that customer riche is a
very particular one, with several unique characteristic with regards to their demographic and
preferences and therefore should be targeted with the kind marketing activities that is likely to interest
them.
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TABLE OF CONTENTS
ACKNOWLEDGEMENT.........................................................................................................................1
ABSTRACT ..............................................................................................................................................2
CAPTER ONE ..........................................................................................................................................1
INTRODUCTION.....................................................................................................................................1
1.1 Background......................................................................................................................................1
1.2 Statement of problem...................................................................................................................1
1.3. Objectives........................................................................................................................................2
1.3.1. General Objective.....................................................................................................................2
1.3.2. Specific Objectives..................................................................................................................2
CHAPTER TWO.......................................................................................................................................3
LITERATURE REVIEW ..........................................................................................................................3
2.1. Service Quality ...............................................................................................................................3
2.2 Proposed Model for Mobile Telecommunication Service Quality ..................................................6
CHAPTER 3..............................................................................................................................................8
DATA AND METHODOLOGY ...............................................................................................................8
3.1 Conceptual Models .......................................................................................................................8
3. 1 Independent variables,.....................................................................................................................8
3.2 Dimensions of service quality ........................................................................................................9
3.3 Independent variables ...................................................................................................................10
3.3.1 Independent variables that characterize the sample ..............................................................10
3.3.2 Independent variables that characterize the use of mobile phones .......................................11
3.4 Data Collection..............................................................................................................................11
3.5 Expected Outcomes........................................................................................................................12
CHAPTER 4 ...........................................................................................................................................14
PLAN OF ACTIVITY.............................................................................................................................14
4.3 Budget ...........................................................................................................................................14
4.4 Expected out comes.......................................................................................................................15
REFERENCES ........................................................................................................................................16
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LIST OF ABBREVATION
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CAPTER ONE
INTRODUCTION
1.1 Background
Mobile telecommunication service industry is on a fast growth path in the country as well as in
Haramaya. Over the last few years, the mobile telecommunication market in Iran has undergone
dramatic changes. This market has followed a transformation from a monopoly to a deregulated, almost
open and free competitive market. At the time of this study, there existed two mobile phone operators
in Haramaya, and the third one was going to start its operation soon. Business Monitor Internationals‟
(BMI) forecast for haramaya, expects the mobile sector expanding by over eight percent in 2012, with
the mobile subscriber base forecast to grow to 80.85 mm by the end of the year. BMI continues to
expect the Haramaya mobile market to cross the one hundred percent penetration threshold in early
2012 (BMI, 2011). Because of this changing dynamics, the Haramaya mobile phone operators face
some significant challenges. First, retaining existing customers in a high churn market has become very
difficult and costly. Second, new customer acquisition is becoming more difficult than ever because
potential subscribers now have more alternatives to choose from according to their perceived
performance and service quality and also mobile phone operators offer charming deals to attract them.
In such a competitive market, it is essential to consider customer satisfaction as a strategic priority.
The purpose behind this dissertation is to evaluate the client satisfaction level of mobile
telecommunications services, that is, to understand what clients value most in this kind of
services and how satisfied are they with the services provided to them.
This problem arises in the sense that the current consumer is becoming better informed, the risk
of changing mobile telecommunications operators is greater and the products and services
available in the market are becoming increasingly similar, making the quality of service, the
main differentiating factor.
The main issues at stake and that will be the focus of research and investigation are the
following:
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► What is the perception of the clients of mobile telecommunications services regarding
► Are there differences in perceived quality in each of the dimensions analyzed regarding
► In the event of items being grouped through a correlation criterion, what are the
1.3. Objectives
1.3.1. General Objective
The main objective the evaluation of the quality of service of mobile telecommunications perceived by
the clients through a quality measurement tool adapted to the respective sector .
There are several specific objectives that will help achieve the main goal, as aforementioned:
► Quantify the perceived quality by mobile telecommunication service users for each item
regarding characterizing factors of the sample and of the use of the service.
telecommunications services.
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CHAPTER TWO
LITERATURE REVIEW
2.1. Service Quality
What is perceived service quality? How must service quality be measured? These two questions have
been extremely discussed by academics over the last three decades and are among the most frequent
topics in management and marketing literature (Martínez and Martínez, 2010). To answer these
questions, several service qualities models have been proposed and widely tested in applied research
(see Martínez and Martínez, 2010; Seth et al., 2005 for a review). Gronroos's (1984) service quality
model was the first attempt, and later other researchers proposed their own conceptualizations.
Gronroos (1984) proposed two distinct service dimensions including technical and functional quality.
