SERVICE AND CUSTOMER SATISFACTION OF NEPAL

TELECOM

A Project Work Report

By:
Dinesh Pandey
Faculty of Management
Shankar Dev Campus
T.U Registration No: 7-2-39-236-2017
Roll No: 444/074
Symbol No: 700390062
Group: Finance

Submitted To
Shankerdev Campus
Tribhuvan University
Kathmandu, Nepal
In partial fulfillment of the requirements for the degree of
BACHELOR OF BUSINES STUDIES (BBS)

Kathmandu, Nepal
2022

i
 STUDENT DECLARATION

This is to certify that I have completed project entitled Service and Customer
Satisfaction of Nepal Telecomunder the guidance of Mr. Triratna Manandhar in
the partial fulfillment of requirement for the degree of Bachelor of Business
Administration at Faculty of Management,TU. This is my original work and I have
not submitted it earlier elsewhere.

Date:

Signature:

Name:Dinesh Pandey

ii
 SUPERVISOR’S RECOMMENDATION

The project work report entitled Service and Customer Satisfaction of Nepal
Telecom submitted by DINESH PANDEYof Shanker Dev Campus, is prepared under
my supervision as per the procedure and format requirements laid by the Faculty of
Management, Tribhuvan University, as partial fulfillment of the requirements for the
degree of BACHELOR OF BUSINESS STUDIES (BBS). I, therefore, recommend
the project work report for evaluation.

………………..

Date:

iii
 ENDORSEMENT

We hereby endorse the project work report entitled Service and Customer
Satisfaction of Nepal Telecom submitted by DINESH PANDEYof Shanker Dev
Campus, in partial fulfillment of the requirements for the degree of the BACHELOR
OF BUSINESS STUDIES (BBS) for external evaluation.

……………………. ……………………….

Dr. Kapil Khanal Prof. Dr. Keshab Raj Joshi

Chairman, Research Committee Campus Chief

2022 2022

iv
 Acknowledgements

The study entitled Service and Customer Satisfaction of Nepal Telecomhas been
conducted to satisfy the requirement for the BACHELOR OF BUSINESS STUDIES
(BBS)of TU.

First of all, I would like to express my sincere gratitude to the respected supervisor
Mr. Triratna Manandharfor his valuable time and consideration throughout the
entire period of the project. Without his support, this research report would not have
been completed on time.

Similarly, my deep thanksgo to my family member for their patience and emotional
support. Finally, I would like to thank my friends for their support, cooperation,
encouragement during the time of preparing this Summer Project work.

DINESH PANDEY

v
Table of content

No. & Title Page No.

Title Page……………………………………………………………………..……………..i
Declaration …………………………………………………………………………………ii
Supervisor’s Recommendation ………………………………………………………..…iii
Endorsement……………………………………………………………………………..…iv
Abstract…………………………………………………………………………………..….v
Acknowledgement……………………………………………………………………….…vi
Table of Contents ……………………………………………………………………….…vii
List of Tables…………………………………………………………………………….…xi
List of Figures……………………………………………………………………………...xii
Abbreviations…………………………………………………………………………..….xiii

Chapter I
Introduction
1.1 Background of the study............................................................................................1
1.2 Statement of the problem...........................................................................................4
1.3 Objectives of the study...............................................................................................6
1.4 Significance of the study............................................................................................6
1.5 Review of related literature........................................................................................7
1.5.1 Review of major literature...................................................................................7
1.5.2 Review of recent literature................................................................................10
1.6 Conceptual framework.............................................................................................12
1.7 Operations definitions and assumptions..................................................................13
1.7.1 Customer satisfaction........................................................................................13
1.7.2 Price...................................................................................................................14
1.7.3 Service quality...................................................................................................14
1.7.4 Coverage/ Strength of signal.............................Error! Bookmark not defined.
1.7.5 Sales promotion.................................................Error! Bookmark not defined.
1.8 Research methods....................................................................................................14
1.8.1 Research design.................................................................................................15
1.8.2 Sources of data collection..................................................................................15
1.8.3 Instrumentation..................................................................................................15
1.8.4 Method of analysis............................................................................................16
Chapter II

vi
Data analysis and Presentation
2.1 Presentation and analysis of primary data................................................................17
2.2 Respondents profile..................................................................................................17
2.3 Demographic characteristics of the respondents 18
4.3 Pearson’s correlations coefficient for customer satisfaction and services
provided by Nepal Telecom Error! Bookmark not defined.
2.2 Regression analysis 34
2.3 Major findings .…36
Chapter III
Summary and conclusion
3.1 Summary 39
3.2 Conclusion 40
3.3 Recommendations Error! Bookmark not defined.
References 35
Appendix 38
Survey questionnaire 46

vii
 List of tables

Table 1.1 Review of major studies................................................................................8

Table 1.2 Review of recent studies..............................................................................10
Table 2.1 Demographic characteristics of the respondents..........................................19
Table 2.2 Customer satisfaction on price ....................................................................23
Table 2.3 Customer satisfaction on service..................................................................25
Table 2.4 Customer satisfaction on Coverage (strength of signal)..............................27
Table 2.5 Customer satisfaction on sales promotion...................................................29
Table 2.6 Overall customer satisfaction.......................................................................31
Table2.7 Pearson’scorrelations coefficient of the relationship between customer
satisfaction and services provided by Nepal Telecom.................................................33
Table2.8 Regression of customer satisfaction of Nepal Telecom……………………34

viii
 List of figures

Figure 1.1 Conceptual framework................................................................................13

Figure 2.1 Respondent classified by gender................................................................20
Figure 2.2 Respondent classified by age......................................................................21
Figure 2.3 Respondent classified by academic qualification.......................................22
Figure 2.4 Respondent classified by occupation..........................................................22

ix
 Executive summary

Customer satisfaction is defined as a customer’s overall evaluation of the performance

of an offering to date. Customer Satisfaction is considered as the emotional response
to experiences associated with the quality of product, services, timeliness, efficiency,
ease of access, environment, other facilities including the behavior and attitude of the
service providers in comparison to the customer’s expectation. It is the transactions
specific effective response to the evaluation of discrepancy between the prior
expectations and actual expectations relating to telecom services. Quality is such an
important issue that is considered a really significant concept in our real life. It is
regarded as a strategic organizational weapon. And, the pressing need of developing
service organizations and upgrading the services necessitates the majoring of service
quality. Service quality has significant on an organization’s success and performance.
Service quality is particularly essential in the telecom service context because it
provides a high level of customer satisfaction, and hence it becomes a key to
competitive advantage. The studies devoted to customer satisfaction and service
quality, service quality is of greater significance for customers’ satisfaction. Hence,
this study focuses on examining customer satisfaction towards service quality of
Nepal Telecom.

