1

ASSESSMENT OF FACTORS AFFECTING CUSTOMER

SATISFACTION WITH FUEL CARD: THE CASE OF TOTAL

TANZANIA LIMITED

1

ASSESSMENT OF FACTORS AFFECTING CUSTOMER

SATISFACTION WITH FUEL CARD: THE CASE OF TOTAL

TANZANIA LIMITED

By

Paschal Daud Tesha

A Dissertation submitted in partial fulfillment of the requirements for award of the

degree of Master of Business Administration (MBA) of Mzumbe University

2013

i

CERTIFICATION

The undersigned certifies that he has read and hereby recommend for acceptance by the

University of Mzumbe a dissertation titled:- Assessment of factors affecting customer

satisfaction with fuel card: The case of TOTAL Tanzania Limited, in partial fulfillment

of the requirement for the degree of Masters in Business Administration

……………………………………….

Prof. Shiv Tripathi.

Major Supervisor

………………………………..

Internal Examiner

Accepted for the Board of ……………………………………

…………………………………………………………….

DEAN/DIRECTOR/FACULTY/DIRECTORATE/SCHOOL/BOARD

ii

DECLARATION

AND

COPYRIGHT

I, Paschal Daudi Tesha declare that this dissertation is my own original work and that it has

not been presented and will not be presented to any other university for a similar or any

other degree award.

Signature-----------------------------

Date-----------------------------------

©

This dissertation is a copyright material protected under the Berne Convention, the

copyright Act 1999 and other international and national enactments, in that behalf of, on

intellectual property. It may not be reproduced by any means in full or in part, except for

short extracts in fair dealings, for research or private study, critical scholarly review or

discourse with an acknowledgement, without the written permission of Mzumbe University,

on behalf of the author.

iii

ACKNOWLEDGEMENT

First and foremost, I return thanks to Almighty God whose grace has been amazing to me

throughout the accomplishment of this study. Although it has been a challenging work, it

has encouraged and taught me of self seeking knowledge.

My special acknowledgement goes to my supervisor Prof. Shiv Tripathi for his special

support, guidance, encouragement as well as scholarly constructive criticisms from the

beginning of this study to its final state.

My sincere gratitude goes to all staff and management of Mzumbe University. My thanks

also go to the entire staff of TOTAL Tanzania Limited for their participation and

cooperation in the course of my study.

Likewise, I extend my profound thanks to my colleagues for knowledge sharing and

challenges they brought necessary for the accomplishment of this work. A lot of thanks go

to Mrs. Swai, I. F. for editing this work.

Furthermore, my deep gratitude’s goes to my family for encouraging me both materially

and morally to ensure my education life is a success.

I, alone, am responsible for any error, omission and any shortcomings in this work.

iv

DEDICATION

This work is dedicated to my lovely daughters; Theresa, Tamika, Tamara; my beloved wife;

Katherine Fulgence Swai together with my late parents Mr & Mrs Daudi LewangaTesha for

their prayers and continual support.

v

LIST OF ABBREVIATIONS

ACSI American Customer Satisfaction Index

GPSA Government Procurement Service Agency

HRM Human Resource Management

ICT Information and Communication Technology

SOW Share-of-wallet

vi

ABSTRACT

Electronic fuel card is among the technological innovation facing the world of oil and

marketing companies. In Tanzania, electronic fuel card is still at its earliest stages and there

is a need for the oil and marketing companies to provide service of high quality to satisfy

and attract customers.

The study assessed factors affecting customer satisfaction with TOTAL’s fuel card. The

study was conducted in TOTAL Tanzania limited as a case study. TOTAL limited company

has customers scattered all over the country. A TOTAL of 110 respondents participated in

the study. Both secondary and primary data were used. Primary data were obtained through

interview, and questionnaire and secondary data were obtained through review of existing

literature.

The study found out that personal factors particularly age and gender and organization

factors particularly accessibility of services, serviceability, security, reliability, digital

features and ease of use affect customer satisfaction with TOTAL fuel card. Non-fuel card

users indicated lack of awareness as the main reason for not using the TOTAL fuel card.

Although customers are satisfied with the use TOTAL fuel card, they indicated long queue

and transaction processes at the fuel stations as the main challenges. Customers also

experience communication breakdown when accessing card and credit information.

The study recommends for the management of TOTAL to implement customer service

centers in key business areas to address customer needs on time. Cards need to be loaded at

the main station on real time basis. The management can introduce e-money platform either

via telecom companies or other electronic based systems to make credit card re-loading

more convenient. Promotion campaign needs also to be conducted for new users to make

them aware of the TOTAL fuel card.

vii

TABLE OF CONTENTS

CERTIFICATION ................................................................................................................. i

DECLARATION AND COPYRIGHT ................................................................................ ii

ACKNOWLEDGEMENT ................................................................................................... iii

DEDICATION ..................................................................................................................... iv

LIST OF ABBREVIATIONS .............................................................................................. v

ABSTRACT ........................................................................................................................ vi

TABLE OF CONTENTS ................................................................................................... vii

LIST OF TABLES ................................................................................................................ x

LIST OF FIGURES ............................................................................................................. xi

CHAPTER ONE ................................................................................................................. 1

INTRODUCTION .............................................................................................................. 1

1.1 Study overview ............................................................................................................... 1

1.2 Background to the Problem ............................................................................................ 2

1.3. Total Fuel Card .............................................................................................................. 3

1.4 Features of TOTAL’s Fuel Cards ................................................................................... 3

1.5 Statement of the Problem................................................................................................ 4

1.6 Research objectives ........................................................................................................ 5

1.7 Research Question .......................................................................................................... 6

1.8 Scope of the Study .......................................................................................................... 6

1.9 Significance of the Study ................................................................................................ 6

1.10 Limitations of the study ................................................................................................ 7

1.11 Delimitations of the Study ............................................................................................ 7

1.12 Organization of the Study ............................................................................................. 7

CHAPTER TWO ................................................................................................................ 8

LITERATURE REVIEW .................................................................................................. 8

2.1 Customer satisfaction...................................................................................................... 8

2.2 Importance of measuring customer satisfaction ........................................................... 13

2.3 Satisfaction with the quality of service ......................................................................... 16

2.5 Perspectives of Service Quality .................................................................................... 19

2.6 Service quality models .................................................................................................. 20

viii

2.7 Factors affecting customer satisfaction ........................................................................ 22

2.8 Research Model ............................................................................................................ 24

CHAPTER THREE .......................................................................................................... 26

RESEARCH METHODOLOGY .................................................................................... 26

3.1 Research Design ........................................................................................................... 26

3.3 Data collection instruments ....................................................................................... 27

3.4 Units of measurement ................................................................................................... 28

3.5 Procedures..................................................................................................................... 29

3.6 Validity and Reliability ................................................................................................ 29

3.7 Data Analysis Method ................................................................................................. 29

CHAPTER FOUR ............................................................................................................ 31

DATA PRESENTATION AND ANALYSIS.................................................................. 31

4.0 Introduction................................................................................................................... 31

4.1 Profile of study respondents ......................................................................................... 31

4.2 Duration, frequency of use and type of service ............................................................ 33

4.3 Factors affecting customer’s satisfaction with TOTAL fuel card ............................. 34

4.4 Satisfactions with TOTAL fuel card compared to customer - employee contact ......... 40

4. 5 Challenges of using TOTAL fuel cards ....................................................................... 41

CHAPTER FIVE .............................................................................................................. 47

DISCUSSION OF THE STUDY FINDINGS ................................................................. 47

5.1 Introduction................................................................................................................... 47

5.2 Factors affecting customer’s satisfaction with TOTAL fuel card ............................. 47

5.3 Challenges of using TOTAL fuel cards ........................................................................ 49

CHAPTER SIX ................................................................................................................... 51

SUMMARY, CONCLUSION AND RECOMMENDATIONS .................................... 51

6.1 Introduction................................................................................................................... 51

6.2 Summary of the study ................................................................................................... 51

6.3 Conclusion .................................................................................................................... 52

6.4 Implication for Theory .................................................................................................. 53

6.5 Recommendations of the Study ................................................................................... 53

ix

6.6 Areas for Further Research ........................................................................................... 54

REFERENCES ................................................................................................................. 55

APPENDICES ................................................................................................................... 64

x

LIST OF TABLES

Table 1: Categories of respondents..................................................................................... 27

Table 2: Individual Customer's Profile ............................................................................... 32

Table 3: Frequency and Duration of use............................................................................. 33

Table 4: Relation between sex and customer satisfaction .................................................. 34

Table 5: Distribution of age and customer satisfaction ...................................................... 35

Table 6: Satisfaction with Ease of use of TOTAL fuel card .............................................. 36

Table 7: Satisfaction with reliability of TOTAL fuel card services ................................... 37

Table 8: Satisfaction with TOTAL fuel card over previous customer – employee experiences

.............................................................................................................................. 41

Table 9: Intention to recommend others to use fuel card in the future ............................... 43

Table 10: Rotated Component Matrix (Convergent Validity) and Reliability measures ... 45

Table 11: Model summary .................................................................................................. 46

xi

LIST OF FIGURES

Figure 1: Customer Satisfaction Three Part System ........................................................... 10

Figure 2: Perspectives of Service quality ........................................................................... 19

Figure 4: Type of services purchased using fuel cards ....................................................... 34

Figure 5: Satisfaction with Accessibility of TOTAL fuel card services ............................ 36

Figure 6: Satisfaction with Serviceability of TOTAL fuel card ......................................... 38

Figure 8: Satisfaction with TOTAL fuel card digital services ........................................... 40

1

CHAPTER ONE

INTRODUCTION

1.1 Study overview

In globalization context, organizations have identified Information and Communication

Technology (ICT) as priority agenda and have implemented or are in process of

implementing it in various organization processes. Customers’ satisfaction being the old

function of business management has now become essential function to match with the

changing technology. ICT is then essential in providing faster and more efficient services

to customers to enhance their satisfaction (Fornell, 1992). The rapid development in ICT

has impacted the mode of services delivery as organizations are now introducing electronic

cards as a means of interacting with customers, as opposed to traditional model of cash

payment at point of sell (Fornell ibid)

The popularity of payment cards has continued to grow slowing down cash, cheque and

other traditional payment methods (Murphy, 2010). According to Zandi 2004, over 32% of

worldwide retail customers spending was card based in 2012; an average of 7.7% growth

since 2003. The cards are commonly applied in financial services, libraries, shopping center

and there is a growing trend towards using fuel payment cards in oil and marketing

companies (Schandorf-Lamptey, 2012). Cards reduce friction in the economy by providing

consumers’ convenient and secure access to their funds, while reducing cash and cheque

handling for merchants expanding the pool of customers guaranteed to pay (Cobb, 2004,

Appiah & Aggyemang, 2006).

Studies by Gyamfi (2011) found out that corporate fuel customers were unsatisfied with the

cash mode of service delivery and identified the widespread malpractice related to

identification, verification and efficient monitoring of long fleet drivers as well as delay of

services and complaints from customers. One way to respond to this gap was the

introduction of fuel cards (Schandorf-Lamptey, 2012).

Commitments in technology investment in oil marketing companies have been happening

worldwide and Tanzania has not been left behind. Currently three oil marketing companies

(PUMA Energies limited (formerly BP Tanzania limited), Oil Com Tanzania Limited and

TOTAL Tanzania Limited) have introduced smart fuel card as a mode of payment. Fuel

2

card are introduced as a strategy to provide customers with value added advantages in

managing fleet.

The introduction of fuel card create uncertainty on whether companies are able to offer all

services and products with electronic payment cards, while attaining the idea of customers’

satisfaction which is very critical for firm competitive advantages (Parasuraman 1988). This

cultural shift in the delivery system in oil marketing companies affects how companies

understand customers’ needs and requirements. There is a need for companies introducing

the ICT based services to conduct studies to get customers’ views on reliability, appearance,

responsiveness, assurance and empathy which are the pillars of customer satisfaction

(Gyamfi ibid). Oil marketing companies in Tanzania are therefore required to monitor and

satisfy customers’ demands in a manner different from what they have been accustomed to.

The study assessed satisfaction of customers with the TOTAL fuel card.

1.2 Background to the Problem

Modern trends indicate that electronic payment systems have become a significant element

in all trade and commerce activities globally. Despite the benefits that electronic payments

systems have brought to other economies such as the western developed countries,

economies in Africa, which are still in the early stages of applying electronic payment

systems, are yet to experience its maximum economic and operational impact (Ackorlie,

2009).

To respond to this global initiative oil marketing companies are now introducing electronic

cards to align to electronic payments system among them is TOTAL and its global affiliates

as earlier indicated. TOTAL is one of the six major oil companies in the world with

headquarters in Paris, France. Its businesses cover the entire oil and gas chain. TOTAL has

a market share of 10-15% in Tanzania and its customers include UN agencies, government

and non-governmental organizations, fleet operators, as well as private entities such as

financial institutions, construction companies, transportation companies,

telecommunications companies, manufacturing, mining and power generation companies,

agriculture based companies, hotels and individual customers.

3

Thus it is worth asking, whether or not the management of TOTAL Company in Tanzania

has the creativity and vision to harness the emerging technology and provide customers with

new services and products backed up with efficient business processes that satisfy customers

continually (Serwer, 1995)

.

1.3. Total Fuel Card

TOTAL fuel card is an electronic purse designed to guarantee the card holder quality service

at designated TOTAL service stations. TOTAL fuel card is used as a payment card most

commonly for gasoline, diesel, and other services (such as lubricants) at fuel stations. The

card allows the customer to monitor and control his/her fuel, budget from a central point

irrespective of the location of his/her fleet nationwide. Fuel cards can also be used to pay

for vehicle maintenance and expenses at the discretion of the fleet owners (corporate

customers or companies that owns vehicles) or managers (employees / administrators who

manage overall operation of the vehicles).

TOTAL electronic fuel card was introduced in 2000 as the first fuel card in Tanzania market.

