Dissertation: Service Quality Impact on BT Mobile Customers

This dissertation examines the impact of service quality on customer satisfaction and customer loyalty within British Telecom's (BT) mobile services. The study employs a mixed-methods approach, including primary data collection through questionnaires and secondary data from various sources, to analyze the relationship between service quality dimensions (reliability, assurance, tangibility, empathy, and responsiveness) and customer outcomes. The research focuses on employees from BT's operations department, exploring factors influencing customer satisfaction, such as technological development, value for money, and customer service. It also investigates how satisfaction, convenience, and expectations impact customer loyalty. The findings reveal a strong correlation between service quality, customer satisfaction, and customer loyalty within BT, highlighting the importance of strategies like Customer Satisfaction Surveys and educating customers. The dissertation also discusses the use of SERVQUAL and Customer Effort Score (CES) to maintain service quality. The study concludes with recommendations for BT to enhance its service quality and improve customer relationships.

Dissertation

EXECUTIVE SUMMARY
It is very well known that service users are most important stakeholders of the company
and it has very significant for firm to ensure their satisfaction level. The quality services has
become a key aspect of gaining consumer satisfaction level. From various researches, it has
determined that the business organizations have faced the issues related to customer satisfaction
and customer loyalty because of the poor service quality. So, there is a question raise that what is
the relationship between service quality and customer satisfaction and their loyalty.
Purpose: The aim of the study is to analyse the impact of service quality in business consumer
satisfaction and consumer loyalty in Mobile phone service provider organizations.
Methods: Probability random sampling method has been used to conduct the investigation where
20 sample units have selected from operations department of British Telecom. Primary and
secondary data collection methods have been chosen for gathering information from various
sources.
Findings: On the basis of the generated outcomes from data analysis, it has identified by the
researcher that most of the employees have worked in BT from last 3 years. According to them,
technological development, value for money, customer service, cost, quality, performance and
efficiency of the product and complaint management has some factors that affect customer
satisfaction towards BT Mobile services. Along with this, satisfaction, convenience, expectations
and customer service have few elements that have brought the shift in customer loyalty for cited
organization. Further, the scholar has determined from the data analysis that in terms of service
quality aspect, BT mobile services have reliability, assurance, tangibility, empathy and
responsiveness. Beside this, Customer Satisfaction Surveys and educate customers has two
strategies that followed by BT Company to maintain customer satisfaction and loyalty. While,
SERVQUAL and Customer Effort Score (CES) has two major methods that followed by the cited
company in order to maintain service quality of Mobile services. In addition to this, the
researcher has determined that there is a string relationship between customer satisfaction,
customer loyalty and service quality of BT Company.

ACKNOWLEDGEMENT
The present report is the significant reflection of the efforts made by various individuals
and this is my responsibility to pay a humble gratitude for their time and efforts they have given
to me. I am thankful to my mentor and all the people who have given me support and guidance
for completing the dissertation. I am grateful to my team members, family and friends who
helped me in all possible accords. I would also like to thank my parents who supported me while
conducting this particular study. The combine efforts of all these people helped me in
successfully completing the research in the desired manner. Branding plays a critical role in
developing high market attraction and enhancing the market sales as well. Packaging helps in
developing the brand identity for the product. Apart from this, company can use the packaging in
most creative form for the purpose of influencing the customers towards it.

