Today’s business world is completely based on customers’ needs, wants and demands. Most business organizations are now focusing on customer satisfaction to attain their goals and objectives.
Their all efforts are to increase the value of customers and therefore growth and development of the business. Again the increasing level of competition compels the businesses to focus on the satisfaction of the customers toward their product or services.The purpose of our study is to measure the level of satisfaction of customers on internet service and to develop an effective way to increase it. To do it, we developed a questionnaire based on some variables.
The findings of our study will help the internet service providers to take necessary steps in increasing customer’s satisfaction and building a profitable relationship with customers. Keywords: Customer Satisfaction, customers’ Expectation, Internet Service in Bangladesh etc. IntroductionNow a days, building strong customer relationship is very important to capture the value from customers and this is the ultimate target of all marketing activities taken by the organizations.
But this strong customer relationship highly depends on customer satisfaction. So the organizations are now trying to define and evaluate the customer satisfaction. Customer satisfaction is a qualitative measure of a company’s performance and in some cases qualitative variables add more value than quantitative variables.In a competitive marketplace, where businesses compete for retaining customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of marketing strategy.
The study of customer satisfaction helps an organization to develop products and services that satisfy the expectation of customers. Our study measures the expectation and satisfaction of the customers in the internet service providing industry. We mainly tried to find out their attitudes and perceptions on internet services and also the deviation (if any) between the expectation and atisfaction of the customers. Rationale of the Study As the world has entered into the age of information & technology, the demand for information is increasing in Bangladesh day by day. So the demand for internet service has also went up. At first, the T&T was the only internet service provider in Bangladesh.
But now, many ISPs are providing internet to the customers by their broadband and wireless services. In recent days, it has been found that the internet service providers are strongly competing with each other to capture customers as well as retain the existing customers.But it must be confessed that in case of competition, the customer retention is the only key for survival which can only be obtained by proper customer satisfaction. In fact, customers satisfaction depends on several variables.
If all the variables are fulfilled, the customer is highly satisfied. But if the variables are poorly fulfilled the customers are dissatisfied. So to attain customers’ satisfaction, the service provider must always be concerned and sensitive about the customers’ needs, wants, demands and expectations. Here this study makes such kind of analysis on internet service provided in Bangladesh.
Customer Satisfaction Defined Customer satisfaction is the extent to which a product’s perceived performance matches a customer’s expectation (Philip Kotler). In a broad definition, according to World Trade Organization (1985), “Customer Satisfaction is the psychological concept that involves the feeling of well-being and pleasure that results from obtaining what one hopes for and expects from an appealing product or service. ” Customer satisfaction depends on the product’s perceived performance relative to a buyer’s expectation. If the product’s performance falls short of expectations, the customer is dissatisfied.If the performance matches expectations, the customer is satisfied.
If the performance exceeds expectation, the customer is highly satisfied or delighted. Literature Review In a study titled Consumer Satisfaction for Internet Service Providers: An Analysis of Underlying Processes by Sunil Erevelles, Shuba Srinivasan and Steven Rangel (2003), they measured customer satisfaction by using different satisfaction models, including the expectations-disconfirmation model, the attribution model, and an affective model. The study was based on the internet service providers of United States of America.In this study, results indicate that the satisfaction levels of ISP consumers are generally relatively low, despite the fact that consumer expectations of ISPs are also low, reflecting “mediocrity” in the marketplace.
It was also found that service providers that pay attention to affective factors and to building “relationships” with their customers will have a competitive advantage in the marketplace of the future. A study was made by Uchenna Cyril Eze, Tan Khong Sin, Hishamuddin bin Ismail and Poong Yew Siang in ISPs’ Service Quality and Customer Satisfaction in the Southern Region of Malaysia (2008).The study examines the influence of Malaysian ISPs’ service quality on customer satisfaction. It was found that the overall satisfaction low and the Government agencies and ISPs’ in Malaysia can work closely to ensure strong competition among ISPs, which could help enhance service quality and customer satisfaction. Objectives of the Study The objectives of the study have been summarized as follows: •To measure the level of customer satisfaction of internet service users offered by different internet service providers.
To understand the customers’ expectations from the internet service providers. •To identify different types of complaints. •To suggest some recommendations which may help the internet service providers to retain the customers’ loyalty and build a profitable customer relationship.
Methodology This study is based on primary data. Primary data is collected through a questionnaire survey using five point likert scale. We also used open ended question as well as multiple choice questions in our questionnaire to collect data from the respondent.
