An Empirical Study to Identify Service Quality

107

An Empirical Study to Identify Service Quality Dimensions in the Indian Mobile Telecommunications Services Sector

Vikas Gautam PhD Scholar, The ICFAI University, Dehradun

Dr. Abhay Kumar Tiwari, Faculty Member, The ICFAI University, Dehradun

An Empirical Study to Identify Service Quality Dimensions in

the Indian

Mobile Telecommunications Services Sector ABSTRACT As the Indian government opened telecommunication sector for foreign players, it has also become increasingl y competitive. In such an environment, marketers are concerned about how to increase or maintain market share through better service qualit y. The paper presents the results of an empirical study in Dehradun, India that determines the dimensions of service qualit y in the Indian mobile

telecommunication

industry,

from

the

consumers’

perspective.

Exploratory factor anal ysis revealed 8 dimensions made up of 32 different attributes derived from literature. The eight dimensions were Emplo yee Performance, transmission Qualit y, Competitiveness, Credibilit y, Reliabilit y, Ethics & Critical Thinking Journal (Volume 2012 Issue 2)

www.franklinpublishing.net

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Support Attributes, Operational Efficiency, and Convenience. The sample comprised of 411 respondents. Key

Words:

Service

qualit y,

Indian

mobile

telecommunication

sector,

exploratory factor anal ysis.

INTRODUCTION Service organizations in India are facing tough competition in the global market because of liberalization and globalization of the Indian econom y. Hence, it is helpful for service organizations

to

know the customer service qualit y

perceptions in order to overcome the competitors and attract and retain the customers. Because of the globalization and liberalization of Indian econom y, Indian service sector has been opened for Multinational companies. In order to overcome the competition and to retain the world class service standards, Indian companies have been forced to adopt qualit y management programs.

Nerurkar (2000) analyzed the SERVQUAL dimensions in India and concluded that service qualit y should form the basis for all customer retention strategies. Services are defined as: the activities, which are involved in producing intangible

products

as

education,

entertainment,

food

and

lodging,

transportation, insurance, trade , government, financial, real estate, medical, consultancy, repair and maintenance like occupation. Qualit y has become a strategic tool for obtaining efficiency in operations and improved business performance (Babakus and Boller, 1992; Garvin, 1983; Phillips, Chang and Buzzell, 1983). This is true for the services sector too. Several authors have discussed the unique importance of qualit y to service firms and have demonstrated its positive Ethics & Critical Thinking Journal (Volume 2012 Issue 2)


109

relationship with profits, increased market share, return on investment, customer satisfaction, and future purchase intentions (Rust and Oliver, 1994). One obvious conclusion of these studies is that firms with superior qualit y products outperform those marketing inferior quality products. In services marketing literature, service qualit y has been concisel y defined as the overall assessment of a service by the customers. Service qualit y is playing an increasingl y important role in the present environment where there is no further scope for the companies to differentiate themselves other than the qualit y of the service provided by them. Delivering superior service qualit y than the competitors is the key for the success of any organization. But, the companies face difficulties in measuring the qualit y of services offered to the customers. Qualit y has become a strategic tool in obtaining efficiency in operations and improved performance in business. This is true for both the goods and services sectors. However, the problem with management of service qualit y in service firms is that qualit y is not easil y identifiable and measurable due to inherent characteristics of services which make them different from goods. With a large population, low telephone penetration levels, a considerable rise in consumers’ income, and spending owing to strong economic growth, India has emerged as an attractive business market in the world. In

case of

India,

the mobile telecommunication

industry turned

highl y

competitive since the government deregulated this sector. This decision of regulation opened the doors for private and foreign players to operate in the Indian market. The growth of operators in the Indian market has accelerated rapidl y from one operator in public sector to fifteen players in all over India. Consequentl y, the competition among these telecom players in India in obtaining and maintaining customers remains critical in spite of the fact that the Ethics & Critical Thinking Journal (Volume 2012 Issue 2)


110

customers have been very selective now in determining their choices based on the costs paid to receive the services and benefits obtained. In order to attract new customers and to retain the existing customers, mobile telecom service providers in Indian market are employing a variet y of ways such as providing customers with excellent services, modern looking equipments, courteous, skilful, well trained personnel, and supportive operative s ystems. Service providers expect that with excellent service, customers will be satisfied and if satisfied, they will become lo yal customers for the organization. The

significant

growth

of

service

providers

in

the

field

of

mobile

telecommunication sector has caused the appearance of buyer’s market. Buyer’s market is that t ype of market, where supply exceeds demand. In this situation of bu yer’s market, the customers get more bargaining power. Therefore in this situation, the service providers have to be very effective and efficient in their operations because customers now have choices in determining the service provider they want. In the context of customers, the need for excellent services always keeps on changing. With the passage of time, the level of service qualit y also varies. The interest in services marketing research on service qualit y and customer satisfaction has grown tremendousl y. A good number of researches have been conducted b y appl yi ng related theories and methods in the service industry. SERVQUAL and SERVPERF frameworks have been tested by various researches in different service setups to get reliability and validit y, and also to suggest the superiorit y of one scale over other. Many researchers from all over the world tried to develop different scales to measure service qualit y and customer satisfaction in different service environments. INDIAN MOBILE TELECOMMUNICATION MARKET: A GLANCE

