Abstract

The importance of providing customers with quality services in order to satisfy them and encourage future purchases is well documented in literature. Yet, the cellphone network provider industry of South Africa seems to be riddled with service quality problems. This study aims to determine different generations’ perceived service quality of services and satisfaction levels with services provided by cellphone network service providers, as well as their behavioural intentions towards these providers. The study furthermore examines the correlations between these three constructs and uncovers significant differences between different generations. Data was collected from 2339 respondents by means of a self-administered questionnaire. Young Generation Y consumers perceive the service quality levels and service satisfaction levels of these providers as significantly lower than other generations. This is also true for their behavioural intent. Significant correlations also exist between the generations’ perceived level of service quality they experience, their perceived level of satisfaction with, and their behavioural intent towards providers. This implies that providers should strongly focus their efforts on satisfying the needs, and improving the service satisfaction of young Generation Y consumers in order to retain them in the future. Providers should also vary marketing strategies based upon the differences uncovered between the generations.   Key words: Cellphone network service provider, baby boomer, Generation X, Generation Y, service quality, service satisfaction, behavioural intent  

Highlights

  • The South African cellular industry is the fourth fastest growing cellular market in the world with every third call made being from a cellphone (Mbendi, 2010)

  • Significant correlations exist between the generations’ perceived level of service quality they experience, their perceived level of satisfaction with, and their behavioural intent towards providers. This implies that providers should strongly focus their efforts on satisfying the needs, and improving the service satisfaction of young Generation Y consumers in order to retain them in the future

  • This study provides insight into the views of various generations on their perceptions of the service quality provided by their cellphone network service provider

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Summary

Introduction

The South African cellular industry is the fourth fastest growing cellular market in the world with every third call made being from a cellphone (Mbendi, 2010). Over 80% of South Africa’s population owns a cellphone, with the prepaid packages being preferred over contract packages (SouthAfrica.info, 2008). The competitiveness of this market requires from cellphone network service providers to develop and maintain a competitive advantage through the provision of quality services (Boshoff and du Plessis, 2009). Cellphone network service providers need to understand that providing customers with quality services and satisfying their needs are essential components of their marketing strategy in order to ensure that customers will repurchase from the service provider in future (Saeed et al, 2009).

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