Increased competition, highly educated consumers, and increase in standard of living

are forcing many businesses to review their customer service strategy. Many business
firms are channeling more efforts to retain existing customers rather than to acquire
new ones since the cost of acquiring one new customer is greater than cost of
retaining existing customers. Customers are always aiming to get maximum
satisfaction from the products or services that they buy. Winning in today’s
marketplace entails the need to build customer relationship and not just building the
products; building customer relationship means delivering superior value over
competitors to the target customers.

x
 Chapter I

Introduction

1.1Background of the study

Telecommunication has an important role to play in the development of land

communication. In a mountainous country like Nepal, development of Land
communication is bound to be expensive and difficult. Similarly, air transport in a
mountainous and poor country also possesses numerous financial, technical and
construction problems. The expansion of modern telecommunication systems
becomes crucial for development of country. The development of industry, trade and
commerce depends upon the efficient production and distribution system. The
demand for telecommunication services has increased rapidly during the last decade,
particularly in the areas of mobile telephony, international calls, and business data
services. This global demand is very much triggered by the globalization of business
operations across all industries, and the associated with it labor, capital and resource
mobility. Most of the investments in research and development lead to convergence of
technologies that create multiple and adjacent markets. The convergence also has
bridged the boundaries between separate markets such as computing, communication,
and media content. The new ‘digital’ value chain across the three sectors is in its
making (Shillingford, 1999). The national telecommunication carriers are on one side
the main beneficiaries of this growth and on the other side, their strategic monopoly
position is challenged not only by governments, but also by new market entries in
new emerging and technologically connected market segments. Deregulation
facilitates new entrants to obtain a license and to launch new services, and this fuels
further competition that reshapes the industry.
The core of the telecommunication industry is in the communication and information
transmission, and this makes it a backbone for the entire global information sector.
The structure of the industry is evolving along the line of four elements: hardware,
communication networks, network management systems, and service content. The
core subsector of communication networks has evolves as three parallel markets:
terrestrial networks, cellular networks, and satellite networks. These traditional
infrastructure providers together with the hardware manufacturers are expected in the

1
future to control only about 10percent of the total value added in the entire sector
(Knetsch et al., 1999). It is not surprising therefore, that the established market
players will seek to move to new market segments with high growth potential, such as
mobile communications, digital data transmission, and value added services (VAS).
The latter segment is where the future growth of the industry lies. It is expected that
the shift in revenue is towards content providers (expected to control about 45percent
of the total value-added in the industry) and the firms engaging in customer
operations and billing (to control another 45percent of the total value added) (Knetsch
et al., 1999).
The market matures and competition intensifies, wireless telephone service operators
will have to differentiate their corporate strategies with respect to customer focus,
personalization, marketing and delivering tailored offers (Yadav, 2014).The study
concluded that during last few years most of the private telecom service providers
have shown better performance than their public sector rivals in terms of network
coverage, innovation, revenue share etc.

Developing a world class performance measurement system hingeson a clear

understanding of a firm`s competitive strategy, operational goals and a definitive
statement of the employee competencies and behaviors required to achieve the firm`s
objectives (Becker, 2001). Measurement systems can create value only when they are
carefully matched with the firm`s unique competitive strategy and operational goals.
Performance measures should be related to the strategic goals and measures that are
organizationally significant and drive business performance, be relevant to the
objectives and accountabilities of the individuals concerned, focus on measurable
outputs, accomplishments and behaviors that are clearly defined and for which
evidence can be made available. There must be indication of data that will be made
available for measurement which must be verifiable, precise, available and
comprehensive, that is, covering all aspects of performance. Effective performance is
measured not merely by delivery of results (however outstanding) in one area but by
delivering satisfactory performance across all measures (Armstrong and Baron, 1998).

Nepal Telecom has connected all of its districts with microwave link. In a bid to
connect all of its districts to high capacity transmission link for all of the telecom
technologies and services, Nepal Telecom has started installing high capacity

2
microwave links to all the remotest districts. Nepal Telecom’s engineer has succeeded
to establish the microwave link to Simikot of Humla, the 75th district of Nepal being
connected by microwave link and started. The majority of people may prefer to keep
separate their entertainment equipment (such as television) from their regular voice
and data communication facilities, and particularly away from their ‘computing for
work’. Consumers also may prefer their experience of high-street shopping instead of
buying over the internet, which could be a major barrier to the total digital
convergence (Shillingford, 1999). As a result, most telecom operators are careful to
invest in further bundling of network capacity and services, which enhances the
network economy of the operations.

The second factor shaping competition is fast developing technologies with reduced
time-to market period of implementation. The technological dynamics, and
particularly the convergence of micro-electronics with computer industry and
telecommunications, as well as the fast move towards packet-switching and circuit-
switching technologies leads to a revolution in the concept of network integration.
The old paradigm of centralized architecture is replaced by a new network model,
where network intelligence/ control and service functionality migrate from the
operator all the way to the user’s desktop unit (Knetsche et al., 1999).

In the context of Nepal, Maharjan (2014) found that the service quality factors such as
assurance, technology, reliability, responsiveness, empathy and tangibility are
positively correlated to customer satisfaction. The study also revealed that service
quality has positive impact on customer loyalty. Satisfied customers used to
recommend the organization to their friends, family members and relatives. The study
concluded that reliability is the most essential factor for service quality and
technology is the least important factor for service quality in Nepalese organization.

Pandey&Joshi (2010) examined the impact of service quality on customer

satisfaction. The study found that service quality permanently imprints and restores
positive image on customers' perceived emotional experience of particular goods and
services, and leads to behavioral intention. The study found that service quality is
positively related to satisfaction and behavioral intentions.

3
The above discussion shows that the study dealing with service and customer
satisfaction in Nepal Telecom are of greater significance. By the implementation of
service and customer satisfaction in Nepal Telecom it made easy for telecom to cope
up with rapidly changing customer needs due to services provided by Nepal Telecom.
Though there are various findings as discussed above in the context of different
countries, no much findings using more recent data exist in the context of Nepal.
Hence, this study attempt to examine whether the customer satisfaction has any effect
on services provided by Nepal Telecom.

1.2 Statement of the problem

Janet (2008) studied application of the balanced score card among commercial banks
in Kenya. While the two industries have similarities, the banking industry is quite
distinct from the telecommunications in that the latter is tapping on limited talent with
a focus on performance and innovation in a highly fluid and competitive market.
Ongoing capital intensive infrastructural investments by operators have largely been
focused on network expansion. Thus,Essar Telecom under the ‘yu’ brand name is
facing fierce competition. To capture the interests of the various stakeholders
involved including investor, customers and match the required technical capacity,
there is need for an all round approach, for instance the balanced score card which has
been applied at the company.

With growing interest in improving performance management in organizations, the

balanced score card can be a valuable tool that meets the need for improvement and
change especially for companies venturing into very competitive or monopolistic
market. It is a customer based planning and process improvement system with its
primary focus on driving an organization`s change process by identifying and
evaluating pertinent performance measures. It is an integral part of the mission
identification, strategy formulation and process execution, with an emphasis on
translating strategy into a linked set of financial and non financial measures (Chan,
2004).

Strives to offer the market`s best prices which forces organizational efficiency to
minimize operational costs. The telecoms industry, just like in the rest of the world, is
going through profound changes due to technological enhancement and regulatory
restructuring. Markets that were formerly distinct, discrete and vertical have coalesced
4
across their old boundaries with a massive investment mostly from the private sector
resulting in new markets, players and challenges (Madden and Savage, 1999).

