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BRAND. Broad Research in Accounting, Negotiation, and Distribution ISSN 2067-8177, Volume 1, Issue 1, 2010 88 The Relationship Between Service Quality and Customer Satisfaction in the Telecommunication Industry: Evidence From Nigeria Olu Ojo Department of Business Administration Osun State University P. M. B. 2008, Okuku Osun State, Nigeria E-mail: [email protected] Telephone no.: +2348034943925 Abstract This study investigates the relationship between service quality and customer satisfaction in the telecommunication industry with a focus on Mobile Telecommunication Network (MTN) Nigeria. A total of 230 respondents participated in the study. Research questions and objectives were set, alongside the hypotheses that were formulated and tested. Descriptive statistics comprising the simple percentage and tables were used for data presentation and analysis. Regression analysis and Pearson product moment correlation coefficient were employed in testing our hypotheses. The study reveals that service quality has effect on customer satisfaction and that there is a positive relationship between service quality and customer satisfaction. The researcher concluded by recommending that organisations should focus more attention on service quality, because of its effects on customer satisfaction. To ensure that customer satisfaction level is high, organisation must first of all know the expectations of the customers and how they can meet such expectations. Customer satisfaction helps in customer loyalty and retention. It has been discovered that it costs to attract new customer than to retain existing ones. It is also recommended that organisations should welcome suggestions from customers and more programmes should be designed to measure service quality and customer satisfaction . Keywords: Customer, Service, Customer Satisfaction, Service Quality, Customer Loyalty. 1. Introduction Service quality today has become not only the rhetoric of every business enterprise, but also occupies eminent position in every discourse. No business organisation can survive without building its customer satisfaction and brand loyalty; likewise no organisation can make a healthy living without meeting the needs of its customers. That is what organisations do: they serve people’s needs. Service quality helps in cementing the relationship between customers and the organisation and it is a two-way flow of value. This means that customer derives real value from the relationship which translate into value for the organisation in the form of enhanced profitability and sustainability over a long period of time. A number of empirical studies have been conducted on the subject of service quality and customer satisfaction (Cronin and Taylor, 1992; Spreng and Mackoy, 1996; Jones and Suh, 2000; Coyles and Gokey, 2002; Ranaweera and Prabhu, 2003; Choi et al. , 2004). Research on this subject shows that most of the studies were conducted in industrialised countries such as United State, the United Kingdom, and Japan. This implies that there is dearth of relevant literature on underdeveloped and developing countries, including Nigeria which has to be covered by research.
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