Analyzing the quality performance gap of the Telesur broadband
Transcription
Analyzing the quality performance gap of the Telesur broadband
MBA VI Program in Management & Finance 2009-2011 Analyzing the quality performance gap of the Telesur broadband services By Darryl John Wolf Suriname 2011 Supervised by Dhruba Lahiri, MBA/M.Phil This paper was submitted in partial fulfillment of the requirements for the Masters of Business Administration (MBA) degree at the FHR Lim A Po Institute and the Maastricht School of Management (MSM), Maastricht, the Netherlands, December 2011. ABSTRACT The Telecommunication market in Suriname is a highly competitive market with a rapidly growing broadband market. Telesur, the state owned company, is facing competition from the international company Digicell and Uniqua. Digicell is a very strong player in the Caribbean. To stay on top of the business, Telesur had to make some major changes in their company. But although Telesur is trying hard to stay the leader in this competitive market, report delivered by the Customer Service department showed that the customer‟s satisfaction is still below expectations from the clients. The problem stated for this study is to find out if there is a weakness in customer‟s satisfaction due to lack of: productivity, technical quality of services, problem detection and correction and reliability of the wire and wireless internet services. The objectives of this study were to find out if there is a difference between customers expected and perceived service quality; to determine the significant key factors that affect the overall customer satisfaction and to identify if the results of the customers satisfaction from Telesur are weak due to bad service quality performance of the operation departments. The data needed for this research was collected through an online questionnaire. And the method used for analyzing the data is the SERVQUAL method from Parasuraman et al., 1985. After analyzing the data it became clear that even though Telesur managers, involved in delivering wireless and wired internet services, know what customers expected, the expected services are not delivered. Furthermore it became clear that the technical departments are one of the main reasons for not delivering what customers expect. According to the literature this should not have been the case, because the changes that Telesur made in their company, to face the competition should have given Telesur enough knowledge to satisfy the customers. That is why it is highly recommended that Telesur does an evaluation of the change programs to find out what went wrong. Page | 2 SRFHR0609035 TABLE OF CONTENTS Abstract …………………………………………………………………………………………….2 List of Figures………………………………………………………………………………………5 List of tables………………………………………………………………………………………...6 1.1 1.2 1.3 1.4 1.5 1.5.1 1.5.2 1.5.3 1.5.4 1.6 1.7 1.8 1.9 GENERAL INTRODUCTION .............................................................................................................. 7 PROBLEM DEFINITION ..................................................................................................................... 8 THE RESEARCH QUESTIONS AND OBJECTIVES OF THIS STUDY .............................................. 9 THE THEORETICAL FRAMEWORK ................................................................................................ 10 RESEARCH METHODOLOGY ......................................................................................................... 11 Data needed .................................................................................................................................... 11 Sample selection .............................................................................................................................. 11 Sample size...................................................................................................................................... 11 Data analysis method ...................................................................................................................... 11 LITERARY STUDIES DETERMINE.................................................................................................. 11 LIMITATION OF THE STUDY .......................................................................................................... 12 THESIS STRUCTURE ........................................................................................................................ 12 SUMMARY ........................................................................................................................................ 13 CHAPTER TWO: 2.1 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.3 2.4 2.5 2.6 2.7 2.8 INTRODUCTION ............................................................................................................................... 14 THEORY ............................................................................................................................................ 14 The history of Internet ..................................................................................................................... 14 Fixed Broadband ............................................................................................................................. 16 Mobile broadband ........................................................................................................................... 16 Growth of the internet uses in Suriname ........................................................................................... 18 QUALITY OF SERVICE .................................................................................................................... 20 CUSTOMER SATISFACTION ........................................................................................................... 21 SERVICE QUALITY .......................................................................................................................... 25 MODELS OF SERVICE QUALITY .................................................................................................... 28 THE SERVICE QUALITY GAP ......................................................................................................... 35 SUMMARY ........................................................................................................................................ 38 CHAPTER 3: 3.1 3.2 3.3 3.4 3.4.1 3.4.2 3.5 3.6 3.6.1 3.6.2 3.6.3 3.6.4 3.6.5 3.6.6 LITERATURE REVIEW .................................................................................. 14 METHODOLOGY .................................................................................................. 39 INTRODUCTIONS ............................................................................................................................. 39 PROBLEM STATEMENT .................................................................................................................. 39 RESEARCH OBJECTIVES................................................................................................................. 40 THEORETICAL FRAMEWORK ........................................................................................................ 40 The used model for the theoretical framework .................................................................................. 40 Dependent & independent variables................................................................................................. 41 RESEARCH QUESTIONS AND HYPOTHESIS................................................................................. 42 METHODOLOGICAL CONSIDERATIONS ...................................................................................... 42 Research philosophy ........................................................................................................................ 42 Research purpose ............................................................................................................................ 43 Research approach .......................................................................................................................... 43 Research strategy ............................................................................................................................ 44 The questionnaire ............................................................................................................................ 46 Selection of sample and data collection ............................................................................................ 46 Page | 3 SRFHR0609035 3.7 DATA ANALYSIS ............................................................................................................................. 47 3.7.1 Data analysis methods ..................................................................................................................... 47 3.7.2 Reliability and validity ..................................................................................................................... 47 3.8 SUMMARY ............................................................................................................................................ 48 CHAPTER 4: 4.1 4.2 4.3 4.4 4.4.1 4.4.2 4.4.3 4.4.4 4.5 4.6 4.7 INTRODUCTION ............................................................................................................................... 49 DESCRIPTION OF SAMPLE ...................................................................................................................... 49 DESCRIPTIVE ANALYSES ....................................................................................................................... 50 COMPUTING THE SERVQUAL SCORES ........................................................................................ 58 The Wilcoxon signed-rank test of all 22 statements ........................................................................... 58 The Wilcoxon signed-rank test of the 5 dimensions ........................................................................... 59 The median and Gap scores ............................................................................................................. 61 The SERVQUAL importance level of the independent variables and the Weight score ....................... 68 RELIABILITY AND VALIDITY TEST .............................................................................................. 69 DISCUSSIONS OF FINDINGS ........................................................................................................... 71 SUMMARY ........................................................................................................................................ 78 CHAPTER 5: 5.1 5.2 5.3 5.4 DATA ANALYSIS, FINDINGS AND DISCUSSION............................................. 49 CONCLUSIONS AND RECOMMENDATIONS................................................... 79 INTRODUCTION ............................................................................................................................... 79 CONCLUSIONS ................................................................................................................................. 80 RECOMMENDATIONS ..................................................................................................................... 84 SUMMARY ........................................................................................................................................ 87 REFERENCES ..................................................................................................................................... 88 APPENDIX 0: ONLINE QUESTIONNAIRE...................................................................................... 91 APPENDIX 1: RESULTS CUSTOMER SURVEY ............................................................................. 97 APPENDIX 2: RESULTS TELESUR MANAGER’S SURVEY ........................................................ 107 APPENDIX 3: DATA SERVICE KPI’S ............................................................................................. 109 Page | 4 SRFHR0609035 LIST OF FIGURES Figure 1.1: The SERVQUAL or GAPS model ................................................................................. 10 Figure 2.2.1: The growth of Internet users from 1995 till 2010 ............................................................ 15 Figure 2.2.3.1: Evolution of digital cellular standards ............................................................................ 17 Figure 2.2.3.2 Mobile versus fixed connections .................................................................................... 18 Figure 2.4.1: Factors that affect customer satisfaction. Source: Hokanson (1995) .............................. 22 Figure 2.4.2: Customer satisfaction continues improvement. Source: Zairi, 2000 ................................ 24 Figure 2.4.3: The circle of satisfaction. Source: Zairi 2000 .................................................................. 24 Figure 2.6.1: The disconfirmation of expectation model (1980) (Oliver 1977, 1980, 1981) .................. 29 Figure 2.6.2: The Perceived service quality model .............................................................................. 30 Figure 2.6.3: The Three- Component model ........................................................................................ 31 Figure 2.6.4: Integrating the perspectives ............................................................................................ 32 Figure 2.7.1: The Gaps model of service quality ................................................................................. 35 Figure 3.4.1.1: The theoretical frame work ............................................................................................ 41 Chart 4.2.1: Daily responses of the customer survey.......................................................................... 49 Chart 4.4.3.1a: The Gap score of the dimensions for the customer survey .............................................. 66 Chart 4.4.3.1b: The Gap score of the dimensions for the Telesur manager survey ................................... 67 Chart 4.4.3.2: SERVQUAL dimension gap for the customer and Telesur manager survey .................... 67 Chart 4.4.4.1: Importance of the independent variables for both surveys .............................................. 68 Chart 4.6.1: Median scores of the dimensions ................................................................................... 71 Chart 4.6.2: Difference between the customer expectations and the manager‟s perceptions of the customer expectations............................................................................................................................ 72 Chart 4.6.3: The service quality of the independent variables ............................................................ 74 Chart 4.6.4: Expectations and perceptions from both surveys ............................................................ 74 Page | 5 SRFHR0609035 List of Tables Table 1.1: Key figures from Telesur annual report over the period 2006 till 2010 ............................ 8 Table 2.2.1: The growth of Internet users over the last decade .......................................................... 15 Table 2.6.1: Comparing the five models ........................................................................................... 34 Table 3.6.4.1: Likert scale codes ......................................................................................................... 44 Table 3.6.4.2: Coding independent variables ....................................................................................... 45 Table 3.7.2.1: Cronbach‟s alpha score interpretation ........................................................................... 47 Table 4.2.1a: Respondent‟s results ..................................................................................................... 49 Table 4.3.1a: Expectation tangibles for descriptive statistics from the customer survey ...................... 50 Table 4.3.1b: Perception tangibles for descriptive statistics from the customer survey ........................ 51 Table 4.3.1.c: Expectations and perception tangibles for descriptive statistics from the Telesur manager‟s survey (N = 30) .................................................................................................................... 51 Table 4.3.2a: Expectation reliability for descriptive statistics from the customer survey ..................... 52 Table 4.3.2b: Perception reliability for descriptive statistics from the customer survey ....................... 52 Table 4.3.2c: Expectation and perception reliability for descriptive statistics from the Telesur manager‟s survey................................................................................................................................... 52 Table 4.3.3a: Expectation responsiveness for descriptive statistics from the customer survey ............. 53 Table 4.3.3b: Perception responsiveness for descriptive statistics from the customer survey ............... 53 Table 4.3.3.c: Expectation and perception responsiveness for descriptive statistics from the Telesur manager‟s survey................................................................................................................................... 54 Table 4.3.4a: Expectation assurance for descriptive statistics from the customer survey ...................... 54 Table 4.3.4b: Perception assurance for descriptive statistics from the customer survey ....................... 54 Table 4.3.4.c: Expectation and perception assurance for descriptive statistics from the Telesur manager‟s survey................................................................................................................................... 55 Table 4.3.5a: Expectation empathy for descriptive statistics from the customer survey........................ 55 Table 4.3.5b: Perception empathy for descriptive statistics from the customer survey ......................... 56 Table 4.3.5.c: Expectation and perception empathy for descriptive statistics from the Telesur manager‟s survey………….. ...... ……………………………………………………………………………………………………………………………56 Table 4.4.1.1a: The Wilcoxon signed-rank test of the 22 statements ...................................................... 59 Table 4.4.1.1b: The Wilcoxon signed ranks test .................................................................................... 59 Table 4.4.2.1a: The Wilcoxon signed-rank test of the 5 dimensions....................................................... 60 Table 4.4.2.1 b: The Wilcoxon ranks test ............................................................................................... 61 Table 4.4.3.1a: The SERVQUAL scores of 153 customer questionnaire responses ................................ 62 Table 4.4.3.1b: The SERVQUAL scores of 30 Telesur manager questionnaire responses ...................... 65 Table 4.4.3.3: Calculation to obtain unweighted SERVQUAL score .................................................... 68 Table 4.4.4.1a: The customer survey SERVQUAL weighted Score ....................................................... 69 Table 4.4.4.1b: The Telesur manager‟s survey SERVQUAL weighted score .......................................... 69 Table 4.5.1a: Cronbach‟s Alpha customer‟s survey ............................................................................ 70 Table 4.5.1b: Cronbach‟s Alpha Telesur manager‟s survey ................................................................ 70 Table 4.5.2: KMO and Bartlett‟s Test ............................................................................................... 70 Page | 6 SRFHR0609035 CHAPTER I: 1.1 INTRODUCTION GENERAL INTRODUCTION The Telecommunications Company Suriname (Telesur) is the government owned telecommunications service provider in Suriname. Suriname is a small country with just over 500,000 inhabitants. It is the only Dutch-speaking nation in South America and has closer affinities with the Caribbean than with its continental neighbor countries. The density of Telecommunication is slightly lower than the average of the rest of South America and the Caribbean, a result that reflects the country‟s low GDP per capita. This state owned company had a monopoly position for 27 years in Suriname, but now they only have a monopoly over all fixed-line and wired broadband services. For mobile services Telesur is facing a competitive market. The competitors are: the privately-owned multinational Digicel, which operates throughout the Caribbean; and Uniqa, owned by Intelsur and United Telecommunications Services (UTS). Since the competitive market, mobile penetration in Suriname rises to a remarkably high amount and continues to grow beyond the 100% milestone, with many subscribers having up to three lines with different operators. Mobile phone services are a booming business in Latin America and the Caribbean. The success of mobile telephony in Latin America is due in large part to the inadequacy of the basic telephone infrastructure. Mobile penetration in Latin America and the Caribbean (LAC) is over 94% and well above the world average of 76%. However, the vast majority of mobile subscribers in the LAC region are prepaid. In the Caribbean, subscription numbers are sometimes pumped up by tourists or migrant workers who are not counted as part of the population. Broadband is poorly developed in Suriname. Penetration lays far behind the rest of the region; prices are high and download speeds are slow but adding up. Telesur is the exclusive provider of broadband access, primarily through 1ADSL. The fixed-line service in the year 2009 – 2010 equals 85,000 subscribers, an annual growth of 1.2%. The broadband penetration through ADSL was 17,000 in December 2010, which is only 20% of the fixed lines. The annual growth was 40 %. The mobile telephony subscriber in Suriname is 710,000 an annual growth of 16%. Some key figures from Telesur are: 1 http://www.budde.com.au/Research/Suriname-Telecoms-Mobile-and-Broadband.html Page | 7 SRFHR0609035 Table 1.1: Key figures from Telesur annual report over the period 2006 till 2010 2 Results (x 1000) 2010 2009 2008 2007 2006 Net revenues 291,291 276,612 301,503 317,050 283,786 Expenses 255,849 248,717 233,789 230,382 176,150 Operating results 35,442 27,894 67,734 86,668 107,636 After-tax results 17,000 26,506 50,590 76,340 78,516 1.2 PROBLEM DEFINITION The Telecommunication Market in Suriname is a competitive market with a lot of potential for growth, especially in the area of broadband market. Telesur‟s mission is to stay market leader in Suriname and to accomplish that, Telesur is undergoing some major changes in their organization. The most important changes within the company are: 2 • Telesur is in a process of changing from a technical driven culture into a market and customer oriented culture and structure • Telesur wants to deliver „just in time‟ services and full fill the needs of customers in the new competitive environment • The new corporate philosophy is based on: quality and cost control, profit, growth, diversity in services and higher efficiency of the organization • Activities: investments in organizational restructuring, client oriented training, leadership and change training and continuous education of employees http://www.telesur.sr/website/jaarverslag.asp?menuid=154&id=4 Page | 8 SRFHR0609035 • Constantly trying to be familiar with the customer‟s life cycle and try to be ahead of the life cycle. But although Telesur is trying hard to stay the leader in this competitive market, the customer‟s satisfaction is still below expectations from the clients. This is stated by the Customer Service department out of reports from the Helpdesk department. Customer satisfaction, in marketing terms, measures how products and services delivered by Telesur meet the expectations of customers. Because of the fact that Customer‟s satisfaction and service quality depend on customer‟s perceptions and expectations of the delivered services, the low performance of customer‟s satisfaction will have a negative influence on the company‟s revenues on the long run. The problem to be stated in this thesis: Is there a weakness in customer‟s satisfaction due to lack of: productivity, technical quality of services, problem detection and correction and reliability of the wire and wireless internet services. The hypothesis is: The result of the customer‟s satisfaction is still weak due to productivity, technical quality of services, problem solving and detection time and reliability of the wire- and wireless internet services from the operation departments. 