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A study on the customer satisfactions towards the

services provider in Malaysia. A comparative study of Digi

and Maxis Company.
1.0 Introduction to Customer Satisfaction
Customer satisfaction is defined as the number of customers, or percentage of total customers,
who are recorded experience with a company, its products, or its services (ratings), surpasses
required satisfaction goals. According to Financial Times (2015) state that satisfaction is as an
implication following a depletion experience. Most of the research approve that the confirmation
or disconfirmation of pre-consumption hopes is the key element of satisfaction. In an aggressive
marketplace where businesses compare for customers, customer satisfaction is consider as a key
differentiator and increasingly has become an important tool of business strategy.


organizations, customer satisfaction rankings can have strong outcomes. They concentrate on
employees on the importance on satisfying customers prospects. Moreover, it is important for
businesses to essentially accomplish customer satisfaction.

1.1 Introduction to Malaysias Telecommunication Sector

Malaysias telecommunication sector has been seen massive
essential transformation in provisions of industry set up and
technological development in the final four times. In the economic
policies and directive, the drive for transfer and liberalization has
been very important in the industry specifically over the last two
times. According to Lee,C. (2002) say that recently, the industry
claims several private telecommunications company even though
the national telecommunication service, Telekom Malaysia (TM) is
still the directing creature in the industry landscape. More ever
contingent on the product (service), the market leader varies. The
fixed line sector may see a virtual dominance of TM but in the
areas of mobile services and content providers, market
competition is stronger.

Background of Digi Company

Digi.Com Berhad is the third biggest mobile operator in Malaysia and its listed in Bursa
Malaysia. Digi also part of the Telenor Group, which is world telecommunication provider. Digi
deliver mobile voice, internet and digital services to 11 million customers around in Malaysia.
DiGi Telecommunications is a mobile phone service provider in Malaysia using the dialing codes
of "016, 014, 010, and 011.On 24 May 1995 DiGi became the first Telco in Malaysia to launch
and operate a fully digital cellular network. They were also the first to offer GPRS (2.5G) and
later EDGE (2.75G) in Malaysia in 14 May 2004. In June 2006, DiGi also launched the first
Malaysian branded entertainment TV program, agent onn 016 on TV3 (Malaysia) channel.
Through its mission of 'Internet for All', DiGi is obligated to driving Malaysia's growth by
creating a mobile Internet atmosphere which is assist true connectivity, creating socio-economic
development and aiding businesses to prosper. Besides that, DiGi continues to be a gamechanger in the Malaysian telecommunications industry with a solid history of creative products
and services while being a mentor in progressive and liable business attempts. DiGi.Com Berhad
starts to run in Malaysia in May 1995. DiGi is presently one of the primary operators in the
prepaid segment, which is the biggest consumer segment in the Malaysian mobile market.
Background of Maxis Company
Maxis Communications Berhad is the leading mobile phone service provider in Malaysia. It was
started in the year 1995. It uses the dialling prefix identifier of "012", "014" and "017". Their
mobile services are provided over the 900 & 1800 MHz GSM band and as July 2005, the 2100
MHz UMTS band. We are the leading communications service provider in Malaysia, enabling
both individual and business customers to connect and communicate anytime, anywhere and
from any device. We are passionate about what we do, and we are committed to providing an
unmatched experience to our customers. Today, our customers enjoy an extensive range of data
services such as mobile Internet browsing, social networking, downloading of applications
(apps) and a portfolio of integrated mobile, fixed and enterprise solutions. Their experience is
further enriched with our increasing library of digital content and entertainment solutions. This is
in addition to our voice calls, text and picture messaging services. 13 million customers choose
to be with us as we stand for the widest coverage, innovative solutions and excellent service. We
want our customers to enjoy access to all the services they need. That is why we continually

work to enhance our high-speed network, which is the largest in the country. In addition, our
super high-speed 4G network in 2013 is already available in major areas across the country.