Developing a world class performance measurement system hinges on a clear

understanding of a firm’s competitive strategy, operational goals and a definitive
statement of the employee competencies and behaviors required to achieve the firm’s
objectives (Becker, 2001). Measurement systems can create value only when they are
carefully matched with the firm’s unique competitive strategy and operational goals.
Performance measures should be related to the strategic goals and measures that are
organizationally significant and drive business performance, be relevant to the
objectives and accountabilities of the individuals concerned, focus on measurable
outputs, accomplishments and behaviors that are clearly defined and for which
evidence can be made available.

The second factor shaping competition is fast developing technologies with reduced
time-to market period of implementation. The technological dynamics, and
particularly the convergence of micro-electronics with computer industry and
telecommunications, as well as the fast move towards packet-switching and circuit-
switching technologies leads to a revolution in the concept of network integration.
The old paradigm of centralized architecture is replaced by a new network model,
where network intelligence, control and service functionality migrate from the
operator all the way to the user’s desktop unit (Knetsche et al., 1999).

There is a need to examine whether the services provided by Nepal Telecom is able to
satisfy their customers or not. For the purpose, this study investigates the factors
related with the service and customer satisfaction in Nepal Telecom.

Though there are above mentioned evidences in the context of other countries, no
such evidences using the most recent data exist in the context of Nepal. The study
therefore deals with the following issues:

1. Which of the organizational factors play an important role in explaining

services and customer satisfaction in Nepal Telecom?
2. To what extent do services and coverage affect customer satisfaction in Nepal
Telecom?

5
 3. Is there any relationship of sales promotion with customer satisfaction in
Nepal Telecom?
4. What are the other variables affecting customer satisfaction in Nepal
Telecom?
5. Does behavior of the employees influence satisfaction of customers in Nepal
Telecom?
6. To what extent doprice affect the satisfaction of customers in Nepal Telecom?
7. What are the employees’ perceived descriptive statistics on motivation and
working environment in Nepal Telecom?

1.3Objectives of the study

The major purpose of the study is to analyze customer views and satisfaction levels
towards Nepal Telecom. The specific objectives of study are:

1. To assess the relationship of price, sales promotion, service and coverage with
customer satisfaction of Nepal Telecom.
2. To examine the impact of price, sales promotion, service and coverage on
customer satisfaction in context of Nepal Telecom.
3. To find out which of the factors play most important role in determining
customer satisfaction of Nepal Telecom.
4. To examine the effectiveness of services provided by Nepal Telecomand
measures the customer satisfaction level towards Nepal Telecom service.

1.4 Significance of the study

Customers have become more sophisticated they enjoyed more alternative options of
brands. The Nepal Telecom industry has become very competitive with presence of
offering similar products and services. Customers became more demanding due to
high competition. Thus, satisfying and retaining customers became more difficult for
the Telecom. Satisfaction level of customers of Nepal Telecom can develop customer
centric service approach to deal with customers in order to avoid the tendency of
existing customers switching to a competing Nepal Telecom. Customers have become
quality conscious, so they compare service offering of companies and will option for
superior quality services. The study will serve as a guide for Nepal Telecom to
develop policies which will improve its overall service delivery. Customer

6
satisfaction can only be attained by continuously sensing the changing needs and
preferences of customers and by providing them with solutions that can better fulfill
their need.

Hence, this study will help the telecom to identify the strongest and the most efficient
approach in creating and maintaining relationship with the customers. In recent years,
important developments have been made in the telecom sector in Nepal. Thus, the
study is expected to be useful for the telecom in analyzing to what extend those
efforts have been able to affect the satisfaction of customers. This study will help in
making the managerial decisions regarding the strategy for building, managing and
strengthening loyal and long lasting relationship with customer relationship by having
the right offer for the right customer at the right time.

1.5Review of related literature

This chapter provides conceptual framework of the study and deals with review of
empirical studies. It is divided into three sections. Many authors have given their
conclusions on the similar study supported with their findings. The result shown by
one greatly supports or might vary with the other since it depends on the availability
of data and scope of the study. The reviews of empirical works made on different
periods along with major conclusions are presented in this section. In addition,
reviews of related Nepalese studies have also been made.

The review of literature in this study has been organized as follows:

1.5.1 Review of major literature

1.5.2 Review of recent literature

1.5.1 Review of major literature

The major literature that has been reviewed in this study is presented in Table 1.1.

Keaveney (1995) evaluates unique factors that pertain specifically to this market in
context of service industries in general to the cellular industry. Studies revealed a
number of facts about the cellular industries. The study also concluded the paper by
indicating the limitations of the primary research and charting out avenues of future
research for TELUS Mobility. This research is meant to act as a stepping-stone for

7
TELUS Mobility in initiating a better understanding of its clients and possibly
become a base for future research in this direction.

Table 1.1: Review of major studies

Study Major Findings

Keaveney Indicated the limitations of the primary research and charted out
(1995) avenues of future research for TELUS Mobility.
Kaplan
Measured and executed framework that not only provides
and
performance measurements but helps planners to identify what should
Norton
be done.
(1996)
Jamie Concluded that there are different factors, which affect the Customers
(2005) to switch from loyalty to switching intentions
Armstrong Found that effective performance is measured not merely by delivery
and Baron of results (however outstanding) in one area but by delivering
(1998) satisfactory performance across all measures.
Madden Found that growth of mobile subscription is associated with the
(2003) mobile network.
Lee and Revealed that the share of call minutes originating from fixed line was
Kim negatively related with the relative price of calls originating from
(2004) fixed phone.
Milne Summarized some empirical regularity in telecommunications
(2006) expenditure patterns.
They found that the most significant predictors of customer
Eshghi et
satisfaction are: competitiveness, relational quality, reliability,
al. (2008)
reputation, support features, and transmission quality.

The study provides a framework that not only provides performance measurements
but helps planners identify what should be done, measured and executed. The new
balanced score card transforms an organization`s strategic plan from an attractive but
passive document into the marching orders for the organization on a daily basis
(Kaplan and Norton, 1996).

Jamie (2005) examined the determinants that cause mobile phone Customers to transit
from being loyal to switching. The study also concludes that there are different
factors, which affect the Customers to switch from loyalty to switching intentions
such as price, technical service quality, Functional service quality, switching costs,
etc. But, the rating was given that price is the most important factor which affects the
Customers to switch loyalties to another provider.

Measurement systems can create value only when they are carefully matched with the
firm`s unique competitive strategy and operational goals. Performance measures

8
should be related to the strategic goals and measures that are organizationally
significant and drive business performance, be relevant to the objectives and
accountabilities of the individuals concernedfocus on measurable outputs,
accomplishments and behaviors that are clearly defined and for which evidence can
be made available. There must be indication of data that will be made available for
measurement which must be verifiable, precise, available and comprehensive, that is,
covering all aspects of performance. Effective performance is measured not merely by
delivery of results in one area but by delivering satisfactory performance across all
measures (Armstrong and Baron, 1998).

Madden (2003) examined the substitution effect between fixed and mobile telephony
while controlling for the consumption externality associated with telephone networks.
The study found that growth of mobile subscription is associated with the mobile
network and also with the reduction in mobile service prices. They also found a
substantial substation effect that the growth in mobile services induced by the increase
in the prices of fixed landlines.

