European Journal of Social Sciences ISSN 1450-2267 Vol. 34 No 1 September, 2012, pp.118-137 © EuroJournals Publishing, Inc. 2012 http://www.europeanjournalofsocialsciences.com
Perceived Service Quality and Customer Satisfaction: An Empirical Investigation of the Rebranded Telecommunication Companies in Jordan Anood E. Haddad Marketing Department, Faculty of Business University of Jordan, Jordan Hani Al-Dmour Marketing Department, Faculty of Business University of Jordan, Jordan Zu’bi M.F. Al-Zu’bi Corresponding Author, Business Management Department Faculty of Business, University of Jordan Jordan University of Jordan P.O. Box 13413 Amman, 11942 Jordan E-mail:
[email protected] Tel: +962 79 562939 Abstract The Jordanian telecommunication market has witnessed two major rebranding practices over the past several years. The two major dominating mobile operators, formerly called Fastlink and Mobilecom, have announced changes to their corporate image and marketing strategies by merging into global corporations. These mergers resulted in the rebranding of their company names into Zain and Orange, respectively. This rebranding effort came rather unexpectedly to customers, leaving them with differing experiences and opinions about the quality and number of services offered. The intense media campaigns that were launched to inform consumers about the new changes have created a sense of anticipation, curiosity and heightened expectations towards the quality of services and prices that these companies will offer. This research aims to test the effect of the perceived quality of service of these rebranded telecommunication companies on customer satisfaction. Furthermore, we explore the influence of demographic variables on the variance in customer satisfaction. Data was collected from a sample of 385 subscribers through a convenience sampling throughout the different governorates of Jordan. Findings indicated that the dimensions of perceived services’ quality, which include tangibles, reliability, responsiveness, competence and empathy, were found to have an effect on customers’ satisfaction. It was found that reliability has the most significant influence on customers’ satisfaction and responsiveness has the least significant effect. Findings also revealed that demographic variables such as age, income, education, occupation, and residence location play a moderate role in customers’ satisfaction.
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European Journal of Social Sciences – Volume 34, Number 1 (2012)
Introduction Rebranding has become a common feature of the mobile telecommunication industry in Jordan. Major telecommunication brand identities that were initially successful in the local market have been swept away by new international parent companies pursuing the benefits of international homogeneity and economies of scale in marketing their products and services. Such rebranding was not completed without risk. Not only did it require a significant budget to execute an intensive rebranding campaign, but these companies had to be aware of the viability of this idea among many different groups, as it can interfere with a customer's sense of loyalty to a telecommunication service provider (the terms “telecommunication service provider” and “telecommunication company” will be used interchangeably hereinafter), and make them more inclined to consider a switch to a rival operator with a more established, familiar brand. As a result of rebranding, perception of services’ quality has most likely changed and therefore altered customers’ feelings towards the company, especially with much competition bombarding customers with different options, offers and rate plans on a daily basis. Customer satisfaction is most likely affected by the new perceived image of services’ quality of these rebranded telecommunication companies. As is the case is with any service organization, telecommunication companies in Jordan are continually looking for ways to increase customers’ satisfaction. In this research, the effect of the perceived quality of mobile services offered by these rebranded telecommunication companies in Jordan on customers’ satisfaction will be examined. Furthermore, the variance in customers’ satisfaction caused by the different customers’ demographic characteristics will be explored.