1.3 THE RESEARCH QUESTIONS AND OBJECTIVES OF THIS STUDY Based on the problem definition the following research questions and objectives have been derived. Objectives: • • • Finding out if there is a difference between customers expected and perceived service quality Determine the significant key factors that affect the overall customer satisfaction Are the results of the customer‟s satisfaction from Telesur weak due to bad service quality performance of the operation departments? Research questions: • Is there a difference between customers expected and perceived quality? Page | 9 SRFHR0609035 • • • • Is there a difference between customer‟s expectations and the manager‟s perceptions of the customer‟s expectations? Is there a difference between translation of perceptions into service quality specifications and management perceptions of customer‟s expectations? Is there a difference between the customer-driven service designs and standards and the service delivery? Is there a difference between external communications to customers and the service? The goal of this study is the indirect benefit to the revenues of Telesur by studying the customer‟s life cycle the quality they expect and the quality they perceived. 1.4 THE THEORETICAL FRAMEWORK This study will use the model of the integrated GAPS model of service quality from Parasuraman, Zeithaml & Berry (1985, 1988) Words of mouth Personal needs communication Past experiences Excepted service GAP 5 Perceived service CUSTOMER PROVIDER Service delivery (pre & post contract) GAP 1 Customer Gap GAP4 1 External Communications to customers GAP 3 Translation of perceptions into service quality specifications GAP 2 Management perceptions of customer’s expectations Figure 1.1: The SERVQUAL or GAPS model3 The goal is to find the service quality Gap. Gap 5 = f(gap1, gap2, gap3, gap4) The method used is the quantitative research method. 3 http://www.12manage.com/methods_zeithaml_servqual.html Page | 10 SRFHR0609035 1.5 RESEARCH METHODOLOGY 1.5.1 Data needed The data needed for this research will be collected through a questionnaire. The questionnaire that will be used is special designed for the SERVQUAL method and have been widely used for measuring service quality in many research studies (Parasuraman et al., 1985). 1.5.2 Sample selection The sample is restricted to Telesur management, university students and young professionals. 1.5.3 Sample size The calculation from the sample size has a minimum of 150, this calculation is based on the Central limit theorem, and there for the sample size has a minimum from 30 per variable. 1.5.4 Data analysis method All the data from the questionnaire will be collected by an online questionnaire created in Google docs. The data will be analyzed through Google Docs, Microsoft Excel and SPSS. The statistical test to measure the strength and correlation between the independent and dependent variables by applying the regression analysis and other additional statistical analysis will be done through SPSS version 19. 1.6 LITERARY STUDIES DETERMINE The research method starts with a literature review. The literature review includes the research of books, articles, journals, company reports from Telesur and other international companies. The focus of this study is on: The growth of the wireless and fixed internet services in Suriname and the rest of the world. This will determine the importance of the service for the users Quality of service for wireless and fixed internet services and their key performance indicators used international and in Suriname The theory on customer satisfaction as a tool to measure how products and services delivered by a company meet the expectations of customers. A study of service quality models and the reason for choosing The SERVQUAL method from Parasuraman for performing a gap analysis of an organization‟s service quality performance against customer service quality needs by identifying the expectation and perceived service quality of the dimensions: tangibles, reliability, responsiveness, assurance and empathy. Page | 11 SRFHR0609035 1.7 LIMITATION OF THE STUDY In this study the researcher limited the questionnaire to: a. b. 1.8 University students and young professionals. The limitation is based on the fact that the questionnaire is in English which is not the spoken language from Suriname and because the researcher wants objective answers on the questions and not an emotional one. This group understands the importance of a questionnaire while the average people on the street will simply say that they want the best service and that they are receiving the worse. Telesur managers and their management team involved in wired- and wireless internet services. Since they are directly involved in making decisions to serve the customers. THESIS STRUCTURE Chapter one: Introduction A brief introduction to the Telecommunication Company Suriname (Telesur), their market position and the purpose of this thesis. Chapter two: Literature Review. A review of the development of wired- and wireless broadband services in Suriname and the rest of the world. The Service Quality theory and customer‟s satisfaction. The Gaps model of Parasuraman et al (the base of the SERVQUAL model). Chapter three: Methodology. The methodology and research strategy chosen for the problem statement. The questionnaire used for this study. The sample size and the method of collecting data. Chapter four: Data analysis, findings and discussions. Analyzing and discussions of the data collected from the questionnaire. Chapter five: Conclusion and recommendations. Conclusion and recommendations to the research questions in relation to the literature reviews and findings. Page | 12 SRFHR0609035 1.9 SUMMARY This chapter provides an introduction to broadband services and describes the problem definition. It also introduces the hypothesis, objectives and research questions, a brief description of the model and methodology used for this study. A short introduction of the chapters two until chapter five, which is the final chapter, is included. Page | 13 SRFHR0609035 CHAPTER TWO: 2.1 LITERATURE REVIEW INTRODUCTION This chapter discusses the evolution of the Internet service for mobile and fixed services. Out of this discussion the reader will understand why Internet services have such an important place in our life. The explosive growth of the service causes huge competition between internet service providers. This competition manifests itself not in technique but in the service delivered. The next discussion in this chapter is the importance of customer satisfaction and service quality and the linkage between them. Furthermore I will elaborate why service quality needs to measured to understand customers‟ expectations and perceptions. Finally this chapter discusses the service quality measurement instrument SERVQUAL. The end of this chapter deals with service quality measurement instrument SERVQUAL. 2.2 THEORY 2.2.1 The history of Internet The history of the Internet starts in the 1950‟s with the development of computers. Shortly after that there was a need for data transferring from one computer to another computer. It started with a simple point to point communication between the computers and expanded to point to multipoint communication between computers within one building. This was the development of the LAN (Local Area Network). A LAN is useful for sharing resources like files, printers, games or other applications. The demand for information transfer kept on rising and also the need to connect different LAN‟s to each other. Developers in the 1970‟s made internetworking possible and created the WAN (Wide Area Network). A WAN spans a large geographic area, such as a state, province or country. WAN‟s often connected multiple smaller networks, such as local area networks (LANs). The world most popular WAN is the internet. The Internet was introduced in 1982 by standardizing the concept of a world-wide network. In the late 1980‟s and early 1990‟s commercial Internet Service Providers (ISPs) began to emerge and in 1995 the Internet was commercialized. The world made a major change with communication by electronic mail, instant messaging, Voice over Internet Protocol (VoIP) "phone calls", two-way interactive video calls, and the World Wide Web with its discussion forums, blogs, social networking, and online shopping sites made their entrée in our lives. The Internet continues to grow, driven by ever greater amounts of online information and knowledge, commerce, entertainment and networking. The Internet is defined as the worldwide interconnection of individual networks operated by government, industry, academia, and private parties. The Internet, as no other communication medium, has given an International or, if you prefer, a "Globalized" dimension to the world. Internet has become the Universal source of information for millions of people, at home, at school, and at work. Page | 14 SRFHR0609035 Figure 2.2.1: The growth of Internet users from 1995 till 2010 The growth of Internet usage has been enormously in the last decade. According to statistics from March 2011 from http://www.internetworldstats.com/stats.htm there has been a growth of 480% worldwide. Table 2.2.1: The growth of Internet users over the last decade4 World internet usage and population statistics march 31, 2011 Population (2011 Internet users Internet users World est.) dec. 2000 mar. 2011 regions 1,037,524,058 4,514,400 118,609,620 Africa 3,879,740,877 114,304,000 922,329,554 Asia 816,426,346 105,096,093 476,213,935 Europe 216,258,843 3,284,800 68,553,666 Middle East 347,394,870 108,096,800 272,066,000 North America 597,283,165 18,068,919 215,939,400 Latin America/ Carib 35,426,995 7,620,480 21,293,830 Oceania/ Australia 6,930,055,154 360,985,492 2,095,006,005 World Total 4 Penetration (% population) 11.4% 23.8% 58.3% 31.7% 78.3% Growth 20002011 2,527.4% 706.9% 353.1% 1,987.0% 151.7% 36.2% 1,037.4% 60.1% 179.4% 30.2% 480.4% from http://www.internetworldstats.com/stats.htm Page | 15 SRFHR0609035 2.2.2 Fixed Broadband Broadband or high-speed Internet access allows users to access the Internet and Internet-related services at significantly higher speed than those available through “dial-up” Internet access services. Broadband speed varies significantly depending on the particular type and level of service ordered and may range from as low as 200 kilobits per second (kbps). Some advantages of broadband are: Voice over Internet Protocol (VoIP), an alternative to traditional voice telephone service that may be less costly for those depending on their calling patterns. Telemedicine: patients in rural areas can confer online with medical specialists in more urban areas and share information and test results very quickly. Access and use of many reference and cultural resources, such as library and museum data bases and collections. Distance learning opportunities, like online college or university courses, and continuing or senior education programs. Expanding educational and economic opportunities for consumers in remote locations. On-line shopping and Web surfing more quickly and efficiently. Downloading and viewing videos and photos on your computer are much faster and easier. VOD. Video on demand, IPTV and HDTV The consumption of bandwidth is increasing dramatically in every household especially because of; Video calls, IPTV, radio, live streams, video blogging, games and YouTube. Broadband can be provided over different platforms: Digital Subscriber Line (DSL); Cable Modem; Fiber-Optic Cable (Fiber); Wireless; Satellite; and Broadband over Power line (BPL). The chosen broadband technology will depend on a number of factors. These include how broadband Internet access is packaged with other services (like voice telephone and home entertainment), price and service availability. 2.2.3 Mobile broadband Another interesting medium to reach the internet is through the mobile phone. In 1981 the first generation (1G) of the mobile phone was born. This type of communication was an analog system that could only handle voice calls. Pretty soon after the introduction of prepaid charging, the mobile phone became such a success that the networks could not handle so many customers. In the 1990‟s the second generation (2G) was introduced. 2G networks were built mainly for voice services and slow data transmission. The rise in mobile phone usage was explosive and with the transformation from analog to digital an enormous amount of subscribers could be connected to the system. The new features introduced, were the SMS service or text messaging and roaming. Shortly after that GPRS was introduced in the GSM world. This was the first step in the evolution of GSM into the 3G generation. With this the gateway was opened to the internet Page | 16 SRFHR0609035 by using communication services such as email and web browsing. In 2003 the evolution reaches another peak and EDGE (Enhanced Data rates for GSM Evolution) was introduced. With EDGE, 2.75G, the customer experiences a speed of 80-100 KBPS over the internet. But in 2001 the third generation (3G) was already introduced in Japan. With 3G it was possible to receive video calls (video on demand and video conferencing), mobile TV, VOIP and browsing on the internet became a much more pleasant activity. Users experienced speed between 384 kbps and 1Mbps. This was interesting but it was obvious that due to cost and complexity, 3G was relatively slow adopted globally. In 2007 only 7% of mobile phone subscriptions worldwide had adapted 3G networks. But nowadays the 3G network is becoming much more popular because the old systems do not have enough speed and capacity to handle the hunger for data speed over the mobile phones. In 2009 the fourth generation, 4G, was born. The 4G system is an all IP system designed to increase data transfer speeds for Web surfing and video. It has much more capacity than the 3G network so it can handle much more data-calls. The user‟s experiences download speeds from 1.5 to 19 Mbps. Figure 2.2.3.1: Evolution of digital cellular standards Nowadays mobile internet access has become so attractive that the amount of users had past the amount of wired access users (DSL connections for example) long time ago. Page | 17 SRFHR0609035 Figure 2.2.3.2: Mobile versus fixed connections The great deployment of the availability of higher speed creates a lot of business opportunities. This has a spin off effect on the growth of the services. Nowadays most people cannot live without the internet connection. The most common reason for internet is for data transfer, advertisement, knowledge transfer, social networking, communication, entertainment, banking, gaming etc. To get all this together companies must provide very sophisticated and reliable networks to offer the different broadband services. 2.2.4 Growth of the internet uses in Suriname In 2003 Telesur upgraded their dial-up system to an ADSL system starting with 128 kbps download speed. It was a very slow start and in 2005 there were only a 1000 clients. In 2011 Telesur as the only ADSL provider in Suriname has almost 26,000 ADSL clients, 2000 wireless fixed- and 3,000 dial-up clients. The annual growth from 2005 till 2008 was above a 100%. From 2008 until 2010 the average growth was 70%. Fixed Internet availability is almost 80% in Suriname. The fixed-line service in the year 2009 – 2010 equals 85,000 subscribers. This means that the broadband penetration through ADSL is only 30% of the fixed lines. The average download speed from the ADSL service in Suriname is 512 kbps which means that it is hardly enough to watch a YouTube film. The average speed is not enough for Services like IPTV and Video on demand. One of the goals from the new government of Suriname is to make internet available for everybody. The first step was the elimination from taxes on telecommunication equipment. The second step was the stimulation from computers for educational purposes. By doing this they Page | 18 SRFHR0609035 expect the prices to drop5. This means that we can expect the ADSL internet penetration to grow rapidly in Suriname. The mobile telephony subscriber in Suriname is 710,000 an annual growth of 16%. There is a great competition for mobile broadband between the 3 mobile companies in Suriname. The technology used is not the latest. None of the three providers has a 3G or higher mobile network. They all have a 2G network which means that they cannot provide high speed data. The results from an audit, performed by a consultant hired by Telesur in 2009, shows that technically Telesur‟s mobile network is the second best in performance. Another important key performance indicator (KPI) is the application throughput. The application throughput is directly linked to the customer experienced service quality. A benchmark with different operators is presented in the diagram below. Figure 2.2.4.1: International benchmark of application throughput. (Telesur audit report 2009) Telesur is far behind in throughputs when compared against international operators but still has 40% of mobile market in Suriname. Out of statistical measurements from the quality department from Telesur, the growth of internet usage is rising enormously. The services delivered by Telesur are best effort services, and there is no Service Level Agreements (SLA) with customers. On the Telesur web site “ https://www.teleg.sr/teleg/website/page.asp?menuid=3 ” the Mobile service is described as dynamic, innovative, flexible, modern and up to date with emphasis on quality. And on the webpage “ http://www.sr.net/website/product.asp?menuid=68 ” the wired 5 http://www.starnieuws.com/index.php/welcome/index/nieuwsitem/6354 Page | 19 SRFHR0609035 internet service as a secure and reliable network with a shared throughput for customers. The geographical availability for wired and wireless services is almost 90%. This area is limited to the area were people actually live in Suriname. 