CUSTOMER SATISFACTION ON MOBILE SERVICE

(With References to Nepal Telecom and Ncell)

A Thesis
By
RAM BANIYA
Central Department of Management
Exam Roll no. 277/014
Registration No. 7-2-551-104-2010

Submitted in partial fulfillment of the requirements for the degree of

Master of Business Studies (MBS)
in the
Faculty of Management
Tribhuvan University

Kathmandu, Nepal
April, 2019
 ii

RECOMMENDATION LETTER

It is certified that thesis entitled Customer Satisfaction on Mobile Service

(With References to Nepal Telecom and Ncell) submitted by Ram Baniya is an

original piece of research work carried out by the candidate under my supervision.

Literary presentation is satisfactory and the thesis is in a form suitable for publication.

Work evinces the capacity of the candidate for critical examination and independent

judgment. Candidate has put in at least 60 days after registering the proposal. The

thesis is forwarded for examination.

Prof. Dr. Bhoj Raj Aryal

Thesis Supervisor

Central Department of Management

Tribhuvan University, Kirtipur, Kathmandu, Nepal

April, 2019
 iii

APPROVAL SHEET

We, the undersigned, have examined the thesis entitled Customer Satisfaction

on Mobile Service (With References to Nepal Telecom and Ncell) presented by Ram

Baniya, a candidate for the degree of Master of Business Studies (MBS) and

conducted the viva voce examination of the candidate. We hereby certify that the

thesis is worthy of acceptance.

Prof. Dr. Bhoj Raj Aryal

Thesis Supervisor

Internal Examiner

External Examiner

Prof. Dr. Sanjay Kumar Shrestha

Chairperson, Research Committee

Dr. Ramji Gautam

Head of Department

Central Department of Management, Tribhuvan University

Date: April, 2019

 iv

Certification of Authorship

I certify that the work in the thesis has not previously been submitted for a

degree nor has it been submitted as part of requirements for a degree except as fully

acknowledged within the text.

I also certify that the thesis has been written by me. Any help that I have

received in my research work and the preparation of the thesis itself has been

acknowledged. In addition, I certify that all information sources and literature used

are indicated in the reference section of the thesis.

___________________

Ram Baniya

Roll No, 277

 v

Acknowledgements

My deep gratitude goes to my respected supervisor Prof. Dr. Bhoj Raj Aryal , and

Head of Research Department Prof. Dr. Sanjay Kumar Shrestha, of Central

Department of Management, T.U. for their valuable suggestion and encouragement

without which this work would not have been completed.

I would also like to express my thanks to my respected teachers, library staffs for their
kind cooperation, help and encouragement on writing this dissertation.

I found myself indebted to Mr. Shyam Thapa, for his valuable helps and suggestions
in course of preparation of this thesis.

I would like to pay my gratitude to all the user of NTC and NCELL who helped me to
provide necessary information. for this research work.

Lastly, I would like to express my deep appreciation to all of my friends who directly
and indirectly supported as well as inspired me to complete this thesis.

April, 2019 Ram Baniya

Roll No. 277/014
 vi

Abbreviations

4G Fourth Generation
CDMA Code Division Multiple Access
CRBT Caller Ring Back Tone
Govt. Government
GPRS General Packet Radio Service
GSM Global System for Mobile
Ltd. Limited
MIS Management Information System
MMS Multimedia Message Service
NTC Nepal Telecom
Pvt. Private
SMS Short Message Service
SNPL Spice Cell Nepal Private Limited
SPSS Statistical Package for Social Science
VMS Voice Mail System
WLL Wireless Local Loop
 vii

TABLE OF CONTENTS

CONTENTS Page

TITLE PAGE i
RECOMMENDATION LETTER ii
APPROVAL SHEET iii
CERTIFICATION OF AUTHORSHIP iv
ACKNOWLEDGEMENTS v
ABBREVIATIONS vi
TABLE OF CONTENTS vii
LIST OF TABLES ix
LIST OF FIGURES x
ABSTRACT xi
CHAPTER I: INTRODUCTION 1-12

1.1 Background of the Study 1

1.2 Focus of the Study 8

1.3 Statement of Problem 8

1.4 Objectives of the Study 10

1.5 Significance of the Study 10

1.6 Limitations of the Study 11

1.7 Organization of the Study 12

CHAPTER II: LITERATURE REVIEW 14-34

2.1 Introduction 14

2.2 Theoretical Framework 14

2.3 Review of Related Studies 24

2.4 Research Gap 34

 viii

CHAPTER III: METHODOLOGY 36-39

3.1 Introduction 36

3.2 Research Design 36

3.3 Sources of Information/Data 37

3.4 Sampling Design 37

3.5 Data Collection Procedure 38

3.6 Methods of data Processing 39

3.7 Tools for Analyzing 39

CHAPTER IV: RESULTS 40-55

4.1 Introduction 40

4.2 Analysis of Primary Data 40

4.3 Major Findings 53

CHAPTER V:CONCLUSIONS 58-61

5.1 Discussion 58

5.2 Conclusions 60

5.3 Implications 61

References

Appendix
 ix

LIST OF TABLES

Table 4.1 Respondents’ Profile 41

Table 4.2 Customers Response about Immediate Response 42

Table 4.3 Timely Responses to Customers 43

Table 4.4 The Calling Line Identification 44

Table 4.5 Customer Satisfaction Regarding Network Availability 45

Table 4.6 Customer Attitude towards Billing System 46

Table 4.7 Customer Attitude towards Validity Period 47

Table 4.8 Customer Satisfaction on Network Performance 48

Table: 4.9 Customer Satisfactions Regarding Network Availability 49

Table 4.10 Customer Responses Regarding Voice Quality 50

Table 4.11 Customer Perceptions on SMS Charge profile 51

Table 4.12 Customer Attitudes towards Caller Ring Back Tone Charge 52
 x

LIST OF FIGURES
Figure 4.1 Responses Provided Regarding Customer Queries 42

Figure 4.2 Timely Responses to Customers 43

Figure 4.3 Calling Line Identification 44

Figure 4.4 Customer Satisfaction Regarding Network Availability 45

Figure 4.5 Customer Attitudes towards Billing System 46

Figure 4.6 Customer Attitudes towards Validity Period 47

Figure 4.7 Customer Satisfactions on Network Performance 48

Figure: 4.8 Customer Satisfactions Regarding Network Availability 50

Figure 4.9 Customer Responses Regarding Voice Quality 51

Figure 4.10 Customer Perceptions on SMS Charge 52

Figure 4.11 Customer Attitudes towards Caller Ring Back Tone Charge 53
 xi

ABSTRACT

The study seeks to identify the customer satisfaction on mobile services with

references to NTC and Ncell users within Kathmandu valley. Customers are satisfied

when their needs, wants, desires and expectation are fulfilled by any brand, used by

them. In case of different brands of cellular network like NTC and NCELL, factors

like price, service quality and customer service play an important role in customer

satisfaction.This research has examined the service provided by employee to its

customer .Apart form that it also focus on the network performance and tariff rates of

those service providers.For this research study, sample is taken from Kathmandu

valley. The sample consists of NTC and NCell mobile service user. The sample

respondents are selected through convenience sampling technique which is one of the

non-probability sampling techniques. The sample size is 200. The analysis of the data

has been done through spreadsheet software. The study has examined the factors

which influence more customers satisfaction. The study shows that NTC users are

satisfied more in terms of employee response whereas NCell customers are satisfied

with network coverage but employee have dissatisfaction on tariff rate of NCell in

comparison to NTC.
 1

CHAPTER I
INTRODUCTION

1.1 Background of the Study

With the unprecedented innovations in the field of telecommunication services

and rapid telecommunications development in the world, it has become necessary to

bring with the same pace development and expansion in this sector in Nepal also.

Keeping in harmony with the currently evolving new technological developments, the

emerging craze for globalization and liberalization of market economy concept, it is

felt that the resources and efforts of Nepal government alone cannot fulfill the steadily

increasing demand of the telecommunication services in a competitive environment.

Even though the private sector entrepreneurs are interested in investing in the novel

sectors, flow of private sector capital in productive areas could not be made effective

due to unfavorable environment and lack of opportunities. Taking this scenario into

account, the National Communication Policy 1992 envisaged the concept of

encouraging the private sector participation for providing telecommunication services

to the public and to assist to the extent possible as is deemed necessary in an easily

available, simple and well planned manner for the development, expansion and

operation of this sector inside the Country of Nepal as well as abroad.

With this concept, using liberalization policy and involving the private sector

in a competitive environment for the development and expansion of

telecommunication sector in Nepal, His Majesty's Government of Nepal's (cabinet’s)

decision dated December 25, 1995 has initiated the involvement of the private sector

in the development of the telecommunication services. Nepal Telecommunications

Authority as an autonomous regulatory body has been established on March 4, 1998

 2

as stipulated within the framework of the Telecommunication Act 1997 and

Telecommunication Regulation 1998 to make this work more systematic and regular.

Gothe (2016)

In the context of the difficult geographical terrain of Nepal,

telecommunications infrastructure is seen as more important than others are. New

opportunities are being seen in the telecom sector due to the rapid development of

technology and continuous changes in the infrastructures. Nepali citizens can also

benefit from the worldwide trend in the reduction of tariff in the telecommunications

sector. In this context, by utilizing the achievements gained in the telecom sector for

maximum benefits and to use the possibilities and opportunities that might come in

future for the greater benefit of the Nepali people, the necessity of an appropriate and

up to date policy has been felt. Hence, His Majesty's Government of Nepal has passed

the Telecom Policy, 2004 replacing the older Telecom Policy, 1999 by the decision of

the cabinet on March 8, 2004.

The monopoly of limited telecom industries, curious and capacity of Nepalese

people towards telecom services and a new innovative topic in the field of marketing

build keen interest upon the topic. The frequent discussion, team of research project

co ordinate bring closer for the development of interest. The development of IT world

and curious world make closer with this topic

Nepal is considered to be economically less privileged and less developed

among the countries in the world with around per capita income of US $240. Recently

Nepal has adopted the path of economic development through liberalization for the

economic growth of nation. The overall development of a nation largely depends on

 3

its economic development. Thus, the primary goal of any nation, including Nepal,

should be rapid economic development to promote welfare of the people and nation as

well. Thus, for the overall development of the country, many private as well as public

enterprises have been established and they all are performing on their own way to

make better Nepal.

Mainly, public enterprises are established in a view to build up the

infrastructures for development. However, in Nepal, many others have also been

established for providing basic needs (goods and services) of people. While the

private sector enterprises are established solely with business, motives and they

provide basic and other types of needs of the society. In the context of Nepal,

government utility service organization like Nepal Telecom and Ncell is playing

major role in the development of country.

However, whichever the type of enterprises; either public or private, various

activities such as finance, marketing, production etc. should be performed for smooth

running. Each activity plays its own vital role for better operation. The achievement

of the business organization largely depends on how much these activities are

integrated and coordinated in the business system and here one can see the importance

of marketing. It is the area of business enterprise, on which all other functional areas

are directly related. It is the means of integrating and coordinating such functions in

the business organization.

As being an important aspect, the business organization should always be

sincere for its management. The success and failure of an organization mainly

depends upon its marketing strategy. Therefore, the marketing personnel should
 4

analyze the strategy in a timely manner. It is concerned with analyzing the different

marketing tools and action plans that are being applied for products and services of

the enterprise. The real picture of marketing performance is disclosed after thoroughly

analyzing these tools and action plans.

The focus of the study is in the determination of the level of customer

satisfaction of mobile phone services of Nepal Telecom and Ncell based on surveys

and interviews with customer.

1.1.1 Nepal Telecom

In Nepal, operating any form of telecommunication service dates back to 94

years in B.S. 1970. However, formally telecom service was provided mainly after the

establishment of MOHAN AKASHWANI in B.S. 2005. Later as per the plan

formulated in First National Five year plan (2012-2017); Telecommunication

Department was established in B.S.2016. To modernize the telecommunications

services and to expand the services, during third five-year plan (2023-2028),

Telecommunication Department was converted into Telecommunications

Development Board in B.S.2026. After the enactment of Communications

Corporation Act 2028, it was formally established as fully owned Government

Corporation called Nepal Telecommunications Corporation in B.S. 2032 for

providing telecommunications services to Nepalese People. After serving the nation

for 29 years with great pride and a sense of accomplishment, Nepal

Telecommunication Corporation was transformed into Nepal Doorsanchar Company

Limited from Baisakh 1, 2061. Nepal Doorsanchar Company Limited is a company

 5

registered under the companies Act 2053. However, the public knows the company by

the brand name Nepal Telecom as registered trademark.

Nepal Doorsanchar Company Ltd. Popularly known as Nepal Telecom is state

owned telecommunication service provider in Nepal with 51.49% of the government

share. The company was a monopoly until 2003, when the first private sector operator

United Telecom Limited (UTL) started providing basic telephony services. The

central office of Nepal Telecom is located at Bhadrakali Plaza, Kathmandu. It has

branches, exchanges and other offices in 184 locations within the country.

It is the sole provider of fixed line, ISDN and leased-line services in Nepal.

Following the entry of Ncell (previously called Mero Mobile) into Nepal's

telecommunications industry in 2005, it is no longer the only provider of GSM mobile

service. With more than 5,400 employees, it is one of the largest corporations of

Nepal. It has a total of 262 telephone exchanges in various parts of the country

serving 603,291 PSTN lines, more than 5 million GSM cellular phones and more than

a million CDMA phone line as of July 2011. According to recent data, there are about

10 million users of Nepal Telecom including all those of fixed landline, GSM mobile,

CDMA and internet service. Nepal Telecom Launched 4G LTE Service on 1 January

2017. It is the first operator to provide 4G LTE service in Nepal on technology neutral

frequency band of 1800 MHz as standard for 4G in Nepal. till the date 4G is only

available in Kathmandu and Pokhara.

Nepal Telecom has always put its endeavors in providing its valued customers

a quality service since its inception. To achieve this goal, technologies best meeting

the interest of its customers has always been selected. The nationwide reach of the
 6

organization, from urban areas to the economically non- viable most remote locations,

is the result of all these efforts that makes this organization different from others.

Definitely, Nepal Telecom's widespread reach will assist in the socio-

economic development of the urban as well as rural areas, as telecommunications is

one of the most important infrastructures required for development. Accordingly in

the era of globalization, it is felt that milestones and achievements of the past are not

adequate enough to catch up with the global trend in the development of

telecommunication sector and the growth of telecommunication services in the

country will be guided by Technology, Declining equipment prices, market growth

due to increase in standard of life and finally by healthy competition.

Converting NT from government owned Monopoly Company to private

owned, business oriented, customer-focused company in a competitive environment,

Nepal Telecom invites its all-probable shareholders in the sacred work of nation

building.

1.1.2 Ncell

Ncell Pvt. Ltd. has been working in Nepal since 2004 as the first private

mobile operator in the country. We are committed to being the best local mobile

network for the people living in the country. We provide services of international

quality with a local touch. Most of our employees are Nepali and our services are

designed to meet the needs of the local society.

It is constantly working towards our goals of connecting everyone in Nepal

through our Ncell network, providing high quality, modern and cost effective services
 7

and creating value for our customers and partners. Ncell is part of the Axiata Group

Berhad, one of Asia’s leading telecommunications group.