Specific Problem Statement

Research also shows that a majority of the firms invest in measuring, monitoring, and
disseminating customer satisfaction information; in fact, these authors found that customer
satisfaction research is one of the most widely conducted marketing research activities in the
firms Customer satisfaction matters. It matters not only to the customer, but even more so to the
business because it directly impacts a company's bottom line profits. Furthermore, it is one of the
most important components of a company's positive brand image. The reason why customer
satisfaction directly affects bottom line profitability is quite simple: it costs far less to retain a
happy client than it does to find a new client. Businesses that have been successful retaining the
business of their loyal clients have shown over time to consistently increase profits from their
installed client base. The impact of customer loyalty is impossible to overlook. This white paper
will examine not only the significance of customer satisfaction, but also some of the factors that
businesses need to consider in order to accurately define, measure, and integrate this concept into

Research Questions
1. What are the effects of customer satisfaction towards telecommunication service provider?
2. How satisfied are Maxis and Digi customers with their services?
3. How does Service Provider Company make their customer satisfy with their services?

Research Objectives
1. To determine the effects of customer satisfaction towards telecommunication service provider.
2. To know how satisfied Maxis and Digi customers with their services.
3. To identify how the service provider company make their customer satisfy with their services.
Significance of the Study
The objective of this research is to identify the effects of customer satisfaction towards service
Provider Company which are digi and Maxis Company. Furthermore, this study can help the digi
and Maxis Company to identify the how satisfied their customer with their services and the
effects of customer satisfaction towards digi and Maxis Company. This research is significant
and useful for the company because this can help them to understand what the customer
expectation towards service Provider Company is and it can be used as indication to improve
company growth.
Research Scope
The target audiences for this study were the people who are using digi and maxis
telecommunication in age of 18 to 60 years old. The venue where the questionnaires were
distributed is in Petaling Jaya, Malaysia

Chapter Outline
Chapter 1: Introduction

This chapter describe about introduction to the

Malaysian Telecommunication Sector and overview
of the customer satisfaction, digi and maxis
company background, problem statements, research

Chapter 2: Background of the

questions and objectives.

This Chapter presents literatures on customer


satisfaction which is completed by another author.

Moreover, this chapter also describes the models,
theories and concepts which are related with the






current study.
In this chapter, the research methods will be
explanied. Sources of primary and secondary data
will be examined. Findings will be graphically
represented and analysed.

Chapter 4: Discussion

This chapter will discuss all analysis after analysis

in the Chapter 3 and discuss with own opinion and

Chapter 5: Conclusion

This chapter will do the ultimate result for the study
and give some recommendation and suggestion for
this study.

Background of Study
This chapter reveals the linked concepts, models and also the theories that have been used in this
research whereby it covers the previous research, articles, and studies from relevant journals, and

books. Hence, this literature review is one of the beneficial elements to achieve the objectives of
this project.
Theories and Concept
This section is about the theories and concepts that used by the current researcher in this research
to provide an in-depth justification and also explanations to this specific topic.

Customer Satisfaction
Vavra, T.G. (1997) defined satisfaction as a satisfactory post-purchase knowledge with a product
or service given a current purchase expectation. Besides that, Howard and Sheth (1969) define
satisfaction as, The buyers cognitive state of being adequately or inadequately rewarded for the
sacrifices he has undergone. According to Westbrook and Reilly (1983) customer satisfaction is
an customer satisfaction is an emotional response to the experiences provided by, associated
with particular products or services purchased, retail outlets, or even molar patterns of behavior
such as shopping and buyer behavior, as well as the overall market place.

Satisfaction as core concept

It interesting that consumerism has been in a rise since the last five decades in parallel to
arise of customer satisfaction with a link to profitability and other business results. In order to
understand the underlying reasons for consumerism, we believe that a better understanding of
consumer satisfaction/dissatisfaction is required. Since consumerism today is such a complex
evidence as interrelated with other ecological, social, political, ethical, economic, and
technological problems, one who attempts to discover satisfaction is required to discover also
the relation to all those aspects one by one. It is the most frequent question being raised about
consumerism: What are the sources of consumer dissatisfaction? One may also assume that
consumerism is a frustration on the part of consumers who have been promised much and
have realized less. This motive can be concluded as a major force to drive consumerism.
Understanding Satisfaction vs. Dissatisfaction

Conceptually, satisfaction is an outcome of purchase and use resulting from the buyers
comparison of the rewards and costs of the purchase in relation to the anticipated
consequences. Operationally, satisfaction is similar to attitude in that it can be assessed as the
sum of the satisfactions with the various attributes of the product or service (Churchill
&Suprenant, 1982).When satisfaction is mentioned it is generally considered a wide of area
that includes both high levels of satisfaction and also neutral levels where there is no
dissatisfaction. However, it is also suggested that there needs to be a separate consideration
for different levels of satisfaction with different ranges of effect and varying magnitudes of
impact on business results. (Best,2009)The Random House Dictionary states: "dissatisfaction
results from contemplating what falls short of one's wishes or expectations. Consumer
dissatisfaction, then, might be measured by the degree of disparity between expectations and
perceived product performance (Anderson 1973).

