Consumer Satisfaction in Telecommunication in Australia: A Case Study of Macquarie Telecom Company

This study explores the factors affecting customer satisfaction in the telecommunication industry in Australia, with a focus on Macquarie Telecom Company. It examines the relationship between customer satisfaction and IT outsourcing, service quality, and customer loyalty drivers.

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BUSINESS RESEARCH
Student’s name
Subject
Date

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CONSUMER SATISFACTION IN TELECOMMUNICATION IN AUSTRALIA
(A CASE STUDY OF MACQUARIE TELECOM COMPANY)
Contents
List of abbreviation....................................................................................................................3
Introduction................................................................................................................................4
Project objectives....................................................................................................................5
Literature review........................................................................................................................6
Customer Satisfaction.............................................................................................................6
Factors affecting customer satisfaction..................................................................................6
Customer satisfaction in Macquarie Telecom........................................................................8
CS in Telecommunication Industry........................................................................................8
Customer satisfaction and IT outsourcing relations.............................................................10
Influence of service quality (SQ) on customer satisfaction (CS).........................................11
Customer satisfaction and loyalty drivers............................................................................11
Conclusion................................................................................................................................13
Recommendations of the study................................................................................................13
Appendix..................................................................................................................................16
APPENDIX I:.......................................................................................................................16
INTERVIEW SAMPLE...................................................................................................16

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List of abbreviation
CS- customer satisfaction
SQ- service quality
CM- corporate image
IT- information Technology

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Introduction
With additional market economy expansion in Australia and contradiction of the telecom
industry monopolization, rivalries between telecommunication firms have turned out to be
more and more passionate. In improving the competition capabilities and sustainable growth,
customer satisfaction and customer facility were cited a lot in the telecom operating
management lately, even in some corporations, customer satisfaction (CS) has been agreed as
an important key performing indicator. Pittayachawan and others (2016) state that heightened
customer service and customer satisfaction advances the company’s overall presentation.
Preceding studies show that there is significant optimistic relationship amid customer
satisfaction and a company's financial concert. (Mothersbaugh et al., 2015)." However, the
appreciative of the constructs mediating the link among CS and firm effectiveness is still
limited and topical researches specify the mechanism of this positive relationship as
generated from customer satisfaction to Customer Loyalty, and then to Productivity.
Studies in existence find that higher stages of CS amount to greater customer loyalty that in
turn has a positive influence on profitability. Other scholars think is a reason for the word of
mouth outcome, they find that pleased customers tend increasing profitability by providing
recent referrals through constructive mouth worlds.
The sample firm considered, comprises the case study of Macquarie Telecom Company
which is one of the major telecommunication companies in Australia enhancing accounting
and IT outsourcing regarding firm scopes and volumes. The company offers
telecommunication services to their customers all over the nation. Macquarie Telecom has
staffs who undertake the daily activities of the company in ensuring they met the targeted
achievement within the stipulated period.

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Project objectives
Preceding researches have established that the main risk of CS is the difficulty of achieving
proper administration oversight and control from a detachment. However, suitable
governance frameworks, risk supervision systems, and controls can recognize and alleviate
risks (Höglund and Sundvik, 2016). That statement solicits the question of;
• What are the dangers of customer not enhancing satisfaction?
• What establishes proper management supervision and control from a distance?
• What are adequate governance outlines, risk management schemes, and controls of
ensuring customer satisfaction?
This report attempts at answering these questions and delivers an inquiry into risk and risk
extenuation in facilitating CS. Mitigation embraces the visible control tools and less visible
social interfaces and relationships that reinforce trust in outsourcing (accounting) strategies.
The study was conducted with the assistance of interviews with executives and the entire
workforce. The study also is investigating the importance, factors, and customer satisfaction
fallouts in the Australian telecommunication production. Explicitly, the research pursues
replies to critical queries enhanced from the prose and an amount of contentment abstract and
investigative representations, as drawn. “Contentment is a necessary depletion condition as it
is strengthening, gratifying experience.” This declaration primes the prominence of
customer’s satisfaction. On similar perspective, the research also specifies that satisfaction
information is correspondingly significant to companies because contentment primes in
profitability over escalations in recurrence acquisitions and optimistic word spread. On the
executive glassy, client contentment information are utilized in drafting statute. For instance,
in America, such information steered to some legislature Acts such as the Drug, Food and
Cosmetic Act, the Flammable Fabric Act, and Child Protection Act.