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The mobile telecommunication service sector all over the world has been witnessing loft y growth rates in subscriber base in past ten years. In developing countries, this t ype of service is capturing an increasing share of the overall telecommunications market. India is one of the fastest growing mobile telecommunications markets among developing countries of the world. In the last five years, Indian telecommunication service market has grown from 13 million subscribers in 2003 to about 687.71 million subscribers in September, 2010, registering an unexpected annual growth rate (Telecom Regulator y Authorit y of India, September, 2010). According to the Cellular Operators Association of India (COAI), the Indian Cellular market is broadl y divided into four circles (zones) as follows:

S.N.

1

Name of Circle

A

Names of States

Maharashtra, Gujarat, Andhra Pradesh, Tamil Nadu, Karnatka

2

B

Andaman and Nicobar, Haryana, Kerala, Madh ya Pradesh, Punjab, Rajasthan, Uttar Pradesh (E), Uttar Pradesh (W), West Bengal

3

C

Assam,

Bihar,

Himachal

Pradesh,

Jammu

and

Kashmir, Orissa, North Eastern States 4

Four Metros

Delhi, Mumbai, Chennai, Kolkata

Table 1



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Table 2 Mobile Telecommunication Services Providers in India as of 30 Sep 2010 Name of Operator

Subscriber Base

Market Share

Rank

Bharti Airtel

143,292,272

21.34%

1

Reliance Communications

117,337,370

17.37%

2

Vodafone

115,553,042

17.08%

3

Tata Teleservices

79,071,716

11.47%

4

BSNL

78,321,735

11.31%

5

Idea

74,213,507

10.84%

6

Aircel

46,515,378

6.64%

7

Unitech

11,267,660

1.05%

8

Sistema

6,638,470

0.86%

9

MTNL

5,311,254

0.81%

10

Loop

2,983,299

0.45%

11

Videocon

4,482,272

0.43%

12

Stel

1,642,272

0.22%

13



113

HFCL Infotel

1,022,944

0.13%

14

Etisalat

56,583

0.005%

15

All India

687,710,364

100%

Source: http://www.trai.gov.in/WriteReadData/trai/upload/PressRel

OBJECTIVE OF THE STUDY Objective of the stud y is to identify the service qualit y dimensions / attributes in the Indian mobile telecommunications services sector. SCOPE OF THE STUDY The scope of the problem to be explored is restricted to the identification the service qualit y dimensions / attributes in the Indian mobile telecommunications services. The object of the current research is the mobile telecommunication services in Dehardun, a capital cit y of Uttarakhand, India, in which the mobile telecommunication service customers will serve as unit anal ysis. The choice of customers as respondents to meet the objectives of the present research work needs to fulfil the following criteria: 1. Must not be emplo yee of the mobile telecommunication services provider. 2. Must not be retailer of mobile telecommunication services provider. 3. Must be the customer of the mobile telecommunication services provider for at least six months. 4. Must be an active customer.

THE LITERATURE REVIEW Ethics & Critical Thinking Journal (Volume 2012 Issue 2)


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This chapter presents the theoretical foundation, based on the pertinent literature to the present research work by first reviewing the service qualit y concept, followed by criticism of SERVQUAL scale, service qualit y attributes and

service

quality

attributes

of

telecommunication

services.

SERVICE

QUALITY CONCEPT Services are described as something that can be bought and sold, but cannot be dropped on your feet. Various authors have defined services in different ways, but all contain a common theme of intangibilit y and simultaneous production and consumption. Quinn, Baruch, and Paquette (1987) proposed definition for services as follows: “Most authorities consider the services sector to include all economic activities whose output is not a ph ysical product or construction, is generall y consumed at the time it is produced, and provides added value in forms (such as convenience, amusement, timeliness, comfort, or health) that are essentiall y intangible concerns of its first purchaser”. Man y authors (for ex ample Gronroos, 1990, Bitran and Lojo, 1993, Parasuraman et.al., 1993 and Zeithaml and Bitner, 1996) prescribed definitions for services and concluded that for most of the services, there are four basic characteristics that differentiate them from the goods are:

1.

Services are of intangible nature; however degree of intangibilit y varies from service to service.

2.

Services are produced and consumed simultaneousl y to some extent.

3.

Services are activities or series of activities as compared to goods.

4.

The participation of consumer of service is essential to some extent.



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To understand services completel y all these four basic characteristics of services namel y Intangibilit y, Heterogeneit y, Simultaneous production and consumption, Perishabilit y need to be considered by the consumers. From customer point of view, the most flamboyant impression of service occurs in the moment of truth or popularly known as service encounter, when the customer directly interacts with the service firm. From the organization point of view, each moment of truth presents an opportunity to prove its potential as a quality service provider and to increase customer loyalt y. Moments of truth reflect the extent of service qualit y offered by the organizations

for

their

customers,

and

add

to

the

customer

overall

satisfaction about the qualit y of service. Every moment of truth involves an interaction between a customer and a service provider. Service encounter is a period of time during which customer directl y interacts with a service (Shostack, 1985). This interaction between service provider and customer need not be direct interpersonal

interaction.

