Measurement of Service Quality in Bangladesh Mobile Phone Sector: Issues, Standards and Practices
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Measurement of Service Quality in Bangladesh mobile phone sector: Issues, Standards and Practices by Syeda Rownak Afza A thesis submitted in fulfillment of the requirements for the award of the degree of Doctor of Philosophy Supervisor: Prof. Dr. Mijanur Rahman Department of Marketing Faculty of Business Studies University of Dhaka 2015 i DEDICATION To my loving and caring husband Rezoan, who constantly inspired and helped me to complete this thesis. To my Mother, who always wanted to pursue her unfulfilled dreams through me. ii ABSTRACT Service quality is a very emerging issue in the area of marketing research at present. It is applicable to every sector and organizations profitability highly depend on this. In our country, Mobile telecommunication is playing a vital role to our economy. But, there were hardly any research addressing the issue of service quality in the mobile telecommunication sector particularly in our country. Although, there have been some research done in other countries, linking service quality and customers' satisfaction and continuance intention has neglected in most of the previous research. This study has tried to present an empirical investigation regarding service quality issues and practices in the Bangladesh mobile telecom area. This study also tried to make an association with service quality and customers' perceived value, satisfaction and their continuance intention. Also, an empirical study has been made to identify the net promotion score of the different mobile operators in Bangladesh, which the researcher believes as an unique contribution of this research. To validate the study, this study used a quantitative‐positivist approach as a research paradigm, cross‐sectional design as a survey method for collective quantitative data, Key informant interview and Focus group for collecting qualitative data, convenience sampling as a sampling technique and mainly multivariate analysis ( Exploratory Factor Analysis and Multiple regression analysis) as a data analysis technique. The findings of this study represents some particular service quality parameters that are used as benchmark to measure the service quality of the mobile operators in Bangladesh. A number of factors in service came up, which have a significant association with customers' perceived value, satisfaction and continuance intention. Most importantly, this study found that, even customers perceived service quality is low, they still want to continue the service of their mobile operators due to different switching barriers. Also, the Net Promotion Score of the different Mobile operators are significantly low, even in some cases it shows negative score, which may have a strong effect on the organizations profitability and growth. Theoretically, the study extends service quality research by reframing the concept as a reflective, hierarchical model and framing its impact on satisfaction, continuance intentions in the developing country context like Bangladesh. Practically, for the practitioners and policy makers of various mobile telecom operators in Bangladesh, this study provides a conceptual service quality model for conducting integrated analysis and design of service delivery systems. Overall, in the mobile telecommunication service quality research in Bangladesh, this study makes a significant contribution by identifying the benchmarks and its association with customers' perceived value, satisfaction and continuance intention. iii Key words: Service quality, Perceived value, Customer satisfaction, Continuance Intention, Net Promotion Score, Mobile telecommunication service, Bangladesh. Acronyms: QOS: Quality of Service BTRC: Bangladesh Telecommunication Regulatory Commission KPI: key performance indicator CS KPI: Call Set‐up Success Rate PS KPI: Performance standards SMS: Short message service MMS:Multimedia message service SDCCH: Standalone Dedicated Control Channel GSM: Global System for Mobile Communication GPRS: General Packet Radio System CDMA: Code Division Multiple Access TCH: Traffic Channel. TBF: Telephone Band Filtering PESQ: Perceptual Evaluation of Speech Quality PV= Perceived Value CS= Customers Satisfaction CI= Continuance Intention SERVQUAL= Service quality SERVPERF= Servicer Performance NPS= Net Promoter Score BI= Behavioral Intention iv EFA= Exploratory Factor Analysis ACKNOWLEDGEMENTS First and foremost I praise and acknowledge Allah, the most beneficent and the most merciful, for giving me the strength to complete this thesis. I owe my debt and would like to express deep feelings of gratitude to my teacher and thesis supervisor, Prof. Dr. Mijanur Rahman, Dept. of Marketing, Faculty of Business studies, University of Dhaka. I