The card was first termed as Tom card, a disposable smart card which offered electronic

means of purchasing fuel with a prepaid card. TOTAL Tanzania Limited in its constant

quest for quality service and customer satisfaction improved the card offering and

introduced the TOTAL card in April 2006. It is estimated that more than 500 corporate and

individuals are using fuel card to cater for their fuel needs (TTL business review, 2012).

1.4 Features of TOTAL’s Fuel Cards

The TOTAL Fuel card is a prepaid and postpaid rechargeable electronic card and it has

features of a typical smart card. It has an embedded security chip that enables programming

of sophisticated controls.

A security PIN code is allocated to each card and this 4 digit number is required before any

transaction is authorized. The chip is impossible to duplicate and the card is customized to

bear the name of the company, card holder, vehicle registration number, product and zonal

restrictions. Each card can be restricted according to the customer's requirement. In addition

it allows usage on specific days or on all days and allows monitoring of the consumption

per period such as per day, week and month (TOTAL card user manual –

www.TOTAL.nigeria .com). For every transaction at fuel stations, it generates a receipt

4

showing date, time, and location of card use, vehicle registration number, mileage, previous

balance on the card before transaction, actual transaction value and the final card balance.

In Tanzania, the fuel card is rechargeable only at the head office and not in any other

customer service center. Downloaded credit can also be picked up from 23 designated

stations and 10 other third party stations contracted by the company. The use of a fleet or

fuel card eliminates the need for cash carrying, thus increasing the level of security felt by

fleet drivers.

The elimination of cash also makes it easier to prevent fraudulent transactions from

occurring at a fleet owner or manager’s expense. For corporate clients fuel card gives the

freedom to decide the location, time and amount spent on fuel thereby saving the valuable

time in the administration of fuel vouchers and supervision of drivers.

Despite numerous benefits of electronic payments, among the challenges of fuel card usage

include difficulty of accessing top up at stations, unclear and faded receipts, restrictive

payments and top ups and unavailability of detailed reports through mobile phone or web

(Schandorf – Lamptey, 2012). Furthermore, users bear greater liability for fraudulent

transactions, frequent breakdown of electronic payment, card blockage, unreliable supply

or unavailability of fueling station for both company owned and third party stations

(contracted stations), and above all limited number of station available throughout the

country.

1.5 Statement of the Problem

Customer satisfaction is the essential component of firm advancement as it guarantees a

high market share and substantial returns. In order to achieve customer’s satisfaction,

services providers are characterized by technology-facilitated transactions which are

electronic card based-service as opposed to traditional mode (customer - employee contact)

of transactions to create service outcomes. According to Parasuraman (1996) it is

increasingly evident that these technological innovations and advances will continue to be

a critical component of customer–firm interactions and a key criterion for long-term

business success.

5

In the Tanzanian context, electronic card-services which provide for technological interface

are not new, however little is known about how interactions with these technological options

affect customer satisfaction particularly in the fuel sector. Application of fuel card

technology being in its early stages requires a high rate of public acceptance. In order to

realize this, providers have to identify, understand customer’s needs and the factors that

influence their satisfaction with fuel card services (Fulgence, 2004).

Empirical study by Magavilla (2002) reveals that though automation of services enhances

customer satisfaction, companies do not take into account indicators such customer services,

service performance and compliant handling rather they focus on result oriented indicators

such as profitability and productivity. The growing importance of electronic card service as

a fundamental shift in the nature of services has brought a challenge on a need for greater

understanding in this area.

In realizing the need for customer satisfaction with fuel card and the need for service quality,

the study seeks to empirically assess customer’s satisfaction with TOTAL fuel card. Studies

on fuel card in Tanzania are scanty and this can be due to the newness of the service as well

as the little information to the customers about the service. With this view, the present study

investigated factors that affect customer satisfaction in the provision of fuel card services.

1.6 Research objectives

The main objective of this research was to assess the factors affecting customer satisfaction

with TOTAL’s fuel card.

Specifically the study,

a) Assessed customers satisfaction with TOTAL - fuel card service compared to their

previous experience of cash payment

b) Identify the level of customers satisfaction with TOTAL fuel card compare to other

fuel cards

c) Determine the challenges customers face in accessing services by using TOTAL fuel

card and the reasons for not using fuel cards among non-fuel card users

6

1.7 Research Question

The main question this research attempted to answer was “What are the factors affecting

customer satisfaction with TOTAL’s fuel card”.

The study operational questions include;

a) Are customers satisfied with TOTAL fuel card services comparing to the previous

experience of cash payment?

b) What is the level of customer’s satisfaction with TOTAL fuel card compared to other

fuel cards?

c) What are the challenges customers’ faces in accessing services through TOTAL fuel

card and the reasons for not using fuel cards among non-fuel card users?

1.8 Scope of the Study

The study assessed TOTAL fuel card customers located all over the country with the

majoring in the Dar es Salaam region. Dar es Salaam region has large number of population

and high concentration of motor vehicle users. Additionally most TOTAL customers

operate their businesses all over the country and their headquarters are located in Dar es

Salaam. Therefore this region provided good source of data for the study.

1.9 Significance of the Study

The study contributed to the body of knowledge on how customers perceive electronic fuel

card services in different ways; first, the study brought light to TOTAL management on the

factors that affect customer satisfaction with TOTAL fuel card services. This may form the

basis for improving the provision of fuel card services in both traditional and electronic

delivery modes.

Second, the researcher identified challenges customers face in purchasing TOTAL services

and its products using electronic card. The findings may inform TOTAL management on

how they can re-strategies towards attainment of customers’ satisfaction through electronic

card. The findings will serve as provoking resource that can inspire other researchers’

curiosity to conduct a deep research in the area related to customers’ satisfaction with fuel

card services.

Lastly, the study enabled the researcher to have practical touch on the customer’s perception

towards the use of electronic cards and gained practical experience through comparison

between theoretical aspect and actual practices.

7

1.10 Limitations of the study

Among the study limitations include time and financial constraints. Most of the respondents

were having other commitments such as family, job and societal commitments and therefore

it became difficult for them to respond to the questionnaires adequately and / or on time.

Conducting research is an expensive undertaking that requires funds for communication,

stationeries and other equipments in order to accomplish the study in a smooth manner.

1.11 Delimitations of the Study

To overcome the time constraint the researcher was able to fix time table and developed a

good strategy and approaches of contacting respondents so that they return well filled in

questionnaires. There was a need to ensure for confidentiality and anonymity of individual

participant and encouraged respondents’ participation. In dealing with financial constraints

the researcher fixed a budget to reflect research demands the situation which fostered the

accomplishment of the dissertation at the right time.

1.12 Organization of the Study

The study is organized into six chapters. Chapter one discussed the study background,

statement of the problem, study objectives, research questions, significance of the study,

scope of the study and limitations. Chapter two addresses literature review with emphasize

on the key concepts particularly customer satisfaction, dimensions of service quality and

service quality models.

The chapter also summarized the research model. Chapter three looks at the research design,

sampling procedure and sample size; data collection and methods of analysis. Chapter four

presents research findings, analysis and interpretation of the data. Chapter five discusses

data findings based on research objectives and chapter six summarizes study findings, draw

conclusions and make study recommendations and areas for further research.

8

CHAPTER TWO

LITERATURE REVIEW

2.1 Customer satisfaction

Oliver (1980) defines customer satisfaction as a feeling a person experiences when

comparing between what one gets to what one expects to get. In the comparison process,

customers especially in service industry use perceived performance (expectations) instead

of actual performance. Oliver (1999) defines customer satisfaction as an "evaluation of the

perceived discrepancy between prior expectations and the actual performance of the

product. Oliver (ibid) further clarify that satisfaction of customers with products and

services of a company is considered as most important factor leading towards company

competitiveness and success. Customer satisfaction is how customer evaluates the ongoing

performance.

According to Kim (2004) customer satisfaction is customer’s reaction to the state of

satisfaction and customer’s judgment of satisfaction level. The concept of customer

satisfaction is composed of several components from distinct sources. According to McColl-

Kennedy & Schneider (2000) customer satisfaction begins with clear, operational

definitions from both the customer and the organization. The achievement of a strong

customer satisfaction is closely related to the understanding customer needs and

expectations (William & Bertsch, 1992).

Expectation is related to the mind set and customers' attitude towards the service. When

customer expectations are not met, dissatisfaction results and dissatisfied customers may

probably complain, switch brands or spread negative word of mouth about the service or

company (Landon 1977; Goldsmith 1995). A dissatisfied customer will tell 7-20 people

about the negative experience and satisfied customer will only tell 3-5 people about the

positive experience (Mrisha 1993; Kan 1995).

According to the Kano Model (2001), customer needs can be divided into:

• Basic needs – obvious needs of customers and if not met, he is dissatisfied, however meeting

this needs may not be enough for customer satisfaction. Its satisfaction results in “must be

quality”.

9

• Expected needs – these are important needs that customers are fully aware of and

satisfaction is expected in every purchase; their satisfaction creates “expected quality”.

• Excitement needs – these are unconscious and unspoken needs of customers. By identifying

and satisfying such needs, companies will have added large value to customers and can win

loyal customers. This satisfaction creates “attractive quality”.

Naylor & Greco (2002) stipulate the importance of clearly defining the key concepts and

elements of satisfaction which includes both the hard and soft measures. According to Hayes

(1998), hard measures are those that are more tangible and observable (i.e., number of

complaints, average wait time, product returns, etc) and the soft measures are the less

tangible aspects (i.e., friendliness, helpfulness, politeness, etc). These definitions often start

with the most vague and general, and become more to the highly specified and precise

examples. The bottom line is that in order to know about customer satisfaction, one needs

to know what to look for (Mitchell, 1999).

Overall satisfaction or cumulative satisfaction is an overall evaluation based on the sum of

purchase and consumption experience with a good or service over time (Anderson et al

1994). In this way, cumulative satisfaction can be differentiated from transaction specific

customer satisfaction, which is an immediate post purchase evaluation (Oliver 1993). Rather

than catching the transient and encounter specific evaluations and emotions, applied market

research should measure customer satisfaction as the customer’s general level of satisfaction

based on all experiences with the firm. Kottler (2007) argues that companies should aim for

high customer satisfaction because customers who are just satisfied find it easy to switch

when a better offer comes along. High satisfaction creates an emotional bond with a brand

not just a rational preference for the product or service.

Parasuraman et al (1985) further argues that expectation formation is based on past buying

experience, friends and associates’ advice, marketers’ and competitors’ information and

promises. The difference between expectations and management perception of customers

expectations result in a gap that can explain dissatisfaction on the part of customers and

research must aim to fill it.

Ross (1995) argues that customer satisfaction is the result of the three-part system;

10

i. Company processes / operations;

ii. Human Resource Management and

iii. Service that is consistent with customer expectations. Thus the effectiveness of the

three-part system is a function of how well these three factors are integrated (See

Figure 1)

Figure 1: Customer Satisfaction Three Part System

Source: Ross (1995)

2.1.1 Customer satisfaction and Human Resource Management (HRM)

The contribution of HRM for the effective implementation of marketing strategies has been

central in the research of marketing. Wernerfelt (1987) stressed that for the effective

implementation of all types of strategies requires the possession of resources that are

valuable, rare and difficult to imitate. Rosemary (2002) listed out human resource factors

for customer satisfaction such as ongoing investment in training, employee security, high

relative pay and performance management system. Other than these human resource

functions, attributes such a values and beliefs (Kelly, 1992); employee behavior (Morrison,

1996); employees empowerment (Bowen and Lawler, 1992); organizational socialization

(Hartine and Ferrell 1993) have been stressed.

Motivating employees is another area of HRM that records implication on customer

satisfaction. Deming (1986) pointed out that it is the firm’s responsibility to design an

incentive system that results in consistency between the firm’s and employees’ objectives

so that when acting in their own best interest, the employees focus not only on mere

11

performance but also on customer satisfaction. Training and development stands significant

in the endeavor for satisfied customer base for an organization as it changes the attitudes

and values of employees towards high customer oriented behavior (Deming ibid).

Various researchers have established that there is the link of internal (employee) satisfaction

to the external (customer) satisfaction. In this context, there is a need for the top

management to satisfy their internal customers so that they can satisfy external customers.

Hill & Alexander (2000) stated that there is a positive relationship between employee

satisfaction and customer satisfaction and this is achieved in companies that practice

employee motivation and loyalty.

They reported that “employees that are more motivated to achieve customer satisfaction

tend to be more flexible in their approach to their work, make fewer mistakes and use more

initiative”. Fečiková (2004) conducted studies on the index method for customer satisfaction

measurement with chairs in Slovakia and reported that the satisfaction of internal customers

is one of the basic factors to satisfy the external customer. Thus, she suggested that

employee motivation and loyalty can be achieved through;

• Daily leadership – where top management officials motivate others through

their performance.

• Communication – where top management communicates their expectations

to their employees.

• Development of competencies – where top management provides feedback

on employees’ performance, work effort and opportunities for development

and improvement of competencies.

2.1.2 Customer satisfaction and companies operations

Company operations affect customers’ satisfaction and involve all processes involved with

the delivery of products and services to the customers. Along with the company processes

are the infrastructure, security aspects as well as legal and regulatory aspects associated with

electronic payments.

Infrastructure is necessary for the successful implementation of electronic payments

including usage of electronic cards (Taddesse and Kidan, 2005). For electronic payments to

be successful there is the need to have reliable and cost effective infrastructure that can be

12

accessed by majority of the customers. For electronic fuel cards, company operations

include building appropriate infrastructure and this should ensure among others security of

users’ information.

Security involves practices, procedures and technology that are put in place to ensure that

information is safeguarded from modification or accidental change (integrity), unauthorized

access (confidentiality) and is readily available (availability) to authorized users on request.

According to Asokan et al., (2000), integrity of payment systems means that no money is

taken from users unless a payment is authorized by the user. In addition, users might require

not receiving any payment without their explicit consent; this is desirable when users want

to avoid unsolicited bribery. Confidentiality in this context means restriction of the

knowledge about customers’ information such as identity, purchase content, amount and the

related transactions.