Lee and Kim (2004) reveal that the share of call minutes originating from fixed line
was negatively related with the relative price of calls originating from fixed phone
vis-à-vis calls originating from mobile phone. In estimating the model his paper
specified that fixed and mobile call demands, the subscription demands and the prices
consist of a simultaneous equation system.

The study summarized some empirical regularity in telecommunications expenditure

patterns. Among them, it is mentioned that in industrialized countries,
communications have the characteristics of a necessity (income elasticity less than 1),
while on the other hand, communications in developing countries are considered as
luxury goods. Furthermore, it is stated that with rapid industry development, it is
expected that developing countries will follow the trend of industrialized countries,
and that there is anecdotal evidence of middle-income people in the former struggling
to pay for using their mobile phones, which have become “an essential luxury” or “an
expensive necessity”( Milne, 2006).

Eshghi et al. (2008) recruited 238 mobile phone users in four major cities of India to
identify the impact of service-related factors on customer satisfaction, repurchase
intention, and the recommendation of a service to others. The study found that the

9
most significant predictors of customer satisfaction are: competitiveness, relational
quality, reliability, reputation, support features, and transmission quality.

1.5.2 Review of recent literature

The review of recent literature is summarized in table 1.2

Table 1.2: Review of recent Studies

Study Major Findings
Developed a world class performance measurement system hinges on a clear
Becker
understanding of a firm`s competitive strategy, operational goals and a
(2001)
definitive statement.
Found that Organizations are doing much better than Indian public sector
Verma et
organizations as private sector organizations have better team empowerment
al. (2012)
and so teamwork and team effectiveness.
Zhao et al.
Found evidence of the importance of service quality to consumer satisfaction
(2012)
Almossaw
There is insignificant association between customer satisfaction and loyalty.
i (2012)
Ocloo and The study revealed a relationship between quality service and satisfaction
Tsetse while customer satisfaction has been found to influence customer retention in
(2013) large extent.
Chaudhary Concluded in his study of performance comparison of private sector and
(2014) public sector.
Concluded that during last few years most of the private telecom service
Yadev
providers have shown better performance than their public sector rivals in
(2014)
terms of network coverage, innovation, revenue share etc
Khanal
Service quality has a positive impact on customer satisfaction.
(2014)

Developing a world class performance measurement system hingeson a clear

understanding of a firm`s competitive strategy, operational goals and a definitive
statement of the employee competencies and behaviors required to achieve the firm`s
objectives (Becker, 2001).

Private sector Indian organizations are doing much better than public sector
organizations as private sector organizations have better team empowerment and so
teamwork and team effectiveness compare to their counterparts (Verma et al., 2012).

Zhao et al. (2012) stated that service quality is closely related to consumer satisfaction
as it reflects the customers’ evaluation of the performance of service providers.
Service quality is a multi- dimensional construct and different researchers have
proposed different dimensions to capture the essence of this critical factor in
influencing customer satisfaction. The study also revealed that most users of mobile

10
value-added services have an intrinsic motive to seek justice when engaging in an
exchange with service providers because they have to pay for their subscriptions for
these services. Justice involves a subjective fairness judgment of individuals if what
they procured or how they were treated was fair under a specific context, especially in
a situation with uncertainty.

Almossawi (2012) investigated the importance, determinants, and consequences of

customer satisfaction in the mobile telecom industry in Bahrain. The study found
insignificant association between customer satisfaction and loyalty as 88percent of the
mobile users declared that they would switch if they get a better offer which indicates
lack of loyalty. Again the study also revealed trivial relationship of customer retention
and loyalty because 86percent of who claimed that they will remain with their current
providers said that they would switch for a better offer.

Ocloo and Tsetse (2013) has undertaken a study to find out the relationship between
quality service and customer retention and between customer satisfaction and
retention in Ghanaian mobile telecommunication industry. The study revealed a
relationship between quality service and satisfaction while customer satisfaction has
been found to influence customer retention in large extent.

Chaudhary (2014) concluded in his study of performance comparison of private sector

and public sector banks in India, most of the new private sector banks have shown
better performance than their public sector counterparts.

The market matures and competition intensifies, wireless telephone service operators
will have to differentiate their corporate strategies with respect to customer focus,
personalization, marketing and delivering tailored offers. The study concluded that
during last few years most of the private telecom service providers have shown better
performance than their public sector rivals in terms of network coverage, innovation,
revenue share etc (Yadav, 2014).

Khanal (2014) concluded that all the variables of the service quality have a positive
impact on customer satisfaction. The study also concludes that service quality is
responsible for creating customer satisfaction and loyal customers. The result
indicates that the tangibility and assurance have a greater impact on customer
satisfaction. Similarly, this study revealed that the staff response, prompt service and

11
the physical facilities of the organization are important service quality dimensions to
make the customer loyal towards any organization.

1.6 Conceptual framework

This chapter deals with review of empirical studies associated with service and
customer satisfaction of NTC in Nepal. The first section is review of related literature
which provides description of relevant literature to customer satisfaction in the
context of both developed and developing countries around the globe. The second
section highlights the conceptual framework of the study associated with impact of
customer satisfaction factors (services provided by telecom, price, promotion,
coverage, strength of signals, promotional activities) on customer satisfaction of
Nepalese commercial banks. And finally, third sections deals with the concluding
remarks. . Customer satisfaction is frequently used term in business literature which
indicates how products and services offered by a company meet the expectation of
customers. It is a measure of how a company offers its products and services which
meet or exceed customer’s expectations. Customer satisfaction is mainly related to the
whole consumption experience by the customers. The different aspect of customer
satisfaction mentioned by Oliver(1997) are Satisfaction with final outcomes,
satisfaction with events that happen during consumptions, satisfaction with level of
received happiness. A Conceptual framework is a tool researchers use to guide their
inquiry. it is a set of ideas used to structure the researcher, a sort of map that may
include the research question, the literature review, methods and data analysis. This
study mainly concentrates to the literature on the impact of customer relationship
management on customer satisfaction of Nepalese commercial banks. Thus, the
following conceptual model is framed to summarize the main focus and scope of this
study in terms of variables included. The relationship between dependent and
independent variable is shown by Figure 1.1.

12
 Figure 1.1: Schematic diagram on impact of services and customer satisfaction
on Nepal Telecom

This figure shows the conceptual framework of the study. Price, services,coverageandsales
promotion are taken as independent variables whereas customer satisfaction is dependent
variable.
Figure 1.1 Conceptual framework

Independent variables Dependent Variable

Price

Service quality
Customer

Coverage Satisfaction /

Dissatisfaction
Sales promotion

1.7 Operations definitions and assumptions

1.7.1 Customer satisfaction

Customer satisfaction is defined as "the number of customers, or percentage of total

customers, whose reported experience with a firm, its products, or its services
(ratings) exceeds specified satisfaction goals. Customer satisfaction is mainly derived
from the physiological response with the perceptual difference gap between
expectation before consumption and practical experience after consumption of service
or products. It implies an accumulated temporary and sensory response. Therefore,
under such a specific consumption setting, it frequently influences the overall attitude
and decision making when customers purchase products or service (Lee et al.,
2010).Anderson and Srinivasan (2003) assessed consumer satisfaction categorizing
itinto five dimensions of overall satisfaction, costumer favorite, customer loyalty,
customer recommendation and priority option. Understanding customer satisfaction
will facilitate companies to maintain customer satisfaction to products or services.

