customer orientation and customer...

MAKERERE UNIVERSITY

TOPIC: CUSTOMER ORIENTATION AND CUSTOMER SATISFACTION:

A CASE OF AIRTEL UGANDA LTD

BY

NANTEGE MADINA

07/U/13467/EXT

SUPERVISOR

MS. MAYANJA JAMIAH

A RESEARCH REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE AWARD OF A DEGREE OF BACHELOR OF

COMMERCE OF MAKERERE UNIVERSITY

JULY 2011

DECLARATION

I Nantege Madina, declare that this research report is my original work. It has not been

submitted to any other university or higher institution of learning for any award where it is

indebted to work of others due acknowledgement has been made.

Signature: …………………………………… Date: …………………………

NANTEGE MADINA

07/U/13467/EXT

i

APPROVAL

This work entitled “Customer orientation and customer satisfaction: a case of Airtel Uganda Ltd” has

been submitted to the university with my approval.

Signature: ……………………………….... Date: …………………………..

MS. MAYANJA JAMIAH

(SUPERVISOR)

ii

DEDICATION

This piece of work is dedicated to my beloved family members especially my mum, sisters,

aunties, grand mum and friends; Juliet and Lydia who always inspired me by their love and

accomplish this work. Love you all.

iii

ACKNOWLEDGEMENT

This report would not have been complete without the valuable contribution of Allah the most

gracious and many individuals who worked with me through out the attire process of this

research. Many thanks to Allah for the gift of good health and friends. My sincere heart

appreciation goes to my supervisor Ms. Mayanja Jamiah for her technical guidance and

encouragement up to this stage of submission. My family members, lecturers and staff for

academic encouragement and guidance. Fellow students for moral academic support and

encouragement. To my respondents of this study, please thank you for the cooperation during my

interactions with you especially in this study. May God bless you.

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TABLE OF CONTENTS

DECLARATION................................................................................................................... i

APPROVAL....................................................................................................................................ii

DEDICATION................................................................................................................................iii

ACKNOWLEDGEMENT..............................................................................................................iv

TABLE OF CONTENTS.................................................................................................................v

LIST OF TABLES.......................................................................................................................viii

ABSTRACT.....................................................................................................................................x

CHAPTER ONE............................................................................................................................1

INTRODUCTION...........................................................................................................................1

1.1 Background................................................................................................................................1

1.2 Statement of the Problem...........................................................................................................2

1.3 Purpose of the study...................................................................................................................2

1.4 Objectives of the study...............................................................................................................2

1.5 Research question......................................................................................................................3

1.6 Scope of the study......................................................................................................................3

1.7 Significance of the study............................................................................................................3

CHAPTER TWO...........................................................................................................................4

LITERATURE REVIEW................................................................................................................4

2.1 Introduction................................................................................................................................4

2.2 Customer orientation..................................................................................................................4

2.3 Customer satisfaction.................................................................................................................6

2.4 Customer orientation and customer satisfaction........................................................................8

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2.5 Conclusion.................................................................................................................................8

CHAPTER THREE.......................................................................................................................9

METHODOLOGY..........................................................................................................................9

3.0 Introduction................................................................................................................................9

3.2 Sampling design.........................................................................................................................9

3.2.1 Study population.....................................................................................................................9

3.2.2 Sample size.............................................................................................................................9

3.2.3 Sampling method..............................................................................................................9

3.3 Data collection..................................................................................................................9

3.3.1 Sources of data..................................................................................................................9

3.3.2 Data Collection instruments............................................................................................10

3.4 Data processing, analysis and presentation..............................................................................10

3.4.1 Data processing.....................................................................................................................10

3.4.2 Data Analysis........................................................................................................................10

3.4.3 Data Presentation..................................................................................................................10

3.5 Anticipated Limitations...........................................................................................................10

CHAPTER FOUR..........................................................................................................................1

PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS.............................12

4.1 Introduction........................................................................................................................12

4.2 Findings on General Information....................................................................................12

4.3 Customer orientation activities in Airtel Uganda Ltd.....................................................15

4.4 Level of customer satisfaction in Airtel Uganda Ltd......................................................23

vi

4.5 The relationship between customer orientation and customer satisfaction in Airtel

Uganda Ltd.....................................................................................................................................31

CHAPTER FIVE.........................................................................................................................33

DISCUSSION, CONCLUSION AND RECOMMENDATIONS OF FINDINGS.......................33

5.1 Introduction.....................................................................................................................33

5.2 Discussion of major findings..........................................................................................33

5.3 Conclusion......................................................................................................................35

5.4 Recommendations...........................................................................................................35

5.5 Areas for further research...............................................................................................36

REFERENCES..............................................................................................................................37

APPENDIX 1.................................................................................................................................39

R.V. KREJCIE AND D. W. MORGAN (1970) SAMPLE SIZE ESTIMATION TABLE...........39

APPENDIX 2.................................................................................................................................40

QUESTIONNAIRE.......................................................................................................................40

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LIST OF TABLES

Table 1: Sex of respondents...........................................................................................................12

Table 2: Marital status of respondents...........................................................................................13

Table 3: Age of respondents..........................................................................................................13

Table 4: Education level................................................................................................................14

Table 5: Responses on whether Airtell Uganda Ltd encourages customer comments and

complaints because they help the company to satisfy their needs.................................................15

Table 6: Responses on whether Airtell Uganda Ltd has a strong commitment to their customers

.......................................................................................................................................................16

Table 7: Responses on whether after-sales service is an important part of the business strategy.16

Table 8: Responses on whether Airtell Uganda Ltd is always looking at ways to create customer

value in the products/services........................................................................................................17