Technical quality refers to how well the core service meets the customers‟ expectation. In turn,
functional quality refers to the impact of the interaction process or how the service production and
delivery process itself is perceived (Grönroos, 1984). Functional quality includes a broad range of
service delivery items, such as perceptions of a firm‟s customer care and the manner of service
personnel (Lim et al., 2006).
Later on, based on the disconfirmation paradigm, Parasuraman et al. (1988) developed the
SERVQUAL scale, in which service quality is viewed as the result earned from carrying out a
comparison between expectations and perceptions of performance. Parasuraman et al. (1988) argued
that, regardless of the type of service, consumers evaluate service quality using similar criteria, which
can be grouped into five dimensions: tangibles, reliability, responsiveness, assurance, and empathy
(Parasuraman et al., 1988). Despite SERVQUAL having been applied across a wide range of service
contexts (Leisen and Vance, 2001), it was also extensively criticized and its reliability and validity has
been questioned by many researchers (Buttle, 1996; Carman,
1990; Martínez and Martínez, 2010). SERVQUAL‟s weaknesses led to the development of alternative
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models to measure customer perceptions of service quality. For example, Cronin and Taylor (1992)
developed the SERVPERF model, a method that used the performance alone to measure the perceived
service quality (Cronin and Taylor, 1994). Results from many studies showed that using performance
scores alone rather than expectations minus perceptions, resulted in better reliability and validity
(Carman, 1990; Cronin and Taylor, 1994; Martínez and Martínez, 2010). This is because people always
tend to give high expectation ratings while their perception scores rarely exceed their expectations
(Babakus and Boller, 1992). After that, several researchers began to develop different industry-specific
models to measure service quality, For example, RSQS for measuring retail service quality (Dabholkar
et al., 1996), E-S-Qual for assessing electronic service quality (Parasuraman et al., 2005), Bank-
SQUAL for measuring service quality of banks (Karatepe et al., 2005), eGovQual for measuring e-
government service quality (Papadomichelaki and Mentzas, 2012), ASP-Qual for measuring
application service provider quality (Sigala, 2004), and much more.
In mobile telecommunication literature, service quality has been conceptualized in different ways.
Some of the researchers measured mobile service quality as customers‟ overall evaluation of their
experience with the service provider, and did not consider it as a multidimensional construct (Akroush
et al., 2011; Aydin and Özer, 2005; Edward et al., 2010; Liu et al., 2011; Shin and Kim, 2008; Lai et
al., 2009). Nonetheless, most researchers considered mobile service quality as a multidimensional
concept. However, the number and content of these dimensions are different across studies. Some of
them used and adapted generic models like SERVQUAL to measure mobile service quality (Boohene
and Agyapong, 2011; Leisen and Vance, 2001; Negi, 2009; Wang and Lo, 2002), Moreover,
SERVQUAL or SERVPERF, as very general instruments, are inadequate to measure mobile service
qualities in making satisfactory service-related decisions because the dimensions of service quality
depends on the type of service offered (Babakus and Boller, 1992). For example, Wang and Lo (2002)
employed a modified version of SERVQUAL model to measure service quality of mobile phone
operators in China. They added network quality dimension to the model based on focus group
discussions and expert opinions. According to their findings based on structural equation modeling, the
most important service quality dimensions in predicting customers‟ overall satisfaction was assurance,
followed by reliability and network quality. But they found no evidence to support the influence of
responsiveness and empathy on customer satisfaction (Wang and Lo, 2002).
Similarly, Negi (2009) tried to modify SERVQUAL scale to best fit in the context of mobile
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telecommunication market in Ethiopia. In a pilot study, respondents were asked about additional
service quality dimensions by using open-ended questions. Three additional dimensions were derived
including network quality, compliant handling and service convenience. According to regression
analysis, network quality scored the highest in predicting overall customer satisfaction followed by
reliability, empathy and assurance (Negi, 2009).
Some researches in mobile telecommunication industry extended the traditional definition of service
quality and incorporated aspects particularly relevant to mobile services. For example, Eshghi et al.
(2008) used literature review to identify thirty-two attributes relevant to mobile telecommunication
industry. Six factors were derived using factor analysis including relational quality, competitiveness,
reliability, reputation, customer support and transmission quality. These factors were taken as service
quality dimensions. Based on regression analysis, competitiveness and reliability had the greatest effect
on customer satisfaction followed by relational quality and transmission quality. Also, a regression
analysis was done to identify most important service quality dimensions in predicting repurchase
intension of customers. Results indicated that relational quality and reliability are the most determinant
factors in customers‟ purchase decisions (Eshghi et al., 2008).