Problem Background ,In recent years the mobile industry in Jordan has shifted from being a luxury to a necessity, as is illustrated by the emergence of four operators; Zain, Orange, XPress and Umniah. Customers believe that, although the entrance of MobileCom to the cellular market served to break Fastlink’s monopoly, pricing had not been impacted dramatically until Umniah entered the market and introduced low tariff rates, which subsequently reduced pricing structures. This has made the Jordanian telecommunication market one of the most competitive and crowded markets in the region. The high competition in the telecommunication market in Jordan has not only provided many options to customers, but has also created a high level of awareness of this industry; users are more conscious about the rates they are offered, and as a result they should be addressed through intelligent methods that attract them and focus on their needs to form a positive image of the company’s services’ quality. This challenging environment has driven most of the telecommunication operators to follow defensive strategies to sustain their subscribers. While the rebranding of the Jordan Telecom Group to Orange helped reduce churns by the convergence of mobile, fixed and internet areas, the rebranding of Fastlink to MTC’s Zain helped to increase the company’s capital and rank it as one of the top 10 worldwide brands. The customers’ perceived services’ quality of these rebranded telecommunication companies is presumed to have changed as a result of the rebranding, which might consequently affect customers’ satisfaction about their service providers. A sound rebranded company image is highly influenced by its quality of service. A company's ability to communicate a favorable and progressive image to its many publics places it ahead of its competition, and subsequently has a profound effect on the bottom line. Mobilecom’s Rebranding to Orange Orange is the key brand of France Telecom Group, one of the world's leading telecommunication operators with over 153 million customers in 220 countries worldwide. On the other hand, Jordan Telecom Group’s (JTG) GSM operator, formerly known as MobileCom, is a leading wireless provider in the Kingdom of Jordan. It combines local Jordanian capability with the technological advantages 119
European Journal of Social Sciences – Volume 34, Number 1 (2012) and network management experience of France Telecom, its strategic partner. Mobilecom was first registered on 21st September, 1999, and had launched full public service across the Kingdom of Jordan on 15th September, 2000. (www.orange.jo) Jordan Telecom Group’s decision was proclaimed in 2006 to integrate the fixed retail business unit, the mobile business unit, the internet and data business unit, the content business unit, and the wholesale business unit as one giant integrated operator in Jordan. In 2007, Orange was launched in Jordan through Jordan Telecom Group (JTG), providing integrated fixed, mobile, internet and content services. JTG has announced the complete roll out of Orange’s comprehensive services in the Kingdom with the rebranding of MobileCom, the Group’s GSM operator, under the Orange brand, the commercial brand of France Telecom Group (FTG). With this move, Orange became the sole commercial brand for JTG’s fixed, mobile, and internet services (www.orange.jo). Accordingly, the Jordan Telecom Group has started adopting the Orange brand name for all its services as part of a strategic plan aimed at providing the local market with world class services and products. Fastlink’s Rebranding to Zain Kuwait's Mobile Telecommunications Company (MTC) Group, which operates mobile telecom service in 21 countries in the Middle East and Africa, has unveiled the new corporate identity "Zain" and switched over to the new name with an immediate effect. Zain Group operates in Nigeria, Kenya, and the other 12 countries scattered across East, Central, and West Africa regions. The group's operation in Jordan has been part of the earlier rebranding efforts of Zain. (www.zain.jo) Fastlink, now rebranded to Zain, was founded in 1995 and was the first operator to introduce mobile phone services into Jordan. Since its inception, Fastlink has tallied subscriber growth at an exponential rate. In January 2003, Mobile Telecommunications Company K.S.C. acquired Fastlink. Officials announced that the purpose behind the rebranding of MTC and its global operations is to bring together all its operations under a single, strong and unique identity. The Zain brand adopted the new theme “A Wonderful World.” According to Al Barrak, MTC Group’s Chief Executive Officer, the new logo and its colorful identity, the ‘swirl,’ communicates the idea of an aura, something important to human life echoing growth, progression and diversity. Online sources clarified that MTC has created a brand identity that was planned to play well in its Arabic speaking region as a whole. However, its reception has varied from market to market. The early reaction in Jordan has been decidedly mixed. Fastlink's rebranding to Zain has competed for attention alongside its rival Mobilecom's recent evolution into Orange. The marketing costs of Zain’s rebranding have been significant. Zain has gone to great lengths to coordinate the withdrawal of its old brands from billboards and advertisements and make a big marketing splash to mark its launch in Jordan. Given that profits have grown significantly over the previous years, Zain's quest for international recognition is currently its top priority.
Problem Definition The research questions of this study are as follows: “What is the effect of the perceived quality of service for the rebranded telecommunication companies (i.e. Zain and Orange) in the Jordanian market on customers’ satisfaction? Does customer satisfaction vary according to the different demographic characteristics?” Research proves that customer satisfaction is affected by multiple dimensions of perceived services’ quality (Lee et al., 2000; Johnson (1995), which will be discussed and addressed in this paper through providing answers to the following questions: 1. What is the effect of the perceived services quality on customers’ satisfaction for the rebranded telecommunication companies in Jordan? 120
European Journal of Social Sciences – Volume 34, Number 1 (2012) 2. Which quality of service dimension has the highest effect on customers’ satisfaction for the rebranded telecommunication companies in Jordan? 3. Does customer satisfaction vary according to the different customers’ demographic characteristics? 4. Is the relationship between customers’ perceived service quality and customers’ satisfaction the same for each of the two rebranded telecommunication companies in Jordan (i.e. Zain and Orange)?
