Customers switching in Pakistani mobile sector

8/20/2019 Customers switching in Pakistani mobile sector

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Title

Customer Switching in Pakistani mobile carriers

Introduction


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Purpose:

The purpose of our study is to examine which factor inuence switching

intention in Pakistan telecommunication sector.

Background:

In Pakistan, from past few years mobile communication has emerged

as a fast growing industry. Pakistan is considered one of progressive

country of the world in which Mobile phone subscribers has increased

over !".# million. That$s the reason that many foreign companies are

interested to invest in this sector. Telephone % Telegraph &T%T'

department provided telecom services for the (rst time in Pakistan.

T%T department was run by the )overnment. T%T department was

later merged into a *orporation. Presently there are about # cellular

agencies &+fone, -arid, Telenor, ong, and Mobilink' that areproviding their services.

Problem statement:

In Pakistan mobile communication sector has showed rapid growth and

now it is considered one of the important sectors of economy from

di/erent prospective like foreign investment % economic growth. 0ut

important thing is that still cellular networks have not yet satis(ed their

customers due to low performance of services. 1lthough they have high

market share but it$s di2cult for the companies to provide good service

3uality due to which they are unable to satisfy their customers.

Signifcance:

4ur study will provide guidance to other researchers in (nding which factors

inuence switching intention.

5ey words6 *ustomers switching, service 3uality, 7witching intentions, -ord

of mouth.


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Literature Review:

Service Quality

8Providing the customer with what he wants, when he wants it, and at

acceptable cost, within the operating constraints of the business8, and8providing a better service than the customer expects8 &p 9:, 9; ational

construct &*rosby ;?;', service 3uality and its re3uirement are not easy to

accumulated for customers &Takeuchi and @uelch ;:"', 3uality

measurement also creates problems for the researchers & Monroea nd

5rishnan ;:"', better service 3uality also contribute to raise the market

share &1nderson and eithaml ;:9A Phillips, *hang, and 0u>>ell ;:"', the

search for 3uality is most important thing to creates the customer intention

&Babin ;:"', Cay by day customers demanding of 3uality increases

&ations starts

work to understand the term service 3uality and what is meant in the mind

of customers and after understanding that they developed the strategies toincrease the service 3uality &Parasuraman, eithaml, and 0erry ;:#, ;::',

(nancial success is only possible when you increase the service 3uality

&)ermano ;;!A 5eams and Eadler ;;!', if your service 3uality is better

your pro(t will be higherthannormal &Ford Motor *ompany$s researchers

;;D', service 3uality depends on loyalty if services are better than

customer will be more loyal to your organi>ation &Ten ner % CeTbro, ;;!',

the service recipient is customer if service 3uality is better customer will be

in contact with you &eithaml, Para suraman, % 0erry, ;;D', service 3uality

is that how was the services. 1re these services delivered to the customers

in better 3ualityG 1re these services are ful(lling the customer$s needs anddemandsG &0abbar, ;;!'

Customer Satisaction:

There are several dimensions of satisfaction, generally di/er in service,

product context and by industry &1aker;;H'.In service organi>ations,


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satisfaction is considered as powerful measure &1aker ;;H'. *ustomer

satisfaction is used by companies to evaluate the product or services

supplied to customer &Eemati !DD'. 7tudy of &1li et al. !DD' found that

reasonable pricing can be the determinant of consumer satisfaction for

longer period of time. -hile &Eemati !DD' discusses that the mental

satisfaction is received by customers on paying high price in the country like

Pakistan. Innovation in the mobile phone has a positive e/ect, though was

not measured very strong &Eemati !DD'. igher the satisfaction will leads to

higher retention, so operators should be satisfying the customers in order to

retain them &1li et al. !DD'. The de(nition of satisfaction is borrowed from

&4liver, ;;?', which is used for this research, *ustomer satisfaction

generally means customer reaction to the state of ful(llment, and customer

Judgment of the ful(lled state. There are multidimensional aspects of

customer satisfaction in mobile services &Min % -an, !DD'. 1s per &


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consumer reali>e that product is important for that then he or she thinks

about that if he or she received the positive credibility about the product

then the purchase intention of consumer will be high and he or she will not

be switch to another brand his or her switching intention will be low due to

positive credibility &Flynn and )oldsmith &;;"', customer retention is core

concern of each organi>ation and its depend on that how a customer loyal

and satisfy with your organi>ation. If a customer switched by your product to

another product so that organi>ation not only losing your future it$s also

increasing your own cost to (nding new customer &7tanton et al., ;;9', In

service sector switching intention is most important e/ect on a customer. If

you know that what are the factors increasing your customers switching

intention and if you stopped that factors it$s also increase your customer

retention and will minimi>e customer$s switching intention &-an


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Parasuraman et al. &;::' de(ned service 3uality as Lthe overall evaluation

of a speci(c service (rm that results from comparing that (rm$s performance

with the customer$s general expectations of how (rms in that industry should

performN. Fornell &;;!' declared that better the service 3uality then high

will be the customer$s satisfaction. Turel and 7erenko &!DDH' stated that

there is a strong correlation between perceived value and consumer

satisfaction.