A Broader view on Importance of Satisfaction

Customer satisfaction measurement has been getting importance in business practices especially
for the last decade. The metric is getting popular since, Customer satisfaction is a forward
looking indicator of business success that measures how well customers will respond to the
company in the future. Other measures of market performance, such as sales and market share,
are backward looking measures of success. They tell how well the firm has done in the past, but
not how well it will do in the future. (Byrne, 1993). Customer satisfaction index result at average
levels around for example 70-80 out of 100 could be considered satisfactory boar the business.
However, in real life when we consider the distribution of different satisfaction levels that result
such an average index, we may possibly observe that it is made of composite satisfaction levels.
This broader view may for example imply us that a significant percent of customers somewhat
satisfied and are open to competitors threat. Such insights are helpful for businesses to device
their strategies in managing their customer portfolio.
Profit Impact of Dissatisfaction
Dissatisfaction on the other hand has some important implications for the future of business. A
customer centric firm must pay attention to dis-satisfied customers as much as it pays to the ones

that are satisfied. Because dissatisfied customers are not expected to discontinue purchasing and
exit leaving the company with an erosion or customer portfolio. Yet this is not the nly issue to be
considered. Dissatisfied customer usually dont complain. (TARP, 1986) They usually exit, walk
and talk. They start producing negative WOM. Sometimes the situation even gets worse.
Dissatisfied customer may become customer terrorists .they try to ease their dissatisfaction by
telling to other, trying to affect the other potential customer by destroying the reputation of the
firm in market place (Best, 2009).
There are some practices are customer satisfaction measurements. Even on a national scale
consumer satisfaction indexes are developed as in the case of Swedish National Customer
Satisfaction Barometer and The American Customer Satisfaction Index (Fornell, 1992 andFornell
& Anderson 1996). Also business practices are developed to measure customer satisfaction. One
of the many ways of measuring customer satisfaction is to compute a Customer Satisfaction
Index (CSI) based on customers ratings of their satisfaction. A CSI can be derived from a six
point scale that ranges from very dissatisfied to very satisfied. Some practical information
about formation of such a customer satisfaction index is described by Roger Best
(2009).Evaluation of a customer satisfaction index is also an important issue. A wide view
evaluation may reveal the most strategic information to the firm about its customer portfolio. In
such an evaluation, for example s satisfied or somewhat dissatisfied customer segments will
be considered as vulnerable to competitor attacks. Dissatisfied and very dissatisfied
customer segments should be further investigated to protect the company against a negative
WOM and customer losses.

Expectation and Perceived Product Performance

Expectations of a customer on a product tell us his anticipated performance for that product. As it
is suggested in the literature consumers may have various "types" of expectations when forming
opinions about a product's anticipated performance. For example, four types of expectations are
identified by Miller (1977): ideal, expected, minimum tolerable, and desirable. While, Day
(1977) indicated among expectations, the ones that are about the costs, the product nature, the

efforts in obtaining benefits and lastly expectations of social values. Perceived product
performance is considered as an important construct due to its ability to allow making
comparisons with the expectations. It is considered that customers judge products on a limited
set of norms and attributes. Olshavsky and Miller (1972) and Olson Andover (1976) designed
their researches as to manipulate actual product performance, and their aim was to find out how
perceived performance ratings were influenced by expectations. These studies took out the
discussions about explaining the differences between expectations and perceived performance.
Here, we will have an overview of those theories to base a better understanding of the
mechanisms that play an important role in satisfaction process.

Assimilation Theory (Cognitive Dissonance)

According to the theory of Festinger (1957), an unmatched expectancy, creates a state of
dissonance or "psychological discomfort" because the outcome conflicts with the costumers
original hypothesis. It is suggested by the individual has cognitive elements (or"knowledges")
about his past behavior, his beliefs and attitudes, and his environments. Receiving various kinds
of product information from their own experience, associates, advertisements, and salesmen, the
consumers turns them into cognitions and would like them to be consistent with each other. In
case an individual receives two ideas which are psychologically dissonant, he relentlessly tries to
reduce this mental discomfort by changing or distorting one or both of the cognitions to form
them into a more consonant way. When the cognitive dissonance is stronger, the motivation
against reducing the dissonance by changing the cognitive element is also stronger.