2.3 QUALITY OF SERVICE An assumption has developed over the last 20 years that the internet supports any form of communication service. The service has changed from traditional reliable, non-real time data transfer from one computer to another to time critical services such as audio and video streaming. These services require a certain performance to be accepted by customers. The name used by providers to guarantee a certain form of service to their customers is called Quality of Service (QoS). For vendors, the challenge is to develop new equipment that is better than the legacy equipment. The technology must work in such a way that it full fit the customers‟ expectations for product quality, availability and reliability. Quality of Service is the ability to provide different priorities to different applications, users, or data flows, or to guarantee a certain level of performance to a data flow for example, a required bit rate, delay, jitter, packet dropping probability and/or bit error rate may be guaranteed. Quality of service guarantees are important if the network capacity is insufficient, especially for real-time streaming multimedia applications such as voice over IP, online games and IP-TV, since these often require fixed bit rate and are delay sensitive, and in networks where the capacity is a limited resource. For example in cellular data communication 6 A benefit of a QoS-enabled network is the capability to handle traffic streams in different ways. The traffic will be categorized into different types of classes and define how each type will be handled under different conditions. For example; who will be addressed as high priority traffic. Quality of service can be divided in to two types of services: a. The broadband technical performance b. Support services such as fault repairs, technical support to customers, billing and help desk etc. Every aspect in service is important. One weak link can make the Quality of service less than the expectations. To guarantee the technical quality, every company needs to work with a certain set of KPI‟s (Key Performance Indicators) and the KPI is dependent on the network and the services installed. For example: a network that offers HDTV will be different than a network with only basic features. In some countries the Government will set a fixed level for KPI‟s for companies to guaranty a certain performance quality such as speed, reliability and availability. On the other hand network Operators needs to make sure that there networks are able to meet the QOS 6 Teletraffic Engineering Handbook ITU-T Study Group 2 (350 pages, 4·48MiB)(It uses abbreviation GoS instead of QoS) Page | 20 SRFHR0609035 described in their service level agreements (SLA). QOS is also useful to optimize services, to minimize network costs and increase return of investment. This is a big challenge because of the dynamics of a growing customer base, charging technology and evolving service offerings. KPI‟s used for EDGE/GPRS mobile and DSL networks from Telesur are defined in appendix37. A service level agreement 8 is a part of a service contract where the level of service is formally defined. In practice, the term SLA is sometimes used to refer to the contracted delivery time (of the service) or performance, liabilities on the part of the service provider and the customer, and actions to be taken in specific circumstances. The scope of an SLA is to set out the service levels that apply when a customer purchases a certain product. The SLA will guarantee that the company will full fit to a set of agreements such as: a. b. c. d. e. The availability of a helpdesk to take notice of the fault Classification of faults and their connection to a time plan to solve the fault Several type of fault levels with different response and repair time A certain response time in respect of service and support enquiries A guaranty that faults should be solved within a certain time in respect of service affecting faults f. The availability of support for a certain time of the day, week or/and year. g. The availability of a certain quality regarding; throughput, bit error rate, latency, jitter etc. The QoS will give the guaranty that the services sold by the service provider full fit a certain quality, and the SLA will give the guaranty that the customer will get compensation if the service is not as agreed. Those failures and down time of the service will be taken care in a time period as agreed on. 2.4 CUSTOMER SATISFACTION In the Telecommunication business, the threat of customers switching to a competitor is always present. To minimize this threat the company must critically identify customer‟s needs and expectations. Customer satisfaction is a term mostly used in marketing. It measures how products and services delivered by a company meet the expectations of customers. Customer satisfaction is defined as “the number of customer‟s or percentage of total customer‟s, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals”9. Kotler (1997) defines customer satisfaction as a person‟s feeling of pleasure 7 Reference: Telesur audit report 2009. http://www.sla-zone.co.uk/ 9 http://www.themasb.org/wp-content/uploads/2011/08/N.-Language-Spaulding-8.11F.pdf 8 Page | 21 SRFHR0609035 or disappointment resulting from comparing a product‟s perceived performance in relation to his or her expectations. Customer satisfaction is the most important key element of business strategy. It is an indicator for consumer‟s purchase intentions and loyalty. In an organization, customer satisfaction rating shows the importance of fulfilling customer‟s expectations to employees and gives the business to possibility to correct an existing or expecting problem, and it create possibilities for improvements. Consumers usually face a broad array of products and services that might satisfy a given need. But how do they choose? Customers will buy from the one that is the nearest to their expectations of a service or product. Satisfied customers buy again and tell others about the service or product. Dissatisfied customers will stop buying, make negative promotion of the service and product and will buy from the competitor. If the performance matches the expectations, the customer is satisfied, if it exceeds it, they will be highly satisfied. Smart companies deliver more than they promise. By doing so they will create customers who will keep on buying, and they will be willing to become marketing partners and “customer evangelists” who will spread the word about their good experiences to others. For companies interested in delighting customers, exceptional value and service are more than a set of policies or actions. They are a companywide attitude, an important part of the overall company culture. Customer‟s perception about the product quality is that they want it to be durable, reliable, precision and easy to operate. There are many factors that affect customer satisfaction. According to Hokanson (1995), some of these factors are; friendly-, courteous-, knowledgeable-, helpful employees, accuracy of billing, competitive pricing, service and product quality, good value, billing clarity and quick service.10 ` Figure 2.4.1: Factors that affect customer satisfaction. Source: Hokanson (1995) 10 http://www.ucti.edu.my/wps/issue1/wp-06-06-paper.pdf Page | 22 SRFHR0609035 According to Hubert Rampersad (2001), Customer satisfaction is a key issue for all organizations in both the private and public sectors. To survive, a company must understand and provide what the customer wants. It is important to understand the entire chain of customers. The needs of each customer must be examined separately. Not only the external, but also the internal customers should be considered. In fact, if the company does not satisfy the needs of the internal customers, how will it be able to comply with the needs of the external customer? All employees determine the degree of customer satisfaction. As a supplier, you should try to figure out what the customer needs and wants. Because what the company thinks its customer wants is not necessarily the same as what the customer wants. What the company thinks it should to offer, is not necessarily the same as what the company actually offers, and not the same as what the customer experiences out of this offer. Customer satisfaction has a positive effect on organization‟s profitability. According to Hoyer and MacInnis (2001) satisfied customers form the foundation of any successful business as customer satisfaction leads to repeat purchase, brand loyalty and positive word of mouth. Coldwell (2001) performed a statistical analysis of customer satisfaction data encompassing the findings of over 20,000 customer surveys conducted in 40 countries by info Quest. The results of the study were: A totally satisfied customer contributes 2.6 times as much revenue to a company as a somewhat satisfied customer A totally satisfied customer contributes 17 times more revenue as a somewhat dissatisfied customer A totally dissatisfied customer decreases revenue at a rate equal to 1.8 times to what a totally satisfied customer contributes to a business Satisfied customers are most likely to share their experiences with other people to the order of perhaps five to six people. Equally well, dissatisfied customers are more likely to tell another ten people of their unfortunate experience. If people think that dealing with customer satisfaction/complaint is costly, they need to realize that it costs as much as 25% more to recruit new customers. Mohamed Zairi (2000) developed a model for continuous improvement of customer satisfaction a cycle which starts with listening to customers, analyzing their comments, developing an action plan and at the end the implementation. Page | 23 SRFHR0609035 Figure 2.4.2: Customer satisfaction continues improvement. Source: Zairi, 2000 Improvement is the next step after satisfaction is reached. True satisfaction can only be reached if there is a good working team. A good working team can only be build up if there are good working conditions, satisfied employees, and loyal employees. Good working conditions Employee satisfaction High profit Employee loyalty Customer Loyalty Product of good quality Customer Satisfaction Figure 2.4.3: The circle of satisfaction. Source: Zairi 2000 Page | 24 SRFHR0609035 2.5 SERVICE QUALITY The telecommunication market is becoming more competitive and companies are continuously searching for new ways to gain an edge over their competitors. One of the most important ways to gain edge over their competitors is the service quality delivery. According to Welch, quality is our best assurance of customer allegiance, our strongest defense against competition and the only path to growth and earnings. Berry and Parasuraman, 1991:5, support this by stating: “a stronger service gives companies the opportunity to compete for customers; a strong performance of the service builds competitiveness by earning customer‟s confidence and reinforcing branding, advertising, selling and pricing”. Zeithaml & Bitner (2003) state that: "Service quality is a focused evaluation that reflects the customer's perception of specific dimensions of service: reliability, responsiveness, assurance, empathy, tangibles”. Satisfaction, on other hand, is more inclusive: it is influenced by perceptions of service quality, product quality, and price as well as situational factors and personal factors. According to Parasuraman et al. (1988) service quality can be defined as the degree and direction of discrepancy between the customer‟s perception and expectations, or the extent to which a service meets or exceeds customer‟s expectations. The quality of a service depends on the service consistently conforming to customers expectations. Bearden and Teel (1983); Buzzell and Gale (1987) found an important positive relation between high-perceived service and quality and customer satisfaction. This positive relationship between perceived service quality and customer satisfaction creates true customers, increases efficiency and benefit from increased market share and profit, higher revenue and reduces cost by economies of scale, (Anderson and Sullivan, 1993; Zeithaml, Parasuraman and Berry, 1996). In 1991 Parasuraman, Zeithaml and Berry developed a service model that identified perceived service quality into five dimensions. These dimensions will be used in this thesis to measure the expected and perceived services as one of the determinants of customer satisfaction. The service quality is defined as the differences between customer‟s expectation of services and their perceived service. The gap between expected and perceived service is the measure of service quality. If the perceived service is greater than the expected service (ES < PS) the quality is exceeded. If the expectations meet the perceived quality (ES = PS) the service is from a satisfied quality. If the expected services are greater than the perceived service (ES > PS) the quality is from an unacceptable level. Expectations are a very important role within satisfaction of services. Expectations depend on several factors. The basic key factors formed by the Quality Accounts commission in 1999 to influence expectations are: Page | 25 SRFHR0609035 1. Personal needs: a customer or user of a service has certain personal needs, which they expect the service will provide them. These needs will differ from customer to customer and vary from service to service. To provide an appropriate service it is therefore very important to know and understand the customer‟s needs very well. 2. Previous experience: previous experiences with services will partly influence the future expectations of the service. 3. Word of mouth communications: a certain set of expectations will be formed because of the communication with anyone other than the service provider, such as family members, friends, colleagues, the media and other organizations such as the control authorities. The five principle dimensions, identified by Parasuraman, Zeithaml and Berry in 1998, that customers use to judge service quality are: 1. Tangibles This encompasses the appearance of physical facilities, equipment, personnel, and communication materials. o Modern equipment and latest services o Visually appealing facilities o Employees who have a neat, professional appearance o Visually appealing materials associated with the service convenient business hours According to Philip Kotler (1999); Bitner, M.J., and Zeithaml, V.A (2003), the appearance of physical facilities, equipment, personnel, and communication material of an organization is the tangibles. Gilbert A. Churchill, Jr & J. Pail peter (1999) added that for quality in the equipment, facilities, and communication materials used to provide the service. 2. Reliability This regards the ability to perform the promised service dependably and accurately. This includes the following actions: o Providing services as promised. For example: promises made by the helpdesk about network failures, error corrections etc. o Dependability in handling customer‟s technical problems o Performing services right the first time. For example: when a new product or service is introduced o Providing services at the promised time with an acceptable quality of service. Quality of service is a guaranty to a certain level of performance to a data flow regarding; browsing; multimedia services etc. o Deliver services completely free of errors. In broadband services this means that customer must always have access as long as they requested it, with an acceptable connection speed According to Philip Kotler (1999); Bitner, M.J., and Zeithaml, V.A (2003) the ability to perform the promised service dependably and accurately is the reliability. Gilbert A. Churchill, Jr & J. Paul Peter (1999) added that customers want performance to be consistent and dependable. Page | 26 SRFHR0609035 3. Responsiveness This is the willingness to help customers and provide prompt service. Important action points for responsiveness are: o Up-to-date and correct communication to customers about services that needs to be performed. For example; inform customers about maintenance activities that will be performed such as fault correction or upgrades on a broadband network. o Prompt service to customers. Customer complains must be handled right away o Willingness to help customers. For example 24/7 helpdesk availability. o Readiness to respond to customer‟s requests According to Philip Kotler (1999); Bitner, M.J., and Zeithaml, V.A (2003) responsiveness is the willingness to help customers and provide prompt service. Gilbert A. Churchill, Jr & Paul Peter (1999) added that customer must see service provider as ready and willing to perform. 4. Assurance This regards the knowledge and courtesy of employees and their ability to inspire trust and confidence. o The behavior of employees must instill confidence in customers o Making customers feel safe to do business with them o Employees who are consistently courteous. This involves politeness, respect, consideration and friendliness of contact personnel. o Employees who have the knowledge to answer customer questions According to Philip Kotler (1999); Bitner, M.J., and Zeithaml, V.A (2003), assurance means the knowledge and courtesy of employees and their ability to convey trust and confidence. 5. Empathy Empathy refers to the provision of Caring and individualized attention the firm provides its customers with. o Giving customers individual attention o Employees who deal with customers in a caring fashion. For example operating hours convenient to all customers o Having employees who give customers personal attention o Having the customer‟s best interest at heart o Employees who understand the specific needs of their customers According to Philip Kotler (1999); Bitner, M.J., and Zeithaml, V.A (2003), empathy means the provision of caring, individualized attention to the customer. Most customers want good service together with low prices. Companies that are capable of giving good services with low prices have a competitive advantage over their rivals. The SERVQUAL model is widely applied in organizations. It is excellent for a better understanding of what customer‟s value and how well the organization meets the needs and expectations of the customer. SERVQUAL is used for benchmarking customer‟s opinions of an excellent company, on your company, the importance of ranking of key attributes and the comparison with what the company employees believe customer‟s feel. One of the disadvantages is that it did not include any prices in the assessment. There is no relationship of price and delivered quality. Page | 27 SRFHR0609035 2.6 MODELS OF SERVICE QUALITY11 The SERVQUAL model has been widely used over the world by several companies over the last 2 decades. But this model is not the only model to measure service quality. Various researchers have developed models of service quality. Five of the key models are: 1. The disconfirmation of expectations model (Oliver 1977, 1980, 1981) 2. The Nordic model developed by Grönroos (1982; 1984). The Perceived service quality model 3. The SERVQUAL/ Gaps model developed by Parasuraman, Zeithaml and Berry (1985, 1988, 1991) 4. The three- component model developed by Rust and Oliver (1994) 5. Integrating the perspectives of the previous four service quality models in an effort to extend current thought in service quality into the twenty-first century. By Dabholkar, Thorpe & Rentz 1996, Brady & Cronin 2001) 11 Marketing service Organizations BM404-2006 lecture1. http://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&ved=0CBwQFjAA&url=http%3A% 2F%2Fuob-community.ballarat.edu.au%2F~jharman%2FBM404%2FBM404_lecture1.ppt&ei=02f4To2tEMHqggegeGdAg&usg=AFQjCNHVPt1Wmj73JgBm508EolRjQ2ROwA Page | 28 SRFHR0609035 The disconfirmation of expectation model Figure 2.6.1: The disconfirmation of expectation model (1980) (Oliver 1977, 1980, 1981) This model discusses three determinants of customer (dis)satisfaction: expectations, perceptions and (dis)confirmation. The theory behind this model is that customer expectations are formed before the purchase of a product or service. The expectations are used as a standard or frame of reference towards judgement of the service performance if the relation from the expectation to the actual performance is high, the degree of disconfirmation will also be high and the level of satisfaction low. Page | 29 SRFHR0609035 The Nordic model developed by Grönroos (1982; 1984). The Perceived service quality model Source: http://www.degromoboy.com/cs/gronroos.htm Figure 2.6.2: The Perceived service quality model This model represents the service experience on the basis of functional and technical elements. Grönroos stated that service quality experienced by a customer must be divided into two dimensions: 1. 2. Technical quality The technical quality refers to what the customers received during a service delivery. Functional quality The functional quality refers to how the service is delivered as reflected through the consumer‟s perception of interactions that occur during the service encounter. This model discusses customers form their service quality perceptions by comparing the expected level of service and the actual service performance they receive. The key for managers is the clear distinction between the service itself and how it is delivered. Page | 30 SRFHR0609035 The SERVQUAL/ Gaps model This model, as described in paragraph 2.5, measures the difference between customer‟s expectations about the quality of a certain group of services and their perceptions about the performance of the services. The Three- Component model Source: Rust & Oliver, 1984 Figure 2.6.3: The Three- Component model The Three-Component model includes factors relating to the service product, service delivery and service environment. The service product is the consumer‟s overall perceptions of the service offering and outcome, including any additional services that accompany its delivery. The service delivery refers to the interaction between consumers and the organisation within the service setting. Since services are intangible, variable and inseparable, the communication between provider and customer creates the way the customer perceives the service delivery. The service environment is the internal and external environment. On the internal environment of services there is literature that focuses on the culture of the organisational and the philosophy of management. The external environment, also named the „servicescape‟ by Bitner (1992) reflects the delivery setting of the service. The model implicates that organisations can target three main elements of service quality to improve their overall service quality. The model offers possibilities to improve understanding of Page | 31 SRFHR0609035 how service quality works and suggests the elements on which managers should base service quality research. Due to the model, management would encounter the necessity to develop surveys that reflect these three dimensions, in their specific industries and also to properly assess consumers‟ service quality perceptions. Integrating the perspectives Hierarchical model Source: Brady & Cronin 2001, p.38 Figure 2.6.4: Integrating the perspectives The model also demonstrates that service quality can be made up of three different tiers of dimensions. Tier one: this level deals with the customers‟ overall perceptions of service quality. Tier two: this level reflects the primary dimensions for consumers to evaluate service quality. Tier three: this level identifies the sub-dimensions of individual items that form the primary dimensions in the model. In recognising that service quality may occur at three different levels, this model moves further than the models presented earlier in this chapter to offer a more detailed and complete look at the extent consumer‟s use when evaluating service quality. This model assists managers in understanding how consumers access service quality, as it allows management to view service quality at different levels. This enables management to congregate Page | 32 SRFHR0609035 resources on improving those aspects of service quality where problems are arising. Moreover, because of its three-tiered structure, the model moves further in capturing consumers‟ evaluations of service quality and in providing management with a more detailed and accurate picture of consumers‟ service quality perceptions. Page | 33 SRFHR0609035 Comparing the five models delivers the following results: Table 2.6.1: Comparing the five models Model Advantages Disadvantages Disconfirmation of expectations Takes into reflection expectations as well as actual perceptions The use of expectations in measuring service quality has presently come under a lot of critique in the literature Nordic model (Grönroos) Emphasis on the service outcome and process, that is, what the customer receives from the service and how the service is delivered Does not explicitly consider the impact of the physical environment of the service setting on service quality perceptions. The disconfirmation of expectations model is used as a basis SERVQUAL/gaps Identifies