The Relationship between Customer Satisfaction and perception of Service Quality: A Case study of Tunisie Telecom Dr. MbarekRahmoun*+ Mr.Anis Ben Salem ** Mrs.Siwar Ben Khelifa ***
*
Assistant Professor, King Abdulaziz University, Jeddah-Kingdom of Saudi Arabia.
(
[email protected]) +
Higher Institute of Business and Accountancy of Bizerte, University of Carthage, Tunisia,
**Teacher-Researcher. High Institute of Management, Sousse University ***Graduate School of Business of Tunis, University of Manouba, Tunisia.
Abstract-The customer's Satisfaction was generally represented as the result of the comparison between the expected and the perceived quality. However, several marketing researchers have considered that the satisfaction is a direct result of perception. We have tried from our research to study the causal relationship between customer perception of service and satisfaction. Our research consists of analyzing the impact of the perception of the Kelma service by the professional customers of Tunisie Telecom on their satisfaction levels. The study of the relation between Kelma service rates and the degree of satisfaction leads us to note that to satisfy the customer of the telephone operator; Tunisie Telecom has an interest in acting on the rates of the services offered. Thus, the higher the rates are, more the customer is satisfied. For this purpose, we can confirm that the level of satisfaction of business customers is significantly and negatively influenced by their price perception. The study of the relation between the Kelma quality of service and the degree of satisfaction confirmed to us that better the service quality of the Kelma offer is, better the satisfaction of Tunisie Telecom's customers will be. Keywords:customer Perception, customer Satisfaction,service quality
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Introduction Customer satisfaction is the success key of the product and services. Sireix and Dubois(1999) studied the relationship between the expected and the perceived quality. Other marketing researchers have noted that satisfaction as a direct result from perception (Anderson and Alii, 1994; Carman, 1990; Parasuraman and Alii, 1994; Salgado and Barnier 2016). Satisfaction is one of the main objectives of customer relationship management. When it surpasses our expectation customer is getting more satisfaction companies need to develop effective competitive strategies that allow them to reach business success in the hostile business environment. It needs an approach of how customers to meet their expectations, which will help them to make loyal towards the company. Ou research problem is to study the impact of the key account customers perception related to the new offers launched by the telephonic operators in a highly competitive environment. The study of perceptions allows mangers to monitor the customer satisfaction in order to propose improvement of the offers to ensure customer satisfaction and avoid the risk of migrating to another operator. In this paper we present a study to improve the relationship between operators of telecommunication and customers in emergent technologies and how to create trust and strong cooperative relationship between customers and retailers. To identify the relationship between the satisfaction and perceived service quality, the study tries to determine the impacts of perception of the customers towards the KELMA services on customer satisfaction.It will help the company to take a necessary action to satisfy customers and make them loyal towards the company. With the growing competition of the new telephone operators in Tunisia, the study has been conducted among the business customers. It measures the satisfaction of the business customers and perception towards the price and offers. This will help many companies to make an effective strategy, especially in the marketing and sales department. This paper is organized as follows. Section 1 describes the definition and the dimensions of perception used to study and to examine the causal relationship between perceived customer service and satisfaction. Section 2 introduces the research methodology used within this paper and to describe also the mains results. Finally, Section 3 presents our conclusions.
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1. Literature review Perception is an activity which is very complex and trivial (perception is one of our most permanent, and most common activities). It bears on all other behaviors. Without perception, it would not be possible to learn, talk, memorize, and communicate. 1.1. Definition and dimensions of perception Perception has sometimes been defined as "the consciousness of particular material things present to sense"(James Rowland Angell, 1996). It can define as an active process that organizes and interprets senses. The perceived world results from an interaction between the individual perceiver and what is perceived; it is the product of deploying creative efforts to understand and mentally represent external reality (Godefois and Wester, 2001). Perception is influenced not only by the external environment, but also by the individual and in particular by their previous experience, emotions, personality, expectations, and intentions. These internal variables are called for when the stimuli are ambiguous, unclear, and confusing. Perception is, indeed, a process by which individuals receive and interpret various messages and stimuli according to their way of thinking, culture and experience (Valentine and Gastéran, 2016). According to Kotler and Dubois (1997), perception is defined as "the process by which an individual selects, organizes and interprets external information to construct a coherent picture of the world around him". This perceptual activity has several features. Indeed, Kotler and Dubois (1994) outline the following features:
Perception is selective: the individual chooses among the stimuli they receive. The selectivity aspect of perception meets a primary objective, which is the search for information relevant to consumer needs.
