Chapter 1

Introduction

Rationale

According to the World Health Organization, customer satisfaction is the psychological

concept of feelings of well-being and pleasure due to acquisition of product or service that
reached their expectations. Despite extensive research in the years since Cardozo’s (1965)
classic article, researchers have yet to develop a consensual definition of consumer satisfaction.
He addresses this definitional issue by paraphrasing the emotion literature, noting that
"everyone knows what [satisfaction] is until asked to give a definition (Oliver, 1997). He defines
customer satisfaction as a ‘person’s feeling of pleasure or disappointment, which resulted from
comparing a product’s perceived performance or outcome against his/her expectations’ (Kotler,
Philip).

Customer satisfaction is considered as the best studied concept in marketing literature

(Liu & Jang, 2009). It is a direct response to consumption (Munusamy & Chelliah, 2011).
Satisfaction is the customers’ evaluation of a product/service in terms of whether it has met
their needs and expectations (Zeithaml & Bitner, 2003). Anderson and Fornell (1993) view
satisfaction as customer’s total consumption experience with a product or service over multiple
transactions (Anderson and Fornell 1993). A definition of satisfaction is "customer response
after service performance evaluation to expected standards" (Jack and Powers, 2013).
Expectations are influenced by previous experiences with the service but also what others have
said about the brand. If the customer feels satisfied, then the long-term relationship with the
organization can be established (Munusamy & Chelliah, 2011). According to Reisig and
Stroshine Chandek (2001), this theory is summarized in a four-stage process. First, the customer
formulates expectations for a product. The customer can imagine performance based on his
product knowledge. Expectations may be normative, as customer’ judgement of the expected
performance. Second, customer value product performance. Third, a comparison is made
between the impression of the customer and his initial expectations. Finally, the customer's
decision on the product is taken. (Reisig and Stroshine Chandek, 2001).

According to Oliver (2010) customer satisfaction is the result of a comparison between

expectations and perceived performance. When the perceived performance is above
expectations, then the customer is satisfied. Conversely, if perceived performance will be under
expectations, the customer is dissatisfied. This means that the customer can judge the
performance of the product as better or worse, or equal to expectations. Compatibility
between customer's perception of the product and its initial expectations leads to satisfaction.
The perception of performance is seen as the attribute of satisfaction measurement. Studies in
this field indicate that the quality of the internet connection is key driver to customer
satisfaction. According to Vassileva and Balloni (2014), the service quality is the most studied
area of services literature leading to customer relationship. It is closely related to costs,
profitability, customer satisfaction and customer retention (Vassileva and Balloni 2014). The
origins of the service quality study occur in early theoretical works from Nordic School
(Grönroos, 1983; Lehtinen and Lehtinen, 1982). Authors review the quality parameters of
Internet access services. and suggest that the bandwidth of Internet connections tend to have
significant positive and negative, respectively, effects on satisfaction of customers with the
internet provider (Giovanis et al., 2014; Grzybowski et al., 2018). The connection speed is an
extraordinarily important quality feature. The testing instruments enable users to measure the
transmission rates they actually get from their Internet connection supplier (Elkins, 2018).
According to Athanassopoulos and Iliakopoulos (2003), who researched customer’s satisfaction
of the residential customers of a major European telecommunication company, the
antecedents of customer satisfaction in the telecommunication industry can be assessed
through the performance of service providers.

Customers’ satisfaction toward the service of internet provider was important to gain
awareness if every internet provider towards their customer made them satisfied. Customers
perceive the failure to supply the agreed connection bandwidth as a (psychological) “loss”
(Chuang et al., 2012). More frequent losses contribute to a lower experienced value or quality
of a service and result in decreasing customer loyalty to the Internet provider (Stocker and
Whalley, 2018). Wang, Lo and Yang (2004) further investigated the dynamic relationships
between service quality, customer value and customer satisfaction and their influence on
customer behaviour in China’s mobile phone market. The results indicate that network quality
is one of the most important drivers of overall customers’ perceived value derived from service
quality, customer value, and customer satisfaction.

Research Objective

The purpose of this study is to measure the level of satisfaction of customers towards internet
providers. Specifically, this study has the following objectives:

1. To assess the quality of internet service providers in terms of:

1.1 Internet Performance

1.2 Customer Service Quality

2. To ascertain customer satisfaction in terms of:

2.1 Stress level

 2.2 Satisfaction Level

3. To find out the significant relationship of customer satisfaction and internet providers of
students in Barangay Tigatto, Davao City.

