A COMPARATIVE ANALYSIS OF CUSTOMER SATISFACTION

International Journal of Information Technology and Business Management 29

th May 2014. Vol.25 No.1

© 2012 – 2014 JITBM & ARF. All rights reserved

ISSN 2304-0777 www.jitbm.com

79

A COMPARATIVE ANALYSIS OF CUSTOMER SATISFACTION

RATINGS OF TELCO PRODUCTS AND SERVICES AMONG UDS

STUDENTS IN GHANA

Dr. Gordon Terkpeh Sabutey1, Moses Dumayiri

2 and Dr. A. A. Saah

3

1Head of Department & Lecturer, Procurement and Marketing, School of Business and Law, University for

Development Studies, Wa Campus, Ghana / Adjunct Lecturer, Institute of Distance Learning, Kwame Nkrumah

University of Science and Technology, Kumasi, Ghana. 2Assistant Lecturer, Department of Banking and Finance, School of Business and Law, University for Development

Studies, Wa Campus, Ghana 3Research Fellow & Head of Department, Centre for E-Learning Technologies, Institute of Distance Learning,

Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, Ghana.

[email protected]

Abstract

This study seeks to assess overall customer satisfaction and loyalty as well as sustainability of products and service

quality delivered by Mobile Telecommunication Network and Vodafone to students of University for Development

Studies. The problem of this study was whether customers are satisfied with Telco service delivery in Ghana.

Specifically, this study sets out to figure out various Telco products and services offered to customers, examine the

sustainability of the company’s products and services and to look at the marketing strategies and mechanisms put in

place to satisfy and maintain customers. The main research designs used for the study were survey and case study. A

Structured questionnaire was used to collect data from hundred (100) individual subscribers selected from the two

Telecom groups via cluster and simple random sampling procedures. Descriptive statistics and one way Analysis of

Variance were used for the data analysis. The findings indicated that irrespective of mobile telecom network on

University for Development Studies Tamale Campus, customer satisfaction was low; neither equal to nor better than

desire and expectation of customers. Overall Customer Satisfaction ratings among subscribers of Mobile

Telecommunication Network in University for Development Studies significantly differ and that relatively, customers

of Mobile Telecommunication Network rated their satisfaction with service quality higher than those of Vodafone.

The management of Mobile Telecommunication Network and Vodafone would need to develop strategies to deal

with the customer dissatisfaction. The research contributes to the body of knowledge in the area of Customer

Satisfaction in the Ghana’s Telco groups and provides important managerial implications.

Keywords: Comparative Analysis, Customer Satisfaction Ratings, ANOVA, UDS Students

1.0 INTRODUCTION

Historically, state-owned incumbent operators

provided telecommunication services on a monopoly

basis in most markets in the past.

Telecommunications operators were treated as part of

public administration along with postal services and

licenses were not considered as necessary. In many

cases licenses for incumbent telecommunications

operators were prepared as part of the privatization

process [9]. However, in recent times, many

telecommunication networks operate in Ghana;

among them are Vodafone, Tigo, MTN, Airtel,

Kasapa and Glo. Mobile telecommunication service

http://www.jitbm.com/

mailto:[email protected]





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provision is increasingly becoming a lucrative

business venture, making competition very keen.

MTN is the market leader in the increasingly

competitive mobile telecommunications industry in

Ghana followed by Vodafone.

The Gaps or Problem that called for this study were

clearly identified as the fact that customers mostly

complain of dissatisfaction among Telco Groups. It is

often not uncommon among subscribers complaining

of unsatisfactory services making them indifferent

regarding which network to use leading to multi-SIM

card usage. This has culminated to multi-SIM card

usage by subscribers on the premise that any of the

networks can “disappoint at any time.” As leading

service providers in Ghana, with MTN subscriber

base hitting 10 million about 54% in 2010 of the

whole market share while that of Vodafone was

about 4.2 million, we cannot afford to ignore them in

matters regarding national development since

communication is a vital tool in the development of

nations.

In views of the above problem, the research sought to

undertake a comparative study to assess the state of

customer satisfaction with both MTN and Vodafone

products and services. Specifically, the objectives for

study seeks to: identify various products and services

MTN and Vodafone offer to their customers; identify

both MTN and Vodafone customers most preferred

product or service; to discover and analyse the

reasons for the use of multiple sim card, examine the

extent of subscribers satisfaction and loyalty with

both MTN and Vodafone products and services;

examine the sustainability of the companies’ products

and services; and examine the marketing strategies

and mechanisms put in place to satisfy and maintain

customers so as to recommend possible solutions to

address and minimize these gaps, enhance business

operations among Telco Groups and provide

literature to promote teaching and learning in schools

and colleges across the globe.