Axiata operates in ten countries with 25,000 employees and serves

approximately 290 million subscribers. With a diverse portfolio in mobile, network

operations, communications infrastructure services and digital services, the Group

pieces together the best in connectivity, technology and people in its vision of

Advancing Asia. Together with Axiata, Ncell contributes to the development of the

country’s economy and infrastructure, building best-in-class networks and bringing

people in the remotest areas of Nepal within the reach of communications.

Ncell 4G. Do more, faster. Ncell 4G is now available in 21 cities across Nepal

– Kathmandu, Lalitpur, Bhaktapur (including Nagarkot), Banepa, Dhulikhel, Pokhara,

Damauli, Birtamode, Dharan, Biratnagar, Damak, Birgunj, Hetauda, Bharatapur,

Butwal, Bhairahawa, Nepalgunj, Kohalpur, Birendranagar, Dhangadhi and Lahan.

Coming to your cities soon.

First of all, you need to have a 4G supported SIM card. Type Q and SMS to

324 to know if you have a 4G supported SIM card. If you have a 4G SIM card, you

are one step ahead. If not, please visit your nearest Ncell Centre with the SIM owner’s

citizenship and upgrade the SIM card for Re. 1 and also get 1 GB 4G data valid for 3

days.

Once you have the 4G supported SIM, you now need a 4G supported handset.

Check if your handset is 4G supported or not and the steps to setup 4G from. With the

4G enabled SIM and handset you can now experience Ncell 4G in 21 cities across
 8

Nepal, Kathmandu, Lalitpur, Bhaktapur (including Nagarkot), Banepa, Dhulikhel,

Pokhara, Damauli, Birtamode, Damak, Biratnagar, Dharan, Birgunj, Hetauda,

Bharatapur, Butwal, Bhairahawa, Nepalgunj, Kohalpur, Birendranagar, Dhangadhi

and Lahan. It will be available in other cities soon.

1.2 Focus of the Study

This study is mainly focused on measuring the level of satisfaction of Nepal

Telecom and Ncell users. The main theme is to find out the services that have been

provided by Nepal Telecom and Ncell to its customers and analyze them briefly and

compare whether it is aligned with customer satisfaction or not. The study is

concerned with finding out the degree of awareness that the user of Nepal Telecom

and Ncell holds about the brand name Nepal Telecom and Ncell.

1.3 Statement of the Problem

Nepal Doorsanchar Company Ltd popularly known as Nepal Telecom is state

owned telecommunication service provider in Nepal with 91.49% of the government

share. The company was a monopoly until 2003, when the first private sector operator

UTL started providing basic telephony services. Nepal Telecom Launched 4G

LTE Service on 1 January 2017. Nepal Telecom And Ncell Company is operating, as

governmental organization for providing communication services to all over the

country. Since the 77 percent of total areas are high hills and snowcapped mountains

and only 23 percent is the flat land of terai, such extreme topography and weak

infrastructure have made task of providing basic telecommunication facilities more

difficult.
 9

GSM Mobile Service Nepal Telecom offers various data packages on the

occasion of Maha from Magh 1 2073, NT has revised it dedicated internet and

intranet lease tariff Nepal Telecom is launching its 4G Network from Jan 1st, 2017

NT Subscribers can now, renew telecom services online via various banks. However,

the top most priority of Nepal Telecom and Ncell is to provide basic

telecommunication facilities to the public at reasonable prices, in the present context

it has also to cope with the demand of customer for better and new services. The rural

people in one hand wishes to have services in their villages, and on the other hand the

urban people expect the new service to land at their doorstep. In recent years, the

telephone demand has swollen-up rapidly in the cities as well as the villages directed

towards the urbanization.

Since the world today is using very new and recent technologies in the field of

communication service, Nepal too is not exception to this. Thus in recent years the

people of few cities specially Kathmandu, Biratnagar, Birgunj, Pokhara etc., due to

extensive urbanization as well as the cities being hub of all economic activities are

demanding advanced communication facilities. In the context of fulfilling such

demands, Nepal Telecom and Ncell have launched “Mobile Service” as a government

and private sector service respectively in telecommunication in Nepal.

To know how much quality service is being rendered by Nepal Telecom and

Ncell is very difficult to draw conclusion. This has become a problem and matter of

confusion till now. This study aims to know the reality of this questions and problem.

Addressing the key issues, the present study tries to answer the following questions:
 10

1. Are Nepal Telecom and Ncell’s customers satisfied with the services being

offered by employee to them?

2. Are Nepal Telecom and Ncell’s customers satisfied towards the services of Nepal

Telecom and Ncell on network performance?

3. Do customers are satisfied with Tariff rates offered by Nepal Telecom and Ncell?

1.4 Objectives of the Study

The general objective of this research is to assess the expectations and areas of

satisfaction of Nepal Telecom and Ncell customers. The specific objectives of this

research are as follows:

1. To explore customer satisfaction with regard to services offered by employee of

Nepal Telecom and Ncell.

2. To make an assessment to satisfaction of customers on network performance.

3. To analyse the customer satisfaction on tariff rates offered by Nepal Telecom and

Ncell.

1.5 Significance of the Study

Since the subscribers or users of mobile telephone can take many facilities

than the ordinary telephone subscribers, the importance of mobile phone is

continuously increasing. The number of Nepal Telecom and Ncell users within this

short time frame is increasing in large number. The increasing demand and popularity

of mobile phone is attracting the attention of investors to invest in these areas.

Analysis of marketing position is a crucial part of decision-making process of

a business enterprise. Poor management affects adversely on profitability of

 11

organization. Nepal Telecom and Ncell is an enterprise of great national concern.

Thus, this study is made to evaluate the marketing position of Nepal Telecom and

Ncell. Nepal Telecom and Ncell is service oriented business enterprise. So, it should

provide better services as well as make profit for the sake of expansion of its services,

adoption of new technologies, repair and maintenance to keep its services

update/intact. Due to changing scenario of the economy and the current political

situation, the private sector companies are discouraged to run an organization

smoothly. However Nepal Telecom and Ncell is effectively operating its activities in

distributing the new communication services to fulfill the growing demands of

customers and on the other side, many services have been launched by other parties .

Therefore, it is sure that Nepal Telecom And Ncell will have to face cutthroat

competition with outside competitors in coming future.To get success in such

situation, this study provide valuable guidelines to Nepal Telecom And Ncell in

making their new strategy in providing qualitative services. It has given valuable

insights and references to the scholars and researchers who are interested in

conducting further researches on the field of communication service.

1.6 Limitations of the Study

This research is the requirement for the partial fulfillment of master’s degree

in management. The researcher being a student and having a limited time and

resources, this research work is not free from limitations. A research is a full blaze

and vast investigation study for the settlement of the problems. It needs full time,

adequate amount of money, and authentic information. Therefore, these factors are

assumed the limitation of this study. Some other limitations that are considered while

performing research are as follows:

 12

1. Although customers of Nepal Telecom and Ncell users are spread all over the

country, but the customer’s opinion, market response and customer profiles are

collected/made only from Kathmandu valley.

2. This study is only focused on user of mobile telephone services of Nepal Telecom

and Ncell.

3. This study contains primary, thus the limitations of the secondary data may exist.

1.7 Organization of the Study

This study has been organized under five chapters. The first chapter contains

introduction i.e. background, statement of the problem, objectives of the study,

rational or significance of the study and limitation of the study.

The second chapter is designed to examine the review of literature especially

the historical background of telecommunication services, its development in Nepalese

context, the recently available communication services and few past researchers

conducted by the scholars.

The third chapter describes the research methodological aspects of the study

and it contains research design, sampling plan, and nature of sources of data, data

collection procedure and method of analysis.

The fourth chapter is the main body part of the study in which data

presentation, analysis and their interpretation is included. Major findings of the study

are also presented in this chapter.

 13

In fifth chapter a summary, conclusions and some valuable recommendations

are presented in fifth chapter. References and appendix have also been incorporated at

the end of the study.

 14

CHAPTER II
LITERATURE REVIEW
2.1 Introduction

The main purpose of performing review of literature in this study is to

improve telecommunication products and services in timely basis for customer

satisfaction in telecommunication industry.

2.2 Theoretical Framework

Satisfaction is an important element in the evaluation stage. Satisfaction refers

to the buyer's state of being adequately rewarded in buying situation for the sacrifice

s/he has made. Adequacy of satisfaction is a result of matching actual past purchase

and consumption experience with the expected reward from the brand in terms of its

anticipated potential to satisfy the consumer's motives. (Loudon and Bitta, 1993:579)

After consumers obtain and use a product or service, they will tend to develop

feelings of satisfaction or dissatisfaction toward it. Consumer satisfaction has

traditionally been defined as "the evaluation rendered that the experience was at least

as good as it was supposed to be." This definition was developed around the

predominant model used to explain post purchase satisfaction in the 1970s the

expectation disconfirmation model. However, varieties of additional theoretical

approaches have been used to explain the formation of consumer satisfaction. Because

of accumulating evidence that consumer satisfaction is more than just, the

disconfirmation of an expectation revised definition of the concept is proposed.

Consumer satisfaction consists of general feelings that a consumer has developed

about a product or service after its purchase. As such, satisfaction is a type of

 15

consumer attitude. Feelings of consumer satisfaction may result from expectancy

disconfirmation as well as from other process, such as equity, attribution, performance

evaluation and affect formation (Mowen, 1990).

2.2.1 Concept of Customer Satisfaction

Customers are user of products and services. They purchase goods and

services from the organization or seller. Customers are the king of the market.

Customers are the critical success factors of an organization.“Satisfaction refers to the

buyer’s state of being adequately rewarded by the purchase decision” (Koirala, 2007).

Thus, satisfaction is a type of customer attitude. Customers have certain prior or pre-

purchase expectations from a product or service. They compare the product or

service’s performance to their prior expectations. If they find the performance higher

than their expectations then they are satisfied and if they find the performance lower

than their expectations than they are dissatisfied. Advertising has the major role to

play in forming the expectations. When they use or consume the products, they

compare the actual performance to their expectations. The interaction between the

expectation and the actual performance produce satisfaction or dissatisfaction. The

confirmation process determines the level of satisfaction or dissatisfaction.“Customer

satisfaction is a customer’s feeling of pleasure or disappointment regarding the

performance of the product s/he consumes. If the products fulfill his/her expectations,

s/he is said to be satisfied; but if his/her expectations, are not fulfilled s/he is said to

be dissatisfied or disappointed.” (Shrestha, 2008)

Customer should be satisfied by the firm’s offering: products and services. A

customer is most important person in any business organization. No marketing can be

 16

done without customers. Customers are the person who brings the firm their wants. It

is the firm’s job to fulfill those wants. “Customers are the life blood of every

business” (Shrestha, 2004). Therefore, the firm must try to satisfy them. Customer

satisfaction is the fulfillment of needs and wants of customers. Satisfaction is a person

is felling of pleasure of disappointment, resulting from comparison related to his/her

expectations. Therefore, customer’s satisfaction is a function of the products

perceived performance and the consumer’s expectation. Satisfaction is often a

subjective phenomenon and depends on the consumer’s state of mind both at the time

of purchase and more importantly at the time of consumption. It is important because

some degree of post purchase dissonance is evident among consumers. The satisfied

consumers have a significantly positive impact. They tell many others and will have

some degree of influence over them. Therefore, satisfied consumers are sound

investment and some companies clearly understand their impact. Many companies are

aiming at high satisfaction because consumers who are just satisfied find it easy to

switch when a better offer comes along. Those who highly satisfied are much less

ready to switch. In fact, emphasis has shifted from more satisfaction to delight of

customers. High satisfaction or delights create an emotional affinity with the brand

and the supplier, not just a rational preference. The result is high customer's loyalty. It

is essential for companies to periodically assess customer satisfaction levels and take

remedial action if needed. Continuous improvement in goods and services is the

secret for minting customer’s satisfaction.

When a customer gets what s/he has expected from a product, s/he confirms

that the product’s performance is equal to his/her expectations. This leads to

 17

satisfaction. When a customer does not get what s/he expected from the product it

leads to a situation of disconfirmation that leads to dissatisfaction.

When a customer receives more than his/her expectations, it leads to positive

confirmation. Positive confirmation is a state of emotional satisfaction or delight.

When a customer receives less than his/her expectation, it leads to negative

disconfirmation or dissatisfaction. The output of the customer’s net experience with a

product works as a feed-back in the pre-purchase evaluation process. Several

correlates of satisfaction and dissatisfaction have been noted down in various

researches. Some of the correlates are presented here:

1. Older consumer has lower level of expectations and tends to be more satisfied.

2. Higher education level is associates with lower satisfaction.

3. Men tend to be more satisfied than women.

4. Higher confidence level and competency in purchase leads to higher

satisfaction.

5. When a consumer perceives that other people are satisfied they also tend to be

satisfied.

6. Consumers who are satisfied with their life tend to be satisfied with products.

2.2.2 Methods to Assess Customer Satisfaction

The study found that measures of CS/D were directly influenced by

the affective feelings of the consumers. There is a relationship in which

the purchase leads to affective reactions, which in turn lead to feelings of

CS/D.
 18

Thus, in addition to the cognitive knowledge that expectancies were

disconfirmed, the feelings that surround the post-acquisition process also

appear to affect the satisfaction with a product (Mowen, 1990).

Some of the following methods can be applied to assess customer satisfaction.

Complaint and Suggestion System

To assess the customer’s satisfaction, company can use complaint and

suggestion system. Restaurants and hotels provide forms on which customers can

check off their likes, dislikes and suggestion. Many Companies set up customer

hotlines with toll-free numbers to make it customers to inquire, suggest or complaint.

Some customer-centered companies are P&G, General Electric, Whirlpool, etc. They

establish hot lines with tool free numbers. Companies are also using website and

emails for quick, two-way communication. They help the companies to generate good

ideas for improved products and services.

Customer Satisfaction Surveys

The Companies can take direct measures of customer satisfaction by

conducting regular surveys. They can send questionnaires or make telephone calls to

customers to find out how they feel about company’s products, services and

performance. Studies show that although customers are dissatisfied with one out of

every four purchases, less than 5 percent will complain. Most customers will buy less

or switch suppliers. Responsive companies measure customer satisfaction directly by

conducting period surveys. While collecting customer satisfaction data, it is also

useful to ask additional questions to measure repurchase intention and to measure the

likelihood or willingness to recommend the company and brand to others.

 19

Ghost Shopping

It is also a way of assessing customer satisfaction. Under this, company can

hire some people to pose as potential buyers to report on strong and weak points

experience in buying the companies’ and competitor’s products. This mystery shopper

can even test how the company’s sales personal handle various situations. Mangers

themselves should leave their offices from time to time, enter company and

competitor sales situations where they are unknown, and experience firsthand the

treatment they receive. A variant of this is for managers to phone their own company

with questions and complaints to see how the calls are handled.

Lost Customer Analysis

Another useful way of assessing customer satisfaction is to contact customers,

who have stopped buying, or those who have deflected to a competitor, and learn why

this happened. Company can recapture a substantial proportion of lost customers

simply by contacting them, listening to their concerns, and making a sincere effort to

correct the problem.