Perception is deforming: the received stimuli are integrated into mental structures, the received message is then modified to comply with the cognitive structures of the individual.These structures are in themselves the result of learning and experience of each individual.
Perception is subjective: each individual will have a different perception of the samestimuli. Moreover, as individuals tend mostly to forget most of what they learn, they tend to better remember information that supports their beliefs.
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1.2. Knowledge: Determinants of perception According to Rogers (2003), intention to buy a new product strongly correlates with how this latter is perceived by potential buyers through what the author calls the perceived features of the new product:
Relative advantage: it is "the degree to which an innovation is perceived as better than the idea it replaces".
Compatibility: the degree to which "an innovation is consistent with existing values, past experiences and needs of potential adopters".The more innovation is compatible, the less uncertainty it creates.
Complexity: it is "the degree to which an innovation is perceived as relatively difficult to understand and use". Rogers (2003) believes that complexity negatively correlates with the adoption of an innovation.
Ease of testing: the ability to try and learn the new product. The rate of adoption and diffusion is so quick that it is easily accessible to testing.
Visibility: It is "the degree to which the results of an innovation are visible to others". Visibility of innovation plays an important role in procuringa status to its adopter.
Apart from all these features it can be noted as perceived risk is another important determinant which influences the buyer. Ostlund (1974) has mentioned about the influence of perceived risk on the acceptance of new product. Perceived risk denotes the negative consequences (financial and psychological) that a consumer incurs in case of a bad choice. In the light of the facts, the study has involved the influence of perception on the customer adoption of a new product or services. This study is trying to determine the relationship between Tunisie Telecom‟s customer perception of the KELMA offer and their satisfaction. 1.3.The perceived elements of the offer
Price perception: Price often provides consumers with information about product quality. Indeed, consumers associate higher prices with high quality products. According to Lambert (1970), there is a positive relationship between price and quality. This relationship is even more salient if:
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Consumers think the price is a quality indicator,
The consumer does not have information about the product,
Quality is difficult to assess before buying
Brand image perception: Keller (1993) defines brand image as "perceptions of a brand as reflected by the brand associations retained in consumer memory". Image is constructed from the tangible and intangible features of the product as perceived by the consumer. Tangible features perception: Consumers often dispose of only a general knowledge of the products they buy. They are unable to evaluate all technical and complex product features. They then simply select only the important features for them that will serve as a yardstick tocompare competitors' brands (price, durability, warranty). Intangible features perception: The product itself is not the only source of information for consumers. Advertising, interpersonal communication, packaging, and staff performance are many other sources of information that inform consumers perception (Schleenbecker, 2013). Risk perception: The risk that impacts consumer behavior is called "perceived risk" and is defined by Blankertz (1969) as the perception of uncertainty of negative consequences potentially associated with alternative choices. It is the possibility of losing because ofpurchasing or consuming a product. 1.4.Impact of perception: customer satisfaction Satisfaction is defined as "a psychological condition resulting from a purchase and / or a consumption experience" (Vanhamme, 2002). Satisfying then amounts to meet consumer demands, acting to satisfy a need or a desire. Each service or product sale shapes consumer satisfaction while consumer evaluation mode of a service or a product rests according to analysts on a set of criteria identified by the following four influential features (Ilboudou, 2006):
Satisfaction is subjective because it depends on customer perceptions of services,
Satisfaction is selective, as it directly depends on customer expectations and therefore even more subjective because it evolves with their expectations,
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Satisfaction is progressive because it is a function of both expectations as norms and services life cycle.
Satisfaction incorporates both cognitive and affective dimensions. Oliver (1980) introduced the cognitive dimension in hisexpectations disconfirmation model.