In order to achieve these objectives, the study was

structured on the following questions: What products

and services do MTN and Vodafone provide to its

customers? Which product or service is the most

preferred choice among MTN and Vodafone

customers? How satisfied and loyal are the

subscribers to MTN and Vodafone products and

services? How sustainable are the products and

services MTN and Vodafone provide to its

customers? What are the marketing strategies and

mechanisms put in place to satisfy and maintain

customers.

The study is important in many ways to marketing

practitioners, policy makers and customers. To

management of mobile telecom networks, this

research will become a document that can serve as a

guide for corporate service to improve on its services.

This study will provide a more reliable perspective

for evaluating the level of their customer satisfaction

with the services they deliver. It will also serve as an

invaluable source of information that brings to light

the switching intention of their customers. It will

uncover dimensions of service quality that customers

consider as important as well as customers’ intentions

to switch to networks of their competitors and

provide support for management strategic decisions

in several critical areas of operation as well as

creating and delivering customer value, achieving

customer satisfaction and loyalty and building long

term relationship with profitable customers. To

policy makers like government agencies such as

National Communication Authority and ministry of

communication, the findings of this study will

provide an insight into a more reliable guide to

monitoring the impact of Telco Groups.

2.0 THEORETICAL FRAMEWORK

The following provide the theoretical and conceptual

framework for the study:

2.1 Customers satisfaction in mobile Telecom

networks in Ghana

The state of customer satisfaction with service

delivery is not clear as there is scanty documentation

of the issue. According to a discussion paper on

telecommunication development and investment in

Ghana [4], the authors noted that the goals set by the

government have only partly been met - especially

with respect to development in the rural areas – and

quality of service is still low. There is therefore, a

wide spread dissatisfaction with the general telecom

development in Ghana among users and decision

makers.






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2.2 Customer satisfaction and Behaviour intention

Customer satisfaction (CS) impacts the behavior of

customers in a number of ways. First, CS is found to

be a key determinant of customer detention [17].

Again, according to [14] CS is regarded as a

necessary antecedent of customer loyalty, which in

turn drives profitability and performance. It must be

pointed out that, customer loyalty and retention are

not always attributable to customer satisfaction. It is

because a customer may not be satisfied with the

service/product but may find it difficult to switch to a

competitor because of the circumstances he/she is

faced with. This is most common in most services

context. For example, with mobile telecom service a

customer may be reluctant to change his phone

number because he has given it to a number of

persons in his business or social life. Such a customer

may be dissatisfied but may be compelled to stay

loyal.

2.3 Disconfirmation models

Disconfirmation models are models that suggest that

customer satisfaction/dissatisfaction is the disparity

that exist between the performance of a

product/service and some cognitive or emotional

standards of the customer. [12] was the first to

propound and develop the expectancy

disconfirmation theory. The theory has been tested

and confirmed in several studies [15]. According to

expectation disconfirmation theory, customers after

consuming a product/service compare their

perception of product/service performance against

their expectation before the service encounter. When

outcome or perceived performance is equal to

expectation, confirmation occurs. Negative

disconfirmation occurs when perceived performance

of product/service is less than expected. Customer

satisfaction occurs by confirmation of consumer

expectation and dissatisfaction is caused by

disconfirmation of consumer expectations.

Within the disconfirmation school of thought, more

recent researches revealed that desire instead of

expectation in comparison with perceived

performance should be used in determining customer

satisfaction [15]. Therefore, desire disconfirmation

has been suggested as a better substitute. Desire and

expectation are both cognitive standards and it is not

clear which one provides a better explanation of CS.

[6] propose in an empirical justified study, a

contingency theory that incorporates both expectation

and desire disconfirmation. They conclude that both

desire and expectation simultaneously affect overall

customer satisfaction (OCS). This view was also

supported by [3].

2.4 Integrated marketing communication (IMC)

Integrated marketing communications (IMC) is a

process for managing customer relationships that

drive brand value primarily through communication

efforts [13]. Such efforts often include cross-

functional processes that create and nourish

profitable relationships with customers and other

stake-holders by strategically controlling or

influencing all messages sent to these groups and

encouraging data-driven, purposeful dialog with

them. IMC includes the coordination and integration

of all marketing communication tools, avenues, and

sources within a company into a seamless program in

order to maximize the impact on end users at a

minimal cost [1]. This integration affects all firms’

business-to-business, marketing channel, customer-

focused, and internally directed communications [7]

[5].