2.2.3 Symptoms of a Satisfied Customer

A satisfied customer may have the following symptoms:

1. Becomes loyal towards company and its products for a longer period.

2. Buys more when the company introduces new products.

3. Talks favorably about the company and its product.

4. Pays less attention to competitors’ advertisements and brands.

5. Becomes less sensitive to competitors’ price and other offers.

6. Provides ideas to the marketer to improve the product and its offers.
 20

7. Becomes less costly than the servicing of a new customer.

2.2.4 Total Customer Satisfaction

Whether the buyer is satisfied after performance falls purchase depends on the

offer’s performance in relation to the buyer’s expectations. In general, satisfaction is a

person’s feelings of pleasure or disappointment resulting from comparing a product’s

perceived performance (or outcome) in relation to his or her expectations.

If the performance falls short of expectations’ the customer is dissatisfied. If

the performance matches the expectations, the customer is satisfied. If the

performance exceeds expectations’ the customer is highly satisfied or delighted.

Although the customer-centered firm seeks to create high customer satisfaction, that is

not its ultimate goal. If the company increases customer satisfaction by lower profits,

the company might be able to increase its profitability by means other than increased

satisfaction (for example, by improving manufacturing processes or investing more in

R&D). Also, the company has many stakeholders, including employers, dealers,

suppliers, and stockholders. Spending more to increase customer satisfaction might

divert funds from increasing the satisfaction of other “partners”. Ultimately, the

company must operate on the philosophy that is trying to deliver a high level of

customer satisfaction subject to delivering acceptable levels of satisfaction to the

other stakeholders, given its total resources.

2.2.5 Measuring Satisfaction

Many companies are systematically measuring customer satisfaction and the

factors shaping it. For example, IBM tracks how satisfied customers are with each
 21

IBM salesperson they encounter, and makes this an each salesperson’s compensation.

A company would be wise to measure customer satisfaction regularly because one

key to customer retention is customer satisfaction. A highly satisfied customer

generally stays loyal longer, buys more as the company introduces new products and

upgrades existing products and is less sensitive to price, offers product or services

ideas to the company, and costs less to serve than new customers because transactions

are routine. The link between customer satisfaction and customer loyalty, however, is

not proportional. Suppose customer satisfaction is rated on a scale from one to five.

At a very low level of customer satisfaction (level one), customers are likely to

abandon the company and even bad-mouth it. At levels two to four, customers are

fairly satisfied but still find it easy to switch when a better offer comes along. At level

five, the customer is very likely to repurchase and even spread good word of mouth

about the company. High satisfaction or delights creates emotional bond with the

brand or company not just a rational preference. Xerox’s senior management found

out that it’s completely satisfied customers were six times more likely to purchase

Xerox products over the following 18 months than its “very satisfied” customers.

When customer rates their satisfaction with an element of the company’s

performance say delivery-the company needs to recognize that customers vary in how

they define good delivery. It could mean early delivery, on-time delivery, order

completeness, and so on. The company must also realize that customers can report

being “highly satisfied” for different reasons. One may be easily satisfied most of the

time and the other might be hard to please but was please on his occasion.
 22

A number of methods exist to major customer satisfaction. Periodic surveys

can track customer satisfaction directly. Respondents can also be asked addition

questions to measure repurchase intention and the likelihood or willingness to

recommend the company and brand to others. Paramount attributes the success of its

five theme parks to the thousands of web-based guest surveys it sends to customer

who have agreed to be contacted. During the past year, the company conducts more

than 55 web-based surveys and netted 100000 individual responses that described

guest satisfaction on topics including rides, dining, shopping, games, and shows.

Companies can monitor the customer loss rate and contact customers who

have stopped buying or who have switched to another supplier to learn why this

happened. Finally, companies can hire mystery shoppers to pose as potential buyers

and report an strong and weak points experience in buying the company’s and

competitor’s products. Managers themselves can enter company and competitor sales

situations where they are unknown and experience firsthand the treatment they

receive, or phone with their own company with questions and complain to see how

the calls are handled. For customer satisfaction survey, it’s important that the

companies ask the right questions.

Frederick Reichheld suggests that perhaps only one question really matters.

“Would you recommend this product or service to a friend?”He maintains those

marketing departments typically focus surveys on the areas they can control, such as

brand image, pricing, and product features. According to Reichheld, a customer’s

willingness to recommend to a friend results from how well the customer is treated by
 23

front-line employees, which in turn is determined by all the functional areas that

contribute to a customer’s experience.

In addition to tracking customer value expectations and satisfaction,

companies need to monitor their competitor’s performance in these areas. One

company was pleased to find that 80 percent of its customers said they were satisfied.

Then the CEO found out that is leading competitor had a 90 percent customer

satisfaction score. He was further dismayed when he learned that this competitor was

aiming for a 95 percent satisfaction score.

For customer-centered companies, customer satisfaction is both a goal and a

marketing tool. Companies need to be especially concerned today with their customer

satisfaction level because the intern provides a tool for consumers to spread bad word

of mouth as well as good word of mouth to the rest of the world. On websites like

troublebenz.com and lemonmb.com, angry Mercedes-Benz owners have been aiming

their complaints on every-thing from faulty key fobs and leaky sunroofs to balky

electronics that leave drivers and their passengers stranded.

Companies that do achieve high customer satisfaction ratings make sure their

target market knows it when JD power began to rate national home mortgage leaders.

Countrywide was quick to advertise its number-one ranking in customer satisfaction.

Dell computer’s meteoric growth in the computer system industry can be partly

attributed to achieving and advertising its number-one rank in customer satisfaction.

 24

2.3 Review of Related Studies

Customer satisfaction is relatively a new area of study so there are not

sufficient books, journals and articles, however, available resources are quite useful

while conducting a research. Researcher has tried to consult as many resources as

possible among which some mentionable are described below:

Alison, (2012) study on the contribution of emotional satisfaction to consumer

loyalty. Many customer satisfaction studies have concluded that there is a

significant relationship between customer satisfaction and loyalty, but this finding

has been questioned in that most of the studies focus on measuring the cognitive

component of customer satisfaction. This study includes the cognitive component,

but focuses on the affective component. It explores the role of emotions in

satisfaction, and then compares the predictive ability of the cognitive and

affective elements. Key findings are that both positive and negative emotions and

the cognitive component of satisfaction correlate with loyalty. Regression

analysis indicates that the affective component serves as a better predictor of

customer loyalty than the cognitive component. Further, the best predictor of both

overall loyalty and the most reliable dimension of loyalty, positive word of

mouth, is positive emotions. The theoretical and practical implications of these

findings are discussed.

Fornellet, et. al. (2013) study on “The American Customer Satisfaction Index:

Nature, Purpose, and Findings.” And according to them ‘satisfied customers may be

the most consequential of all economic assets; indeed, they may be proxies for all

other economic assets combined.’ Firms that are unable to satisfy customers can
 25

expect to lose market share to rivals offering better products and services at lower

prices. As a result, it is important for firms to understand what they can do to improve

their provision of customer satisfaction. Examples of firms that led their respective

industries with high ACSI scores in 2003 are Dell (78), Cadillac (87), Google (82),

Heinz (88), Kenmore (84), Southwest Airlines (975) and Yahoo! (78).

Athanussopoulos et. al., (2014) have studied on “Behavioral response to customer

satisfaction. Employee Competence affects consumer behavioral responses.”The

more “exotic” side of customer satisfaction, statistically valid in the measurement

model of customer satisfaction proved to have significant effects on consumer’s

behavioral, responses. In highly interactive service environment such as that of retail

banking, consumers determine very often their position concerning the bank from

their attitudes towards staff competence.

Simon et. al. (2015) study on “Employee Attitudes, Customer Satisfaction, and Sales

Performance: Assessing the Linkages in US Grocery Storied.” They found that

satisfied customer is critical to a firm’s success. They examine the linkages between

employee attitudes, customer satisfaction, and sales performance. They conclude that

employee attitude affects customer satisfaction. In particular, as employee attitudes

improve customer satisfaction with services levels increases. Moreover, this

improvement in customer satisfaction with service drives higher sales. They had

suggested that HRM program should be viewed as investment in delivering better

customer service rather than simply as costs to minimize.

Shrestha and Maharjan (2016) in their article Customer’s satisfaction with service

division system in Nepal Telecom” said that customer satisfaction is the function of
 26

process and quality of service, speed of services, price of services, and staff attitudes.

They summarized the whole definition into one function i.e.

Customer’s satisfaction =  (process, timeliness, price, staff behaviors)

The main theme of this article was to explore the public about the level of

satisfaction that the majority of individuals who are using the service are receiving.

They also said about the effects of CRM and its implementation to increase the

customer value.

Michel, (2017) studied on Service Quality Perceptions and Customer Satisfaction.

The authors examine the influence of culture on the measurement of service quality

and satisfaction in dentists’ office settings. Respondents from the United States,

Canada, and Japan participated in a 2×2 factorial experiment in which the authors

manipulated both expectations (high/low) and service performance (high/low) in a

series of scenarios. With partial metric invariance, latent mean comparisons revealed

that regardless of expectations, Japanese respondents reported lower quality

perceptions, satisfaction ratings when performance was high, and higher satisfaction

ratings when performance was low than did their U.S. and Canadian counterparts.

Thus, there is some evidence that Japanese consumers are more conservative in their

evaluations of superior service but are less critical (or more forgiving) of inferior

service. The authors also discuss managerial implications and future research

directions.

Marnik, (2017) studied on The Effect of Customer Satisfaction on Consumer

Spending Growth. Predicting aggregate consumer spending is vitally important to

 27

marketing planning, yet traditional economic theory holds that predicting changes in

aggregate consumer spending is not possible. Previous attempts to predict consumer

spending growth using standard macroeconomic predictor variables have met with

little success. The authors show that the lagged change in customer satisfaction, which

contributes to future demand, has a significant impact on spending growth. However,

this impact is moderated by increases in consumers' debt service ratio, a key budget

constraint that affects consumers' ability to spend. Using an asymmetric growth

model, more than 23% of the variation in the one-quarter-ahead spending growth is

explained, which represents a notable improvement over prior specifications.

Ezzat, (2018) studied on An international index for customer satisfaction in the

construction industry. In a competitive business environment, like construction,

achieving customer satisfaction has been identified as a key measure for the success

of construction projects and an effective tool for sustaining competitive advantage.

This perspective emerges from the crucial role played by customers as the core of the

construction industry and a driving force for improvement. Traditionally, customers

are excluded from the design and construction process and decisions are made on

their behalf. Organizations, which fail to take account of their customers' needs and

satisfaction, encounter the risk of losing their customers. In spite of the contribution

of the national customer satisfaction, barometers and indices that have been developed

worldwide, these have their own limitations and shortcomings that hinder their

adoption and application globally. Hence, this paper aims to develop an international

index of customer satisfaction in the construction industry. To achieve this aim, a

research methodology consisting of a literature review, case studies and a survey

questionnaire was designed to accomplish four objectives. Firstly, the literature

 28

review is used to investigate the concept of customer satisfaction and identify the

drivers that lead to customer satisfaction in the construction industry. Secondly, 30

case studies are collected and analyzed to validate the drivers identified in literature

review and add new insights. Thirdly, the identified drivers are classified into two

categories based on the different phases of the project life cycle and the construction

industry's contribution as product-related and/or service-related drivers. Finally, an

international survey questionnaire is conducted with a sample of members of the Co-

operative Network for Building Researchers (CNBR) to quantify the identified drivers

and define the most important ones.

Dahal (2009) conducted a research study on “Pattern of consumer decision making

process while purchasing high involvement goods in Nepal”.

The main objectives of the study were to find consumers decision making strategies

while making sales of durable goods. and evaluating alternatives with them.

The major findings from the study shows that • Size of choice set. Decision

making criteria and rules are employed in evaluation of alternatives. Similarly

Patterns of decision making strategies consumers utilize while making sales of

durable goods. Moreover the level of resale’s consumer seeking information and their

correlates.

Sapkota (2013) had carried out a research on, "Customer Satisfaction in Service

Sector". The major objectives of this study were to investigate the level of satisfaction

as customer with Nepalese joint venture commercial banks. Similarly, to identify the
 29

reasons/factors responsible for customer satisfaction or dissatisfaction was also

another important aspect of objectives. In order to understand the growth of

communication services, present status of telecommunication services and other

information about the telecommunication facilities, the researcher found a very few

researches that have been completed on “Telecommunication Services on Nepal.

The main objectives of the study were to study the background of the CRM in Nabil

Bank Limited. Moreover it also analyzes effectiveness and problems of CRM.

The major findings relating to satisfaction of customer reveals that most of the

customers are satisfied with the service system of the bank. Whereas some have a bit

negative feeling of bank activities blaming that these are not directed towards poor

and needy people. However They are almost satisfied with employee behavior but in

some banks, employee behavior is a bit poor.

Bajracharya (2014) researched entitled “Customer Relationship Management in

Nabil Bank Limited, Issue and Problem” and concluded that CRM is the most

prioritized tools and techniques to be followed in any organization.

The main objectives of the study were to study the background of the CRM in Nabil

Bank Limited.It also analyzed the effectiveness and problems of CRM.Based on study

researcher has also provided suggestions and recommendations for management for

making effective CRM policies and practices.Moreover it examine the contribution of

CRM in the economic development of the bank.

 30

The major findings shows the scenario of customer relationship management trend is

normally satisfactory. CRM is considered as one of the most vital management tool to

be implemented in an organization. CRM leads to increased efficiency.

During the decade about ten years the Ncell phone users have increase along with the

total expressed demand. However, the exchange capacity has increased relatively at a

lower rate than the total expressed demand.

Pradhan (2015) had conducted a study entitled “Customer Satisfaction: A General

Guide to Nepalese Business” and has highlighted the following objectives and

findings of the study:

The major objectives of the study were to identify the major in-depth know how of

customer satisfaction and other related tools which works in conjunction with

business mechanism. It also assess and explore the pros and cons of customer

satisfaction and its implementation. The current perspective of customer satisfaction

and its impact on Nepalese business is also identified.

In this research the descriptive statistics are used such as mean, frequencies,

percentage, etc. Also inferential tests are used like null hypothesis for tenability or

non-tenability. It also incorporates the use of chi-square test.

The major findings of the study potrays the level of customer satisfaction in Nepal is

not up to mark while comparing with international standards.There is a need of CRM

 31

in every business organization in Nepal. Customer satisfaction must not only be taken

as a tool to success but it should also be considered as a business strategy to cope with

the changing environment.

Thus, the possibility of differential tariff rates for peak and off-peak hours need to be

examined. As per the study more and more Ncell phone users are from the remote

areas, and hence the demand for Ncell phone is the highest from this sector.

Gothe (2016) had conducted a research entitled “Customer Satisfaction on Services

of Nepal Telecom (Nepal Telecom And Ncell)” and has highlighted the following

objective and findings of the study.

The major objectives of the study were to analyze the services being provided by the

Nepal Telecom and Ncell. Moreover customer satisfaction from the services provided

by the Nepal Telecom and Ncell is also studied. It evaluates the customer satisfaction

from the behavior of the employees of Nepal Telecom and Ncell.

The major findings display that most of the respondents may switch to a competitor

due to higher tariff rate.Employees of the Nepal Telecom And Ncell seems to be

helpful.In addition to this most of the respondents are satisfied with the statement of

the call clarity on the Nepal Telecom and Ncell network.

Total customer of Nepal Telecom And Ncell is rapidly increasing over the study

period.The existence of higher demand and a relatively lower supply of service

facility have resulted in the extensive bad condition in the market of telephone users.
 32

Both from the point of view of Ncell and social welfare maximization this trend is

harmful. In case of Ncell phone, there is inverse relationship between the increase in

telephone tariff and deterioration in the grade of service.