Table 9: Responses on whether Airtell Uganda Ltd defines its products/services quality in terms

of customer needs..........................................................................................................................18

Table 10: Responses on whether Airtell Uganda Ltd business objectives are driven primarily by

customer needs...............................................................................................................................19

Table 11: Responses on whether Airtell Uganda Ltd is quick to detect changes in the customers’

performances..................................................................................................................................19

Table 12: Responses on whether Airtell Uganda Ltd believes that the business exists primarily to

serve customers..............................................................................................................................20

Table 13: Responses on whether Airtell Uganda Ltd carries out consumer surveys at reasonable

intervals to assess customer satisfaction........................................................................................21

Table 14: Responses on whether Airtell Uganda Ltd searches for opportunities in areas where

customers have a difficulty expressing their needs.......................................................................22

Table 15: Responses on whether staff in all departments is caring and enthusiastic to all

customers.......................................................................................................................................23

Table 16: Responses on whether staff in all departments is easily approachable and willing to

help all customers..........................................................................................................................24

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Table 17: Responses on whether equipments used by staff to provide services to customers are

modern...........................................................................................................................................24

Table 18: Responses on whether all the staff’s dressing code is adequate and satisfactory to all

customers.......................................................................................................................................25

Table 19: Responses on whether all the staff’s tone of voice is adequate and satisfactory to all

customers.......................................................................................................................................26

Table 20: Responses on whether the behaviour of all the staff in all departments instills trust in

all customers male and female.......................................................................................................27

Table 21: Responses on whether all the staff is consistently polite when responding to customers’

needs, values and beliefs................................................................................................................27

Table 22: Responses on whether all the staff is consistently courteous when responding to

customers’ needs, values and beliefs.............................................................................................28

Table 23: Responses on whether all the staff in all departments is able to control their emotions

.......................................................................................................................................................29

Table 24: Responses on whether all the staff in all departments is able to apologize to

complaining/dissatisfied customers...............................................................................................30

Table 25: Correlations...................................................................................................................31

ix

ABSTRACT

The study sought to establish a relationship between customer orientation and customer

satisfaction in Airtel Uganda Limited. The objectives of the study included; to establish customer

orientation activities in Airtel Uganda Ltd, to examine the level of customer satisfaction in Airtel

Uganda Ltd and to examine the relationship between customer orientation and customer

satisfaction in Airtel Uganda Ltd.

A cross sectional research design was used in the study. Both qualitative and quantitative data

was gathered to establish the relationship between the independent and dependent variables. The

population that was considered during this study comprised of customers of Airtel Uganda Ltd.

The sample size composed of 44 respondents. Simple random sampling was used to choose the

respondents.

Findings of the study indicated that customer orientation activities at Airtel Uganda Limited are

inadequate and unsatisfactory include among other, customer comments and complaints, strong

commitment to our customers, quick to detect changes in the customer, preferences, inadequate

ways of delivering customer services with appropriate actions and in a timely manner. Findings

further revealed that the customer satisfaction level is low as revealed in indicators of customers

satisfaction to include among others carrying and enthusiastic to all customers, staff in all

department instills trust and fairness in all customers and approachable and willing to help all

customers. It is also found out that there is a weak positive relationship between customer

orientation and customer satisfaction in Airtel Uganda Limited (r = 0.1472)

It was recommended that; management should review its customer orientation activities through;

encouraging customer comments and complaints, focusing on customer’s individual needs,

proactively identifying new ways of delivering customer services in a timely manner, so as to

strengthens strategies aimed at improving customer satisfaction to match the customer testes and

preferences more appropriate.

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CHAPTER ONE

1.0 Background to the study

Customer orientation is a set of beliefs that puts the customer’s interests first, while not

excluding those of all other stakeholders such as owners, managers and employees, in order to

develop a long-term profitable organization that satisfies its clients/customers on a continuous

basis (Deshpande et al, 1993). Customer orientation indicates a culture in organizations that

most effectively and efficiently creates the necessary behaviors for the creation of superior value

for customers thus attaining superior performance for the organization in terms of reduced

complaints from customers. Customers need to observe and appreciate a culture of customer

orientation, developed infrastructure and a leadership committed to support a service culture,

(David and Uttal, 1989), organizations should not only set objectives of profit maximization but

also customer needs should be considered and better understood because the sole purpose of a

business is not profit but to create a customer (Drucker, 1999).

According to Arnould et al (2001), customer satisfaction is the consumer’s fulfillment response.

it is a judgment that a product or service feature or a product or a service itself say, provides

pleasurable level of consumption-related fulfillment. It is also the measure of how products and

services supplied by a company meet or surpass customer expectations. Failure to meet needs

expectations is assumed to result in dissatisfaction with product or service

Airtel Uganda limited is a telecommunication company in Uganda that offers the telecom service

under Airtel Brand, it acts as a carrier for national and international long distance communication

services. The Company offers fixed line services, broad band internet access services and money

transfer services under a common brand “Airtel”. Aritel Uganda Ltd has put in place some

services that are designed to facilitate the offering of quality service to their customers, some of

these include the 24 hour, seven days customer service helpline, provides land line telephone

services. They have also put in place customer service centers in a number of locations in

nationwide. They have also opened up a number of third party dealers for Airtel Uganda Ltd

products in various locations and also offered Value added services to their customers like

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offering of polyphonic ring tones, offering of screen savers and logos, internet connections over

mobile phones, more so company provides end to end telecom solutions to corporate customers

both national and international long distance services through its nationwide fiber optic

backbone, last mile connectivity in fixed line and mobile circles (Airtel Uganda Ltd consumer

survey report 2010).

