International Journal of Commerce and Management Research

International Journal of Commerce and Management Research

ISSN: 2455-1627
Impact Factor: RJIF 5.22
www.managejournal.com
Volume 4; Issue 6; November 2018; Page No. 19-24

Service quality and customer satisfaction in the pay TV industry: A case study of
Multichoice Zambia Limited
Zondiwe Anthea Musonda1, Dr. William Phiri2*
1-2
Department of Business and Management (MBA-IDE), The University of Zambia, Lusaka, Zambia

Abstract
The study aimed at assessing the effect of service quality of Multichoice on customer satisfaction. The target population
constituted Multichoice Customers, Managers, and agents offering Service to customers on behalf of Multichoice. The study used
a case study design adopting a mixed research in order to gain deep insights and better understanding of the subject under
investigation. Questionnaires and structured interviews were used to collect both qualitative and quantitative data. Quantitative
data was analysed using Excel and Statistical Package for Social Sciences (SPSS) in order to generate frequencies and graphs for
easy interpretation and analysis of data, while content analysis was used to analyse qualitative data. The findings of the study
revealed that service quality positively correlated (r = 0.589) with customer satisfaction. The findings further revealed customer
satisfaction with the facilities, service delivery, and number of channels on their packages, convenience and the variety of
customer service support platforms available. However, despite indicating satisfaction with the above quality of services, the
participants scored Pricing of content, Reliability and not showing latest contents lowly. Following the research findings, the
following recommendations were developed: 1.Multichoice management should set-up quality assurance on 3rd party vendors and
suppliers to improve reliability of the overall service quality.2. Multichoice should put in place a service quality model that will
guide the continuous monitoring service quality offered. 3. Multichoice management should put in place continuous improvement
plans in order to continuously monitor the performance of operating systems.

Keywords: service quality, customer satisfaction and pay TV

1. Introduction: Background of the study extending the operating hours and increasing call centre
Service quality is an area of concern for the Pay TV industry. capacity, investing in technology and increasing content
Service quality is known to increase revenue, reduce churn offering, staff training and development and several other
and help a company achieve competitive advantage, and initiatives aimed at reducing churn aimed at increasing
sustainable growth on the market through customer customer satisfaction.
satisfaction. (Haslinda, 2014) [9]. The neglect of service Customers’ needs are rapidly changing and this is an indicator
quality leads to high churn rates, loss of revenue, negative that organisations must proactively work to meet the needs of
brand reputation and loss of market share. Service quality in their customers. Profit making is one of the main objectives of
the past years had received little attention in Zambia, a business. However, satisfying all stakeholders needs is of
especially among companies that offer Pay TV. In this sense, utmost importance because it brings about sustainable growth
there was no deliberate effort or standard operating procedures as service quality is a primary factor for business success
used to guide the service provision and also to regulate the (Jobber D., 2010) [11]. Service providers therefore are expected
quality of service offered to customers. Customers’ needs are to provide high standards of service delivery to customers
rapidly changing and this is an indicator that organisation’s regardless of the nature of their business. (Kotler, 2003) [14]. It
must proactively work to meet the needs of their customers. is argued that the growth and survival of companies largely
Profit making is of the main objectives of a business. depend on their customers to which Multichoice is no
However, satisfying all stakeholders needs is of utmost exception.
importance because this brings about sustainable growth of
any organisation as service quality is a primary factor for 1.1 Statement of the Problem
business success (Jobber D. 2010) [11]. Service providers are Multichoice mission is to provide high quality pay television
expected to meet certain standards of service delivery to their through cutting edge technology, content and service ensuring
customers regardless of the nature of their business (Kotler, pleasant viewing and enjoyment for its subscribers (Naspers,
2003) [14]. It is argued that the growth and survival of 2015) [15]. Multichoice has running for 20 years in Zambia and
companies largely depend on their customers to which has faced customer satisfaction challenges. Customer
Multichoice is no exception. satisfaction is an ongoing problem affecting Multichoice
(Naspers, 2015) [15] reports that Multichoice places great customers. Complaints received through the call center range
importance on customer satisfaction and this can be seen from from 1,500 to approximately 10,000 per month seeking
the initiatives employed such as expanding the call centre, service support from Multichoice. The walk-in-centers receive