13
1.7.2 Price

Price is the amount of money charged for a product or service, or the sum of the
values that customers exchange for the benefits of having or using the product or
service (Kotler& Armstrong, 2010). Stanton et al. (1994) defined price as the amount
of money or goods needed to acquire some combination of another goods and its
companying services. But the marketing literature showed researchers’ inclination
towards price fairness in relation to customer satisfaction. Herrmann et al. (2007)
concluded that customer satisfaction is indirectly influenced by price and perception
of price fairness. The price fairness itself and the way it is fixed and offered have a
great impact on customer satisfaction. Based on this, the following hypothesis has
been developed:

H1: There is a negative relationship between price and customer satisfaction.

1.8Research methods

Research methodology is a systematic way to solve a problem. It is a science of

studying how research is to be carried out. Essentially, the procedures by which
researchers go through their work of describing, explaining and predicting phenomena
are called research methodology. This chapter therefore explains the methodology
that is employed in this study which includes various sections describing research
plan and design, description of the sample, instrumentation, data collection procedure
and time frame, validity and reliability of the study and analysis plan. In the absence
of methodology, it is likely that the conclusions drawn may be misunderstood.

Research methodology describes the method and process applied in the entire aspects
of study and helps to resolve the systematic problems. Research methodology is used
to collect information and data and sets out overall plan associated with a study. The
methodology may include publications research, interviews, survey and other research
techniques and could include both present and historical information. It provides a
basic framework on which the study is based. Before presenting the analysis and
interpretation of data, it is necessary that research methodology be described first.

14
1.8.1 Research design

This study has employed descriptive research design and casual comparative research
design to deal with issues associated with the services and customer satisfaction of
Nepalese people. The descriptive research design has been adopted for searching the
adequate data and information about factors affecting the customer satisfaction of
Nepal Telecom. This study also used the causal comparative research design to
establish the cause and effect relationship between service quality and customers’
satisfaction. Causal-comparative research design attempts to determine the cause or
consequences of differences that already exist between the variables and the
relationship between independent and dependent variables.

1.8.2 Sources of data collection

This study is based on primary data. The primary data and information is collected
and analyzed to determine the relationship between customer satisfaction and retail
banking of Nepalese commercial Bank. This study collect data from structured
questionnaire survey which contains the respondent related information through tick
mark questions, and 5-scale likert scale questions and dataare analyzed in descriptive
and causal comparative method. The relationship between dependent and independent
variable are analyzed in multi-step regression analysis.

1.8.3 Instrumentation

To collect the data survey was carried by distributing a set of structured questionnaire
to the customers of sample banks. The primary sources were used to extract the
information from the customers regarding the perception of customers on the level of
existing service quality in Nepal Telecom.

The study is based on the primary data. The data obtained from the questionnaires
survey are analyzed through SPSS. The instruments are descriptive statistics and
inferential statistics. Frequencies, percent, mean, medium, standard deviation,
correlation and test of significance are used in this study to measure the determinants
of customer satisfaction. To achieve the purpose of the study, structured questionnaire
was prepared. The questionnaire was formulated out of the concepts that were raised
in the review of the literature. The questionnaire is divided into two sections. The first
section, ‘A’ is about the respondent information including basic demographics

15
information of the respondents. “Section B” is about Likert type questions about
service quality variables that affect customer satisfaction which scale ranges from 1
(Strongly disagree) to 5 (Strongly agree).

1.8.4 Method of analysis

Multiple regression models are used in this study to analyze the relationship between
service quality and customer satisfaction. The multiple regression model used in this
study is as follow:

OS=β0+ β1P+ β2S+ β3C+ β4SP+et where P, S, C, and SP are price, service quality,
coverage and sales promotion..................................... (i)
Where,

OS= Overallsatisfaction

P=Price

S=Service quality

C=Coverage

SP=Sales promotions

β0 = Intercept of the dependent variable

e= error term and

β1, β2, β3, β4, β5 and β6 are the beta coefficients of the explanatory variables to be
estimated

16
 Chapter II

Data analysis and Presentation

This chapter provides systematic presentation and analysis of primary data. Different
statistical and regression models described in chapter one has been used for this
purpose. This section is divided into two sections. The first section deals with the
presentation and analysis of this primary data and presents the result of questionnaire
survey. The second section covers the analysis of regression model including
correlation analysis of the collected data.

2.1 Presentation and analysis of primary data

This section concerned with the results of questionnaire survey conducted the
individual of customer of NTC user. Questionnaire survey is designed to understand
the view of the respondents in relation to the relationship between customer
satisfaction and performance. This section includes analysis of the respondent’s
personal data such as: age, gender, academic qualification, occupation, monthly
income. To analyze the data descriptive statistics, Kendall’s test and regression are
used. The respondent profile along with their personal characteristics and results of
the survey are presented in the following sections.

2.2 Respondents profile

Table 2.1 shows the personal profile of the respondents. Regarding the gender of the
respondents, majority of the respondents (55 percent) are males followed by (45
percent) of the female respondents. The age of the respondents is divided into five
groups. Majority of the respondents are from age group of 20-30 years(60.8 percent)
followed by age group of 30-40 years (16.7percent), age group below 20 years (10.8
percent), age group 40-50 years (7.5 percent) and age group (4.2 percent)
respectively.

17
In the category of academic qualification, majority of respondents (46.7percent) are
bachelor’s degree holders followed by intermediate level (26.7 percent), master’s
degree holders are (12.5 percent), S.L.C level are (9.2 percent), M.Phil degree are (3.3
percent) and PhD Degree are (1.7).

Regarding the position of the respondents, majority of the respondent’s occupation as

student (58.3 percent), (13.3 percent) work as salaried person, (13.3 percent) work as
a businessman (8.3percent) work as government officer and (6.7 percent) work as a
housewife.

2.3 Demographic characteristics of the respondents

This section describes the demographic characteristics of the respondents of Nepalese

NTC user. The demographic characteristics related to personal characteristics. In this
study the respondents include the information about gender, age, academic
qualification, and occupation. Total of 150 questionnaires were distributed to the
customer of NTC users but only 120 questionnaires was collected.

18
 Table 2.1 Demographic characteristics of the respondents

Respondents character No. of responses Percentage

Gender
Male 66 55
Female 54 45
Total 120 100
Age (in year)
Below 20 13 10.8
20 to 30 73 60.8
30 to 40 20 16.7
40 to 50 9 7.5
Above 50 5 4.2
Total 120 100
Academic qualification
S.L.C 11 9.2
Intermediate 32 26.7
Bachelor 56 46.7
Masters 15 12.5
PhD Degree 2 1.7
M. Phil 4 3.3
Total 120 100
Occupation
Student 70 58.3
Businessman 16 13.3
Salaried Person 16 13.3
Housewife 8 6.7
Government Officer 10 8.3
Total 120 100

Source: Field Survey, 2022

19
Gender
The classification of the respondents on the basis of gender is presented in Figure 2.1.
The figure 2.1 shows that the majority of the respondents (55percent) are male
whereas the rest (45percent) of the respondents are female.