The grade of service reaches its lowest point when the phone tariff reaches its highest

point, i.e. during the day. This shows that the system is nearing its potential capacity

during certain hours of the day.

In Nepal, telecommunication facilities were started in 1913 as a luxury of Rana rulers.

But concerned efforts to develop telecommunications were undertaken only in the

1970’s. At present the arrival of Ncell provides expanded telecommunications

facilities for both domestic and international usage.

Manandhar (2017) had conducted a study in entitles "Customer’s Attitude Towards

Nepal Bangladesh Bank". The researcher has focused the research to examine the

customer's attitude towards the banking environment. Customers have used the bank

to deposit as well as to borrow the money to invest in the business.

The major objectives of the study were to examine the trend of deposits, loans and

advances of bank. The major performance indicator of bank. It also analyzes the

expectations of existing general customers from bank

The major findings shows the image of NB bank among the public is not so good. The

liquidity position of bank is more. Therefore, NB bank should search for the new area

of investment to reduce in surplus cash balance.

Based on analysis of total deposits and its component, she has concluded that saving
 33

and current deposit was satisfied than the fixed deposit account holder. She has

concluded that the marketing strategies should be innovative that would attract and

retain the customer. NB should formulate a competitive strategy. It is needed that to

know by NB what position they have in competitive environment. The bank should

motivate to the staff. There should be effective communication among the staff.

Bank's every staffs should know new technology and new schemes.The bank should

be mainly focused the customer's attitude and wants to facilitating services.Bank

concentrates about the customer's facility and to develop the other technical

equipment for providing services fruitfully.Bank can improve the level of

communication for understanding the staffs and customer participation of banking

activities.

Gautam (2018) in this research entitled Customer Satisfaction in Nepalese

commercial Banks.

The major objectives of the study were to assess the commercial bank’s performance

in terms of customer satisfaction .It also investigate the level of satisfaction moreover

it analyze the reasons behind customer’s satisfaction of dissatisfaction

The major findings found out that customers were more satisfied with the second-

generation joint-venture banks. The more specific, customers were found satisfied

with those banks were customers had to spend less time on waiting and the

employees’ behavior was good.

Thus it is concluded that second-generation banks are more successful in their

customer satisfaction performance than the first generation and non-joint venture

banks. But however, they have less ability to serve Nepalese people and were also
 34

found less reliable for future. First generation bank like Nepal Bank Limited and

Rastriya Banijya bank were found strong on reliability ground and they are also

serving the poor Nepalese people.

Dahal (2018), in his study of “Performance Evaluation of Chaudhary Group for

customer satisfaction in instant noodle” has made remarkable efforts for evaluating

Chaudhary Group on the customer satisfaction in instant noodles.

The major objectives of the study were to find out the produce according to test and want

of customer. It find out the earn profit in competitive market.

The major findings shows customer satisfaction specially noodles products produced by

Chaudhary Group. Researcher focused on his report writing that customer is the king of

market, product should be produced according to test and want of customer, and then only

company can earn profit in competitive market. Goods should be produced as per above

provision and after sale service should be provided and lastly the customers feedback about

the sold products should be responded. The company should focus on customer test and

satisfaction rather than prizes and schemes, expand its new market area and expand its

product line with the test and want of customer.

2.4 Research Gap

In such a circumstance, an attempt has been made in this research to study the

areas of customer satisfaction on mobile telephone service by connecting it with

customer response. The underlying objectives of the study are to assess the

expectations and area of satisfaction of mobile phone users, to assessment the

customer satisfaction with regard to tariff rate, network performance and services.
 35

There is gap between the present research and previous researches in terms of some

objectives, tools used for analysis, period of data collection and so on. This topic is

also considered as the difference between the previous researches and the current

research. The main objective here is to draw a genuine conclusion about the level of

customer satisfaction regarding the service of Nepal Telecom and Ncell, considering

the previous studies. In this context, the previous studies can't be ignored because they

provide the foundation to present study. Thus, to complete this research work, many

books, journals, articles and various published and unpublished dissertations are

followed as guideline to make the research effective and smooth through these

reference materials. Understanding the market response as well as consumer behavior

it has become much more complex because it requires continuous investigation.

Neither any scholars nor Nepal Telecom and Ncell itself has conducted such research

by giving focus on customer reaction on mobile telephone service.

 36

CHAPTER III

METHODOLOGY

3.1 Introduction

“Research Methodology is a way to systematically solve the research problem.

It facilitates the research work and provides reliability and validity to it” (Baniya,

1994).

The main objective of this research is to find out the level of customer

satisfaction towards the mobile telephone services of Nepal Telecom and Ncell. This

chapter looks into the various aspects of research methodology such as research

design, nature and sources of data, data collection procedure, etc. By analyzing

various aspects, the clear idea of services, network performance and different tariff

rate offered by Nepal Telecom and Ncell can be derived.

3.2 Research Design

Research design is the plan, structure and strategy of investigation conceived

so as to obtain answers to research questions and to control variance. The plan is the

overall scheme or program of research. It includes an outline of what the investigator

has been done from writing the hypothesis and the operational implications to the

final analysis of data. For exploring sources of information about different aspects of

consumer satisfaction on mobile telephone, primary information has been generated

through sending questionnaire to mobile phone users. The study is therefore analytical

as well as descriptive in nature. To generate primary data, a survey research design

has been applied in the study. The analysis of this research is based on certain

research design keeping in mind the objective of the study. Generally, research design
 37

means definite procedure and technique, which guideline studying profound ways for

researcher’s ability.

The main objective of this study is to find out the level of customer

satisfaction towards the mobile telephone services of Nepal Telecom and Ncell. For

this purpose, the research design of the study has been used for analytical as well as

descriptive methods of collected data. This study has been given some valuable

suggestions to strengthen the marketing policy of Nepal Telecom and Ncell as far as

possible.

3.3 Sources of Information/Data

The study has been based on primary sources of information/data. Researcher

has collected primary sources of data through the people who are using mobile

telephone service provided by Nepal telecom and Ncell.

3.4 Sampling Design

The collection or the aggregate of objects or the set of results of an operation

is called universe or population and a representative part of universe, which is

selected for the purpose of investigation, is called sample. The points below describe

how the sampling design has been done with respect to unit, technique and size of the

sample.

3.4.1 Population/Sampling

The total number of people using mobile telephone service of Nepal Telecom

and Ncell represents the population of the study. Sample of the study comprises the

individual users who use Nepal Telecom and Ncell services. Since the population of
 38

customers, using mobile phone services is more than 500 million. Therefore, it is not

possible to study individually. So, a sample of 200 mobile phone users has been

selected to attain the desired objectives and goals of the research.

3.4.2 Sampling Technique

Based on convenient sampling from the different cross section of the society

for the study with referring the convenient sampling techniques considering the

gender, age group and address the major factor with selection of at least 30 samples

from each group has been selected. The sample data has been collected within the

Kathmandu valley to study the whole customer satisfaction level of Nepal Telecom

and Ncell service users. Even though the sample size is very small in comparison to

the population, sufficient efforts have been made to make the sample truly

representative of the population and thus present the specific characteristics of the

population. Therefore, the data collected is comprised of different address and equally

of both genders.

3.4.3 Sample Size

The sample size of 200 samples is considered for research process. Major

factor like gender, age group and address are considered to do comparison between

other variable to bring good result. Selection of at least 60 or more sample from each

group is considered.

3.5 Data Collection Procedure

For collecting primary data, the above mention population has been question

aired by sending the prepared questionnaire to customers. In addition, few copies of

 39

questionnaire have been distributed to them. Sample of questionnaire has been

presented in appendix.

3.6 Methods of data Processing

The collected data has been thoroughly checked, compiled and presented in

appropriate table to facilitate analysis and interpretation. Analysis has been done

descriptively as well as statistically.

3.7 Tools for Analyzing

In this study, percentage, Multiple bar diagram, is used to analyze the

collected data. Likert Scale is used to collect the primary data from respondents.

 Percentage:

A percentage is defined as a number represented as a fraction of 100.

Percentages are used to express numbers between zero and one. It is used to compare

things and used in ratios. It is denoted by the symbol %.

Percentage = (Value / Total Value) x 100

 Bar Graph / Diagram:

A bar graph is a chart that uses either horizontal or vertical bars to show

comparisons among categories. One axis of the chart shows the specific categories

being compared, and the other axis represents a discrete value. Some bar graphs

present bars clustered in groups of more than one (grouped bar graphs), and others

show the bars divided into subparts to show cumulate effect (stacked bar graphs).
 40

CHAPTER IV
RESULTS

4.1 Introduction

This chapter deals with presentation and analysis of data, collected from
primary data collection by the researcher as well as from the respondents and
interpreted according to the objectives of the study related to customer satisfaction of
Nepal Telecom and Ncell services.

As mentioned in the research methodology 200 samples have been collected

more than 60 each from different cross section of the society. The samples are derived
from gender group, age group and permanent address. A list of 20 questions has been
distributed as presented in the appendix. The data collection has been conducted as
per the questionnaire survey by meeting the respondents after having them exposed to
the objective of the survey and necessary concepts provided to them.

4.2 Analysis of Primary Data

Primary data is original research that is obtained through first-hand

investigation, while secondary details research that is widely available and obtained
from another party. Primary data includes information collected from questionnaires
sent to Nepal Telecom and Ncell users.

4.2.1 Respondents’ Profile

A total of 200 questionnaires were administered and collected in three

different areas of age group, gender and address from different categories of people.
The data collected was analyzed with the spread sheet software. The individual
demographic variable of age group, gender and address are shown with their
individual division of frequency and percent those who are the customer of Nepal
Telecom and Ncell mobile users.
 41

The age groups profile of respondents is given the following table.

Table 4.1 Respondents’ Profile

Respondents No. of Respondents No.

Variables Description
NTC Users of Ncell Users
Below 15 6 20
15-30 65 50
Age
30-50 24 20
50 Above 5 10
Male 62 65
Gender
Female 38 35
Kathmandu Valley 65 70
Address
Outside Valley 35 30
Source: Field Survey 2019

Table 4.1 presents the descriptive statistics (frequency statistics) of the

independent variables (demographics) and their individual percentage also. The
survey was conducted to 200 individuals out of which 62 were male who use Nepal
telecom service and 65 use services provided by NCell. Similarly 38 respondents
were female who use Nepal telecom service and 35 use services provided by
Ncell.Further, the individuals were divided into different age groups so that a clear
picture can be drawn to know the interest and behavior of different age group
individuals. Similarly, they were also sub categorized under the address to know the
reaction of individuals living in Kathmandu valley .

4.2.2 Customer Satisfaction with Regard to Services

The second objective of the study is concerned with the services that are
provided by Nepal Telecom and Ncell phones to the customer for their satisfaction
level. Due to the emerging challenge position of Nepal Telecom and Ncell it has to
develop new product and services.
 42

For this immediate response, call-handling ability, timely and consistently

handling, calling line identification, ability to problem solution, overall customer care,
network availability, billing and validity period and other services have been
considered as tools to assess.

Responses provided by Nepal Telecom and Ncell regarding on customer

queries deals with the behavior and the attitude of the staff of Nepal Telecom and
Ncell towards the customers. How does the Nepal Telecom and Ncell staff behave
with the customer while queries are presented to them?

Table 4.2 Customers Response about Immediate Response

Respondents Review Respondents Review about
Response
about Nepal telecom Ncell
Very Good 25 22
Good 35 30
Average 25 29
Bad 10 13
Very Bad 5 6
Source: Field Survey 2019

Customers Response about Immediate Response about NTC and Ncell is shown in
figure 4.1 with the help of multiple bar diagram.

Figure 4.1 Responses Provided Regarding Customer Queries

40%
Respondent in %

30%
20%
NTC
10%
Ncell
0%
Very Good Average Bad Very Bad
Good
Response

Source: Table 4.2

 43

According to the above table 4.2 and bar diagram the customer service
facilities provided by Nepal Telecom with immediate response is that 60% of the
customer decide its good 25% of customer said its average and very few people said
it’s very bad. Whereas , Ncell users response is that 52% of the customer decide its
good 29% of customer said its average and very few people said it’s very bad.

Therefore, we can conclude that most of the customers are satisfied with the
services provided by Nepal Telecom compared to Ncell. Time is one of the important
factors for every person.

Timely responses mean the facility provided by Nepal Telecom and Ncell
towards its customer. Timely responses to customers by Nepal Telecom and Ncell is
categories into five option from very good to very bad as shown in the below figure.

Timely Responses to Customers by Nepal Telecom and Ncell can be shown in

following table.
Table 4.3 Timely Responses to Customers
Response Respondents Review about NTC Respondents Review about Ncell
Very Good 12 15
Good 35 32
Average 43 37
Bad 5 8
Very Bad 5 8
Source: Field Survey 2019
Figure 4.2 Timely Responses to Customers
60%
Respondent %

40%
20%
NTC
0%
Very Good Average Bad Very Bad Ncell
Good
Response

Source: Table 4.3

 44

78 NTC users and 69 Ncell users response falls under average category of
timely handling the calls of the customer to provide customer service facility and least
respondent’s falls under bad and very bad category. So the above Bar Diagram shows
that in case of timing both Nepal Telecom come and Ncell falls under average
category to handle the customer service facility.

The calling line or the tower level shown in Nepal Telecom come and Ncell
mobile is identified by providing multiple options to the customer. It talks about
whether the customers are satisfied with the calling line identification of Nepal
Telecom come and Ncell services.

The Calling Line Identification of Nepal Telecom come and Ncell Services can be
shown in following table.

Table 4.4 The Calling Line Identification

Response Respondents Review about NTC Respondents Review about Ncell
Very Good 5 16
Good 45 38
Average 35 29
Bad 10 9
Very Bad 5 8
Source: Field Survey 2019

Figure 4.3 Calling Line Identification

50%
Respondent %

40%
30%
20% NTC
10% Ncell
0%
Very Good Good Average Bad Very Bad
Response

Source: Table 4.4

 45

The above table 4.4 shows that the calling line identification of Nepal
Telecom comes And Ncell service is fair. The tower level of Ncell is good enough to
make calls compared to Nepal Telecom. Majority of people voted that its good and
very few said it’s bad. Therefore, in conclusion it can be said that calling line
identification of and Ncell is good compared to Nepal Telecom.

Customer satisfaction regarding network availability talks about the possible

network condition in different parts of the country so that the customer can be
satisfied to use the mobile properly. The following table makes it clear and shows the
level of customer satisfaction regarding the availability of network in different parts
of the nation.

Customer Satisfaction Regarding Network Availability profile of respondents is given

in following table.

Table 4.5 Customer Satisfaction Regarding Network Availability

Perception Frequency of NTC Frequency of Ncell
Very Good 38 42
Good 31 35
Average 22 17
Bad 6 5
Very Bad 3 1
Total 100 100
Source: Field Survey 2019
Figure 4.4 Customer Satisfaction Regarding Network Availability
60
Respomndents

40
No of

20
NTC
0
Very Good Average Bad Very Bad Ncell
Good
Response

Source: Table 4.5

 46

Among various aspects of Nepal Telecom mobile phones regarding

satisfaction of services, 38 of the respondents have exposed very good, 31 good, 22
average, 6 bad and 3 very bad. Likewise Ncell mobile phones regarding satisfaction
of services, 42 of the respondents have exposed very good, 35 good, 17 average, 5
bad and 1 very bad. Therefore, it can be concluded that most of the Ncell customers
are satisfied with the network availability provided by Ncell which is a bit less on
regard of Nepal Telecom users.