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Literature review
Customer Satisfaction
According to Sweeney (2016), client satisfaction has widely premeditated by marketing
researchers who defines satisfaction as individual’s sensation of preference or dissatisfaction
resultant as an equation of a creation’s apparent enactment in relative to ones anticipations.
Others research express satisfaction (customer) as the sensitivity or customer’s assertiveness
towards a service or product after its utilization. Literature indicates that researches
concerning client satisfaction have applied prospects disconfirmation archetypal undertaking
customers assess merchandise presentation by matching its alleged performance with ones
anticipations. When seen presentation equals or surpasses expectations, the customer
develops satisfaction. Contrariwise, when apparent enactment is below their prospects, the
client’s converts been disgruntled leading to fewer purchase volumes that in turn reduces the
profit realization by the firm. Gratified customers will purchase recurrence, be product
devoted, deliver up oral publicity, and these all improve transactions in the market (Gerpott,
Thomas, and Hoffmann, 2008). Disappointed customers may break from acquiring that
merchandise, spread adverse oral advertising, and may circumvent the invention producer
and the merchant. All that above specifies the reputation of identifying customer gratification.
However, it turns out becoming a difficult task because clients’ expectations vary from one
client to the other thus becoming challenging to amount and businesses come into realization
immediately after product delivered. Notwithstanding the scuffle and its measuring cost,
purchaser contentment rests as a key businesses concern since it is considered as an important
instrument for securing a modest advantage.
Factors affecting customer satisfaction
Several aspects have an impact on customer satisfaction; the price is among them. The study
by Höglund and Sundvik (2016) states that price is utilized as a gauge of product quality that

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results in better prospects from the product and defines higher gratification. The study shows
that price discernments directly affect satisfaction verdicts as well as indirectly through
acuities of price equality. Reasonability of price and CS are significantly related to each
other. The clients can shift to any other cellular facility provider offering reasonable prices
this divulges that the consumers can be apprehended on to for a lengthier duration by
presenting them with fair prices so; the justice of the price causes the CS.
The business brand image is a valued intangible capital that is stiff in imitation, and it can aid
an organization in achieving a sustainable and higher financial performance. The corporation
image is well-defined as the total impress that the community has for the corporation. From
the establishments’ perspective, being dependable, professional and inventive, having social
influence and esteeming the customers are the rudiments of forming the company image.
Rychalski and Palmer (2017) specify that the image is a crucial element in the CS model. The
image is predicted to have a constructive relationship towards the client expectations,
customer gratification and client’s loyalty to the firm. The rapid technology evolution is an
aspect of challenging several companies in satisfying their customers and to get their loyalty
through advanced products. The invention utilized for strategic placement toward CS,
commitment, and in achieving market impending that upsurges the market portion of the
establishment. Innovativeness is designated as a course of converting the creation or idea into
merchandise that customer purchase and delivers financial benefits to its suppliers. This
notion that has to change into an innovation into a product or facility must have the
excellence to satisfy some precise needs of the clients and can be can be executed at an
economical price to be transformed into an innovation. Service innovativeness, or the
tendency to announce service innovations to please customers and progress substantial value
at current risk, has become a critical administrative capability.

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Customer satisfaction in Macquarie Telecom
The company here enjoys CS benefits brought by the outsourcing strategy as it is portrays
cost advantages aspects. A study by Wahby (2017) states that costs advantage is the most
palpable and visible advantage relating to savings brought by IT outsourcing. Some countries
offers low performing costs that the local countries hence businesses prefers to outsource
their accounting aspect reason that the process will lower the costs as when performed in the
mother nation. Outsourcing aspect provides services that are quality and that ensures that low
costing means not low quality. Another important aspect is the increased efficacy in the
business. Outsourcing companies tends performing their functions efficiently due to
specialization in the segment which in turns brings about high efficiency in the business.
They perform their job better with their familiarity and understanding of the sphere thus
leading to increased productivity and competence in the procedure. Outsourcing tends
permitting company focussing on core areas as it will free the energies and enable focus in
building the business brand.
CS in Telecommunication Industry
The research conducted examined the elements of CS by interrogating 36 staffs from
Macquarie Telecom Company. The study establishes that promotional worth, the excellence
of customer facility at sprees and company image perform the most significant character in
CS determination. In a similar aspect, a study conducted by Alom, Khan, & Uddinl (2010)
interviewed sixty college scholars in, correspondingly phones operators, in identifying the
causal features in choosing telecommunication suppliers. Research study outcome revealed
two sides, first brand appearance and second apparent rate of making calls, to acquire most
significant inspiration on the clients’ assortment pronouncement of their service provider in
the nation. With satisfaction regards, the study findings advocate that satisfaction theatres a