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International Journal of Commerce and Management Research

about 500 to 1,000 Customers daily seeking complaints And reliable guide in designing workable service delivery
resolution. (Naspers, 2015) [15] The issues necessitating improvement strategies. Furthermore, it is hoped that the
complaints range from poor transmission signal, premature findings of the study can guide other researchers to further
account disconnections, delays in activating accounts and research into specific aspects of service quality dimensions
perceived delay in installation of decoders and satellite dishes and customer satisfaction in the Pay TV industry
after purchase. Despite having a robust distribution network,
trained staff, latest technology used in delivering service 2.1 Conceptual Framework
coupled with various self-service options for payments and The below conceptual framework was used to guide this
other support services, Multichoice is still faces with study. The framework was formulated by Parasuraman et al.,
challenges in satisfying its existing customers. According to (1988).
the 2016 Multichoice employee report for Multichoice Africa,
the (NPS) Net Promoter Score- the measure of how willing
customers are to recommend Multichoice to friends and
family as at October 2017, was 56%, (CSAT) Customer
satisfaction score for the period April- October 2017 was at
64% compared to the annual set target of 90%.Furthermore,
the economic challenge faced by Zambian citizens means to a
great extent that customers have to balance up their
expenditures on livelihood related matters in comparison with
pay TV content which is classified as a luxury. According to a
report by the World Bank (BANK, 2016) [1], Zambia is rated
as MIC (Middle –income country). Since 2015, Zambia has
been under strain and growth had slowed to less than 3%.
Economic growth has been slow and poverty remains at a
national average of 54% and rural poverty rate at 77%. The
study was guided by the specific objectives as outlined below:

1.2 Specific objectives of the study

1. To establish Multichoice key performance indicators
2. To assess the quality of service quality by Multichoice
3. To determine the relationship between Multichoice service
quality and customer satisfaction

1.3 Significance of the Study

This study is significant to the Multichoice, because it brings
out the service quality dimensions that can be used assessing
the level of customer satisfaction. The study offered insights
on the level of customer satisfaction with the service quality
offered, in order for Multichoice Zambia management develop Fig 1
and implement effective service quality delivery to customers
to ensure that customer satisfaction is achieved. 2. Literature Review
This study provided empirical support to Multichoice Here under is relevant literature reviewed based on the global,
management’s strategic decision making in the improving the regional and local model perspective guided by the research
service quality dimensions’ and to provide a justifiable, valid objectives.

Table 1
Author/Year Findings Gap
Haitman & Study conducted in 3 countries but with less sample size.
A positive effect was found to exist between service quality factors
Khodabandeh/ Use of qualitative method only limited further insights
and customer satisfaction
2015 on customer perceptions and opinions
The research findings found that assurance, bundle of services, The research findings are only indicative of the extent to
Kuong & Hiep/ responsiveness ad tangibles has more effect on customer satisfaction which each dimension affects customer satisfaction and
2014 while the empathy, switching costs reliability and price were not too used a sample size that may not give significance
strong generalisations.
Reliability, network quality are crucial in satisfying customers and
Wanjiru Sarah / The study used general service quality dimensions and it
that service quality and customer satisfaction have an effect on
2013 did not measure actual factors in pay Television industry
company performance

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International Journal of Commerce and Management Research

Identified lack of communication as a result of customer

The use of qualitative method limited the information
dissatisfaction Lack of internal support to frontline staff in
Gwaza Nzamo/ output of respondents, a combination could have brought
delivering service, such empowerment through training and required
2014 out specific recommendations that will find solutions to
tools Lack of reward and recognition of staff delivering the service
the findings
to external customers.
SERVQUAL not best model to measure the delivery
Themba Mary/ There was lack of general customer satisfaction with the services because most of the factors recorded negative
2013 delivery. Inconsistent network services affected satisfaction relationship, the further study may consider Gap analysis
or SERVPERF
The study conducted the study in one town, a larger
Foreign banks registered better in quality through Tangibility,
Sinchinsambwe/ population could have been identified as these findings
responsiveness, reliability and assurance than compared to local
2017 may not be accurate due to cultures of people,
banks.
management styles and resources available
The study used the SERVPERF model in measuring
The service quality dimensions were all positively correlated with quality. SERVQUAL Model would have been
Mwiiya et al., 2017
customer satisfaction appropriate as it would have given the researcher chance
to contextualise it to the education sector.