Table of Contents
EXECUTIVE SUMMARY..................................................................................................................2
ACKNOWLEDGEMENT....................................................................................................................3
CHAPTER 1 INTRODUCTION..........................................................................................................6
1.1 Introduction................................................................................................................................6
1.2 Rational of doing the research...................................................................................................6
1.3 Aim.............................................................................................................................................7
1.4 Objectives..................................................................................................................................7
1.5 Proposed methodology..............................................................................................................7
1.6 Limiting and delimiting factors.................................................................................................8
1.7 About the organization...............................................................................................................8
CHAPTER 2 LITERATURE REVIEW...............................................................................................9
2.1 Introduction................................................................................................................................9
2.2 Service quality...........................................................................................................................9
2.3 Customer satisfaction...............................................................................................................10
2.4 Customer loyalty......................................................................................................................10
2.5 Relationship between quality service and customer satisfaction.............................................11
2.6 Relationship between quality service and customer loyalty....................................................11
2.7 Ways by which British Telecom can maintain mobile service quality in order to maintain
customer satisfaction and customer loyalty...................................................................................12
2.7 Conclusion...............................................................................................................................12
CHAPTER 3: RESEARCH METHODOLOGY................................................................................14
3.1 Introduction..............................................................................................................................14
3.2 Research approach...................................................................................................................14
3.3 Research philosophy................................................................................................................15
3.4 Research design.......................................................................................................................15
3.5 Research type...........................................................................................................................15
3.6 Data collection.........................................................................................................................16
3.7 Sampling..................................................................................................................................16
3.8 Data analysis............................................................................................................................17
3.9 Ethical consideration................................................................................................................17
3.10 Research limitations...............................................................................................................17
3.11 Reliability and validity...........................................................................................................18
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CHAPTER 4: DATA ANALYSIS.......................................................................................................19
4.1 Introduction..............................................................................................................................19
4.2 Thematic analysis.....................................................................................................................19
CHAPTER 5: CONCLUSION AND RECOMMENDATION...........................................................27
5.1 Conclusion...............................................................................................................................27
5.2 Recommendations....................................................................................................................28
REFERENCES...................................................................................................................................29
REFLECTIVE STATEMENT............................................................................................................32
CONTEXTUALIZATION STATEMENT.........................................................................................33
APPENDIX........................................................................................................................................35
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CHAPTER 1 INTRODUCTION
1.1 Introduction
The concept of quality, productivity, efficiency and growth are the most challenges for the
organizations to survive in the industries. The demand related to the augmentation and survivals are
intensifying by the need to attract and retain customers. In the business, service users are the main
focus of the companies (Iddrisu, Noonib, Fianko and Mensah, 2015). The success levels of
enterprises are highly depended on the understanding and meeting the needs of end users. In the
UK, value provision has always suffered a setback as utility firms have always been praised for
good quality services. In this context, one of the important utilities in UK economy is mobile phone
services. It has played a very important role in the growth of the economic condition of any nation.
The contribution of this industry cannot be overemphasised because it is the way by which all
regular transactions and activities are undertaking. This helps the organizations in decision making,
organizing plans, instructing the work to the employees, providing feedback by the customers,
exchange of information with the business clients and develops as well as maintains business
relationships (Ahmad, Hussai and Rajput, 2015). So, it can be said that all political, social,
economic, culture, commercial etc activities are completing with the application of mobile phone
services. In this context, service quality has been found as a competitive tool for To analyse the
impact of service quality in business consumer satisfaction and consumer loyalty in Mobile phone
service provider organizations of the UK. This is even much more prominent in the present era of
highly globalized and competitive markets. Mobile phones are becoming more important part of the
people life and with the passing of time; it makes the life of users simpler (Deng, Lu, Wei and
Zhang, 2010). On the other hand, mobile service providers largely depend on the customers to
survive in the market. In this regards, consumer satisfaction and consumer loyalty are essential for
mobile service deliver organizations. This dissertation will investigate the impact of service quality
in business consumer satisfaction and consumer loyalty in of British Telecom of the UK.
1.2 Rational of doing the research
The importance of customers in the business process has influenced the organizations to
always carry out the research on the services users to find out their needs and requirements. It has
been proven that when a company continuously satisfy its consumers then they enjoy high retention
level and huge amount of profit because of increase customer loyalty. This is the only reason why
all mobile service companies are working hard every day to win the trust and heart of the service
users by delivering quality services (Yuksel, Yuksel and Bilim, 2010). This has helped in increased
the number of those customers who shows the loyalty towards the particular brands and achieve the
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extent satisfaction level. When the consumers have good perceptions about the mobile service
provider brand then they always go with the same company in the future to use other mobile
services. Customer satisfaction and customer loyalty are major issue for mobile service provider
organizations because the problem related to satisfaction has affected the success level of business
in the market. From the following research, the researcher will try to shed lights on service quality
which is one of the factors that help the mobile service companies to attain the customer satisfaction
and their loyalty (Kassim and Asiah Abdullah, 2010).
1.3 Aim
To analyse the impact of service quality in business consumer satisfaction and consumer
loyalty in Mobile phone services: A study of British Telecom, UK.
1.4 Objectives
 To understand the meaning of service quality, customer satisfaction and customer loyalty for an
organization.
 To determine the significant relationship between service quality and customer satisfaction for
British Telecom
 To explore the significant relationship between service quality and customer loyalty for British
Telecom.
 To suggest the ways by which British Telecom can maintain mobile service quality in order to
maintain customer satisfaction and customer loyalty.
1.5 Proposed methodology
In the context of the present dissertation topic, the researcher will use different research
methodologies to attain the research objectives. So the proposed methodologies with the respect of
current study are as follows:
Research approach: For the current study work, the scholar will use inductive research
approach because there will no hypothesis form in research. There will objectives formulate that
will help in answer the research aim.
Research philosophy: Interpretivisim research philosophy will follow by the researcher in
the present investigation because it will aid in determine the relationship between mobile service
quality, customer satisfaction and customer loyalty in the context of British Telecom (Flick, 2015).