According to this model, satisfaction results from comparing perceived performance and expectations. Opposing this cognitive approach that dominated research on satisfaction until the late 80s, many recent studies point to the influence of affective reactions (positive emotional reactions and negative emotional reactions) on satisfaction. (Ladhari, 2005). Satisfaction was generally represented as resulting from comparing expected and perceived quality (Sireix and Dubois, 1999). When perceived performance exceeds expectations, consumers believe that the product / service is good (normally they are satisfied). When perceived performance is below expectations, consumers believe that the product / service is not good (normally they are not satisfied). However, many marketing researchers have challenged this view by presenting satisfaction as directly resulting from perceived quality (Anderson and Alii, 1994; Carman, 1990; Parasuraman and Alii, 1994). In this context, Cronin and Taylor (1992) believe that perceived quality is a better determinant of overall satisfaction than comparing expected and perceived quality. It is the fact that perception of the investors is the good predictor of the customer satisfaction. In this study, it examines Tunisie Telecom‟s "KELMA" loyalty offer, we determine its perception by customers and the extent to which it can influence their satisfaction 1.5.Tunisie Telecom and its KELMA offer Since its inception, Tunisie Telecom has consolidated the infrastructure of telecommunication industry in Tunisia, improved coverage and strengthened its competitiveness. It also contributes actively to promote ICT use and development of innovative telecommunication companies (www.tunisietelecom.tn). Tuisia Telecom‟s KELMA loyalty program is targeting all individual and business customers. Each one dinar consumed or paid (not free), TT 20 points will be granted to customers. Calls, SMS and MMS and 3G++ mobile Internet are included in awarding TT points. KELMA allows all clients, regardless of their seniority and consumption levels, to earn points, and TT converts them into gifts.
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With the KELMA and KELMA PRO programs (for professionals), customersreceive several other benefits including:
A TT 100-point Welcome Bonus offered once subscribing to the program.
A seniority bonus granted to all customers according to the number of years with TT (up to TT 1100 points for 5 years). 1.6.The relationship between consumer perception and satisfaction
Satisfaction was generally presented as an emotional state resulting from the positive or negative disconfirmation of the initial expectations during an ownership or a consumption experience (Oliver, 1980). Nevertheless, recent research has shown that this transactionaland cognitive conception, referring to a single standard comparison (initial expectations) is far from sufficient to identify the formation process of satisfaction. In summary, it seems clear that brands and retailers are moving more and more towards relational strategies to retain customers and to maintain and develop exchange and cooperation relationship in the long term. However, the question that arises at this point is how to determine the means to achieve such a loyalty relationship in the long term. Several studies have pointed out the importance of product quality perception in the creation of relationships and fostering consumer brand loyalty. The service and product quality management are big challenges to the service providers. It is very essential to create good strategy. Therefore, product or service quality management represents is trying to create sustainable relationships between the company and its customers. Service and offer quality represent an abstract and a loose construct whose conceptualization and measurement do not seem to be easy tasks (Parasuraman and Alii, 1985). In the absence of objective measures, it seems appropriate to assess service and offer quality by measuring how consumers perceive them. Thus, satisfaction amounts to comparing expected and perceived quality (Sireix and Dubois, 1999). However, many marketing researchers have challenged this proposition by presenting satisfaction as a direct result of perception (Anderson and Alii, 1994; Carman, 1990; Parasuraman and Alii 1994). In this regard, Cronin and Taylor (1992) assume that offer and service perception is a better way to determine overall satisfaction than comparing expected quality and perceived quality.Hence, the following hypothesis is formulated: H1: Customer perception of KELMA offers is positively influences the customer satisfaction. 7
H2: Price Customer perception of KELMA offers is negatively influences the customer satisfaction. H3: Customer satisfaction is positively influenced by perceived quality. 2. Research Methodology The study has been conducted in the service sector Tunisie Telecom‟s KELMA service provider‟s customers were taken for the study. The targeted population was 30 corporate customers in the Grand Tunis area. The main objective of the study is to provide answers to the following question: What is the perception of the kelma offer by Tunisie Telecom's customers and its impact on customer satisfaction? Indeed, 30 corporate customers were selected randomly and collected the feedback by administrating the questionnaire. The questionnaire consists of 15 questions (dichotomous, closed and multiple-choice questions). The response of the customers can be effectively determined the satisfactory level, which can provide an opportunity to propose corrective action to better customer satisfaction. The study is mainly focused on the following research question: 1.
How do Tunisie Telecom‟s corporate customers perceive the KELMA‟s offers?
2.