Customer’s attitude towards billing system talks about the charges deducted
by Nepal Telecom and Ncell with regard to the services provided by Nepal Telecom
and Ncell. Here the measurement of behavior or the expression shown by the
customer with the services regarding billing system of Nepal Telecom and Ncell is
done.

Customer Attitude towards Billing System of Nepal Telecom come and Ncell
can be shown in following table.

Table 4.6 Customer Attitude towards Billing System

Perception Frequency of NTC Frequency of Ncell

Very Good 6 5
Good 21 4
Average 47 15
Bad 17 60
Very Bad 9 16
Total 100 100
Source: Field Survey 2019
Figure 4.5 Customer Attitudes towards Billing System
80
No of Respondents

60
40
NTC
20
Ncell
0
Very Good Good Average Bad Very Bad
Response

Source: Table 4.6

 47

Among various aspects of Nepal Telecom mobile phones regarding

satisfaction of services, 6% of the respondents have exposed very good, 21% good,
47% average, 17% bad and 9% very bad. Whereas Ncell mobile phones regarding
satisfaction of services, 5% of the respondents have exposed very good, 4% good,
15% average, 60% bad and 16% very bad. Therefore, it can be concluded that Nepal
Telecom customers are in satisfied with the billing services compared to Ncell.

Customer Attitude towards Nepal Telecom and Ncell Services Regarding Validity
Period can be shown in following table.

Table 4.7 Customer Attitude towards Validity Period

Perception Respondent No. of NTC Respondent No. of Ncell
Very Good 16 10
Good 19 9
Average 26 25
Bad 34 39
Very Bad 4 17
Total 100 100
Source: Field Survey 2019

Figure 4.6 Customer Attitudes towards Validity Period

45
40
35
No of Respondents

30
25
20 NTC
15 Ncell
10
5
0
Very Good Good Average Bad Very Bad
Response

Source: Table 4.7

Above table 4.7 shows various aspects of Nepal Telecom and Ncell mobile
phones regarding Validity Period of billing. Nepal Telecom users respond that 16%
 48

of the respondents have exposed very good, 19% good, 26% average, 34% bad and
4% very bad.Whereas Ncell users respond that 10% of the respondents have exposed
very good, 9% good, 25% average, 39% bad and 17% very bad.

Therefore, it can be concluded that most of the customers are dissatisfied with
the validity period service provided by Ncell compared to Nepal Telecom.

4.2.3 Satisfaction of Customer on Network Performance

The objective three describes about the satisfaction level of the customers on
network performance of the Nepal Telecom and Ncell phones. For this regard, certain
components like clarity in sound, tower level, voice quality improvement and location
have been considered as tools to assess network performance of the Nepal Telecom
come and Ncell phones.Customer Satisfaction on Network Performance of Nepal
Telecom and Ncell can be shown in following table.

Table 4.8 Customer Satisfaction on Network Performance

Perception Respondents no of NTC Respondents no of Ncell

Very Good 16 25
Good 37 29
Average 30 26
Bad 9 15
Very Bad 8 5
Total 100 100
Source: Field Survey 2019

Figure 4.7 Customer Satisfactions on Network Performance

40
Respondents

20
No of

NTC
0 Ncell
Very Good Good Average Bad Very Bad
Response

Source: Table 4.8

 49

Above table 4.8 shows various aspects of Nepal Telecom and Ncell mobile
phones regarding satisfaction of network performance, Nepal Telecom user respond
that 16% of the respondents have exposed very good, 38% good, 37% average, 30%
bad and 9% very bad 8%. Moreover Ncell user respond that 25% of the respondents
have exposed very good, 29% good, 26% average, 15% bad and 5% very bad.
Therefore, it can be concluded that most of the customers are satisfied with the
Network performance in the clarity in sound.

Customer Satisfaction Regarding Network Availability can be shown in following

table.
Table: 4.9 Customer Satisfactions Regarding Network Availability

Perception No of Respondent of NTC No of Respondents of Ncell

Very Good 13 15
Good 35 32
Average 30 42
Bad 12 9
Very Bad 10 2
Total 100 100
Source: Field Survey 2019

Figure: 4.8 Customer Satisfactions Regarding Network Availability

45
40
35
No of respondents

30
25
20 NTC
15 Ncell
10
5
0
Very Good Good Average Bad Very Bad
Response

Source: Table 4.9

 50

Above table 4.9 shows various aspects of Nepal Telecom and Ncell mobile
phones regarding satisfaction of network performance. 13% of the Nepal telecom
users have exposed very good, 35% good, 30% average, 12% bad and 10% very bad.

While 15% of the Ncell users have exposed very good, 32% good, 42%
average, 9% bad and 2% very bad. Therefore, it can be concluded that most of the
customers are satisfied with Network performance of tower level Provided by Ncell
phone compared to Nepal Telecom.

Customer Responses Regarding Voice Quality of Nepal Telecom and Ncell can be
shown in following table.

Table 4.10 Customer Responses Regarding Voice Quality

Perception No of Respondent of NTC No of Respondents of Ncell

Very Good 16 25
Good 33 35
Average 35 25
Bad 7 8
Very Bad 9 7
Total 100 100
Source: Field Survey 2019

Figure 4.9 Customer Responses Regarding Voice Quality

40
No of Respondents

30

20
NTC
10 Ncell

0
Very Good Good Average Bad Very Bad
Response

Source: Table 4.10

 51

Above table 4.10 shows aspects of Nepal Telecom and Ncell mobile phones
regarding satisfaction of Voice Quality. Nepal Telecom user respond that 16% of the
respondents have exposed very good, 33% good, 35% average, 7% bad and 9% very
bad. Similarly Ncell user respond that 25% of the respondents have exposed very
good, 35% good, 25% average, 8% bad and 7% very bad. Therefore, it can be
concluded that Ncell customers are satisfied with the voice quality improvement of
network performance.

4.2.4 Customer Satisfaction on Tariff Rates

The objective four deals with the current tariff rate that is charged by Nepal
Telecom and Ncell regarding various services provided by it. These objectives deal
with whether the customer respondents are very high or low charges that are charged
by Nepal Telecom and Ncell. For this regard certain components like SMS charge,
caller ring back tone and other charges are considered so as to assess the tariff rates
offered by Nepal Telecom AND Ncell. The following figure shows how the customer
level of satisfaction on tariff rate has been sorted out. Customer Perceptions on SMS
Charge can be shown in following table.

Table 4.11 Customer Perceptions on SMS Charge profile

Response Respondents view about NTC Respondents view about Ncell

Very Good 4 3

Good 15 7

Average 27 9

Bad 37 40

Very Bad 17 41

Source: Field Survey 2019

 52

Figure 4.10 Customer Perceptions on SMS Charge

Very Bad
Response

Bad
Average Ncell
Good
Very Good NTC

0% 20% 40% 60%

Respondent %

Source: Table 4.11

The table 4.11 shows Customer Perceptions on SMS Charge on which Nepal
Telecom user respond that 4% responses among the 100 respondents voted for very
good, 15% responses were seen favoring for good, 27% responses were seen favoring
average similarly 27% of them voted for bad whereas 37% and very bad 17 % voted
for very bad regarding SMS charge. Comparing with Ncell, Ncell user respond that
3% responses among the 100 respondents voted for very good, 7% responses were
seen favoring for good, 9% responses were seen favoring average similarly 40% of
them voted for bad whereas and 41 % voted for very bad regarding SMS charge.

Therefore, it is clear that the current tariff rate of mobile phone is high which
seems to be a weakness component of Ncell.Whereas Nepal Telecom user are more
satisfied in regard of SMS charge .

Customer Attitudes towards Caller Ring Back Tone Charges can be shown in the

following table.

Table 4.12 Customer Attitudes towards Caller Ring Back Tone Charge

Response Respondents view about NTC Respondents view about Ncell

Very Good 12 20
Good 18 19
Average 30 35
Bad 20 20
Very Bad 20 6
Source: Field Survey 2019
 53

Figure 4.11 Customer Attitudes towards Caller Ring Back Tone Charge

Very Bad
Bad
Response

Average
Ncell
Good
NTC
Very Good

0% 10% 20% 30% 40%

Respondent %

Source: Table 4.12

Table 4.12 show that 12% of NTC customer seems to have realized that their
attitude towards call ring back tone is very good, 18% of them say that it’s good,
similarly 30% of them voted for average whereas, 20% of them voted for bad and the
remaining 20% voted for very bad. Whereas 20% of Ncell customer seems to have
realized that their attitude towards call ring back tone is very good, 19% of them say
that it’s good, similarly 35% of them voted for average whereas, 20% of them voted
for bad and the remaining 6% voted for very bad.

Thus, in conclusion it is seen that the call ring back tone facility provided by
Ncell is functioning properly compared to Nepal Telecom in connection to high cost.

4.3 Major Findings

This chapter shows the detail about the data presentation and analysis

according to the findings that are generated through questionnaire i.e. the research is

thoroughly based on primary data, which has been collected via the help of the

questionnaire. Thus, primary data refers to those data that has been collected from

firsthand experience. Primary data has not been published yet and is more reliable,

authentic and objective. Primary data has not been changed or altered by human

beings; therefore, its validity is greater than secondary data. Some of the findings

while presenting data and analyzing it are as follows:

 54

 The descriptive statistics (frequency statistics) of the independent variables

(demographics) and their individual percentage the survey was conducted to 200

individuals out of which 62 were male who use Nepal telecom service and 65 use

services provided by NCell. Similarly 38 respondents were female who use Nepal

telecom service and 35 use services provided by Ncell. Further, the individuals

were divided into different age groups so that a clear picture can be drawn to

know the interest and behavior of different age group individuals. Similarly, they

were also sub categorized under the address to know the reaction of individuals

living in Kathmandu valley and those who lives outside valley. (Source: Table

4.1)

 The customer service facilities provided by telecommunication network services

with immediate response is that 60% of the customer decide its good 25% of

customer said its average and very few people said it’s very bad. Whereas , Ncell

users response is that 52% of the customer decide its good 29% of customer said

its average and very few people said it’s very bad. Therefore, we can conclude

that most of the customers are satisfied with the services provided by Nepal

Telecom compared to Ncell. Time is one of the important factors for every person.

(Source: Table 4.2 and Figure 4.1)

 78 NTC users and 69 Ncell users response falls under average category of timely

handling the calls of the customer to provide customer service facility and least

respondent’s falls under bad and very bad category. So the above Bar Diagram

shows that in case of timing both Nepal Telecom come and Ncell falls under

average category to handle the customer service facility. (Source: Table 4.3 and

Figure 4.2)
 55

 The tower level of Ncell is good enough to make calls compared to Nepal

Telecom. Majority of people voted that its good and very few said it’s bad.

Therefore, in conclusion it can be said that calling line identification of and Ncell

is good compared to Nepal Telecom. (Source: Table 4.4 and Figure 4.3)

 Among various aspects of Nepal Telecom mobile phones regarding satisfaction of

services, 38 of the respondents have exposed very good, 31 good, 22 average, 6

bad and 3 very bad. Likewise Ncell mobile phones regarding satisfaction of

services, 42 of the respondents have exposed very good, 35 good, 17 average, 5

bad and 1 very bad. Therefore, it can be concluded that most of the Ncell

customers are satisfied with the network availability provided by Ncell which is a

bit less on regard of Nepal Telecom users. (Source: Table 4.5 and Figure 4.4)

 Among various aspects of Nepal Telecom mobile phones regarding satisfaction of

services, 6% of the respondents have exposed very good, 21% good, 47% average,

17% bad and 9% very bad. Whereas Ncell mobile phones regarding satisfaction of

services, 5% of the respondents have exposed very good, 4% good, 15% average,

60% bad and 16% very bad. Therefore, it can be concluded that Nepal Telecom

customers are in satisfied with the billing services compared to Ncell. (Source:

Table 4.6 and Figure 4.5)

 Nepal Telecom and Ncell mobile phones user regarding Validity Period of billing.

Nepal Telecom users respond that 16% of the respondents have exposed very

good, 19% good, 26% average, 34% bad and 4% very bad.Whereas Ncell users

respond that 10% of the respondents have exposed very good, 9% good, 25%

average, 39% bad and 17% very bad. Therefore, it can be concluded that most of
 56

the customers are dissatisfied with the validity period service provided by Ncell

compared to Nepal Telecom. (Source: Table 4.7 and Figure 4.6)

 Nepal Telecom and Ncell mobile phones regarding satisfaction of network

performance, Nepal Telecom user respond that 16% of the respondents have

exposed very good, 38% good, 37% average, 30% bad and 9% very bad 8%.

Moreover Ncell user respond that 25% of the respondents have exposed very

good, 29% good, 26% average, 15% bad and 5% very bad. Therefore, it can be

concluded that most of the customers are satisfied with the Network performance

in the clarity in sound. (Source: Table 4.8 and Figure 4.7)

 Customers satisfaction with Network performance of tower level response.Where

15% of the Ncell users have exposed very good, 32% good, 42% average, 9% bad

and 2% very bad. Therefore, it can be concluded that most of the customers are

satisfied with Network performance of tower level Provided by Ncell phone

compared to Nepal Telecom. (Source: Table 4.9 and Figure 4.8)

 Among Nepal Telecom and Ncell mobile phones regarding satisfaction of Voice

Quality. Nepal Telecom user respond that 16% of the respondents have exposed

very good, 33% good, 35% average, 7% bad and 9% very bad. Similarly Ncell

user respond that 25% of the respondents have exposed very good, 35% good,

25% average, 8% bad and 7% very bad. Therefore, it can be concluded that Ncell

customers are satisfied with the voice quality improvement of network

performance. (Source: Table 4.10 and Figure 4.9)

 Customer Perceptions on SMS Charge on which Nepal Telecom user respond that

4% responses among the 100 respondents voted for very good, 15% responses

were seen favoring for good, 27% responses were seen favoring average similarly
 57

27% of them voted for bad whereas 37% and very bad 17 % voted for very bad

regarding SMS charge. Comparing with Ncell, Ncell user respond that 3%

responses among the 100 respondents voted for very good, 7% responses were

seen favoring for good, 9% responses were seen favoring average similarly 40%

of them voted for bad whereas and 41 % voted for very bad regarding SMS

charge. Therefore, it is clear that the current tariff rate of mobile phone is high

which seems to be a weakness component of Ncell.Whereas Nepal Telecom user

are more satisfied in regard of SMS charge . (Source: Table 4.11 and Figure 4.10)

 12% of NTC customer seems to have realized that their attitude towards call ring

back tone is very good, 18% of them say that it’s good, similarly 30% of them

voted for average whereas, 20% of them voted for bad and the remaining 20%

voted for very bad. Whereas 20% of Ncell customer seems to have realized that

their attitude towards call ring back tone is very good, 19% of them say that it’s

good, similarly 35% of them voted for average whereas, 20% of them voted for

bad and the remaining 6% voted for very bad. Thus, in conclusion it is seen that

the call ring back tone facility provided by Ncell is functioning properly

compared to Nepal Telecom in connection to high cost. (Source: Table 4.12 and

Figure 4.11)
 58

CHAPTER V

CONCLUSIONS

5.1 Discussion

Nepal Telecom and Ncell has introduced cellular base mobile telephone

service to its customers about 7 years ago showing its commitment to bring home one

of the latest technologies in the fast changing world of telecommunication. Since it is

a service having more facilities than ordinary telephone and having mobility nature,

its popularity is increasing day by day as a result of other sector have also shown

interest in the field of mobile telecommunication.In present days considering the huge

competition, Nepal Telecom and Ncell should realize customer’s wants, attitude and

behavior and then provide service accordingly to increase best quality of services

level from the customers and to attract the potential customers. It should not be

forgotten that customer is the king in any business and the success and failure of any

business organization entirely depends on customer reaction to its offerings.

