Academic journal article International Journal of Management

Determinants of the Satisfaction and Repurchase Intentions of Users of Short Messenger Services (SMAS): A Study in the Telecom Sector of Pakistan

Academic journal article International Journal of Management

Determinants of the Satisfaction and Repurchase Intentions of Users of Short Messenger Services (SMAS): A Study in the Telecom Sector of Pakistan

Article excerpt

Survival and growth are the prime purposes of businesses. Companies are required to provide better quality services, so that they can meet their objectives. From this starting point, the present study examines the quality of service provided by telecom (cellular) companies in Pakistan, and its effect on the level of satisfaction and the intentions of customers to stay with the same telecom company. Specifically, we examine customer attitudes toward the Short Messaging Service (SMS) provided by these telecoms companies using the SERVQUAL model by Parsurman et al. (1988). Respondents of the study were 331 university students using SMS provided who completed a specially-developed customer questionnaire. Findings suggest that there is positive relationship between elements of service quality and both customer satisfaction and repurchase intentions, except for the element of empathy which was found to have a negative relationship with satisfaction and repurchase intentions of customers. Findings also indicate a positive relationship between user satisfaction and their repurchase intentions. Implications of the results for telecom companies are discussed.

Introduction

To become a market leader is dream of every organization. Firms need to be competitive in order to realize their dreams. Organizations use various strategies that bring higher returns and positive changes. While implementing these strategies customers are said to be the most valuable element for success. Now organizations try to retain their existing customers as compared to creating new ones as it takes less cost and effort. Retaining customers is important for all sectors of economies, whether manufacturing or services. Telecom sector is one of the mostly technologically developed sectors of the economy of Pakistan. Telecom sector is said to be one of the most developed sectors of Pakistan economy; as it has witnessed great amount of investment in recent past. The number of subscribers with in period of 1 996 to 2009 increased from 68,000 to 95 million in 2009 shows the level of growth in the sector (PTA). Cellular growth time lasts for five years in Pakistan i.e. (2003-2008), it broke all world records of covering network. As Valdecantos (2009) found that cellular companies of Pakistan have experienced 100% growth rate for many years. Now the existing firms are facing stiff competition due to saturation in market, so creation of new customers is quite difficult, so retention of customers (repurchase intentions) is the best policy. This gro\vth and finally saturation has attracted researchers, academicians, and business community. Numerous studies have been conducted in various parts of the world to study telecom sector from various perspectives ranging from engineering to business and marketing perspectives. Numbers of researcher have linked satisfaction and repurchase intentions with improved financial performance e.g. Reichheld and Sasser, (1990); Fornell and Wernerfelt, (1987). Steenkamp (1 989) discussed that in order to increase market share firms must retain their customers. Provision of better services is one of the major tools used to retain customers. Considering all the issues of importance this study is structured to judge the effect of quality of service on satisfaction and repurchase intentions of customers in the cellular companies of Pakistan. To simplify and make the topic researchable one dimensions of the service quality SMS (Short Messaging Service) is taken for the study.

Previous Literature

Quality is said to be an overall experience which customers' perceive by product interaction or interaction with service. Parasuraman et al. (1988), has defined quality which is based on judgment. "Service quality has been described as a form of attitude, related but not equivalent to satisfaction that results from the comparison of expectations with performance" (Shepherd, 1999; Cronin Jr. and Taylor, 1992; Bolton & Drew, 1991; and Parasuraman et al. …

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