Hypothesis

There is no significant relationship between internet providers and customer satisfaction

among the residents in Barangay Tigatto, Davao City.

Chapter 2 Review of Related Literature

This section will present discussions related to the independent and dependent variables of the
study. The Internet providers has the following indicators, namely: Internet performance, and
customer service quality. The customer satisfaction has the following indicators: stress level,
and satisfaction level.

I. Internet Providers

An article by Adrian (2020) states that during the most recent global index by internet
speed monitor Ookla, the Philippines has been ranked 104 TH out of 176 countries in terms of
fixed broadband speed and ranked 166th out of 141 in mobile broadband speed. There are 3
types of internet connection in the Philippines namely DSL, fiber and wireless broadband.
Known internet service providers in the Philippines are PLDT, Globe, Skycable and DITO
telecommunication. With the Philippines’ recent ranking in the internet industry, there is still a
lot to improve. Of note, according to the latest speedtest in October 2020, the fastest internet
providers in the Philippines are Smart and PLDT.

A. Internet performance

Speedtest by Ookla is a conclusive way of measuring the speed and performance of the
internet connection. It is founded in 2006 and more than 30 billion tests have been taken since
then. According to the latest Speed test global index by Ookla, the top 5 countries that has the
fastest internet connection for mobile are South Korea, United Arab Emirates, China, Qatar, and
Australia. On the other hand, the top 5 countries that has the fastest for fixed internet
connection are Singapore, Hong Kong, Romania, Switzerland and Thailand (Ookla, 2006).

According to Darr (2020), the federal, state and local government must allocate
correctly the funding for network availability and performance to better serve its citizens.
Furthermore, an article by Knebl (2020), states that poor wireless service in a popular location
like shopping malls, office park or transit centers can greatly impact customer’s satisfaction as
well as the operator’s reputation. Due to increasing demand of better internet connectivity, the
Philippines has expanded its internet coverage by building more infrastractures for the internet
providers across the country. This led to great improvement from 2016 but the Philippines is
still much behind from most countries in the world (Gomez, 2020).

B. Customer service quality

According to several articles published electronically by Business Queensland (2019),

crucial to good customer service is establishing a good relationship with customers. Having a
positive and friendly environment will ensure that the customer is happy and will often return
to the service provider. Basic principles of good customer service are to manage their
complaints promptly, the staff must have good communication skills and continuously looking
for ways to improve the service. Erevelles et al. (2003) further elaborated that customer service
includes technical support and responsiveness of service staff as an important determinant or
key factor in choosing an internet provider service.

II. Customer Satisfaction

Patel (2018) described customer satisfaction as a measure how the product or service
meets the customer’s expectation. And a good customer satisfaction is good in increasing the
company’s revenue by brand loyalty, brand buzz and brand trust. A customer satisfaction
survey is one of the easiest and most reliable methods for measuring satisfaction levels of any
given products or service (i.e., internet connection).

A. Stress level
An online report published in 2016 by the Ericsson mobile broadband company revealed
that a slow internet connection causes a stress level spike among consumers. A study was
conducted and showed that even a 2 second delay in the internet connection while watching
Youtube videos caused a person’s heart rate to accelerate to about 3% and those who
experienced a 6 second delay had a 6% acceleration of heart rate. Thus, slow internet
connection makes the body exhibit a stress response (Cueto, 2016). It also hinders students
and workers from finishing their tasks thus exacerbating the stress response of the body. In
order to quantify stress level, available and accessible stress level questionnaires are devised to
generally have an insight on the amount of stress a person has. A reliable tool is an ISMA Stress
questionnaire devised by the International Stress Management (2013) in the United Kingdom
that provides a quick measure of the current stress level of an individual.

B. Satisfaction level

Moorthy et al. (2016) published an online journal on customer behavioral intention and
satisfaction on internet service provider in India wherein service quality have positive impact on
patient’s satisfaction level. Furthermore, a study in North Carolina, USA conducted by Erevelles et al. in
2003, showed that there is low expectation in this industry despite the competition and the
dissatisfaction of internet service and connection is surprisingly high. This is attributed to the wrong
assumptions of internet service providers that consumers only choose their providers based on the
specifics and price of the service. To quantify satisfaction level, there are surveys and questionnaires
available online devised for suppliers or providers to improve the quality of service they are offering
their consumers. Examples of which are Customer Satisfaction Score (CSAT), Customer Effort Score (CES)
and Net Promoter Score (NES).