As we used five point likert scale, 3 is considered as the test value which indicates any value above 3 will show that consumers are satisfied. The total sample size of the study was 57 respondent. The variables that are used to measure the customer satisfaction includes: •Service attributes (Internet speed, uninterrupted service, availability of connection, operator’s efficiency) •Service price (monthly charge, connection charge, price affordability) •Promotional activities ( satisfaction level of promotional activities, attractiveness of advertisement, offering proper packages) Analysis and FindingsThe use of internet is being increased day by day. Many internet service providers are trying to satisfy this increasing demand by their different qualities and performance. In this study, an attempt to determine the satisfaction level of the customers was made over the performance of the internet service providers of Bangladesh. There are many internet service providers in our country. But in this study, it has been found that the majority of the customers use the internet service provided by the Grameenphone (Annexture-1).
It has also been found that many of the customers cannot become satisfied with the service provided by their internet service providers. Therefore they frequently change their internet service providers. Slow speed and high monthly charges are the main dissatisfactory points made by the customers. So the service providers are constantly trying to make the monthly charges reasonable by improving their service quality.
They are also trying to attract new customers by offering different packages. Table 1: Customer Satisfaction on Service AttributesTest Value=3 One Sample StatisticsNMeanStd.Dev. MeanStd. Error MeantdfSig(2-tailed)Mean Diff. 95% Confidence Interval of the Difference LowerUpper Internet Speed572. 931.
116. 148-. 47556. 637-. 070-.
37. 23 Uninterrupted Service572. 56. 964. 128-3. 43556.
001-. 439-. 69-. 18 Connection Access573. 40. 904. 1203. 37256.
001. 404. 16. 64 Service Providers’ Efficiency573. 021. 044. 138. 12756.
899. 018-. 26. 29 However it has been found that customers are fairly satisfied with the service providers’ efficiency but they are not satisfied with uninterrupted service. Connection is often hampered and the internet speed is significantly low.Grameenphone and Citycell are very much efficient in solving customers’ problem, but other service providers are not so much efficient. In other case, it has also been found that majority of the customers who want to switch their current service provider to other, are showing their strong interest to use Banglalion internet connection (Annexture-4).
Table 2: Customer Satisfaction on priceTest Value=3 One Sample StatisticsNMeanStd. Dev. MeanStd.
Error MeantdfSig(2-tailed)Mean Diff. 95% Confidence Interval of the Difference LowerUpper Monthly Charge572. 84. 960. 127-1.
24256. 219-. 58-. 41. 10 Connection Charge572. 791. 031. 136-1.
54256. 129-. 211-. 48. 06 Affordability572. 67. 951.
126-2. 64656. 011-. 333-. 59-. 08 Different service providers charge different charges for their connection. But overall customers are not satisfied with the charges charged by all the internet service providers. It has also been found that internet service is not affordable for many people.
Table 3: Customer Satisfaction on Promotional ActivitiesTest Value=3 One Sample StatisticsNMeanStd. Dev. MeanStd. Error MeantdfSig(2-tailed)Mean Diff.
95% Confidence Interval of the DifferenceLowerUpper Promotional Activities572. 861. 060. 140-1. 00056.
322-. 140-. 42. 14 Attractive Advertisement573. 191. 093. 1451.
33356. 188. 193-. 10. 48 Package for Customers572. 86. 895. 119-1.
18456. 242-. 140-. 38. 10 Different service providers are doing different promotional activities for the customers. But it has been found in this study that customers are not satisfied with their promotional activities. Many of the customers believe that their advertisements are very attractive for new customers specially in case of Grameenphone, Citycell and Banglalion .But majority of the customers think that they are not offering proper packages to them which is predominant in the broadband service providers.
Conclusion As providing internet service to the customers is a growing sector and a potential source of profit, organizations are trying their best to retain their existing customers as well as collecting new ones. To measure the organizations’ success in providing the internet service, customers’ satisfaction plays the key role. Retaining existing customers than collecting new is much more revenue generating and cost beneficial.That is why organizations are increasingly focusing on retaining the existing customers by improving the quality of service. Organization are focusing on the customers’ satisfaction so that they can build customer loyalty therefore a profitable with the customers. In this study, an attempt was made to measure the level of customers’ satisfaction on the internet service providers in Bangladesh so that the service providers can understand their position in the marketplace and take necessary steps.
Based on our analysis and findings, we are recommending the followings: •Internet speed needs to be increased. Uninterrupted service must be ensured. •Monthly charge and connection charge must be reduced. •Proper and improved package to the customers must be ensured.
•Proper training must be given to employees so that they can efficiently deal with the customers’ problems. Based on this study, it has been found that overall customers are not satisfied with the service provided by the internet service providers in Bangladesh. For this reason, customers are frequently changing their service provider. The quality of the service varies from one provider to other.So they must give proper emphasis on improving their product attributes, quality and price to attract new customers and create a long term profitable relationship with the customers.