a number of areas important to service quality assessment. Has been widely used in the literature and in practice Uses gap scores as derived from the disconfirmation of expectations model. Does not have an outcome point of reference and does not calculate service outcome perceptions Three-component model Extends Grönroos model to include the physical environment. Has received increasing support in the literature Some three-component models are still based on disconfirmation and are not well tested in the literature. Integrated model Looks at service quality in a new light. Provides a more responsive analysis by looking at the different tiers of service quality dimensions Has not been well tested in the literature as it is a new model. Needs more research to test its usefulness Page | 34 SRFHR0609035 2.7 THE SERVICE QUALITY GAP The SERVQUAL model begins with the basic gap between Perceptions – Expectations. SERVQUAL is a service quality measurement tool that assesses both service perceptions and expectations across a range of different service characteristics. The gap between expectations and perceptions can help managers to analyze where to target and prioritize improvement efforts for the best effects. Source: Customer satisfaction and service quality www.usq.edu.au/course/material/MKT3003/docs/51364mod3b.ppt Figure 2.7.1: The Gaps model of service quality The SERVQUAL-model also known as the “Gaps model” is used for analyzing the Gaps described in figure 2.7.1. Page | 35 SRFHR0609035 Gap 1 Customer‟s expectations versus management‟s idea or perceptions of customer‟s expectations. Managers and employees often have a very internal process-oriented view of their business. It is very difficult to get them out of this comfort zone to let them see things the way the customer does. Some reasons for a possible gap are: lack of a marketing research orientation, inadequate upward communication and too many layers of management. If there is a Gap, the next step is to close the Gap. The first action to perform to close Gap 1 is; learn what customers expect by Listening to your customer. The key activities that a company must accomplish for this goal are: Use research, complaint analysis, customer panels Increase direct interactions between managers and customers Improve upward communications Act on information and insights Gap 2 Management perceptions versus service perceptions: Mismatch between manager‟s expectations of service quality and service quality specifications. To decrease this gap, management must understand exactly what the customer wants. Without this understanding, it will be impossible for management to know whether their expectations are aligned with customer specifications. Possible reasons for this Gap are: inadequate commitment to service quality, a perception of unfeasibility, inadequate task standardization and an absence of goal setting. To close Gap 2 it is mandatory to establish the right service quality standards. Actions to perform to improve Gap 2 are: Top management commitment to providing service quality Set, communicate, and reinforce customer-oriented service standards Establish challenging and realistic service quality goals Train managers to be service quality leaders Be receptive to new ways to deliver service quality Prioritise tasks and Standardise repetitive tasks Gain employee acceptance of goals and priorities Measure performance of service standards and provide regular feedback Reward managers and employees for achievement of quality goals Gap3 Service specifications versus service delivery: poor delivery of service quality. In other words, are standards consistently met? Once the specifications from gap 2 are aligned the next step is to deliver these services according the alignment. Some factors to improve Gap 3 are: - Quality of delivery must be perfected during the interaction with the customer - The employees that are responsible for these actions are referred to as contact personnel Page | 36 SRFHR0609035 - Some reasons for a lack of quality include poor; training, communication and preparation Possible reasons for Gap 3 are: role ambiguity and conflict, poor employee-job fit and poor technology-job fit, inappropriate supervisory control systems, lack of perceived control and lack of teamwork. Action to perform to close Gap 3are: Attract and select the best and right employees Develop and support employees by training, providing appropriate technology & equipment, encourage and build teamwork, empower employees and internal marketing Retain good employees by measure and reward service quality achievements and develop equitable and simple reward systems Gap 4 Service delivery versus external communication: differences between service delivery and external communication with customer. In other words are promises made consistently fulfilled? Some factors to improve Gap 4 are: - Customers are easy influenced by what they hear and see about a company‟s service Communication by Word-of-mouth and advertising are main outlets which customers open their opinions to. This gap can lead to dangerously negative customer perceptions. Possible reasons for Gap 4 are: inadequate horizontal communications and propensity to over promise. Action points for closing Gap 4 are: Seek input from operations personnel on what can be done „Reality‟ advertising by focussing on real employees, real customers, real situations and service characteristics that are important to customers Seek input from employees on advertising and Gain communications between sales, operations and customers Internal marketing programs Ensure consistent standards in multi-site operations Manage customer‟s expectations: What are realistic expectations? Gap 5 This Gap is focusing on the total relationship between the five dimensions and is a result from the 4 other gaps. The discrepancy between customer expectations and their perceptions of the service delivered: differences between expected and perceived quality. As mentioned before expectations are made up of past experience, word-of-mouth and needs/wants of customers. Page | 37 SRFHR0609035 Possible reasons for Gap 5 are: not knowing what customers expect, not selecting the right service standards and designs, not delivering to service standards and not matching performance to promises. SERVQUAL is the tool that calculates “Gap scores” to measure the difference between expectations and perceptions for different aspects of services. It is a useful structure to find out which aspects of a service affect the quality. 2.8 SUMMARY This chapter started with a history of the internet service for fixed and mobile services. It describes the rapid growth of internet connections within 30 years through fixed and mobile lines over the world and in Suriname. Discussions about the importance of customer satisfaction, the indicator for customers purchase intentions and loyalty, especially in a competitive market. In this competitive world products are often delivered with a specific quality of service which makes the product technically good. This technical quality of service will refer to a set of key performance indicators. The customer today is not satisfied with only a technically good product. The customer satisfaction will depend on the service quality delivered. The service expected by the customer needs to be equal or less than the service perceived by the customer. That is the way service quality needs to be measured. This chapter also identified the different service quality models and their advantages and disadvantages. It explains the foundation of service quality and discusses briefly the Gaps model and the service quality measuring instrument known as the SERVQUAL by Parasuraman (1985 and 1988) which will be used to give answers to the objectives and research questions from chapter one. Page | 38 SRFHR0609035 CHAPTER 3: METHODOLOGY 3.1 INTRODUCTIONS In this chapter I will look at the method used to answer the research questions mentioned in chapter one. This chapter also describes the problem statement, the research objectives, the research questions, the methodological considerations and hypothesis. And a discussion of the survey used in this research and the sample selection. Data collection and data analysis will be presented in the next chapter. The method used in this study to measure the quality from the broadband services from Telesur is the SERVQUAL method from Parasuraman, Zeithaml & Berry (1985, 1988). This method is used to perform a gap analysis of an organization‟s service quality performance against customer service quality needs. For this I used a quantitative approach to find out about the different gaps described in the literature review. 3.2 PROBLEM STATEMENT Telesur, the state owned company, experienced an organizational transformation because of the change from a monopoly to a competitive market. Some of the most important major changes they made in their organization are: • • • • • Telesur is in a process of changing from a technical driven culture into a market and customer oriented culture and structure. Telesur wants to deliver just in time services and full fill the needs of customers in the new competitive environment. The new corporate philosophy is based on: quality and cost control, profit, growth, diversity in services and higher efficiency of the organization. Activities: investments in organizational restructuring, client oriented training, leadership and change training and continuous education of employees. Constantly trying to be familiar with the customer‟s life cycle and try to be ahead of the life cycle. But although Telesur is trying hard to stay the leader in this competitive market, word on the street is that the customer‟s satisfaction is still below expectations from the clients. Telesur employees are often complaining about the fact that customers are constantly complaining about the delivered service as soon as they know that you are an employee of Telesur. The discussion about the customer complains has to be taken seriously because low performance of customer‟s satisfaction will have a negative influence, on the company‟s revenues on the long run. Page | 39 SRFHR0609035 The focus in this thesis is more on the operational departments and will give answer to the problem stated in this thesis: Is there a weakness in customer‟s satisfaction due to lack of: productivity, technical quality of services, problem detection and correction and reliability of the wire and wireless internet services. 3.3 RESEARCH OBJECTIVES The aim of this thesis is to evaluate and measure the service quality from the wired and wireless internet services from Telesur (the state own Telecommunication Company from Suriname) and the customer satisfaction in relation with service quality performance of the technical operation departments. Customer satisfaction is defined as “the levels of service quality performances that meets user‟s expectations”. The objectives of this research can be described as follow: • • • 3.4 Is there a difference between customer‟s expected and perceived service quality? Determine the significant key factors that affect the overall customer satisfaction. Are the results of the customers satisfaction from Telesur weak due to bad service quality performance of the operation departments THEORETICAL FRAMEWORK 3.4.1 The used model for the theoretical framework The model used in this research is the SERVQAUL or Gaps model from Zeithaml, Parasuraman and Berry. This model best fits the objectives because Parasuraman et al (1985) defined service quality as “the global evaluation or attitude of overall excellence of services”. The service quality is the difference between customer‟s expectation and perceptions of services delivered. Parasuraman et al (1985) studied different types of services including telecommunication companies and the results showed that service quality had 5 dimensions: tangibility, reliability, responsiveness, assurance, and empathy. These dimensions would differ in importance from service to service. The 5 dimensions are briefly explained in chapter two. Kothler (1996) defined customer satisfaction as “the level of a person‟s felt state resulting from comparing a product‟s perceived performance or outcome in violation to his/her own expectations”. Customer satisfaction is also defined as the level of service quality performance that meets user‟s expectations. The level of quality service performance is measured by using the SERVQUAL survey tool. The tool deals with a series of questions about the 5 dimensions. Analyzing the results will show the difference in perceptions and expectations between: customers and between manager‟s perception of customers and customers. Page | 40 SRFHR0609035 SERVICE QUALITY • Tangibles • Reliability • Responsiveness • Assurance • Empathy Independent variables CUSTOMER SATISFACTION • Customer’s satisfaction • Technical quality of service • Problem detection and correction Dependent variables Figure 3.4.1.1: The theoretical frame work 3.4.2 Dependent & independent variables Depended variables are the variables the research depends upon. In this thesis there are three depended variables: 1. Customer‟s satisfaction Customer satisfaction is the level of service quality performance that meets user‟s expectations. 2. Technical quality of service The technical quality of service is to guarantee a certain level of performance of the broadband services. 3. Problem detection and correction The independent variables are the variables that affect the dependent variables. The independent variables are: 1. Tangibles Appearance of physical facilities, broadband services, personnel, and communication materials 2. Reliability The ability to perform the promised service dependably and accurately 3. Responsiveness The willingness to help customers and provide prompt service 4. Assurance The knowledge and courtesy of employees and their ability to inspire trust and confidence Page | 41 SRFHR0609035 5. Empathy Caring, individualized attention that the company provides its customers. 3.5 RESEARCH QUESTIONS AND HYPOTHESIS In order to fulfill the research objectives, the following questions on service quality should benefit to the objectives above: a. Is there a difference between customers expected and perceived quality? b. Is there a difference between customer‟s expectations and the manager‟s perceptions of the customer‟s expectations? c. Is there a difference between translation of perceptions into service quality specifications and management perceptions of customer‟s expectations? d. Is there a difference between the customer-driven service designs and standards and the service delivery? e. Is there a difference between external communications to customers and the service? Those questions where assembled after the literature reading and were the basis to set appropriate questions for the questionnaire. The survey is focusing on tangibles, reliability, responsiveness, assurance and empathy. By analyzing the results we will find the answer to the hypothesis. The hypothesis is: The result of the customer‟s satisfaction is still weak due to productivity, technical quality of services, problem detection and solving time and reliability of the wire- and wireless internet services from the operation departments. 3.6 METHODOLOGICAL CONSIDERATIONS 3.6.1 Research philosophy Saunders, Lewis and Thornhill, (2007) underlines that research philosophy, affects the way in which the researcher views the world and underpins the research strategy. The major difference between the positive stance and the interpretivism stance is that in the positive stance stresses on quantifiable observations which lend themselves to statistical analysis and the interpretivism stresses on qualitative observations by which researchers make sense of the social world as humans (Suanders et al, 2007). The positivist position is deduced from natural science and is characterized by the testing of hypothesis developed from existing theory (hence deductive or theory testing) through measurement of observable social realities. In other words; Positivism is based upon values of reason, truth and validity and there is a focus purely on facts, gathered through direct observation and experience and measured empirically using quantitative methods –surveys and experiments and statistical analysis (Blaikie, 1993; Saunders, Lewis and Thornhill, 2007; Eriksson and Page | 42 SRFHR0609035 Kovalainen, 2008; Easterby-Smith, Thorpe and Jackson, 2008; Hatch and Cunliffe, 2006). Hatch and Cunliffe (2006). The SERVQUAL questionnaire has been used to measure the service quality in other industries by well recognized researchers (Babakus and Boller (1992) Teas 1993, Carmen 1990, Cronin and Taylor, 1992). They did this because of the rigorous procedures to generalize the findings through statistical analysis and the ability to repeat the same procedures to test the commonality or agreements of the findings. The SERVQUAL model is a service quality measurement tool that assesses both service perceptions and expectations across a range of different service characteristics. The gap between expectations and perceptions can help managers to analyze where to target and prioritize improvement efforts for the best effects. Hence the objectives are measured driven and the SERVQUAL questionnaire is deployed as the survey instrument of the data collecting method with a positivist philosophical stance. 3.6.2 Research purpose The research that conducts the purpose of this study the best is the survey research. A survey research is a form of the descriptive research. In this type of research there are structured questions to assess peoples beliefs, attitudes, and self-reports of behavior. The method used in a descriptive research is to: decide on a problem, gather facts to refine the problem (narrow definition), develop hypotheses and test the hypotheses. 3.6.3 Research approach This paragraph focuses on the way the main issue of the research is going to be addressed. As mentioned before, this study is a quantitative research. It identified the problem, based on testing a theory, measured with numbers and analyzed using statistical techniques. The aim is to determine the relationship between the independent variables and the dependent variables. The approach is also deductive. A top down approach by having a model, asking research questions, developing a hypotheses and collecting data to evaluated .The research approach is based on the research philosophy. The deduction approach is based on positivism and the induction on interpretivsm (Saunders et al, 2007). In this research the philosophical stance is a positive stance and a deductive approach was taken to represent the findings and conclusions. The deductive approach indicates precisely how the concepts or the variables are to be measured and it distracts hypotheses to explain the causal relationship of variable in relation of the theory by collecting the quantitative data and analyzing them statistically. Page | 43 SRFHR0609035 3.6.4 Research strategy In this research we used the survey strategy. The survey strategy is a popular and common used strategy in business research and is associated with a deductive approach. This strategy allows the collection of large amount of data by using a questionnaire. Questionnaires make data easy to compare but is very time consuming and limited to the number of questions allowed. But yet the survey strategy is found the best to gain a better understanding of the research area because the survey strategy is commonly associated with the deductive approach and allows for collecting quantitative data which can be analyzed quantitatively using descriptive and inferential statistics. The questionnaire used to collect data to analyze the findings with a deductive approach is the SERVQUAL questionnaire. The survey used is the Likert scale. A Likert scale measures the extent to which a person agrees or disagrees with the question. The SERVQUAL questionnaire is used to assess Telesur customer‟s expectations and perceptions regarding the delivered service quality. The expectations and perceptions are measured using a 7 point scale to rate their level of agreement or disagreement. The scales are as followed: Table 3.6.4.1: Likert scale codes Scale Code “1” Strongly disagree “2” Disagree “3” Slightly disagree “4” Neither agree nor disagree Scale Slightly agree Agree Strongly agree Code “5” “6” “7” The higher the score, the better the level of expectation or perception. Service quality scores are the difference between the perception and expectation scores (P – E). The higher the positive score, the higher the level of customer satisfaction. A negative score stands for a disagreement in customer satisfaction. The SERVQUAL questionnaire consists of 49 questions representing the independent variables. 44 questions for the measurement of the expectations and perceptions by a Likert scale and 5 questions for testing the importance weight of the variables by a percentage scale. The sum of the percentages for the 5 variables must be 100%. Page | 44 SRFHR0609035 The code for these independent variables are as followed: Table 3.6.4.2: Coding independent variables Variable Items Expectation Question 1 Question 2 Question 3 Question 4 Code Code E1 E2 E3 E4 Items Perception Question 1 Question 2 Question 3 Question 4 Reliability Question 1 Question 2 Question 3 Question 4 Question 5 E5 E6 E7 E8 E9 Question 1 Question 2 Question 3 Question 4 Question 5 P5 P6 P7 P8 P9 Responsiveness Question 1 Question 2 Question 3 Question 4 E10 E11 E12 E13 Question 1 Question 2 Question 3 Question 4 P10 P11 P12 P13 Assurance Question 1 Question 2 Question 3 Question 4 E14 E15 E16 E17 Question 1 Question 2 Question 3 Question 4 P14 P15 P16 P17 Empathy Question 1 Question 2 Question 3 Question 4 Question 5 E18 E19 E20 E21 E22 Question 1 Question 2 Question 3 Question 4 Question 5 P18 P19 P20 P21 P22 Tangibles P1 P2 P3 P4 The collected data will be used to calculate: - The Gap scores, which is the perception – the expectations. - The unweighted score, which is the sum of the average variable gap divided by 5. - The SERVQUAL score, which is the unweighted score multiplied with the weighted score. Page | 45 SRFHR0609035 3.6.5 The questionnaire The questionnaire consists of 49 questions divided into 3 parts. Part A deals with the service quality expectation from the customers. I wanted to know what the customers expect from the wired and wireless internet service from Telesur. Part B deals with the service quality perception and part C with the importance of the variables. The expectations and perceptions will be tested through 22 questions regarding the independent variables; Tangibles, Reliability, Responsiveness, Assurance and Empathy. The Likert scale measures, as described in section 3.6.4, will extent to which the participant agrees or disagrees with the question. The last part deals with the importance weight of the independent variables. The participant needs to insert the importance of the variables in a percentage scale. The sum of importance scale of the variables must be equal to 100. The distribution of the questionnaires will be available online, through the internet. The focus for the distribution is on: - Young professionals and Students from the University of Suriname. - Telesur management involved in delivering wired and wireless internet services The researcher limited the focus group because he wanted objective answers on the questions and not emotional ones. This group understands the importance of a questionnaire while the average people on the street will simply say that they want the best service and they are receiving the worse. The main objective of the questionnaire is to get accurate data and information from the participant and to identify what the customers think about Telesur‟s product and services. The complete questionnaire can be viewed in appendix 0. 