According to Oliver (1977), expectation-disconfirmation model is used in psychology and

marketing. Also, it has been adapted by information systems and consumer research. This model
explains that expectation directly influence the perceived performance of the supplier and
disconfirmation of beliefs and indirectly influence the consumer’s satisfaction. Disconfirmation refers to
evaluation that the consumer has to a certain service or product and can be negative or positive which
will in turn influence the satisfaction level. Negative disconfirmation if it underperforms the person’s
original expectations and positive if it outperforms.

Independent Variable

The above literature explains that customer satisfaction is dependent on the internet
service provider’s effort to maximize their service experience such that any technical difficulties
must be managed promptly and a good speed of internet connection for a certain amount paid
by the consumers.

Correlation between Measures

Basically, a high level of customer satisfaction is attributed to a good customer service

quality and uninterrupted internet connection. Expectation-disconfirmation model rests on the
premise that the expectations of the consumer directly affect the perceived performance of the
internet providers and that the disconfirmation of beliefs either positive or negative directly
influence their satisfaction levels. The customer’s expectation on the quality of customer’s
service and speed of internet connection will have a direct impact on their satisfaction level
which will be quantified by measuring the customer’s stress level and satisfaction level.

Theoretical Framework

This study is anchored on the model of Expectation-Disconfirmation model wherein

disconfirmation (the difference between expectations & perceived performance) affects citizen
satisfaction. This model is usually used in analysis of customers’ satisfaction level to internet
service providers. Its study showed that the consumers’ expectations of internet service
providers are generally relatively low due to poor performance in the industry and that
affective factors contribute to the satisfaction process and switching behavior to another
internet service providers. This affective factor includes the experience of the consumers from
the quality of customer’s service given. Figure 1 shows that expectations and perceived
performance have direct effect on the disconfirmation of beliefs which has two aspects which
are positive and negative. Positive if the product or service outperforms the consumer’s original
expectations and negative if it underperforms the original expectation which would in turn
directly affect the customer satisfaction level.

Figure 1. Theoretical Framework

Conceptual Framework

Figure 2 shows the conceptual framework of this study wherein the independent
variables are represented by the speed of internet connection and customer’s service quality
and the customer’s satisfaction as the dependent variable. The independent variables will be
measured by utilizing the internet speed test and QuestionPro Survey Software for the
customer quality survey form. On the other hand, Customer satisfaction will be measured by
using the ISMA stress questionnaire and a customer satisfaction survey both can be found in
websites using a search engine.

Figure 2. Conceptual Framework

Significance of the study

This study on the quality of internet service provider to customer’s satisfaction aims to
contribute to the general body of knowledge regarding the current situation of the quality of
internet service in a local setting in order to provide grounds for improvement and more studies
in the future. In addition to that, this study is relevant to the following sectors or offices:

National government of the Philippines to provide adequate budget allocation for the
improvement of the current situation of internet service in the country.

Department of Information and Communications Technology to devise projects or programs

that will improve the internet connection in the Philippines and to present recent data to the national
government for better funding to address the technological dilemma of its constituents.

Department of Science and Technology to conduct more researches in relation to the

poor internet connection in the Philippines and provide more recent data that will help for the
funding of better internet connections and provide alternatives to speed up economic progress.

Future researchers to conduct more in-depth research that is lacking in this study and
will be able to seek solutions for improvement.

Definition of terms

The following terms are defined operationally in the study,

 Internet service provider – in this study, it is defined as the company that

provides internet connection in the research locale. The internet service
providers available are Globe, Smart, PLDT, Sun and Sky.

 Quality of internet service providers – is the independent variable of the study.

It will be measured according to internet performance and the quality of
customer’s service.

 Customer Satisfaction – is the dependent variable of the study wherein a survey

and a questionnaire will be used to measure the stress level and customer’s
satisfaction level which are indicators for this variable.

 Internet performance – is defined as the speed of the internet connection which

will be measured by the speedtest available online.
 Methodology

Research Design

This study will be using quantitative-correlational research design. Quantitative research

design is defined as the process of collecting and analyzing numerical data to identify patterns
and averages, generate predictions, test casual relationships and generalize results to broader
populations. This type of research design can be used in descriptive, correlational and
experimental research. Correlational research design is a subcategory of quantitative research
wherein it investigates the relationship between the independent variable and the dependent
variables therefore, it formally tests hypotheses or predictions using statistics (Bhandari, 2020).
This type of research design is utilized in this study to quantify the level of quality of the
internet service providers and determine the relationship to customer’s satisfaction level.
However, correlational research design only uncovers the type of relationship, it does not
determine the cause of the relationship (Chiang et al., 2015).