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crucial character in shaping client obligation for the providers hence having a real connexion
between cultivating customer satisfaction and acquisition of customer allegiance (Blut,
Frennea, Mittal, and Mothersbaugh, 2015).
This research says that gratification certainly does not lead to allegiance, whereas service
quality create sturdily and powerful associated with allegiance. Nevertheless, it can be
observed from the verdicts of this research that CS is by now constructed further into facility
quality. Customer’s remark service quality confidently if they are pleased with the supplier of
the particular service and with the existing facilities to them. Reputation of service quality in
the selection decision for also emphasized by Sofian and others (2015) when they piloted a
research of ten consumers from main metropolises in Australia. The study settled that system
quality is among crucial issues in general quality (service). In adding to that, the research
established that price theatres a significant part in the selection norms for Macquarie telecom
company customers. Regarding retaining customers and attracting new customers, Macquarie
Telecom Company must deliver service with sensible worth deprived of any concealed
expense, the two great vital elements of CS (Benjumea-Arias et al., 2017)
A vital significance of satisfaction (customer) ought to be retaining of customers. The
company will not be in a position of retaining their clients without sustaining them. In
telecommunication productiveness, customer holding regulates the survival and success of
that providers (service). This led owing to violent competition, the great appealing cost of
new customers, and the resemblance of amenities presented by the staffs in the telecom
industry. Concerning some researches, the central stir element was established to be
customer’s dissatisfaction on price evaluating and customer retention from a loyalty
perspective (Saeidi et al., 2015). It was examined that the relations between service quality,
client pleasure, corporate image and loyalty in Australia. From the research, results exposed
that satisfaction of customer’s theatres a unique arbitrating character in relations from SQ,

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CM, and professed loyalty worth. Loyal clients tend to remain lengthier with their service
suppliers as compared to unloyal customers. In this respect, it was argued that personal
variances ought to theatre a part in CS, dependability, and customer withholding. The
research of So, King, Sparks, and Wang (2016) verify that argument, the results revealed that
gender, time of life, and income dissimilarities disturb customers’ gratification, allegiance,
and preservation. For instance, females are regarded as extra satisfied customers and less
probable than men in switching their telecommunication services.
Customer satisfaction and IT outsourcing relations
Both aspects (customer satisfaction and IT outsourcing) tend considerations as vast and
massive topics of research, and many types of research related to customer satisfaction are
steered in the area of service sceneries. In outsourcing theory, consumer satisfaction group
has the critical position. It is grounded on the evidence that the profit tends enhancement
through the consumers’ satisfaction demands process. Further debate has reflected whether IT
outsourcing is the root of satisfying customers in the organizations. Then it assists in the
identification of the relationship between the two aspects under consideration. According to
D’Alessandro (2015) increased level of customer satisfaction declines the chances that
customers will be indicating the defects in the quality. In service sceneries, it would bargain a
better perception of the relative reputation of service quality elements as benefit of
outsourcing by developing more inclusive models of customer satisfaction driving
aspects/features. Great similarity amid the customer satisfaction and IT outsourcing is
observed from the study and Macquarie telecom company needs presenting both the aspects
in winning the loyalty of their customers hence bringing up their satisfaction.
In academics, both concepts are recognized as different and independent whereas an
extensive literature study displays that both perceptions are distinct theoretically but closely

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related to one another and any rise in one (product quality) leads to growth in satisfaction.
(Sweeney, Armstrong and Johnson, 2016).
Influence of service quality (SQ) on customer satisfaction (CS)
To gain merchandises and service a consumer applies both money and properties in the form
of time, vigor, and effort (Blumberg et al., 2017). Company service and customer satisfaction
both have long received considerations that they are crucial for achievement and survival in
the current telecommunication market. But it is likewise important to recognize what donates
to customer satisfaction that could be a basic in achieving the company’s target. Consumers
are currently requesting higher quality in merchandises than ever before. What they levied for
quality is disputably the most important purchaser trend. The primary feature of Macquarie
Telecom Company lies on quality focusing, the manner/strategy of production and being
presented to the final consumer.
The research of Rychalski and Palmer (2017) suggests that continuous developments in the
quality of services professed according to the consumer expectations moves the satisfaction
level and customer’s acuities about the company in consideration. As per (Bhatti et al. 2016)
expression, quality is publicised having a positive influence on general customer satisfaction.
So the expectations of quality of the outcomes on customer satisfaction are constructive thus
having a significant impact. The primary emphasis of both academic and executive effort
focused on shaping what service quality meant to clients and their retention.
Customer satisfaction and loyalty drivers
This report discovers the role of reliance and control in mitigating risk in Macquarie Telecom
Company outsourcing of accounting activities. In the past (the 1990s), reductions in cost and
amplified capacity of broadcastings and computing facilitated the international outsourcing of