Interaction

may

happen

without

nay

human

interaction element. A service encounter occurs every time a customer interacts with the service firm. There are three general t ypes of service encounters: remote encounter, phone encounters, and face-to-face service encounters. A customer may face any of these encounters individuall y or in combination in his/her interaction with service provider. Remote encounters occur when customer interacts with the organization through internet website or with a mail order service through automated dialin ordering. In remote encounters, the tangible evidence of the service and the qualit y of the technical processes and s ystems become the primary bases for judging qualit y of the services being provided by the service provider. Retail purchases, airline and railway ticketing, repair and maintenance troubleshooting are few examples of services available through internet. Ethics & Critical Thinking Journal (Volume 2012 Issue 2)


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In insurance and telecommunication organizations, the most type of service encounter between customer and the service provider occurs over the telephone, so here enters the phone encounter. In phone encounters, tone of voice, knowledge of emplo yees, and efficiency and effectiveness on handling issues of customers becomes important criteria to evaluate service qualit y in these encounters. A face to face service encounter is one that occurs between end consumer of service and emplo yee of a service organization. In this type of service encounter, both verbal and non verbal behaviours are important determinants of service qualit y, as tangible attributes of service qualit y come into picture in interaction process. In this t ype of service encounter, the customers also play an important role in creating service qualit y for themselves through their own behaviours during interaction process. As per the above discussion, to judge the qualit y of service it is imperative to have interaction between service providers and service consumers. In addition to product, place, price, and promotion, process, people, and service-scapes are also considered to evaluate the quality of services. Hartline and Jones (1996) found that many factors within service encounters can establish perceived value, whereas perceptions of qualit y and value may help in determining organizational effectiveness. Table 3 Reliability of SERVQUAL Study

Research

Reliability

(Author &

Instrument

(Cronbach’s

Year)

Factor Structure

alpha values)



117

Carman, 1990

Four modified

Mean of 0.75

Five to Nine factors

0.64 to 0.88

Four factors

0.80 to 0.93

Five factors, but different

SERVQUALs using 12-21 of original items Brensinger

Original 22

and Lambert,

items

1990 Parasuraman,

Original 22

Zeithaml, and

items

from a priori model.

Berry, 1991

Tangible dimension splits into two factors, while responsiveness and assurance dimensions loaded on a single factor

Finn and

Original 22

Lamb, 1991

items

Babakus and

Original 22

Boller, 1992

items

Cronin and

Original 22

Taylor, 1992

items

Kettinger and

Original 22

Lee, 1994

items

0.59 to 0.83

Poor fit for Five factor model

0.67 to 0.83

Five factor model not supported two factors

0.85 to 0.90

Unidimensional structure

Mean of 0.87

Four factor model, tangibles dimension dropped

Pitt, Watson,

Original 22

and Kavan,

items

0.62 to 0.87


Financial institution seven factor model with tangibles


118

1995

and empathy split into two; Consulting firm five factors, not matching the original; information s ystems service firm three factor model

Source: Van Dyke, T.P., L.A. Kappelman, and V.R. Prybutok. 1997. Measuring information s ystems service qualit y: Concern on the use of the SERVQUAL questionnaire. MIS Quarterly, 21, p202. Van Dyke, T.P., L.A. Kappelman, and V.R. Prybutok in 1999 summarised all the empirical and theoretical findings related to the critique of SEVQUAL instrument, and presented them in a tabled form by referencing various studies based on gap scores. Table 4 Problems identified in the literature Issue

Problem

Literature

Use of gap

Poor choice as a measure of a complex

Lord, 1958; Wall

score

ps ychological construct.

and Payne, 1973; Johns, 1981; Peter, Churchill, and Brown, 1993

Reliabilit y

Cronbach’s alpha overestimates the

Lord, 1958; Wall

reliabilit y of different scores.

and Payne, 1973; Johns, 1981;



119

Prakash and Lounsbury, 1983; Peter, Churchill, and Brown, 1993 Discriminant

Given the high correlation between the

Cronin and Taylor,

validit y

difference score and the perception score,

1992; Peter,

it is difficult to demonstrate that the

Churchill, and

difference score is measuring something

Brown, 1993

unique from the perception components. Spurious

Correlations between the gap scores and

Peter, Churchill,

correlation

other variable are artifacts of correlations

and Brown, 1993

with the components. Variance

Expectation scores are consistentl y

Peter, Churchill,

restriction

higher than Perception scores. This leads

and Brown, 1993

to a s ystematic variance restriction, which is problematic for many t ypes of statistical anal ysis. Validit y

The perception component of the

Parasuraman et. al.,

perception minus expectation scores

1988; Brensinger

performs better as a predictor of

and Lambert, 1990;

perceived overall qualit y than the

Cronin and Taylor,

difference score itself.