Importance of Rebranding The rebranding topic is crucial in consideration of the tremendous cost involved, especially as the brands of the two major telecommunication companies in Jordan have been radically changed into convergent companies with broader services, different brand names and logos. Employees working in these companies have described the changes typically involved in rebranding any organization from its buildings and advertising campaigns to its business cards and promotional giveaway items. These changes present a picture of the large amount of work and the high costs involved. This is aside from the resulting effects on the different stakeholders, the most important of which are the customers, shareholders and the employees themselves. Furthermore, having been an employee at a Jordanian telecommunication company which operates on iDEN technology for 3 years and an Iraqi telecommunication company which operates on CDMA technology for nearly 2 years, the researcher has gained a considerable amount of experience in the marketing field. Combining work experience with the knowledge learned through Masters Studies, the researcher has become aware of the difficulties surrounding the corporate rebranding process, and how the size of an organization is directly proportional to the large capital investment and human effort required for a successful campaign. In light of that, this study explores the perceived services quality of the rebranded service providers and its effect on customer satisfaction. It will be clearly noted from the data analysis results that many of these customers still associate with the prebranding era and commonly refer to these telecommunication companies by their former names (i.e. Fastlink and Mobilecom). Normally, companies develop a strategic plan based on feedback received from several entities, with customers being the most important source. Therefore, this research provides significant and crucial feedback to the two major operators (Zain and Orange) along with basic information to develop strategies to increase sales and profits as well as safeguards to overcome and avoid any impediments to growth.
Literature Review This section covers different studies and views on the topics related to rebranding, perceived company image, customer satisfaction and other related variables undertaken in this study. Theoretical Concepts Corporate Brands and Corporate Image To understand what rebranding is about, it is necessary to begin with defining branding. A “brand” can be identified as “a name, term, symbol, design or a combination of them” (Pride & Ferrel 1988). Aaker (1991) has emphasized that the name is a critical, core sign of the brand, the “basis for awareness and communications effort.” Since the name can bring inherent strength to a brand, brand names need to be actively managed in order to influence external stakeholders. Hatch and Schultz (2003) describe corporate branding as an organizational tool whose successful application depends on attending to the strategic, organizational and communicational context in which it is used. The authors conclude that 121
European Journal of Social Sciences – Volume 34, Number 1 (2012) corporate brand management is a dynamic process that involves keeping up with continuous adjustments of vision, culture and image. McDonald et al. (2001) have examined the issues associated with the creation and development of service brands in corporate branding. They initially consider the increasing importance of the services sector, the appropriateness of corporate versus individual branding and how service organizations have challenged the traditional approach to business. They also outline the differences between product and service branding and consider how the fast-moving consumer goods (FMCG) approach to branding needs to be adjusted for the services sector. Particular emphasis is placed on the intangible nature of services and corporate branding and how problems linked to intangible offerings can be overcome through the significant roles that employees and consumers play in the delivery and strengthening of the corporate service brands. On the other hand, corporate image, in its simplest definitions, is how the stakeholders perceive a brand. Muzellec et al. (2003) suggest that corporate image may be defined in a variety of ways. It is sometimes referred to as the global evaluation of a corporation by an external stakeholder (Dowling 2001). Dowling (2001) also emphasizes that corporate image is a set of beliefs and feelings about an organization. Different stakeholders form different corporate images and reputations. Balmer and Gray (2003) examine the nature, importance, typology, and management of corporate brands. A key thesis of the article is that a corporate brand is a valuable resource: one that provides an entity with a sustainable, competitive advantage if specific criteria are met. The authors argue that employees are crucial to the success and maintenance of corporate brands. They speculate that the current interest in corporate brands is redolent of a new dynamic in marketing. Rebranding In general, rebranding represents updating or changing the image of a brand in the minds of the different stakeholders involved. Muzellec et al. (2003) state that “corporate rebranding aims to modify the image (the perceived-self) and/or to reflect a change in the identity (the core-self)” of a company. “Rebranding” is