Understanding the market response as well as consumer behavior, it has

become much more complex because it requires continuous investigation. Neither any

scholars nor Nepal Telecom and Ncell itself has conducted such research by giving

focus on customer reaction on mobile telephone service.

In such a circumstance, an attempt has been made in this research to study the

areas of customer satisfaction on mobile telephone service by connecting it with

customer response. The underlying objectives of the study are to assess the

expectations and area of satisfaction of mobile phone users, to assessment the

customer satisfaction with regard to tariff rate, network performance and services.
 59

In the course of achieving these objectives, a sample of 100 mobile phone

users was taken by judgmental sampling from the Kathmandu valley. The sample

includes gender, age group and address. They were interviewed with the help of

structured questionnaires. The collected data were completely analyzed and

interpreted on objective-wise. Table, bar diagram and pie charts are presented as per

need.

Nepal Telecom and Ncell has been providing various telecommunication

services that vary from other sector telecommunication facilities. While observing the

distribution trend of mobile phone, it can be seen that mobile phone users are in

increasing order, although the growth rate is not constant. Among various services

available on Nepal Telecom and Ncell mobile phones, the basic services like calling

line identification, all users use SMS, caller ring back tone. Other most popular

services are balance transfer service, and call forwarding service. The various services

in mobile phones provided by Nepal Telecom and Ncell seem almost sufficient. Nepal

Telecom and Ncell Network satisfy most of the customer with the types of services on

Nepal Telecom and Ncell mobile phones and area coverage. Most of the customers’

expectations are to improve quality of service and reduce price. Most of the users

have felt that the current tariff rate of Nepal Telecom and Ncell mobile phone is high

and the differential tariff with respect to time interval is necessary. Some of the users

agree that the clarity of sound in voice communication is accurate but majority of

them do not agree with that. They feel the sound clarity is poor.
 60

5.2 Conclusions

The customer service facilities provided by telecommunication network

services with immediate response shows that customers are satisfied with the

services provided by Nepal Telecom compared to Ncell. Moreover the maximum

number of respondents falls under average category of timely handling the calls of

the customer so both Nepal Telecom come and Ncell falls under average category

to handle the customer service facility. Apart from that The tower level of Ncell

is good enough to make calls compared to Nepal Telecom.

Among various aspects regarding satisfaction of services Ncell customers

are satisfied with the network availability provided by Ncell which is a bit less on

regard of Nepal Telecom users. In connection to satisfaction of services Nepal

Telecom customers are in satisfied with the billing services compared to Ncell.

Most of the customers are dissatisfied with the validity period service

provided by Ncell compared to Nepal Telecom. Regarding satisfaction of

network performance customers are satisfied with the Network performance in the

clarity in sound.

Customers satisfaction with Network performance of tower level shows

that the customers are satisfied with Network performance of tower level Provided

by Ncell phone compared to Nepal Telecom. Among Nepal Telecom and Ncell

mobile phones regarding satisfaction of Voice Quality Ncell customers are

satisfied with the voice quality improvement of network performance.Customer

Perceptions on SMS Charge shows current tariff rate of mobile phone is high

which seems to be a weakness component of Ncell. Whereas Nepal Telecom user

are more satisfied in regard of SMS charge . In connecion to the call ring back
 61

tone facility provided by Ncell is functioning properly compared to Nepal

Telecom in connection to high cost.

5.3 Implicatios

This research focuses on how different customer is satisfied with the services

provided by telecommunication sector in Nepal. In preparing this report numerous

lessons were learnt and the in depth expertise of how customer satisfaction can be

measured in a precise way. This research also tends to be creating awareness

regarding different products and services provided by different telecommunications

organization. The study tends to act as a reference to those who further like to do

research on the same topic. Different questionnaire are used to collect data, which

have been identified, and the basic idea of this report can be used in further

elaborating the report in the related topic. From this report various ideas has been

generated and implemented in practical life.Nepal Telecom has announced monsoon

offer packages for its different services that is being offered since July 17. Though

the government hiked the tax on telecom service charge (TSC), NT will be offering its

popular services on post budget rates while the company has made price inclusion on

other services for customers’ convenience. The government hiked TSC on voice

services increasing by 11 percent to 13 percent and 13 percent on data services. The

government will be implementing the increased rate from July 17. Previously,

customers were not charged for TSC for using data services.

This report has been analyzed from different perspective and how different

customer behaves and satisfaction level shown by them.

 62

The customer service facilities provided by telecommunication network

services with immediate response of Ncell need to be iproved. Moreover the

maximum number of respondents falls under average category of timely handling

the calls of the customer so both Nepal Telecom come and Ncell falls under

average category to handle the customer service facility. Apart from that The

tower level of Ncell is good whereas Nepal Telecom need to improve network

coverage. Likewise various aspects regarding satisfaction of services Ncell

customers are satisfied with the network availability provided which is a bit less

on regard of Nepal Telecom users which is room for improvement to NTC. In

connection to satisfaction of services Nepal Telecom customers are in satisfied

with the billing services whereas Ncell need to look back on its billing system and

tariffs. Most of the customers are dissatisfied with the validity period service

provided by Ncell compared to Nepal Telecom. Regarding satisfaction of

network performance customers are satisfied with the Network performance in the

clarity in sound.

Customers satisfaction with Network performance of tower level shows

that the customers are satisfied with Network performance of tower level Provided

by Ncell phone compared to Nepal Telecom. Regarding satisfaction of Voice

Quality Ncell customers are satisfied with the voice quality improvement of

network performance. Customer Perceptions on SMS Charge shows current tariff

rate of mobile phone is high which seems to be a weakness component of Ncell.

Whereas Nepal Telecom user are more satisfied in regard of SMS charge . In

connecion to the call ring back tone facility provided by Ncell is functioning

properly compared to Nepal Telecom in connection to high cost

 References
Alison, D. (2012). The contribution of emotional satisfaction to consumer loyalty.
International Journal of Service Industry Management, Vol. 12 (3).
Athanussopoulos, A. et. al., (2014). Behavioral response to customer satisfaction
Employee Competence affects consumer behavioral responses. Berrett:
Koehler Publishers.
Bajracharya, A. (2014), Customer Relationship Management In Nabil Bank
Limited, Issue and Problem, An unpublished thesis submitted to Faculty
of Management, T.U. Kathmandu.
Bajracharya, B. (1982). An Evaluation Study of Telecommunication Development in
Nepal, An Unpublished Master Dissertation, T.U. Kathmandu.
Baniya, L. (1994). A Study of Buyer's Behavior in Pokhara: With Special Reference
to Cross Cultural Buying Pattern, An Unpublished Master Dissertation, T.U.
Kathmandu.
Basyal, T. P. (1998). Marketing of Mobile Telephone in Nepal, An Unpublished
Master Dissertation, T.U. Kathmandu.
Dahal, P. (2018). Performance Evaluation of Chaudhary Group for customer
satisfaction in instant noodle. An Unpublished Master Dissertation, T.U.
Kathmandu.
Dahal, S. (2009). Pattern of consumer decision making process while purchasing high
involvement goods in Nepal. An Unpublished Master Dissertation, T.U.
Kathmandu.
Ezzat, A.A. (2018). An international index for customer satisfaction in the
construction industry. International Journal of Construction Management
Volume 15, (1)
Fornellet. al. (2013).The American Customer Satisfaction Index: Nature, Purpose, and
Findings. Hyatt Dorado Beach Resort and Country Club, Puerto Rico, USA
Gautam, L.P. (2018). Customer Satisfaction in Nepalese commercial Banks. An
Unpublished Master Dissertation, T.U. Kathmandu.
Gothe, S. (2016). A Study on Customer Satisfaction on Service of Nepal Telecom
(NTC). Master’s Thesis. T.U. Kathmandu.
HMG's Ministry of Information and Communication Department of Information,
(1998). Nepal Adhirajyako Sankshipta Parichaya, Kathmandu.
Integrated Development System (IDS) (1980). Economics of Telecommunications in
Nepal, Kathmandu
Kinner, Thomas C. & Bernhardt, Kenneth L. (1983). Principles of Marketing, New
York: Tata McGraw Hill.
Koirala, S.P. (2007). Marketing Dynamics, Kathmandu: M.K. Publisher.
Kotler, P. (2007). Marketing Management Analysis, Planning, Implementation and
Control. New Delhi: Prentice-Hall of India.
Loudon et. al. (1993). Emerging Concepts in Marketing, London: IPD
Manandhar, S.P. (2017). Customer’s Attitude Towards Nepal Bangladesh Bank. An
Unpublished Master Dissertation, T.U. Kathmandu
Marnik, G.D. (2017). The Effect of Customer Satisfaction on Consumer Spending
Growth. Journal of Marketing Research. Vol. 47 (1).
Michel, Laroche (2017). Service Quality Perceptions and Customer Satisfaction.
Journal of International Marketing. Vol. 12 (3)
Mowen, A. (1990). Marketing Analysis.6th edition, Illustrated: Pearson Education.
Pradhan, K. (2015). Customer Satisfaction: A General Guide to Nepalese
Business, An unpublished thesis submitted to Nepal Commerce
Campus, T.U.
Sapkota D.R. (2013). Customer Satisfaction in Service Sector, An Unpublished
Master Dissertation, T.U. Kathmandu.
Shrestha G. L. & Maharjan L (2016). Customer’s satisfaction with service division
system in Nepal Telecom, NTC Annual Journal 2008 p. 96
Shrestha, K. N. (2004). Marketing Management, Concept and Strategy, Kathmandu:
Veena Academic Enterprise.
Shrestha, S. K. (2008). Marketing Strategy and Management, Kathmandu: Padam
Educational Traders.
Simon et. al. (2015). Employee Attitudes, Customer Satisfaction, and Sales
Performance: Assessing the Linkages in US Grocery Storied, London:
Elsevier Ltd.
 APPENDIX 1
QUESTIONNAIRE

Survey Questionnaire for Satisfaction of NTC Services

Dear Respondent,
I am a MBS student of Central department of Management, Tribhuvan University. As
the part of fulfillment of my study, I have been assigned to conduct a research on
“Customer Satisfaction of Mobile Services.” I would like to request you to go
through the questionnaire below and answer them all. There are no wrong or right
answers. Answers of your experiences will be useful to me. Your personal
information will be kept confidential and used only for research purpose in
aggregation.

This questionnaire includes only the people who use the service provided by NTC.

1. Personal Information of Respondents

Please tick one for each criteria group
Gender Age Group Permanent Address
Male  Below 15  Inside Ktm. Valley 
Female  15 – 30  Outside Ktm. Valley 
30 – 50 
60 and Above 
2. Customer satisfaction offered by employees of the NTC.
Please tick ( ) the mark on rating value.
1=Very Good (VG), 2=Good(G), 3=Average(A) ,4=Bad(B), 5=Very Bad (VB)

VG G A B VB
2.1.Immediate response
2.2.Call handling ability
2.3.Timely and consistently
handling calls
2.4.Calling line identification
2.5.Customer attitude towards
Billing system
2.6. Customer attitude towards NTC
services regarding Validity period
3. Customer satisfaction on Network performance of NTC.
Please tick mark ( on rating value.
S.N. VG G A B VB
3.1. Reliability
3.2. Signals
3.3. Speed
3.4. Tower
3.5. Clearing
in sound

4. The current tarrif rate ( call charge) of mobile telephone.

1= Very high (VH), 2= High (H), 3= Average (A), 4= Low (L), 5= Very Low
(VL)
VH H A L VL
SMS Charge
Caller Ringtone
back charge
Voice mail charge
GSM internet
charge
Other charges

Thank you
 CUSTOMER SATISFACTION ON SERVICE
(With References Nepal Telecom and Ncell)

A THESIS

SUBMITTED BY
Ram Baniya
Exam Roll no. 277/014
Registration No. 7-2-551-104-2010
Central Department of Management

Submitted To:
Office of the Dean
Faculty of Management
Tribhuvan University

In Partial Fulfillment of the Requirements for the Degree of

Masters of Business Studies (MBS)

Kathmandu, Nepal
November 2018
 CONTENTS
INTRODUCTION........................................................................................................ 1
1.1 Background of the Study ...................................................................................... 1
1.1.1 Brief Introduction of MOBILE PHONE ....................................................... 3
1.1.2 Focus of the Study ......................................................................................... 6
1.2 Statement of Problem ........................................................................................... 6
1.3 Objectives of the Study ........................................................................................ 7
1.4 Significance of the Study ..................................................................................... 7
1.5 Limitations of the Study ....................................................................................... 8
1.6 Organization of the Study .................................................................................... 8
1.7 Review of Literature............................................................................................. 9
1.8 Theoretical Framework ........................................................................................ 9
1.9 Methods to Assess Customer Satisfaction ......................................................... 10
1.10 Research Methodology..................................................................................... 12
1.10.1 Research Design ........................................................................................ 12
1.10.2 Sources of Information/Data ..................................................................... 12
1.10.3 Sampling Design........................................................................................ 13
1.10.4 Population/Sampling ................................................................................. 13
1.10.5 Sampling Technique .................................................................................. 13
1.10.6 Sample Size ............................................................................................... 13
1.10.7 Data Collection Procedure ......................................................................... 13
1.10.8 Methods of data Processing ....................................................................... 14
1.10.8.1 Tools for Analyzing ................................................................................ 14
References
 INTRODUCTION

1.1 Background of the Study

With the unprecedented innovations in the field of telecommunication services and
rapid telecommunications development in the world, it has become necessary to bring
with the same pace development and expansion in this sector in Nepal also. Keeping
in harmony with the currently evolving new technological developments, the
emerging craze for globalization and liberalization of market economy concept, it is
felt that the resources and efforts of Nepal government alone cannot fulfill the steadily
increasing demand of the telecommunication services in a competitive environment.
Even though the private sector entrepreneurs are interested in investing in the novel
sectors, flow of private sector capital in productive areas could not be made effective
due to unfavorable environment and lack of opportunities. Taking this scenario into
account, the National Communication Policy 1992 envisaged the concept of
encouraging the private sector participation for providing telecommunication services
to the public and to assist to the extent possible as is deemed necessary in an easily
available, simple and well planned manner for the development, expansion and
operation of this sector inside the Country of Nepal as well as abroad. With this
concept, using liberalization policy and involving the private sector in a competitive
environment for the development and expansion of telecommunication sector in
Nepal, His Majesty's Government of Nepal's (cabinet’s) decision dated December 25,
1995 has initiated the involvement of the private sector in the development of the
telecommunication services. Nepal Telecommunications Authority as an autonomous
regulatory body has been established on March 4, 1998 as stipulated within the
framework of the Telecommunication Act 1997 and Telecommunication Regulation
1998 to make this work more systematic and regular.In the context of the difficult
geographical terrain of Nepal, telecommunications infrastructure is seen as more
important than others are. New opportunities are being seen in the telecom sector due
to the rapid development of technology and continuous changes in the infrastructures.
Nepali citizens can also benefit from the worldwide trend in the reduction of tariff in
the telecommunications sector. In this context, by utilizing the achievements gained in
the telecom sector for maximum benefits and to use the possibilities and opportunities
that might come in future for the greater benefit of the Nepali people, the necessity of