1992, 1994; Babakus and Boller, 1992; Boulding et. al., 1993

Ambiguit y of

Multiple definitions of expectations


Teas, 1993, 1994


120

‘expectation’

result in a concept that is loosel y defined

construct

and open to multiple interpretations. These various interpretations can result in serious measurement validit y problems.

Unstable

A theoretical construction combined with

Carman, 1990;

dimensionalit y the use of gap scores raise questions

Brensinger and

about the true factor structure of the

Lambert, 1990;

service qualit y construct.

Finn and Lamb, 1991; Parasuraman et. al., 1991; Babakus and Boller, 1992; Cronin and Taylor, 1992

Source: Van Dyke, T.P., L.A. Kappleman, and V.R. Prybutok. 1999. Cautions on the use of the SERVQUAL measure to assess the qualit y of information s ystem services. Decision Sciences, 30(3), p879. In a more recent stud y, Sanjay K. Jain, and Garima Gupta (2004) supported the argument that overall service qualit y is determined by perception onl y rather than the difference between expectation and perception. They empiricall y tested superiorit y

of

perception

based

SERVPERF

scale

and

Expectation

and

Perception difference score based SERVQUAL scale in Indian context with reference to fast food restaurants. They came out with the conclusion that SERVPERF scale is more convergent and discriminant valid explanation of the service construct possesses greater power to explain variations in the overall



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service qualit y scores,

and

are

also

more parsimonious data collection

instrument. The concept of service qualit y could not be well explained and understood without elaborating each attribute that make up the service qualit y. Service Quality Attributes Of Mobile Telecommunication Services Service qualit y has received a great deal of attention from both practitioners and academicians in the world. Lehtinen and Lehtinen (1982) conceptualized service qualit y as three dimensional construct namel y; physical, interactive, and corporate. Service qualit y is the perception which results from comparison of expectations

of

customers

and

performance

of

service

in

actual

part

(Parasuraman, Zeithaml, and Berry, 1985). In their further studies in this area, they pointed out that perceptions are not based onl y the outcomes of services, but it involve the service delivery process. Service

qualit y

comprises

of

attributes

like;

performance,

features,

conformance, reliabilit y, durabilit y, aesthetics, serviceability, and customers’ perceived qualit y (Garvin, 1988). SERVQUAL conceptualized as an instrument to measure the service qualit y consisting of the five dimensions namel y; tangibles, reliabilit y, responsiveness, assurance, and empathy (Parasuraman, Zeithaml, and Berry, 1988). But over the years SERVQUAL was criticized by many researchers across the world like; Carman, 1990, Cronin and Taylor, 1992, Babakus and Boller, 1992, and Strandvik and Lijander, 1994. The measurement of perceived service qualit y may remain a challenge for the researchers across the world. Past researches had suggested that dimensionalit y of service qualit y might depend upon t ype of service setup under study (Cronin and Taylor, 1992, Babakus and Boller, 1992). Ethics & Critical Thinking Journal (Volume 2012 Issue 2)


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Based on the above mentioned background, many studies had investigated different attributes, which help customers in determining service qualit y perceptions (Danaher and Gallagher, 1997; Woo and Fock, 1999; Johnson and Sirikit, 2002; Wang, Lo, and Yang, 2004; Moon-Koo Kim, Myeong-Cheol Park, and Dong-Heon Jeong, 2004, Olorunniwo, and Hsu, 2006; Lai et. al., 2007; Abdolreza Shih, Sanjit Kumar Roy, and Shirshendu Gangul y, 2008). A study in the New Zealand telecom services industry by Danaher and Gallagher (1997) conducted to conceptualize attributes required in personnel delivering the services to the consumers. Responses were collected from the respondents to find contributing factors of service qualit y in telecom services sector. The dimensions which emerged in their study were; friendliness, competency, clarit y of voice, and time taken to respond. Authors found that compared to voice clarit y and time taken to respond, competency and friendliness influence overall service qualit y. The exploratory study conducted by Woo and Fock (1999) reported the different attributes of telecom service qualit y as perceived by the customers. The stud y was conducted in the Hong Kong mobile phone services sector. Four factors were obtained b y conducting exploratory factor anal ysis with twent y attributes to assess mobile phone service qualit y. Authors mentioned four factors namel y; customer service, pricing policy, transmission qualit y and network coverage, staff competence. Johnson

and

Sirikit

(2002)

examined

the

applicabilit y

of

SERVQUAL

dimensions in Thai telecommunication industry. Data for the study were gathered from both landline and mobile users. The results suggested that the service

qualit y

concept

in

the

Thai

telecommunication

industry

is

a

multidimensional construct of service qualit y. Authors concluded the study that among five service qualit y dimensions, (tangibles, reliability, responsiveness,