also defined by Al Shebel (2007) as the repositioning, revitalizing, or rejuvenating of a brand (Al Shebil , 2007). The term “rebranding” actually assumes that a brand existed prior to the change of name, as the prefix ‘re’ signifies that the action is in fact performed for the second time. Corporate rebranding aims, therefore, at modifying the perceoptions of stakeholders (Muzellec, 2006). Amongst the formal signals, corporate rebranding is probably the strongest possible way to signify that something in the company has changed (Kapferer 2002). Changing the name of a company in a corporate rebranding exercise is the riskiest strategy of all. Margulies (1977) explains that for a name change to be successful, a company needs to have a clear idea of why it is necessary and what the company expects the results will be. Gotsi and Andriopoulos (2007) have generated empirical insights into the key pitfalls in the corporate rebranding process, whereby an exploratory qualitative study was performed that included 14 personal semi-structured in-depth interviews with executives involved in the corporate rebranding of a leading telecommunications firm, and a review of relevant archival materials. The findings highlight common reports of four key pitfalls in corporate rebranding: Disconnecting with the core; Stakeholder myopia; Emphasis on labels, rather than meanings; One company, one voice or the challenge of multiple identities. The overall rationale for corporate rebranding is to send a signal to the marketplace in order to communicate to stakeholders that something about the organization has changed. Therefore it is crucial that the organization really does have something new to say and that it is communicated effectively at the time of the change (Stuart, 2003) .There are just about as many reasons to rebrand a business as there are ways to do it. Some of those reasons are positive (for example two organizations have merged or a company has significantly expanded its offering), while others are more negative (the current brand has been tainted in some way or has become outdated). Rebranding can be triggered by structural factors such as internationalization, mergers and acquisitions, spin-offs, diversification or divestment (Muzellec, Lambkin et al. 2003). 122
European Journal of Social Sciences – Volume 34, Number 1 (2012) Muzellec et al. (2003) provide four general drivers for rebranding: a change in ownership structure, a change in corporate strategy, a change in competitive position, and a change in the external environment. It is mentioned that the change in ownership structure “appears to be the most frequent cause of rebranding as well as the most compelling reason for it” with mergers and acquisitions at the top (Al Shebil, 2007). This is considered the motivating factor for rebranding the two telecommunication companies in Jordan. Muzellec et al. (2003) also discuss that the first academic issue pertaining to the corporate rebranding phenomenon is to assess the extent to which a change of name modifies consumers’ perceptions of the corporate brand. The second academic issue is to understand the influence of corporate image on product (or service) image. Other related reasons proposed for corporate rebranding are shifts in the marketplace caused by competitors who have merged/acquired/divested, new competitors, and changed economic or legal conditions. It may be that there is a need to present a global image to the marketplace. Another motivation for corporate rebranding is the feeling that the image is outdated (Staurt, 2003). Service Quality and Customer Satisfaction Parasuraman et al (1985) propose a definition for service quality as the degree and direction of discrepancy between consumers’ perceptions and expectations. As for customers’ satisfaction, it can be defined as the degree to which one believes that an experience evokes positive feelings (Rust and Oliver, 1994). As the case is in most other service industries, customer satisfaction is of paramount importance in the telecommunications industry. Asher (1989) emphasizes that to maintain a competitive edge, organizations must move quickly to identify and then meet customer satisfaction. As such, he examines methods of identifying customer satisfaction, measuring and using the results to improve the quality of products and services. He concludes that, by getting it right first time, the entire customer/supplier chain focuses on meeting the needs of the external customer and providing customer satisfaction. Service quality and satisfaction are sometimes often used interchangeably, because both are evaluation variables relating to consumers’ perceptions about a given product or service (Chen, 2008). However, some researchers have posited a set of differences between service quality and customer satisfaction. For example, Oliver (1997) suggests that service quality judgments are more specific while customer satisfaction judgments are more holistic. Hahm, et al., (1998) assume that customer satisfaction management in the telecommunication industry is difficult because of the diversity of services and customer segments that exist. This diversity makes it implausible to have a uniform customer satisfaction questionnaire that can be administered to all the different service/customer segment combination. Therefore, the researchers first carried out a segmentation study to identify key customer segments for Korea