Promotion is one element of marketing mix

components or tools embraced by businesses. This

element has its own tools that include advertising,

sales promotion etc. For example, MTN promotes

phones with free airtime and personal selling

activities, sim cards, modems etc. It also includes

internet or online and offline marketing. Integration

of all these promotional tools, along with other

components of marketing mix, is a way to gain an

edge over a competitor. Online marketing channels

include any e-marketing campaigns or programs on

search engines including email, internet radio, and

internet TV. Offline marketing channels are

traditional print (newspaper, magazine), mail order,

public relations, industrial relations, billboard,

traditional radio, and television. A company develops

its integrated marketing communication programmer

using all the elements of the marketing mix (product,

price, place, and promotion). Integrated marketing

communications plans are vital to achieving success

[2].

2.4.1 IMC components

Integrated marketing communication tools include:

advertising management, advertising design:






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theoretical frameworks and types of appeals;

advertising design: message strategies and

executional frameworks; advertising media selection.

Promotional Tools also comprise trade promotions,

consumer promotions, personal selling, database

marketing, and customer relations management;

public relations and sponsorship programs, whereas

integration tools utilizes internet Marketing [6].

2.5 Marketing mix components (Variables)

The Internet has changed the way business is done in

the current world. The variables of segmentation,

targeting and positioning are addressed differently.

The way new products and services are marketed

have changed even though the aim of business in

bringing economic and social values remain

unchanged. Indeed, the bottom line of increasing

revenue and profit are still the same. Marketing was

once seen as a one way where firms broadcast their

offerings and value proposition. Marketing efforts

incorporate the "marketing mix, i.e. tools or

variables".

There are 7 Marketing Ps or tools the business

employs to augment its operations. These are:

Product, price, place, promotion, people, processes

and physical evidence. Businesses are to understand

what the consumer's wants and needs are. The

product characteristics have to match the specifics of

what someone wants to buy. Hence, the concept to be

noted is consumer, but not product because the taste

and preferences are important. Price (Cost to

Consumer) assists the business to understand the

consumer's cost to satisfy the want or need. Place

(Convenience) is the buying experience that relates to

delivery mechanism. Convenience may include

aspects of the physical or virtual location, access

ease, transaction service time, and hours of

availability. Moreover, promotion (communication)

is the mechanism put in place to make

communication effective to attract customers or

consumers as well as augment business or services

operations.

The other three Ps such as people, processes and

physical evidence is a marketing strategy tool that

expands the number of controllable variables from

the four [4] originally mixed model to seven [7]. The

traditional marketing mix model was primarily

directed and useful for tangible products, for

example, in the case of MTN, black berry product,

modem, and promotion phones. The 7Ps model is

more useful for services industries of which Telco

groups are not exclusive and arguably also for

knowledge-intensive environment. People directly or

indirectly involve in the consumption of a service are

an important part of the extended marketing mix.

Knowledgeable workers, employees, management

and other consumers often add significant value to

the total product or service offered. Process is a flow

of activities by which services are consumed. The

MTN, Vodafone, etc. follow a strategic process to get

its products and services consumed by its subscribers

through the marketing mix components. Also,

Physical Evidence is the ability and environment in

which the service is delivered, both tangible goods

that help to communicate and perform the services

(e.g. MTN internet service) and intangible experience

of existing customers and the ability of the business

to relay that customer satisfaction to potential

customers [2] [16].

2.6 Relationship marketing

This term was first defined as a form of marketing

developed from direct response marketing campaigns

which emphasizes customer retention and

satisfaction, rather than a dominant focus on sales

transactions. According to [8], [11] suggest that there

are four distinct types of marketing: Transactional

marketing which talks about exchange of values

between two parties; Database marketing which talks

about market transaction and information exchange,

interaction marketing which talks about face-to-face

interaction between customers and representatives of

the supplier; and finally, net-work marketing also

talks about a marketing or sales personality creating

mutual interest and strong relationship among

stakeholders, for example, customers, suppliers,

insurance companies and advertisers.

As a practice, relationship marketing recognizes the

long term value of customer relationships and

extends communication beyond intrusive advertising

and sales promotional messages. The overall goals of

relationship marketing are to find, attract and win

new clients, nurture and retain those the company

already has, entice former clients back into the fold,

and reduce the cost of marketing and client service as

practiced by Telco Groups. Relationship marketing

nowadays, denotes a company-wide business strategy

embracing all client-facing departments like

telecommunication customer care unit and marketing






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department and even beyond. When an

implementation is effective; people, processes, and

technologies including the other components of the

marketing mix work in synergy to increase

profitability, and reduce operational costs.

3.0 MATERIALS AND METHODS

3.1 Research design and study population

[10] Indicated clearly that the research design serves

as a framework or blueprint for conducting marketing

or business research. It specifies the details of the

procedures necessary for obtaining the information

needed to structure or solve research problems. This

study therefore, employed the qualitative and

quantitative approach to conduct the research.