1
an appropriate and up to date policy has been felt. Hence, His Majesty's Government
of Nepal has passed the Telecom Policy, 2004 replacing the older Telecom Policy,
1999 by the decision of the cabinet on March 8, 2004.The monopoly of limited
telecom industries, curious and capacity of Nepalese people towards telecom services
and a new innovative topic in the field of marketing build keen interest upon the topic.
The frequent discussion, team of research project co ordinate bring closer for the
development of interest. The development of IT world and curious world make closer
with this topic Nepal is considered economically less privileged and less developed
among the countries in the world with around per capita income of US $240. Recently
Nepal has adopted the path of economic development through liberalization for the
economic growth of nation. The overall development of a nation largely depends on
its economic development. Thus, the primary goal of any nation, including Nepal,
should be rapid economic development to promote welfare of the people and nation as
well. Thus, for the overall development of the country, many private as well as public
enterprises have been established and they all are performing on their own way to
make better Nepal. Mainly, public enterprises are established in a view to build up the
infrastructures for development. However, in Nepal, many others have also been
established for providing basic needs (goods and services) of people. While the
private sector enterprises are established solely with business, motives and they
provide basic and other types of needs of the society. In the context of Nepal,
government utility service organization like MOBILE PHONE is playing major role
in the development of country. However, whichever the type of enterprises; either
public or private, various activities such as finance, marketing, production etc. should
be performed for smooth running. Each activity plays its own vital role for better
operation. The achievement of the business organization largely depends on how
much these activities are integrated and coordinated in the business system and here
one can see the importance of marketing. It is the area of business enterprise, on
which all other functional areas are directly related. It is the means of integrating and
coordinating such functions in the business organization.As being an important
aspect, the business organization should always be sincere for its management. The
success and failure of an organization mainly depends upon its marketing strategy.
Therefore, the marketing personnel should analyze the strategy in a timely manner. It
is concerned with analyzing the different marketing tools and action plans that are
being applied for products and services of the enterprise. The real picture of
2
marketing performance will be disclosed after thoroughly analyzing these tools and
action plans. The focus of the study is in the determination of the level of customer
satisfaction of mobile phone services of MOBILE PHONE based on surveys and
interviews with customer.

1.1.1 Brief Introduction of Nepal telecom and NCELL

Nepal Telecom
Nepal Telecom is the first mobile network operator in Nepal. It was founded in 1913
A.D and till date the company is in function. During the time of establishment it was
known as Telecommunication Department. Later on 1969 A.D the name was changes
as Telecommunications Development Board. After the company was formally
established as fully-state owned company in 1975 A.D, it was named as Nepal
Telecommunication Corporation. The company was transformed to a public limited
company from state own company on 2060 B.S. On 2061 B.S the company was
named as Nepal Doorsanchar Company Limited. It is a state owned network provider
with 85% of government share. Nepal Telecom is only provider of fixed line, ISDN
(Integrated Services Digital Network) and leased-line. Recent data shows us the
Nepal Telecom has 10 million users including all GSM mobile, landline CDMA and
internet service. The company also claimed to be the first operator to provide 3G
service in South Asia. The company carries long history. It’s name and status changed
with the time and technology. Nepal Telecom provides good service covering all parts
of Nepal whether it is urban area or rural area.In Nepal, operating any form of
telecommunication service dates back to 94 years in B.S. 1970. However, formally
telecom service was provided mainly after the establishment of MOHAN
AKASHWANI in B.S. 2005. Later as per the plan formulated in First National Five
year plan (2012-2017); Telecommunication Department was established in B.S.2016.
To modernize the telecommunications services and to expand the services, during
third five-year plan (2023-2028), Telecommunication Department was converted into
Telecommunications Development Board in B.S. 2026. After the enactment of
Communications Corporation Act 2028, it was formally established as fully owned
Government Corporation called Nepal Telecommunications Corporation in B.S. 2032
for providing telecommunications services to Nepalese People. After serving the
nation for 29 years with great pride and a sense of accomplishment, Nepal
Telecommunication Corporation was transformed into Nepal Doorsanchar Company
3
Limited from Baisakh 1, 2061. Nepal Doorsanchar Company Limited is a company
registered under the companies Act 2053. However, the public knows the company by
the brand name Nepal Telecom as registered trademark. Nepal Telecom has always
put its endeavors in providing its valued customers a quality service since its
inception. To achieve this goal, technologies best meeting the interest of its customers
has always been selected. The nationwide reach of the organization, from urban areas
to the economically non- viable most remote locations, is the result of all these efforts
that makes this organization different from others. Definitely, Nepal Telecom's
widespread reach will assist in the socio-economic development of the urban as well
as rural areas, as telecommunications is one of the most important infrastructures
required for development. Accordingly in the era of globalization, it is felt that
milestones and achievements of the past are not adequate enough to catch up with the
global trend in the development of telecommunication sector and the growth of
telecommunication services in the country will be guided by Technology, Declining
equipment prices, market growth due to increase in standard of life and finally by
healthy competition.
Converting NT from government owned Monopoly Company to private owned,
business oriented, customer-focused company in a competitive environment, Nepal
Telecom invites its all-probable shareholders in the sacred work of nation building.
NCELL
Ncell is one of the most popular mobile network operators in Nepal. It is the first
privately owned mobile network operator ever in Nepal and also the first to operate
public GSM service. . It was initially known as Mero Mobile later on 12 March 2010
it was named as Ncell. Spice Nepal Pvt Ltd use to own Mero Mobile that was
established in 2004 later on TeliaSonera (Swedish and Finnish telecommunications
company) took control over the company in October 2008 and rebranded the name to
Ncell. Recently, on 12 April 20116, Axiata Group Berhad (Malaysian
telecommunications group) bought the 80% ownership of Ncell at 1.36 billion US
dollars.
The service of Ncell is all over Nepal. Whether it is urban area or rural area the
company has nice grip over the people and the costumers are also satisfied with the
services provided by company. The subscribers of Ncell have reached to 14 million as
of August 2016. Also, you won’t be surprise to know that Ncell is the largest ISP
(Internet Service Provider) in Nepal and it has more than 3 million subscribers.
4
A privately owned GSM mobile operator in Nepal, Ncell Private Ltd. popularly
known as Ncell is the first private company to operate GSM services in Nepali
telecommunications sector. It started with the brand name “Mero Mobile” which was
later changed into Ncell in 12 March 2010. It built a new arena in cellular telephone
services in Nepal and broke the monopoly of the then state-owned (now public)
telecommunication company Nepal Telecom also known as NTC in Nepali
telecommunication sector.
Previously known as Spice Nepal Private Ltd., which was established in 2004 with
the license issued by Nepal Telecommunications Authority that launched its services
on September 17, 2005 in Kathmandu and its neighboring area, the company has
spread its services and coverage to 75 districts of Nepal. Now, eighty percent of its
ownership belongs to Swedish/Finnish Company, TeliaSonera Holdings and that is
when it re-branded itself as Ncell. Ncell is the largest ISP in Nepal as it has the
subscriber base of more than 1.9 million users. It provides services like voice call,
SMS service, 3G, Ncell Connect-browsing internet through data card, EDGE/GPRS,
call waiting, call forwarding, conference call, voice mail, missed calls notification,
SMS to email, email to SMS, USSD, mobile internet (GPRS/EDGE), multimedia
messaging services (MMS), personalized ring back tones (PRBT) and various other
value added services. It has also started international calls without calling card and
also international roaming to various countries is available. All these services are
available for both, the pre-paid and post-paid numbers. Most of the services it
provides were introduced for the first time in the Nepalese Telecommunication
market that has re-defined the arena of the Nepali telecommunication.
It has tied up with various operators in more than 125 countries, including 425
operators around the world and has been gradually expanding its roaming partners to
provide convenience to its customers.There are around 45 Customer Care Centers and
is gradually opening new centers in different parts of the country to extend and
improve its services. There are around 4000 outlets in the different parts of the
country for distributing unlimited pre-paid and post-paid lines.Also getting a sim card
is not as troublesome as it is for other networks. All you need is a couple of passport-
sized photo and a copy of your ID card (citizenship card or other student ID card).
However, you also need to take the valid ID for reference. It has received “Mobile
Operator with Best Consumer Pull in Nepal” and “Most Innovative Mobile Operator
5
in Nepal” award at the CEO Conclave Award 2006, organized by South Asia’s
leading information and communication magazine Voice & Data. The winners were
chosen from the best mobile operators in the SAARC region for their contributions in
cellular phone development, innovative products introduction and value added
services performance in a function held at Colombo, Sri Lanka. It was also awarded
as “Mobile Operator with Best Consumer Pull in Nepal 2007” at an event held at
Kathmandu.Moreover, it organizes various events and activities like cricket matches,
football matches, and musical concerts and also make donations to various charitable
trusts and organizations. It goes with the tagline Ncell, Nepal kai lagi” (Here for
Nepal). The head office of Ncell is located in Krishna Towers, New Baneshwor. Ncell
users can reach customer care service center by dialing “9005” on their cell phone.

1.1.2 Focus of the Study

This study is mainly focused on measuring the level of satisfaction of MOBILE
PHONE users. The main theme is to find out the services that have been provided by
MOBILE PHONE to its customers and analyze them briefly and compare whether it
is aligned with customer satisfaction or not. The study is concerned with finding out
the degree of awareness that the user of MOBILE PHONE holds about the brand
name MOBILE PHONE.
1.2 Statement of Problem
Nepal Doorsanchar Company Ltd popularly known as Nepal Telecom is state
owned telecommunication service provider in Nepal with 91.49% of the government
share. The company was a monopoly until 2003, when the first private sector operator
UTL started providing basic telephony services. .Since the world today is using very
new and recent technologies in the field of communication service, Nepal too is not
exception to this. Thus in recent years the people of few cities specially Kathmandu,
Biratnagar, Birgunj, Pokhara etc., due to extensive urbanization as well as the cities
being hub of all economic activities are demanding advanced communication
facilities. In the context of fulfilling such demands, MOBILE PHONE has launched
“Mobile Service” as a government sector service in telecommunication in Nepal. To
know how much quality service is being rendered by MOBILE PHONE is very
difficult to draw conclusion. This has become a problem and matter of confusion till

6
now. This study aims to know the reality of this questions and problem. Addressing
the key issues, the present study tries to answer the following questions:
1. Are Nepal Telecom and NCELL’s customers satisfied with the services being
offered to them?
2. Are Nepal Telecom and NCELL's customers satisfied towards the services of
Nepal Telecom and NCELL on network performance?
3. Do customers are satisfied with Tariff rates offered by Nepal Telecom and
NCELL?
1.3 Objectives of the Study
The general objectives of this research will be to assess the expectations and areas of
satisfaction of MOBILE PHONE customers. The specific objectives of this research
are as follows:
1. To explore customer satisfaction with regard to services offered by Nepal
Telecom and NCELL
2. To make an assessment to satisfaction of customers on network performance
3. To explore the customer satisfaction on tariff rates offered by Nepal Telecom and
NCELL
1.4 Significance of the Study
Since the subscribers or users of mobile telephone can take many facilities than the
ordinary telephone subscribers, the importance of mobile phone is continuously
increasing. The number of MOBILE PHONE users within this short time frame is
increasing in large number. The increasing demand and popularity of mobile phone is
attracting the attention of investors to invest in these areas. Analysis of marketing
position is a crucial part of decision-making process of a business enterprise. Poor
management affects adversely on profitability of organization. MOBILE PHONE is
an enterprise of great national concern. Thus, this study is made to evaluate the
marketing position of MOBILE PHONE. MOBILE PHONE is service oriented
business enterprise. So, it should provide better services as well as make profit for the
sake of expansion of its services, adoption of new technologies, repair and
maintenance to keep its services update/intact. Due to changing scenario of the
economy and the current political situation, the private sector companies are
discouraged to run an organization smoothly. Therefore at one side MOBILE PHONE
is effectively operating its activities in distributing the new communication services to

7
fulfill the growing demands of customers and on the other side, many services have
been launched by other parties . Therefore, it is sure that MOBILE PHONE will have
to face cutthroat competition with outside competitors in coming future. To get
success in such situation, this study will provide valuable guidelines to MOBILE
PHONE in making their new strategy in providing qualitative services. It will also
provide valuable insights and references to the scholars and researchers who are
interested in conducting further researches on the field of communication service.
1.5 Limitations of the Study
This research is the requirement for the partial fulfillment of master’s degree in
management. The researcher being a student and having a limited time and resources,
this research work is not free from limitations. A research is a full blaze and vast
investigation study for the settlement of the problems. It needs full time, adequate
amount of money, and authentic information. Therefore, these factors are assumed the
limitation of this study. Some other limitations that are considered while performing
research are as follows:
1. Although customers of Mobile Phone users are spread all over the country, but the
customer’s opinion, market response and customer profiles are collected/made
only from Kathmandu valley.
2. This study is only focused on user of mobile telephone services of Mobile Phone.
3. This study also contains primary as well as secondary data, thus the limitations of
the secondary data may exist.
1.6 Organization of the Study
This study has been organized under five chapters. The first chapter contains
introduction i.e. background, statement of the problem, objectives of the study,
rational or significance of the study and limitation of the study. The second chapter is
designed to examine the review of literature especially the historical background of
telecommunication services, its development in Nepalese context, the recently
available communication services and few past researchers conducted by the scholars.
The third chapter describes the research methodological aspects of the study and it
contains research design, sampling plan, and nature of sources of data, data collection
procedure and method of analysis. The fourth chapter is the main body part of the
study in which data presentation, analysis and their interpretation is included. Major

8
findings of the study are also presented in this chapter. In fifth chapter a summary,
conclusions and some valuable recommendations are presented in fifth chapter.
1.7 Review of Literature
The main purpose of performing review of literature in this study is to improve
telecommunication products and services in timely basis for customer satisfaction in
telecommunication industry. For this, the entire work of review of literature will be
performed from at least three perspectives as:
1.8 Theoretical Framework
Satisfaction is an important element in the evaluation stage. Satisfaction refers to the
buyer's state of being adequately rewarded in buying situation for the sacrifice s/he
has made. Adequacy of satisfaction is a result of matching actual past purchase and
consumption experience with the expected reward from the brand in terms of its
anticipated potential to satisfy the consumer's motives. (Loudon and Bitta, 1993:579)
After consumers obtain and use a product or service, they will tend to develop
feelings of satisfaction or dissatisfaction toward it. Consumer satisfaction has
traditionally been defined as "the evaluation rendered that the experience was at least
as good as it was supposed to be." This definition was developed around the
predominant model used to explain post purchase satisfaction in the 1970s the
expectation disconfirmation model. However, varieties of additional theoretical
approaches have been used to explain the formation of consumer satisfaction. Because
of accumulating evidence that consumer satisfaction is more than just, the
disconfirmation of an expectation revised definition of the concept is proposed.
Consumer satisfaction consists of general feelings that a consumer has developed
about a product or service after its purchase. As such, satisfaction is a type of
consumer attitude. Feelings of consumer satisfaction may result from expectancy
disconfirmation as well as from other process, such as equity, attribution, performance
evaluation and affect formation. (Mowen, 1990) Customers are user of products and
services. They purchase goods and services from the organization or seller. Customers
are the king of the market. Customers are the critical success factors of an
organization.“Satisfaction refers to the buyer’s state of being adequately rewarded by
the purchase decision” (Koirala, 2007). Thus, satisfaction is a type of customer
attitude. Customers have certain prior or pre-purchase expectations from a product or
service. They compare the product or service’s performance to their prior