3.6.6 Selection of sample and data collection A researcher must observe some samples of population to develop his conclusions. Sampling has several advantages: lower cost, greater accuracy of result, greater speed of data collection and availability of population selection (Cooper and Schindler, 2003). In this research the developed sample technique was to determine the level of service quality. In this survey the non-probability sampling method is used (non-random). Non probability sampling is a technique in which units of the sample are selected on the basis of personal judgment and convenience. The focus was on young professionals and university students. Because of the language barrier, they will take the questionnaire more serious than other groups. Their reactions will be more reliable than a random sampling. It is expected that the answers are objective and not just influenced by emotions. This is a descriptive research using a quantitative approach. Therefore sample design for this model is usually large. In this study the applied model contains of the dependent and independent variables. This is a total of 8 variables. The target was distributed online and the aim is to get a minimum of 150 complete answered questionnaires. Page | 46 SRFHR0609035 3.7 DATA ANALYSIS 3.7.1 Data analysis methods For this study we used the quantitative methodology. A Likert scale survey method was used to gather customer responses. A Likert scale 12is one of the most widely used approach to scaling responses in survey research where the respondent has to chose on a scale between strongly disagree and strongly agree. The collected data is ordinal: it has an inherent sequence, this means that the difference between strongly agree and agree is not the same as the difference between agree and neither agree nor disagree. The descriptive statistical methods were employed to analyze the data, particularly by deriving the minimum, maximum, median and mode of the study. The difference between the perception and the expectation is addressed as being the gap scores. And is used to calculate the SERVQUAL score. (The unweighted score multiplied with the weight score). Additional statistical analyses were performed; including analysis of the Wilcoxon signed rang test to compare the 22 median scores for the expectations and perceptions statements and the 5 independent variables to explain the significant difference in the variables. These tests are the non- parametric equivalent of the independent t-test. All these techniques were done by using SPSS (statistical package for social science) version 19. 3.7.2 Reliability and validity A Reliability test will answer to the consideration whether the procedures of data collection and analysis will generate the same results on other occasions or will other observers make similar observations and arrive at the same conclusions from the raw data. (Easter by-smith et al (2002); cited by Saunders et al 2007:149) Therefore, Cronbach‟s Alpha test was used for the reliability test. The results of the Cronbach‟s Alph13a can be interpreted as follow; Table 3.7.2.1: Cronbach‟s alpha score interpretation Cronbach’s Alpha α > 0.9 0.9 > α > 0.8 0.8 > α > 0.7 Internal consistency Excellent Good Acceptable Cronbach’s Alpha 0.7 > α > 0.6 0.6 > α > 0.5 0.5 > α Internal consistency Questionable Poor unacceptable Validity is “the degree to which a measure assesses what it purports to measure” (Fink, 2005). Validity was tested with the KMO14 (Kaiser-Meyer-Olkin) and Bartlett's Test. The KaiserMeyer-Olkin measure is a statistic that indicates the proportion of variance in the variables that might be caused by underlying factors. High values, close to 1.0, indicate that a factor analysis 12 Evalution Cookbook, Nora Mogey coordinator LTDI, Heriot- Watt university 13 George, D., & Mallery, P. (2003). SPSS for Windows step by step: A simple guide and reference. 11.0 update (4th ed.). Boston: Allyn & Bacon 14 Help index SPSS19 Page | 47 SRFHR0609035 may be useful. A value lower than 0.5 won‟t be very useful. The Bartlett‟s test of sphericity, test the hypothesis that the correlation matrix is an identity matrix, which would indicate that the variables are unrelated and therefore unsuitable for structure detection. Small values, less than 0.05 of the significance level indicate that a factor analysis may be useful with the data 3.8 Summary This chapter discusses the selected methodology of the research. The inputs for the chosen selection are the problem statement, hypothesis, research question, research objectives, dependent and independent variables. The objectives are measured driven and the SERVQUAL questionnaire is deployed as the survey instrument of the data collecting method with a positivist philosophical stance. The research purpose is a survey research. The research is using a quantitative approach and is based on the research philosophy. The deduction approach is based on positivism and the induction on interpretivsm. The survey strategy is a popular and common used strategy in business research and is associated with a deductive approach. This strategy allows the collection of large amount of data by using a questionnaire. The questionnaire is an online questionnaire and consists of 49 questions. The questions deal with the service quality expectation, service quality perception. For the survey, the nonprobability sampling method is used (non-random) for a higher reliability. The next chapter will analyze the findings of the study. Page | 48 SRFHR0609035 CHAPTER 4: DATA ANALYSIS, FINDINGS AND DISCUSSION 4.1 INTRODUCTION In this chapter the results that have been collected through quantitative survey will be presented. The first part will present the result of the customer‟s perceptions and expectations of service quality from Telesur. After that the findings from Telesur‟s management team regarding the expectations from the customers and their perception regarding the service quality. The survey model used is the SERVQUAL Gap model from Parasuraman, Zeithaml and Berry (1988) and had been presented online to the participants. The survey results will we used to analyze the research questions and variables used in this survey. The reliability test was conducted by the Cronbach‟s Alpha test and the validity was tested with the KMO and Bartlett's Test. 4.2 Description of sample The data was collected through an online survey and analyzed by the SPSS software. The survey was sent by email to university students, young professionals in Paramaribo from different companies and to Telesur management, front and back office personal. As discussed before, at least 150 valid questionnaires are needed for doing this research. The respondent‟s frequency of the customer survey equals 34% and the frequency of Telesur personal equals 41%. It took the respondent approximately 18 minutes to complete this survey. Table 4.2.1a: Respondent‟s results Survey Respondents 153 Customers 30 Telesur managers Percentage of total requests 34% 41% The results of the customer‟s survey are displayed in Appendix 1 and from the Telesur manager‟s survey in Appendix 2. The survey consists of 44 questions which could be rated on a 7-point scale ranging from strongly agree (7) to strongly disagree (1) and 5 questions from which the participants needs to rate the importance of independent variables on a scale from 0 to 100 %.It took almost 6 weeks to collect 153 valid responses for the customer survey. The daily responses are presented in chart 4.2.1. Chart 4.2.1: Daily responses of the customer survey Page | 49 SRFHR0609035 4.3 Descriptive analyses The descriptive analysis of the median scores was run using SPSS 19 on the questionnaire data for expectations and perceptions. An online survey using docs.google.com has been conducted for the purpose of collecting data. The purpose of the survey is to study the customer‟s and Telesur manager‟s expectations and perceptions regarding de independent variables. The independent variables affect the dependent variables. The independent variables are scored based on a seven-point scale, ranging from “strongly disagree = 1” to “strongly agree = 7”, as the un-weighted score and weighted score. The ranging between 1 and 7 are: 2 = disagree; 3 = slightly disagree; 4= neither agree nor disagree; 5 = slightly agree and 6 = agree. The weighted score will represent the importance of the variables to the customer. The total score of the weighted score equals 100. The questionnaire contains of 44 questions regarding expectations and perceptions of the variables. The relationship of the 5 independent variables and the questions are: Independent variables Tangibles Reliability Responsiveness Assurance Empathy Expectations Perceptions Question 1 -4 Question 5 – 9 Question 10 – 13 Question 14 – 17 Question 18 – 22 Question 23 – 26 Question 27 – 32 Question 33 – 36 Question 37 – 40 Question 41 – 44 Table 4.3.1a and table 4.3.1b present the minimum, maximum, median and mode for the responses on expectations and perceptions of the dimension Tangibles from the customer‟s survey. The median can be calculated by arranging all the scores from the lowest to the highest value. The median is the middle one. The mode is the value that occurs the most out of all the surveys per item. For Likert scale surveys it is common to use the median and not the mode. Tangibles are the appearance of physical facilities, broadband services, personnel, and communication materials. Table 4.3.1a: Expectation tangibles for descriptive statistics from the customer survey Descriptive statistics (N=153) expectations Tangibles Min Max Median 7 7.00 E1) Customers expect that a company like Telesur must have 1 the latest broadband services. 3 7 6.00 E2) The physical facilities at a company like Telesur must be visual attractive 1 7 7.00 E3) Employees at Telesur must be neat in appearance. 4 7 7.00 E4) Materials associated with the service (such product information, advertisement, etc.) must have a good visual appearance and must be up to date at Telesur's facilities Mode 7.00 7.00 7.00 7.00 Page | 50 SRFHR0609035 Table 4.3.1b: Perception tangibles for descriptive statistics from the customer survey Descriptive statistics (N=153) perceptions Tangibles Min Max Median 1 7 4.00 P1) Telesur has the latest broadband services 1 7 5.00 P2) The physical facilities at Telesur are visually attractive. 1 7 5.00 P3) Employees from Telesur have a neat appearance. 1 7 5.00 P4) Materials associated with the service(such product information, advertisement, etc.) have a good visual appearance and are up to date at Telesur's facilities Mode 4.00 5.00 5.00 5.00 The medians for the tangibles are: 7.00 for the Expectations and 5.00 for the perception. There is also a minimum score of “1” for (E1) and (E3) which means that the customer totally disagrees with this expectation statement. The same survey was done within Telesur. The target group consisted of the managers, front and back office personal involved in the fixed and wireless internet services. The results of the survey regarding the minimum, maximum, median and mode for the tangibles are presented in table 4.3.1c Table 4.3.1.c: Expectations and perception tangibles for descriptive statistics from the Telesur manager‟s survey (N = 30) Expectation Min Max Median Mode Perception Min Max Median Mode 4 7 7.00 7.00 P1 2 7 4.00 4.00 E1) 4 7 7.00 7.00 P2 1 7 5.00 5.00 E2) 4 7 7.00 7.00 P3 3 7 5.00 6.00 E3) 4 7 7.00 7.00 P4 3 7 5.00 5.00 E4) The median for the tangibles are: 7.00 for the expectations and 5.00 for the perception. The largest range between minimum and maximum is 3.00 for the expectations and 6.00 for the perceptions. Table 4.3.2a and table 4.3.2b present the minimum, maximum, median and mode for the responses on expectations and perceptions of the reliability dimension from the customer‟s survey. Reliability is the ability to perform the promised service dependably and accurately. Page | 51 SRFHR0609035 Table 4.3.2a: Expectation reliability for descriptive statistics from the customer survey Descriptive statistics (N=153) expectations Reliability Min Max Mean 1 7 7.00 E5) When Telesur promises to do something by a certain time, they must do so. 2 7 7.00 E6) When a customer has a technical problem, Telesur most show a sincere interest in solving it 1 7 6.00 E7) Telesur must perform the service right the first time 7 7.00 E8) Telesur must provide the service at the time they promised 4 with an acceptable quality of services 2 7 6.00 E9) Telesur must deliver services completely free of errors Table 4.3.2b: Perception reliability for descriptive statistics from the customer survey Descriptive statistics (N=153) perceptions Reliability Min Max Median 1 7 4.00 P5) Telesur as your wired and wireless internet provider delivers their services as promised by a certain time. 1 7 4.00 P6) When you have a problem, Telesur show's a sincere interest in solving it 1 7 4.00 P7) Telesur performs the service right the first time 1 7 4.00 P8) Telesur provides the service at the time they promised with an acceptable quality of service 1 7 3.00 P9) Telesur delivers you services completely free of errors Mode 7.00 7.00 7.00 7.00 7.00 Mode 4.00 4.00 4.00 5.00 1.00 The medians for the reliability are: 7.00 for the expectations and 4.00 for the perception. The largest range between minimum and maximum is 6.00 for the expectations and 6.00 for the perceptions. The minimum scores for the expectation of the reliability dimension is “1” for E(5) and E(7). The results of the survey regarding the minimum, maximum, median and mode for the reliability of the Telesur manager‟s survey are presented in table 4.3.2c Table 4.3.2c: Expectation and perception reliability for descriptive statistics from the Telesur manager‟s survey Expectation Min Max Median Mode Perception Min Max Median Mode 6 7 7.00 7.00 P5) 1 7 4.00 4.00 E5) 6 7 7.00 7.00 P6) 2 7 4.00 4.00 E6) 4 7 7.00 7.00 P7) 1 7 4.00 4.00 E7) 4 7 7.00 7.00 P8) 1 7 4.00 4.00 E8) 4 7 6.00 6.00 P9) 1 7 4.00 4.00 E9) Page | 52 SRFHR0609035 The median for the reliability are: 7.00 for the expectations and 4.00 for the perception. The largest range between minimum and maximum is 3.00 for the expectations and 6.00 for the perceptions. Table 4.3.3a and table 4.3.3b present the minimum, maximum, median and mode responses on expectations and perceptions of the responsiveness dimension from the customer‟s survey. Responsiveness is the willingness to help customers and provide services. Table 4.3.3a: Expectation responsiveness for descriptive statistics from the customer survey Descriptive statistics (N=153) expectations Responsiveness Min Max Median Mode 1 7 7.00 7.00 E10) Telesur must tell customers exactly when maintenance will be performed. 1 7 7.00 7.00 E11) Telesur employees must always give prompt service to customers 5 7 7.00 7.00 E12) Employees of Telesur must always be willing to help customers 7 7.00 7.00 E13) Employees of Telesur must never be too busy to respond 3 to customers requests Table 4.3.3b: Perception responsiveness for descriptive statistics from the customer survey Descriptive statistics (N=153) perceptions Responsiveness Min Max Median 1 7 4.00 P10) Telesur always inform you as customer, when a maintenance will be performed 1 7 4.00 P11) Telesur employees always give you as a customer, prompt services 1 7 4.00 P12) Telesur employees are always willing to help you 1 7 4.00 P13) Telesur employees are never be too busy to respond to your requests Mode 4.00 3.00 5.00 4.00 The median for the responsiveness are: 7.00 for the expectations and 4.00 for the perception. The largest range between minimum and maximum is 6.00 for the expectations and 6.00 for the perceptions. The minimum scores for the expectation of the responsiveness is “1”. For E(10) and E(11) The results of the survey regarding the minimum, maximum, median and mode for the responsiveness for the Telesur manager‟s survey are presented in table 4.3.2c Page | 53 SRFHR0609035 Table 4.3.3.c: Expectation and perception responsiveness for descriptive statistics from the Telesur manager‟s survey Expectation Min Max Median Mode Perception Min Max Median Mode 4 7 7.00 7.00 P10) 1 7 5.00 5.00 E10) 4 7 6.00 6.00 P11) 1 7 4.00 3.00 E11) 4 7 7.00 7.00 P12) 1 7 4.00 4.00 E12) 4 7 7.00 7.00 P13) 2 7 4.00 4.00 E13) The median for the responsiveness are: 7.00 for the expectations and 4.00 for the perception. The largest range between minimum and maximum is 3.00 for the expectations and 6.00 for the perceptions. Table 4.3.4a and table 4.3.4b present the minimum, maximum, median and mode for the responses on expectations and perceptions of the assurance dimension from the customer‟s survey. Assurance is knowledge and courtesy of employees and their ability to inspire trust and confidence from customers. Table 4.3.4a: Expectation assurance for descriptive statistics from the customer survey Descriptive statistics (N=153) expectations Assurance Min Max Median 3 7 7.00 E14) The behavior of employees from Telesur must inspire confidence in customers. 7 7.00 E15) Customers from Telesur must feel safe in doing business 4 with them 7 7.00 E16) Employees of Telesur must always be consistently polite 3 to customers 7 6.00 E17) Employees of Telesur must always have the knowledge 3 to answer customer’s questions Table 4.3.4b: Perception assurance for descriptive statistics from the customer survey Descriptive statistics (N=153) perceptions Assurance Min Max Median 1 7 4.00 P14) The behavior of Telesur employees inspires confidence in you 1 7 5.00 P15) You as a Customer from Telesur feel safe in doing business with Telesur 1 7 5.00 P16) Telesur employees are always consistently polite to you as their customer. 1 7 4.00 P17) Telesur employees always have the knowledge to answer your questions Mode 7.00 7.00 7.00 7.00 Mode 5.00 5.00 5.00 5.00 Page | 54 SRFHR0609035 The median for the assurance is: 7.00 for the expectations and 4.50 for the perception. The largest range between minimum and maximum is 4.00 for the expectations and 6.00 for the perceptions. The results of the survey regarding the minimum, maximum, median and standard deviation for the assurance for the Telesur manager‟s survey are presented in table 4.3.2c. Table 4.3.4.c: Expectation and perception assurance for descriptive statistics from the Telesur manager‟s survey Expectation Min Max Median Mode Perception Min Max Median Mode 4 7 7.00 7.00 P14) 2 7 4.00 5.00 E14) 4 7 7.00 7.00 P15) 2 7 5.00 4.00 E15) 4 7 7.00 7.00 P16) 3 7 5.00 4.00 E16) 2 7 6.00 6.00 P17) 1 7 4.00 4.00 E17) The median for the assurance are: 7.00 for the expectations and 4.50 for the perception. The largest range between minimum and maximum is 5.00 for the expectations and 6.00 for the perceptions. Table 4.3.5a and table 4.3.5b present the minimum, maximum, median and standard deviation for the empathy on expectations and perceptions of the responsiveness dimension from the customer‟s survey. Empathy is the Caring, individualized attention that Telesur provides its customers. Table 4.3.5a: Expectation empathy for descriptive statistics from the customer survey Descriptive statistics (N=153) expectations Empathy Min Max Median 2 7 6.00 E18) Telesur must give customers individual attention. 1 7 6.00 E19) Telesur must have operating hours convenient to all their customers 1 7 6.00 E20) Telesur must have employees who give customers personal attention. 4 7 7.00 E21) Telesur must have their customer’s best interest at heart. 4 7 7.00 E22) The employees of Telesur must understand the specific needs of their customers. Mode 7.00 7.00 7.00 7.00 7.00 Page | 55 SRFHR0609035 Table 4.3.5b: Perception empathy for descriptive statistics from the customer survey Descriptive statistics (N=153) perceptions Empathy Min Max Median 1 7 4.00 P18) Telesur always gives you individual attention. 7 5.00 P19) The operating hours from Telesur are convenient to you 1 1 7 4.00 P20) Telesur employees always give you personal attention. 1 7 4.00 P21) Telesur always has your best interest at heart 7 4.00 P22) Telesur employees always understand the specific needs 1 of you as their customer. Mode 4.00 5.00 5.00 5.00 5.00 The median for the empathy is: 6.00 for the expectations and 4.00 for the perception. The largest range between minimum and maximum is 6.00 for the expectations and 6.00 for the perceptions. The results of the survey regarding the minimum, maximum, median and standard deviation for the empathy for the Telesur manager‟s survey are presented in table 4.3.3c. Table 4.3.5.c: Expectation and perception empathy for descriptive statistics from the Telesur manager‟s survey Expectation Min Max Median Mode Perception Min Max Median Mode 4 7 6.00 6.00 P18) 1 7 4.00 4.00 E18) 3 7 6.00 6.00 P19) 3 7 6.00 6.00 E19) 4 7 6.00 7.00 P20) 1 7 4.00 4.00 E20) 4 7 7.00 7.00 P21) 1 7 4.50 4.00 E21) 4 7 7.00 7.00 P22) 1 7 4.00 4.00 E22) The median for the empathy is: 6.00 for the expectations and 4.00 for the perception. The largest range between minimum and maximum is 4.00 for the expectations and 6.00 for the perceptions. Most of the median results for the 22 items of the expectations are 7.00 (7 is ranked as strongly agreed with the statement). The other items have a median score equal to 6.00 (6 is ranked as agreed with the statement). The six items ranged as “agreed with the statement” are: - E2: The physical facilities at a company like Telesur must be visual attractive. E2 is part of the dimension Tangibles E7: Telesur must perform the service right the first time. E7 is part of the dimension Reliability E9: Telesur must deliver services completely free of errors. E9 is part of the dimension Reliability. E17: Employees of Telesur must always have the knowledge to answer customer‟s questions. E17 is part of the dimension Assurance E18: Telesur must give customers individual attention. E18 is part of the dimension Empathy Page | 56 SRFHR0609035 - E19: Telesur must have operating hours convenient to all their customers. E19 is part of the dimension Empathy E20: Telesur must have employees who give customers personal attention. E20 is part of the dimension Empathy The results of the median for the 22 items of the perceptions are different from the expectations. The highest score is 5.00 points. 