Customers’ confidence and trust in the traditional payment systems has made customers

less likely to adopt new technologies. New technologies might not dominate the market until

customers are confident that their privacy will be promoted and adequate assurance of

security is guaranteed (Taddesse and Kidan, ibid).

New technologies also requires the test of time in order to earn the confidence of the people,

even if it is easier to use and cheaper than older methods. Availability is ensuring that

information systems and data are ready for use when they are needed; often expressed as

the percentage of time that a system can be used for productive work. All parties require the

ability to make or receive payments whenever necessary (Asokan et al, 2000).

A legal and regulatory framework that builds trust and confidence supporting technical

efforts is also an important issue to be addressed in implementing electronic payments

including fuels cards (Taddesse and Kidan (2005). Particularly no laws and regulations have

been promulgated to cover the legal status and issues of electronic cards (Mishra, 2008).

National regulation and legal framework that aligns with regional and international

agreements is crucial in creating a certain and reliable environment (Taddesse and Kidan,

2005).

13

To realize the gain from new technologies, adjustments are needed in security, related

infrastructure for electronic transactions, information and privacy. In addition, steps should

be taken to minimize risks for customers and investors, adjust prudential regulation and

improve the performance of the market (Clessens et. al., 2001).

2.1.3 Customer satisfaction and Customer expectations through service performance

Service performance is defined by the tangible aspects of product features and quality

aspects which are intangible features of the product (Ross 1995). In general, services are

activities, benefits, or satisfactions that are offered for sale, they are intangible, variable,

and perishable. As a result they normally require more quality control, supplier credibility

and adaptability.

Quality is a conformance to requirements and level of performance. Performance criteria

are usually durability, speed and reliability. Product features are competitive tools for

differentiating the company’s product from competitors’ products. One major way to

differentiate a service firm is to deliver consistently higher quality service than competitors,

the key to meet or exceed the target customer’s expectations. As a result customers will be

satisfied with service performance if they get what they want, when they want it, where they

want it, when they want it and how they want it.

2.2 Importance of measuring customer satisfaction

The need to improve customer satisfaction in measurable amounts is well known, but what

measures to use and how much improvement is needed is another issue (Ross 1995),

however time is one aspect. Ross (1995) argues that if a customer is willing to stand in line

for two minutes but finds five minutes unacceptable, customer becomes merely satisfied.

These are the market break points where improving performance will change customer

behaviour, resulting in higher prices and sales volumes.

Research studies conducted by Gale (1992) and Fornell (1992) showed that higher customer

satisfaction translates into higher than normal market share growth, the ability to charge a

higher price, lower transaction cost, and a strong link to improved profitability. Nelson et

al., (1992) also demonstrated that customer satisfaction is related to higher profitability and

proved his findings statistically. Andersson et al., (1994) found a significant association

between customer satisfaction and accounting return on assets and also customer

14

satisfaction is significantly related to firms’ financial performance. The volume of business

conducted with a firm is directly related to customer satisfaction, which in turns affect

profitability.

The achievement of customer satisfaction leads to company loyalty and product repurchase

/service reuse. According to Reichheld (1995) argues that customers' attitude toward

repurchase of product /reuse of service fall into one of three categories;

• Rejection (customer will avoid using the service at all if possible),

• Acceptance (customer is satisfied, but will use the service for a better deal) and/or

• Preference (customer is delighted and may even purchase at a higher price).

Customers' attitude is subjective and this subjectivity may be brought about from two input

sources; i.e. moments of truth (customers' own experience each time they experience a

product or service) and word of mouth (the experience of other customers each time they

hear about a company). An exceptional experience leads to strong word-of-mouth

recommendations and that strong recommendations influence the experience of the

customer. Reichheld adds further, that customer satisfaction measurements need to be

undertaken with an understanding of the gap between customer expectations and attribute

performance perceptions.

Other empirical findings further demonstrated that; customer satisfaction has greater

influence on repurchase intentions and profits for service companies (Edvardsson et al.,

2000b); customer satisfaction affects share-of-wallet (SOW) positively, is strongly

associated with improved share-of –spending and leads to increased profits.

Naumann (1995) expressed that the reasons for measuring customer satisfaction may vary

among companies and the success of the measurement depends on if the measurement is

incorporated into the firm's corporate culture or not. However, he suggested four reasons

for measuring customer satisfaction or four important roles of customer satisfaction

measurement:

• To get close to the customer – this will help to understand customers more, their

needs, attributes that are most important and their effect on the customer's decision

15

making, the relative importance of the attributes and the performance evaluation of

the firm delivery of each attribute.

• Measure continuous improvement - the important attributes of customers can be

incorporated into the internal measurement to evaluate the value-added process in

the company. This process involves comparing performance against internal

standards (process control and improvement) and comparing performance against

external standards (benchmarking).

• To achieve customer-driven improvement – the data collected from customers can

be developed into sources of innovations and this can help to achieve customer

driven improvement. This requires a comprehensive database and not just records of

sales. This process helps to identify opportunities for improvement (quality costing).

• To measure competitive strengths and weaknesses – this determine customer

perceptions of competitive choices between companies.

Studies on customers’ complaints found out that of the customers who register complaints,

between 54% and 70% will do business again with the company if their complaints are

resolved Albrecht & Zemke (1985). This figure increases to 95% if the customer feels that

the complaint was resolved promptly. Customers who have complained to a company and

had their complaints satisfactorily resolved tell an average of five people about the good

treatment they received.

Hart, et al., (1990) reports that when the service provider accepts responsibility and resolves

the problem when customers complain, the customer becomes satisfied and become loyal

and bonded to the company. Yi (1990) expressed that the impact of customer satisfaction

on customer loyalty by stating that “customer satisfaction influences purchase intentions as

well as post-purchase attitude”. In other words, satisfaction is related to behavioral loyalty,

which includes continuing purchases from the same company, word of mouth

recommendation and increased scope of relationship.

McNeale (1994) found out that about 5% of the dissatisfied customers do not complain to

the appropriate companies but easily tell their friends, colleagues and acquaintances about

their experiences. Thus, companies ought to be aware or routinely investigate how well or

badly their customers are treated. Ovenden (1995) in his studies conducted on several

16

companies in the UK argues that companies need to be aware of how well or badly its

customers are treated and that customers rarely complain and when they do, it might be too

late to keep such customers.

2.3 Satisfaction with the quality of service

According to American Society of Quality Control, quality is defined as a “conformance to

requirement” or “fitness for customer use”. Quality can be defined as the sum of features

and characteristics of a product or service that bear upon its ability to satisfy stated or

implied needs (Mathew et.al., 1999). Satisfaction refers to a number of different facts of the

relationship with a customer (Reichheld, 1996). It can refer to any or all of the following;

satisfaction with the quality of a particular product or service, satisfaction with an ongoing

business relationship, satisfaction with the price performance of a product or service and

satisfaction because a product or service met or exceeded the customers' expectations.

According to Parasuraman et al., (1985, 1988), service quality is defined as customers’

satisfaction or dissatisfaction formed by their experience of purchase and use of the service”

or as a gap between customer's expectations (E) and the perception of the service providers'

performance (P). That is “service quality (Q) should be measured by subtracting customer's

perception scores from customer expectation scores (Q = P - E)”. The greater the positive

score mark means the greater the positive amount of service quality or the greater the

negative score mark, the greater the negative amount of the service quality. To this end

service organizations have increasingly becoming aware of the need to enhance internal

activities in order to create and distribute value to customers (Roig et al., 2006).

Generally, perceived value can be defined as a judgment or a valuation by the customer of

the comparison between the benefits or utility obtained from a product, service or

relationship and the perceived sacrifices or costs (Zeithaml, 1988; Lovelock, 1991).

Similarly, (Roig et al., 2006) observes value is only perceived by customers and cannot be

determined objectively by the seller. Only the customer is able to perceive whether or not a

product or service offers value.

Oliver (1993) reported that service quality is a casual antecedent of customer satisfaction,

due to the fact that service quality is viewed at transactional level and satisfaction is viewed

to be an attitude. Zeithaml et al., (1996) reported that the service quality divisions are related

17

to overall service quality and / or customer satisfaction. Fornell et al., (1996) expressed that

satisfaction is a consequence of service quality and there is causal relationship between

service quality and satisfaction and that the perceptions of service quality affect the feelings

of satisfaction. Studies by Anderson et. al., (1994) supported the notion that expectations

precede satisfaction where the findings reported that there is a positive and significant

relationship between expectations and customer satisfaction.

2.4 Dimensions of Service Quality

There exist various classifications of the service quality components in marketing science.

Gronroos (1984) stated that for a firm to compete successfully it must have an understanding

of customers’ perception of the quality and the way service quality is influenced. Managing

perceived service quality means that the firm has to match the expected service and

perceived service to each other so that consumer satisfaction is achieved. Expected service

quality involves the traditional marketing activities of advertisement, personal selling and

external influence such as word of mouth. The author identified three components of service

quality, namely: technical quality; functional quality; and image as reflected in Figure 1.

Technical quality or quality of the output corresponds to traditional quality of control in

manufacturing. It is a matter of properly producing the core benefit of the service.

Functional quality or process quality is the way the service is delivered. It is the process in

which a customer is a participant and co-producer, and in which the relationship between

service provider and customer plays an important role (Wiele et al., 2002). In other words,

technical quality is related to what customer gets (transaction satisfaction) and functional

quality is related to how the customer gets the result of the interaction (relationship

satisfaction). Image is very important to service firms and this can be expected to built up

mainly by technical and functional quality of service including the other factors (tradition,

ideology, word of mouth, pricing and public relations).

18

Lewis (1987) suggested that service quality can be classified as essential and subsidiary.

Essential refers to the service offered and subsidiary includes factors such as accessibility,

convenience of location, availability, timing and flexibility as well as interactions with the

service provider and other customers.

The classification can also be the core (contractual) of the service and the relational

(customer- employee relationship) of the service. The core or the outcome quality refers to

what is delivered and the relational or process quality refers to how the service is delivered

and both are the basic elements of most services (Parasuraman et al., 1991b). McDougall

& Levesque (2000) investigated four service firms (dentist clinic, automobile shop,

restaurant, and haircut salon) and found out that both core and relational service quality

classes have significant impact on customer satisfaction.

Heskett et al. (1997) conducted studies on several service firms, such as airline, and

restaurants and reported that service quality solely defined as relational quality, has

consistent effect on satisfaction and is regarded as key factor in delivering customer

satisfaction. The literature reveals that no generic measure of service quality for all

industries has emerged (Blose & Tankersley, 2004). Thus, service quality is generally

believed to be a multi-level construct with multiple dimensions making up each level.

19

2.5 Perspectives of Service Quality

Service quality is viewed from two perspectives; from the perspective of the customer

service (where quality is differentiated into delivered and perceived quality), and on the

providers’ side (where quality is differentiated into target and delivered quality). In other

words, customer satisfaction depends on both personal and organization variables. As

depicted in Fig 2, personal variable includes personal needs; expected services, past

experience and perceived service quality.

Organization variables include; reliability – an ability to deliver the promised service

dependably and accurately. This also involves keeping promises about delivery, pricing,

complaints handling and carrying out the services in a consistent manner; appearance –

physical appearance of the product as well as the physical appearance of the service

provider; responsiveness – abilities to be assertive and ready to help customers and provide

timely service; assurance – ability of the firm to inspire trust and confidence and empathy –

caring and individualized attention received by customers. Other organizational factors will

be elaborated further in subsequent chapters, some of which form the study measurement

factors.

Figure 2: Perspectives of Service quality

Source: Developed by researcher (2013)

Customer

Satisfaction

Personal

Factors

Organization

Factors

• Personal needs

• Expected

services

• Past experience

• Reliability

• Accessibility

• Appearance

• Responsivene

ss

• Assurance

20

2.6 Service quality models

2.6.1 SERVQUAL Model

The ServQual model is considered as the pioneer model in customer satisfaction

measurement. Developed by Parasuraman et al. (1985) the model has been recognized as

the most representative tool in approaching customer satisfaction issues. Parasuraman et al.

(1988) identified five dimensions of service quality (SERVQUAL) that must be present in

any service delivery. SERVQUAL helps to identify clearly the impact of quality dimensions

on the development of customer perceptions and the resulting customer satisfaction.

SERVQUAL model has five dimensions that include:

• Reliability - the ability to perform the promised services dependably and accurately.

• Responsiveness - the willingness to help customers and provide prompt service.

• Assurance - the knowledge and courtesy of employees as well as their ability to

convey trust and confidence.

• Empathy - the provision of caring and individualized attention to customers; and

• Tangibles - the appearance of physical facilities, equipment, personnel and

communication materials.

• Zeithaml et al. (1990) proposed a comprehensive perception of quality assessment

and claimed that there are other factors apart from the dimensions of Parasuraman

et al. (1988) which include:

• Access – how easy it is to come into contact with the supplier. This is where position,

opening hours, supplier availability, and other technical facilities belong.

• Communication – the ability to communicate in an understandable way that is

natural to customer.

• Credibility – referring to being able to trust the supplier

• Courtesy – refers to the supplier’s behavior, e.g. politeness and kindness

• ServQual model have been analyzed and modified by some authors seeking to adapt

it or to correct some mistakes it may be perceived to contain. Rethinking

ServQuality has given birth to others models such as ServPerf (Cronin & Taylor

1992).

2.6.2 The SERVPERF model

This model had been developed by Cronin & Taylor 1992 from ServQual model basis. The

fundamental criticism launched to ServQual model by Cronin (ibid) concerns the gap scores

performance and expectations. While SERVQUAL operationalizes service quality by

21

comparing the perceptions of the service received with expectations, SERVPERF maintains

only the perceptions of service quality (Abdullah, 2006). The authors estimated that there

are serious problems in conceptualizing service quality as a difference score. Thus, ServPerf

model suggests that customer satisfaction with service is based only on “performance”

rather than a gap between performance and expectations, with the performance-only scale

termed SERVPERF. Empirical studies have confirmed a relative superiority of ServPerf to

ServQual models and that “ServPerf has greater construct validity and that its measures also

exhibit convergent and discriminate validity” (Cronin & Taylor 1992). The dimensions of

SERVPERF model include; Responsiveness, Assurance, Empathy, Tangible and Reliability

as adopted from Abdullah, (2006).