Research design: Here, the investigator will use causal research design in order to explain
the impact of quality of mobile services of British Telecom on retain the customer loyalty and met
the consumer satisfaction level.
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Research type: The scholar will adopt qualitative research type to present the responses of
the respondents in numerical form. It will helpful in examine the relationship between mobile
service quality and customer satisfaction level along with their loyalty (Gast and Ledford, 2014).
Data collection: The researcher will use both primary and secondary data collection
methods to gather the information on the present investigation. The primary data will gather from
the questionnaire that will contain both open and close ended questions. On the other hand,
secondary data will collect from different sources such as books, articles, journals, previous
researches, British Telecom customer feedback and review etc.
Sampling: Probability random sampling method will be used by the researcher for present
research work in order to reduce the chances of biasness with the respondents. The 20 sample units
will take into the consideration which will be employees of British Telecom (Mackey and Gass,
2015).
Data analysis: In order to analyze the data, the scholar will use thematic method. In this, the
data and its outcomes will represent in the form of charts, figures, diagrams etc. Along with this, it
will deliver a great insight to the researcher to understand the relationship between quality services,
customer satisfaction and customer loyalty in British Telecom context.
1.6 Limiting and delimiting factors
relating to the present study, the researcher is herby require to individually approach to
management of British Telecom in order to collected relevant information from them. This has the
very time consuming process which may create hurdle for the study. Fund is also a limiting factor or
the present investigation because to meet with the respondents, travel to organization more than one
time, take permission to access paid sites etc, the researcher will require funds. On the other hand,
delimiting factors for the present research are scope of the study, settling limits on the sample size,
response formats related to data collecting methods etc.
1.7 About the organization
British Telecom is a British multinational telecommunication service provider company
which has situated in London, UK. It has operated its business in more than 180 nations across the
world. The numbers of employees in the present time are 102,500. The cited company has
controlled a number of large subsidiaries such as BT Ireland, BT Italia etc. Company has listed in
London Stock Exchange as well as in New York Stock Exchange. It was established in 1969 and
over the time, it has grown in UK telecommunication industry. The products offers by British
Telecom are Fixedline telephony, Mobile telephony, Broadband internet, Fibre-optic
communication, Digital television and IT services. Till the 2015, the revenue of the cited company
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in 2015 has £17.851 billion and the profit has £2.135 billion.
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CHAPTER 2 LITERATURE REVIEW
2.1 Introduction
The present dissertation is based determine the impact of service quality in business
consumer satisfaction and consumer loyalty in Mobile phone services where British Telecom of the
UK is taking into the consideration. Company is focusing over improving the quality of services so
that it becomes easy to meet the service users’ satisfaction level with their loyalty (Ryu, Lee, and
Gon Kim, 2012). The current section has related to literature review where different points
regarding the investigation will discuss. For this, some previous researches, articles, journals etc
will be considered to critically evaluate the collected information with the respect of the selected
research topic.
2.2 Service quality
According to Ryu and Han, 2010, “service quality is a multi-dimensional concept that
focuses over the customer judgements regarding particular service or product of an organization”
(Ryu and Han, 2010). It can be seen as the difference between service users’ expectations and
perception for the services that helps the companies to build a competitive advantage base. This
presents that delivering quality service confirms about the consumers expectation and aids in to
make sure that whether perceived services delivery met customer hopes or not. On the other hand,
Flint, Blocker and Boutin, 2011 has stated that “the perception of quality services related to loyalty
of end users” (Flint, Blocker and Boutin, 2011). There are two main reasons that explore breakdown
relationship between customers and the company and these are natural and artificial causes. In this
context, it becomes important for the organizations to eliminate both factors to increase and gain
customer loyalty for long term duration. In the context of above statement, Eid, 2011 has asserted
that “service quality of a product or a service makes an impact in the terms of development of
customer loyalty” (Eid, 2011). It is also important for meet the satisfaction level of service users
which responsible for the gain the customer loyalty. The aim of every organization in delivering the
quality services to the users so that they can get the value from the product against the paid amount.
As per the view point of Santouridis and Trivellas, 2010, “measuring service quality is a better way
to decide whether the services are worth full or not and whether it will satisfy the needs of the
customers or not” (Santouridis and Trivellas, 2010). The level of service quality has one of the most
important reasons for the companies to get the success in the business and survive in the market
place. Along with this, it is also one of the factors that have defined the customer satisfaction level
and their loyalty towards the brand.