What is the impact of corporate customer‟s perception on their satisfaction? 3. Results of Analysis
The data collected for this study were coded and analyzed using Microsoft Excel and SPSS software. The percentage method was used to explain the numerical value of the respondents and Spearman and Kendall correlation is used to explain the relationship between the perception and customer satisfaction. The result of the research has been discussed in the following details. 3.1. Tenure of the corporate customers: Out of the 30 respondents, 4 (13.3%) of them representing were less than 1 year of tenure, while 7 (23.3%) representing the tenure of between 1 and 2. Majority of the respondents are in the category of tenure in between 2 and 3. The participant represents 11 (36.7%). Finally, 26.7 % of the customers are having more than 4 years of tenure along with this service provider. Table 1 representing the tenure of the corporate customers of KELMA.
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Table 1. Tenure of the corporate customers Number
Percentage
Less than one year
4
13,3
Between 1 and 2 years
7
23,3
Between 2 and 3 years
11
36,7
More than 4 years
8
26,7
It has been noted that subscribers from 2 to 3 years, showing that Tunisie Telecom was able to promote customer loyalty even with the entry of new competitors in the market (Ooredoo, Orange). Moreover, these results indicate that these corporate customers are very familiar with the services offered by Tunisie Telecom, which will be useful to determine their overall assessment of satisfaction. 3.2.Reason for choosing KELMA offer The attitude of the customers towards the KELMA is considered in this study. The reasons for selecting the KELMA offer are different. It has been clarified within the study. To study the degree of perception of Tunisia Telecom's professional customers of the kelma offer, it would be relevant to detect the reasons for the choice of Kelma service from Tunisie Telecom. Indeed, 66.7% of respondents chose the Kelma service for associated offers (rewarded consumption, gift offer, free points, Kelma + bonus), 16.7% were chosen following the recommendation of a loved one, 13.3% were attracted by the service thanks to the advertising they saw, seen or heard and only 3.3% for its price.
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Table 2. Reasons for choosing the KELMA offer Number
You
find
Percentage
Valid
Cumulative
percentage
percentage
the 4
13,3
13,3
13,3
5
16,7
16,7
30,0
20
66,7
66,7
96,7
For its price
1
3,3
3,3
100,0
Total
30
100,0
100,0
100,0
service attractive Your loved ones recommended it to you For importance the
associated
offers
Perception KELMA offer price The perception of the customers towards the price offers is another important determinant which can influence the customer satisfaction. The perception of the customers has been analyzed and described in the following table. The results indicate that 60% of the respondents perceive the KELMA offer as "affordable", 26.7% of the customers are considered, it is not expensive and 13.3% are considered it is expensive. Table 3. Perception of KELMA offer price Price offer
Numbe
Percentage
Valid percentage
Cumulative percentage
r Expensive
4
13,3
13,3
13,3
Affordable
18
660,0
60,0
73,3
Not expensive
8
226,7
26,7
100,0
Total
30
1100,0
100,0
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Perceived KELMA offer quality The perception of the customers towards the price offers is analyzed. Perceived quality of the KELMA offer is analyzed with the response of the customers (Table4). The result indicates that 40% of the respondents perceive the quality of KELMA offer as "good" (speed of point‟s conversion procedure, easy access to the menu, information is available, good customer service management). Furthermore, 36.7% perceive it as “average”, 16.7% as “very good” and finally 6.7% are considered as “poor”. Table 4. Perceived KELMA offer quality Number
Percentage
Valid
Cumulative percentage
percentage Very good
5
16,7
16,7
16,7
Good
12
40,0
40,0
56,7
Average
11
36,7
36,7
93,3
Poor
2
6,7
6,7
100,0
Total
30
100,0
100,0
KELMA offer Perception: The overall perception of the customer towards the KELMA offer has been measured in the study Table 5 has been given a detailed analysis of the perception of the customers towards the KELMA offer. Table 5. Perceived KELMA offer Number
Percentage
Valid percentage
Cumulative percentage
Very attractive
4
13,3
13,3
13,3
Attractive
13
43,3
43,3
56,7
9
30,0
30,0
86,7
Unattractive
3
10,0
10,0
96,7
Not at all attractive
1
3,3
3,3
100,0
Moderately attractive
11
30
Total
100,0
100,0