Other modifications to the SERVQUAL model have been done by withdrawing or adding

some items or dimensions to the original model. Thus, for example, the PAKSERV model

is using “SERVQUAL dimensions of tangibility, reliability and assurance but replaced the

responsiveness and empathy dimensions with three new dimensions: Sincerity (consumer’s

evaluation of the genuineness of the service personnel), Formality (consumer’s evaluation

of social distance, form of address and ritual) and Personalization (consumer’s evaluation

of individualize and individualized attention)” (Saunders 1997).

However in measuring electronic card service quality some features may not be captured if

the previous dimensions are used. Jayawardhena (2004) in identifying quality criteria for

online services particularly internet banking came up with ten quality criteria some of which

can be applied in electronic cards and have been modified to suit fuel cards. The criteria are

explained below as follows;

i. Response time (reasonable loading time) - Technical aspect of the service including

the operational attribute of the service to fulfil the requests in the shortest possible

time.

ii. Expanding functionality - the ability of adding value to the basic service, particularly

represented by adding new services to the fuel card application as an open

information system and by cross-selling other services and products.

22

iii. Communication with a customer - Systematic informing a customer and determining

his requirements in the way customer prefers.

iv. Convenience - Service accessibility from place and time

v. Availability of information for management purposes - Ability to provide history

information about account balances and transaction

vi. Application modularity - Application ability to be adapted according individual

customer requirements due to data presentation (customer has choice for

customizing application setting offerings).

vii. Reliability - Permanent and accurate service providing due to organizationally

planned extent (permanent and accurate service functionality).

viii. Be informed - Providing information (feedback) about fuel card balance and

transactions by different communication channels (SMS notification, e-mail

notification, displaying message about un/successful transaction realization etc.).

ix. Security - System possibilities to protect cards operational transaction and

information.

x. Easy performance and navigation - Number of actions to achieve the wanted result.

2.7 Factors affecting customer satisfaction

Empirical studies have shown a relationship between demographic variables and

satisfaction. General literature on the factors that affect customer satisfaction will be

discussed since limited information is available on the factors that affect satisfaction with

fuel cards. Homburg & Giering (2001) conducted a study on German car manufacturers

using LISREL notation and demonstrated that it is important to study demographic variables

as determinants of customer behaviors.

The results of their study showed that gender has significant moderating effect on

satisfaction - loyalty relationship. Women are satisfied with sales process while men are

satisfied with the impact of the product. Age showed a positive moderating effect and

23

income had moderating influence with high income showing weaker effect and low income,

high effect. Similar studies are those conducted by Fornell et al., (1996) on 400 companies

using the American Customer Satisfaction Index (ACSI). The study found out that sex

positively influences satisfaction and female customers of all ages are more satisfied than

the male customers.

Additionally, women are more involved with the process of purchase and possibly use the

mobile phone more for relational purposes (social network device) while men use it for

functional purposes (businesses, sales, etc).

Palvia & Palvia (1999) found out that age is a significant determinant of satisfaction with

information technology industry. Other studies that indicate age to have a significance

difference on customer satisfaction include those by Turel & Serenko (2006) in mobile

services in Canada using ACSI where lower satisfaction level is found among young adults.

Venn & Fone (2005) conducted a study on patient satisfaction with general practitioner

services in Wales using logistic regression and reported that satisfaction varied with age,

gender, employment status, and marital status.

The results obtained indicated that higher satisfaction is significantly related with

increasing age, female gender, unemployed (those at home, disabled and retired), and

married patients. However, unemployed - students and those seeking work, reported lower

satisfaction.

Income as well affects customer satisfaction where the higher the income the lower the

satisfaction level. Other aspects that positively affect customer satisfaction include; location

(type of area) where customers living within in central city and suburban areas are less

satisfied than those customers in non-urban areas (Fornell et al.,1996); occupation and

education (Oyewole, 2001); in addition Jessie & Sheila (2001) argues that beneficiary

group, rank, service affiliation, education, marital status, race, gender, health status and

number of visits as socio-demographic variables have minimal influence on satisfaction.

24

2.8 Research Model

To answer the research questions stated in chapter 1, research model adopted for this study

has been modified from the criteria used by Jayawardhena (2004) and from Parasuraman et

al., (1988) dimensions as discussed in previous section. As noted the traditional quality

dimensions did not focus on the electronic card environment. This led the researcher to

include variables that are useful in measuring quality in electronic devices.

The dimensions of quality which were evaluated included serviceability, reliability,

security, ease of use, features/digital products and accessibility. While accessibility refers

to approachability or availability of service at TOTAL fuel card and ease of contact in case

of a problem, ease of use refers to the ability to perform operations with the card during

transaction process and the ability to understand the output produced, reliability

encompasses permanent and accurate service functionality of TOTAL fuel card.

Serviceability entails the speed of transaction complimented by competence and courtesy

and friendliness of TOTAL employees, security concerns whether customers feel safe and

secure with their transactions as well as safe from unauthorized users. Digital features are

the services features found within the fuel card and particularly the services that can be

purchased using the TOTAL fuel card.

Since fuel card in Tanzania is in its introductory stages, some of the dimensions are not

applicable, and so other dimensions may be studied in later stages of fuel card development.

Study variables

The six dimensions were the independent variables and overall customer satisfaction with

the quality of TOTAL fuel card services was the dependent variable. A linear multiple

regression was used to assess the relationship between the hypothesized independent

variables and the dependent variables.

Theoretical expression of the model, customer satisfaction was found to be the function of

the quality of the service and the quality of the service comprised the quality dimension

factors. Overall satisfaction referred to the quality that customers perceive from the overall

products and services available and provided for by the TOTAL fuel card service.

Mathematical representation of the research model;

Y = b0 + b1X1 + b2X2 +b3X3+ b4X4+b5X5+b6X6+

25

Where Y = The overall customer satisfaction of TOTAL fuel card services

X1 = Reliability of the Fuel card

X2 = Serviceability of the Fuel card

X3 = Ease of use of the Fuel card

X4 = Accessibility/ convenience of the Fuel card

X5 = Security of the Fuel card

X6 = Features and Expanding functionality (Digital features) of the Fuel card

= random error

b1, b2, b3, b4, b5, and b6 are constant coefficients

Definition of dependent and independent variables

Overall satisfaction - refers to the quality that customers perceive from the overall products

and services available and provided by the banks.

Figure 3 explains the model for measuring customer satisfaction as adopted from Fulgence,

(2004).

Figure 3: Research model

Source: A model for measuring customer satisfaction adopted from Fulgence (2004)

DP1

DP2

DP3

SE1

SE2

SE3

SU1

SU2

Digital services

Serviceability

Security

Customer Satisfaction

SU3

EU1

EU2

EU3

EU4

EU5

RE1

RE2

RE3

RE4

AC1

AC2

Ease of use

Reliability

Accessibility

26

CHAPTER THREE

RESEARCH METHODOLOGY

The chapter discusses the study design, study population, sampling technique, types and

sources of data, data collection and data analysis methods.

3.1 Research Design

This study assessed customer satisfaction with TOTAL fuel card. To respond to the research

questions, case study design was appropriate since it is well suited to investigate the

interaction between phenomenon and real-life context (Yin, 2003). Case study allows

collection of data at one point in time, allows flexibility during data collection and uses

different research methods such as interviews, questionnaire and observation. As a result

purposive and comprehensive information were obtained that helped the researcher to reach

a sound conclusion and workable recommendations.

It is also an appropriate method for descriptive studies where the goal is to describe the

features, context and processes of phenomenon (Yin, 2003), which is the purpose of this

study. The case study selected was TOTAL oil marketing company. TOTAL Tanzania

Limited being the first company to introduce fuel cards has large customer base of fuel card

users according to TTL Business Review, 2012.

3.2 Population, Study respondents and Sampling technique

Singh (2007) defines population as a group of individual objects or items from among which

samples are taken for measurement. For the purpose of this study the targeted population

was customers who purchase services and products using TOTAL fuel card. The sample

size was drawn from the list of TOTAL customer database that contains 400 customers both

individual and corporate companies. The customers are scattered all over the country (TTL

2012 business review report). The study used purposive sampling as a non probabilistic

sampling to select study respondents.

Study respondents included fleet operators and fleet administrators. Fleet operators are

drivers who interact directly with the fuel card services such as purchase of fuel and other

services at TOTAL fuel stations. Operators can also be private drivers that operate

27

individual vehicles. Fleet administrators are managers employed by corporate customers

(clients owning fleet) and are responsible in managing fleet operations. Table 1 provides

categorization of study respondents.

Table 1: Categories of respondents

Category of respondents Distributed questionnaire Response rate

Direct fuel operators 150 60%

Fleet managers 30 33.3%

Source: TOTAL customer profile 2012

The sampling procedures involved included; obtaining a total number of customers who

purchase services and products via TOTAL fuel card in Tanzania from the TOTAL

customer profile. Convenient sampling was used to select a number of customers to respond

to the questionnaire. According to Chepkilot (2005) convenience sampling technique

involves selecting cases or units for observation as they become available to the researcher.

Questionnaires were circulated to the selected sample via both soft copy (emails) and

physically through the use of hard copies. Research assistants facilitate the process of

circulating the questionnaire and the process was conducted in TOTAL fuel stations during

the point of sale and during customer service interactions.

The sample for the interviewees was selected purposively from the database of corporate

customers whose headquarters are in Dar es Salaam Region. Singh (2007) argues that

purposive sampling can be useful for situations where a researcher needs to reach a targeted

sample quickly and where a random process of selection or proportionality is not the

primary concern which was the objectives of this study. The researcher also collected data

from both card users and non card users at TOTAL fuel stations during fuel purchase.

3.3 Data collection instruments

The study used questionnaire and interviews as a source of primary data collection. The

researcher administered 150 questionnaires to the identified respondents. As Kothari (2004)

suggested, through questionnaires respondents have adequate time to give well thought

answers and also respondents who are not easily approachable can be reached conveniently.

28

The questionnaire contained both closed and open-ended questions and it was useful in

providing both qualitative and quantitative type of data.

Apart from using questionnaire as source of primary data, as well the researcher used

interview which enabled the research to have face to face interaction between with 10 fleet

managers from difference corporate customers. Masson (2002) describes the rationale for

using interview includes that a researcher is able to add an additional dimension through

asking some questions from different angle in greater depth. An interview guide was

developed to avoid losing focus and to ensure that all relevant questions were asked. The

interview was useful in obtaining more information and to supplement respondent’s

information obtained from the questionnaire. The interview was useful in obtaining

qualitative data.

The researcher also used secondary data to provide logical support to primary data which

was obtained through documentary review. Bell (1993) defines a document as any written

or recorded material, the preparation of which is not evaluation purposes or the request for

the inquiry. The researcher used TOTAL Tanzania limited customer profile, books and

various journals. These documents were used to supplement the primary data which were

obtained through questionnaire and interviews.

3.4 Units of measurement

Service quality measurement on the use of fuel cards is an area of growing interest to

researchers and managers. Building on a synthesis of the extract literature on service quality

in traditional services and that of electronic card services, the study used twenty

parsimonious measures spread across the six dimensions namely, access, reliability,

security, ease of use, features/digital products and serviceability.

The survey questionnaire developed by Parasuraman et al (1990:175) was used as the

instrument (It is called SERVQUAL instrument) in this study together with quality

determinant factors as found in Jayawardhena (2004) and SERVPERF (Cronin & Taylor

1992). The questionnaire was designed to assess and measure the quality of service. The

study employed five level Likert scale to measure customer satisfaction on the quality

determinant factors.

29

Respondents rated the service dimension factors along the scale ranging from strongly

disagree to strongly agree for the quality dimension items, some factors required the

respondent to rank based on the importance of that factor to that respondent. Under overall

satisfaction, respondents rated their overall satisfaction derived from using fuel card in

itemized five point scale from 1 (very dissatisfied) to 5 (extremely dissatisfied).

3.5 Procedures

The questionnaire contained six parts, the first part collected customer’s views regarding

their level of agreement on the quality dimension factors. The second part allowed

customers to evaluate the importance of service quality factors and dimensions and part

three measured customer satisfaction with the overall quality of TOTAL fuel card services.

Part four solicited information regarding the future use of fuel cards and information

regarding the problems customers face while using fuel cards. The part also gather

information on the areas that need improvement in order to satisfy customers' needs.

Part five collected information on respondent's characteristics particularly level of

education, age, occupation and gender. The questionnaire for non Internet banking

customers consisted of two parts. The first part collected information about customer

characteristics and part two gathered information about the reasons as to why the customers

do not use fuel card services.

3.6 Validity and Reliability

Welman & Kruger (2001) define validity as the extent to which the research findings

accurately represent what is really happening in the situation. An effect or test is valid if it

demonstrates or measures what the researcher thinks or claims it does. In order to obtain

validity of the data collected, the researcher formulated unambiguous and clear questions

during the design of the questionnaire. The questionnaire was subjected to senior academic

scrutiny as well as peer debriefing and conformability.

3.7 Data Analysis Method

Descriptive analysis was employed for analysis to obtain frequencies and percentage of

responses. The results of the analysis were presented in tabular form and charts for easy and

concise discussion and support on a logical basis. The computer software programs

30

Statistical Package for Social Science Research (SPSS) and Microsoft office excel 2007

were useful in data processing.