Telecom, and then focused on one service/customer group in developing the questionnaire. The questionnaire was developed using the SERVPERF approach to measuring service satisfaction. Dimensions of Service Quality Several studies were conducted to discover the criteria that customers use for evaluating the quality of any service (Malhotra, Ulgado, Agarwal, Baalbaki, 1994; Yang, Parasuraman et al, 1985). Johnson (1995) describes some of the difficulties in evaluating service quality and presents a framework for evaluating it that uses a general systems theory approach. The research suggests that, to understand consumers' views of the quality level in the firm, service managers should consider perceptions of service inputs and the service process as well as perceptions of service outcomes. The study's main findings are that the predominantly satisfying determinants are attentiveness, responsiveness, care and friendliness. The “dis-satisfiers” are integrity, reliability, responsiveness, availability and functionality. It shows that the causes of dissatisfaction are not necessarily the obverse of the causes of satisfaction and, furthermore, that reliability is predominantly a source of dissatisfaction. 123
European Journal of Social Sciences – Volume 34, Number 1 (2012) Parasuraman et al (1985) derive ten dimensions that influence service quality based on their suggestion that quality evaluations are not made exclusively on the outcome of service. The development of SERVQUAL scale was introduced in 1988 and is defined as “the difference between customers’ perceptions and expectations of service.” The SERVQUAL serves as a well established and empirically tested tool with its five dimensions of service, including tangibility, reliability, responsiveness, assurance and empathy. SERVQUAL is used in this research model with one modification. The assurance dimension has been replaced with competence to suit the highly competitive nature of the telecommunication sector in the Jordanian market. The five dimensions are defined in the literature of Lovelock (2004) as follows: 1. Tangibles: appearance of physical items 2. Reliability: dependable and accurate performance 3. Responsiveness: helpfulness and promptness 4. Competence: assurance, courtesy, credibility and security 5. Empathy: easy access, good communication, and customers understanding Service Quality and Customers’ Satisfaction Studies Sureshchandar, Rajendran, Anantharaman (2002) examine the relationship between service quality and customer satisfaction. They adopt an approach wherein they view customer satisfaction as a multidimensional construct like service quality, but argue that customer satisfaction should be operationalized along the same factors (and the corresponding items) by which service quality is operationalized. Based on this approach, the link between service quality and customer satisfaction has been investigated. The results indicate that the two constructs are indeed independent but are closely related, implying that an increase in one is likely to lead to an increase in another. Lee et al. (2000) deal with three issues in the area of perceived service quality. The result shows that perceived service quality is an antecedent of satisfaction, rather than vice versa. Tangibles appeared to be a more important factor in the facility/equipment-based industries, whereas reliability and responsiveness are more important factors in the people-based industries. Two studies are presented by Iacobucci and Ostrom (1995) that rely on divergent methodologies to examine whether or not quality and satisfaction have distinct antecedent causes, consequential effects, or both. The papers focus on consumers' understanding and use of the words quality and satisfaction. In both studies, respondents report whether or not they think quality and satisfaction differ, and if so, on what dimensions or under what circumstances.. Olorunniwo, Godwin, Udo (2006) investigate the nature of the relationship between service quality (SQ) to customer satisfaction (SAT) and behavioral intentions (BI). The dominant dimensions of SQ construct in the service factory were found to be: Tangibles, Recovery, Responsiveness, and Knowledge. Further results support that notion. As a result, service managers are recommended to devise operations and marketing strategies that focus on the dominant Service Quality dimensions in order to enhance Customer Satisfaction and, in turn, foster positive Behavioral Intentions. Jamal & Naser (2002) conducted a study to understand the antecedents to and outcomes of customer satisfaction. Findings were reported from a survey which looked into the impact of service quality dimensions and customer expertise on satisfaction. Findings indicated that both core and relational dimensions of service quality appear to be linked to customer satisfaction. McDougall and Levesque (2000) investigate the relationship between three elements – core service quality, relational service quality and perceived value – and customer satisfaction. The results reveal that core service quality and perceived value were the most important drivers of customer satisfaction. The relative importance of the drivers of satisfaction varied among services. A major conclusion is that both perceived value and service quality dimensions should be incorporated into customer satisfaction models to provide a more complete picture of the drivers of satisfaction.