Specifically, the case study and the survey designs

were used. The target population in this study was

made up of students of University for Development

Studies, 2010/2011 academic year admitted. Seven

thousand and twenty eight (7,028) fresh university

students were enrolled to pursue various academic

programmes both degree and diploma. In this

research the accessible population was made up of

students of the UDS on Tamale campus. The UDS

operates with four (4) campuses in Tamale,

Nyanpkala, Navrongo in Upper East Region and Wa

in the Upper West Region. The campuses are similar

in character so the study obtained valid and reliable

results with a degree of true reflection on all students

in the UDS.

3.2 Sample size and sampling techniques

A sample of 100 respondents was selected for the

study. A total of 50 male and female students each

were sampled from UDS, Tamale campus. At least

each faculty was fairly represented. This was possible

through cluster, simple random and purposive

sampling techniques. For purposes of gathering

reliable and representative data, every female and

male student in each category had an equal chance of

being selected.

3.3 Data processing and analysis

The Raw data from the field were coded and entered

into the SPSS spread sheet where appropriate

transformation and processing was done. Data was

analyzed using descriptive statistics and one way

Analysis of Variance (ANOVA).

4.0 EMPIRICAL RESULTS AND

DISCUSSIONS

4.1 Socio-Demographic Characteristics of

respondents

The socio-demographic variables considered in this

study include age, gender and marital status of the

respondents.

4.1.1 Distribution of the respondents by age

In respect of the respondents age, Table 1 shows that

majority (73%) of the of the respondents are found

within the age cohort of 21-30 years while the

remaining 12%,10%, 3% and 2% fall within the age

range of under 20 years, 21-30years, 31-40years, 41-

50 and 50+, respectively. This age distribution clearly

depicts the youthful nature of the students. Young

people participate in different activities which require

them to use Product and Services offered by the

Telco groups.

4.1.2 Distribution of the respondents by Gender

The distribution analysis of the respondents by

gender shows that 32.0% of the respondents were

males and 68.0% were females. This gave an idea

that both males and females on UDS campus

consume products and services accessible from MTN

and Vodafone as indicated in the Table 1.

4.1.3 Distribution of the respondents by marital

status

The survey conducted on MTN and Vodafone cell’s

customers on UDS campus indicated that 12.0% of

the respondents were married while 86.0% were

singles. Only 2% of the respondents divorced.

Irrespective of marital status and age, most people

require products and services from

telecommunication networks like MTN and

Vodafone.






84

Table 1. Socio-demographic characteristics of Respondents

Variable category Frequency Percentage

Age of Subscribers

Under 20 12 12.0

21-30

31-40

41-50

51+

73

10

3

2

73.0

10.0

3.0

2

Total 100 100.0

Gender

Male 32 32.0

Female 68 68.0

Total 100 100.0

Marital Status

Married 12 12.0

Single 86 86.0

Divorced 2 2.0

Total 100 100.0

Source: Field Survey, 2013

4.2 Products and services MTN and Vodafone

provide to customers

To assess the products and services MTN and

Vodafone provide to customers, the researchers

sought the views of the major players in the industry

in order to have a comprehensive view on the matter.

4.2.1Telecommunication networks

All respondents in this research subscribed to at least

one of the telecommunication networks in Ghana.

The survey conducted revealed that 58% were MTN

subscribers who also use an additional network,

while 30% of Vodafone subscribers also use two

Sims. Interestingly, only 4% of the respondents use

Tigo and 8% use Airtel, depicting low patronage of

Tigo and Airtel services on campus. Majority (90%)

of the respondents used at least one of the networks

well over three years, while 10% subscribed to a

network within the last three years. This means that

the respondents have had an experience of using one

of the networks for a long period of time. This means

that the customers are loyal to their network

providers.

4.2.2 Double SIM usage

In respect of double SIM use, the research revealed

that out of 90% of the respondents who used cell

phone for at least three years 62% confirmed that

services rendered by a network they preferred have

been good while 28% thought otherwise. However, a

myriad of reasons were given by the respondents for

using more than one SIM. From Fig 1, a vast

majority (42%) of the subscribers claimed that

services rendered by the service providers are

unreliable and therefore, they needed an alternative

network to support what they already had. Ten (10%)

of the respondents claimed their friends and relatives

were using a network different from what they had.

To bridge the communication gap they added a SIM

to make communication much easier. Interestingly,

2% double SIM user also claimed that each of the

SIMs is used for a particular purpose. The use of

multiple networks by customers is an indication that

no particular network provider can claim monopoly

of the market. So network providers should improve

their service reliability in order to ensure customer

retention.