31

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.0 Introduction

The chapter presents study findings in relation to the study objectives as outlined in chapter

one. The chapter first presents the profile of the study respondents. This is followed by an

overview of the TOTAL fuel card users in terms of duration and frequency of fuel card use

as well as the type of services that are accessed and purchased with TOTAL fuel card. This

was followed by customers’ perceptions towards satisfaction with the TOTAL fuel card and

the extent to which customers are satisfied with TOTAL fuel card service compared to their

previous experiences. The last subchapter presented the challenges customers experience

when purchasing services using TOTAL fuel cards.

4.1 Profile of study respondents

As reflected in Table 2, the first results of gender suggest that, potential number of fuel card

users is male. Male seems to have more access to company and organization vehicles. The

age category indicates high percentage of fuel card customers’ age ranges from 41-50 years,

very few of them holding administrative/managerial positions. Majority 86.5% possess

professional qualifications reflecting their roles in the respective organizations and

companies.

Results show that more than three quarters of the TOTAL fuel card users work under the

private sector most of which are International organizations and NGO’s that are well

equipped with technologies and formalized vehicle management systems. 10% of the fuel

card users are self employed and are hereby stated as private users. For the public sector,

12.5% participated in the study most of which were government agencies that have

independent autonomy on fuel procurement.

In practice, government procures fuel in bulk through Government Procurement Service

Agency (GPSA) and refuels government vehicles centrally. This limited the number of

public entities in using TOTAL fuel card services.

Concerning the level of education, results suggest that more than half of the respondents

have bachelor degree and less than a quarter of the respondents are post graduates. This

32

indicates that customers who use TOTAL fuel card are educated and reflects the

professional working class that have been entrusted by corporate organizations to operate

their vehicles on their behalf to facilitate execution of their duties. The findings also revealed

that, above 50% of the respondents have good knowledge of fuel card system. Though

23.8% of the respondents know a lot about fuel card system, 22.8% only have some

knowledge on the use of fuel cards indicating the need for the TOTAL limited company to

educate their customers on the basic operating features of the fuel card system.

Table 2: Individual Customer's Profile

Characteristics Level No. of respondents

(%)

Gender Male 70

Female 30

Age 20-30 17

31-40 17

41-50 38

51 and above 28

Education Secondary education 25.5

Bachelor's degree 60

Post graduate education 14.5

Current

Occupation

Professionals 86.5

Administrative/Managerial

position

5

Others 8.5

Sector Public 12.5

Self employed 10

Private 78.8

Level of

awareness on fuel

card

Have some knowledge about fuel

cards

22.8

Have more knowledge about fuel

cards

53.4

Know a lot about fuel cards 23.8

Source: Research Data

33

4.2 Duration, frequency of use and type of service

4.2.1 Duration and frequency of use

The respondents were asked to indicate duration and frequency of using TOTAL fuel card

since experience is crucial in understanding the magnitude of the problem and its existence.

Table 3 provides for responses on duration and frequency of using TOTAL fuel card. On

average large number of customers have used the fuel card for more than a year and the card

is used two or three times in a week.

Table 3: Frequency and Duration of use

Frequency of using fuel card TOTAL

Once a

month

Once a

week

Several times

a week

Two or Three

times a week

Duratio

n of use

3 months 1 6 0 10 17

6 months 2 6 1 10 19

One year 0 6 1 16 23

Above one

year

1 6 1 33 41

TOTAL 4 24 3 69 100

Source: Field data (2013)

4.2.2 Type of services accessed

Respondents were requested to indicate services they access and purchase through TOTAL

fuel card. Their responses are as stipulated in Figure 4. As reflected in figure 4, fuel refilling

ranked the highest as all 100 respondents indicate that they use fuel card for fuel refilling.

This was followed by 48 respondents (48%) who use the fuel card for oil change, 36

respondents (36%) use the cards for buying lubricants and the remaining 3 respondents (3%)

use the card for accessing car wash bay service provided for by TOTAL Tanzania Limited.

34

Figure 4: Type of services purchased using fuel cards

Source: Field data (2013)

4.3 Factors affecting customer’s satisfaction with TOTAL fuel card

The main objective of the study was to determine the major factors that affect customer

satisfaction with TOTAL –fuel card services. The study categorized the factors in two

aspects; personal factors and organizational factors.

4.3.1 Personal Factors

4.3.1.1 Gender

Table 4 presents perception of gender on the satisfaction with TOTAL fuel card. On average

male are more satisfied with fuel card services compared to their counterparts.

Table 4: Relation between sex and customer satisfaction

Sex of

responde

nts

I am satisfied with TOTAL fuel cards

Tota

l

Strongly

disagree

Disagre

e

Neutra

l

Agree Strongly

agree

Male 7 5 17 19 22 70

Female 2 6 1 7 14 30

Total 9 11 18 26 36 100

Source: Field data (2013)

4.3.1.2 Age

34

35

Table 5 provides for relation between age and customer satisfaction with TOTAL fuel card.

As reflected in Table 5, the study established that the age range of 51 and above are more

satisfied with the fuel card services than the other age categories. The reason can be that this

group has longer used the cards and are loyal to the company compared to the younger

generation who are new in the use of the fuel card. It was also established that majority of

fuel card users fall at the age range of 41-50 years and are the second satisfied with the fuel

card services and the most dissatisfied age group. Although 33 respondents (33%) strongly

agree that they are satisfied with TOTAL fuel card, 27 respondents (27%) strongly disagree

about their satisfaction with TOTAL fuel card services. Among the reasons are long queues

and unreliable supply of fuel among some few up-country fuel stations.

Table 5: Distribution of age and customer satisfaction

Age I am satisfied with TOTAL fuel card

Total

Strongly

disagree

Disagr

ee

Neutra

l

Agre

e

Strongly

agree

20-30 6 3 2 4 2 17

31-40 3 1 2 6 5 17

41-50 16 2 2 9 9 38

51 and

above 2 1 0 8 17 28

TOTAL 27 7 6 27 33 100

Source: Field data (2013)

4.3.2 Organization factors

The researcher measured six factors that affect customer satisfaction with TOTAL fuel card.

Each factor comprised several attributes as summarized in the study model. The summation

of each attribute was computed and this formed the basis for presenting the findings under

each factor. The factors and their attributes were provided in the questionnaire and

customers were requested to put a tick against appropriate item on the level of agreement.

4.3.2.1 Ease to use

The first item was ease of use which refers to the usability of a card user interface and the

number of actions customer need to go through to achieve the wanted results. The score

36

distribution of the summation of Ease of Use is summarized in Table 6. As depicted in

Table 6, 26 respondents (26%) strongly agree that the TOTAL fuel card is easy to use and

only 5% strongly disagree agree on the ease of use. 31% of the respondents are neutral

indicating that use ability of the fuel card is not a major concern.

Those who affirmed that the card is easy to use highlighted the reasons for their position to

include easy to learn how to utilize it, user friendliness of the card and that the output format

or report is easy read.

Table 6: Satisfaction with Ease of use of TOTAL fuel card

Distribution score Frequency Valid

percentage

Cumulative

percentage

Strongest disagree 5 5.0 5.0

Disagree 14 14.0 19.0

Neutral 31 31.0 50.0

Agree 24 24.0 74.0

Strongly agree 26 26.0 100.0

Total 100 100.0

Source: Field data (2013)

4.3.2.2 Accessibility

The other factor that was assessed was accessibility which refers to the approachability or

availability of service and ease of contact in case of a problem. As reflected in Figure 5, the

vertical axis indicates the agreement level in a five point scale where 4 and 5 respondents

respectively strongly disagree and disagree about the accessibility of TOTAL fuel card. 49%

however indicated satisfaction with the accessibility of TOTAL fuel card and 42% of the

study respondents were neutral. The reason for their rating on satisfaction included the

waiting time to receive service is short and that it is easy to talk to knowledgeable staff

member in case of problems as well as easy availability of the fuel cards at point of sale.

Figure 5: Satisfaction with Accessibility of TOTAL fuel card services

37

Source: Field data (2013)

4.3.2.3 Reliability

Apart from accessibility, reliability (permanent and accurate service functionality) was

noted to be among the factors that affect customer’s satisfaction with TOTAL fuel card. As

depicted in Table 7, half of the study respondents indicated their views as agree and strongly

agree about the reliability of TOTAL fuel card services. Among the reasons provided for

this included statements or reports obtained are free from error, that service is performed

correct at the first time and the level of service is same at all time of the day and for all

members of the staff. Additionally services are provided at the time it was promised.

Table 7: Satisfaction with reliability of TOTAL fuel card services

Distribution score Frequency Valid

percentage

Cumulative

percentage

Strongest disagree 5 5.0 5.0

Disagree 15 15.0 20.0

Neutral 29 29.0 49.0

Agree 15 15.0 64.0

Strongly agree 36 36.0 100.0

Total 100 100.0

Source: Field data (2013)

4.3.2.4 Serviceability

Another important factor for customer’s satisfaction with TOTAL fuel card is serviceability

(the speed of transaction) complimented by competence, courtesy politeness, respect,

37

38

consideration and friendliness of employees. As reflected in Figure 6, more than half of the

study respondents indicated their agreement of the serviceability of the TOTAL fuel card

with (43%) strongly agreeing and (14%) agreeing. The findings indicate that the card allows

for quick service with reasonable transaction speed and transactions are completed in a short

time. It was also noted that employees that attend TOTAL fuel card customers are

knowledgeable and capable of responding to customers queries.

Figure 6: Satisfaction with Serviceability of TOTAL fuel card

Source: Field data (2013)

4.3.2.5 Security

Security was another factor that was found to affect customer satisfaction. Security refers

to ability of the service provider to protect customers' transaction data, maintaining privacy

from interception or misuse and confidentiality. Respondents’ level of satisfaction with the

TOTAL fuel card security is portrayed in Figure 7. It was observed that above 50% of the

study respondents indicated their perceptions as agree (27%) to strongly agree (30%). This

indicates that TOTAL fuel card customers feel safe and secure when conducting

transactions and that their records are safe from unauthorized users.

5%

10%

28%

43%

14%Strongly disagree

Disagree

Neutral

Strongly Agree

Agree

38

39

Figure 7: Satisfaction with security of the TOTAL fuel card.

Source: Field data (2013)

4.3.2.6 Digital services

Digital services refer to number of services available and offered by the TOTAL fuel card.

The level of customer satisfaction is reflected in Figure 8. Though the range of the services

offered under TOTAL fuel card is limited, customers are satisfied with the digital services

where 45% and 20% strongly agreed and agreed respectively. The major output provided

for under the TOTAL fuel card is fuel balance before transaction, the actual transaction and

the balance after transaction. The card can also indicate the balance in monetary value. It

was revealed that the card fuel price in line with the price set by Energy and Water Utility

Regulatory Authority (EWURA).

0

5

10

15

20

25

30

Stronglydisagree

Disagree Neutral StronglyAgree

Agree

8

12

23

3027

39

40

Figure 8: Satisfaction with TOTAL fuel card digital services

*Values are points on the Likert scale, ranging from 1 (Strongly disagree) to 5(Strongly

agree)

Source: Field data (2013)

4.4 Satisfactions with TOTAL fuel card compared to customer - employee contact

The study also evaluated the extent to which customers are satisfied with TOTAL - fuel card

service compared to other previous experiences and particularly cash payment where there

is customer-employee contact.

As reflected in Table 8, 60% of the study respondents are satisfied with TOTAL fuel card

interface compared to cash payment and customer – employee contact. Participants also

indicated various reasons as to why they are more satisfied with TOTAL fuel card compared

to their previous mode of service delivery (cash payment and customer-employee contact).

Among the reasons include reliability of the service and security of their information within

TOTAL limited company.

40

41

Table 8: Satisfaction with TOTAL fuel card over previous customer – employee

experiences

Distribution

score

Frequency Valid

percentage

Cumulative

percentage

Not satisfied at

all

7 7.0 7.0

Satisfied 9 9.0 16.0

Neutral 20 20.0 36.0

Satisfied 26 26.0 72.0

Strongly satisfied 38 38.0 100.0

Source: Field data (2013)

4. 5 Challenges of using TOTAL fuel cards

The study also assessed the challenges customers experience while purchasing services

using TOTAL fuel card and particularly how often they encounter problems in the process.

Figure 9 provides for their responses where 27% indicated to have never encountered a

problems when using TOTAL card, 41% of the respondents indicated to have encountered

a problem once in a month and 19% of the respondents once a year. This indicates that

customers encounter some problems when transacting with the fuel card with majority of

such problems associated with password blockage during transaction at the main station.

Other challenges that directly impact fuel card users include; location of the fuel card

machines at the main station, fuel stations are not convenient as TOTAL has limited number

of fuel stations and some have limited parking sites; long queue at the main stations; poor

customer service among pump attendants and card service personnel when they do not

respond to customer concerns on time. Accessing top up at the fuel stations was also

indicated as a challenge among TOTAL fuel card users.

Figure 9: Frequencies of encountering problems when using TOTAL fuel card

42

Source: Field data (2013)

Apart from responses from direct fuel card users, the researcher interviewed 10 fleet

managers from different corporate customers on their perception towards TOTAL fuel card

particularly the benefits, challenges and future prospects. The major challenge is theft and

dishonest among employees as some collude with unfaithfully station pump attendants on

fraudulent transactions. Under such circumstances, the customer has the greater liability for

the loss and not TOTAL limited company.

Other challenges include; lack of immediate response from the customer care unit when the

customer is on urgent need for a service, the TOTAL fuel card customer service unit is not

well established, lack of fuel stations on main roads and communication infrastructure as it

takes time to download customer’s data as anticipated. The corporate customers are however

intending to continue using TOTAL fuel card services if their needs and complaints are

addressed prompt

4.6 Future intentions to use TOTAL fuel card

Customers were asked to indicate their perception and their intentions to use TOTAL fuel

card in the future. 41% and 34% of the study respondents indicated that they strongly agree

and agree to continue using TOTAL fuel card in the future respectively. Only 2%

strongly disagree to use the card in the near future and most of them were private users. This

indicates that TOTAL fuel card is more preferable for corporate clients than for individual

private customers.