3. Methodology revealed that there has been negligible effort to effort to

The research design that was adopted in this study was case develop service quality dimensions for Pay TV organisations.
study. This method was since the paper sought useful to gain (Haitman, 2015) [8] In his study conducted on customer
understanding on an entity; Multichoice. It offered detailed satisfaction of IPTV customers, highlighted the need to
contextual analysis of limited events and condition customise the service quality dimensions in order to critically
(Blumberg, 2008) [2]. The study used both quantitative and identify the factors causing dissatisfaction among customers.
qualitative methods for data collection. The study sample
included Multichoice customers, Multichoice management 4.2 Assess the Quality of Service by Multichoice
and multichoice accredited agents. This research sample size The second objective of this was to assess the level of
was 150 customers, who walked into Multichoice offices. 10 customer satisfaction with the service quality offered by
Multichoice managers and 18 accredited agents. This sample Multichoice.51% of participants revealed that Multichoice
was based on the findings of (Fielding, 1996) [6] which states services are not reliable, while 29% disagreed.68% confirmed
that a sample size must be at least 30% of the total population their satisfaction with the physical environment, only 49%
under research. Primary data collection was done through 5 agreed to viewing latest content and 61% agreed that
point Likert scale questionnaires and structured interview Multichoice offers a variety of customer service support.
guides. Secondary data was collected through literature However only 45% revealed that the pricing of Multichoice
review. This type of questionnaires is important for assessing packages is fair, 80% agreed that the service support is
opinions of participants that are not exact. Thus structured convenient and84% confirmed that they are willing to
interview was used to gain more insight on customer recommend family and friends to buy the products and
satisfaction. The analysis was based on quantitative data services of Multichoice.
collected from questionnaires and qualitative information
from interview guides. Primary data collected was analysed Reliability
using descriptive and thematic analysis. The data was
analysed using Microsoft Excel and SPSS to check for a
relationship between the independent variables of service
quality dimensions and dependent variable identified as
customer satisfaction. The qualitative data collected was
analysed using thematic and descriptive statistics to
summarize the pattern of findings. All ethical considerations
such as participant’s consent, anonymity and confidentiality
were taken into consideration during the study.

4. Presentation of findings
The findings from the data collected are presented as follows:

4.1 Establish Key Multichoice Performance Indicators

The study established 7 key performance indicators for Source: Field Data 2018
Multichoice. These are Reliability, tangibility, customer Fig 2
service, content, price, convenience and interactivity. These
indicators are critical in establishing the service quality The findings revealed that 51% of customers cumulatively
offered by Pay TV company. The above findings are disagreed that Multichoice services are reliable while 20%
supported by a study conducted by (Dawi, 2015) [4] which agreed and 9% strongly agreed.

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International Journal of Commerce and Management Research

Tangibles Content

Source: Field Data 2018

Source: Field Data 2018
Fig 6
Fig 3
The findings revealed that 49% of respondents confirmed that
The study revealed that the general facilities and the physical they watch latest content on their packages while 43%
environment in Multichoice offices were of good standard. disagreed to the notion.
68% participants agreed that the facilities at Multichoice are
of good standard and 32% disagreed. Convenience

Service Support

Source: Field Data 2018 Source: Field Data 2018

Fig 4 Fig 7

The study revealed that 61% of participants confirmed that the The findings revealed that 80% of participants agreed that
customer service at Multichoice is good and 21% disagreed to Multichoice payment systems are easily accessible.
the notion.
Satisfaction
Pricing