Figure 2.1: Respondents classified by gender

45%
Male
Female
55%

Source: Field Survey, 2022

Age

The age group of the respondents is categorized into five groups i.e. below 20 years,
20-30 years, 30-40 years, 40-50 and above 50 years. The classification of the
respondents by age category is presented in Figure 2.2.

20
 Figure 2.2: Respondents classified by age

4.2%
10.8%
7.5%

16.7% below 20
20-30
30-40
40-50
above 50

60.8%

Source: Field survey, 2022

The figure shows that majority of the respondents belong to the age category of 20
years to 30 years (60.8 percent) followed by age category 30 years to 40 years (16.7
percent), age category below 20 years (10.8 percent), age category of 40 years to 50
years(7.5 percent) and age category above 50 years(4.2 percent).

Academic qualification
Education is one of the most important characteristics that might affect the person’s
attitudes and the way of looking and understanding. The academic qualification of the
respondents is categorized into six groups i.e. PhD, M.Phil, Masters, Bachelor,
Intermediate/+2 and S.L.C. The classification of the respondents by academic
qualification in terms of percent is shown in Figure 2.3.

21
 Figure 2.3:Respondent classified by academic qualification

3.3% 9.2%
12.5% S.L.C
1.7%
Intermediate/+2
Bachelor
26.7%
Master
PhD Degree
46.7% M.Phil

Source: Field survey, 2022

The figure shows that majority of the respondents (46.7percent) are bachelor level
graduates followed by intermediate/+2 level (26.7percent) master degree(12.5)
S.L.C(9.2percent) M.Phildegree(3.3percent)and PhD Degree (1.7percent).

Occupation
The occupation of the respondents is categorized into five groups i.e. student,
businessman, salaried person, housewife’s and government officer. The classification
of the respondents by profession in terms of percent is shown in Figure 2.4.

Figure2.4: Respondents classified by occupation

8.3%
6.7%
Student
13.3% Businessman
Salaried Person
58.3%
Housewife
13.3%
Government Officer

Source: Field survey, 2022

22
The figure shows that majority of the respondents (58.3 percent) are student followed
by businessman (13.3 percent), salaried person (13.3 percent), government officer
(8.3 percent) and housewife (6.7 percent).

Customer satisfaction on price

Table 2.2 shows the customer satisfaction on price charged by Nepal Telecom.

Table 2.2: Customer satisfaction on price

This table shows the percentage, frequency, mean of the customer perception regarding price.
The statement is based on the price and is measured in five Likert scale 5as strongly agreed,
4 as agreed, 3 as neutral, 2 as disagreed and 1 as a strongly disagreed.

Statements Strongl Agree Neutra Disagre Strongl N Mean

y agree l e y
disagre
e
Call charge F 37 53 25 5 0 120 4.02
is affordable % 30.8 44.2 20.8 4.2 0 100
A% 75 20.8 4.2  
Bonus F 14 27 37 25 17 120 2.97
provided by % 11.7 22.5 30.8 20.8 14.2 100
telecom. A% 34.2 30.8 35  
NTC provide F 18 45 36 17 4 120 3.47
cost benefits % 15 37.5 30 14.2 3.3 100
service. A% 52.5 30 17.5  

Overall F 17 55 39 8 1 120 3.66

charges are % 14.2 45.8 32.5 6.7 0.8 100
satisfied. A% 60 32.5 7.5  
Gives free F 8 30 28 29 25 120 2.73
talk time % 6.7 25 23.3 24.2 20.8 100
A% 31.7 23.3 45  
Weighted average mean  3.37
Source: Field survey, 2022

Table 2.2 shows the price of customer satisfaction of NTC user. Among 120
respondents majority (75.00percent) agreewith call charge.Someof the respondents
(20.8percent) are neutral on the statement. However, the rest (4.2percent) of the

23
respondents do not agreed with the call charge by the telecom. The mean value for
this statement is 4.02.

Majority (35.00percent) of the respondents are not agreedwiththe bonus provided by

Nepal Telecom.Whereas, some of the respondents (30.8percent) are neutral on their
view. However, the rest (34.2percent) of the respondents think thatthe bonus provided
by Nepal Telecom is good. The mean value for this statement is 2.97.

Among the respondents, majority (52.5percent) of the respondent’s strongly agreed

with NTC cost benefits service. Some of the respondents (30.00percent) are neutral on
their view and the rest (17.5percent) of the respondents do notagree with this
statement. The mean value for this statement is 3.47.

The study revealed that majority (60.00percent) of the respondents agreedwith overall
charges (including internet, call, SMS). Some of the respondents (32.5percent) are
neutral regarding their view. And the rest (7.5percent) of the respondents do not
thinkoverall charges are satisfied. The mean value for this statement is 3.66.

According to the study it shows that majority (45.00percent) of the respondents are
not agreed with free talk time given by the telecom. Some of the respondents
(23.3percent) are neutral regarding their view. And the rest (31.7percent) of the
respondents are agreed with free talk time given by telecom. The mean value for this
statement is 2.73.

The mean value of the statement of price benefits of customer satisfaction of Nepalese
telecom users ranges from 2.73 to 4.02. Among them the most significant observation
on accuracy is essential for customer satisfaction in telecom services which is ranked
as 1. The weighted mean for price benefits of customer satisfaction of telecom users
is3.37 which reveal that on an average customer believe that telecom provide better
service.

24
Customer satisfaction on service quality
Table 2.3 shows the customer satisfaction on service provided by Nepal Telecom.

Table 2.3: Customer satisfaction on service quality

This table shows the percentage, frequency, mean of the customer satisfaction in Telecom
industry. The statement is based on the Services and is measured in five Likertscales 5 as
strongly agreed, 4 as agreed, 3 as neutral, 2 as disagreed, and 1 as a strongly disagreed.
Statements Strongl Agre Neutra Disagre Strongl N Mea
y agree e l e y n
disagree
NTC internet F 30 42 34 9 5 12 3.69
service is 0
satisfactory. % 25 35 28.3 7.5 4.2 10
0
A 60 28.3 11.7  
%
NTC services F 40 50 22 8 0 12 4.02
are to be 0
improvised. % 33.3 41.7 18.3 6.7 0 10
0
A 75 18.3 6.7  
%
Satisfied with F 9 36 41 16 18 12 3.02
recharge 0
service. % 7.5 30 34.2 13.3 15 10
0
A 37.5 34.2 28.3  
%
NTC service F 22 46 36 11 5 12 3.58
representatives 0
are well trained % 18.3 38.3 30 9.2 4.2 10
0
A 56.6 30 13.4  
%
Satisfied with F 24 42 37 13 4 12 3.78
the overall 0
services of % 20 35 30.8 10.8 3.4 10

25
 NTC. 0
A 55 30.8 14.2  
%
Weighted average mean 3.62
Source: Field survey, 2022

Table 2.3 is the respondents view regarding the services of the customer satisfaction
in telecom. Out of 120 respondents majority (75.00percent) of the respondents are
agreed with the statement that NTC services are to be improvised. Whereas, some
(18.3percent) of the respondentsare neutral on their view, the rest (6.7percent) of the
respondents do not agreed with the statement. The mean value of this statement is
4.02.

