Determinants of Customer Satisfaction in the Telecommunication Industry in Ghana: A Study of MTN Ghana Limited

Eric Oduro,Francis O Boachie-Mensah,Gloria K Q Agyapong

doi:10.5539/ijms.v10n3p101

Eric Oduro, Francis O Boachie-Mensah + Show 1 more

Open Access

https://doi.org/10.5539/ijms.v10n3p101

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Abstract

The study examined the determinants of customer satisfaction in MTN Ghana Limited. The variables of concern were customer expectation, relationship quality, perceived value, perceived quality, and customer loyalty. The American Customer Satisfaction Index (ACSI) model was adapted as the main framework for analyzing customer satisfaction. Data for the study came from a systematic random sample of 377 MTN mobile subscribers, employing questionnaires. Two managers of the mobile network were interviewed on issues related to their CRM systems. Multiple regression analyses were used to examine the relationship between customer expectation, relationship quality, perceived value, perceived (product/service) quality, customer loyalty, and customer satisfaction. The results of the multiple regression indicated that significant positive relationship existed between customer satisfaction and perceived (product/service) quality, relationship quality, and customer loyalty, but not for other variables such as customer expectation, customer complaint, and perceived value. The implications are that MTN Ghana should consider the perceptions of customers on product/service quality, the level of relationship quality and loyalty when managing relationships with customers. The company should put measures in place to build and maintain quality relationships with customers, and also improve the quality of products and services offered to customers. Again, there is the need for management to bridge the gap in their perception of relationship quality and that of customers.

Highlights

In today’s challenging business environment due to increasing competition among firms, changing economic conditions, changing nature of customers’ attitude and behavior, and firms trying hard to satisfy customers through the provision of quality products and services, customer satisfaction is becoming more and more important for the survival of many firms
Building and maintaining relationships with customers and achieving total customer satisfaction are very important in any service delivery organization, especially when competition is very keen in this changing business environment, where customers’ demands keep changing day in and out
Based on the empirical results, customer expectation has no significant relationship with customer satisfaction, and this result confirms that customer expectation has no direct positive effect on customer satisfaction

Summary

Introduction

In today’s challenging business environment due to increasing competition among firms, changing economic conditions, changing nature of customers’ attitude and behavior, and firms trying hard to satisfy customers through the provision of quality products and services, customer satisfaction is becoming more and more important for the survival of many firms. CRM (Relationship quality) is becoming more and more important in this competitive business environment. The whole concept of CRM is that it aids an organization to tailor specific products or services to each particular customer. CRM may be used to create a personalized service or offer that will give each and every customer a sense of being cared for, which, in turn, opens up new marketing opportunities based on the preferences and history of the customer. Satisfaction increases, since CRM increases customer insights, which allows companies to understand their customers better, create improved customer value prepositions and better customer experiences

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