However there are still complaints by customers on the quality of service as confirmed by Airtel

Uganda Ltd consumer survey report (2010). Some of these complaints include among others;

long ques on the customer helpline, difficulties found by customers when down loading Airtel

logos and to receive who called alerts promptly. The above situation has led to increased

customer dissatisfaction influencing customers to switch to other networks.

1.1 Statement of the Problem

Airtel Uganda Ltd general objective was to ensure that it provides effective service delivery

towards its customers on a continuous basis. Although customer orientation is an organizational

culture that creates necessary behaviours for the creation of superior value and attaining superior

performance through continuous satisfaction of customers, Airtel Uganda Ltd seems to be failing

to adhere to customer oriented culture that focuses on customer needs, values and beliefs on

continuous basis thus numerous complaints from customers which is a sign of dissatisfaction

thus customers switching to other networks.

1.2 Purpose of the study

The study sought to establish a relationship between customer orientation and customer

satisfaction in Airtel Uganda Ltd.

1.3 Objectives of the study

The researcher sought to attain specific objectives here below;

1. To establish customer orientation activities in Airtel Uganda Ltd.

2. To examine the level of customer satisfaction in Airtel Uganda Ltd.

3. To examine the relationship between customer orientation and customer satisfaction in

Airtel Uganda Ltd.

2

1.4 Research question

The study was guided by question here under;

1. What are the customer orientation activities in Airtel Uganda Ltd?

2. What is the level of customer satisfaction in Airtel Uganda Ltd?

3. What is the relationship between customer orientation and customer satisfaction in Airtel

Uganda Ltd?

1.5 Scope of the study

1.5.1 Conceptual scope

This study focused on examining the concept of customer orientation as an independent variable

and the concept of customer satisfaction as a dependent variable.

1.5.2 Geographical scope

The study was conducted in Airtel Uganda Ltd headquarters in Kampala. This is because many

customers and other stakeholders consider headquarters of a company to have the ability and

authority to handle customer complaints effectively.

1.5.3 Time scope

The study considered 2009-2010.

1.6 Significance of the study

1 The study will enrich the researcher’s knowledge on the variables under study and help the

researcher fulfill the requirements that lead to the award of the degree of Bachelor of

commerce from Makerere University.

2 The study results will be useful to management, board of governors, and all stakeholders of

Airtel Uganda Ltd specifically they will use findings from the study to redesign policies

aimed at improving on the levels of performance.

3 Findings will also be available for reference by academicians, researchers who seek to

conduct further research in any of the variable under this study.

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CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter provides a critical review of related literature on the variables, in light of the

objectives of the study and ends with a conclusion.

2.2 Customer orientation

Deshpande et al (1993) defines corporate customer orientation as a set of beliefs that puts the

customers’ interest first, while not excluding those of all other stakeholders such as owners,

managers, and employees, in order to develop a long-term profitable organization.

Narver and Slater, 1990) customer orientation is the “organizational culture that most effectively

and efficiently creates the necessary behaviours for creation of superior value for buyers and

thus, superior performance for the organization.” According to their definition, inter-functional

coordination and competitive advantage can easily be attained when organizations effectively

consolidate customer orientation.

Robins (1998) asserts that organizations, like people, can be characterized in terms to include

rigid, friendly, warm, innovative or conservative. Robin’s views organizational culture as a

system of shared meaning held by members of an organisation as whole that distinguishes one

organisation from other organisation.

One of the major reasons for widespread popularity of and interest in organizational culture

stems from the argument or assumption that certain organization cultures lead to superior

organizational performance through satisfied customers’ positive word of mouth. (Denison,

1999; Heskett et al; 1992).

Delivering superior customer service organization-wide a customer oriented customer needs to

be established within the organization. This culture is reflected in customer-oriented employees,

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a developed infrastructure and leadership committed to support a service customer (Davidow and

Uttal, 1989).

A customer orientation culture enables the organization to create superior value for its customers

because their needs are better understood (Narver and Slater, 1990). Service organizations should

not only consider profit when providing services but to create a customer (Drucker, 1999).

Customer orientation is an integral component of a general, underlying organizational culture

and thus attention to information about customers’ needs should be considered along side basic

set of values and beliefs that are likely to reinforce such a customer focus and permeate the

organisation (Ogbonna, 1993; Johnson, 1992). Similarly a consideration of the set of all potential

customers of a firm lies at the meant of customer orientation (Gordon and Ditomaso, 1992;

Denison, 1990). They argue that customer orientation is all about implementation and since

culture is “the way things are done” customer orientation should permeate the overall activities

of organization.

Insufficient understanding of customer orientation can lead to problems or, at best, superficial

changes in organizational practice. Such changes contribute little to the organisation’s strategic

development but rather endanger it by creating an illusion towards it effectiveness, which leads

to organizational smugness and strategic drift. The widely reported reverses in the fortunes of

“excellent” organizations serve as a timely reminder that customer orientation is essential but

difficult to sustain (Pelham et al; 1996).

Organisations that have attained a competitive advantage over others are considered to be at a

hallmark of successful business (Hall, 1992). Studies have shown that customer orientation was a

necessary antecedent and adequately adhered to for such organization to attain success over

competition (Ganesa, 1994; Williamson, 1991).

Customer orientation programs are very important for organization seeking to survive this era of

globalization and dynamic competitive environment (Liu, 1995). However, despite its vast

importance there is little literature interactive dealing with how to develop an effective customer

5

who is considered to be the reason for existence of business or organization whether profit

making or nonprofit making (Drucker, 1999).

Customer need to observe and appreciate a culture of customer orientation, developed

infrastructure and a leadership committed to support a service culture,(David

andUttal,1989).Organizations should not only set objectives of profit maximization but also

customer needs should be considered and better understood because the sole purpose of a

business is not profit but to create a customer (Drucker 1999).Thus attention to customer needs,

values and beliefs are required to reinforce such a customer focus for customer orientation to

embrace all activities of the organization so as to minimize customer complaints.