85

Fig.1. Subscribers reasons for using more than one sim

4.2.3 Which of these companies offer cheaper prices on

products and services?

In respect of respondents’ opinion about which of the

telecommunication companies offer cheaper prices on

products and services rendered to customers, the study

revealed that majority (58%) of the respondents favoured

MTN. This is followed by Vodafone representing 30% of

the sample. Four (4%) of the respondents preferred Airtel

in terms of prices of products and service while 8% of the

respondents claimed Tigo offer cheaper prices on products

and services compared with the other networks as

illustrated in Fig 2. These results are not surprising because

MTN and Vodafone are the market leaders, who enjoy

more economies of scale than the other competitors. This

supported [7] [2] [16] view on price (marketing mix) as

cost to the customer or consumer.

Fig. 2. Which network offer cheaper prices on products and services


4.2.4 Customers most preferred network

In respect of respondents’ opinion about which of the

telecommunication networks is their most preferred

network, most (54%) of the respondent preferred

MTN to all the other networks while those who

prefer Vodafone to the other telecommunication

networks constituted 46%. Indeed, as revealed by

these statistics, MTN and Vodafone are the most

preferred networks by UDS students on Tamale

campus as indicated in Fig 3. This is perhaps because

of their relative service reliability than the other

network providers.






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Fig.3. Shows customers most preferred network

Field Data, 2013

4.2.5 Kind of MTN and Vodafone products and

services

In respect of products and services offered on sale by

MTN and Vodafone, the research revealed that

modem was the product offered on sale in higher

quantities followed by phones. 8% of modems were

offered on sale while phones represented 6%. With

regard to services offered, 36% of the respondents

identified the free bonus package as one of the

services rendered by the companies while 10%

identified the internet services. Indeed, 10% of the

respondents were also familiar with family and

friends and 20% referred to voice calls as indicated in

Table 2.

Table 2. Products and services of the company

Product/Service Frequency Percentage

mobile phones 6 6.0

Modem 8 8.0

mobile money 10 10.0

free bonus 36 36.0

internet service 10 10.0

talk a lot and pay less 10 10.0

family and friends 10 10.0

voice call 10 10.0

Total 100 100.0

Source: Field Data, 2013

4.3 MTN and Vodafone customers most preferred

product or service

To assess the product or service MTN and Vodafone

customers prefer most, the researchers sought the

views of the major players in the industry in order to

have a comprehensive view on the matter.

4.3.1Most Preferred product or service of

customers

The study indicates that for the different products and

services offered by MTN and Vodafone, modem was

the product which was used in higher quantities by

respondents followed by phones. Modem represented

6% of the total products used while phones

represented 4%. As regards services offered, 38% of

respondents appeared to be happy with the free bonus

package while 18% favoured internet service.






87

Twenty-two (22%) of the respondents preferred using

MTN and Vodafone voice calls to the other networks

and 12% also like family and friends. The researchers

were interested in knowing the reason why these

products and services were consumed more than

others and the reasons given were varied and diverse.

Majority (54%) of the Respondents indicate that it is

cheap using MTN and Vodafone modems for internet

services compared to the other networks while 16%

claimed it is economical using services of these

companies. In terms of verbal communication, 16%

preferred MTN and Vodafone (Table 3).

Table 3 Why MTN and Vodafone products are preferred to other networks

Reason Frequency Percentage

Easy access to call and internet 14 14.0

It is cheap 54 54.0

It is economical 16 16.0

It facilitate verbal communication 16 16.0

Total 100 100


4.4 Measuring customer satisfaction with service

Quality

In measuring satisfaction with service quality, two

measures were used that are all supported by theory

as reviewed in literature and mentioned in

operationalization chapter. These are desire and

expectation disconfirmation and overall satisfaction.

Categorically, customer satisfaction was measured

with respect to MTN and Vodafone.

4.4.1 Customer satisfaction of services

Customers were asked to rate their satisfaction with

service quality of service providers (MTN and

Vodafone) using expectation Disconfirmation (ED)

measures and overall customer satisfaction (OCS)

measures. The ED measure had a five-point likert

scale: “excellent”, “good”, “moderate”, fair and

“poor”. OCS measure used a five-point likert scale:

“very satisfied”, “satisfied”, “neutral”, “dissatisfied”,

and “very dissatisfied”,

Table 4, indicates that the mean rating of customer

satisfaction using overall customer satisfaction (OCS)

measure is 2.32 with standard deviation of 0.844.

This mean was below the three (3) – equal to

moderate satisfaction. Using OCS measure, the mean

rating was 2.32 with standard deviation of 0.844,

being the highest, statistically; the mean of 2.32 is a

low value, thus a little below moderate (3).

