As the SaaS space continues grow, churn rate is becoming increasingly important. Software companies rely heavily on the retention of customers in order to generate revenue. Customer service obviously plays a huge role in reducing churn rate and retaining customers. But customer service impacts more just churn rate — it impacts sales.
Customer satisfaction is established when brand fulfills the needs and desires of customers.
In this research study, the subscribers of telecom sector or the mobile service providers like Ufone, Mobilink, Telenor etc operating in Pakistan were targeted as the population while Price Fairness and customer services were the taken as predicting variables towards customer satisfaction as criterion variable.
The results showed that both the factors significantly contributed to explain customer satisfaction but comparatively price fairness had the larger impact on customer satisfaction than customer services.
Conclusion and implications of the study are also discussed based on the analysis. Customer satisfaction, price fairness and customer service 1.
Later on developments were made in the provision of telecommunication services to the customer on consistent basis but from the last two decades revolutionary changes in the telecom sector have taken place with the introduction of mobile telephony. This shift brought Pakistan telecommunication sector into a new era of growth and progress that had a great impact on its subscribers who became more sensitive about the service quality, pricing and switching barriers.
Telecommunication is the dominant industry from the last decade comparing others in Pakistan on account of substantial contribution to the national exchequer. Not only national but international companies started operations in Pakistan and created stiff competition nation wide.
This competitive International Research Journal of Finance and Economics - Issue 60 45 environment caused brand consciousness among subscribers and potential buyers.
Researches show that various factors impart in creating the awareness, satisfaction, loyalty, and sense of belongingness toward brands of any kind Report on how customer service affects sometimes customers themselves are unaware of the reasons for the brand preferences.
In the contemporary environment the only constant is change. Therefore, businesses have to develop different strategies in order to survive in long run. One of the best strategies is about satisfying the customers that ensure a long term growth of business.
Nowadays organizations are well aware of the benefits lies with retaining customer and strive to know the reasons in black box of customer that have impact on the brand choice to reduce the turn over rate. The main purpose of this research study was to investigate the key variables that are having strong influence on customer satisfaction in telecom sector and influence purchasing decision of customers.
Factors affecting customer satisfaction are key concern for any organization, department or country because through customer satisfaction any business can establish long term profitable relationship with customer.
The reason behind is once a firm loses its loyal customers it has to incur a cost of acquiring them again in addition to acquiring the new ones. Customer Satisfaction Customer satisfaction is defined as an "evaluation of the perceived discrepancy between prior expectations and the actual performance of the product" Tse and Wilton,Oliver Satisfaction of customers with products and services of a company is considered as most important factor leading toward competitiveness and success Hennig-Thurau and Klee, Customer satisfaction is actually how customer evaluates the ongoing performance Gustafsson, Johnson and Roos, Customer satisfaction makes the customers loyal to one telecommunication service provider.
Previous researchers have found that satisfaction of the customers can help the brands to build long and profitable relationships with their customers Eshghi, Haughton and Topi, Though it is costly to generate satisfied and loyal customers but that would prove profitable in a long run for a firm Anderson, Fornell and Mazvancheryl, Therefore a firm should concentrate on the improvement of service quality and charge appropriate fair price in order to satisfy their customers which would ultimately help the firm to retain its customers Gustafsson, Johnson and Roos, It is a common phenomenon that the services a brand offers and the price it charges actually determine the level of satisfaction among its customers, than any other measure Turel et al.
This satisfaction may influence the concerned company by repurchase, purchase of more products, positive word of mouth and willingness of customer to pay more for the particular brand. Any business is likely to lose market share, customers and investors if it fails to satisfy customers as effectively and efficiently as its competitors is doing Anderson, Fornell, and Mazvancheryl, Customer Services Customer service is a system of activities that comprises customer support systems, complaint processing, speed of complaint processing, ease of reporting complaint and friendliness when reporting complaint Kim, Park and Jeong, Customer services are the opportunities for telecom service providers that are added to mobile network other than voice services in which contents are either self produced by service provider or provided through strategic compliance with service provider Kuo, Wu and Deng, The improved customer services are the focal point of the telecom service providers for social as well as for economic reasons.
From a social point of view, services should be available to the customers on reasonable terms. As far as economic factor is concerned, services should satisfy the needs of the customers Turel and Serenko, ; Melody, For developing satisfaction among customers, the telecom service providers need to be extra careful for the customer services they provide.
Satisfaction of customer is determined by his evaluation of service provided by a brand Gustafsson, Johnson and Roos, The study of Ahn, Han and Lee shows that when the customers, do not get their complaints considered properly, they start looking for other brands.
It happens because either the customer service centers do not handle the complaints or the customers are not able to address them properly. Sometimes, telecom service providers take considerably longer time to resolve the problems like network coverage or call quality, the customers do not wait for long and hence they lose satisfaction with that particular brand Ahn, Han and Lee, Furthermore, the friendly attitude and courteous behavior of the service workers at service firms leaves a positive impression on the customer which lead towards customer satisfaction Soderlund and Rosengren, More Business.
One obvious effect of providing outstanding customer service is that it can make you more money. A Better Business Bureau/Gallup Trust in Business Survey found that one in five. It summarises the “bottom line” impact of poor service and identifies six key economic truths of customer experience that can help quantify the financial risks of inaction and justify the imperative for improving customer satisfaction.
ience, store service and sales activities as the four components of store image, and they all impact customer sa- tisfaction directly . Chitty et al.
() also empirically proved the dominant role of brand image in predict-. Of course customer service can also become your competitive advantage and you can end up communicating about it more than your products. Many customers are actually looking for nice customer service right now after decades of being treated badly.
In full, the report: Examines why customer service matters more for e-commerce retailers. Explains the consequences of both positive and negative customer service experiences for retailers.
Study the Effects of Customer Service and Product Quality on Customer customer service and product quality with customer satisfaction and loyalty in the context of the Indian automotive industry.
This made the researcher to provide answers to the research question, to be able to While studies on the way in which quality affects customer.