2.3 Customer satisfaction

According to Arnould et al, (2001), customer satisfaction is the consumers’ fulfillment response.

It is a judgement that a product or service feature, or the product or service itself say, provides a

pleasurable level of consumption-related fulfillment. Failure to meet needs and expectations is

assumed to result in dissatisfaction with product or service. A sense of fulfillment in the

knowledge that one’s needs have been met is expected to result into satisfaction which is also

related to other types of feelings, depending on the particular context or type of service. For

those services that really surprise the consumer in a positive way, satisfaction may mean delight.

And in some situations, where the removal of a negative leads to satisfaction, the consumer may

associate a sense of relief with satisfaction. Service organizations need to recognize that although

considerable research studies conducted by Bearden et al (1983) tend to measure customer

satisfaction at a particular point in time as if it were static, satisfaction is a dynamic moving

target that may evolve over time influenced by a variety of factors, (Zeithamal, et al., 2003).

Considerable research reveals that the determinants of customer satisfaction include customers’

emotional response, their attributions and their perceptions of equity. Oliver (1997) contends that

customer satisfaction with a product or service is influenced significantly by customers’

evaluation of product or service feature. Ostrom, et al., (1995) studies indicated that customer

services will make trade offs among different service features (for example, price level versus

6

quality versus friendliness of personnel versus level of customization) depending on the type of

service being evaluated and criticality of the service.

Customer emotions can also affect their perceptions of satisfaction with the products and

services (Arnould et al., 1995). These emotions can be stable, per existing emotions specific

emotions may be induced by the consumption experience itself, influencing a consumer’s

satisfaction with the service.

Attributions for service success or failure are also important when evaluating customer

satisfaction according to (Folkes, 1988). When customers have been surprised by an outcome

(the service is either much better or much worse than expected) consumers tend to work for the

reasons, and their assessment of the reasons can influence their satisfaction. For many services

customers take at least partial responsibility for how things turnout. Even when they do not take

responsibility for the outcome, customer satisfaction. Customer satisfaction is also influenced by

perceptions for example, equity and fairness (Clemmer and Schneider, 1996).

In addition to product and service feature and one’s own individual feelings and beliefs,

consumers’ satisfaction is often influenced by other people (Fournier and Milk, 1999). Service

provides reported that their ability to recover from dissatisfying service encounter, their

adaptability and their spontaneity are key dimensions in their ability to influence service

encounters (Willmot, 1993). There is also a considerable debate as to whether customer

satisfaction is an attitude or a relatively transient consumption – specific construct, or whether it

is an outcome or an evaluation (Yi, 1990).

Service organizations focus on achieving customer satisfaction and loyalty by delivery superior

value an underlying source of competitive advantage (Woodruff, 1997). Their challenge is

identifying the critical factors that determine customer satisfaction and loyalty. This will help

service producers to make their customers glad, feel good and remain lifetime customers with the

service provide in question.

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2.4Relationship between Customer orientation and customer satisfaction

In their empirical investigation into customer orientation and customer satisfaction relationship

among Japans firms, Deshpande et al (1993) concludes that customer orientation is positively

associated with customer satisfaction. Similar studies on the customer orientation and customer

satisfaction were conducted in United States of America whose results were also revealed to be

positively correlated (Redman et al., 1998) effectiveness customer orientation was found to lead

to a positive word of mouth by satisfied customers whose loyalty to the organization also

increased (Ganesan, 1994; Williamson, 1991).

According to studies of (Kotler, 1999; Zectnamal, 2005), customer-oriented organization’s

practice total quality management for them to satisfy them customers. Through organizing and

directing services of institutions towards consumers with people or staff who see serving

customers as their primary function. In today’s market place it’s no longer enough to satisfy

customers needs and wants in terms of quality, promptness among others but it is more important

to delight customers on a continuous basis.

2.5 Conclusion

Achieving customers’ satisfaction requires service organization to beat competition by ensuring

that their customers are satisfied on a continuous basis. This means that they keep coming back

because of the partnership created between the service provider and the customer, (Reichhelf

1996, Heskett et al, 1997). Successful service organizations measure on a continuous basis

customers’ level of satisfaction based on the last service encounter (Peterson and Wilson 1992).

This creates a caring relationship with the customers making them feel cherished, glad and

spread a positive word-of-mouth without any difficult. Thus it is important for service

organisation to ensure customer orientation for them to attain consistent high levels of customer

satisfaction in a dynamic competitive environment.

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CHAPTER THREE

METHODOLOGY

3.0 Introduction

This section discusses the design that was used to achieve the set objectives in chapter one.

Sampling design, study population, sample size, sampling method, data collection instruments,

analysis and ends with anticipated limitations.

3.1 Research design

A cross sectional survey was used during the study. Both qualitative and quantitative data was

gathered in order to establish the relationship between the independent and dependent variables.

3.2 Sampling design

3.2.1 Study population

The population that was considered during this study comprised customers of Airtel Uganda Ltd.

3.2.2 Sample size

The sample size composed of 44 respondents. The sample was chosen with confidence of

sample size decision model by (Krejcie and Morgan, 1970).

3.2.3 Sampling method

Simple random sampling was used to choose the respondents. This technique was used because

the researcher sought to ensure that each member of the target population had an equal and

independent chance of being included in the sample of this study.

3.3 Data collection

3.3.1 Sources of data

Primary data was collected using self administered questionnaires. This was a key in providing

the researcher with first hand information. Secondary data was collected from previous studies

9

and literature on customer orientation and customer satisfaction and the reports from the

company.