am also grateful to him for believing in my work, giving his constant support and cooperation. His motivation always helped to boost up my confidence and believe to overcome all the challenges I have faced during my research. I feel myself lucky to have such a mentor to guide and help me throughout this journey. I am thankful to Mr. Mohammad Siddiquee, Lecturer, University of New Brunswick, Saint Jhon, Canada for his immense support. Without his help and assistance it would never be possible for me to access the updated journals and articles related with my research work. Also, I want to thank my friend Mr. Shantu Kumar Ghosh, Assistant Professor, School of Business, BRAC University for his support and cooperation whenever I needed. I am also grateful to Ms. Farhana Sadia, Lecturer, ISRT, University of Dhaka for giving her valuable time and assistance. Whenever I get confused or stuck during my analysis, she helped me with her advice. Further, my sincere thanks to Ms. Roohi Andalib Huda, Lecturer, BRAC University for her sincere efforts in Proof reading this thesis at various stages including the final draft. Finally, my heartiest thanks to my family members, specially my husband Rezoan, my son Farzad, my daughter Faizah and my home manager Rokyea apa for keeping their patience and encouragement, my father‐in‐law, who was always eager to know about the progress of my research work, my mother‐in‐law, who always prayed so that I can finish it up. Without their prayers and support it was almost impossible for me to complete this thesis. v Measurement of Service Quality in Bangladesh mobile phone sector: Issues, Standards and Practices by Syeda Rownak Afza A thesis submitted in fulfillment of the requirements for the award of the degree of Doctor of Philosophy Supervisor: Prof. Dr. Mijanur Rahman Department of Marketing Faculty of Business Studies University of Dhaka 2015 1 ABSTRACT 1. Background of the study : The mobile telecommunication sector is a fast growing service sector in the world economy. In Bangladesh too, especially in urban areas it is large and touches the life of its public in many aspects of their daily lives. The blessings of this technology helps to develop every other service area of our country like education, healthcare, banking, restaurants , retailing, transportation, water supply and many other related areas that facilitate the evolution of a modern society. Telecommunication companies are advancing their technology tremendously. As a result, they face intense competition, including competition from sources that were not previously existing. The quality of these mobile telecommunication services needs to be constantly monitored and upgraded to maximize their positive impacts on individuals and society. Thus service quality measurement is very important as well as a challenge for the mobile telecommunication marketer or operator to stay ahead in terms of competition. It is the service excellence that differentiates them and sets them apart from the rivals. By pursuing service excellence they also continue to build and reinforce an intangible asset: Brand equity. Over time, and with the increased saturation of the market, companies have come to realize their performance can improve by focusing more on retaining customers than constantly acting in a conquest mode. Within service marketing literature, service quality has received a great deal of attention from both academics and practitioners. Organizations operating in service industries should consider service quality a key strategic issue for business success. Since the last two decades, research in marketing has shown that customer behavioral intention can be explored from three attitudinal aspects: customer satisfaction, perceived value and switching barriers. The first stream is often called the ‘‘service quality ‐satisfaction‐ behavioral intentions’’ paradigm (Dabholkar et al. 2000). Comprehensively, the first two streams, customer satisfaction and perceived value, can help induce customers’ positive behavioral intentions and minimize customers’ attraction to other competitors. However, companies can also encourage desirable consumer behavioral intentions by raising switching barriers so that customers are unlikely to change to an alternative provider. Furthermore, when switching barriers are high, customers find it difficult or costly to defect even if they are not very satisfied or when short‐term fluctuations in service quality occur (Ranaweera and Prabhu 2003; Wathne et al. 2001). Based on these motives, The researcher in this study has tried to identify the core customer service quality parameters that are used empirically in the context of Bangladesh & study their impact on customers' perceived value, satisfaction and their continuance intention. The reasons for choosing the mobile telecommunication market