The concept of satisfying customers is rooted deep in the philosophy of marketing and is a key element in most marketing defi

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CHAPTER ONE:

INTRODUCTION

1.1 Background of the Study

The concept of satisfying customers is rooted deep in the philosophy of marketing and is a key element in most marketing definitions. Measuring and understanding customer satisfaction are important elements in any organization (Ahn, Han and Lee, 2006). Customer satisfaction has a significant influence on friendly atmosphere and speed of feedback. Then, expectations are important comparison standards that help consumers to evaluate the perceived performance of the services that offer throughout and at the end of the service counter. Customers are satisfied if the experience matches or exceeds their expectations, and dissatisfied if the service performance fails to match their expectations (Soderlund and Rosengren, 2008).

Customer satisfaction is important to an organization because to measure the level of satisfaction weather is bad or good, which in turn helps the organizations to make improvement or make any adjustment towards their services provided (Turel and Serenko, 2006). If the customer satisfied, so it can give impact positive word of mouth and can also create loyalty for the organization. Customer service is a system of activities that comprises customer support systems, complaint processing, speed of complaint processing, fair prices of the services, ease of reporting complaint and friendliness when reporting complaint (Kim, Park and Jeong, 2004). The improved quality of services is the focal point of the service providers for social as well as for economic reasons. From a social point of view, services should be available to the customers on reasonable terms. As far as economic factor is concerned, services should satisfy the needs of the customers (Turel and Serenko, 2006; Melody, 1997).

For developing satisfaction among customers, service providers need to be extra careful for the services they provide. Satisfaction of customer is determined by his evaluation of service provided by a brand (Gustafsson, Johnson and Roos, 2005). The study of Ahn, Han and Lee (2006) shows that when the customers get low quality services or their complaints are not considered properly, they start looking for other brands. Sometimes, service providers take considerably longer time to resolve the customer problems like service quality and unfavorable terms and conditions, they lose satisfaction with that particular brand (Ahn, Han and Lee, 2006).

Furthermore, the friendly attitude and courteous behavior of the service workers at service firms leaves a positive impression on the customer which lead towards customer satisfaction (Soderlund and Rosengren, 2008). Kim, Park and Jeong (2004) argued that service provider should provide customer oriented services in order to heighten up customer satisfaction. It was also found that the customers get satisfied to a brand more if they get all the needed services accumulated in that very brand (Ahn, Han and Lee, 2006). However, many of these studies have scanty information or no information at all on the social factors influencing service provision and customer satisfaction, which therefore, forms the basis of this study, taking Kenya Power and Lightening Company as a case study.

1.2 Problem Statement

There are several social factors influencing customer satisfaction like friendly atmosphere, personal attention, and speed of feedback and also complete form. So, the organization can know what the factor that can influence customer satisfaction and how to improve customer satisfaction. Moreover, the importance of good service provision has obtained a significant amount of attention by many managers and academic scholars in a variety of fields. Identifying the nature of the relationship between service quality and relevant constructs like customer satisfaction appears to be advantageous as it assists in the development of better managerial decisions. This realization is reflected by the increasing number of publications devoted to such topics as customer satisfaction, service quality, customer service, and service marketing (e.g., Beck, 2005; Chang, 1998; Choi, 2001; Cho, Lee, & Chon, 2004; Petrick & Backman, 2002). However, many organizations do not have enough knowledge on the social factors influencing customer satisfaction regarding the service that provided by their staff when the customer come to make their complaint. This study therefore, investigates the social factors influencing service provision and customer satisfaction in an organization, with a case study of Kenya Power and Lightening Company of Kisumu County.

1.3 General Objectives of the Study

The main aim of the study will be to investigate social factors influencing service provision and customer satisfaction in an organization, a case study of Kenya Power and Lightening Company (KPLC) of Kisumu County. It will be guided by the following specific objectives;

To investigate the social incentives affecting service provision and hence customer satisfaction with the services offered by Kenya Power and Lightening Company (KPLC) of Kisumu County

To find out socio-economic factors affecting customer satisfaction and service provision by Kenya Power and Lightening Company (KPLC) of Kisumu County

To explore intervention measures and policies that can be put in place to facilitate good quality services for positive customers satisfaction with the KPLC of Kisumu County.