Therefore, satisfaction can be described as very low.

A summary of the results of customer satisfaction

rating of MTN and Vodafone mobile networks is

presented in Figure 1. It indicates that using ED

measure 34% of the respondents rated their

satisfaction as equal to dissatisfied, 28% of the

respondents rated their satisfaction as satisfied, 12%

rated it as very satisfied while the remaining 14%

rated it as very dissatisfied. The aim of this question

was to recognize at which level MTN and Vodafone

accept to understand their customers. The greater

percentage was dissatisfied which translates into

some gap in responding to the customer needs. See

[12] [15] [6] on the model of customer satisfaction.

This study has therefore, confirmed this model. Telco

customers were dissatisfied with products and

services offered to them.






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Table 4. Descriptive Statistics of satisfaction Measures

Company Mean rating N Std. Deviation

A (NMT) 2.55 29 .827

B (Vodafone) 2.00 15 .845

C (Airtel) 2.00 2 .000

D (Tigo) 2.00 4 .816

Total 2.32 50 .844

Field Data, 2013

4.4.2. Descriptive Statistics: With respect to mobile telecom network

Details of frequencies with respect to mobile network are combined with the mean satisfaction ratings using overall

customer satisfaction (OCS) measure for each company are presented in Table 5 Table 5. Mean Satisfaction Rating for Companies A, B, C and D

N

Subset for alpha = 0.05

Company 1

Scheffea,,b

B (Vodafone) 15 2.00

C (Airtel) 2 2.00

D (Tigo) 4 2.00

A (MTN) 29 2.55

Sig. .788

Field Data, 2013

Figure 4, indicates the mean satisfaction rating of

customers for Company A (MTN) using the overall

customer satisfaction (OCS) measure. Mean overall

satisfaction was 2.55 indicating that satisfaction of

service quality is low. For Company B (Vodafone),

the mean satisfaction rating by customers using OCS

measure indicates that overall mean satisfaction is

2.00 which is a little lower than for neutral. For

Company C (Airtel), the mean satisfaction ratings by

customers using OS measure indicate that overall

mean satisfaction was 2.00, indicating that

satisfaction of service quality is considerably low,

while for Company D (Tigo), the mean satisfaction

rating by customers using the OS measure indicates

that overall mean satisfaction is 2.00, indicating that

satisfaction is low or somewhat satisfied.

Fig. 4. Mean Plot of Mean Difference for OCS






89

4.4.3 Comparing satisfaction among mobile

MTN and Vodafone

One-Way ANOVA was used to test the equality of

the group’s mean using Scheffe’s statistic which

assumes unequal sample size and equal variances for

complex comparisons. Before performing a One-Way

ANOVA test it was important, first, to ensure that the

assumption of equality of groups’ variances was

established. The Levene statistic, which is very

robust, indicated a ρ-value (0.156>0.05) confirming

rather inequality of means. The ANOVA test at 0.05

showed the following summary in Table 6.

Table 6 ANOVA test for Overall Satisfaction among Mobile Networks

Company Sum of Squares Df Mean Square F Sig.

Between Groups 3.708 3 1.236 1.824 .156

Within Groups 31.172 46 .678

Total 34.880 49

Table 6 indicates that the p-value (0.156>0.05)

provide strong support for rejecting the null

hypothesis that the means are equal. Therefore, we

can safely conclude with 95% confidence level that

overall satisfaction or dissatisfaction differs among

telecom networks in Ghana. We explored to learn

more about the structure and make comparisons of

the differences. That was done by first using the

mean plot (Figure 4) to help identify the structure of

the difference.

The result in Figure 4 indicates that relatively

customers of Company B (Vodafone) rated their

satisfaction with service quality lower than those of

Company A (MTN). This is confirmed by a further

post hoc test using Scheffe’s (Table 6).

Table 7, indicates a comparison of satisfaction/

dissatisfaction among customers of the four mobile

networks in Ghana. It reveals that the p-values

(0.232, 0.839, and 0.666) are all more than the

significant level (0.05). This implies that the

satisfaction or dissatisfaction of customers of

Company A (MTN) is not significantly different from

B (Vodafone). Nevertheless, in com paring the two

networks (MTN and Vodafone) to Aitel and Tigo

Satisfaction of the later is significantly lower.