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2.3 Customer satisfaction
According to Siddiqi, 2011, “those who are buying the services or goods that offer by the
companies are called customers” (Siddiqi, 2011). It can be considered as a stakeholder for an
organization that gives payment in the exchange of offer products with the aim o completing the
needs and requirements. When a service user is contenting with service or product then it is called
satisfaction. Munusamy, Chelliah and Mun, 2010 has stated that “it can be defined as a person’s
feeling in the form of pleasure or disappointed” (Munusamy, Chelliah and Mun, 2010). This thing
has affected the performance of the goods of the company either in negative or positive manner. So,
in the other words, satisfaction can be stated as pleasure derived by someone after the consumption
of services or products that offered by other person or a group. This can be a state of being happy or
with the situation. Satisfaction level varies according to person to person because it based on
consumption of utility and the perception regarding this. In the context of above statement, Fornell,
Rust and Dekimpe, 2010 has pointed that “for an organization, the client happiness is the most
essential thing which can create a good image in the market place” (Fornell, Rust and Dekimpe,
2010). The satisfaction level of the users assists the companies to take decisions who to improve
services quality and other business processes. To gain the high customer satisfaction level, the
organizations have to satisfy the customers which is more important as compare to gain loyalty of
them. On the other hand, Iddrisu, Noonib, Fianko and Mensah, 2015 has given attention that “the
firms should treat their services users in a right way because most of the time, consumers not openly
dissatisfaction towards the offer products and services” (Iddrisu, Noonib, Fianko and Mensah,
2015). This thing has increase the number of complaints from the end users side that may work as a
hurdle for the success of the business. It has lead to raise the dissatisfaction level in the customers.
2.4 Customer loyalty
Ahmad, Hussai and Rajput, 2015 has pinpointed that “customer loyalty can be defined in
two different way: one is related to attitude and second is behavioural” (Ahmad, Hussai and Rajput,
2015). When different feelings create in individuals after consuming the services then it is called
customer loyalty in the terms of attitude. But when a person purchase the same goods again then it
is also called consumer loyalty but in the terms of behavioural aspect. In the support of the above
statement, Deng, Lu, Wei and Zhang, 2010 has stated that “customer loyalty has developed over the
time when the offer products of a company meet the satisfaction level of individual” (Deng, Lu, Wei
and Zhang, 2010). The cost of attracting the new consumers is higher as compare to the cost of
keeping happy to existing service users. The frequency to which a consumer demonstrates towards
repeat purchase behaviour for a particular commodity creates a positive attitude in the direction of
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service providers.
On the contrary, Yuksel, Yuksel and Bilim, 2010 has defined his view that “customer loyalty
is a multi-dimensional construct which covers both positive and negative response” (Yuksel, Yuksel
and Bilim, 2010). It is not necessary that loyal customers are always satisfied users. There are
various factors which has brought the variations in the satisfaction level of the consumers with the
time. Service quality, value added services, customer support services etc some elements that have
affected loyalty of the consumers towards a company. If the firm delivers the good quality services
to its customers then it becomes easy to reduce their retention with the time.
2.5 Relationship between quality service and customer satisfaction
As per the viewpoint of Ahmad, Hussai and Rajput, 2015, “there is a strong relationship
between quality service and customer satisfaction” (Ahmad, Hussai and Rajput, 2015). With the
application of SERVQUAL model, it has determined that difference between consumer expectations
regarding the performance of service providers and their evaluation of actual performance of
business has helped in creating the perception of quality of products in the mind of service users.
So, it becomes important for the organizations to identify the level of quality services with the help
of service quality assessment process. In this context, Munusamy, Chelliah and Mun, 2010 has
stated that “when mobile service provider companies raise their quality of services than it will leads
to increment in the customer satisfaction” (Munusamy, Chelliah and Mun, 2010). The high degree
of service quality has made overall good impression over the consumers that will aid in creating a
good image of mobile service providers in the service users mind.
2.6 Relationship between quality service and customer loyalty
According to Siddiqi, 2011, “quality services of mobile services and customer loyalty has
depended on each other” (Siddiqi, 2011). Implication of SERVQUAL model on this statement has
shown that when a company delivers a quality services to its customers then it becomes easy for
management to gain the loyalty of service users. This thing has assisted in increase market share
and become competitive in the marketplace. In the context of mobile service providers, the
companies of the UK are trying to bring the improvement in mobile services so that more and more
customers can use their services. This strategy has very helpful in gaining the customer loyalty at
huge amount. On contrary, Fornell, Rust and Dekimpe, 2010 has stated that “SERVQUAL model
has helped in determined five major gaps that may causes customers to experience poor service
quality which has reduced their loyalty towards a mobile service provide brand” (Fornell, Rust and
Dekimpe, 2010). These gaps are between management perception of customer expectations and
customer expected services, between management perception of customer expectations and services
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