1.4 Research Question

The study will be guided by the following research questions;

What are the social incentives affecting service provision and hence customer satisfaction with the Kenya Power and Lightening Company (KPLC) of Kisumu County?

What are the socio-economic factors affecting customer satisfaction and service provision by Kenya Power and Lightening Company (KPLC) of Kisumu County?

What are some of the intervention measures and policies that can be put in place to facilitate good quality services for improved customers satisfaction with the KPLC of Kisumu County?

1.5 Significant of the Study

The findings and the results of this study will play a very significant role because it may be useful to the customers or the communities who depend on services quality of the workers, the workers themselves and the policy makers in the government concerned with service offering parastatals. It may also help the Human Resource Management of various organizations on how to motivate their employees for good service delivery and productivity. 1.5.1 Policy Makers

This study will assist the government in making new policies that can guide the organizations in developing or establishing their policies for increasing the quality of services provided by KPLC for good customers satisfaction.

1.5.2 Customers

This study may come up with significant findings and recommendations which upon implementations may help the customers and the communities who benefit from the services offered by the KPLC workers receive convenient services at a premium. Through the questionnaire contributed, the customers can express their feelings, ideas and comments on the subject matter. These in whole would benefit KPLC, in the long term understanding and the need and expectation of their customer.

1.5.3 The organization

The study also important to the organization like KPLC, because the findings of research will play a vital role in making this service management and the organization also can also get the opportunity for improvement in making successful management. Other than that, the organization can know the extent the level of customer satisfaction of services provided by them.

1.5.4 Employees and Human Resource management

This study may give the employees of various organizations the opportunity to improve their service delivery and productivity because they will have adequate information on social factors influencing their productivity and service delivery. It may also help the human resource managers from various firms on ways of improving service delivery and productivities of the employees.

1.5.5 Researchers

This researcher is mostly significant to the researcher. The researcher can apply the theory that is learned at classroom into practical manner. The researcher will also be exposed with firsthand experience in carrying out research to meet both academic and industry requirements.

1.6 Scope and Limitation of the study

This study will be conducted at KPLC as one of service offering organizations to investigate social factors influencing service provision and customer satisfaction with the services offered by the organizations. The study only intends to focus on the customers and senior employees of KPLC. However, the findings of the organization may not be used to draw conclusive information of other service offering organizations in the country. The study also deals with customers and senior employees of KLPC hence may not be used for the general population.

1.7 Conceptual Framework

According to the conceptual framework in figure 1.1, social incentives such as award and recognition, social events, social interaction and coworkers relationships and socio-economic factors such as price of the services, workers’ remunerations their promotions (independent variables) affect directly the service provision and customer satisfaction with the services offered because, poor or lack of social incentives and unfavorable socio-economic factors such as inflated price of the services, meager workers’ remuneration and lack of promotions discourages the service provision, delivery of the employees and the general organization, which subsequently discourages customer satisfaction.

1.8 Operation Definition of Terms

Customer Satisfaction: Degree of satisfaction that provided by goods and services of a firm as measured by the number of repeat customer. Satisfaction itself also can refer the number of different facts of the relationship by customer like satisfaction about quality of a particular product or services and satisfaction with ongoing business relationship itself

Friendly atmosphere: Showing kindly interest and goodwill or serving a beneficial that helpful purpose

Motivation: Is a decision making process. The individual chooses the desired outcomes and sets in motion the behavior that is appropriate to achieve the desired outcomes

Service delivery: Satisfactorily performing the duty assigned

Social incentives: This is where your behavior or actions are motivated by your desire to conform to what others (society) do, so you can be accepted by others

Social interaction: Social interactions refer to particular forms of externalities, in which the actions of a reference group affect an individual’s preferences

Speed of feedback: A response to an inquiry or experiment and also the process in which part of the output of a system is returned to its input in order to regulate its further output

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