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European Journal of Social Sciences – Volume 34, Number 1 (2012) Obiedat and Husein (2007) have studied and assessed the importance of customer loyalty towards mobile phone service providers in Jordan. By collecting data through a questionnaire, the researchers conclude that increasing trust in providers, feeling of satisfaction towards the offered service, and the perceived value of the service in comparison with the sacrifice are all crucial factors contributing to increase customer’s loyalty towards their service provider, with the highest loyalty index for the formerly Fastlink. The study presents recommendations in terms of segmenting the customers according to their loyalty level and using the appropriate strategy to deal with each segment such as enhancing the performance of customer care employees, improving network coverage for some providers and the adoption of competitive pricing strategies. A study by Caruana (2002) distinguishes between service quality and customer satisfaction. The author proposes a model that links service quality to service loyalty via customer satisfaction. Results indicate that customer satisfaction does play a mediating role in the effect of service quality on service loyalty. Effects of a number of demographic indicators on service loyalty are also reported. Kuo, Wu, Deng (2009) attempt to construct an instrument to evaluate service quality of mobile value-added services and discuss the relationships among service quality, perceived value, customer satisfaction, and post-purchase intention. The main findings indicate that service quality positively influences both perceived value and customer satisfaction. Among the dimensions of service quality, “customer service and system reliability” is most influential on perceived value and customer satisfaction. Customer Demographics Customer demographics are extremely crucial in any marketing decision as they are often closely linked to customers’ needs and purchasing behavior and can be readily measured. Customer’s demographics include all the measurements necessary to statistically describe the end-user base in a given market. Kassim’s (2006) study examines differences in customer expectations, perceptions of performance and satisfaction and retention of telecommunications service quality in the multi-ethnic environment of Malaysia. Analysis of multivariate covariance was used to determine the effect of a number of demographic variables (gender, ethnic, age, marital, education and income). Overall, the findings suggested that some demographic variables have significant effects on some dimensions involved in expectations, perceptions of performance and satisfaction, and retention with income having the most effects and gender, ethnic, and marital status having the least effects. Those dimensions include service coverage, billing integrity, quality of line, customer service and customer service outlet. A study by Kumar and Lim (2008) aimed to investigate the effects of age on mobile service quality perceptions and its impact on perceived value, satisfaction and loyalty between two significant mobile service user segments, Generation Y and baby boomers. The results indicate significant differences between the two groups in terms of the effect of perceived economic and emotional value on satisfaction. The study suggests that there is a significant effect of age on mobile service perceptions and loyalty decisions. Theoretical Model This study aims to identify the effect of customers’ perceived quality of services offered by the telecommunication companies on customer satisfaction, following the inevitable rebranding that was undergone by these companies. The researcher’s experience and connections in the telecommunication sector were utilized, allowing the researcher to conduct unstructured, informal interviews with workers and managers in the Jordanian telecommunication sector. Accordingly, the researcher was able to draw a picture of the tremendous exertion that has been placed by both rebranded telecommunication companies to comply with the rules and guidelines of the parent corporations that acquired them.
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European Journal of Social Sciences – Volume 34, Number 1 (2012) According to the comprehensive literature review that was performed, a theoretical framework has been built reflecting the different variables associated with the customers’ perceived quality, customers’ demographics and customers’ satisfaction. Figure 1: The Research Model Independent Variables Perceived Image of Quality of Service
Dependant Variable
Tangibles Responsiveness Reliability Customer’s Satisfaction
Competence Empathy
Age, Gender, Income, Education Residence, Occupation