123

assurance,

empath y)

tangibles

dimension

emerged

as

most

significant

dimension. Wang, Lo, and Yang (2004) conducted an empirical study in the China’s mobile communication market. They focused on measurement model of service qualit y based on SERVQUAL model, but with reasonable modifications to reflect industry specific attributes and culture of China. These modifications were based on focus group discussions and expert opinions. Network qualit y was created using two items resulted from focus group discussions and expert suggestions. Service qualit y scale was pilot tested with 80 respondents from China’s respondents. Exploratory factor anal ysis of 22 items resulted into six factors namel y; tangibles, reliabilit y, responsiveness, assurance, empathy, and network qualit y. Consequentl y with the help of disaggregate approach, authors identified key drivers of service qualit y, customer value, and customer satisfaction and the effect of customer perceived sacrifice on customer value was emphasized. They also checked for moderating effect of customer value on relationship between service qualit y attributes and customer satisfaction. Results of their study were indicating impact of service qualit y attributes and customer satisfaction on behavioural intentions statisticall y. Moon-Koo Kim, M yeong-Cheol Park, and Dong-Heon Jeong, (2004) conducted an empirical stud y in Korean mobile telecommunication services sector. The stud y was intended to investigate the effects of different features of service qualit y and switching barriers on customer satisfaction and customer loyalt y. They proposed a structural model for their study and tested the model with structural equation modelling technique. A sample of 350 respondents was collected by field survey approach of data collection in Korea. In the structural model, they found that service qualit y Ethics & Critical Thinking Journal (Volume 2012 Issue 2)


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indicators like; customer support, call qualit y, value added services had positive and significant impact on customer satisfaction. Also results provided evidences of positive and significant effects of customer satisfaction and switching behaviour on customer lo yalt y in Korean mobile telecommunication services sector. Olorunniwo, and Hsu, (2006) constructed to examine about the possibilit y that the t ypology of a service measurement scale may find the nature of service qualit y construct. Study was conducted in retail banking sector with primary data of 317 respondents from United States Metropolitan area. Confirmator y factor anal ysis resulted into five dimensions contributing to service qualit y (responsiveness, tangibilit y, reliabilit y, knowledge, and accessibilit y). Results showed that satisfaction mediates the impact of service quality on behavioural intentions. SERVQUAL instrument is a valid and reliable means for measurement of service qualit y (Lai, et. al., 2007). Authors conducted an empirical study in China’s mobile communication industry in 2007. Study was intended to test the applicabilit y of SERVQUAL scale. Exploratory factor anal ysis and confirmatory factor anal ysis results proved SERVQUAL scale as valid and reliable instrument to measure service qualit y. In their study, authors identified one more dimension to Five dimensional SERVQUAL construct, and the six dimensions were; tangibles,

reliability,

responsiveness,

assurance,

empathy,

and

service

convenience. Abdolreza, Ro y, and Gangul y (2008) conducted an empirical study in Indian mobile telecommunication services sector and concluded that reputation is intertwined with the perceived service qualit y and customer satisfaction, and with the help of public relation campaigns and innovative communication strategies, positive corporate reputation can be build and maintained, which ultimatel y help to increase customer satisfaction. The main objective of the Ethics & Critical Thinking Journal (Volume 2012 Issue 2)


125

research was to identify the underl ying factors of service qualit y that determine customer satisfaction, repurchase intention and recommendation of mobile service to others. Primary data for the stud y were collected in Indian cities namel y Delhi, Kolkata, Mumbai, and Hyderabad. 32 variables related to service qualit y were considered for the stud y, which were identified from the past literature. Exploratory factor anal ysis and multiple regression anal ysis were used to derive the conclusions. Based on values of beta coefficients hierarchy of factors was framed.

In

their

anal ysis

relational

qualit y,

competitiveness,

reliabilit y,

reputation and transmission qualit y factors emerged as significant predictors of customer satisfaction.

In hierarchy of factors competitiveness, relational

qualit y, and reliability were more important than rest factors. SUMMARY Earl y conceptualizations of service qualit y are based on the disconfirmation concept in the literature of physical goods. Gronroos (1983, 1984) defined service qualit y in terms of functional and technical quality. Later in 1988, Parasuraman,

Zeithaml,

and

Berry

proposed

five

dimensions

(tangibles,

reliabilit y, responsiveness, assurance, empathy) of service qualit y ‘SERVQUAL’ based on their empirical research conducted in different service industries. In view of the fact that perception of service qualit y is based on multiple dimensions, but there is no general concurrence over nature or content of dimensions. Various researchers across the world proposed different numbers of dimensions in service qualit y construct based on their empirical studies in different service environments. Gronroos in 1983, proposed two dimensions; Parasuraman,

Zeithaml,

and

Berry

in

1985,

proposed

ten

dimensions;

Parasuraman, Zeithaml, and Berry in 1988, proposed five dimensions Rust and Oliver in 1994 proposed three dimensions; Kettinger and Lee in 1994 proposed Ethics & Critical Thinking Journal (Volume 2012 Issue 2)


126

four dimensions; Avkiran in 1994 proposed six dimensions; Stafford in 1996 proposed seven dimensions; Bahia and Nantel in 2000 proposed six dimensions; Sureshchandar, Chandrasekharan, and Anantharaman in 2002 proposed five dimensions of service qualit y. Till today the conceptualization and measurement of service qualit y perceptions have been the most controversial topics in the literature of services marketin g including SERVQUAL measure of service qualit y. A review of literature has shown conceptual and measurement problems with SERVQUAL scale. The issues of concern are use of gap score (difference between expectation and perception score); applicabilit y of SERVQUAKL measure to different service industries and countries; ambiguous constructs; low validit y

and

reliabilit y;

non-uniform

dimensionalit y.