In another study on the perceptions of mobile phone operators‟ service quality, Santouridis and
Trivellas (2010) suggested that customers evaluate service quality of their mobile phone operators
based on quality of six dimensions including network, value-added services, mobile devices, customer
service, pricing structure and billing system. This scale was administered to two hundred five
residential non-business mobile phone users in Greece. Their findings show that customer service,
pricing structure and billing system are the service quality dimensions that have the most significant
positive effect on customer satisfaction, which in turn have significant positive impact on customer
loyalty (Santouridis and Trivellas, 2010).
Moreover, Lu et al. (2009) developed a multidimensional and hierarchical model to measure mobile
service quality. They proposed that mobile service quality was composed of three primary dimensions,
which are interaction quality, environment quality and outcome quality. Each primary dimensions
further included sub-dimensions. An instrument was developed and empirically tested using data
collected from four hundred thirty-eight mobile brokerage service users (Lu et al., 2009). Also recently,
Zhao et al. (2012) used this model to assess the effect of mobile telecommunication service quality on
customer satisfaction and the continuance intention of mobile value-added services. Their findings
showed that all three dimensions of service quality have significant and positive effect on customers‟
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satisfaction and continuance intention (Zhao et al., 2012).
Many other researches were reviewed and mobile telecommunication service quality dimensions which
can be evaluated by customers in their decision making have been identified. Table 1 summarizes
identified dimensions along with their respective sources.
Network Quality Wang and Lo (2002); M. K. Kim et al. (2004); H. S. Kim and
Yoon (2004); Kassim (2006); Lim et al. (2006); Eshghi (2008);
Ling and De Run (2009); Negi (2009); Pezeshki, Mousavi and
Grant (2009); Santouridis and Trivellas (2010); Wong (2010);
Gunjan et al. (2011); Gautam (2011); Liang, Ma and Qi (2012)
Value-added M. K. Kim et al. (2004); H. S. Kim and Yoon (2004); Lim et al.
services (2006); Santouridis and Trivellas (2010); Gunjan et al. (2011);
Jahanzeb, Fatima and Khan (2011)
Pricing Plans
M. K. Kim et al. (2004); Lim et al. (2006); Ling and De Run
(2009); Santouridis and Trivellas (2010); Gunjan et al. (2011)
Billing System Lim et al. (2006); Krishnan and Kothari (2008); Pezeshki et al.
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(2009); Santouridis and Trivellas (2010)
Customer Service H. S. Kim and Yoon (2004); M. K. Kim et al. (2004); Lim et al.
(2006); Kassim (2006); Pezeshki et al. (2009); Negi (2009);
Negi and Ketema (2010); Y. E. Kim and Lee (2010); Santouridis
and
Trivellas (2010); Gautam (2011); Gunjan et al. (2011);
Jahanzeb et al. (2011); Khaligh, Miremadi and Aminilari (2012)
Convenience
M. K. Kim et al. (2004); Ling and De Run (2009); Negi (2009);
Liang et al. (2012)
Literature review showed that in mobile telecommunication industry, researchers used different models
with several technical and functional dimensions to measure service quality. However, most of them
agreed that perceptions of mobile operators‟ service quality are of a multidimensional nature. In this
study, based on literature review a multidimensional model has been developed (MS-Qual) that
determines customers‟ perceived service quality in mobile telecommunication industry. Figure 1 shows
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CHAPTER 3
DATA AND METHODOLOGY
In this chapter we intend to make an explanation of the research methodology of that will be used in
this thesis, presenting the models that will be used as analysis tools, the assumptions implicit in the
models, the dependent and independent variables to be used, as well as conducting an analysis on the
methodology of collecting and processing the data on Haramaya Telecommunication center.
3. 1 Independent variables,
We selected a set of eleven variables, which are divided between those that characterize customers and
those that characterize the use of the service provided by network operators. will have the intention to
confirm or not the existence of considerable differences in the perceived quality in each of the
dimensions compared to each one of these variables.
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Moreover, the main instrument that will be used to measure the perceived quality is SERVPERF.
Communication – Service quality check through the existence or not of a good network
coverage and the quality of voice calls. Moreover, the availability of sufficient network operators
stores at the service of the customer in order to facilitate communication. This dimension is
represented in the questionnaire by 3 items.
various formats, as well as advance notice of the situations of changes of tariff. This dimension is
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represented in the questionnaire by 2 items.
Tariff – Adequate value for money services, as well as if the forms of payment are the most
suitable. This dimension is represented in the questionnaire by 2 items.