15 items have a median score from 4.00 which means they neither agree nor disagree with the statement. Six items scored 5.00 points which means slightly agree and one with a score of 3.00 which means slightly disagree. The six items with a 5.00 point score are: - - P2: The physical facilities at Telesur are visually attractive. This item belongs to the dimension Tangibles P3: Employees from Telesur have a neat appearance. This item belongs to the dimension Tangibles P4: Materials associated with the service (such product information, advertisement, etc.) have a good visual appearance and are up to date at Telesur's facilities. This item belongs to the dimension Tangibles P15: You as a Customer from Telesur feel safe in doing business with Telesur this item belongs to the dimension Assurance P16: Telesur employees are always consistently polite to you as their customer. This item belongs to the dimension Assurance P19: The operating hours from Telesur are convenient to you. This item belongs to the dimension Empathy P9 is the item with the lowest score of 3.00 points; this score is ranged as “slightly disagree”. P9: Telesur delivers you services completely free of errors. This item belongs to the dimension Reliability. The expectations scores of the Telesur manager survey can be summarized as follow; 16 of the 22 items were scored as “strongly agree” with the statement, and 6 were scored as “agree” with the statement. The six items scored as “agree” (the ranking for this score is 6) are: - E9: Telesur must deliver services completely free of errors. E9 is part of the dimension Reliability E11: Telesur employees must always give prompt service to customers. E11 is part of the dimension Responsiveness E17: Employees of Telesur must always have the knowledge to answer customer‟s questions. E17 is part of the dimension Assurance Page | 57 SRFHR0609035 - E18: Telesur must give customers individual attention. E18 is part of the dimension Empathy E19: Telesur must have operating hours convenient to all their customers. E19 is part of the dimension Empathy E20: Telesur must have employees who give customers personal attention. E20 is part of the dimension Empathy The perceptions scores of the Telesur manager survey is different from the expectations and can be summarized as follow; the highest score is 6 which means agree with the statement. The score with the highest frequency is 4 which mean they neither agree nor disagree with the statement and the rest of the statements are scored as slightly agreed. (The ranking for this score is 5) The item with the highest score is P19: The operating hours from Telesur are convenient to you. This item belongs to the dimension Empathy. The 7 items with a median score of 5, ranking as slightly agree, are: - - 4.4 P2: The physical facilities at Telesur are visually attractive. P2 is part of the dimension Tangibles P3: Employees from Telesur have a neat appearance. P3 is part of the dimension Tangibles P4: Materials associated with the service (such product information, advertisement, etc.) have a good visual appearance and are up to date at Telesur's facilities. P4 is part of the dimension Tangibles P10: Telesur always inform you as customer, when a maintenance will be performed. P10 is part of the dimension Responsiveness P15: You as a Customer from Telesur feel safe in doing business with Telesur. P15 is part of the dimension Assurance P16: Telesur employees are always consistently polite to you as their customer. P16 is part of the dimension Assurance P21: Telesur always has your best interest at heart. P22 is part of the dimension Empathy COMPUTING THE SERVQUAL SCORES 4.4.1 The Wilcoxon signed-rank test of all 22 statements The Wilcoxon signed-rank test was done using the SPSS version 19 program. The test works in a fairly similar way to the dependent t-test in that it is based on the differences between scores in the two compared conditions. The Wilcoxon signed-rank test in table 4.4.1.1a compares the 22 median scores from the expectation and perception. Page | 58 SRFHR0609035 Table 4.4.1.1a: The Wilcoxon signed-rank test of the 22 statements Ranks Median_Per Median_Exp Negative Ranks Positive Ranks Ties Total a. Median_Per < Median_Exp; c. Median_Per = Median_Exp N 138a 1b Mean Rank 70.49 Sum of Ranks 9728.00 2.00 2.00 c 14 153 b. Median_Per > Median_Exp; The majority of the ranks are the negative ranks which mean that the expectations are in most cases higher than the perceptions. Out of 153 medians 148 have a higher expectation than the perception and 5 are tied. Table 4.4.1.1b: The Wilcoxon signed ranks test Test Statisticsb Z Asymp. Sig. (2-tailed) Median_Per Median_Exp -10.253a .000 a. Based on positive ranks. b. Wilcoxon Signed Ranks Test Because the majority of the ranks are negatively based, the test in table 4.4.1.1b is based on the positive ranks. The significant value is 0.000 which is less than 0.05. This means that there is a significant difference in the different variables. 4.4.2 The Wilcoxon signed-rank test of the 5 dimensions This Wilcoxon signed-rank test was also done by using the SPSS version 19 program. In table 4.4.2.1a the results of The Wilcoxon signed-rank test, comparing the five mean dimension scores for expectation and perception are presented. Page | 59 SRFHR0609035 Table 4.4.2.1a: The Wilcoxon signed-rank test of the 5 dimensions Ranks Median N Tangibles Expectations Tangibles Perceptions Negative Ranks Positive Ranks Responsiveness Expectations Responsiveness Perceptions Assurance Expectations Assurance Perceptions Perceptions a. b. c. d. e. f. g. h. i. j. k. l. m. n. o. 9502.00 45.60 228.00 139d 71.87 9990.00 e 10.50 21.00 139g 72.92 10136.50 h 5.50 16.50 5 Total 153 2 f Ties 12 Total 153 Negative Ranks Positive Ranks 3 i Ties 11 Total 153 Negative Ranks 140j 72.23 10112.50 k 20.25 40.50 123m 65.63 8072.00 n 14.00 56.00 Positive Ranks Empathy Expectations Empathy 70.91 b 14c Positive Ranks Sum of Ranks 134a Ties Reliability Expectations Reliability Negative Ranks Perceptions Mean Rank 2 l Ties 11 Total 153 Negative Ranks Positive Ranks 4 Ties 26o Total 153 Median Tangibles Perception < Median Tangibles Expectation Median Tangibles Perception > Median Tangibles Expectation Median Tangibles Perception = Median Tangibles Expectation Median Reliability Perception < Median Reliability Expectation Median Reliability Perception > Median Reliability Expectation Median Reliability Perception = Median Reliability Expectation Median Responsiveness Perception < Median Responsiveness Expectation Median Responsiveness Perception > Median Responsiveness Expectation Median Responsiveness Perception < Median Responsiveness Expectation Median Assurance Perception < Median Assurance Expectation Median Assurance Perception > Median Assurance Expectation Median Assurance Perception = Median Assurance Expectation Median Empathy Perception < Median Empathy Expectation Median Empathy Perception > Median Empathy Expectation Median Empathy Perception = Median Empathy Expectation Page | 60 SRFHR0609035 The majority of the ranks are the negative ranks which mean that the expectations are in most cases higher than the perceptions. Table 4.4.2.1 b: The Wilcoxon ranks test Test Statisticsb Z Asymp. Sig. Median Median Median Median Tangibles perc Reliability perc Responsiveness perc Assurance perc Median Empathy Median Median Median Responsiveness Median perc Median tangibles Exp Reliability Exp Exp Assurance Exp Empathy Exp -9.773a -10.298a -10.317a -10.274a -9.696a .000 .000 .000 .000 .000 (2-tailed) a. Based on positive ranks. b. Wilcoxon Signed Ranks Test Because the majority of the ranks are negatively based, the test in table 4.4.2.1b is based on the positive ranks. The significant value is 0.000 which is less than 0.05. This means that there is a significant difference in the different variables. 4.4.3 The median and Gap scores In the below table, table 4.4.3.1, the service quality scores or presented. The table discusses 44 questions and calculates the Gaps between Perception and expectation using Microsoft Excel. The SERVQUAL score or Gap score equals the median perception score minus the median expectation score. Page | 61 SRFHR0609035 Table 4.4.3.1a:The SERVQUAL scores of 153 customer questionnaire responses Median Median Tangibles Expectations Perceptions (Appearance of physical facilities, broadband services, (E) (P) personnel, and communication materials.) E1) Customers expect a company like Telesur must 7.00 4.00 have the latest broadband services. P1) Telesur has the latest broadband services E2) The physical facilities at a company like Telesur 6.00 5.00 must be visual attractive. P2) The physical facilities at Telesur are visually attractive. E3) Employees at Telesur must be neat in appearance. 7.00 5.00 P3) Employees from Telesur have a neat appearance. E4) Materials associated with the service (such product 7.00 5.00 information, advertisement, etc.) must have a good visual appearance and must be up to date at Telesur's facilities. P4) Materials associated with the service (such product information, advertisement, etc.) have a good visual appearance and are up to date at Telesur's facilities. Median Tangibles SERVQUAL score 7.00 5.00 Reliability (Ability to perform the promised service dependably and accurately.) E5) When Telesur promises to do something by a certain time, they must do so. P5) Telesur as your wired and wireless internet provider delivers their services as promised by a certain time. E6) When a customer has a technical problem, Telesur most show a sincere interest in solving it P6) When you have a problem, Telesur show's a sincere interest in solving it E7) Telesur must perform the service right the first time P7) Telesur performs the service right the first time E8) Telesur must provide the service at the time they promised with an acceptable quality of services P8) Telesur provides the service at the time they promised with an acceptable quality of service E9) Telesur must deliver services completely free of errors P9) Telesur delivers you services completely free of errors Median Reliability SERVQUAL score Gap Score (P – E) -3.00 -1.00 -2.00 -2.00 -2.00 Median Expectations (E) Median Perceptions (P) Gap Score (P – E) 7.00 4.00 -3.00 7.00 4.00 -3.00 6.00 4.00 -2.00 7.00 4.00 -3.00 6.00 3.00 -3.00 7.00 4.00 -3.00 Page | 62 SRFHR0609035 Responsiveness (Willingness to help customers and provide services) Median Expectations (E) Median Perceptions (P) Gap Score (P – E) E10) Telesur must tell customers exactly when maintenance will be performed P10) Telesur always informs you as customer, when a maintenance will be performed E11) Telesur employees must always give prompt service to customers P11) Telesur employees always give you as a customer, prompt services. E12) Employees of Telesur must always be willing to help customers. P12) Telesur employees are always willing to help you E13) Employees of Telesur must never be too busy to respond to customers requests P13) Telesur employees are never be too busy to respond to your requests Median Responsiveness SERVQUAL score Assurance (Knowledge and courtesy of employees and their ability to inspire trust and confidence) E14) The behavior of employees from Telesur must inspire confidence in customers. P14) The behavior of Telesur employees inspires confidence in you E15) Customers from Telesur must feel safe in doing business with them P15) You as a Customer from Telesur feel safe in doing business with Telesur E16) Employees of Telesur must always be consistently polite to customers P16) Telesur employees are always consistently polite to you as their customer. E17) Employees of Telesur must always have the knowledge to answer customer‟s questions P17) Telesur employees always have the knowledge to answer your questions Median Assurance SERVQUAL score 7.00 4.00 -3.00 700 4.00 -3.00 7.00 4.00 -3.00 7.00 4.00 -3.00 7.00 4.00 -3.00 Median Expectations (E) Median Perceptions (P) 7.00 4.00 -3.00 7.00 5.00 -2.00 7.00 5.00 -2.00 6.00 4.00 -2.00 7.00 4.50 -2.00 Gap Score (P – E) Page | 63 SRFHR0609035 Empathy (Caring, individualized attention that Telesur provides its customers.) E18) Telesur must give customers individual attention. P18) Telesur always gives you individual attention. E19) Telesur must have operating hours convenient to all their customers P19) The operating hours from Telesur are convenient to you E20) Telesur must have employees who give customers personal attention. P20) Telesur employees always give you personal attention. E21) Telesur must have their customer‟s best interest at heart. P21) Telesur always has your best interest at heart E22) The employees of Telesur must understand the specific needs of their customers. P22) Telesur employees always understand the specific needs of you as their customer. Median Empathy SERVQUAL score Median Expectations (E) Median Perceptions (P) Gap Score (P – E) 6.00 4.00 -2.00 6.00 5.00 -1.00 6.00 4.00 -2.00 7.00 4.00 -3.00 7.00 4.00 -3.00 6.00 4.00 -2.00 The gaps presented in table 4.4.3.1a are calculated according the SERVQUAL score calculation from Parasuraman et al 1988). SERVQUAL score = Perception – Expectation. The level of the service quality depends on the score. The higher the positive score the better the Service Quality level. The results from table 4.4.3.1a show that all the 22 items has negative scores. This means that none of the 22 items, reaches the customers‟ expectations level. The lowest negative gap = “-1.00” and is registered to “E2/P2”; “from the independent variable Tangibles and “E19/P19” from the independent variable Empathy. The highest negative gap is scored by 54% of the statements and has a score of “-3.00”, 36% of the statement has a score of “-2.00”. The independent variables Tangibles, Assurance and Empathy have a gap score equal to “-2.00” and the independent variables Reliability and Responsiveness have a gap score equal to “-3.00”. Page | 64 SRFHR0609035 The SERVQUAL score of the Telesur manager‟s questionnaire responses are presented in the Table 4.4.3.1b. Table 4.4.3.1b: The SERVQUAL scores of 30 Telesur manager questionnaire responses Dimension Expectation Score Dimension Perception Score Gap score Tangibles Tangibles 7.00 P1 4.00 -3.00 E1 7.00 P2 4.50 -2.50 E2 7.00 P3 5.00 -2.00 E3 7.00 P4 5.00 -2.00 E4 Median 7.00 4.75 -2.25 Reliability Expectation Score Dimension Perception Gap score Score 7.00 P5 4.00 -3.00 E5 7.00 P6 4.00 -3.00 E6 7.00 P7 4.00 -3.00 E7 7.00 P8 4.00 -3.00 E8 6.00 P9 4.00 -2.00 E9 Median 7.00 4.00 -3.00 Responsiveness Expectation Score Responsiveness Perception Gap score Score 7.00 P10 5.00 -2.00 E10 6.00 P11 4.00 -2.00 E11 7.00 P12 4.00 -3.00 E12 7.00 P13 4.00 -3.00 E13 Median 7.00 4.00 -2.50 Assurance Expectation Score Assurance Perception Gap score Score 7.00 P14 4.00 -3.00 E14 7.00 P15 5.00 -2.00 E15 7.00 P16 5.00 -2.00 E16 6.00 P17 4.00 -2.00 E17 Median 7.00 4.50 -2.00 Empathy Expectation Score Empathy Perception Gap score Score 6.00 P18 4.00 -2.00 E18 6.00 P19 6.00 0.00 E19 6.00 P20 4.00 -2.00 E20 7.00 P21 4.50 -2.50 E21 7.00 P22 4.00 -3.00 E22 Median 6.00 4.00 -2.00 Page | 65 SRFHR0609035 The results from table 4.4.3.1b demonstrate that all the 21 items have negative scores. This means, that only one statement reaches the customers‟ expectations level. This statement is “E19/P19” the gap score is “0”. Statement E19 is “Telesur must have operating hours convenient to all their customer’s“. The highest negative gap is “-3.00”, scored by 50% of statements. The 2 gaps of “2.5” are counted as being “-3.00”. 10% of the statements has scored “-2.00”. The independent variables: Tangibles, Assurance and Empathy have a gap score equal to “-2.00” and the independent variables Reliability and Responsiveness have a gap score equal to “-3.00”. Actually the independent variable Tangibles has a score of “-2.25”, but in this research “2.25” does not differ from “2.00”. For analyzing, the focus is on the numbers of the Likert scale which are whole numbers. The dimension gap scores for the Customer and the Telesur manager‟s survey is represented in chart 4.4.3.1a and 4.4.3.1b. Gap Score Gap score of the dimensions -0.5000 -1.0000 -1.5000 1 2 3 4 Tangible 5 6 7 8 9 Reliability 10 11 12 13 Responsiveness 14 15 16 17 Assurance 18 19 20 21 22 Empathy 0.0000 -2.0000 -2.5000 -3.0000 -3.5000 Chart 4.4.3.1a: The Gap score of the dimensions for the customer survey Page | 66 SRFHR0609035 Gap score of the dimensions Gap Score -0.5000 -1.0000 -1.5000 1 2 3 4 Tangible 5 6 7 8 9 Reliability 10 11 12 13 Responsiveness 14 15 16 17 Assurance 18 19 20 21 22 Empathy 0.0000 -2.0000 -2.5000 -3.0000 -3.5000 Chart 4.4.3.1b: The Gap score of the dimensions for the Telesur manager survey The dimension gap for both survey‟s are identical as represented in chart 4.4.3.2 Mean Score SERVQUAL dimension Gap for the Customer & Telesur Manager survey 8.0000 7.0000 6.0000 5.0000 4.0000 3.0000 2.0000 1.0000 0.0000 median tangibles median reliability median responsivene ss median assurance median empathy Mean Expectations 7.0000 7.0000 7.0000 7.0000 6.0000 Mean Perceptions 5.0000 4.0000 4.0000 4.5000 4.0000 Chart 4.4.3.2: SERVQUAL dimension gap for the customer and Telesur manager survey The unweighted SERVQUAL score is the average from the dimension scores and presented in table 4.4.3.3 Page | 67 SRFHR0609035 Table 4.4.3.3: Calculation to obtain unweighted SERVQUAL score Average dimension Customer‟s Score Median Tangible SERVQUAL gap score Average Reliability SERVQUAL gap score Average Responsiveness SERVQUAL gap score Average Assurance SERVQUAL gap score Average Empathy SERVQUAL gap score Total Average (= Total/5) unweighted SERVQUAL gap score -2.00 -3.00 -3.00 Telesur manager‟s score -2.00 -3.00 -3.00 -2.00 -2.00 -12.00 -2.40 -2.00 -2.00 -12.00 -2.40 4.4.4 The SERVQUAL importance level of the independent variables and the Weight score The SERVQUAL importance weight will discuss the importance of the independent variables to the customers. Chart 4.4.4.1 defines that both, the customer survey and the Telesur Manager‟s survey has reliability as their most important independent variable, followed by responsiveness as the second most important variable. Importance of the independent variables customer survey 25.4% 23.7% 19.1% 19.0% Tangible Reliability Telesur mangers survey 20.7% 20.7% 19.4% 18.7% Responsiveness Assurance 16.4% 17.7% Empathy Chart 4.4.4.1: Importance of the independent variables for both surveys The less important variable for both surveys is Empathy. And the most important variable for both surveys is Reliability. The importance of the variable Reliability and Assurance is slightly higher for the customer survey, and the importance for Tangibles and Responsiveness is nearly the same. Empathy is the only variable were the Telesur manager‟s finds the importance higher than the customer survey. Page | 68 SRFHR0609035 The calculation of the SERVQUAL weighted scores is the unweighted score multiplied with the weighted score. The results are discussed in the tables below. Table 4.4.4.1a discusses the customer‟s survey SERVQUAL weighted score and table 4.4.4.1b discusses the Telesur manager‟s survey SERVQUAL weighted score. Table 4.4.4.1a:The customer survey SERVQUAL weighted Score Independent variables Average Tangibles Average Reliability Average Responsiveness Average Assurance Average Empathy Unweighted Score Importance Weight -2.00 0.1913 -3.00 0.2537 -3.00 0.2071 -2.00 0.1938 -2.00 0.1640 Total Average (=total/5) Weighted SERVQUAL Score Weighted Score -0.3826 -0.7611 -0.6212 -0.3877 -0.3281 -2.4806 -0.4961 Table 4.4.4.1b: The Telesur manager‟s survey SERVQUAL weighted score Independent variables Average Tangibles Average Reliability Average Responsiveness Average Assurance Average Empathy Unweighted Score Importance Weight -2.00 0.1903 -3.00 0.2370 -3.00 0.2070 -2.00 0.1870 -2.00 0.1770 Total Average (=total/5) Weighted SERVQUAL Score Weighted Score -0.3807 -0.7110 -0.6210 -0.3740 -0.3540 -2.4407 -04.8814 Table 4.4.4.1a and table 4.4.4.1b made clear that the weighted score for the customer survey is negatively higher than from the Telesur manager‟s survey. 