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Comparisons of mean Difference in Satisfaction

among Networks

Table 7 Scheffe Multiple Comparisons

Networ

k

Mean

Difference (I-J) Std. Error Significance

95% Confidence Interval

Lower Bound Upper Bound

A(MTN

)

B .552 .262 .232 -.21 1.31

C .552 .602 .839 -1.19 2.30

D .552 .439 .666 -.72 1.83

B(Voda

)

A -.552 .262 .232 -1.31 .21

C .000 .620 1.000 -1.80 1.80

D .000 .463 1.000 -1.34 1.34

C(Airtel

)

A -.552 .602 .839 -2.30 1.19

=B .000 .620 1.000 -1.80 1.80

D .000 .713 1.000 -2.07 2.07

D(Tigo) A -.552 .439 .666 -1.83 .72

B .000 .463 1.000 -1.34 1.34

C .000 .713 1.000 -2.07 2.07

4.4.5 Customer loyalty In respect to customer loyalty, 66% of the

respondents affirmed their loyalty to MTN and

Vodafone. This high affirmation of loyalty clearly

indicates the willingness of customers to continue

doing business with the companies in spite of the

many challenges they face. Fourteen (14%) of the

respondents claimed that in the face of exorbitant call

rate (charges) MTN is still a preferred network while

14% of the respondents also indicated that they just

like Vodafone. Also, there has been some trust for the

two networks. This is because 24% disapprove

quality of service provided yet continue to use the

networks. Customer satisfaction (CS) impacts the

behavior of customers in a number of ways. First, CS

is found to be a key determinant of customer

detention [17]. Moreover, [14] pointed out that CS is

regarded as a necessary antecedent of customer

loyalty, which in turn drives profitability and

performance. About 54% of the respondents hinted of

a possible switch to a different network soon. This

clearly demonstrates customers’ disapproval of

services rendered. Indeed, most of the respondents

pointed out their frustrations regarding cost of

service. This is because about 26% of the respondents

felt that it was too expensive to use MTN and

Vodafone. As it is summarized in Table 7, 20% of

the respondents indicate that networks of Vodafone

and MTN are unreliable while 4% confess the

difficulty in accessing airtime. Two (2%) of the

customers said that there were unnecessary

deductions of credit by MTN which could create the

need to switch to a different network. Results from

one way analysis of variance shows that there is no

significant relationship between the loyalty and

customer exit (switch to a competitor network) since

(P=0.916), shows that loyalty of customers was not

significantly related to exit of customers as (P>0.05).

This means that loyalty of customers is independent

of exit. Indeed, there were loopholes in the customer

loyalty to MTN and Vodafone, which needed to be

addressed in order to protect customers from

switching to competitor networks.






91

Table 7 Why customers want to switch to other networks

Reason Frequency Percentage

they deduct my credit for no reason 12 12.0

difficult to access airtime 14 14.0

network is unreliable 30 30.0

too expensive to use 40 40.0

my friends use different lines 12 12.0

Total 100 100


4.5 Sustainability of the products and services

MTN and Vodafone provide to customers

To assess the sustainability of the products and

services MTN and Vodafone provide to their

customers, the researchers sought the views of the

major stakeholders in the industry in order to have a

comprehensive view on the matter.

4.5.1 Product and service sustainability

Regarding product and service sustainability, the

researchers focus was on the responses of customers

and company staff. Majority of the respondents rated

service delivery and products of MTN and Vodafone

as unsustainable while 12% rated it as sustainable.

The aim of this question was to recognize at which

level MTN and Vodafone accept to value their

customers. The greater percentage of respondents

thought service delivery was not sustainable which

translates into some mistrust between service

providers and customers. Results from one way

analysis of variance shows that there is no significant

relationship between the products and sustainability

of the products since (P=0.909), shows that the

products offered on sale was not significantly related

to sustainability as (P>0.05). This means that

products the companies sell is independent of its

sustainability.

Fig. 6. Product and service sustainability

Field Data, 2013

4.6 Marketing strategies and mechanisms put in

place to satisfy and maintain customers

To assess the marketing mix and mechanisms put in

place by MTN and Vodafone to satisfy and maintain

customers, the researchers sought the views of the

major stakeholders in the industry in order to have a

comprehensive view on the matter. Concerning the

analysis of Marketing-mix in MTN and Vodafone,

the focus was oriented on variables such as Price,

Place, Product and Promotion, Physical evidence,

People and Processes. In respect to the question of

knowing the gender of respondents, the research

indicates that 68% of the respondents were females,

32% were males while all (100%) of the respondents






92

affirmed having cell phones. The Researchers asked

this question in order to know the MTN and

Vodafone subscribers in UDS possessing cell phones.

This is due to the fact that holding a mobile phone

was said to be costly.

4.6.1 Price of products

For the different products and services offered by

MTN and Vodafone to UDS students, modems were

the products which were used in higher quantities

while voice call, internet and mobile money services

were the most patronised. Modem represented 6% of

the total products while voice call represented 22%,

internet service 18% and mobile money 4%. The

researchers were interested in knowing the reasons

why these product and services were consumed more

than others and the reason given was the value or cost

of these products.