42

43

Apart from having intention to use fuel cards in future, respondents were requested to

indicate if they will recommend others to use fuel card in future. As reflected in Table 9,

majority of the fuel card users are willing to recommend to other customers about the use

of TOTAL fuel card.

Table 9: Intention to recommend others to use fuel card in the future

Distribution score Frequency Valid

percentage

Cumulative

percentage

Strongly disagree 7 7.0 7.0

Disagree 7 7.0 14.0

Neutral 2 2.0 16.0

Agree 19 19.0 35.0

Strongly agree 65 65.0 100.0

TOTAL 100 100.0

Source: Field data (2013)

4.7 Perception of non-fuel card users on the use of TOTAL fuel card

The researcher established the perception of non-fuel card users and the reasons for them

not using TOTAL fuel card. Respondents were first asked to indicate if they are aware of

TOTAL fuel card, 28 out of 32 respondents agreed that they are aware of the TOTAL fuel

card. The reasons for them not using TOTAL fuel card is trust where 50% indicated that

they do not trust electronic card services. Other major concerns for not using the fuel card

include; customers not seeing the benefits of using fuel cards (37.5%) and aspects related to

security (25%).

4.8 Model Testing

Having seen the general observations of responses from the respondents, this section

presents the empirical findings and testing of the research model. The model was tested

using the actual field data.

Before testing the model, Principal Factor Analysis (PFA) was computed to reduce the

number of factors and determine the dimensions to be included in the model. Prior to

performing PCA the suitability of data for factor analysis was assessed. The 20 items of the

quality attributes used to measure customer satisfaction were subjected to principal

44

components analysis (PCA) using SPSS Version 17. Inspection of the correlation matrix

revealed the presence of many coefficients of .3 and above indicating the factorability of

the items. The Kaiser-Meyer-Olkin Measure of Sampling Adequacy (KMO) was 0.810

which surpassed the recommended value of 0.6 (Tabachnick & Fidell, 2001 and Kaiser,

1970, 1974) indicating that the sample was adequate for factor analysis.

The Barlett’s Test of Sphericity (Bartlett, 1954) reached statistical significance (p=.000),

supporting the factorability of the correlation matrix. Principal components analysis

revealed the presence of seven components with eigenvalues exceeding 1 all explaining 64.

937 per cent of the variance of the factors in explaining customer satisfaction. The

eigenvalue of a factor represents the amount of the total variance explained by the factor.

The PCA with the eigen value is however criticized since it retains too many factors in some

situations. This necessitated for the need to use Catell’s scree test (Catell, 1966) which

involves plotting each of the eigenvalues of the factors and inspects the plot to find a point

at which the shape of the curve changes direction and becomes horizontal. Using Catell’s

(1966) scree test, it was decided to retain two components for further investigation. The two

factors retained explained 36.11% of the variance. The factors loaded under security and

digital services. To ensure for the recommended reliability levels, all the factor items were

retained and this resulted to the modification of the research model items on the two factors

as summarized in Table 10. The table shows only the items that has the validity higher than

0.5.

45

Table 10: Rotated Component Matrix (Convergent Validity) and Reliability

measures

Factors Item Factor

Loadings

Cronbach’s alpha

Security SU1 0.509

0.739

SU2 0.672

SU3 0.531

SU4 0.682

SU5 0.566

SU6 0.518

Digital features DP1 0.657

0.828

DP2 0.622

DP3 0.554

DP4 0.506

DP5 0.680

DP6 0.564

Source: Field data (2013)

4.9 Test of the relationship between variables

To test for the relationship between the independent and dependent variables multiple

regression analysis was used. A linear model was used and it was assumed that there is a

relationship between dependent variable (Customer Satisfaction [CS]) and independent

variables SU and DP). The equation for the model was as follows;

CS = 0 + 1SU + 2DP + e

From the multiple regression analysis, the method of least square was used to estimate the

coefficients.

As shown in Table 10, the coefficients for the model are = 0.502; 1 =0 535; 2 = 0.170.

Therefore the equation is represented as; CS = 0.535SU + 0.170DP.

From the model, the coefficient for security indicates a positive relationship between the

variable and customer satisfaction. Security has more influence on customer satisfaction

and so customers are more satisfied if the service is secure. Though the study shows digital

services to have negative influence on customers satisfaction, the results are not significant

46

(p is not less than 0.05) The findings are in agreement with studies by Bonnette (1997), who

commented security as the most important characteristic for customers to accept an

innovation due to high security risks involved with electronic transactions.

The table 10 further reveals that, the regression model with its two independent variables

explains about 65% of the observed variability in factors influencing customer satisfaction.

The coefficient of determination (R2) took into account that a regression model fitted the

particular data which it was developed better. The model fitted the regression by 47% and

53% of customer satisfaction can be explained by other factors not included in the model.

Table 11: Model summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 0.655 0.475 0.47 4.34491

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig. B

Std.

Error Beta

1 (Constant) 0.502 3.645 .138 0.000

Regres Factor 1

(SU)

0.535 0.116 0.573 4.627 0.000

Regres Factor 2

(DP)

-0.170 -0.130 -0.162 -1.309 0.194

a. Dependent Variable: SATISFAC

Source: Research data

47

CHAPTER FIVE

DISCUSSION OF THE STUDY FINDINGS

5.1 Introduction

The chapter discusses research findings as reflected in chapter four in line with the research

objectives outlined in chapter one.

5.2 Factors affecting customer’s satisfaction with TOTAL fuel card

The main objective of the study was to determine the factors that affect customer satisfaction

with TOTAL –fuel card services. The study categorized the factors into two groups;

personal factors (gender and age) and organizational factors (service quality attributes that

included Ease of use, Accessibility, Reliability, Serviceability, Security and Digital

features). Empirical studies on customers’ satisfaction with fuel cards are limited and

therefore study findings are discussed based on the factors that affect customer satisfaction

generally and factors affecting customer satisfaction with electronic cards in other industries

particularly financial institutions where electronic cards have been largely researched.

5.2.1 Personal Factors

Study findings revealed that gender affect customer satisfaction and that female of all ages

are more satisfied than male with TOTAL fuel card usage. It was also found out that

majority of fuel card users are male. Males seem to be more proactive with new technology,

and this is in agreement with other findings (Chang, 2000).

The study also found out that older customers are more satisfied than their counterparts.

Fornell et al. (1996) in developing American Customer Satisfaction Index (ACSI) found out

that gender positively affects satisfaction and female customers are more satisfied than the

male customers. Ahmad & Kamal (2002) found out that there is negative significance

between age and satisfaction among commercial banks users where as age goes down,

customers are less satisfied. Van Amburg (2004) conducted studies on 200 companies using

the American Customer Satisfaction Index (ACSI) and the findings demonstrated that age

has a significant effect on satisfaction and that younger age groups are less satisfied than

older age groups across all products and services industries. Venn & Fone (2005) in

assessing patient satisfaction with general practitioner services in Wales also established

48

that satisfaction varied with age and gender among other factors with the results obtained

indicating that higher satisfaction is significantly related with increasing age and female

gender. Though in different sectors and with mixed results from previous studies, the study

findings fits into a broader literature of age and gender as factors that affect customer

satisfaction.

5.2.2 Organization factors

Customers provided varied levels of satisfaction with the organizational factors. The study

found out that in order of preference, customers are more satisfied with digital features

(65%), serviceability and security of TOTAL fuel cards both 57%, reliability and ease of

use both 50% and with accessibility (49%) being the least rated. Following Lewis (1987)

categorization of service quality into essential (service offered) and subsidiary (which

includes factors such as accessibility, convenience of location, availability, timing and

flexibility, as well as interactions with the service provider and other customers) factors,

TOTAL fuel card customers are less satisfied with some of the subsidiary factors and

particularly accessibility of the service and convenience of service location.

Fulgence (2004) in assessing the factors that influences customer satisfaction with Internet

banking found out that accessibility is very important quality factor and that lack of access

was among the reason(s) as to why customers did not use the service, similar findings

supported by O'Connell (1996). This was followed in a decreasing trend by reliability, ease

of use, serviceability, security and the available digital features/ services (Fulgence, ibid).

Other findings revealed security as an important feature for using electronic cards (Cooper

1997; Daniel 1999; Sue 2000).

Similarly Bloemer & Wetzels (1999) found out that customer satisfaction results from the

ability of the service provider to deliver the promised service dependably and accurately as

well as keeping promises about delivery and handling complaints. Besides TOTAL fuel

customers being satisfied with the essential service, particularly the fuel product itself, lack

of official platform for handling TOTAL fuel card customers complaints might be the cause

for them being less satisfied with the subsidiary factors.

49

As Hart, et al., (1990) commented when the service provider accepts responsibility and

resolves customer problem when complains; the customer becomes satisfied and become

loyal to the company. Other qualities that affect customer satisfaction as highlighted by Hart

ibid. include security, maintaining calmness and helpfulness even under demanding

situations and good natured responses with problem-solving ability smart enough to meet

customer needs.

As William & Bertsch, (1992) comment, the achievement of a strong customer satisfaction

is closely related to understanding customer needs and expectations. In order to satisfy fuel

card customers, TOTAL limited company needs to address service quality attributes

associated with subsidiary factors. However and following advancements in ICT, it can be

possible that new technological changes were implemented on the former infrastructures

limiting ability of companies to address some of these subsidiary factors and therefore not

satisfying customers.

As Parasuraman (1996) argues, in order to achieve customer’s satisfaction, contemporary

service providers have been characterized by technology-facilitated transactions which are

electronic card based-services as opposed to traditional mode (customer - employee

contact). In this context, companies introducing the ICT based services need to conduct

studies to get customers’ views on reliability, appearance, responsiveness, assurance and

empathy which are the pillars of customer satisfaction And it is increasingly evident that

these technological innovations and advances will continue to be a critical component of

customer firm interactions and a key criterion for long-term business success (Parasuraman,

ibid).

5.3 Challenges of using TOTAL fuel cards

The study found out that there exist challenges among direct card users and the management

of corporate clients who manage the fleet. For the direct users, among the challenges include

lack of direct access to fuel cards as corporate customers do not allow them to move with

cards. Although 27% reported to have encountered no problem while transacting with the

fuel card, 41% reported to have encountered a problem once in a month. Other challenges

include long queues in service stations and poor customer services among pump attendants.

50

The management of fleet managers (indirect users) indicated fraudulent transactions

between direct users to be the major challenge. Some of these challenges for instance long

queue falls within infrastructure where the existing infrastructures does not well support the

new ones in terms of space and size. Infrastructure is necessary for the successful

implementation of electronic payments and as Taddesse & Kidan, (2005) comment, there is

the need to have reliable and cost effective infrastructure that can be accessed by majority

of the users for an electronic payment platform to be successful.

The management of TOTAL also indicated to share some of the challenges with the users

and particularly those related to fraudulent transactions. According to the TOTAL Business

Review report (2012) other challenges the management of TOTAL fuel card faces in

operating the FUEL card services include;

• Fuel shortages; where the station dealers delay to order the fuel product. This goes hand

in hand with the delays in making the related payments making the company loss sales.

• Unpredictable price changes; following EWURA procedures of regulating the price of

the fuel product on a monthly basis. Since the company signs a price contract with

customers of the fuel product, a change in price demands further adjustments from both

the customer and the company the process that needs to be done and is done continually.

• Customers delay to make payments; the processes that force the company to block

customer cards and these results to the loss of sales by the company.

The company however continually trains its fuel card customers and fuel attendants to

improve the delivery of the FUEL card services. It also controls the electronic fuel card by

introducing new features within the card to control for fraudulent activities. The company

has also launched a newsletter that informs customers about the new developments in the

fuel card industry.

51

CHAPTER SIX

SUMMARY, CONCLUSION AND RECOMMENDATIONS

6.1 Introduction

This chapter presents the summary of the study. It also presents theoretical and practical

implications. It also provides study recommendations and suggested areas for further

research.

6.2 Summary of the study

The study aimed to assess satisfaction of customer with TOTAL fuel card. The study

revealed that customers are satisfied with TOTAL fuel card services and that majority of

respondents will remain loyal to the company and convince others to use the card. The study

also identified the factors that affect customer satisfaction with TOTAL fuel card services.

The study established age and gender as personal factors that influence customer satisfaction

and quality of service as a major organization factor that affect customer satisfaction. There

was a positive relationship between age and satisfaction and female were more satisfied than

male with TOTAL fuel card services.

The service quality attributes comprised of accessibility of services, security, serviceability,

digital features, reliability and ease to use. Customers were satisfied more with digital

features compared to other quality attributes and least satisfied with accessibility of fuel

card service infrastructure. For non-fuel card users, the study revealed that they are not

aware of TOTAL fuel card and if made aware they might intend to use the card in the future.

Through the study it was also revealed that customers preferred the use fuel TOTAL card

over the previous model of employee contact as it saves time, is digital based and provides

security of their transactions. The study also revealed that users of TOTAL fuel card who

had experience of using other fuel card shows preference of TOTAL over their previous

experience. Despite the fact that customers are satisfied with the card, infrastructure

challenges such as long queue, communication infrastructure and few TOTAL stations are

among challenge customers experience with the overall quality of the TOTAL fuel card

services.

52

6.3 Conclusion

Based on the study findings, analysis and discussions, various factors contribute to

customers’ satisfaction with TOTAL fuel card. The factors include; person factors such as

age and gender and various organization factors such as ease to use, accessibility, reliability,

digital features, serviceability and security. TOTAL fuel card customers prefer the model of

card service against the former model of employee contact, as the model helps customers to

properly manage their time and obtaining quality service. The model is also based on

customers driven improvement. The company is showing interest on continues

improvement of services while attaining customer care. The model meets excitements needs

of customers, expected needs and basic needs which were all difficult to be met by the

previous model.