There is a positive relationship between service 3uality and customers

satisfaction.

Relations!ip b%w Service Quality ' Switc!ing Intention

If an organi>ation service 3uality is better than it is satisfy to retain a

customer and do not switched to another organi>ation &4yeniyi and 1biodun,

!DD', service 3uality enhance the customer retention and also address the

switching intention &ellier et al., !DD"' &Fernandes and 7antos, !DD?', If

service 3uality changing and its going high to low then customer can switch

to another brand because all customerRs perceptions associated with 3uality

services &=ones et al., !DDD', level of services might very well inuence in

customer switching intention your company$s service go down then customer

might be switched to another service &Cick and 0asu &;;9', 3uality

conscious customers can switched easily to another 3uality services if your

service do not compare with those perceptions &1ndreasen &;:!A ;:#', youcan change your customer$s switching behavior by given them 3uality

services &5eaveny, ;;#', negative service experience increase the switching

intention of customers and changed the actual behavior of customers for

your product or services &7ingh, ;;', if you creates valueadded

relationship between you and your customer by given them extra 3uality

services then you can retain your customer and customer will be more loyal

with your organi>ation and customer$s switching intention day by day will be

resolve &)ruen and Ferguson, ;;9'.

! &a' There is a negative relationship bKw 7ervice 3uality and switchingintention

Relations!ip b%w Service Quality ' "ord # $out!

If service 3uality is ful(lling the customerRs perceptions then customer will be

recommended to others &artline % =ones, ;;H' if service 3uality is better

then, it will create a good relationship between purchase intention and word


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of mouth &0urnham, Frels, % MahaJan, !DD"', &)winner, )remler, % 0itner,

;;:' when buyers cannot choose the 3uality service then positive word of

mouth may help to attain best service &0haradwaJ , 7 . ) . , aradaraJan , P .

B . and Fahy , = . & ;;" ' customer$s satisfaction and service 3uality creates

the positive word of mouth &


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9 &a' *ustomer$s satisfaction mediates the relationship bKw service 3uality

and switching intentions

*ustomer satisfaction and 7ervice 3uality enhance the customer retention

and also address the switching intention &ellier et al., !DD"' &Fernandes and

7antos, !DD?', customer satisfaction increase level of services might verywell inuence in customer switching intention your company$s service go

down then customer might be switched to another service &Cick and 0asu

&;;9', dissatisfaction of customers decrease the service experience and

increase the switching intention of customers and changed the actual

behavior of customers for your product or services &7ingh, ;;'

9 &b' *ustomer$s satisfaction mediates the relationship bKw service 3uality

and word of mouth

4rgani>ations interest must be on the service sector and the need for service

organi>ation to attract customer and then maintain and enhance customer

satisfaction &)aski ;:9', if in a company customers are satis(ed with

service 3uality then customer will be recommended to others &artline %

=ones, ;;H', word of mouth tells the others consumers about the usage,

3uality and characteristic of a service or their sellers &-estbrook ;:?, p.

!H', customers satisfaction plays an important role in strengthening the

relationship of service 3uality and word of mouth &kholi and Javorski ;;D'.

Researc! met!odology

Researc! model

7witching

intention &C'


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Researc! met!od The method we use in our research will be 3uantitative. To test

hypotheses, look at cause % e/ect, % make predictions.

$et!odological approac!-e will use survey approach to distribute 3uestionnaire. 4ur survey will

consist of students from di/erent universities of


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Cata will be analy>ed by using software called 7P77.

Limitations o study Besults may vary because our data is limited to only one city of Pakistan.

Reerences

Cick, 1. 7. % 0asu, 5. &;;9'. *ustomer loyalty towards an integrated

framework. =ournal of the 1cademy of Marketing 7cience

Fornell, *., =ohnson, M. C., 1nderson, Q. -., *ha, =. % 0ryant, 0. Q. &;;H'.

The 1merican customer satisfaction index6 nature, purpose, and (ndings.

=ournal of Marketing

*arman, =. M. &;;D'. *onsumer perceptions of service 3uality6 1n

assessment of the7erv3ual dimensions.

1nderson, Q. -., Fornell, *., %


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Parasuraman, 1., iethaml, ., % 0erry,

Documents

Customers switching in Pakistani mobile sector