EXECUTIVE SUMMARY Survey 2002

This report details the results of an internal survey that was completed for OZNET INTERNET SERVICES during July 2002. The questionnaire was designed to meet eight research objectives that are detailed and outlined below. Essentially the survey attempted to determine which drivers were important in selecting and staying with an ISP and to gauge the current levels of customer satisfaction among respondents. The report found that generally customers are satisfied rather than dissatisfied with the service that they are receiving. The report finds that the most important priority for management is to ensure the delivery of a fast service as this was considered to be the most important service attribute. Further research will need to be conducted to identify suitable target markets and to develop optimal positioning strategies.

RESEARCH OBJECTIVES

Among customers using services provided by OZNET INTERNET SERVICES the objectives of this market research survey are to: -

  1. Measure current levels of satisfaction/dissatisfaction with billing procedures, range of services and price of services
  2. Measure perceptions of service quality
  3. Measure levels of support service performance
  4. Measure overall disconfirmation
  5. Measure importance-performance of service attributes
  6. Assess the company image
  7. Measure the likelihood to recommend
  8. Make a limited demographic profile of respondents

PROCESS AND METHODOLOGY

ANALYSIS AND RESULTS

Respondents were asked to indicate their levels of satisfaction with three service processes, billing, range of services and price, these were measured on a five point scale from very dissatisfied to very satisfied. The results showed that there were higher levels of satisfaction than dissatisfaction among respondents. Statistical tests were conducted to identify whether there was a relationship between a respondents satisfaction/dissatisfaction level and their evaluation of the overall service quality received. The results of these tests showed that a respondents satisfaction with billing procedures and the price of the services was not related to the overall service quality rating. A positive but weak relationship between satisfaction with the range of services offered and the overall service quality rating was identified (gamma .28).

Respondents were asked to indicate the overall level of service quality on a five-point scale from poor to excellent. Perceived service quality (PSQ) measures the customerís judgment of service quality across multiple service encounters. The data indicated that respondents consider the overall quality of the service that they receive to be extremely high with a cumulative percent of 48.2 indicating that the overall service quality was either very good or excellent. No relationship between a respondents length of time with the company and the overall service quality rating was identified. There was a positive, moderate relationship between the overall quality rating and a respondentís likelihood to recommend.

 

In order to measure the performance of the support service, respondents were asked first to indicate whether they had used the service and then to rate three aspects of service performance, overall quality, level of assistance given and response time using a five point scale from poor to excellent. 58.9% of respondents had used the service and 41.1% had never used the service. Data on the performance questions are based on data supplied by 34 respondents. Respondent perceptions of the performance of the support services were positive rather than negative. 15.2% of respondents felt the support response time was poor, a possible area for improvement. A cross tabulation showed a strong and positive relationship between the overall service quality rating and the support service quality rating (gamma .799), this indicates that the support service is used by customers to evaluate the overall service quality performance. There was a strong and positive relationship between a respondentís likelihood to recommend the service and the support service quality rating (gamma .632). Both results indicate that support service performance is an important driver of customer satisfaction, and likelihood to recommend.

 

 

Respondents were asked how well their expectations of service had been met. This was measured on a five-point scale from much worse than expected to much better than expected. Expectations play a crucial role in the formation of satisfaction judgments.

The results showed that the majority of respondents (51.8%) felt that the service received was about as expected, 30.4% felt it was better than expected and 8.9% felt it was much better than expected. A cumulative percent of 8.9 felt that it was much worse or somewhat worse than expected. A cross tabulation showed a significant, positive but moderate relationship between how well expectations had been met and the likelihood to recommend the service (gamma .546). There was a significant, positive and strong relationship between the overall service quality rating and how well expectations had been met (gamma .860), indicating that finding out what a customers expectations of service performance are and then meeting them should be a key outcome.

Of the following attributes:

(1) Leader with new services

(2) Low charges

(3) Convenient hours

(4) Handles my complaints well

(5) Has a wide variety of services

(6) Fast Service

(7) Gives me enough information

(8) Friendly personnel

(9) Makes few errors

(10) Modern

Respondents were asked questions about how important the attributes were in selecting and staying with a service provider, they were then asked to supply a performance rating for OZNET for each attribute. The responses given were then combined to form an attitude score for each respondent. A stepwise regression analysis was carried out in order to identify which attributes were important to respondents in assessing the overall service quality. The results showed that the constant predictor in the model was attitude fast service. This means that providing a fast service was deemed to be the most important of the ten attributes to respondents in evaluating the overall service quality.

 

In order to assess how customers viewed OZNET, respondents were asked to indicate their level of agreement on a five-point scale form strongly agree to strongly disagree on ten aspects of the service. The data was then combined to yield results of agree, neutral or disagree, these are shown in the tables below and show positive perceptions of the company on most aspects.

Recalling the results of objective 5 (attitude to service quality is formed from perceptions of the speed of delivery) there is an indication that close attention should be paid to this area of service delivery. The result findings are reiterated in a 2000 JD Power survey, which showed speed was the most important factor driving customer satisfaction in the US market.

By looking at the percentage breakdown of responses to this question, it becomes apparent that only 24.4% of respondents strongly agree that OZNET provides a fast service.

Oznet provides a fast service

  Frequency % valid % Cumulative %
strongly agree 240 21.4 21.4 21.4
agree 440 39.3 39.3 60.7
neither agree or disagree 300 26.8 26.8 87.5
disagree 60 5.4 5.4 92.9
strongly disagree 80 7.1 7.1 100
Total 1120 100 100  

A respondentís likelihood to recommend a service is a strong indicator of that respondents satisfaction with the service provided. The top-two box score is used to describe respondentís answering the chance that they would recommend the service as 80% or 100%, these scores are combined to form the closest intention to recommend. When using intention questions researchers tend to adjust their figures to account for the fact that respondents do not necessarily act in the way their intentions indicate in a survey situation. 60.7% of the 56 respondents interviewed indicated an 80 or 100% chance of recommending the service, by adjusting the figure to 25% (Crawford; Benedetto: 2000: 177) we can assume that 15.2% of respondents will recommend the service to others.

In this instance the researcher choose to ask limited demographic questions. The survey was carried out internally and was the first of its kind; a fair assumption was made that respondents would be disinclined to give personal information to the company that was generally unrelated to measuring satisfaction.

Gender: Of the 56 respondents, 45 were male and 11 were female. There was no relationship between a respondentís gender and whether they used the service for business or recreation.

Geographical Profile: Of the 56 respondents the majority 94.6% resided in Australia, the survey was flawed in the fact that it was not inclusive of those not residing in Australia and this accounts for missing data of 1 respondent that did not include their country of residence in the "comments" section. 50% of respondents resided in NSW.

Age: Of the 56 respondents only 1 choose not to disclose their age. The age group of respondents was evenly spread, 63.6% of respondents were aged 40 or above.

User Profile: 66.1% of respondents use OZNET services for business purposes, 33.9% for recreation. No relationship between perceptions of service quality and a respondentís length of time with the company was found.

 

 

LIMITATIONS OF THE RESEARCH

RECOMMENDATIONS

Comments: ĎNot only does a real person answer the phone when I call, he can answer all my questions. You seem available at all hours. The service you provide is what attracted me to OZNET and is also what keeps me there.í