Most of the (60.00percent) of the respondents are satisfied on the view thatNTC
internet services.Whereas, some (28.3percent) of the respondents are neutral with this
statement that NTC internet services is satisfactory, the rest (11.7percent) of the
respondents are disagreed with this statement that NTC internet services is
satisfactory. The mean statement is 3.69.

This study found that majority (37.5percent) of the respondents satisfied with
recharge service. Whereas, some (34.2percent) of the respondents are neutral with the
statement, the rest (28.3percent) of the respondents are disagree with the recharge
service. The mean value of this statement is 3.02.

Similarly, among the respondents majority (56.6percent) of the respondents are

agreed with the statement that NTC services representatives are well trained.
Whereas, some (30.00percent) of the respondents are neutral with their view and the
rest (13.4percent) of the respondents are disagreed with this statementthatNTC
services representatives are well trained. The mean value for this statement is 3.58.

According to this study (55.00percent) of the respondents satisfied with the overall
services of NTC. Whereas some (30.8percent) of the respondents are neutral with
their view and the rest (14.2percent) of the respondents do not think that overall
services of NTC are good. The mean value is 3.78.

26
The mean values of the perceived service benefits of customer satisfaction are ranges
from 3.02 to 4.02. The weighted mean for the perceived service benefits of the
customer satisfaction is 3.62 which reveal that on average perceived service benefits
of the telecom able to make happy and satisfy to customer.

Customer satisfaction on coverage

Table 2.4: shows the customer satisfaction on coverage provided by Nepal Telecom.

Table 2.4: Customer satisfaction oncoverage (strength of signal)

This table shows the percentage, frequency, mean of the customer satisfaction of
Nepal Telecom. The statement is based on the Responsiveness on coverage and is
measured in fiveLikertscales 5 as strongly agreed, 4 as agreed, 3 as neutral, 2 as
disagreed and 1 as a strongly disagreed.

Statements Strongl Agre Neutral Disa Strongl N Mea

y agree e gree y n
disagre
e
NTC network F 24 45 25 17 9 120 3.48
coverage is % 20 37.5 20.8 14.2 7.5 100
satisfactory. A% 57.5 20.8 21.7  
Network F 9 38 49 16 8 120 3.2
availability is % 7.5 31.7 40.8 13.3 6.7 100
very good. A% 39.2 40.8 20  
Satisfied with F 19 42 33 18 8 120 3.38
call clarity. % 15.8 35 27.5 15 6.7 100
A% 50.8 27.5 21.7  

27
 Network is F 6 40 31 31 12 120 2.98
available % 5 33.3 25.8 25.8 10 100
during A% 38.3 25.8 35.8  
traveling
I have never F 12 28 35 26 19 120 2.9
faced call % 10 23.3 29.2 21.7 15.8 100
disconnection A% 33.3 29.2 37.5  
during the call
Weighted average mean 3.19
Source: Field Survey, 2022

The majority (40.8percent) of the respondents are neutral on their view. Whereas,
some (39.2percent) of the respondents are agreed with the network availability
provided by telecom and the rest (20.00percent) of the respondents do not think
thatthe network availability is good enough. The mean value for this statement is 3.2.

Amongthe respondents, majority (50.8percent) of the respondents strongly agreed

with call clarity. Whereas, some (27.5percent) of the respondents are neutral on their
view and the rest (21.7percent) of the respondents do not agreed with this statement.
The mean value for this statement is 3.38.

The study revealed that majority (38.3percent) of the respondents agreedwith the
network available during travelling. Whereas, some (25.8percent) of the respondents
are neutral regarding their view and the rest (35.8percent) of the respondents do not
think that network is available during traveling. The mean value for this statement is
2.98.

According to the study it shows that majority (37.5percent) of the

respondent’sdisagreed with the statement that they have never faced call
disconnection during the call. Whereas, some (29.2percent) of the respondent are
neutral regarding their view and the rest (33.3percent) of the respondents have never
faced the call disconnection during call. The mean value for this statement is 2.9.

The mean value of the statement of coverage benefits of customer satisfaction of

telecom ranges from 2.9 to 3.48. Among them the most significant observation on
responsiveness is essential for customer satisfaction in communication services which

28
is ranked as 1. The weighted mean for the network coverage of customer satisfaction
of Nepal Telecom is 3.19 which reveals that on an average customer believe that
Nepal Telecom provide better network coverage.

Customer satisfaction on sales promotion

Table 2.5 shows the customer satisfaction on sales promotion done by Nepal
Telecom.

Table 2.5: Customer satisfaction on sales promotion

This table shows the percentage, frequency, mean of the customer satisfaction
regarding Sales promotion of customer satisfaction of Nepal Telecom industry. The
statement is based on the sales promotion and is measured in five Likertscales 5 as
strongly agreed, 4 as agreed, 3 as neutral, 2 as disagreed and 1 as a strongly disagreed.

Statements Strongl Agre Neutra Disagre Strongl N Mea

y agree e l e y n
disagree
Advertisements F 22 44 37 9 8 12 3.53
are attractive. 0
% 18.3 36.7 30.8 7.5 6.7 10
0
A% 55 30.8 14.2  
Quality of F 8 46 45 19 2 12 3.33
service as per 0
the % 6.7 38.3 37.5 15.8 1.7 10
advertisement. 0
A% 45 37.5 17.5  
Offering bonus F 20 32 41 21 6 12 3.33

29
 to attract the 0
customer. % 16.7 26.7 34.2 17.5 5 10
0
A% 76.4 22.6 1  
Helps me make F 17 42 40 15 6 12 3.41
faster purchase 0
decision. % 14.2 35 33.3 12.5 5 10
0
A% 17.7 33.3 17.5  
Fun and F 15 42 46 9 8 12 3.39
enjoyable. 0
% 12.5 35 38.3 7.5 6.7  
A% 47.5 38.3 14.2  
Weighted average mean 3.4
Source: Field Survey, 2022

Table2.5shows the sales promotion of Nepal Telecom. Among 120respondents,

maximum of (55.00percent) agreed thatadvertisements are attractive. Whereas, some
(30.8percent) of the respondents are neutral on their view and the rest (14.2percent) of
the respondents do not agreed with the advertisement. The mean value of the
statement is 3.53.

The majority (45.00percent) of the respondents agreed thatNepal Telecom provided

quality of service as per the advertisement. Whereas, some (37.5percent) of the
respondentsare neutral on their view and the rest (17.5percent) of the respondents do
not think thatNepal Telecom has provided quality of services as per the
advertisement. The mean value for this statement is 3.33.

Amongthe respondents, majority (7.64percent) of the respondents agreed thattelecom

offer bonus to attract customer. Whereas, some (22.6percent) of the respondents are
neutral on their view and the rest (1.00percent) of the respondents do not agreed with
this statement. The mean value for this statement is 3.33.