Contrast Theory
Even in the studies supporting assimilation theory, some individuals tend to shift their attitudes
and evaluations away from expectations aroused by communications if inconsistent with reality
(Hovland, Harvey & Sherif 1957). Contrast theory suggests that incase the expectations are not
matched by actual product performance, the surprise effect or contrast between expectations and
outcome will cause the consumer to exaggerate or magnify the difference. Here it is implied that

a little understatement of the product's qualities in advertising might result in higher customer
satisfaction with the offered product.

General Negativity Theory

Another research on the consequences of unmatched confirmations is conducted by Carlsmith
and Aronson (1963). They hypothesized that even a pleasant result would be perceived not so
pleasant under the circumstances that customer expectations were set to receive an unpleasant
one. Likewise an unpleasant result would be perceived as more unpleasant under the same
conditions. They asked their respondents to taste bitter and sweet solutions, manipulating their
expectations regarding the tastes, and recorded their evaluations under the various conditions.
When the bitter solution was expected and the sweet solution tasted, an unmatched expectancy
resulted in a rating of less sweet which would support contrast theory. Carlsmith and Aronson
made an explanation of this conflict by suggesting that an unmatched expectancy would end in a
hedonically negative state in the emotions of customers which causes them to generalize this
negative effect to all other objects. The theory implies that any unmatched expectation whether
or not it is regardless of being exceeded or left in short, would result in a lower level of perceived
performance rating in comparison to actual or objective performance.

Assimilation- Contrast Theory

This theory considered to combine version of the two theories that are Assimilation and Contract.
It suggests that when the difference between expectations and perceived product performance is
at an acceptable level to a customer then the customer would assimilate is perception towards his
expectations. However, if the difference arising from an unmatched expectation is falling beyond
the customers acceptance limit, then the customer magnify this difference (Anderson, 1973).The
theory implies that expectation of customers should be elevated by the promotional efforts until
such a level that it would successfully position below the level rejection for this to benefit the
magnifying effect of contrast for the difference.

Evidence and Evaluation
This chapter outlines the method of research that is found fit to be adopted in this research with
the sources of data been used been mentioned.
Research Methodology

Research methodology is a method used to collect info and data for the reason of making any
decisions. According to Jennifer Williams (2011) defined research methodology is a method to
find out the answers of a given problem on a particular issues or problem that is also referred as
research problem. In Methodology, researcher uses other strategy for solving or searching the
given research problem.
Formulating Research Problem
This research problem is to analyses the customer satisfaction towards service provider in
Research Design
Descriptive research has been used to design to identify the customer satisfaction towards service
provider in Malaysia in Petaling Jaya. Through this, the research can provide a detail and
accurate description to answer the research problem.
Method of Data Collection Form
The data for this specific research will be collected via a survey questionnaire that consists of
three main components and one demographic component. It is a scale and close ended type of
questions. Hence, 15 questions will be distributed to the people randomly as a pilot test in order
to identify the weaknesses and error occurred before the actual questionnaires are distribute
(Refer appendix 3 for sample questionnaire)

Based on (2014), say that population is usually a big group of individuals or
stuff is the mainly considered of a scientific question. The population chosen was the people who
are using Digi and Maxis service.

According to William M.K. Trochi (2008) define sampling is a method by which implication is
made to the whole by examining a part. The reason of sampling is to give different types of
statistical information of a qualitative or quantitative nature about the whole by considering some
of the choose units. In his research, researcher was chosen 60 respondents to find the sample data
for this study using simple random sampling. The center place is Petaling Jaya.The concentration
group was mainly people who are using Digi and Maxis services chosen for answering the
questionnaire and 5 students for the interview. However, researcher gets response from 60
Collect the Data
The researcher was collected 60 respondents of questionnaire through online such as Facebook
and direct collected after their answer the questionnaire and collected the answer of the four
interviewees through the face to face.
Analyze the Data
Analyze the primary data has used by Microsoft Excel in order to tabulation all the essential data
collected by questionnaires. (Refer appendix )
Write the Research Report
The researcher was used a report format to analyse the finding. This is because report format can
show concise and clear information for reader to further understanding.

Chapter 4