Operational Definitions The simplicity of this model is evident and proposes the following set of variables, based on the literature review that was conducted for the purpose of this study: Perceived Quality of Service: Service quality is often conceptualized as the comparison of service expectations with actual performance perceptions (Lovelock & Wirtz 2004). Perceived service quality is considered an antecedent of satisfaction (Haksik, Yongki, Dongkeun, 2000), as suggested in the model. Five key dimensions of service quality have been identified in this model based on SERVQUAL (Parasuraman, 1988) with one modification. The Tangibles dimension is the service dimension that focuses on the elements that represent the service physically. Reliability is defined as the ability to deliver the promised service dependably and accurately. It is about keeping promises - promises about delivery, pricing, complaint handling, etc. Responsiveness can be described as the willingness to help customers and provide prompt service. This dimension stresses service personnel’s attitude to be attentive to customer requests, questions and complaints. Empathy is the service aspect that stresses the treatment of customers as individuals (Josee Bloemer, Ko de Ruyter, Martin Wetzels, 1999). Finally, competence is the acquisition of knowledge skills and abilities at a level of expertise sufficient to be able to offer excellent and accurate service. This variable and its dimensions have been measured using the questions in section two of the questionnaire. Customer Demographics: Customer demographics refer to certain characteristics of a population. The parameters used for this study are age, gender, occupation, income, education and geographical location. This variable and its parameters will be measured using questions in section four in the questionnaire. Customer Satisfaction (Dependant Variable): Customer Satisfaction is a product of perceived quality of service, where a high positive correlation exists between the constructs of satisfaction and perceived quality based on several studies (McDougall and Levesque, 2000; Sureshchandar, Rajendran, Anantharaman, 2002). Satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation. This variable was measured using the questions in section three of the questionnaire. Hypotheses Based on the aforementioned research questions and literature review, we expect a relationship between the perceived services quality of the rebranded telecommunication companies in Jordan and customers’ satisfaction. Accordingly the following null hypotheses are put forward: 126
European Journal of Social Sciences – Volume 34, Number 1 (2012) H1: There is no statistically significant effect of customers’ perceived services’ quality of the rebranded telecommunication companies in Jordan on customers’ satisfaction. H1.1: There is no statistically significant effect of customers’ perceived tangibles of the rebranded telecommunication companies in Jordan on customers’ satisfaction. H1.2: There is no statistically significant effect of customers’ perceived services’ reliability of the rebranded telecommunication companies in Jordan on customers’ satisfaction. H1.3: There is no statistically significant effect of customers’ perceived responsiveness of the rebranded telecommunication companies in Jordan on customers’ satisfaction. H1.4: There is no statistically significant effect of customers’ perceived competence of the rebranded telecommunication companies in Jordan on customers’ satisfaction. H1.5: There is no statistically significant effect of customers’ perceived empathy of the rebranded telecommunication companies in Jordan on customers’ satisfaction. H2: Customers’ satisfaction of the rebranded telecommunication companies in Jordan does not vary according to customers’ demographic variables. H2.1: Customers’ satisfaction of the rebranded telecommunication companies in Jordan does not vary according to customers’ age. H2.2: Customers’ satisfaction of the rebranded telecommunication companies in Jordan does not vary according to customers’ gender. H2.3: Customers’ satisfaction of the rebranded telecommunication companies in Jordan does not vary according to customers’ income. H2.4: Customers’ satisfaction of the rebranded telecommunication companies in Jordan does not vary according to customers’ education level. H2.5: Customers’ satisfaction of the rebranded telecommunication companies in Jordan does not vary according to customers’ residence location. H2.6: Customers’ satisfaction of the rebranded telecommunication companies in Jordan does not vary according to customers’ occupation.
Research Methodology The Study’s Population and Sample Selection As shown in table 1, the researchers have indicated the market share of each telecommunication company in Jordan based on the year of the rebranding (2007). Only those customers who are subscribed in one of the rebranded telecommunication companies will be considered the population. Customers’ perceived quality of service and its effect on customer satisfaction is reflected only on those customers who have experiences with these mobile service providers that have undergone the rebranding, and hence were affected by the changes. In this sense, the population is all mobile subscribers of Zain and Orange which, according to Arab Advisors group, reached 3,402,800 by the end of 2007. A convenience sample was selected. However it has been further divided into samples percentage per each rebranded company subscriber, according to each telecommunication company market share defined earlier as follows: Table 1:
Zain and Orange Market Share
Telecommunication Company Zain Orange Total Source: Arab Advisors Group, 2007
Market Share (year end 2007) 38.9% 33.5% 82.4%
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No. of Subscribers (year end 2007) 1,828,300 1,574,500 3,402,800