The questionnaire was used to collect the data used in this dissertation has issues organized by the 9
dimensions, and these appear in the following order: Tangibility; Assurance; Responsiveness;
Reliability; Empathy; Communication; Availability Information; Tariff. Thus, the first 6 questions are
related to the Tangibility dimension and so on and so forth.
To complete the questionnaire, we asked respondents to classify, overall, from 1 to 7, the quality of
services provided by their network operator, where 1 is very poor and 7 corresponds to excellent.
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information available on the PORDATA database – Contemporary Portugal Database (“PORDATA”),
“Households per income groups: IRS Form 1”.
3.3.2 Independent variables that characterize the use of mobile phones
Phone ownership (“Yes”; “No”);
Network operator (“NOS”; “MEO”; “Vodafone”; “Other”) – only the major network operators
have been identified, but there is the possibility of the respondent indicating another network
operator in the event of theirs not being any of the major ones;
Contract time (“Less than three months”; “Between 3 to 6 months”; “Between 6 to 9 months”;
“Between 9 months and 1 year”; “From 1 to 2 years”; “Between 2 to 3 years”; “More than 3
years”; “Does not know”);
Tariff plan (“Prepaid”; “Postpaid”; “Does not know”) – it was decided to join the different
existing tariffs in only two categories;
Service with greater importance (“Voice calls”; “SMS”; “MMS”; “Internet”; “Other. What?”);
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Thus, in order to calculate the sample size, it was considered that the survey population was
infinite due to its large size, for a precision of 5% and a 95% confidence interval. Still according
to the size of the sample with the above-mentioned characteristics are obtained by the following
equation:
, corresponds to the value of the normal distribution for a significance level equal to
From the previously presented equation it is possible to conclude that the sample will have a size of 385
individuals of both sexes, with ages between 10 and 44 years, corresponding this age group to the one
that uses more mobile phones.
Finally, and in order to process the data obtained through the questionnaire, calculations will be
performed and different statistical techniques used, using only the Statistical Package for Social
Sciences (“SPSS”) version 22 for Windows.
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Service quality specifications – service delivery gap (GAP 3): Even with guidelines as to how to
perform a service, the performance with high quality thereof may not be achieved, in the extent
that its capacity will depend substantially on the workers' performance, which cannot always be
standardized.
Service delivery –external communications gap (GAP 4): The communication made by a
company about its services, such as advertising, can affect not only customer expectations
regarding the service provided by the company, but also the perception of customer regarding the
service. Because, if the company creates too high expectations in consumers, the service will have
to meet them, otherwise customers will not be satisfied.
Expected service – perceived service gap (GAP 5): The high- and low-quality judgments made by
consumers are dependent on how they perceive the service that was actually rendered in
accordance with their expectations.
Generally, after doing this paper or proposal we able to identify the problems. If you can identify the
problems solving that problem will be easy. So, the expected outcome for this proposal is solving every
problem by using several techniques.
CHAPTER 4
PLAN OF ACTIVITY
Planning
15 16
Data gathering
17 20
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Data Analysis
21 23
Writing Proposal
24 3
proposal defense
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Writing Report
4.3 Budget
A budget is detail statements outlining estimated project costs that support a sponsored project. So, while
doing this proposal we assigned and used the budget the following tables shows the budget we spent.
Reasons Amount by number or Place cost
repetition
Traveling Twice in a week Bate to haramaya 40*5=200
The above tables show our budget, it includes the reason, places and also its costs to make it clear.
Depending on this budget our proposal.
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What should telecommunication do to solve the problems.
Determining the amount of mobile user based on sample survey.
Make telecommunication ready to give quality services
REFERENCES
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model of customer loyalty in the Jordanian mobile telecommunications market. International
Journal of Mobile Communications, 9(1), 76-101.
Aydin, S., and Özer, G. (2005). The analysis of antecedents of customer loyalty in the Turkish mobile
telecommunication market. European Journal of Marketing, 39(7/8), 910-925.
Babakus, E., and Boller, G. W. (1992). An empirical assessment of the SERVQUAL scale. Journal of
Business Research, 24, 235-268.
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Bagozzi, R. P., and Yi, Y. (1988). On the evaluation of structural equation models. Journal of the
Academy of Marketing Science, 16(1), 74-94.
Churchill, G. A. (1979). A paradigm for developing better measures of marketing constructs. Journal of
Marketing Research, 16, 64-73.
Cristobal, E., Flavián, C., and Guinalíu, M. (2007). Perceived e-service quality (PeSQ): Measurement
validation and effects on consumer satisfaction and web site loyalty. Managing Service Quality,
17(3), 317-340.
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