9
expectations. If they find the performance higher than their expectations then they are
satisfied and if they find the performance lower than their expectations than they are
dissatisfied. Advertising has the major role to play in forming the expectations. When
they use or consume the products, they compare the actual performance to their
expectations.
1.9 Methods to Assess Customer Satisfaction
The study found that measures of CS/D were directly influenced by the affective
feelings of the consumers. There is a relationship in which the purchase leads to
affective reactions, which in turn lead to feelings of CS/D. Thus, in addition to the
cognitive knowledge that expectancies were disconfirmed, the feelings that surround
the post-acquisition process also appear to affect the satisfaction with a product
(Mowen, 1990).
Complaint and Suggestion System
To assess the customer’s satisfaction, company can use complaint and suggestion
system. Restaurants and hotels provide forms on which customers can check off their
likes, dislikes and suggestion. Many Companies set up customer hotlines with toll-
free numbers to make it customers to inquire, suggest or complaint. Some customer-
centered companies are P&G, General Electric, Whirlpool, etc. They establish hot
lines with tool free numbers. Companies are also using website and emails for quick,
two-way communication. They help the companies to generate good ideas for
improved products and services.
Customer Satisfaction Surveys
The Companies can take direct measures of customer satisfaction by conducting
regular surveys. They can send questionnaires or make telephone calls to customers to
find out how they feel about company’s products, services and performance. Studies
show that although customers are dissatisfied with one out of every four purchases,
less than 5 percent will complain. Most customers will buy less or switch suppliers.
Responsive companies measure customer satisfaction directly by conducting period
surveys. While collecting customer satisfaction data, it is also useful to ask additional
questions to measure repurchase intention and to measure the likelihood or
willingness to recommend the company and brand to others.
Ghost Shopping

10
It is also a way of assessing customer satisfaction. Under this, company can hire some
people to pose as potential buyers to report on strong and weak points experience in
buying the companies’ and competitor’s products. This mystery shopper can even test
how the company’s sales personal handle various situations. Mangers themselves
should leave their offices from time to time, enter company and competitor sales
situations where they are unknown, and experience firsthand the treatment they
receive. A variant of this is for managers to phone their own company with questions
and complaints to see how the calls are handled. Another useful way of assessing
customer satisfaction is to contact customers, who have stopped buying, or those who
have deflected to a competitor, and learn why this happened. Company can recapture
a substantial proportion of lost customers simply by contacting them, listening to their
concerns, and making a sincere effort to correct the problem. A satisfied customer
may have the following symptoms. Becomes loyal towards company and its products
for a longer period. Buys more when the company introduces new products. Talks
favorably about the company and its product. Pays less attention to competitors’
advertisements and brands. Becomes less sensitive to competitors’ price and other
offers. Provides ideas to the marketer to improve the product and its offers. Becomes
less costly than the servicing of a new customer.
Total Customer Satisfaction
Whether the buyer is satisfied after performance falls purchase depends on the offer’s
performance in relation to the buyer’s expectations. In general, satisfaction is a
person’s feelings of pleasure or disappointment resulting from comparing a product’s
perceived performance (or outcome) in relation to his or her expectations. If the
performance falls short of expectations’ the customer is dissatisfied. If the
performance matches the expectations, the customer is satisfied. If the performance
exceeds expectations’ the customer is highly satisfied or delighted. Although the
customer-centered firm seeks to create high customer satisfaction, that is not its
ultimate goal. If the company increases customer satisfaction by lower profits, the
company might be able to increase its profitability by means other than increased
satisfaction (for example, by improving manufacturing processes or investing more in
R&D). Also, the company has many stakeholders, including employers, dealers,
suppliers, and stockholders. Spending more to increase customer satisfaction might
divert funds from increasing the satisfaction of other “partners”. Ultimately, the
company must operate on the philosophy that is trying to deliver a high level of
11
customer satisfaction subject to delivering acceptable levels of satisfaction to the
other stakeholders, given its total resources.
1.10 Research Methodology
“Research Methodology is a way to systematically solve the research problem. It
facilitates the research work and provides reliability and validity to it” (Baniya, 1994).
The main objective of this research is to find out the level of customer satisfaction
towards the mobile telephone services of Mobile Phone. This chapter looks into the
various aspects of research methodology such as research design, nature and sources
of data, data collection procedure, etc. By analyzing various aspects, the clear idea of
services, network performance and different tariff rate offered by Mobile Phone can
be derived.
1.10.1 Research Design
Research design is the plan, structure and strategy of investigation conceived so as to
obtain answers to research questions and to control variance. The plan is the overall
scheme or program of research. It includes an outline of what the investigator will do
from writing the hypothesis and the operational implications to the final analysis of
data. For exploring the secondary sources of information about different aspects of
consumer satisfaction on mobile telephone, primary information will be generated
through interview with mobile phone users. The study is therefore analytical as well
as descriptive in nature. To generate primary data, a survey research design will be
applied in the study. The analysis of this research is based on certain research design
keeping in mind the objective of the study. Generally, research design means definite
procedure and technique, which guideline studying profound ways for researcher’s
ability. The main objective of this study is to find out the level of customer
satisfaction towards the mobile telephone services of Mobile Phone. For this purpose,
the research design of the study will be used for analytical as well as descriptive
methods of collected data. This study will give some valuable suggestions to
strengthen the marketing policy of Mobile Phone as far as possible.
1.10.2 Sources of Information/Data
The study will be based on secondary as well as primary sources of information/data.
A secondary data will include various periodicals, annual reports and other MIS
reports published by Mobile Phone. Besides, concerned department head will be
interviewed for the clarification of data. Primary sources of data will be collected

12
through the people who are using mobile telephone service provided by Mobile
Phone.
1.10.3 Sampling Design
The collection or the aggregate of objects or the set of results of an operation is called
universe or population and a representative part of universe, which is selected for the
purpose of investigation, is called sample. The points below describe how the
sampling design has been done with respect to unit, technique and size of the sample.
1.10.4 Population/Sampling
The total number of people using mobile telephone service of Mobile Phone
represents the population of the study. Sample of the study comprises the individual
users who use Mobile Phone services. Since the population of customers, using
mobile phone services is more than 500 million. Therefore, it is not possible to study
individually. So, a sample of 100 mobile phone users will be selected to attain the
desired objectives and goals of the research.
1.10.5 Sampling Technique
Based on judgmental sampling from the different cross section of the society for the
study with referring the quota sampling techniques considering the gender, age group
and address the major factor with selection of at least 30 samples from each group
will be selected. The sample data will be collected within the Kathmandu valley to
study the whole customer satisfaction level of Mobile Phone service users. Even
though the sample size is very small in comparison to the population, sufficient efforts
have been made to make the sample truly representative of the population and thus
present the specific characteristics of the population. Therefore the data collected is
comprised of different address and equally of both genders.
1.10.6 Sample Size
The sample size of 100samplesis considered for research process. Major factor like
gender, age group and address are considered to do comparison between other
variable to bring good result. Selection of at least 30 or more sample from each group
is considered.
1.10.7 Data Collection Procedure
For collecting primary data, the above mention population will be interviewed by self-
visiting to the customer with the prepared questionnaire and interviews. In addition,
few copies of questionnaire will be distributed to them. Sample of questionnaire will
be presented in appendix. Similarly, the secondary data and information will be
13
collected through research review, publications of Mobile Phone and other reports,
other magazines and TU journals at Kirtipur.
1.10.8 Methods of data Processing
The collected data will be thoroughly checked, compiled and presented in appropriate
table to facilitate analysis and interpretation. Analysis will be done descriptively as
well as statistically.
1.10.8.1 Tools for Analyzing
In this study, percentage, bar diagram, pie chart is used to analyze the collected data.
Likert Scale is used to collect the primary data from respondents. A percentage is
defined as a number represented as a fraction of 100. Percentages are used to express
numbers between zero and one. It is used to compare things and used in ratios. It is
denoted by the symbol percentage. Percentage = (Value / Total Value) x 100 A bar
graph is a chart that uses either horizontal or vertical bars to show comparisons among
categories. One axis of the chart shows the specific categories being compared, and
the other axis represents a discrete value. Some bar graphs present bars clustered in
groups of more than one (grouped bar graphs), and others show the bars divided into
subparts to show cumulate effect (stacked bar graphs).A pie chart (or a circle graph) is
a circular chart divided into sectors, illustrating numerical proportion. In a pie chart,
the arc length of each sector (and consequently its central angle and area), is
proportional to the quantity it represents. While it is named for its resemblance to a
pie, which has been sliced, there are variations on the way it can be presented.

14
 Bibliography

Alison, D. (2012). The contribution of emotional satisfaction to consumer loyalty.

International Journal of Service Industry Management, Vol. 12 (3).
Athanussopoulos, A. et. al., (2014). Behavioral response to customer satisfaction
Employee Competence affects consumer behavioral responses. Berrett:
Koehler Publishers.
Ezzat, A.A. (2018). An international index for customer satisfaction in the
construction industry. International Journal of Construction Management
Volume 15, (1)
Fornellet. al. (2013).The American Customer Satisfaction Index: Nature, Purpose, and
Findings. Hyatt Dorado Beach Resort and Country Club, Puerto Rico, USA
HMG's Ministry of Information and Communication Department of Information,
(1998). Nepal Adhirajyako Sankshipta Parichaya, Kathmandu.
Integrated Development System (IDS) (1980). Economics of Telecommunications in
Nepal, Kathmandu
Kinner, Thomas C. & Bernhardt, Kenneth L. (1983). Principles of Marketing, New
York: Tata McGraw Hill.
Koirala, S.P. (2007). Marketing Dynamics, Kathmandu: M.K. Publisher.
Kotler, P. (2007). Marketing Management Analysis, Planning, Implementation and
Control. New Delhi: Prentice-Hall of India.
Loudon et. al. (1993). Emerging Concepts in Marketing, London: IPD
Marnik, G.D. (2017). The Effect of Customer Satisfaction on Consumer Spending
Growth. Journal of Marketing Research. Vol. 47 (1).
Michel, Laroche (2017). Service Quality Perceptions and Customer Satisfaction.
Journal of International Marketing. Vol. 12 (3)
Mowen, A. (1990). Marketing Analysis.6th edition, Illustrated: Pearson Education.
Shrestha G. L. & Maharjan L (2016). Customer’s satisfaction with service division
system in Nepal Telecom, MOBILE Annual Journal 2008 p. 96
Shrestha, K. N. (2004). Marketing Management, Concept and Strategy, Kathmandu:
Veena Academic Enterprise.
Shrestha, S. K. (2008). Marketing Strategy and Management, Kathmandu: Padam
Educational Traders.
Simon et. al. (2015). Employee Attitudes, Customer Satisfaction, and Sales
Performance: Assessing the Linkages in US Grocery Storied, London:
Elsevier Ltd.
Review of Thesis:
Bajracharya, A. (2014), Customer Relationship Management In Nabil Bank
Limited, Issue and Problem, An unpublished thesis submitted to Faculty
of Management, T.U. Kathmandu.
Bajracharya, B. (1982). An Evaluation Study of Telecommunication Development in
Nepal, An Unpublished Master Dissertation, T.U. Kathmandu.
Baniya, L. (1994). A Study of Buyer's Behavior in Pokhara: With Special Reference
to Cross Cultural Buying Pattern, An Unpublished Master Dissertation, T.U.
Kathmandu.
Basyal, T. P. (1998). Marketing of Mobile Telephone in Nepal, An Unpublished
Master Dissertation, T.U. Kathmandu.
Dahal, P. (2018). Performance Evaluation of Chaudhary Group for customer
satisfaction in instant noodle. An Unpublished Master Dissertation, T.U.
Kathmandu.
Dahal, S. (2009). Pattern of consumer decision making process while purchasing high
involvement goods in Nepal. An Unpublished Master Dissertation, T.U.
Kathmandu.
Gautam, L.P. (2018). Customer Satisfaction in Nepalese commercial Banks. An
Unpublished Master Dissertation, T.U. Kathmandu.
Gothe, S. (2016). A Study on Customer Satisfaction on Service of Nepal Telecom
(MOBILE). Master’s Thesis. T.U. Kathmandu.
Manandhar, S.P. (2017). Customer’s Attitude Towards Nepal Bangladesh Bank. An
Unpublished Master Dissertation, T.U. Kathmandu
Pradhan, K. (2015). Customer Satisfaction: A General Guide to Nepalese
Business, An unpublished thesis submitted to Nepal Commerce
Campus, T.U.
Sapkota D.R. (2013). Customer Satisfaction in Service Sector, An Unpublished
Master Dissertation, T.U. Kathmandu.
Websites:
www.Mobile.gov.np
 APPENDIX 1
QUESTIONNAIRE

Survey Questionnaire for Satisfaction of Mobile Services

Dear Respondent,
I am a MBS student of Center Department of Management, affiliated to Tribhuvan
University. As the part of fulfillment of my study, I have been assigned to conduct a
research on Customer Satisfaction on Service of Nepal Telecom (With References
to Mobile Phone) I would like to request you to go through the questionnaire below
and answer them all. There are no wrong or right answers. Answers of your
experiences will be useful to me. Your personal information will be kept confidential
and used only for research purpose in aggregation. This questionnaire includes only
the people who use the service provided by Mobile.

Ram Baniya

Ram Baniya

Class Roll No:

Roll No:

TU Red No:

1. Personal Information of Respondents

Please tick one for each criteria group
Gender Age Group Permanent Address
Male  Below 15  Inside Ktm. Valley 
Female  15 – 30  Outside Ktm. Valley 
30 – 50 
60 and Above 
2. Customer satisfaction offered by employees of the Mobile.
Please tick ( ) the mark on rating value.
1=Very Good (VG), 2=Good(G), 3=Average(A) ,4=Bad(B), 5=Very Bad (VB)

VG G A B VB
2.1.Immediate response
2.2.Call handling ability
2.3.Timely and consistently
handling calls
2.4.Calling line identification
2.5.Customer attitude towards
Billing system
2.6. Customer attitude towards
MOBILE services regarding Validity
period

3. Customer satisfaction on Network performance of Mobile.

Please tick mark ( on rating value.
S.N. VG G A B VB
3.1. Reliability
3.2. Signals
3.3. Speed
3.4. Tower
3.5. Clearing
in sound

4. The current tarrif rate ( call charge) of mobile telephone.

1= Very high (VH), 2= High (H), 3= Average (A), 4= Low (L), 5= Very Low
(VL)
VH H A L VL
SMS Charge
Caller Ringtone
back charge
Voice mail charge
GSM internet
charge
Other charges

Thank you