The study revealed that the majority (33.3percent) of the respondents are neutral
regarding their view. Whereas some (17.7percent) of the respondents are agreed that
sales promotion help them to make faster purchase decision. And the rest

30
(17.5percent) of the respondents do not think thatsales promotion helps them to make
faster purchase decision.. The mean value for this statement is 3.41.

According to the study it shows that majority (47.5percent) of the respondents agreed
thatsales promotion is fun and enjoyable. Whereas, some (38.3percent) of the
respondent are neutral regarding their view. And the rest (14.2percent) of the
respondents do notagreed with the statement the mean value for this statement is 3.39.

The mean value of the statement of customer satisfaction of Nepal Telecom ranges
from 3.33 to 3.53. Among them the most significant observation on accuracy is
essential for customer satisfaction in telecom services which is ranked as 1. The
weighted mean for the customer satisfaction onsales promotion of Nepal Telecom is
3.40 which reveal that on an average customer believe that Nepal Telecom provide
better sales promotion.

2.3Major findings

Based on the analysis of data, the major findings of this study are summarized as
under:

1. Among 120 respondents, majority of the respondents were male (55 percent)
whereas minority of the respondents (45 percent) was female respondents.
2. Among 120 respondents, majority of the respondents (60.8 percent) fall under
the age category of 20 to 30 years where as minority of the respondents (4.2
percent) fall under the age category of above 50.
3. Regarding the academic qualification, among 120 respondents, majority of
the respondents (46.7 percent) fall under Bachelor’s degree whereas minority
of the respondents (1.7 percent) falls under Ph. D degree.
4. Among the 120 respondents, majority of the respondents (58.3 percent) fall
under students’ category whereas minority of the respondents (6.7 percent)
falls under Housewife’ category.
5. Weighted average mean score for overall customer satisfaction is 3.67 which
show the positive relationship with telecom facilities.
6. The study found that the weighted average mean for price is 3.37 which
revealed that customers are satisfied with the price.

31
7. Weighted average mean score for quality service quality is 3.62 which
revealed that the services plays important factors in satisfying customer that
helps in communication sector.
8. Weighted average mean score for coverage is 3.19 which shows that
customer perceives network coverage as an important factor to increase the
customer satisfaction level.
9. Weighted average mean score for sales promotion is 3.40 which states that
customers perceives sales promotion as an important indicator of customer
satisfaction to increase the satisfaction level.
10. The correlation between OS with that of price is negatively significant at
5percent level of significance which indicates lower the price higher will be
customer satisfaction.
11. The correlation between OS with that of service quality is positively
significant at 1percentand5percentlevel of significance which indicates higher
the services higher will be customer satisfaction.
12. The correlation between OS with that of network coverage is positively
insignificant at 1percent level of significance which indicates higher the
coverage higher will be customer satisfaction.
13. The correlation between OS with that of sales promotion is positively
significant at 5percent level of significance which indicates higher the sales
promotion higher will be customer satisfaction.
14. The majority (75.00percent) of the respondents agreed with the call charge of
Nepal Telecom. (20.8percent) of the respondents are neutral on their view.
(4.2percent) of the respondents do not think that the call charge is affordable.
The mean value for this statement is 4.02.
15. Similarly, among the respondents majority (55.00percent) of the respondents
are agreed with the statement that Nepal Telecom provide the quality
services. (30.8percent) of the respondents are neutral with their view and
(14.2percent) of the respondents are disagreed with this statement that Nepal
Telecom provide the better quality service. The mean value for this statement
is 3.78.
16. The majority (70.8percent) of the respondents agreed that NTC has good
brand image. (25.00percent) of the respondents are neutral on their view.

32
 (4.2percent) of the respondents do not think thatNTC have good brand image.
The mean value for this statement is 3.93.
17. The result of correlation analysis shows positive relationship of service,
coverage and sales promotion with customer satisfaction. It means an
increase in service, coverage and sales promotion will lead to an increase in
customer satisfaction.

18. The result of correlation analysis shows negative relationship of price with
customer satisfaction. It means an increase in price will lead to a decrease in
customer satisfaction.

19. The beta coefficient for price is negative with customer satisfaction. It reveals
that lower the price, higher would be the customer satisfaction. Similarly,
customer satisfaction is positively related with services. It reveals that more
the effective services, higher would be the customer satisfaction.

20. The beta coefficient for sales promotion is positive with customer
satisfaction. It indicates that higher the sales promotion and advertisement,
higher would be customer satisfaction. Similarly, the beta coefficient for
coverage is positive with customer satisfaction. It reveals that strong the
service coverage, higher would be the customer satisfaction.

Chapter III

Summary and conclusion

3.1 Summary

Customer satisfaction in the Telecom industry plays a vital role to create a healthy
business status being service based industry. In any service based industry customer
service is at highest priority. In Telecom industry customers are more directly linked
with telecom personal for any kind of services or products. Therefore, telecom always
should focuses on training its front desk staffs to provide quality service knowing

33
their expectations and wants. Customer satisfaction is important because it provides
marketers and business owners with a metric that they can use to manage and improve
their business.

Despite of satisfactory facilities proven by Telecom of Nepal, it needs to address the

major issues related with the telecom such as the effect of service quality of customer
satisfaction. Measurement of quality service of Telecom industry, effects on sales
promotion, moreover the study needs to address the relationship between customer
satisfactions with performance.

The main objective of this study is to investigate the relationship between customer
satisfaction and services provided by Nepal Telecom. There is need to explore the
relationship between customer satisfaction and facilities efforts on customer
satisfaction.

The study is based on primary sources of data. The total number of observation for the
study consists of 120 respondents for analysing the relationship between customer
satisfaction and facilities provided by Nepal Telecom. Total responses collected from
the respondent were coded and tabulated into SPSS worksheet. Different statistical
tools such as Cronbach’s alpha, Mean, descriptive statistics, Pearson’s correlation and
stepwise regression were used for the analysis of data. Microsoft Excel sheet was also
used for the data collection procedures and for the calculation of the average scores.

3.2Conclusion

The major conclusion of the study is that service quality variables of Nepal Telecom
play a prominent role in determination of customer’s satisfaction. Service quality
factors highly supportNepal Telecom for the competition. Coverage is the main
reason for the selection of Nepal Telecom. The sales promotion also affects mostly
customer satisfaction of Nepal Telecom industry.

The study reveals that price is negatively correlated to customer satisfaction. This
indicates that higher the price, lower would be the customer satisfaction. Similarly,
the study shows that customer satisfaction is positively related to service. It indicates
that higher the service quality, higher would be the customer satisfaction. The result

34
also shows that coverage and sales promotion are positively related to customer
satisfaction. This indicates that higher the coverage, higher would be the customer
satisfaction and higher the sales promotion, higher would be the customer satisfaction.
The regression result shows that price has negative impact on customer satisfaction
which indicates that an increase in price leads to decrease the customer satisfaction.
Likewise, service quality, coverage and sales promotion have positive impact on
customer satisfaction. This indicates that higher the service quality, coverage and
sales promotion, higher would be the customer satisfaction. Thus, the study concludes
that service quality is the major factor affecting customer satisfaction, followed by
price and sales promotion.

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