Customers are satisfied with TOTAL fuel card compared to other fuel cards experiences to

the extent that respondents strongly agree that they will use the card in future and remain

loyal to the company. TOTAL fuel card users are also willing to recommend to others to

use TOTAL fuel card in purchasing TOTAL products and services. The reasons for

preference of TOTAL fuel card over other cards includes;- through the card customers are

able to perform and access companies services dependably and accurately, responsiveness

as the employee of the company show willingness to help customers and provide prompt

service, TOTAL employee are knowledgeable and have courtesy to their customers.

TOTAL employees also convey trust and confidence and the company provides for physical

facilities equipment, personnel and communication materials which simplify service

provision.

There are challenges associated with using TOTAL fuel cards. On average most customers

incur problems/challenges once in a month and this affects level of customer’s satisfaction.

The study reveals that there are challenges which face direct user of the cards (drivers) and

fleet managers (non-direct users) challenges related to fraudulent activities among direct

users and TOTAL stations attendants, such challenges reduce satisfaction among corporate

companies that own fleet.

53

For non-fuel card users’, lack of awareness was the major reason for them not using the fuel

card. Other customers do not see the benefits of using fuel cards as well as the element of

trust as some lack trust on electronic cards services.

6.4 Implication for Theory

The findings of this study show an agreement with most of what has been written in

literatures surveyed. The study revealed that fuel card services enhance flexibility and

convenience of service to customers. Customers can purchase TOTAL products and

services at any time of the day and at any place as long as access is available. This is in line

with empirical findings that fuel cards acts as a convenient service delivery channel that is

different from the traditional retail delivery modes of employee-customer contact. Fuel

cards give customers the chance to manipulate product/ services and this enhances more

satisfaction to customers as their needs are fulfilled.

6.5 Recommendations of the Study

Based on the research findings the following recommendations would help TOTAL

Tanzania Limited to raise customer satisfaction for TOTAL fuel card users. TOTAL

Tanzania Limited should implement forecourt control project. This is where the point of

sale terminal can be linked directly to the pump so that as the fuel is being dispensed,

payment can be made through the TOTAL card. This will prevent users of the card from

exchanging fuel for cash.

Total management should implement payment systems at the commercial banks to evidence

payment to company by its customers. Direct loadings of TOTAL card at the service stations

should be implemented. This is whereby customers can walk to any TOTAL station with

TOTAL cards and make payments and gets their cards loaded immediately instead of

travelling all the way to TOTAL head office and other offices to make payment before their

cards are loaded.

Most companies should be put on the postpaid system, whereby they only come to the

TOTAL Head office to make payment of all the TOTAL cards they have used for the month

than always sending a request before the TOTAL cards are loaded. Fuel card users should

be able to access their detailed report at any point in time through the Web or SMS as

compared to having to request before reports are sent to them Also, fuel card customers

54

should be able to access their top ups immediately after payments. Total should implement

internet based system that will allow fuel card customers to pay and reload their card. This

will attract more private users who are not comfortable with the current system. On same

note, TOTAL limited company should consider to work in partnership with other financial

card users like visa, MasterCard and other credit card in promoting the usage fuel card.

There is a need for the TOTAL management to introduce new fuel card feature that can

enable corporate customers with prepaid fuel card to transfer fuel credit from one vehicle to

another. Such an arrangement can be useful in case of vehicle breakdown as it was noted

that in some cases when the vehicle had major breakdown other vehicles could not utilize

the respective vehicle fuel card. The management can as well extend and/or open a new

business line of fuel card that allows large vehicles such as passenger buses and tracks to

make use of fuel card services.

Finally, there should be improvement on service delivery to increase customer satisfaction

as well as improving the current infrastructures to facilitate accessibility of services using

the fuel card.

6.6 Areas for Further Research

As the findings of this research are based only on TOTAL fuel card customers, there is a

need to conduct more research on customer satisfaction with fuel card and its implications

in organization performance to other fuel companies. Only then will the extent of customers

satisfaction with fuel card in fuel companies operating in Tanzania will be broadly assessed.

The study however provides the basis for further research in the area of card usage in oil

marketing companies.

55

REFERENCES

Albrecht & Zemke (1985). Service America Doing business in new economy

Asokan,N, Janson, P., Steiner, M. and Weidner, M. ( 2000). Electronic Payment Systems

IBM Research Division, Zurich Research Laboratory pp. 1-16.

Asakon, G. A. et al, (2011). The Adoption of the E-zwich Smart card as a substitute to

cash transactions: A Study of Regent University College of Science and

Technology, Ghana.

Babakus, E., D. Pedrick, and A. Richardson (1995), Assessing perceived quality in

industrial service settings: measure development and application, in: Journal of

Business-to-Business Marketing, Vol. 2, No. 3, pp. 47- 67.

Barnes, D. (2007), Operations management: an international perspective, London:

Thomson Learning.

Bateson, J.E. (1977), Managing services marketing, London: Dryden Press.

Beaven, M.H., and D.J. Scotti (1990), Service-oriented thinking and its implications for

the marketing mix, in: Journal of Services Marketing, Vol. 4, No. 4, pp. 5-19.

Bell, C.R., and H. Shea (2000), conducting a partnership test: the virtual audition, in:

Journal for Quality and Participation, Vol. 23, No. 2, pp. 31-34.

Berry, L.L. (1980), Service marketing is different, in: Business, Vol. 30, no. 3, pp. 24-

29.

Bolton, R.N., and J.H. Drew (1991b), a multistage model of customers’ assessment of

service quality and value, in: Journal of Consumer Research, Vol. 17, No. 4, pp.

375-384.

Boulding, W., A. Zeithaml (1993). A dynamic process model of service quality: from

expectations to behavioral intentions, in: Journal of Marketing Research, Vol. 30,

No. 1, pp. 7-27.

56

Blose J E, William B. Tankersley, (2004) "Linking dimensions of service quality to

organizational outcomes", Managing Service Quality, Vol. 14 Iss: 1, pp.75 –

89

Bonnette, A. C. (1997). "Security Risks Associated with the Internet": Papers on Federal Deposit

Insurance Corporation (FIDC) of Supervision, Washington, DC. 20434.

Brown, T.J., G.A. Churchill, and J.P. Peter (1993). Improving the measurement of

service quality, in: Journal of Retailing, Vol. 69, No. 1, pp. 127-139. Educational

Books.

Carman, J.M. (1990). Consumer perceptions of service quality: an assessment of the

SERVQUAL dimensions, in: Journal of Retailing, Vol. 66, No. 1, pp. 33-55.

Chase, R.B., and R. Hayes (1991). Beefing-up operations in service firms, in: Sloan

Management Review, Vol. 33. No. 1, pp. 33-39.

Chang, Y. T. (2002). "Dynamics of Banking Technology Adoption: An Application of

Internet Banking". Department of Economics, University of Warwick.

Churchill, G.A. (1979). A paradigm for developing better measures of marketing

constructs, in: Journal of Marketing Research, Vol. 16, no. 1, pp. 64-73.

Churchill, G.A., and C. Surprenant (1982). An investigation into the determinants of

customer satisfaction, in: Journal of Marketing Research, Vol. 19, No. 4, pp.

491-504.

Cobb Anne (2004), http://www.ameinfo.com/50050.html

Cohen, J. (1988) Statistical power analysis for the behavioral sciences, Hillsdale:

Lawrence Erlbaum Associates.

Cronin, J.J., and S.A. Taylor (1992). Measuring service quality: a re-examination and

extension, in: Journal of Marketing, Vol. 56, No. 3, pp. 55-68.

57

Cronin, J.J., and S.A. Taylor (1994), SERVPERF versus SERVQUAL: reconciling

performance-based and perception-minus-expectations measurement of service

quality, in: Journal of Marketing, Vol. 58, No. 1, pp. 125-131.

Crosby, P.B. (1984), Quality without tears: the art of hassle-free management, New

York: McGraw-Hill.

Daniel, E. (1999). "Provision of electronic banking in the UK and Republic of Ireland",

International Journal of Bank Marketing, Vol. 17 No. 2, pp.72-82.

Devlin, S.J., and H.K. Dong (1994), Service quality from the customers’ perspective, in:

Marketing Research, Vol. 6, No. 1. pp. 5-13.

Drucker, P. (1974), Management: tasks, responsibilities, practices, New York: Harper &

Row.

Edwards, C.D. (1968). The meaning of quality, in: Quality Progress, October 1968, p.

37.

Edvardsson, B., Johnson, M.D., Gustafsson, A. and Strandvik, T., 2000b- The effects of

satisfaction and loyalty on profits and growth: products versus services, Total Quality

Management, Vol.11: 7, 917-927.

Feigenbaum, A.V. (1951). Quality control: principles, practice and administration, New

York: McGraw-Hill.

Fornell, C., M. D. Johnson., E. W. Anderson., J. Cha & B. E. Fornell (1996). The

American Customer Satisfaction Index: Nature, Purpose, and Findings Journal of

Marketing Vol. 60 (October 1996), 7-18.

Fulgence, K. (2004). Factors influencing Customer Satisfaction with Internet Services in

Banking Financial Institutions: The case of National Bank of Commerce (NBC,

2000) and Standard Chartered Bank. A dissertation for fulfillment of Masters

degree at the University of Dar es Salaam.

58

Gale, B., (1992). Monitoring Customer Satisfaction and Market Perceived Quality, Worth

Repeating Series, No. 922CS01, American Marketing Association, Chicago, IL.

Garvin, D.A. (1987). Competing on the eight dimensions of quality, in: Harvard

Business Review, November - December, pp. 101-109.

Garvin, D.A. (1988). Managing quality: The strategic and competitive edge, New York:

Free Press.

George, S. (1992). The Baldrige quality system: the do-it-yourself way to transform your

business, New York: John Wiley.

Gilmore, H.L. (1974). Product conformance cost, in: Quality Progress, June 1974, pp.

16-19.

Gummesson, E. (1995). Relationship marketing: its role in the service economy, in:

Understanding Services New York: John Wiley.

Grönroos, C. (1984) – “A service quality model and its marketing implications”, European

Journal of Marketing, Vol. 18 No. 4, pp. 36-44.

Gyamfi, Daniel (2011). Prospects of Electronic Fuel Cards in Ghana, University of

Sheffield Hallam, UK.

Habermas, J. (1972). Knowledge and human interests, London: Heinemann.

Hartline, Michael, O. C. Farrel((1993), “Service Quality: The Effects of Organizational

Society and Managerial Actions on Customer Contact”, Marketing Institute Working Paper,

Hawes, J.M., and C.P. Rao (1985). Using importance-performance analysis to develop

health care marketing strategies, in: Journal of Health Care Marketing, Vol. 5,

no. 4, pp. 19-25.

Heskett, J.L., T.O. Jones, G.W. Loveman, W.E. Sasser, and L.A. Schlesinger (1994).

Putting the service profit chain to work, in: Harvard Business Review, March-

April, pp. 164-174.

59

Heskett, J.L., W.E. Sasser, and L.A. Schlesinger (1997). The service profit chain: how

leading company’s link Profit and growth to loyalty, satisfaction, and value, New

York: The Free Press.

Homburg, C. and Giering, A. (2001) - “Personal characteristics as moderators of the

relationship between customer satisfaction and loyalty – an empirical analysis”, Psychology

and Marketing, Vol. 18 No. 1, pp. 43-66.

Jayawardhena, C. (2004). "Measurement of Service Quality in Internet Banking: The

Development of an Instrument", Journal of International Marketing, Vol. 20, No. 1-2.

Jessie, L, Sheila, R.A (2001)- Incorporating patients' assessments of satisfaction and quality:

An integrative model of patients' evaluations of their care, Managing Service Quality,

Bedford: Vol. 11, Iss. 4; pg. 272, 15 pgs.

Juran, J.M. (1974). Quality control handbook, New York: McGraw-Hill.

Kaiser, H.F. (1958). The varimax criterion for analytic rotation in factor analysis, in:

Psychometrika, Vol. 23, No. 3, pp.187-200.

Kim,.M.L.,(2004). Cashless Vending. The National Automated Merchandising

Association, Chicago, Illinois.

Kano, N. (2001) – Life cycle and creation of attractive quality. In proceeding from Quality

Management and Organization Development (QMOD) (Dahlgaard, S.M Ed) Linkoping

University, Sweden.

Kottler, P( 2007), Marketing Management The Millennium Ed., Prentice House, India

Kothari C.R (2004). Research Methodology-Methods and Techniques, (2nd Ed). New

Delhi, New Age International.

Lewis, R.C., and B.H. Booms (1983). The marketing aspects of service quality, in:

Emerging perspectives on services marketing.

Lewis, R.C. (1987) “The measurement of gaps in the quality of hotel services”,

International Journal of Hospitality Management, Vol. 6 No. 2, pp. 83-8.

60

Lovelock, C.H. (1983). Classifying services to gain strategic marketing insights, in:

Journal of Marketing, Vol. 47, no. 3, pp. 9-20.

Magavilla V A ( 2002). A micro economic analysis of customer retention indicators :A Case

Study of Standard Chartered Bank,Dar Es Salaam

Mason (2002). Qualitative Research (2nd Ed). London, Sage Publications Limited.

McLaughlin, C.P., and S. Coffey (1990). Measuring productivity in services;

International Journal of Service Industry Management, Vol. 1, no. 1, pp. 46-64.

McNeale, R.M. (1994) - Making customer satisfaction happens. Chapman and Hall, London

McDougall, H.G., and Levesque, T (2000) – “Customer satisfaction with services: putting

perceived value into the equation”, Journal of Services Marketing, Vol., 14 No. 5, pp. 392-

410.

Mishra, B.B. (2008). The development of E-payment and challenges in Nepal p1 59-

168.

Murphy, H.J.,(2010), Traceability of double spending in secure electronic cash system.

Proceedings of the 2003 International Conference on Computer Networks and

Mobile Computing, IEEE Computer Society.

Murray, J.B., and J.L. Ozanne (1991). The critical imagination: emancipator interests in

consumer research, in: Journal of Consumer Research, vol. 18, no. 2, pp. 129-1

44.