The results indicate that 43.3% of the respondents perceive KELMA offer as "attractive" (free calls, gifts), 30% "moderately attractive" and 13.3% as “very attractive”. Only 10% of the respondents perceive the offer as “unattractive” and 3.3% as “not at all attractive”. It can be predicated as customers are considered KELMA offers are attractive. 3.3. Satisfaction with KELMA offer The level of customer satisfaction is very much important for the service providers. So, the study is focused to measure the level of satisfaction of the corporate customers. The following table is discussing the customer satisfaction concerned by the KELMA„s Offer. Table 6. Satisfaction with KELMA offer Number
Percentage
Valid
Cumulative
percentage
percentage
Very satisfied
5
16,7
16,7
16,7
Satisfied
12
40,0
40,0
56,7
9
30,0
30,0
86,7
3
10,0
10,0
96,7
1
3,3
3,3
100,0
30
100,0
100,0
Moderately satisfied Unsatisfied Not
at
satisfied Total
all
The results show that 40 % of the customers were satisfied with KELMA offer and 16.7 % of the customers are highly satisfied. Very few numbers of customers are not satisfied (10%) and not at all satisfied (3.3%). Generally, the majority of the customers are satisfied with KELMA offer. Reasons of satisfaction with the KELMA offer: The study has tried to find out the different reasons which are leading to the satisfaction level of the customers. The study has concluded that functionality and the proposed price were the major reasons which are contributing to the customer satisfaction. The results indicate that 12
20% of the respondents pointed to “service quality” as the reason of their satisfaction, 60% mentioned “functionality” as the reason of satisfaction with the KELMA offer (easy access to the menu, easier point-conversion procedure, good customer service). In addition, 60% of the respondents proposed priceas the reason oftheir satisfaction with the KELMAoffer: • 50% bonus under the permanent KELMA + promotion; • Gifts awarded to customers: a rich catalog of gifts (3 SMS packs, Dot 1 bonus, and 10 min communication), discounts on bills, end accessories. • Highly generous pointsconversion after 6 months: 1D = 30 points Table 7. Reasons of satisfaction
Number
Percentage Cumulative percentage
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Service quality
20
20%
60
60%
60
60%
% 18
Functionality
% 18
Proposed prices
%
Benefits of the KELMA offer: Tunisie Telecom has started to provide more service to customers for facing the competition. The opinion has been measured and discussed in the table 8. Table 8. Benefits of the KELMA offer The
KELMAoffer
has
more Number
Percentage
added value than competitors’
Valid
Cumulative
percentage
percentage
Yes
19
63,3
63,3
63,3
No
11
36,7
36,7
100,0
Total
30
100,0
100,0
The data clearly shown that 63.3% of the respondents believe, KELMA‟s offer is providing value to the customers. It is better than the competitors offer. 13
3.4.Dissatisfaction with the KELMA offer The study has focused on the reason for the dissatisfaction. Among the respondents, 40 % of the customers are not satisfied with KELMA offer (table 9) and 60 % of the customers are satisfied about the KELMA offer.
Table 9. Change of KELMA offer Number
Percentage
Valid
Cumulative percentage
percentage Yes
12
40,0
40,0
40,0
No
18
60,0
60,0
100,0
Total
30
100,0
100,0
The relationship between KELMA offer perception and satisfaction: To determine the relationship between the KELMA offer perception and customer satisfaction. The data have been cross tabulated. The relationship between KELMA offer prices and satisfaction: By comparing the responses to perceived KELMA offer prices and satisfaction, we found the following results: Table 10. The relationship between KELMA offer prices and satisfaction KELMA
offer
Not at all
Not
Moderately
satisfied
satisfied
satisfied
Very expensive
75%
25%
0%
0%
0%
Expensive
25%
75%
0%
0%
0%
Affordable
0%
0%
50%
44.4%
5.6%
Not expensive
0%
0%
0%
50%
50%
prices/
Satisfied
Very satisfied
satisfaction
The 50% of respondents who found the KELMA offer “not expensive” are very satisfied with it, 44.4% of customers who said it is “affordable” are satisfied. However, 75% who found the KELMAoffer as “very expensive” are not at all satisfied. This result shows that customer perceptionof price has a significant impact on satisfaction. To conduct a correlation analysis 14
between KELMA offer prices and customer satisfaction, we used Spearman and Kendall nonparametric tests as both variables are ordinal. The relationship between the price offer and satisfaction: For the proper analysis of the relationship between the price and satisfaction Spearman and Kendall correlation method has been adopted for analyzing the data. The detailed analysis is expressed in the table 11. Table 11. Spearman and Kendall correlation coefficients Correlation coefficient
Significance
Kendall
-0,724
0,000
Spearman
-0,766
0,000