4.5 RELIABILITY AND VALIDITY TEST The Cronbach‟s Alpha method is used for the reliability check of the variables in this research. Cronbach‟s Alpha is the most commonly used measure of reliability. Cronbach‟s Alpha‟s below 0.5 are unacceptable and Alpha‟s higher than 0.7 are acceptable. The overall Cronbach‟s Alpha from this research for the customer‟s survey equals 0.879 for the expectations and 0.965 for the perceptions. The overall Cronbach‟s Alpha results for the Telesur manager‟s survey equals 0.942 for the expectations and 0.970 for the perceptions. Table 4.5.1a represent the individual Alpha‟s for the independent variables for the customer survey and table 4.5.1b the results for the independent variables for the Telesur manager‟s survey. Page | 69 SRFHR0609035 Table 4.5.1a: Cronbach‟s Alpha customer‟s survey Tangibles Reliability Responsiveness Assurance Empathy Overall Cronbach Alpha Expectations 0.620 0.693 0.682 0.671 0.751 0.879 Cronbach Alpha Perceptions 0.791 0.930 0.881 0.875 0.901 0.965 Table 4.5.1b: Cronbach‟s Alpha Telesur manager‟s survey Tangibles Reliability Responsiveness Assurance Empathy Overall Cronbach Alpha Expectations 0.851 0.680 0.866 0.795 0.845 0.942 Cronbach Alpha Perceptions 0.863 0.939 0.851 0.890 0.882 0.970 The validity of this method was assessed by using the factor analysis to discover the underlying structure of the variables. The data used for the factor analysis was the expected values of the customer survey. The idea is that the service quality should be based on what is expected by customers and not what is perceived by customers. The Kaiser-Meyer-Olkin (KMO) measured 0.832 sampling adequacy. This score as explained in chapter 3 is pretty good and suitable for further analysis. This means that the variables were able to be grouped into smaller sets of underlying factors. Farther table 4.5.2 showed that the Bartlett‟s test of Sphericity compared the correlation matrix to the identity matrix and showed clearly a significant relationship between the variables, approx. Chi-Square 1315.233, df. = 231, sig. 0.000 (P < 0.001). This result implies that the data are approximately multivariate normal and acceptable for factor analysis. Table 4.5.2: KMO and Bartlett‟s Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square Df Sig. .832 1315.223 231 .000 Page | 70 SRFHR0609035 4.6 DISCUSSIONS OF FINDINGS The discussed questions in this paragraph refer to chapter 2.7: the service quality gap. Question 1: Is there a difference between customers expected and perceived quality? This question refers to gap 5: the service quality gap. As mentioned before the focus of this gap is on the total relationship between the five dimensions and is a result from the 4 other gaps. The discrepancy between customer expectations and their perceptions of the service delivered. The Table 4.4.3.1: “The SERVQUAL scores of 153 customer questionnaire responses” shows the difference between the expectation and the perception scores of the service quality by the customer‟s from Telesur wired and wireless internet services. With the Wilcoxon signed- rank test analysis we demonstrated in Table 4.4.1.1b: “the Wilcoxon signed- ranks test” that there is a significant difference at P <0.05 level between the perception and expectation SERVQUAL scores. Chart 4.6.1 explains this clearly. Median score of the dimensions 8.0000 6.0000 4.0000 2.0000 0.0000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 median perception median expectation Chart 4.6.1: Median scores of the dimensions The expectations are almost always at the maximum score which means that customers expect an excellent service from Telesur. The highest expectations are concentrated on the dimension Responsiveness (questions 10 till 14) and the lowest expectations are concentrated for the dimension Empathy. (Questions 18 till 22) The SERVQUAL weighted score represents gap 5 which is the difference between the customer‟s expectations and perceptions. A negative score means that the expectation is higher than the perception. This means that the customer is not satisfied with the delivered service. The SERVQUAL weight scores from table 4.4.4.1a and 4.4.4.1b indicates that the customer is more dissatisfied than the Telesur managers think because the weighted score from the customer survey is negatively higher than the weighted score from the Telesur manager‟s survey. According to Parasuraman, Zeithaml and Berry (1991) as described in chapter 2, the service Page | 71 SRFHR0609035 quality is from an unacceptable level If the expected services are greater than the perceived service (ES > PS). Question 2: Is there a difference between customer‟s expectations and the manager‟s perceptions of the customer expectations. Question 2 refers to Gap 1: Customer‟s expectations versus management‟s idea or perceptions of customer expectations. This question is very important because managers and employees often have a very internal process-oriented view of their business. It is very difficult for them to get out of this comfort zone and to let them see things the way the customer does. Input for the manager‟s perception of the customer expectations is collected by an internal survey between the managers and frontline personnel dealing with wired and wireless internet service within Telesur. The questions are the same and to Telesur managers and personnel the purposed is explained. Chart 4.6.2 clearly shows that there is no difference between the customer expectations and the manager‟s perceptions of the customer expectations. Score Expectations from the dimensions 7.2000 7.0000 6.8000 6.6000 6.4000 6.2000 6.0000 5.8000 5.6000 5.4000 median tangibles median reliability median responsiveness median assurance median empathy customer exp 7.0000 7.0000 7.0000 7.0000 6.0000 Telesur manager exp 7.0000 7.0000 7.0000 7.0000 6.0000 Chart 4.6.2: Difference between the customer expectations and the manager’s perceptions of the customer expectations Comparing the difference in expectation on a questionnaire made clear that in some cases the perception of the customer expectation by Telesur managers is higher than the customer expectations. This is made clear by comparing the tables 4.3.1 till table 4.3.5, the sections “a” and “c” with each other. Page | 72 SRFHR0609035 The differences are: 1. E2; “the physical facilities at a company like Telesur must be visual attractive”. E2 belongs to the dimension Tangibles. The Telesur managers strongly agree with this statement (score equals 7) and the customers just agree with this statement (score equals 6) 2. E7: “Telesur must perform the service right the first time”. E7 belongs to the dimension Reliability. The score from the Telesur managers is “7” and from the customers is “6” 3. E11: “Telesur employees must always give prompt service to customers”. E11 belongs to the dimension Responsiveness. The score from the Telesur managers is “7” and from the customers is “6” In Chart 4.4.4.1:” importance of the independent variables from both survey‟s” it is showed that the importance weight of the dimensions from both survey‟s does not differ much from each other. The dimensions Tangible, Responsiveness and Empathy have a difference from less than 0.8%, reliability and assurance a difference from less than 1.8 %. Question 3: Is there a difference between translation of perceptions into service quality specifications and management perceptions of customer expectations? Question 3 refers to gap 2: Management perceptions versus service perceptions: mismatch between manager‟s expectations of service quality and service quality specifications. For this gap, it is very important that management understand exactly what the customer wants. Without this understanding, it will be impossible for management to know whether their expectations are aligned with customer specifications. In chapter 2.2 it is explained that although Telesur‟s mobile network is build by old technology it still is the second best in Suriname, but far behind in throughput. The average throughput for ADSL is hardly enough to watch a Youtube film and not enough for IPTV or video on demand. Gap 2 refers to all the 5 dimensions. If the expectation is not reached, the service quality specifications are incorrect or not reached. So important to this question is the evaluation of the dimensions. The data analysis in table 4.4.2.1 b: “the Wilcoxon ranks test” made clear that there is a significant difference between the expectations and perceptions of the five SERVQUAL dimensions. The significant value is < 0.05. This means that there is a significant difference in the different variables. This is also illustrated in Chart 4.4.3.2: “SERVQUAL dimension Gap for the customer and Telesur manager survey”. By this became clear that for both surveys the customer expectations are not met for none of the dimensions. In chart 4.6.3 and chart 4.6.4 displays that there is no difference in the Customer survey gap and the Telesur manager‟s survey gap. The highest gap score is for Reliability and Responsiveness. The gap score for those dimensions is “-3.00”. Page | 73 SRFHR0609035 Service quality of the dimensions Gap score 0.0000 -0.5000 -1.0000 -1.5000 -2.0000 -2.5000 -3.0000 -3.5000 Tangible Reliability Responsivenes s Assurance Empathy unweighted customer survey -2.0000 -3.0000 -3.0000 -2.0000 -2.0000 -2.4000 Telesur mangers survey -2.0000 -3.0000 -3.0000 -2.0000 -2.0000 -2.4000 Chart 4.6.3: The service quality of the independent variables Expectations and Perceptions from both surveys 8.0000 7.0000 6.0000 5.0000 4.0000 3.0000 2.0000 1.0000 0.0000 customer exp Telesur manager exp Telesur manager perc Chart 4.6.4: Expectations and perceptions from both surveys Despite the fact that there is no difference in the Telesur manager‟s perception of the customer‟s expectation and the actual customer‟s expectation, the service quality specifications are not met. The two most important areas in the Telecommunication business, Reliability and Responsiveness have the highest gap. Reliability is the Ability to perform the promised service dependably and accurately and Responsiveness is the Willingness to help customers and provide services. An observation of the gaps from the Reliability and the responsiveness dimension from chart 4.4.3.1a: “the Gap score of the dimensions for the customer survey” and chart 4.4.3.1b: “the Gap score of the dimensions for the Telesur manager‟s survey” made clear that not all the gaps equal Page | 74 SRFHR0609035 a score of “-3.00” and that the Telesur manager‟s are a little bit less satisfied for 2 items of the dimension Responsiveness than the customer‟s are. The survey questions with a gap not equal to “-3.00” are: 1. For the customer survey: a. E7/P7; “Telesur must perform the service right the first time”. The score is “-2.00” and this item belongs to the dimension Reliability. 2. For the Telesur manager survey: a. E9/P9; “Telesur delivers you services completely free of errors”. The score is “-2.00” and belongs to the dimension Reliability b. E10/P10; = ”Telesur must tell customers exactly when maintenance will be performed” The score is “-2.00” and this item belongs to the dimension Responsiveness c. E11/P11; “Telesur employees must always give prompt service to customers”. The score is also “-2.00” and the item belongs to the dimension Responsiveness Question 4: Is there a difference between the customer-driven service designs and standards and the service delivery. The corresponded gap with question 4 is gap 3. “Service specifications versus service delivery: poor delivery of service quality. In other words, are standards consistently met”? Not delivering to service standards can be verified by interaction with the customer. The most important dimensions for this question are the dimensions reliability and assurance. As explained in chapter 2.5, Reliability is the ability to perform the promised services dependably and accurately and assurance is the Knowledge and courtesy of employees and their ability to inspire trust and confidence. Other important items are E1 & E4 from Tangibles (appearance of physical facilities, broadband services, personnel and communication materials) E1: “customers expect a company like Telesur must have the latest broadband services”. E4:” Materials associated with the service (such product information, advertisement, etc.) must have a good visual appearance and must be up to date at Telesur's facilities”. According to chart 4.4.3.1a and 4.4.3.1b “the Gap scores of the dimensions for the customer and the Telesur manager survey”, and the tables 4.3.1a, 4.3.1b and 4.3.1c: “expectation and perception tangibles for descriptive statistics from both surveys”, E1 has the highest expectation score “7” and E1/P1 a gap of “-3.00”. E4 also has an expectation score of “7” but E4/P4 has a gap score of “-2.00”. The scores are for both survey‟s the same, the expectations are very high and although the gap from E4/P4 is lower than from E1/P1 they are both still below the expectations. The dimension Reliability has a gap of “-3.00” for both surveys, as showed in Chart 4.6.3: “the service quality of the independent variables”. But there is a small difference in the performance of the items. For the customer survey item E7/P7 has a gap score of “-2.00” with an expectation score of “7.00”. And for the Telesur manager survey item E9/P9 has a gap score of “-2.00” with an expectation score of “7.00”. The other items from this dimension have a gap score from “Page | 75 SRFHR0609035 3.00”. E7= “Telesur must perform the service right the first time” and E9 = “Telesur must deliver services completely free of errors” As showed in Chart 4.4.4.1: “importance of the independent variables for both surveys” the customer‟s finds the dimension Reliability more important than the Telesur managers. The weight score is 25.4% for the customers and 23.7% for the Telesur managers. And the SERVQUAL weighted score is -0.7611 for the customers and -0.7110 for the Telesur managers. As displayed in table 4.4.4.1a and table 4.4.4.1b: the customer and Telesur manager survey SERVQUAL weighted score. This is a difference of almost 7%. Assurance is the third most important dimension according to chart 4.4.4.1: “importance of the independent variables for both surveys “. The dimension assurance the gap score is equal to “2.00” as showed in Chart 4.6.3: “the service quality of the independent variables”. The items scores are identical. The only item with a gap score of “-3.00” is E14/P14: “The behavior of employees from Telesur must inspire confidence in customers”. The difference is in the importance weight. Chart 4.4.4.1: made clear that the importance weight is 19.4% for the customers and 18.7% for the Telesur managers. The importance weight from the customers is 0.7% higher than from for the Telesur manager survey. And the SERVQUAL weighted Score is -0.3877 for the customers and -0.3740 for the Telesur managers. As showed in table 4.4.4.1a and table 4.4.4.1b: the customer and Telesur manager survey SERVQUAL weighted Score. The difference is only 3.5% and not significant. Question 5: Is there a difference between external communications to customers and the service. This question corresponded with gap 4. Service delivery versus external communication: differences between service delivery and external communication with customer. In other words are the promises made, consistently fulfilled? According to chapter 2.7 customers are influenced by what they hear from others. The main outlets for customers are the word of mouth publicity and advertising. The cross check with this gap is done with the dimension responsiveness and empathy. Responsiveness is the willingness to help customers and provide prompt services and empathy is caring, individualized attention that Telesur provides its customers. Other important items are E2 and E3 from the dimension Tangibles. E2 = „The physical facilities at a company like Telesur must be visual attractive” and E3 =” Employees at Telesur must be neat appearing”. Those two items are important because they contribute to the credibility of Telesur employees to the customers. According to table 4.3.1a and 4.3.1b: “expectation and perception tangibles for descriptive statistics from the customer survey”, and table 4.3.1c” expectations and perception tangibles for descriptive statistics from the Telesur manager survey “, E2 and E3 are one of the few items with a perception score equal to “5.00”. As showed in chart 4.4.3.1a and 4.4.3.1b “the Gap scores of the dimensions for the customer and the Telesur manager survey”, E2/P2 has a gap score of “-1.00” for the customer survey and “3.00” for the Telesur manager survey. E3/P3 has a gap score of “-2.00” for both surveys. The Page | 76 SRFHR0609035 gap score from “-1.00” is one of the two items with the lowest gap scores from the customer survey. Responsiveness is the second most important dimension according to chart 4.4.4.1 and is one of the two dimensions with the highest gap score according to chart 4.6.3. The gap score for this dimension is “-3.00” for the customer survey and “-2.50” for the Telesur manager survey. The difference is within item E10 and E11 according to chart 4.4.3.1a and 4.4.3.1b. The gap score for the customer survey is “-3.00” while the gap score for the Telesur manager survey equals “2.00”. The expectations for E10 are “7.00” for both surveys and “7.00” and “6.00” for E11. The perception from E11 is “4.00” for both surveys and “5.00” and “4.00” for the perception, as showed in table 4.4.3a till 4.4.3c.” responsiveness for descriptive statistics from both survey‟s”. E10 = “Telesur must tell customers exactly when maintenance will be performed” and E11= “Telesur employees must always give prompt service to customers” The importance weight presented in Chart 4.4.4.1: “importance of the independent variables for both surveys” shows there is no difference in weight regarding the Responsiveness. The weight is in both surveys equal to 20.7%. The SERVQUAL weighted Score is -0.621 for both surveys. As showed in table 4.4.4.1a and table 4.4.4.1b: the customer and Telesur manager survey SERVQUAL weighted Score. The dimension empathy has the lowest importance level according to chart 4.4.4.1. The gap score for both surveys is “-2.00” according to chart 4.6.3. The dimension Empathy also has the lowest median expectation. This is showed in Chart 4.6.4: “expectations and perceptions from both surveys”. The median score for the dimension Empathy is “6.00”. Item E19 from this dimension has the lowest gap from all items. According to chart 4.4.3.1a and 4.4.3.1b E19/P19 has a gap of “-1.00” For the customer survey and, a gap of “0.00” for the Telesur manager survey. E19 = “Telesur must have operating hours convenient to all their customers” The importance weight presented in Chart 4.4.4.1 shows that the dimension Empathy is the only dimension where the importance is chosen higher by the Telesur manager‟s survey. The weight scores are 17.7% for the Telesur manager‟s survey and 16.4% for the customer‟s survey The SERVQUAL weighted score is -0.3281 for the customer survey and -0.3540 for the Telesur manager survey. This is showed in table 4.4.4.1a and table 4.4.4.1b: the customer and Telesur manager survey SERVQUAL weighted Score. Page | 77 SRFHR0609035 4.7 SUMMARY The descriptive sample through an online survey was used for gathering data. The target groups were Telesur customers and Telesur managers. The results are displayed in Appendix 1 and Appendix 2. Through analyzing the data, with SPSS version 19 and Microsoft Office Excel 2007, from the expectation and perception from the service quality delivered by Telesur, the highest and lowest median scores are presented. The gap scores and importance from the 5 independent variables and their relationship were also discussed and explained that none of the 22 items reaches the customer‟s expectations level. This Wilcoxon signed-rank test was used to compare the 22 median scores for the expectations and perceptions statements and the 5 independent variables to explain the significant difference in the variables. The Cronbach‟s Alpha test used for the reliability has a level higher 0.7 which means that it is acceptable. For the validity test the Kaiser-Meyer-Olkin test had a result higher than 0.801 which makes it suitable for further analysis. . Through analysis and findings, the questions from chapter 3 have been discussed in this chapter and the conclusions will be presented in chapter 5. Page | 78 SRFHR0609035 CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS 5.1 INTRODUCTION This chapter discusses the most important findings of the research. The research was triggered by the problem statement described in chapter one: “Is there a weakness in customer‟s satisfaction due to lack of productivity, technical quality of services, problem detection and correction and reliability of the wire and wireless internet services”. To find the answer to this problem the following objectives and research question were derived: Objectives: • • • Finding out if there is a difference between customers expected and perceived service quality Determine the significant key factors that affect the overall customer satisfaction. Are the results of the customers satisfaction from Telesur weak due to bad service quality performance of the operation departments? Research questions for those objectives are: • • • • • Is there a difference between customer‟s expected and perceived quality? Is there a difference between customer‟s expectations and the manager‟s perceptions of the customer expectations? Is there a difference between translation of perceptions into service quality specifications and management perceptions of customer expectations Is there a difference between the customer-driven service designs and standards and the service delivery? Is there a difference between external communications to customers and the service? The research model used for finding answers to the research questions is the integrated GAPS model of service quality (SERVQUAL) from Parasuraman, Zeithaml & Berry (1985, 1988). The necessary data, consisting of 22 questions regarding expectations, 22 questions regarding perceptions and 5 questions regarding importance weight, was collected by an online questionnaire through a selective group consisting of university students, young professionals and Telesur managers. And the collected data was analyzed in chapter four by comparing the median scores of the expectations and the perceptions, together with the Wilcoxon signed-rank test to explain the significant difference in the variables, the Cronbach‟s Alpha test used for the reliability and the Kaiser-Meyer-Olkin test for the validity. This chapter will finally provide answers to the objectives, research questions and the problem statement. Page | 79 SRFHR0609035 5.2 CONCLUSIONS The conclusions to the research questions are as follows: Question 1: Is there a difference between customer‟s expected and perceived quality? As mentioned in section 4.6 this question refers to gap 5: the service quality gap. The discrepancy between customer‟s expectations and their perceptions of the service delivered. The analysis and findings in this section made clear that there is a difference between customer‟s expected and perceived quality. This statement is based upon the following results: - The gap score from all the 22 items are negative, as displayed in Chart 4.6.1. This means that none of the 22 items, reaches the customers‟ expectations level The SERVQUAL weighted score is negative; this is shown in Table 4.4.4.1a .The SERVQUAL weight score represent gap 5. A negative score means that the expectation is higher than the perception. According to Parasuraman, Zeithaml and Berry (1991) as described in chapter 2, the service quality is at an unacceptable level if the expected services are greater than the perceived service (ES > PS). This means that the customer is not satisfied with the delivered service. The same results also reflected by analyzing the results of the Telesur manager‟s survey. This leads us to the conclusion that the Telesur managers are aware of the fact that the