3.3.2 Data Collection instruments

A self administered questionnaire was the main instrument used during this study. It was chosen

because the respondents sample size was quite large and data was needed urgently which made it

the ideal tool in such a case.

3.4 Data processing, analysis and presentation.

3.4.1 Data processing

After collecting data, the researcher organized well-answered questionnaires; data was edited and

sorted to ensure completeness and accuracy of the data.

3.4.2 Data Analysis

The data collected was classified and analyzed using frequency tables and percentages.

Regression analysis model was used in establishing the relationship between the variables.

3.4.3 Data Presentation

Data was presented in tabular form, with frequencies and percentages.

3.5 Anticipated Limitations

1. The time available for this research was not adequate especially given the number of

respondents who were busy and there fore unable to respond in time. However, in an

attempt to avert such problems, the researcher tried to be more serious with both

academics and research work.

2. Since the researcher did not know the kind of respondents she was going to deal with,

some might have delay to respond. The researcher made convenient appointments with

respondents.

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3. Research is tiresome and expensive because it needs funds for field work, processing data

and photocopying. The researcher sourced for funds from a few sponsors so as to solve

financial constraints.

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CHAPTER FOUR

PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS

4.1 Introduction

This chapter presents empirical findings on customer orientation and customer

satisfaction: a case study of Airtel Uganda Ltd in reference to research objectives: to

establish customer orientation activities in Airtel Uganda Ltd, to examine the level of

customer satisfaction in Airtel Uganda Ltd and to examine the relationship between

customer orientation and customer satisfaction in Airtel Uganda Ltd

4.2 Findings on General Information

Table 1: Sex of respondents

Sex Frequency (f) Percentage (%)

Male 13 33.3

Female 26 66.7

Total 39 100

Source: Primary Data

According to table 1 above, 33.3% of the respondents were males while 66.7% were

females. The respondents were mainly females probably because they attract more

customers to the company.

12

Table 2: Marital status of respondents

Status Frequencies Percentage

Single 11 28.2

Married 28 71.8

Divorced/separated - -

Total 39 100


Table 2 indicates that 71.8% of the respondents were married and 28.2% were single. The

respondents were mainly married probably because the married are more responsible

compared to the single persons.

Table 3: Age of respondents

Age (years) Frequencies Percentage (%)

18-30 8 20.5

31-40 17 43.6

41-50 12 30.8

Above 50 2 5.1

Total 39 100


According to table 3 above 25.6% of the respondents were between the age 18-30, 43.6%

were between the age of 31-40, 30.8% were between the age of 41-50 and 5.1% of the

13

respondents were above the age of 50. Findings indicate that majority were in the age

group of 31-40 years because staff of this age group is more efficient and effective.

Table 4: Education level

Level Frequencies Percentage (%)

Certificate 4 10.3

Diploma 14 35.9

Degree 16 41

Masters degree 5 12.8

PhD - -

Others - -

Total 39 100


Findings in table 4 above show that 10.3% of the respondents held certificates, 35.9%

diploma, 41% degree and 12.8% masters degree. Majority were degree holders indicating

that Airtel Uganda Ltd mainly employs educated staff. Thus they can easily evaluate the

effectiveness of customer orientation at Airtel Uganda Ltd.

14

4.3 Findings on customer orientation activities in Airtel Uganda Ltd

Table 5: Responses on whether Airtel Uganda Ltd encourages customer comments and

complaints because they help the company to satisfy their needs

Response Frequencies Percentage (%)

Strongly disagree 2 5

Disagree 13 33

Not sure - -

Agree 10 26

Strongly agree 14 36

Total 39 100


Results in table 5 above show that 5% of the respondents strongly disagreed, 33%

disagreed, 26% agreed and 36% strongly agreed. Majority of the respondents were in

agreement and this implies that Airtel Uganda Ltd encourages customer comments and

complaints because they help the company to satisfy customer needs, which indicates

strength on customer orientation at Airtel Uganda Ltd.

Table 6: Responses on whether Airtel Uganda Ltd has a strong commitment to their

customers


15


Disagree 13 33

Not sure 3 8

Agree 10 26

Strongly agree 4 10

Total 39 100



disagreed, 8% were not sure, 26% agreed and 10% strongly agreed. Majority of the

respondents were in disagreement, implying that Airtel Uganda Ltd has a weak

commitment to its customers.

Table 7: Responses on whether after-sales service is an important part of the business

strategy



Disagree 15 38

Not sure 4 10

Agree 12 31

Strongly agree 3 8

Total 39 100


Results in table 7 above indicate that 13% of the respondents strongly disagreed, 38%


respondents were in disagreement and this implies that after-sales service is not an

16

important part of the business strategy, which indicates a weakness in customer

orientation at Airtel Uganda Ltd.

Table 8: Responses on whether Airtel Uganda Ltd is always looking at ways to create

customer value in the products/services



Disagree 17 44

Not sure 5 13

Agree 8 21

Strongly agree 6 15

Total 39 100


Results in table 8 above depict that 8% of the respondents strongly disagreed, 44%


respondents were in disagreement and this implies that Airtel Uganda Ltd is not always

looking at ways to create customer value in the products/services.

Table 9: Responses on whether Airtel Uganda Ltd defines its products/services

quality in terms of customer needs



Disagree 4 10

17

Not sure 8 21

Agree 15 38

Strongly agree 9 23

Total 39 100




respondents were in agreement and this implies that Airtel Uganda Ltd defines its

products/services quality in terms of customer needs, which indicates strength in

customer orientation at Airtel Uganda Ltd.