Because

of

above

mentioned issues SERVQUAL measure, applied in different service settings, produced sundry results. After the description of perceived service qualit y, service qualit y attributes, and service qualit y attributes of telecommunication services, then customer value as one of the constructs, which is closel y related to service qualit y requires to be elaborated. RESEARCH METHODOLOGY RESEARCH DESIGN To create a research design for the study appropriate measures and model are considered as per requirement of the research work. Since present research work will be based on primary data, which is to be collected from Indian mobile telecommunication services users with the help of structured questionnaire, a field based survey design will be used as data collection method. SOURCES OF DATA Ethics & Critical Thinking Journal (Volume 2012 Issue 2)


127

Primary data will be collected with the help of structured questionnaire b y employing field survey method.

POPULATION FOR THE STUDY The population for this research consists of subjects, who have experience with mobile telecom services in the state of Uttrakhand. RESEARCH INSTRUMENT In the context of current study, structured questionnaire with closed-ended questions will be used and responses will be measured on 5 – point Likert’s scale. The survey instrument for service qualit y attributes was developed based on a thorough literature review. As shown in table below, the variables included in the study have been extensivel y used in previous studies. Table 5 Service Quality Attributes Sr.

Item of the Scale

Literature

No. 1

2

Emplo yees are efficient and competent Cronin, [knowledgeable and skilful]

2000

Emplo yees are easil y approachable

Cronin,

Brady

and

Hult,

Brady

and

Hult,

Brady

and

Hult,

Brady

and

Hult,

2000 3

Emplo yees

are

courteous,

polite

respectful 4

and Cronin, 2000

Emplo yees listen to customers and are Cronin,



128

willing to help 5

Emplo yees

2000

are

pleasant,

friendl y

and Caruana, 2002

caring 6

The compan y makes efforts to understand Caruana, 2002 the specific needs of customers

7

The

compan y

provides

individual

and Caruana, 2002; Johnson and

personal attention to the customers 8

Sirikit, 2002

The compan y performs any service right Caruana, 2002 first time

9

All the records are maintained accuratel y Wang and Lo 2002; Lai et al. by the cellular compan y

2007; Johnson and Sirikit, 2002

10

The compan y provides accurate and timel y Ndubisi and Wah, 2005 information

11

The services provided the company is Olorunniwo and Hsu, 2006 prompt

[low

waiting

time

and

quick

response] 12

When

there

are

problems,

the

service Lai et al. 2007

provider is s ympathetic and reassuring 13

Complaint resolution or fault repair is fast

Athanassopoulos

and

Iliakopoulos, 2003 14

Emplo yees in the offices are neat and Caruana, 2002 clean



129

15

Physical facilities of offices are visually Caruana, 2002 appealing

16

The operating hours are convenient for the Wang and Lo, 2002 customers

17

The

advertisements

and

promotional Aydin and Ozer, 2005

campaigns of the compan y are effective 18

The

network

is

up-to-date

and

low Olorunniwo and Hsu, 2006

congestion problem [even in peak traffic hours] 19

The cellular compan y provides service Caruana, 2002 reliabl y, consistentl y and dependabl y

20

The cellular compan y is trustworthy and Caruana, 2002 its emplo yees are believable and honest

21

The compan y fulfils its promises

22

The services provided b y the company are Athanassopoulos competitive

23

Caruana, 2002 and

Iliakopoulos, 2003

The pricing of the services are reasonable Host and Andersen, 2004 and competitive

24

There is enough variet y of pricing plans Kim et al. 2004 available

25

The range and variet y of Value Added Aydin and Ozer, 2005 Services (SMS, Ring tones etc.) provided is comprehensive and competitive



130

26

The call qualit y (voice clarit y) is good and Kim et al. 2004 call drops are minimal

27

The coverage area of the company is wide

Aydin and Ozer, 2005

28

The compan y has sufficient presence in Aydin and Ozer, 2005 different geographical areas through own offices or dealers, franchises

29

It is eas y and convenient to take up a new Lai et al. 2007 cellular

connection

as

well

as

and

eas y

get

recharges and top-ups 30

The

billing

is

accurate

understand 31

to Levesque

and

McDougall,

1996

The cellular compan y has reputation and Aydin and Ozer, 2005 good image

32

The compan y is innovative and forward Aydin and Ozer, 2005 looking

SAMPLING PLAN The data will be collected through a schedule. A multistage cluster sampling method (Probabilit y sampling method) was employed for this research work. The stud y was conducted in the cit y of Dehardun in Uttrakhand, the northern state of India. Sixt y wards are considered as clusters, and seven clusters out of total sixty clusters in Dehradun were selected randoml y. From these seven wards, a total of 350 respondents were selected.



