The Effect of GSM Mobile Service Quality on Customer Satisfaction of Nepal Telecom in the Kathmandu Valley

Abstract

The main purpose of this study is to explore the effect of the dimensions of service quality on the perceived performance of Nepal Telecom GSM phone users in Kathmandu valley of Nepal. The study has used the SERVQUAL model of service quality with the application of the five service quality dimensions. These five dimensions of service quality which were developed by Parasuraman namely tangibles, reliability, responsiveness, assurance, and empathy where used to measure the level of customers satisfaction in NT users. Other purposes include how customers perceive service quality; identify service quality dimensions that contribute to higher customer satisfaction, factors hindering customer satisfaction. One of the key challenges of today’s market is how they satisfy and retain their customers and also manage service quality, which holds a significant importance to customer satisfaction and their perceived performance. The study uses quantitative approach and done different correlation analysis tools. This research is both descriptive and explanatory type research. A questionnaire was designed and distributed to 200 respondents using a probabilistic sampling technique. According to the findings of the study all the five dimensions of service quality have shown a significant positive effect on customer satisfaction. Pearson correlation analysis was conducted to examine the relationship between service quality dimensions and customer satisfaction and the results shows that all five dimensions have a strong positive relationship, reliability(r=0.587) and empathy(r=0.556) are first two dimensions which have strong and positive significant impact on customer satisfaction. From regression analysis, there is a positive and statistically significant (p< 0.05, β= 0.1511) impact between tangibility and customer satisfaction that means a unit increase in tangibility will increase customer satisfaction by 15.11%. Due to the fact that telecom firms do not provide tangible products, their service quality is usually assessed by measures of the service-provider’s relationship with customers. Thus, telecom service management should pay attention to staff skill possession, knowledge, network coverage, attention to customers and their needs, offering of fast and efficient services and general attitude to customer services.