18

Table 10: Responses on whether Airtel Uganda Ltd business objectives are driven

primarily by customer needs



Disagree 15 39

Not sure 5 13

Agree 9 23

Strongly agree 2 5

Total 39 100




respondents were in disagreement, implying that Airtel Uganda Ltd business objectives

are not driven primarily by customer needs.

Table 11: Responses on whether Airtel Uganda Ltd is quick to detect changes in the

customers’ performances



Disagree 15 38

Not sure 5 13

Agree 10 26

Strongly agree 6 15

Total 39 100


19



respondents were in disagreement and this implies that Airtel Uganda Ltd is slow to

detect changes in the customers’ performances. This indicates a weakness in the customer

orientation at Airtel Uganda.

Table 12: Responses on whether Airtel Uganda Ltd believes that the business exists

primarily to serve customers



Disagree 11 28

Not sure 5 13

Agree 12 31

Strongly agree 7 18

Total 39 100




respondents were in disagreement, implying that Airtel Uganda Ltd does not believe that

the business exists primarily to serve customers.

20

Table 13: Responses on whether Airtel Uganda Ltd carries out consumer surveys at

reasonable intervals to assess customer satisfaction


Strongly disagree 4 10.3

Disagree 12 30.8

Not sure 7 18

Agree 5 12.8

Strongly agree 11 28.2

Total 39 100


Results in table 13 above show that 10.3% of the respondents strongly disagreed, 30.8%

disagreed, 18% were not sure, 12.8% agreed and 28.2% strongly agreed. Majority of the

respondents were in disagreement and this implies that Airtel Uganda Ltd does not

carries out consumer surveys at reasonable intervals to assess customer satisfaction. This

indicates a weakness on customer orientation at Airtel Uganda Ltd.

21

Table 14: Responses on whether Airtel Uganda Ltd searches for opportunities in

areas where customers have a difficulty expressing their needs



Disagree 11 28

Not sure 2 5

Agree 10 26

Strongly agree 8 21

Total 39 100




respondents were in disagreement, implying that Airtel Uganda Ltd does not necessarily

search for opportunities in areas where customers have a difficulty expressing their

needs.

22

4.4 Findings on the level of customer satisfaction in Airtel Uganda Ltd

Table 15: Responses on whether staff in all departments is caring and enthusiastic to

all customers



Disagree 10 26

Not sure 6 15

Agree 8 21

Strongly agree 3 7

Total 39 100




respondents were in disagreement and this implies that staff in all departments is not

caring and enthusiastic to all customers, which may consequently lead to a negative effect

towards customer satisfaction.

23

Table 16: Responses on whether staff in all departments is easily approachable and

willing to help all customers


Strongly agree 7 8

Agree 9 23

Not sure 4 10

Disagree 11 28


Total 39 100


Results in table 16 above indicate that 8% of the respondents strongly agreed, 23.1%

agreed, 10.3% were not sure, 28% disagreed and 20.5% strongly disagreed. Majority of

the respondents were in disagreement, implying that staff in all departments is not easily

approachable and willing to help all customers at Airtel Uganda Ltd.

Table 17: Responses on whether equipments used by staff to provide services to

customers are modern



Disagree 12 30.8

Not sure 6 15.4

Agree 5 12.8

Strongly agree 13 33.3

Total 39 100


24

Results in table 17 above show that 7.7% of the respondents strongly disagreed, 30.8%

disagreed, 15.4% were not sure, 12.8% agreed and 33.3% strongly agreed. Majority of

the respondents were in agreement that Airtel equipments used by staff to provide

services to customers are modern, which consequently may lead to a positive effect

towards customer satisfaction.

Table 18: Responses on whether all the staff’s dressing code is adequate and

satisfactory to all customers



Disagree 8 20

Not sure - -

Agree 14 36

Strongly agree 10 26

Total 39 100



disagreed, 36% agreed and 26% strongly agreed. Majority of the respondents were in

agreement and this implies that all the staff’s dressing code at Airtel Uganda is adequate

and satisfactory to all customers.

25

Table 19: Responses on whether all the staff’s tone of voice is adequate and

satisfactory to all customers



Disagree 7 18

Not sure 6 15

Agree 10 26

Strongly agree 8 21

Total 39 100




respondents were in agreement, implying that all the staff’s tone of voice is adequate and

satisfactory to all customers, which may consequently lead to a positive effect towards

customer satisfaction at Airtel Uganda.

26

Table 20: Responses on whether the behaviour of all the staff in all departments

instills trust in all customers male and female



Disagree 7 18

Not sure 8 21

Agree 15 38

Strongly agree 6 15

Total 39 100


Results in table 20 above reveal that 8% of the respondents strongly disagreed, 18%


respondents were in agreement and this implies that the behaviour of all the staff at Airtel

Uganda Ltd in all departments instills trust in all customers male and female.

Table 21: Responses on whether all the staff is consistently polite when responding to

customers’ needs, values and beliefs



Disagree 11 28

Not sure 3 8

Agree 14 36

Strongly agree 5 13

Total 39 100


27



respondents were in agreement, implying that all the staff is consistently polite when

responding to customers’ needs, values and beliefs at AirTel Uganda Ltd, which may

consequently lead to a positive effect towards customer satisfaction.

Table 22: Responses on whether all the staff is consistently courteous when

responding to customers’ needs, values and beliefs



Disagree 14 36

Not sure 8 20

Agree 10 26

Strongly agree 4 10

Total 39 100




respondents were in disagreement and this implies that not all the staff is consistently

courteous when responding to customers’ needs, values and beliefs at Airtel Uganda.

28

Table 23: Responses on whether all the staff in all departments is able to control their

emotions



Disagree 10 25

Not sure 3 8

Agree 11 28

Strongly agree 7 18

Total 39 100




respondents were in disagreement and this implies that not all the staff in all departments

is able to control their emotions, which may consequently lead to a negative effect

towards customer satisfaction at Airtel Uganda Ltd.