131

A pilot stud y was conducted to ascertain the suitabilit y of the research instrument (n=88) in Indian mobile telecommunication setting, because all the items were taken from literature. Reliabilit y check has been performed to know the suitabilit y of the construct for this industry. After ascertaining the suitabilit y of construct, the questionnaire was administered to the customer’s sample size of 350 respondents. Out of these circulated questionnaires, incomplete questionnaires were kept out of study. Onl y completel y filled questionnaires were considered for the anal ysis. A total of 343 questionnaires were found to be suitable for the study. Since pilot stud y results were in the favour of the construct, those responses were also included in the sample. Therefore total sample size for the study was 411. DATA PRESENTATION DATA ANALYSIS AND FINDINGS The SPSS software package 17.0 version was used for anal yzing the data collected for this stud y. The Microsoft –Excel software package was also used to make some basic computations like calculation of the mean values etc. RELIABILITY AND VALIDITY ANALYSIS RELIABILITY Reliabilit y coefficient tested b y using Cronbach’s alpha anal ysis. In order to measure the reliability for a set of two or more constructs, Cronbach alpha is a commonl y used method where alpha coefficient values range between 0 and 1 with higher values indicating higher reliabilit y among the indicators (Hair et al., 2008). Therefore, 1 is the highest value that can be achieved. In accordance with the Cronbach’s alpha test, the total scale of reliabilit y for this stud y varies from 0.704 to 0.952, indicating an overall higher reliabilit y Ethics & Critical Thinking Journal (Volume 2012 Issue 2)


132

factors. The reliabilit y of this study is substantial in every perspective (See table 6), as the highest reliabilit y value that can be achieved is 1.0. Table 6 S.N.

Name of Construct

No. of Items

Cronbach’s alpha

1

Service qualit y attributes

32

.935

2

Customer value

2

.704

3

Customer satisfaction

3

.781

4

Customer lo yalt y

8

.866

5

Overall

45

.952

VALIDITY Validit y is the degree to which a measure accuratel y represents what it is supposed to (Hair at al., 1998). According to Nunnal y (1978), there are three type of validit y that can be assessed: content validit y, predictive validit y, and construct validit y. Content validit y is the assessment of the correspondence between the individual items and the concept (Hair et al., 2008). The current stud y addressed the content validit y through the review of literature, and adapting instruments used in previous research. Construct validit y of all the constructs used in the present study was evaluated by employing explorator y factor anal ysis. EXPLORATORY FACTOR ANALYSIS The results obtained from survey respondents of the study had been thoroughl y anal yzed and the outputs of the results have been clearl y explained. Appl ying Ethics & Critical Thinking Journal (Volume 2012 Issue 2)


133

SPSS 17.0 version, the Principal Component Anal ysis (PCA) was carried out to explore the underl yi ng factors associated with the items. The constructs validit y was tested appl ying Bartlett’s Test of Sphericit y and the Kaiser–Mayer–Olkin (KMO) measure of sampling adequacy anal yzing the strength of association among variables. The KMO measure of sampling adequacy was first computed to determine the suitabilit y of using factor anal ysis. It helps to predict whether data are suitable to perform factor anal ysis.

KMO is used to assess which variables to drop from the model due to multicollinearit y problem. The value of KMO varies from 0 to 1, and KMO overall should be 0.60 or higher to perform factor anal ysis. If this does not have achieved, then it is necessary to drop the variables with lowest anti image value until KMO overall rises above 0.60. Result of the Bartlett’s test of Sphericit y and the KMO revealed that both were highl y significant and eventuall y concluded that these variables was suitable for the factor anal ysis (See table 7below). Table 7 KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure .723 of Sampling Adequacy. Bartlett's Test of Sphericit y Approx. Chi-Square

8983.732

Df

496

Sig.

.000



134

Deciding upon the number of factors that can be retained is difficult but initial runs-based on Eigen values showed eight factors. To determine the minimum loading necessary to include an item in its respective constructs, Hair et al. (2008) suggested that variables with loading greater than 0.40 is considered significant, loading greater than 0.40 more important, and loading 0.50 or greater are very significant. For this study, the general criteria were accepted items with loading of 0.40 or greater. Not a single item or variable had been dropped out under this circumstance which means the factor anal ysis ran on an ultimate success. The exploratory factor anal ysis resulted into eight factors with 69.624% of total amount of variance extracted. The values of the following Table indicate the affiliation of the items to a factor. Generall y, the factor is the natural affinit y of an item for a group. The higher loading (factor) indicates the stronger affiliation of an item to a specific factor. The findings of this study indicate that each of the items was homogeneousl y loaded to the eight different factors. That means each of the items that loaded into eight different factors.