Population and Sample

The research locale will be conducted in Barangay Tigatto, Davao City which is situated
in the island of Mindanao with coordinates of 7.1229 and 125.5917 and belonged to Davao
Region (Region XI) as described by the Philippine Postal Corporation. Barangay Tigatto is a
barangay in Davao City that shares a common border with Barangays Indangan, Buhangin,
Cabantian, Waan, Mandug and New Carmen (As shown in Figure 3 and Figure 4). On the latest
2015 population census, Barangay Tigatto has a total population of 36,387 according to
National Statistics Office of the Philippines.
Total enumeration sampling which is a type of purposive sampling will be utilized for
this study. The sample size will be 381 respondents by Slovin’s formula with a margin of error of
5%. They will be comprised of Davao City residents who have current subscription in any
internet service providers regardless if it is mobile or broadband. The inclusion criteria will be
residents of Barangay Tigatto, Davao City, of legal age, who have current subscription in any
internet service providers, working or student, married or unmarried and only those who have
personally signed a consent form which will be distributed prior to the study. Exclusion criteria
will include those who have recently terminated their subscription from any internet service
providers, those diagnosed with anxiety or stress disorders and those who are working under
any of the internet service providers. This study will be conducted for a span of 1 year from
January 2021 to January 2022 due to the pandemic.
 Figure 3. Map of the Philippines

Figure 4. Map of Barangay Tigatto, Davao City

Research Instrument

For the independent variable which is the quality of internet service providers, it will be
assessed in terms of the quality of customer service and internet performance. These will be
measured by a survey and speed test, respectively. A free speed test is available online and the
result will show the current speed of internet connection of the consumer’s device. Customer
service quality can be assessed through a 15-ITEM questionnaire taken from online from
QuestionPro Survey Software (2020).

Point Score Range of Customer

Means Service
Quality
1 1.0 – 1.79 Very Low
2 1.80 – 2.59 Low
 3 2.60 – 3.39 Moderate
4 3.40 – 4.19 High
5 4.20 – 5.00 Very High
Table 1. Likert-type Scale Range of Means and Interpretation

For the measurement of the dependent variable which is the customer satisfaction
level, a stress level questionnaire and customer satisfaction survey will be utilized. A 20-item
questionnaire will be used taken from the ISMA stress questionnaire and the Customer
Satisfaction Survey and will use the likert-type scale. The ISMA stress questionnaire was
developed by the International Stress Management Association (2013) to give an overview of
the current stress level of an individual. While the customer satisfaction level can be measured
by the customer satisfaction score (CSAT score) wherein it is a value that reflects how the
customer perceives the services and products being availed as described in an article by the
Callcentre Helper Magazine in October 2020. Both the questionnaires of the dependent and
independent variables will be validated by internal and panel of experts.

Point Score Range of Stress Level Customer

Means Satisfaction
Level
1 1.0 – 1.75 Very Low Very Low
2 1.76 – 2.50 Low Low
3 2.51 – 3.25 Moderate Moderate
4 3.26 – 4.0 High High
Table 2. Likert-type Scale Range of Means and Interpretation

Data Collection

The research proposal will be approved by the panel and validation of questionnaires
will be done. After approval, a consent form will be given to each respondent followed by a
questionnaire for them to answer. The data that will be gathered from the respondents will be
analyzed and interpreted.

Statistical Tools

Since this study will utilize a quantitative research design, it will be using both the mean
and Pearson r statistical tools in processing the gathered data. The mean will determine the
level of quality of the internet service providers and the level of customer’s satisfaction level.
While the Pearson r will be utilized to determine the relationship between the internet service
providers and the customer’s satisfaction level.
Ethical Considerations

The research proposal and questionnaire will be examined and approved by the
Assumption Polytechnic College of Southern Mindanao Research Committee. The majority of
respondents will be of legal age therefore, an informed consent will be checked by the ethics
committee. Their participation will be voluntary and they will be not subjected to coercion. The
identity of the participants will be made confidential and will not be divulged to the public.
Unwilling participants of this study will be given a chance to withdraw and backout from
answering questionnaires or surveys. This study will be checked thoroughly for plagiarism and
fabrication of data.
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