29

Table 24: Responses on whether all the staff in all departments is able to apologize to

complaining/dissatisfied customers



Disagree 13 33

Not sure 9 23

Agree 10 26

Strongly agree 4 10

Total 39 100




respondents were in disagreement, implying that not all staff in all departments is able to

apologize to complaining/dissatisfied customers at Airtel Uganda Ltd.

30

4.5 Findings on the relationship between customer orientation and customer

satisfaction in Airtel Uganda Ltd

Table 25: Pearson correlations were used to establish a relationship between customer

orientation and customer satisfaction using Table 11 and Table 15 respectively.

Scale X

(customer

orientation)

Table 11

Y

(customer

satisfaction)

Table 15

X2 Y2 XY

Strongly disagree

Disagree

Not sure

Agree

Strongly Agree

3

15

5

10

6

12

10

6

8

3

9

225

25

100

36

144

100

36

64

9

36

150

30

80

18

Total

r =

r =

r =

r =

r =

31

r = 0.147222178

The correlation is 0.1472; it indicates a weak positive relationship between customer orientation

and customer satisfaction in Airtel Uganda Ltd. However, there are other factors affecting

customer orientation and customer and these take 7.3%.

32

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS OF FINDINGS

5.1 Introduction

This chapter presents a summary, conclusion and recommendations of the study findings

and ends with areas of further research.

5.2 Summary of major findings

5.2.1 Findings on customer orientation activities in Airtel Uganda Ltd.

Findings indicated that customer orientation activities at Airtel Uganda Ltd were

inadequate and unsatisfactory. The activities that are inadequate include among others;

customer comments and complaints, strong commitment to our customers, quick to detect

changes in the customers’ preference, inadequate ways of delivering customer services

with appropriate actions and in a timely manner. These findings rhyme with studies by

Hall, (1992) who observed that organisations that have attained a competitive advantage

over others are considered to be at a hallmark of successful business. Further more,

studies have shown that customer orientation was a necessary antecedent and adequately

adhered to for such organisation to attain success over competition (Ganesa, 1994;

Williamson, 1991).

33

5.2.2 Findings on the level of customer satisfaction in Airtel Uganda Ltd.

The findings revealed a low level of customer satisfaction at Airtel Uganda. The level is

low as revealed in indicators of customer satisfaction to include among others; caring and

enthusiastic to all customers, staff in all departments instills trust in all customers,

approachable and willing to help all customers. These findings are commensurate with

studies by Oliver (1997) who contends that customer satisfaction with a product or

service is influenced significantly by customers’ evaluation of product or service feature.

Further more, Ostrom, et al., (1995) studies indicated that customer services will make

trade offs among different service features (for example, price level versus quality versus

friendliness of personnel versus level of customization) depending on the type of service

being evaluated and criticality of the service.

5.2.3 To examine the relationship between customer orientation and customer satisfaction

in Airtel Uganda Ltd.

The results indicated a weak positive relationship between customer orientation and

customer satisfaction in Airtel Uganda Ltd (r = 0.1472). These findings, relate with

previous studies by Kotler, (1999) and Zectnamal, (2005), who observed that customer-

oriented organisation’s practice total quality management for them to satisfy their

customers. Through organizing and directing services of institutions towards consumers

with people or staff who see serving customers as their primary function. In today’s

market place it’s no longer enough to satisfy customers needs and wants in terms of

quality, promptness among others but it is more important to delight customers on a

continuous basis.

34

5.3 Conclusion

From the study findings, it indicated that customer orientation activities at Airtel Uganda

Ltd were inadequate and unsatisfactory, and the level of customer satisfaction was low.

There was a weak positive relationship of 0.1472 between customer orientation and

customer satisfaction.

5.4 Recommendations

The management of Airtel Uganda Ltd should review its customer orientation activities

through; encouraging customer comments and complaints, creating customer value in the

products/services and being quick to detect changes in the customers’ performances

The management of Airtel Uganda Ltd should ensure that it strengthens strategies aimed

at improving customer satisfaction through ensuring that; staff in all departments is

caring and enthusiastic to all customers, staff in all departments is easily approachable

and willing to help all customers, staff’s tone of voice is adequate and satisfactory to all

customers.

Management at Airtel Uganda Ltd should redesign its customer orientation activities so

as to enhance their levels of customer satisfaction.

35

5.5 Areas for further research

The study did not exhaust all the dependent variables that influence customer satisfaction

thus the need for other researchers to conduct an exhaustive study on variables under

listed

5.5.1 Management style and customer satisfaction

5.5.2 Organizational culture and customer satisfaction

5.5.3 Service quality and customer satisfaction

36

REFERENCES

Bearden, & Teel (1983). Selected determinants of consumer satisfaction and complaints reports.

Bearden, W. O. Teel, J. E. (1983). “Selected determinants of consumer satisfaction and complain

reports.

Davidow, W. H. & Utall, B. (1989). Total customer service: The ultimate weapon. Harper-

Collins, New York.

Deshpande, R., Farley, J. & Webster, E. (1995). “Corporate culture, customer orientation and

innovativeness in Japanese firms: A quadrate analysis” Journal of marketing Vol 57.

Drucker, P. E. (1999). The emerging theories of performance. Harvard Business Review.

Hall, D. (1992). The Hall marks for successful business. Mercury books London.

Hennesdey (1998). “A framework for analyzing customer service orientation in manufacturing”

Academic of management review Vol. 17 No. 1.

Heskett, J. L. Sassar, W. E. Jr. Schlesinger, L. A. (1997). The service profit chain, Fuel press.