Table 8 S.N. Name of Factor

Name of Item

Specific

needs

of

Eigen

Factor

Value

Loadings

Reliabilit y

0.561

customers Personal attention Sympathetic

0.503 and

0.611

reassuring



135

Efficient

and

0.545

competent employees Easil y

approachable

0.527

emplo yees Courteous, 1

Emplo yee

and

Performance

emplo yees

polite

,

0.696

respectful 10.340

0.864

Helpful employees

0.788

Pleasant, caring, and

0.698

friendl y emplo yees Up-to-date and low

0.617

congestion network Good call qualit y 2

Transmission Qualit y

0.761

Wide coverage area

2.515

Sufficient

presence

in

different

0.772

0.821

0.656

geographical areas Competitive services

0.569

Competitive pricing

0.747

Enough

0.590

variet y

of

pricing plans 3

Competitiveness

Comprehensive competitive

and

2.221

0.587

0.762

value



136

aided services Accurate

records

0.619

Accurate information

0.624

Reputation

0.617

maintained

and

image 4

Credibilit y

1.761 Innovative

0.731

and

0.754

and

0.720

forward looking Reliabilit y consistency 5

6

Reliabilit y

Support Features

Trust

1.600

0.578

Promises fulfilled

0.595

Employees neat and 1.352

0.587

0.767

0.704

clean Visuall y

appealing

0.573

ph ysical facilities of offices Effective

0.775

advertisements

and

promotional campaigns First

time

right

0.795

service Ethics & Critical Thinking Journal (Volume 2012 Issue 2)


137

Prompt service

0.502

Fast

complaint

0.504

Accurate and eas y to

0.654

resolution 7

Operational Efficiency

understand billing 1.305 Convenient operating

0.785 0.815

hours of company Convenience taking 8

Convenience

new

in

0.682

mobile

connection

or 1.186

0.711

recharge

DISCUSSION The purpose of the stud y was to identify the underl ying service related factors in the Indian mobile telecommunication context. Exploratory factor anal ysis resulted into eight factors namel y; Employee Performance, transmission Qualit y, Competitiveness,

Credibilit y,

Reliability,

Support

Attributes,

Operational

Efficiency, and Convenience. Eight items loaded on the employee performance dimension with variance of 32.311 percent, transmission qualit y with four items contributes a variance of 7.860 percent, competitiveness accounts for 6.904 percent variance with four items, credibilit y explains 5.504 percent with four items, reliabilit y for 5.000 percent variance with three items, support features for 4.224 percent variance



138

with three items, operational efficiency for 4.077 percent variance with four items and convenience with two items contributes 3.708 percent variance. Exploratory factor anal ysis was conducted to fond underl ying dimensions for service qualit y. The first underl ying dimension for service qualit y is employee performance, which comprises items such as Specific needs of customers, Personal attention, Sympathetic

and

reassuring,

Efficient

and

competent

employees,

Easil y

approachable employees, Courteous, polite , and respectful employees, Helpful employees, Pleasant, caring, and friendl y employees. The second underl yi ng dimension for service qualit y is transmission qualit y, which comprises items such as Up-to-date and low congestion network, Good call

qualit y,

Wide

coverage

area,

and

sufficient

presence

in

different

geographical areas. The third underl ying dimension for service qualit y is competitiveness, which comprises items such as Competitive services, Competitive pricing, Enough variet y of pricing plans, and Comprehensive and competitive value aided services. The fourth underl ying dimension for service qualit y is credibilit y, which comprises items such as accurate records maintained, accurate information, Reputation and image, and Innovative and forward looking. The fifth underl ying dimension for service qualit y is reliabilit y, which comprises Reliability and consistency, Trust, and Promises fulfilled. The sixth underl ying dimension for service qualit y is support attributes, which comprises items such as Emplo yees neat and clean, visuall y appealing physical facilities of offices, and Effective advertisements and promotional campaigns.



139

The seventh underl ying dimension for service qualit y is operational efficiency, which comprises items such as

First time right service, Prompt service, Fast

complaint resolution, and Accurate and eas y to understand billing. The eighth underl ying dimension for service qualit y is convenience, which comprises

items

such

as

convenient

operating

hours

of

company,

and

convenience in taking new mobile connection or recharge. CONCLUSIONS The current research has succeeded in identifying a list of dimensions that underpin service qualit y. In the fast paced environment that surrounds industries today, companies find themselves faced with the pressure to discover foolproof ways to manage their businesses. Mobile telecommunication industry in India is no exception and is undergoing revolutionary changes. Competition has been central to the agenda of all companies and it has become one of the enduring themes of our time. Major players in the market have to concentrate on retaining existing customers, which could offer huge business potential. Employee Performance, transmission Qualit y, Competitiveness, Credibilit y, Reliabilit y, Support Attributes, Operational Efficiency, and Convenience creates advantage, but the decisive test comes in how these are used by the players to differentiate themselves. The service qualit y dimensions provided could be a basis for differentiation for the different mobile telecommunication players, which could be developed into a Sustainable Competitive Advantage in the long run. These Non-monetar y instruments usuall y ascribed more potency than price changes, because they are difficult to imitate. An y reaction from the competitors to match any of these may require a change in the entire service strategy.



140

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