customers are not satisfied with the service Telesur actually delivers. The question then arises is, are the different change programs, which are being implemented internally within Telesur, sufficient and appropriate? Question 2: Is there a difference between customer‟s expectations and the manager‟s perceptions of the customer expectations? Question 2 refers to Gap 1: Customer‟s expectations versus management‟s idea or perceptions of customer‟s expectations. This question is very important because managers and employees often have a very internal process-oriented view of their business. After the analyses and findings it became clear that there is no difference between the customer‟s expectations and the manager‟s perception of the customers‟ expectations. Page | 80 SRFHR0609035 This statement is based upon the following results: - - Chart 4.6.2 showed that there is no difference in the expectation medians from the 5 dimensions from the SERVQUAL model for both surveys. Chart 4.4.4.1 demonstrates that the importance weight of the dimensions from both surveys does not really differ from each other. The dimensions have an average difference equal to 1.2%. Those two statements made clear that Telesur manager‟s know what the customer expect from the services because they expect the same quality and the same level of importance. Question 3: Is there a difference between translation of perceptions into service quality specifications and management perceptions of customer expectations? Question 3 refers to gap 2: Management perceptions versus service perceptions: Mismatch between manager‟s expectations of service quality and service quality specifications. For this gap, it is very important that management understand exactly what the customer wants. Without this understanding, it will be impossible for management to know whether their expectations are aligned with customer specifications. Analyzing and findings showed that Telesur management knows exactly what the customer wants but despite that, there is a difference between translation of perceptions into service quality specifications and management perceptions of customer expectations. This statement is based upon the following results from chart 4.6.3: “the service quality of the independent variables” and Chart 4.6.4 explains that: - There is no difference in the results for expectation and perception from both survey‟s - Gap 2 refers to all the 5 dimensions, and for none of the five dimensions the expectation is reached. If the expectation is not reached, the service quality specifications are incorrect or not reached. - The Two most important areas in the Telecommunication business, Reliability and Responsiveness have the highest gap. Question 4: Is there a difference between the customer-driven service designs and standard and the service delivery? The corresponded gap with question 4 is gap 3. “Service specifications versus service delivery: poor delivery of service quality. In other words, are standards consistently met”? Not delivering to service standards can be verified by interaction with the customer. The most important dimensions for this question are the items are E1 & E4 from Tangibles and the dimensions reliability and assurance. Page | 81 SRFHR0609035 Out of the analyzing and findings it can be concluded that there is a difference between the customer-driven service designs and standards and the service delivered. This conclusion is based on the following results: - The gap score for E1/P1 and E4/P4 are below expectations as showed in chart 4.4.3.1a and 4.4.3.1b, and the tables 4.3.1a, 4.3.1b and 4.3.1c. For both surveys the scores for the expectations and perceptions are the same. The importance weight as showed in Chart 4.4.4.1 is also the same for both surveys. This means that the expectations are not met. But the Telesur managers are aware of the problems and know exactly what the customer want. This makes it easier to get the perception equal or better than the expectations. - Reliability, one of the two most important dimensions: o This dimension has a Gap of “-3.00” for both surveys, as showed in Chart 4.6.3: This is one of the two most important dimensions and still it has the highest negative gap score o As showed in Chart 4.4.4.1: the customer‟s finds the dimension Reliability more important than the Telesur managers. The difference is only 2% but to deliver a good service the difference must be equal or less than 0% o Multiplying the gap score with the weight score will result in the SERVQUAL weighted Score. The SERVQUAL weight score is -0.7611 for the customer‟s and -0.7110 for the Telesur managers. As showed in table 4.4.4.1a and table 4.4.4.1b: The small difference from 2% in the weight score contributes to the difference of almost 7%. The higher the negative score the higher the disappointment in satisfaction of the delivered service. If the customer‟s disappointment is greater than that from the Telesur managers, Telesur will not be able to provide the customer driven service designs and standards. - The dimension Assurance, the third most important dimension as showed in chart 4.4.4.1. o The gap score for this dimension is “-2.00” for both surveys, regarding chart 4.6.3. The negative gap score defines that the customer expectations is less than the perception. This means that the Telesur managers know exactly how important this dimension is to the customer o Chart 4.4.4.1. made clear that the difference in importance weight between the two surveys is 0.7%, which is not negligible. The difference in SERVQUAL weight score is 3.5% which is not significant and mandatory for eliminating the gap because the Telesur manager knows exactly how to satisfy the customer. Page | 82 SRFHR0609035 Question 5: Is there a difference between external communications to customer‟s and the service? This question corresponded with gap 4. Service delivery versus external communication: differences between service delivery and external communication with customer. In other words are promises made consistently fulfilled? The most important dimensions for this question are items E2 and E3 from the dimension Tangibles and the dimension Responsiveness and empathy. Out of analyzing and findings, it is concluded that there is a difference between external communications to customers and the delivered services. This conclusion is based on the following results: - The gap score for E2/P2 and E3/P3 are very low but still under expectations. Chart 4.4.3.1a and 4.4.3.1b made clear that, there is only a difference between the scores from the two surveys for E2/P2. “-1.00” is noted for the customer survey and “-2.00” for the Telesur managers survey. Although the importance weight is the same for both surveys, the difference in gap for item E2/P2 makes it difficult to eliminate this gap. - Responsiveness, the second most important dimension according to chart 4.4.4.1 o The gap score for this dimension is also below expectations and unequal for the two surveys. “-3.00” for the customer survey and “-2.50” for the Telesur manager survey. There is a difference because of items E10/P10 and E11/P11. Because of this difference the Telesur managers and the customer‟s are not completely in line regarding the expectations and the perceptions. o The importance weight in chart 4.4.4.1 displayed that there is no significant difference in importance for both surveys. This is a good start to eliminate the gap. o The SERVQUAL weight score is equal for both surveys. This is also a good start to eliminate the gap. - Empathy, the lowest importance level according to chart 4.4.4.1 o The gap score for this dimension is the lowest from all the dimensions and is equal for both surveys. The expectations are the lowest as showed in chart 4.6.4 and item E19/P19 has the lowest gap of all items. “-1.00” for the customer survey and “0.00” for the Telesur survey. o The importance weight present in chart 4.4.4.1 made clear that Empathy is the only dimension where the importance is chosen higher by the Telesur manager‟s Page | 83 SRFHR0609035 survey. The difference is 1.3%. This a good start for eliminating the gap. It shows that the Telesur management is more critical about the performance of the Empathy than the customer. Solving this gap could lead to the perception being higher than the expectation of the customer. In this case the quality is exceeded as explained in section 2.5. o The SERVQUAL weighted score is negatively higher for the Telesur manager‟s survey as showed in table 4.4.4.1a and 4.4.4.1b. This is also a good start for gap elimination and could lead to a perceived quality that exceeded the expectation. As an overall conclusion we could state that, two most important dimensions for this statement are Reliability and Responsiveness and those two have the worst performance of the 5 independent variables. And four out of the five research questions have a negative result. Out of the conclusions from the research questions we can confirm positively to the problem statement described in chapter one: “Is there a weakness in customer‟s satisfaction due to lack of: productivity, technical quality of services, problem detection and correction and reliability of the wire and wireless internet services”. 5.3 RECOMMENDATIONS Telesur‟s mission is to stay market leader in Suriname. To accomplish this it is recommended that Telesur closes the gaps discussed in section 5.2. By closing the gaps Telesur will deliver service quality equal or beyond the expectations of the customer. As described in section 2.5 “service quality” will lead to a competitive advantage over the competitors which will finally result in accomplishing the mission statement. Gap 1: Customer‟s expectations versus management‟s idea or perceptions of customer‟s expectations Gap 1 is the only gap with a positive result. There is no difference between the customer‟s expectations and the manager‟s perception of the customers‟ expectations. The Telesur manager knows exactly what the customer‟s wants. Knowing what the customer wants is one of the important basics for solving the gap problems. Interesting to know is why the performance is below expectations if the managers know exactly what the customer‟s expected from Telesur as their wireless and wired internet provider. Gap 2: Management perceptions versus service perceptions: Mismatch between managers expectations of service quality and service quality specifications. In section 2.7 it is explained that for closing gap 2, it is very important that management understand exactly what the customer wants. Without this understanding, it will be impossible for management to know whether their expectations are aligned with customer specifications. Page | 84 SRFHR0609035 The theory in section 2.7 also describes action points for improvement of gap 2: Top management commitment to providing service quality Set, communicate, and reinforce customer-oriented service standards Establish challenging and realistic service quality goals Train managers to be service quality leaders Be receptive to new ways to deliver service quality Prioritise tasks and standardise repetitive tasks Gain employee acceptance of goals and priorities Measure performance of service standards and provide regular feedback Reward managers and employees for achievement of quality goals As explained in section 1.2 “problem definition” the most important changes within Telesur are: Telesur is in a process of changing from a technical driven culture into a market and customer oriented culture and structure Telesur wants to deliver just in time services and full fill the needs of customers in the new competitive environment The new corporate philosophy is based on: quality and cost control, profit, growth, diversity in services and higher efficiency of the organization Activities: investments in organizational restructuring, client oriented training, leadership and change training and continuous education of employees Constantly trying to be familiar with the customer‟s life cycle and try to be ahead of the life cycle The changes described within Telesur should be enough to deal with the suggestion from the theory in section 2.7 but the conclusion from the survey seems to show the opposite. The suggestion to get the perception equal or higher than the expectations in gap 2 is to evaluate the changes made within the company. The evaluation will result in an overview of items that needs improvement. After that Telesur needs to find a way to accomplish the improvements and continue with the changes. This will finally result in a positive result for gap two. For the improvement of the third gap: “Service specifications versus service delivery: poor delivery of service quality. In other words, are standards consistently met?” Page | 85 SRFHR0609035 It is mandatory that gap two is greater or equal to zero. Once the specifications from gap 2 are aligned the next step is to deliver these services according the alignment. The explained action in chapter 2.7., to perform to close gap 3 are: Attract and select the best and right employees Develop and support employees by training, providing appropriate technology & equipment, encourage and build teamwork, empower employees and internal marketing Retain good employees by measure and reward service quality achievements and develop equitable and simple reward systems All those trainings are done by Telesur but the results do not contribute to the closing of this gap. The suggestion to close this gap is the same as for the closing of gap 2 since the program is there but the results are negative. Improvement of the fourth Gap;”Service delivery versus external communication: differences between service delivery and external communication with customer”. In other words are promises made consistently full filled? The action points suggested by section 2.7 for closing gap 4 are: Seek input from operation personnel on what can be done „Reality‟ advertising by focussing on real employees, real customers, real situations and service characteristics that are important to customers Seek input from employees on advertising and gain communications between sales, operations and customers Internal marketing programs Ensure consistent standards in multi-site operations Manage customer‟s expectations: What are realistic expectations? These action points are different than the action points for the second and third gap. The change performed by Telesur will not cover the above action points. The recommendations for closing this gap are to set up a program within Telesur to cover those action points. But this study should not be performed yet. First Telesur needs to find out why the changes described in chapter 1.2. which could benefit to solve gap two and three, did not work. Why are employees still in their comfort zone, why are they not adapting to the changes? The final gap, gap 5; discrepancy between customer expectations and their perceptions of the service delivered: differences between expected and perceived quality. This Gap is the result of the four other gaps and will automatically be solved if gap one until four is solved. Page | 86 SRFHR0609035 5.4 SUMMARY This chapter focuses on conclusions from the research questions. The only research question with a positive answer is question number two. There is no difference between customer‟s expectations and the manager‟s perceptions of the customer expectations. Even though this is a requirement for solving the other gaps, Telesur is still not able to do so. The results of the other four research questions explain briefly why the most important dimensions for this statement, Reliability and Responsiveness, have the worst performance of the 5 independent variables. The conclusions from the research questions lead to the answer of the problem statement which is the confirmation that there is a weakness in customer‟s satisfaction due to lack of: productivity, technical quality of services, problem detection and correction and reliability of the wire and wireless internet services”. The recommendations for solving those problems are a self evaluation of the change programs within the company because they should be enough to improve the negative gaps for the service quality. Page | 87 SRFHR0609035 References Lucia Bibolini, ‘Suriname- Telecoms, Mobile and Broadband’. Available: http://www.budde.com.au/Research/Suriname-Telecoms-Mobile-and-Broadband.html . Source: buddecomm. Accessed: February 2011 contributed by: Paul Fedoroff, 'comparing service quality performance with customer service quality needs. 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Page | 90 SRFHR0609035 Appendix 0: online questionnaire Page | 91 SRFHR0609035 Page | 92 SRFHR0609035 Page | 93 SRFHR0609035 Page | 94 SRFHR0609035 Page | 95 SRFHR0609035 Page | 96 SRFHR0609035 Appendix 1: results customer survey E E E E E E E E E E E E E E E E E E E E E E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 6 6 7 7 6 7 6 7 6 6 7 7 6 5 6 6 6 5 6 6 6 6 5 5 6 5 6 6 6 7 6 6 5 6 6 7 6 6 6 5 7 6 6 6 7 4 4 4 7 7 6 6 6 7 6 7 6 7 7 7 5 6 6 6 7 7 6 6 6 6 6 7 6 7 6 7 6 6 6 7 7 6 6 5 5 5 6 5 7 6 6 7 7 7 6 6 5 7 7 7 6 6 7 7 5 5 6 6 7 6 7 6 6 6 7 7 6 7 6 7 7 7 6 7 7 7 7 6 7 6 7 7 7 7 5 6 7 7 4 5 4 1 6 7 6 6 7 7 4 4 1 4 7 7 6 6 7 6 7 7 6 6 6 7 6 7 6 6 7 7 6 6 6 7 7 7 4 6 7 5 1 2 7 5 6 5 6 5 6 5 7 6 5 4 3 4 6 5 4 4 7 7 7 7 6 6 6 5 7 7 7 5 7 7 5 6 6 6 5 7 6 6 7 7 6 6 5 5 5 7 5 6 6 6 6 6 6 5 5 6 6 6 7 5 6 7 7 7 7 7 5 7 7 7 7 7 7 7 7 5 5 5 7 7 4 5 5 6 7 7 4 5 5 7 7 5 5 7 7 7 5 5 4 4 6 5 5 7 6 7 6 7 6 7 7 7 7 7 6 7 7 7 6 6 7 7 7 6 6 5 5 5 6 6 6 6 5 5 6 5 5 6 6 6 5 5 5 5 5 5 7 7 7 7 7 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P P P P P P P P 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 5 2 3 6 2 2 3 3 2 3 2 2 2 2 2 1 2 3 5 3 2 2 5 5 5 5 5 7 5 5 7 6 7 7 5 6 7 7 7 7 7 6 5 5 5 3 7 5 4 4 4 5 3 5 7 6 7 6 6 6 6 6 6 6 5 6 4 4 4 5 1 4 1 1 1 1 1 4 1 1 1 3 1 3 5 3 1 1 4 5 6 6 4 6 5 5 5 3 4 4 4 5 5 5 5 5 3 5 5 5 3 3 3 3 3 5 2 2 2 3 3 6 4 4 3 4 4 4 6 5 3 3 1 2 3 3 1 2 2 1 2 1 2 5 3 3 2 5 2 3 5 5 1 3 3 5 5 4 1 1 1 2 1 1 1 1 1 3 1 4 2 4 5 4 1 1 5 5 6 5 4 4 4 4 4 6 4 5 4 5 5 5 5 5 6 5 5 5 7 7 7 7 7 7 7 7 7 7 5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 6 5 5 5 5 5 4 6 5 6 4 4 4 4 4 5 5 5 4 1 3 5 5 1 5 1 1 4 7 4 5 4 5 3 6 4 4 5 5 4 4 1 3 3 1 1 1 1 1 1 2 1 1 1 1 1 3 1 1 5 1 1 1 4 4 5 6 4 3 3 4 3 4 4 4 4 4 4 4 3 3 4 3 3 4 3 3 4 4 2 2 2 3 2 4 2 3 3 2 2 2 1 4 3 3 2 2 1 4 4 3 2 2 2 1 1 2 3 4 3 3 3 5 3 3 4 3 3 3 2 3 4 4 2 3 2 3 2 4 3 3 3 3 4 4 4 4 4 4 6 4 7 5 5 5 5 3 3 3 5 1 3 3 3 2 6 3 4 3 3 3 3 2 4 4 6 5 4 5 4 4 4 5 5 5 6 5 5 6 6 4 5 5 5 5 1 4 4 4 2 2 4 1 3 1 2 2 4 2 4 6 4 1 1 1 1 1 5 6 6 5 5 5 5 4 4 5 3 4 5 4 5 6 6 3 5 3 5 5 1 3 4 3 3 3 4 3 3 1 2 4 2 3 4 3 4 4 5 5 1 3 6 7 7 7 7 7 7 7 7 7 7 7 7 6 7 7 6 5 7 7 7 7 7 5 6 5 5 4 4 4 4 5 5 5 5 5 5 5 5 5 6 5 5 6 4 4 5 4 6 4 3 4 4 4 4 4 4 5 5 6 4 5 6 5 6 6 2 3 5 4 2 3 2 2 2 2 2 3 3 2 3 3 3 3 3 3 3 3 3 4 3 3 3 4 4 3 3 5 3 4 3 4 4 4 3 3 4 4 3 4 1 2 3 1 2 1 1 1 1 2 2 2 1 1 2 1 1 1 1 1 1 1 4 4 4 5 1 2 3 2 1 2 1 1 1 4 3 3 3 2 5 3 3 3 3 5 5 6 2 5 6 5 2 3 3 5 5 5 6 6 5 2 5 1 3 5 6 6 6 6 6 6 6 6 5 6 6 6 6 6 6 6 6 6 6 6 6 6 2 2 2 3 1 1 1 2 1 2 2 2 1 2 2 1 2 1 1 1 1 1 3 4 6 5 4 3 4 4 4 3 3 4 2 3 5 4 4 3 2 2 3 2 5 7 6 4 2 4 5 2 4 5 4 6 6 5 6 6 6 6 7 7 6 6 3 5 7 6 6 7 7 6 6 7 6 7 7 7 7 7 7 7 6 5 7 7 5 5 6 6 4 7 3 3 4 3 2 4 4 4 4 7 5 6 3 5 3 3 5 4 6 4 3 3 3 3 1 1 2 3 1 4 3 4 2 1 1 1 5 2 7 7 7 4 3 3 3 3 5 1 6 5 5 7 4 7 5 4 5 6 7 5 Page | 105 SRFHR0609035 P P P P P P P P P P P P P P P P P P P P P P 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 5 4 5 3 4 3 3 2 1 3 2 4 2 1 4 4 3 1 3 2 2 2 Page | 106 SRFHR0609035 Appendix 2: results Telesur manager’s survey E 1 E 2 E 3 E 4 E 5 E 6 E 7 E 8 E 9 6 7 7 7 6 7 7 7 7 7 7 7 6 7 6 7 7 6 7 7 5 5 7 5 6 6 4 6 7 6 6 7 7 5 6 6 7 7 7 7 6 7 7 6 6 7 7 6 7 7 5 6 7 7 6 6 4 7 5 7 7 7 7 7 6 6 7 7 7 7 7 7 6 6 5 7 7 7 6 7 5 7 7 7 6 6 4 7 5 6 7 7 7 5 7 6 7 7 7 7 7 7 6 7 6 7 7 6 6 7 6 7 7 7 7 6 4 7 6 6 7 7 7 7 7 7 7 6 7 7 7 7 7 7 6 7 7 6 7 7 6 7 7 7 6 6 6 7 7 7 7 7 7 7 6 7 7 7 7 7 6 7 7 6 6 7 7 7 7 7 6 7 7 7 7 6 6 7 7 7 6 7 7 7 7 6 7 6 7 7 4 7 6 7 6 5 7 6 7 7 6 7 7 7 7 7 6 6 6 6 7 7 7 6 7 7 7 7 7 7 7 7 7 7 6 6 7 6 7 7 7 7 7 7 7 6 4 7 7 6 6 7 6 4 7 6 6 6 5 6 4 7 5 7 6 4 7 6 7 7 7 7 7 6 6 5 4 6 6 7 E E E E E E E E E E E E E 10 11 12 13 14 15 16 17 18 19 20 21 22 7 7 6 6 7 6 7 7 6 7 7 7 7 7 6 7 7 7 7 7 7 7 7 7 7 6 4 7 6 7 6 7 7 6 7 6 6 6 7 6 5 7 7 6 6 7 7 6 7 7 6 7 7 6 6 6 4 6 6 6 7 7 7 5 6 6 7 6 7 7 7 7 7 7 6 7 7 5 7 7 7 7 7 7 7 7 4 7 6 7 6 7 7 5 6 6 6 7 6 7 7 7 7 7 6 7 7 7 7 7 6 7 7 6 7 6 4 6 6 6 7 7 7 6 6 6 7 6 7 7 5 7 6 7 6 7 7 7 7 7 7 7 7 7 7 6 4 7 7 6 7 7 7 5 7 7 7 6 7 7 7 7 6 7 6 7 7 7 7 7 7 7 7 7 7 6 4 7 7 7 7 7 7 7 6 6 7 6 6 7 6 7 6 7 6 6 7 7 7 7 6 7 7 7 7 6 4 7 7 7 7 7 7 4 5 5 6 6 6 7 7 7 5 5 6 2 7 6 7 7 6 7 7 6 5 6 4 6 6 6 5 7 7 5 6 5 6 6 5 7 6 6 6 6 6 4 6 5 6 7 6 7 7 7 6 5 4 7 6 6 6 7 3 5 5 5 5 5 4 7 7 6 7 7 6 5 6 6 7 7 6 6 7 5 4 5 4 6 6 6 5 7 7 6 6 7 7 6 4 7 6 6 7 7 6 6 7 5 6 7 7 7 7 6 5 4 4 5 6 6 7 7 7 6 6 7 7 6 5 7 7 7 7 7 6 7 7 6 6 7 7 7 7 7 7 6 4 7 6 7 7 7 7 6 6 7 7 7 5 7 7 7 7 7 6 7 7 6 7 7 7 7 7 7 7 6 4 7 6 7 Page | 107 SRFHR0609035 P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9 4 3 3 5 5 3 4 3 1 7 7 6 3 4 4 2 5 6 4 3 5 4 1 5 6 5 4 6 6 5 5 4 3 5 5 3 3 4 3 5 7 6 4 4 4 5 5 3 4 3 5 4 2 6 5 5 4 6 6 6 7 4 3 6 6 5 5 5 4 6 7 6 5 4 4 7 4 6 4 5 6 5 5 6 5 4 4 6 6 6 5 4 3 6 5 3 3 4 4 6 7 6 4 5 4 6 5 5 5 4 5 5 3 5 4 5 4 6 6 5 4 2 3 6 4 3 3 3 3 7 7 5 4 4 4 2 4 6 4 4 5 3 1 4 5 4 4 5 6 4 4 2 4 7 4 5 4 4 4 7 7 5 4 4 4 5 3 6 4 4 4 3 2 5 4 4 4 5 4 4 5 2 4 7 5 3 3 4 4 7 6 5 4 5 4 2 3 6 4 4 4 3 1 5 5 4 4 7 5 4 4 3 3 6 4 3 3 6 4 7 7 6 3 5 4 2 3 6 3 4 4 1 1 4 4 4 4 6 4 4 4 2 3 4 4 3 3 6 3 7 4 6 4 5 4 1 4 7 4 3 4 3 1 4 5 4 4 7 5 5 P P P P P P P P P P P P P 10 11 12 13 14 15 16 17 18 19 20 21 22 4 1 3 5 5 5 5 6 5 7 7 6 6 4 4 7 5 6 4 4 5 5 6 5 5 4 4 4 6 6 4 2 4 5 4 3 3 3 4 7 7 6 4 3 4 3 3 6 4 3 5 3 1 4 3 3 4 5 5 5 6 2 4 5 6 5 3 3 4 7 7 6 2 4 4 2 4 6 4 4 5 3 1 6 4 4 4 6 5 6 4 2 4 5 5 3 3 2 4 7 7 5 2 4 3 3 4 5 4 4 4 2 3 4 4 3 4 5 5 5 5 3 3 7 4 3 3 6 3 7 7 6 3 5 5 4 4 5 4 4 5 3 2 5 4 4 4 5 5 5 5 4 4 6 5 3 4 7 4 7 7 6 4 5 4 5 4 6 4 3 5 3 2 6 6 4 4 5 5 6 6 4 5 6 4 3 4 5 5 7 7 6 4 3 4 6 5 6 4 4 5 4 3 5 4 4 4 5 5 6 4 4 5 5 4 3 3 2 4 7 7 5 4 3 4 3 4 6 4 4 4 5 1 5 3 3 4 5 6 5 4 4 5 7 5 3 4 2 4 7 7 5 4 3 4 2 3 6 4 3 4 4 1 6 4 3 4 5 5 5 7 5 6 6 3 3 5 7 7 5 7 6 3 5 4 7 6 6 4 4 6 4 6 6 6 4 4 6 6 7 4 4 6 7 5 3 4 5 5 7 7 5 4 4 4 3 4 6 4 4 4 3 1 6 4 3 4 5 6 6 5 4 5 6 4 5 4 4 5 7 7 5 4 4 4 3 5 5 4 3 6 4 1 6 4 3 4 5 5 6 4 4 3 7 5 3 3 5 5 7 7 5 4 5 4 3 4 5 4 3 4 4 1 5 3 3 4 4 5 6 Page | 108 SRFHR0609035 Appendix 3: data service KPI’s Page | 109 SRFHR0609035 . Page | 110 SRFHR0609035