European Journal of Social Sciences – Volume 34, Number 1 (2012) According to the above figures, the addressable population is comprised of the number of subscribers of the telecommunication companies who have undergone rebranding, namely Zain and Orange, which totals 3,402,800. The distributed questionnaires were aimed at customers of each of the rebranded telecommunication service provider in proportion to its market share of the population. Zain’s valid responses share were around 54%, while the remainder, 46%, goes to Orange’s responses. With a population size of 3,402,800 for both Zain and Orange, margin error of 5%, confidence level of 95% and response distribution of 50%, the minimum sample size considered valid was 385, out of which 209 respondents are subscribed with Zain and 176 subscribed with Orange. Data Collection Primary and secondary data has been collected for the purpose of this research. Secondary data was collected through academic articles and previous research with relevant objectives, in addition to online sources including the homepages of the relevant telecommunication companies. Primary data was collected through surveying a small sample size of the addressable population (Jordan’s rebranded mobile companies’ subscribers), in addition to personal interviews with customers and employees working in the telecommunication sector. Questionnaire Design The questionnaire was designed to address the effects of the different factors of the perceived quality on customers’ satisfaction as previously discussed. Accordingly, the questionnaire was devised to include four major sections covering the aforementioned variables as follows: The first part contains questions about the customers’ service provider, the period of subscription, whether or not the customer has switched to another service provider after the rebranding and whether the customer uses the new brand name of its service provider after the rebranding. The second part covers the perceived quality of service of the rebranded telecommunication company. It consists of statements which the customers are requested to express their level of agreement on each. The statements are grouped into five categories, each category representing one of the five dimensions of service of quality according Parasuraman’s (1988) SERVQUAL model. The third part covers customers’ satisfaction about the rebranded telecommunication company’s services. It consists of statements the customers are requested to define their level of agreement on. The final part of the questionnaire collects demographic information about the customers.. The second and third sections of the questionnaire were structured based on the Likert Scale of five- points ranging between Completely Agree and Completely Disagree, while the first and last sections use multiple choice questions allowing the customers to select from a range of options.
Data Analysis and Discussion of Results Frequencies Since this study covers all governorates of Jordan, a collection of surveys were distributed in each governorate according to the population distribution percentage in Jordan (as specified in Appendix 2). The sample was actually distributed to 450 recipients across all Jordan, out of which 392 were received. Seven questionnaires were dismissed for reasons that included major questions which were left blank. The following numbers of the received surveys were deemed valid: Table 2:
Count of Valid Surveys Residence
Amman Zarqa
Service Provider Zain 81 31
Orange 69 26
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Total 150 57
European Journal of Social Sciences – Volume 34, Number 1 (2012) Table 2:
Count of Valid Surveys - continued
Madaba Ajloun Jerash Irbid Al Mafraq Karak Al-Salt (Balqa') Ma'an Tafileh Aqaba Total
6 5 6 37 10 8 14 4 3 4 209
4 4 5 32 8 7 12 3 2 4 176
10 9 11 69 18 15 26 7 5 8 385
According to Section 1 in the questionnaire, general information has been collected from the surveyed sample about the details of the customers’ subscription. The results are illustrated in table 3 to provide an overview of the subscription nature of respondents. Table 3:
Summary of the Respondents’ Subscription Details
Service Provider Valid Zain Orange Total
Frequency 209 176 385
Percent 54.3 45.7 100.0
Valid Percent 54.3 45.7 100.0
Cumulative Percent 54.3 100.0
Frequency 299 86 385
Percent 77.7 22.3 100.0
Valid Percent 77.7 22.3 100.0
Cumulative Percent 77.7 100.0
Subscription Type Subscription Type Valid Prepaid Postpaid Total
Period of Subscription Period of Subscription Valid
Frequency
Percent
Valid Percent
35 140 95 98 17 385
9.1 36.4 24.7 25.5 4.4 100.0
9.1 36.4 24.7 25.5 4.4 100.0
Less than one year One to under three years Three to under five years Five to under ten years Ten years or more Total
Cumulative Percent 9.1 45.5 70.1 95.6 100.0
Did the customer change his/her mobile service provider after its rebranding? Valid
Answer Yes No Total
Frequency 35 350 385
Percent 9.1 90.9 100.0
Valid Percent 9.1 90.9 100.0
Cumulative Percent 9.1 100.0
Does the customer refer to his/her mobile service provide with its new name (after the rebranding? Valid
Answer Yes No Total
Frequency 215 170 385
Percent 55.8 44.2 100.0
129
Valid Percent 55.8 44.2 100.0
Cumulative Percent 55.8 100.0
European Journal of Social Sciences – Volume 34, Number 1 (2012) Table 4:
Valid
Summary of the Respondents’ Demographic Data
Female Male Total
Missing
Valid
Missing Total
Valid
Missing Total
Valid
Missing Total
Valid
Valid
Missing Total
System Total Under 20 20-
