Nepalese mobile phone market is one of the fast growing businesses with the penetration rate of at least 67.92% for GSM mobile services. Mobile phone providers have also been competing to offer dynamic services to customers. By doing this research, it is expected to offer inputs to enhance customer satisfaction with mobile services in Nepal.
The term ‘customer satisfaction’ has become an emerging issue for academic research as business organizations recognize that customer satisfaction is the only way to win in the given tough competitive business world. The aim of this paper is to measure the antecedents and consequences of overall customer satisfaction with mobile services in Nepal.
This study is probably the first of its kind in Nepal, which uses standard customer satisfaction measures (American customer satisfaction index model, (ACSIM) to examine the customer satisfaction with mobile services. It uses a structured questionnaire to collect the data from 242 young mobile users from two colleges in Nepal. Based on the observation, it is found that the influencing antecedents of customer satisfaction are customer expectation, perceived quality and perceived value. Similarly, it is also found that highly satisfied customers are more likely to repurchase and higher price tolerance to price increases by current mobile services provider or price decreases by rival. The result of this study is more applicable to young adult mobile services market in Nepal rather than to entire mobile subscriber population.
The study reveals that mobile services provider must focus on improving mobile services quality to increase customer satisfaction and customer loyalty. The value of this study is that it uses well known research model to measure customer satisfaction with mobile services in Nepal.
Table of Contents
1. Theoretical Framework
1.1. American Customer Satisfaction Index Model
1.2 Antecedents of Customer Satisfaction
1.3. Consequences of Customer Satisfaction
1.4. Research Questions
2. Research Methodology
2.1. Data Analysis and Results
2.2. Outer or Measurement Model Evaluation
2.3. Goodness-of-fit indexes
2.4. Inner Model Specification
2.5. Discussion and Conclusions
2.6. Limitations and Directions for Future Research
Study Objectives and Core Topics
The primary objective of this study is to measure the dominant antecedents and consequences of overall customer satisfaction within the Nepalese mobile phone sector. By applying the American Customer Satisfaction Index (ACSI) model, the research investigates the behavioral patterns of young adult mobile users in Nepal, focusing on how factors like service quality and value influence loyalty and satisfaction in a competitive market environment.
- Application of the American Customer Satisfaction Index (ACSI) model in a developing market context.
- Identification of key antecedents: customer expectation, perceived quality, and perceived value.
- Examination of consequences regarding customer satisfaction, including repurchase likelihood and price tolerance.
- Evaluation of customer loyalty through the lens of switching barriers in the telecommunications industry.
- Methodological implementation using Structural Equation Modeling (SEM) and Partial Least Squares (PLS) path analysis.
Excerpt from the Book
Customer expectation (CE)
The customer expectation (CE) can be termed as the customers’ awareness about the quality that can be obtained from the product or service. CE is the result of consumption experience because consumption gives an idea about different qualities of product or service which might not be salient at the moment of purchase (Selnes, 1993:20). However, Fornell et al. (1996:9) argued that CE comprises customer’s forecast about the ability of supplier to offer the desired quality in the days to come in addition to customers’ reflection about previous consumption experience including non-experiential information obtained through the advertisement, colleagues’ word of mouth. Thus, CE is not only concerned about long-term relationship between customer and supplier but also critical determinant of overall customer satisfaction (Fornell et al.,1996:9)
Summary of Chapters
1. Theoretical Framework: This chapter defines the ACSI model, exploring the antecedents and consequences of customer satisfaction while establishing the research hypotheses based on existing marketing theory.
2. Research Methodology: This section details the data collection process, sampling design, and the use of Partial Least Squares (PLS) path modeling to validate the measurement and structural models used in the study.
Keywords
Customer satisfaction, Mobile services, Nepal, Customer satisfaction index, American customer satisfaction index, Perceived quality, Perceived value, Customer loyalty, Repurchase likelihood, Price tolerance, Structural equation modeling, Consumer behavior, Telecommunications, Emerging markets, Service quality
Frequently Asked Questions
What is the primary focus of this research?
The study focuses on evaluating customer satisfaction in the Nepalese mobile phone sector using the American Customer Satisfaction Index (ACSI) model to understand consumer behavior and provider performance.
Which specific variables act as antecedents to customer satisfaction in this study?
The core antecedents identified and tested are customer expectation, perceived quality, and perceived value.
What is the main research objective?
The goal is to determine the impact of quality and expectation on customer satisfaction and subsequently how satisfaction drives loyalty, specifically repurchase likelihood and price tolerance.
Which research methodology was utilized?
The study employs a quantitative approach using a structured questionnaire, analyzed through Structural Equation Modeling (SEM) and Partial Least Squares (PLS) path modeling.
What does the main body of the paper cover?
The body covers the theoretical model, the hypotheses, data collection from 242 university students, and a detailed statistical validation of the measurement model and path coefficients.
What are the primary keywords characterizing the work?
Key terms include Customer satisfaction, Mobile services, Nepal, ACSI model, Perceived quality, and Customer loyalty.
How is "Customer Loyalty" operationalized in the context of this study?
Loyalty is measured through two constructs: repurchase likelihood and price tolerance, while also acknowledging the presence of switching barriers like economic and psychological factors.
What were the findings regarding the relationship between customer satisfaction and complaints?
Surprisingly, the study found no significant negative relationship between customer satisfaction and complaints, suggesting that the existing complaint-handling systems might not be effectively linked to customer satisfaction metrics.
- Quote paper
- Kaji Bahadur Dahal (Author), 2014, An application of the American Customer Satisfaction Index Model (ACSIM) in the Nepalese Mobile Phone Sector, Munich, GRIN Verlag, https://www.grin.com/document/317801