New York, N.Y.

Heskett, S. & Schelsinger (1997). The service profit chain free press. New York: N.Y.

Iacobucci, G & Ostrom (1994). The calculations of service quality and customer satisfaction.

Theoretical and empirical marketing and management Vol 3.

Johns & Sasser (1995). Whey satisfied customers defect. Harvard Business Review.

Johnson (1992). “Customer driven organization can smile: Proceedings of the Annual

Conference of the marketing education group Vol. 1. Loughborough University Business

School, Loughborough.

Mary, J. O. Bitner Valarie, R. (2003). Integrating customer focus access confirm.

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Narver, S. & Slater, S (1990). The effect of customer orientation on performance of organisation,

Journal of marketing Vol. 54 No. 1.

Oliver (1980). “A cognitive model of the antecedents and consequences of satisfaction

decisions” Journal of marketing research.

Payne, A. F. (1988). Developing a customer oriented organisation. “Business Horizon May-June.

Peters and Waterman (1982). In search for excellence for years latter, strategy and organization

do marker” Management Decision Vol. 29.

Reicheld (1996). The loyalty effect. Harvard Business School Press Boston M.A.

Reichheld, F. F. (1996). The loyalty effect. Harvard Business Press, Borton M. A.

Schneider (1980). The service organisation climate is critical, organizational dynamics. Autumin,

reprinted in Bostorn SEG (Ed)

Woodfruff, C. & Jeulkins (1987). Expectation and norms in models of customer satisfaction,

Journal of marketing research.

Woodruff, R. B. (1997). Customer value: The next source of comparative advantage” Journal of

the Academy of marketing science.

Yi, Y. (1990). A critical review of consumer satisfaction “Review of monetary association.

Chicago I. L.

38

APPENDIX 1

R.V. KREJCIE AND D. W. MORGAN (1970) SAMPLE SIZE ESTIMATION

TABLE

N* S† N S N S N S N S

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

85

90

95

10

14

19

24

28

32

36

40

44

48

52

56

59

63

66

70

73

76

100

110

120

130

140

150

160

170

180

190

200

210

220

230

240

250

260

270

80

86

92

97

103

108

113

118

123

127

132

136

140

144

148

152

155

159

280

290

300

320

340

360

380

400

420

440

460

480

500

550

600

650

700

750

162

165

169

175

181

186

191

196

201

205

210

214

217

226

234

242

248

254

800

850

900

950

1000

1100

1200

1300

1400

1500

1600

1700

1800

1900

2000

2200

2400

2600

260

265

269

274

278

285

291

297

302

306

310

313

317

320

322

327

331

335

2800

3000

3500

4000

4500

5000

6000

7000

8000

9000

10000

15000

20000

30000

40000

50000

75000

1000000

338

341

346

351

354

357

361

364

367

368

370

375

377

379

380

381

382

384

*N is the population

†S is the sample size

39

APPENDIX 2

QUESTIONNAIRE

Dear respondent,

I am a final year student conducting a purely academic study as a partial requirement that leads

to the award of the degree of Bachelor of Commerce of Makerere University. Answers provided

will be treated with utmost confidentiality and used for only academic purposes. I therefore,

kindly request you to truly answer this questionnaire.

Thank you very much.

………………………….

NANTEGE MADINAH

RESEARCHER

SECTION ONE

Demographic Characteristics (Please tick your appropriate choice)

1. Sex: Male Female

2. Marital status: Single Married Divorced/Separated

Others (specify)……. ……………………………………………………………

3. Age (Years): 18 – 30 31 – 40 41 – 50 Above 50

5. Education level: Diploma Certificate Degree Masters

Ph.D Others (specify)…………………

40

SECTION TWO: CUSTOMER ORIENTATION

(Please tick your appropriate choice in the answer box provided)

Statements Answer (Option)

Strongly

Agree

Agree Not

sure

Disagree Strongly

Disagree

1 Airtell Uganda Ltd encourages customer

comments and complaints because they help

us to satisfy their needs

2 Airtell Uganda Ltd has a strong commitment

to our customers

3 After-sales service is an important part of the

business strategy

4 Airtell Uganda Ltd is always looking at ways

to create customer value in the

products/services

5 Airtell Uganda Ltd defines its

products/services quality in terms of customer

needs

6 Airtell Uganda Ltd business objectives are

driven primarily by customer needs

7 Airtell Uganda Ltd is quick to detect changes

in the customers’ performances

8 Airtell Uganda Ltd believes that the business

41

exists primarily to serve customers

9 Airtell Uganda Ltd carries out consumer

surveys at reasonable intervals to assess

customer satisfaction

10 Airtell Uganda Ltd searches for opportunities

in areas where customers have a difficulty

expressing their needs

SECTION THREE: CUSTOMER SATISFACTION

(Please tick your appropriate choice in the answer box provided)

1 The staff in all departments is caring and

enthusiastic to all customers.

2 Staff in all departments is easily approachable

and willing to help all customers.

3 Equipments used by staff to provide services to

customers are modern and sometimes you do

not expect them thus ended up surprising you.

4 All the staff’s dressing code is adequate and

satisfactory to all customers.

5 All the staff’s tone of voice is adequate and

satisfactory to all customers.

6 The behaviour of all the staff in all departments

instills trust in all customers male and female.

42

7 All the staff is consistently polite when

responding to customers’ needs, values and

beliefs.

8 All the staff is consistently courteous when

responding to customers’ needs, values and

beliefs.

9 All the staff in all departments is able to control

their emotions.

10 All the staff in all departments is able to

apologize to complaining/dissatisfied

customers.

Thank you

43

customer orientation and customer...

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