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many business activities far away to places where the labour source is both inexpensive and
plentiful.
The worldwide IT industry has led to the expansion of risk mitigation of various procedures
of software development. Structured undertakings such as programming that can be precisely
and moderately unambiguously quantified were the first to be outsourced to other
establishments. Activities in other business areas have shadowed including transaction
dispensation, data input, data transcript, and call centres in and outbound (Ceric et al., 2016).
The research of Höglund and Sundvik, (2016) states that over time, outsourcing dealers and
clients have amended their understanding of how subcontracted activities may be commenced
remotely. Unavoidably, clients target taking advantage of labor charge arbitrage that has led
to customer satisfaction categories previously considered unsuitable. Ever since the late
1990s, this has encompassed more refined accounting meanings, beyond modest data input
and transactions. However, the outsourcing of accounting presents noteworthy risks through
the perspective of poor presentation and vendor speculation.
Administrations, currently, not only gaze for cost-effective resolutions to systematically
course non-core accomplishments like accounting and payroll facilities but also have
expectations in adding value to attain better control and understanding of cash flow and
thereby enhancing making verdicts that are informed. In spite of being deliberated as non-
core, accounting service area forms an essential part of an organization’s operative
capabilities and methodical functioning. A study of Islam and others (2016) states that,
subcontracted accounting and payroll processing services aid in streamlining core business
operations of a Macquarie Telecom company.

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Conclusion
This research conducted aimed at assessing customer satisfaction in telecommunication
industry where a case study of Macquarie Telecom Company was enhanced in meeting the
requirements. Also, evaluate service quality and the association between SQ aspect and CS in
the Macquarie telecom zone. It also hunted in identifying vital drivers of customer’s delight
in the expending the service quality facets. Several different variables enhance customer
satisfaction. The study result indicates that most customers are pleased with Macquarie
services offered to them (Rychalski 2017). From the research, it is quite apparent that staffs
necessities are met, and they are gratified with accounting and IT outsourcing of Macquarie
telecom.
Recommendations of the study
The results displayed in conclusion section can help Macquarie telecom to specify their
strategic planning in improving service quality and achieving customer satisfaction with the
determination to grasp the first customer satisfaction level and also constructing strong
association/relationship with customers.
In ensuring high levels of satisfaction to their customers, Macquarie telecom Company needs
to give an immediate reply in dealing with their customer complaints and hence have to take
appropriate and instant decision to resolve the problematic customer instances, with modern
customer grumbles handling and grievance rectified system.
Not only Macquarie telecom, but all businesses in telecommunication industry requires to
strengthen complaints resolution apparatuses and provide teaching in equipping their staff
with necessary abilities to better attend the customers since the whole important matter is
winning customer’s trust and focus on developing customer grievance resolution structure.
There has to be an aspect of balancing between expanding the telecommunication service and

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affording predictable service quality that gratifies customers (Frennea 2014). Outsourcing
brings about quality in the business as the staffs concentrates on their functions well.

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References
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Appendix
APPENDIX I:
INTERVIEW SAMPLE
i. The data taken from the interview will be secretive and purely for educational
resolves.
ii. The sample objects at establishing the subcontracting performs and executive
presentation in Macquarie Telecom.
PART A
: RESPONDENTS DEMOGRAPHICS
(Fill in the outright places and mark once in the underneath provided sets of all queries)
1. Give pleasure to specify your age group? (years)
21-30 [ ]
31-40 [ ]
41-50 [ ]
Above 51 [ ]
2. Please point out your sex category:
Male [ ] Female [ ]
3. Please indicate your education level
Masters [ ] Certificate [ ]
Bachelor’s degree [ ] Diploma [ ]
Others (specify).............................
4. Period working in the company? ...............................................................
5. Present position in the company? ..............................................................
6. For how long have you been in your current position? .............................
7. For how long has the establishment been in existence? ............................