Customer Satisfaction

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Chapter 1
Introduction
1.1 Background
Customer Satisfaction is one of the most important issues concerning business organizations of all types, which is justified by the customer oriented philosophy and the main principle of continuous improvement of modern enterprises. Thus, customer satisfaction measurement may be considered as a most reliable feedback considering that it provides in an effective, direct, meaningful and objective way regarding the clients’ preferences and expectations. The main aim of this paper is to measure the customer satisfaction of the GSM users of NTC .Nepal Telecom, the largest telecommunication company of the country has been providing various kinds of services, namely PSTN landlines, ADSL, GSM and CDMA mobile phone services. There are about 6 million users of NTC including all the services where around 4.5 million people subscribe GSM mobile phones. NTC is the sole provider of all the services other than GSM mobile. With the entry of Ncell in the Nepali market as a provider of GSM mobiles, the competition in this field has hiked to the new level. However other service providers like UTL, Smart Phones and Satellite mobiles are too struggling hard to sustain in the market. Under such tough competition, time has come that every telecom service provider to understand the need of the customers and act accordingly to retain the maximum numbers of customers and not let them switch to other service providers.

1.2 HISTORY OF GSM

The Global System of Mobile Communications (GSM) is a digital technology with a worldwide acceptance and plays an important role in the socioeconomic development of countries. Thus, several management experts have paid research attention to this industry (one of the studies done concerns the customer satisfaction). Customer satisfaction is the assessment of the performance of a product or service by customers and this construct is important for successful business performance. The Global System of Mobile Communications (GSM) is a second-generation digital technology, which was originally developed in Europe and in less than ten years after the commercial launch, it developed into world’s leading and fastest growing mobile standard (GSM Assoc., 2006). Lonergan et al. (2004) reported that at the beginning of 2004, there were over 1.3 billion mobile phone users worldwide and by 2007, the demand for mobile services would have grown at an average annual rate of 9.1%. The GSM Association estimates that the GSM technology is used by more than one in five people of the world's population, representing approximately 77% of the world’s cellular market and is estimated to account for 73% of the world’s digital market and 72% of the world’s wireless market (GSM Assoc., 2006). This growth principally results from the establishment of new networks in developing countries rather than from an increase in mobile access lines in developed countries (Serenko and Turel, 2006).

1.3 Introduction to NTC and GSM service in Nepal

Nepal Telecom (NT) is the leading and the largest telecommunication company of Nepal. It is officially named Nepal Doorsanchar Company Limited (NDCL). It was a former government corporation known as Nepal Telecommunication Corporation (NTC) with monopoly in telecommunication services in Nepal. It was converted to a public limited company on April 14, 2004. NT has sold around 10% of its share to local market and company's employees in 2008. Nepal Telecom was the only provider of basic telephony services in Nepal until United Telecom Limited started providing services in 2003. GSM service was launched by NTC in 1999. There are more than 4.5 million users of NTC GSM service which includes both prepaid and postpaid services offered. Following the entry of Ncell into Nepal's telecommunications industry in 2005, it is no longer the only provider of GSM service. However,, the popularity and demand of GSM service in Nepal is increasing day-by-day. Customers are...
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