Concerning the price of modem, Table 4.6.1 shows

that 56% of the respondents declared that the price of

MTN and Vodafone was expensive, 20% as very

expensive, 18% as cheap, while 6% found it very

cheap. It is seen that a greater number of respondents

declared the price being expensive. This created a

constant migration from one network to another

telecommunication company, because 50% of MTN

and Vodafone clients complained about price.

Fig 6. Whether MTN and Vodafone


4.6.2 Call charges

Concerning the opinion about price of calls, Fig. 7,

shows that 50% of respondents declared the price of

MTN and Vodafone as expensive, 30% as very

expensive, 14% as cheap, while 6% found it very

cheap. According to this research, cumulatively

majority of the respondents regard price as very

expensive. However, fewer numbers of the

respondents found MTN and Vodafone Prices as not

much expensive comparatively to the price of some

of the competitors.

Fig. 7 what is your opinion on call charges






93

Field Data, 2013

4.6.3 Distribution channel (Place)

The research revealed that majority (38%) of the

respondents found MTN and Vodafone distribution

channel being good, 36% on the other hand thought

the distribution channel was moderate and 10% said

it was poor while 10% said the distribution was

excellent. Respondents declared getting product

knowledge easily. They said that MTN and Vodafone

Distribution channel, as well as products and

Services were known to all. This is as a result of

training and strong marketing campaigns that enabled

the companies to meet its customer’s targets.

Fig.8. shows customers ratings of the channels of distribution

36

10

38 36

6

10

0

5

10

15

20

25

30

35

40

excellent good moderate fair poor

Frequency

Percentage

Field Data, 2013

As indicated in Fig. 8, 84% of respondents affirmed

getting the products and services from MTN and

Vodafone. The research shows that the big number

was those who were getting access to distributions

from them. The respondents not getting poor service

from MTN and Vodafone represent 16%. From

researchers’ point of view poor service could

generate conflict between customers and service

providers where some clients could switch to other

networks. Besides, 38% of respondents found access

to air time as difficult while 62% found accessing

airtime as easy.

See sections 2.4 to 2.6, the authors discussed a

number of strategies propounded by different authors

including [13] [7] [5] that augment business

operations and success.

5.0 CONCLUSIONS AND

RECOMMENDATIONS

This study seeks to assess customer satisfaction (CS)

and loyalty as well as sustainability of products and

service quality delivered by mobile

telecommunication network (MTN) and Vodafone to

students of University for Development Studies

(UDS). The problem of this study was whether

customers are satisfied with service delivery of MTN

and Vodafone in Ghana. The main research designs

used for the study were survey and case study. A

Structured questionnaire was used to collect data

from hundred (100) individual subscribers selected

from the two mobile telecom networks via cluster,

simple random and purposive sampling techniques.

Descriptive statistics and one way ANOVA were

used for the data analysis. Overall customer

satisfaction was significantly low among the two

Mobile Telecom giants in Ghana. However,

customers of Company Vodafone rated their






94

satisfaction lower than those of Company MTN.

Finally the female respondents or customers were

significantly less satisfied with their service providers

than the male customers.

Therefore, policy makers and industry regulators

such as the Ministry of Communication and National

Communication Authority in Ghana, need to be

awakened to this empirical fact and take pragmatic

steps to ensure that mobile telecom network operators

in Ghana improve upon their efficiency and

effectiveness in the provision of telecommunication

services that meet and exceed customer need, desire

and expectation. National Communication Authority

(NCA) should make it part and parcel of their

monitoring activities to establish and implement an

independent periodic survey to assess customer

satisfaction of the service quality delivered by service

providers in Ghana. The results of such satisfaction

surveys should be published with the companies’

names for the public to take knowledge of the

respective performance of Telco groups, with the

potency of triggering change in the quality of service

delivered by the lowly rated companies. Such surveys

also give the NCA and other industry regulators that

scientific basis for any sanctions, queries and

addressing poor service quality issues in the industry.

Also, the management of Company MTN and

Vodafone must seriously take knowledge of customer

dissatisfaction with their service quality and make

serious efforts to develop effective strategies to

improve upon the situation. Their customers are

typically dissatisfied with their service quality; it is

therefore, recommended that the management should

keep improving upon the network quality until

customers are satisfied. Future research should

examine customer satisfaction with specific service

areas delivered.

ACKNOWLEDGEMENT

The authors acknowledge the efforts of Abraham

Aryee Hulede of Wa Senior High School in the

Upper West Region of Ghana and Somet M. of

Northern Region of Ghana for providing data for this

study.

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A COMPARATIVE ANALYSIS OF CUSTOMER SATISFACTION