Oliver, R.L. (1993). A conceptual model of service quality and service satisfaction:

compatible goals, different concepts, in: Advances in services marketing and

management: research and practice, vol. 2, pp. 65-85,

Ovenden, A., (1995) –”Keep your customers happy and your competition will slowly fade

away”, The TCM Magazine, Vol. 7 No. 1, pp.46-49.

61

Oyewole, Philemon (2001), “Consumer’s Socio-Demographic Characteristics and

Satisfaction with Services in the Airline Industry”, Services Marketing Quareterly, Vol. 23

(2), pp. 61-80.

Palvia, P. C., & Palvia, S. C. (1999) - An examination of the IT satisfaction of small-

business users. Information & Management, 35(3), 127–137.

Parasuraman, A., L.L. Berry, and V.A. Zeithaml (1988). SERVQUAL: a multiple-item

scale for measuring customer perceptions of service quality, in: Journal of

Retailing, vol. 64, no. 1, pp. 12-40.

Parasuraman, A., V.A. Zeithaml, and L.L. Berry (1985). A conceptual model of service

quality and its implications for future research, in: Journal of Marketing, vol. 49,

no. 4, pp. 41-50.

Parasuraman, A., V.A. Zeithaml, and L.L. Berry (1991). Refinement and reassessment

of the SERVQUAL scale, in: Journal of Retailing, vol. 67, no. 4, pp. 420-450.

Parasuraman, A., V.A. Zeithaml, and L.L. Berry (1994). Reassessment of expectations

as a comparison standard in measuring service quality: implications for further

research, in: Journal of Marketing, vol. 58, no. 1, pp. 111-124.

Rathmell, J.M. (1974). Marketing in the service sector, Cambridge: Winthrop.

Reichheld, F. (1996). "Customer Retention in Online Retail", Harvard Business Review,

March - April, pp. 24-35.

Ross Joel E (1995)., Total Quality Management: Text, Cases, and Readings 2nd Edition, St.

Lucie Press, USA

Schandorf-Lamptey, F. (2012). Electronic fuel cards: Challenges and Benefits a study of

TOTAL petroleum ghana limited fuel card (tomcard). Kwame Nkrumah

University of Science and Technology

Schmenner, R.W. (1986). How can service businesses survive and prosper, in: Sloan

Management Review, vol. 27, no. 3, pp. 21-32.

62

Serwer,.D., (1995). The Challenges of Implementing Electronic Payment Systems: The

Study of Ghana‟s Ezwich Payment System, School of Management, Blekinge

Tekniska Hogskola.

Shewhart, W.A. (1931). Economic control of quality of manufactured product, New

York: Van Nostrand.

Singh, K. (2007). Quantitative Social Science Research Methods. New Delhi, Sage

Publications India Limited.

Solomon, M.R., and E.W. Stuart (2005). Marketing: Real people, Real choices. Upper

Saddle River: Prentice Hall.

Strauss, A., Corbin, J. (1998) Basics of Qualitative Research: Techniques and

Procedures

Taddese.K.,Kidan.M.(2005).Economic gains around mergers and acquisitions in the

construction industry in the United States of America, NRC Research Press

Taddesse W. & Kidan, (2005) ,e-payment: Challenges & Opportunities in Ethiopia

Thousand Oaks, California.

TOTAL Tanzania Limited (TTL) Business review (2012).

TOTAL card user manual available online at www.TOTAL.nigeria .com.

Turel, O. and Serenko, A. (2006) - Satisfaction with mobile services in Canada: An

empirical investigation, Telecommunications Policy 30 (2006), pp.314–331, 2006

UNDP (2009) Handbook on Planning, Monitoring and Evaluating For Development

Results New York, United Nations Development Programme

63

Venn, S. and Fone, D.L., 2005 - Assessing the influence of socio-demographic factors and

health status on expression of satisfaction with GP services, Bradford, Vol. 10, Iss. 2; pg.

118, 8 pgs.

Wernerfelt, B (1987), “Defensive Marketing Strategy by Customer Complaint

Management: A Theoretical Analysis”, Journal of Marketing Research, Vol. 24,

Wiele, T. Vander, Boselie, P. and Hesselink, M., 2002- Empirical evidence for the

relationship between customer satisfaction and business performance, Managing Service

Quality, Vol. 12, No. 3, pp.184-93.

Worku, G (2010). Electronic Banking in ETHIOPIA – Practices, Opportunities and

Challenges, Journal of internet Banking & Commerce, August 2010, Vol. 12 No.

2.

Yin, R.K (2003). Case Study Research: Design and Methods, 3rd Edn, Sage

Publications.

Zandi,I.Y.et al, (2004). A study on contents distribution using electronic cash system.

Proceedings of the 2004 IEEE International conference on e-Technology, e-

Commerce and e-Service, IEEE Computer Society.

Zeithaml, V.A., A. Parasuraman, and L.L. Berry (1990). Delivering quality service:

balancing customer perceptions and expectations, New York: The Free Press.

Zeithaml, V.A., and M.J. Bitner (2003). Services marketing: integrating customer focus

across the firm, Singapore: McGraw-Hi.

64

APPENDICES

QUESTIONNAIRES

Annex 1: Research Questionnaire for TOTAL Fuel card customers

My name is Paschal Daudi Tesha; I am currently in the process of writing my dissertation

for the completion of a Masters degree in Master of Business Administration at Mzumbe

University. My research topic based on “Assessment of Factors affecting Customers’

Satisfaction with Total fuel card”. I kindly request you to respond to the research

questions to the best of your knowledge and freely. There is no wrong answer. The

information gathered will be used solely for academic purposes and not otherwise.

Please note that the information given hereunder will be treated with the greatest

confidentiality possible and completely anonymous.

Part One: Please indicate your level of agreement to the features described in each

statement by circling a number appropriate to your feelings

Strongly

disagree

Somewhat

disagree

Uncertain Somewhat

agree

Strongly

agree

1 2 3 4 5

Ease of Use (the usability of fuel cards and / number of actions steps need to complete

transactions and on obtaining information the by fuel card …..)

1.It is easy for me to learn how to utilize this Total Fuel card 1 2 3 4 5

2. I find it easy to get this Total fuel card to do what I want it to do 1 2 3 4 5

3.. I find the Total fuel card easy to use 1 2 3 4 5

4. The Total Fuel card is user friendly 1 2 3 4 5

5. The output format of report is easy to read 1 2 3 4 5

Access (approachability/availability of service and ease of contact in case of a problem)

6. Waiting time to receive service is short 1 2 3 4 5

Score

distribution

65

7. It is easy to talk to knowledgeable staff member when I

had a problem

1 2 3 4 5

8. Easy availability of the fuel cards point of sale 1 2 3 4 5

Serviceability (the speed of transaction, competence and courtesy (politeness, respect,

consideration and friendliness of employees).

9 Quick service and speed of transactions (transaction

completed in a short time instead of a long time)

1 2 3 4 5

10. Convenience (short time for service from place, time and

technology facilities point of view)

1 2 3 4 5

11. Employees have the knowledge to answer customer’s

questions

1 2 3 4 5

Security (system possibilities to protect customers' transaction data, privacy from

interception or misuse and confidentiality)

12. I feel safe in my Fuel card transactions 1 2 3 4 5

13. My records are safe from unauthorized use 1 2 3 4 5

Reliability (permanent and accurate service functionality)

14. Statements or reports are free from error 1 2 3 4 5

15. Service is performed correct at the first time 1 2 3 4 5

16. Level of service is same at all time of the day and for all

members of the staff

1 2 3 4 5

17. Providing the service at the time the service was promised 1 2 3 4 5

Features / digital services (services available on the Total Fuel card allow customers to

make transaction together with the transaction and payment procedures

18. Services provided by the Total fuel card meet your needs 1 2 3 4 5

19. There is a wide of range of services provided (e.g. able to

check fuel balance, buying other products i.e. lubricants, car

wash services , shop etc.)

1 2 3 4 5

66

20. Total fuel card provide lower service charge price in line of

price set by regulatory Authority (EWURA)

1 2 3 4 5

Part Two: Please rate the level of importance of the quality factors

Not

important

Somewhat

importance

Neutral Somewhat

important

Very

important

1 2 3 4 5

1. Security 1 2 3 4 5

2. Digital products/services/ features 1 2 3 4 5

3. Ease of use 1 2 3 4 5

4. Reliability 1 2 3 4 5

5. Serviceability 1 2 3 4 5

6. Access 1 2 3 4 5

Part Three: Please rate total card services by circling the number from the 5-point scale

below that reflects your satisfaction level:

Extremely

satisfied

Somewhat

satisfied

Neutral Somewhat

satisfied

Very satisfied

1 2 3 4 5

22. The overall satisfaction with Total fuel card is good 1 2 3 4 5

23. I am very satisfied with the quality of Total Fuel card

services

1 2 3 4 5

24. I am very satisfied with my personal contact with the fuel

card customers staff

1 2 3 4 5

25. I am more satisfied with Fuel card services compared to

my previous fuel refilling experience(s)

1 2 3 4 5

26. My satisfaction with other services provided by Total fuel

card is good

1 2 3 4 5

Score

distribution

Score

distribution

67

Part Four: Total fuel card usage and Behavioral intention to use it in the future. (Please

tick the appropriate response)

1. For how long you have been using Total fuel card?

[ ] 3months [ ] 6months [ ] One year [ ] Above one

year

[ ] Any other (specify) ---------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------

2. Which services do you make use of with the Total fuel card?

[ ] Fuel refilling [ ] Others (Please specify) -------------------------------

---------------------------------------------------------------------------------------------------------

3. How frequently, do you use Total fuel card for fuel refilling in a week?

[ ] Once a week [ ] Two or Three times a week

[ ] Several times a week [ ] Any other (Please specify) ---------------------------

-------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------

4. How frequently, do you use Total fuel card for other services in a week?

[ ] Once a week [ ] Two or Three times a week

[ ] Several times a week [ ] Any other (Please specify) ---------------------------

-------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------

5. How often approximately, do you encounter problems when using Total Fuel card?

[ ] I never encountered problem [ ] Once a week [ ] Once a month

[ ] Once a year [ ] Others (Please specify) ---------------------

-------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------

4. Please explain problem(s) if any you face during Fuel card transactions process.

5. Please rate at the 5-scale point from strongly disagree to strongly agree based on your

view on the future use of fuel card services

1. I intend to continue using the fuel card in the future 1 2 3 4 5

2. I will frequently use the fuel card in the future 1 2 3 4 5

3. I will recommend others to use fuel card in the future 1 2 3 4 5

4. I will recommend the company management to increase the

variety of services available from fuel card services

1 2 3 4 5

68

Part Five: Comments and suggestions for improving services provided by Total fuel card

If you have any general comment(s) or suggestion(s) regarding the improvement of the fuel

card services, please write them down in the space below.

-------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------

Part Six: Customer’s Profile

1. Gender [ ] Male [ ] Female

2. Your age category [ ] 20 30 [ ] 31-40

[ ] 41-50 [ ] 51 -60 [ ] 61-Above

3. Which of the following describe your current qualification?

[ ] No formal education [ ] Secondary school [ ] Bachelor Degree

[ ] Above college / Bachelor (Master or PhD) [ ] Others (Please specify) ---

-------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------

4. Which of the following best describe your current occupation?

[ ] Professional (doctors, lawyers, engineers, teachers/academicians etc.)

[ ] Administrative/managerial and executive officers

[ ] Businessman / Businesswoman

[ ] Others (Please specify) ---------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------

5. In which sector do you work?

[ ] Public sector [ ] Private sector [ ] Self employed

[ ] Others, (Please specify) ---------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------

Thank you very much for your cooperation

69

Annex II: Research Questionnaire for Non Fuel card customers

The main objective of this questionnaire is to obtain information related to the reasons for

not using Total fuel card services offered by Total Tanzania Company Limited. In order for

the Company to improve the fuel card services and satisfy your needs, we kindly request

you to respond to the questions to the best of your knowledge and freely. There is no wrong

answer. The information gathered will be used solely for academic purposes and not

otherwise.

Please note that the information given hereunder will be treated with the greatest

confidentiality possible.

Part One: Customer’s Profile

1. Gender [ ] Male [ ] Female

2. Your age category [ ] 20 30 [ ] 31-40

[ ] 41-50 [ ] 51 -60 [ ] 61-Above

3. Which of the following describe your current qualification?

[ ] No formal education [ ] Secondary school [ ] Bachelor Degree

[ ] Above college / Bachelor (Master or PhD) [ ] Others (Please specify) ---

-------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------

4. Which of the following best describe your current occupation?

[ ] Professional (doctors, lawyers, engineers, teachers/academicians etc.)

[ ] Administrative/managerial and executive officers

[ ] Businessman / Businesswoman

[ ] Others (Please specify) ---------------------------------------------------------------------------

------------------------------------------------------------------------------------------------

5. In which sector do you work?

[ ] Public sector [ ] Private sector [ ] Self employed

[ ] Others, (Please specify) ---------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------

6. Level of understand electronic payment systems and fuel card

[ ] Have little knowledge about electronic payment and uses of fuel card systems

[ ] Have some knowledge about it, but not yet used the fuel card

[ ] Have more knowledge about electronic payment systems and be able to use fuel card

70

[ ] Know a lot about electronic payment system

7. How often do you use Total service station for fuel refilling?

[ ] Not at all [ ] Somehow not often [ ] Neutral [ ] Somehow

often

[ ] Very often

8. Are you aware of Total Fuel card?

[ ] Yes [ ] No

Part Two: Reasons for not using Total fuel card

Please tick/ circle the reason(s) as to why you don't use fuel card

a) Concerned about security [ ]

b) Do not see benefits of fuel cards [ ]

c) Do not trust electronic card services [ ]

d) Never heard about Total fuel card [ ]

e) Too difficult to use [ ]

f) Do not want to use it [ ]

g) Not aware on how to use Total fuel card [ ]

h) Any other (specify) ----------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------

Thank you very much for your cooperation