Structural Equation Modelling of Determinants of Customer Satisfaction of Mobile Network Providers: Case of Kolkata, India
Vol 26, No 4; Article by Shibashish Chakraborty and Kalyan Sengupta; December 2014
The Indian market of mobile network providers is growing at a rapid pace. India is the second largest market of mobile network providers in the world and there is an intense rivalry among existing players. The unprecedented growth of the market is mainly due to tariff reductions compared to tariff rates in 1994 which has made mobile telephones affordable for all groups of customers. In such a competitive market, in order to retain customers, mobile network providers need to satisfy their existing customers. Customer satisfaction becomes a critical issue. The objective of the study is to develop a customer satisfaction model of mobile network providers in Kolkata, a metropolitan city in India. The construct Flexibility was considered as a new determinant of customer satisfaction. In the study, data was collected from 554 respondents and pertinent analysis was made using multivariate techniques. The results indicated that Generic Requirements (an aggregation of output quality and perceived value), Flexibility, and Price are determinants of customer satisfaction. This study will offer insights for mobile network providers in Kolkata to understand the determinants of customer satisfaction. The fixed line telephone directory was the sampling frame; all the respondents considered in the survey had a fixed landline but there could be instances where customers subscribe only to mobile phones. It is also necessary to study other metropolitan cities of India to validate the results we have obtained for Kolkata. Identifying the determinants of customer satisfaction can offer valuable insights to mobile network providers and which determinants to focus upon in order to retain existing customers. This is the first study on determinants of customer satisfaction of mobile network providers in the city of Kolkata, India.