Mobile Industry of Pakistan

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Business and Economics Research Journal Volume 1 . Number 3 . 2010 pp. 35-44

Đşletme ve Ekonomi Araştırmaları Dergisi Cilt 1 . Sayı 3 . 2010 ss. 35-44 ISSN: 1309-2448

Customer Satisfaction for Cellular Phones in Pakistan: A Case Study of Mobilink Shakir Hafeeza SAF Hasnub

Abstract: Abstract Customer satisfaction is a crucial element for the success of all businesses. One of the biggest challenges for a market is how to satisfy and retain the customers. The purpose of this study is to find the level of satisfaction and loyalty among the users of cellular phones. This study is based on Mobilink’s prepaid customers. The findings suggest that overall customer satisfaction and customer loyalty is comparatively low among the customers of Mobilink. The Customer loyalty in Pakistan’s mobile sector is relatively low because it is an emerging industry, new players are entering in this market and customers are more fascinated to try the new service providers. However it is expected that when the industry will be well established, the results will be more comparable to other studies. Keywords words: Keywords Customer satisfaction, Customer loyalty, Mobile telecommunication, Regression model, Drivers of customer satisfaction, Pakistan Classification: JEL Classification M30, M31

1. Introduction In each company, customers are the most important element and are required to be handled and managed properly. The customers are satisfied when their expectations are fulfilled and delighted when their expectations are exceeded. Contented customers remain loyal buy more are less sensitive and speak positively about the company (Brown et al., 1992). Customer satisfaction normally indicates customer response to the state of fulfillment, and customer opinion of the fulfilled condition (Oliver, 1997). Kotler (1997) defines customer satisfaction as: “Satisfaction is a person's feelings of pleasure or disappointment resulting from comparing a product's perceived performance (or outcome) in relation to his or her expectations. Recently the concept of customer satisfaction has received much attention. Satisfaction may be defined as a consumer’s post-purchase evaluation of a product or service (Zeithaml & Bitner, 2003). In the past, many businesses took their customers for granted. The customers often have no other choice, or the market is growing so fast that the company could drop 100 customers per week, but acquires another 1000 customers and believes its sales to be satisfactory. Such a company, working on a `leaky bucket’ theory of business, considers that there will continuously be adequate customers to take the place of the defecting ones. One of the main reasons for the mounting importance on customer satisfaction is that higher customer satisfaction can direct to a stronger competitive place consequential in amplified market segment and earnings resulting in decrease price elasticity, drop business cost, reduce failure cost, Lecturer, COMSATS Institute of Information Technology, Department of Management Sciences, Abbottabad, Pakistan, b Prof., COMSATS Institute of Information Technology, Department of Management Sciences, Abbottabad, Pakistan. a

Customer Satisfaction for Cellular Phones in Pakistan: A Case Study of Mobilink

and cut down the cost of attracting new customers (Fornell, 1992). Satisfied customers purchase more and inform other people regarding their experiences (Fornell et al., 1996). Companies should listen to and satisfy their customers. Numerous studies have shown that the long-term success of a company is closely linked with their ability to adapt to the needs of customers and varying preferences (Li et al., 2006; Takala et al., 2006). Although Customer Relationship Management was popular as a means to tie customers to the company through different loyalty schemes, it left perhaps the greatest source of value-leveraged: the knowledge residing in customers (Gibbert et al.,...
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