From Table 11 above, it can be concluded that there is a significant negative relationship between KELMA offer prices and customer satisfaction. Accordingly, for Tunisie Telecom to satisfy its customer, it should act on the prices of the proposed offering. Thus, the lower the prices, the higher customers are satisfied. Then, we can conclude that Tunisie Telecom‟s corporate customer satisfaction is significantly and negatively influenced by their perception of prices. Consequently, there is a negative relationship between satisfaction and KELMA offer price perception. The relationship between KELMAservicequality and satisfaction: The relationship between KELMA service quality and customer satisfaction has also been measured at the 5 % significance level by using the Kendall and Spearman tests. Then, the highest service quality, the more Tunisie Telecom‟ customers is satisfied. Therefore, in addition to prices, Tunisia Telecom should ensure a better service quality to satisfy its customers. Table 12. Spearman and Kendall correlation coefficients Correlation coefficient
Significance
Kendall
0,967
0,000
Spearman
0,985
0,000
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Then, we can conclude that Tunisie Telecom‟s corporate customer satisfaction is positively influenced by perceived quality. Therefore, there is a positive relationship between satisfaction and perceived quality of the KELMA offer. The relationship between KELMA offer perception and satisfaction: The relationship between KELMA offer perception and customer satisfaction is statistically significant at the 5% level with a zero error probability for the Kendall and Spearman tests. Therefore, the higher customersare attracted to the offer, the higher their satisfaction. In fact, 100% who found the KELMA offer “very attractive” are very satisfied with it and 92.3% of them who found it “attractive” are satisfied. However, 100% of respondents who found the offer “not attractive at all” are not at all satisfied. This result shows that customer perception has a significant impact on their satisfaction. Table 13: Spearman and Kendall correlation coefficients Correlation coefficient
Significance
Kendall
0,975
0,000
Spearman
0,983
0,000
Then, we can conclude that Tunisie Telecom‟s corporate customer satisfaction is significantly and positively influenced by their perception of the KELMA offer. Therefore, there is a positive relationship between satisfaction and perception of the KELMA offer. Our research is an improvement of some works interested in study of consumer behavior in the telecommunication field. We note two relevants related works. The first one is made by Brian Low a, Wesley J. Johnston (2005) who throughout their developed model considers the special case of key account management as antecedent, two different types of moderator variables, relationship equity as a perception by the buyer, and switching behavior via adoption of newtelecommunication services as a result of this perception. The second paper is made by Chris Baumanna, b, Susan Hoadleyc, HaminHamind and Albert Nugrahae (2016). Their study makes a unique contribution to understanding and modelling customer loyalty by demonstrating the importance of the inclusion of customer perceptions of other factors as appropriate to market conditions.
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Conclusion The aim of this paper is to study Tunisie Telecom corporate customer satisfaction with the KELMA offer through their perception of price, quality and the KELMA offer. Specifically, the hypothesis under study is that perception of the KELMA offer (perceived price, quality and offer) impacts Tunisie Telecom‟s corporate customer satisfaction. The obtained results indicated that most corporate customers are satisfied with the KELMA offer who found that the proposed offer is attractive and the prices are not too high, allowing us to confirm that the KELMAofferperception has a positive impact on customer satisfaction. With these results, we recommend Tunisie Telecom‟s officials should constantly improve service quality, in particular with the current stiff competition.In addition; they should provide customers with more and more attractive offers to satisfy them and promote their loyalty to the KELMA offer and ultimately attract more customers. Moreover, the perception of the KELMA service (price, quality, offers) is found to strongly explain satisfactorily. Therefore, to satisfy its customers and make them loyal, Tunisie Telecom should differentiate itself, taking into account its service perception. Therefore, we recommend that the company should consider customer expectations about its service in order to better satisfy them. Our hope is that it will stimulate future research on this seemingly simple but important topic. The future work suggests it with regards to Telecom corporate customer satisfaction with the KELMA offer that it is too time consuming to start looking at other operators, regardless of how we have been treated.
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Www.tunisietelecom.tn
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