Source: Field Data 2018 Source: Field Data 2018

Fig 5 Fig 8

The findings revealed that only 39% of participant’s agreed The revealed that 83% of respondents agreed and strongly
That Multichoice packages are fairly prices while 34% agreed that they are willing to recommend new customers to
disagreed. join Multichoice

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International Journal of Commerce and Management Research

4.3 Establish the relationship between Service Quality and increase in price will lead to -.204 decrease in customer
customer satisfaction satisfaction, and a unit increase in convenience will lead
The study findings revealed that there is a significant to.122 increase in customer satisfaction.
relationship between service quality dimensions and customer This finding can be confirmed by other studies that provided
satisfaction. The regression of this study revealed that holding empirical evidence on the relationship between service quality
all factors (reliability, tangibles, service support, content, price and customer satisfaction. (Sichinsambwe, 2017) [17], (Dorang,
and convenience) constant factor affecting customer 2014) [5] and (Wanjiru, 2013) [18] (Fielding, 1996) [6]. This
satisfaction is 3.126. This also shows that taking all other empirical evidence shows that multichoice must take special
variables constant, a unit increase in reliability will lead to consideration and craft strategies that will continuously
a.051 increase in customer satisfaction; a unit increase in improve the reliability, tangibility, service support, content,
tangibles will lead to a.150 increase in customer satisfaction; a price convenience and interactivity so that they achieve
unit increase customer service support will lead to.030 customer satisfaction. This is because all business strives to
increase in customer satisfaction; a unit increase in content achieve sustainable growth.
will lead to.130 increase in customer satisfaction; a unit

Table 2
Coefficientsa
Unstandardized Coefficients Standardized Coefficients
Model t Sig.
B Std. Error Beta
(Constant) 3.126 .420 7.448 .000
Reliability .051 .061 .084 .831 .408
Tangibility .150 .077 .195 1.938 .056
1 Content Quality .130 .058 .222 2.226 .028
Customer service .030 .070 .046 .435 .664
Price -.204 .061 -.343 -3.354 .001
Convenience .122 .087 .145 1.403 .164

The research findings from the interview guide with managers a unit increase in reliability will lead to a.051 increase in
at Multichoice indicated that the key performance indicators customer satisfaction; a unit increase in tangibles will lead to
for Multichoice include, increased revenue collection, increase a.150 increase in customer satisfaction; a unit increase in
in sales volumes and setting high customer service standards customer service support will lead to.030 increase in customer
in order to win a bigger share of the market. This is in satisfaction; a unit increase in content will lead to.130 increase
agreement with the study conducted by (Khodabandeh, 2016) in customer satisfaction; a unit increase in price will lead to a -
[12]
that there is need to constantly monitor the performance of .204 decrease in customer satisfaction and a unit increase in
a company with the above attributes identified by the convenience will lead to.122 increase in customer satisfaction.
managers. Further the agents reported that service quality is Tangibility, Customer service and convenience recording a
affected by the quality of internal service support to frontline perfect relationship with customer satisfaction. Price,
staff. This ultimately affects the service that is offered to however, recorded negatively correlated with customer
external customers. (Gwaza, 2016)[7] in his study on the effect satisfaction.
of internal service quality on external service quality Agents interviewed revealed that the key indicators for
identified that internal service support is critical as it has a Multichoice include, high sales, increase in subscriber
direct impact on the service quality to external customers. numbers and receipt of less customer complaints.
Internal service is important because if it is not well managed
it can have ab effect on the moral of staff thereby affecting 5.2 Recommendations
service delivery and customer satisfaction. The study revealed The study developed the following recommendations
that service quality has an effect on customer satisfaction. originating from this study;
According to a study by (Dawi, 2015) [4], in his preliminary 1. Multichoice Management should set up quality assurance
study, he identified the key performance indicators for the pay on third party vendors and suppliers. This will improve on
television setting which were applied to this study. These are the reliability of service delivery, third party agents carry
Reliability, Tangibility, Customer service, content, price, almost 80% of cash collections for Multichoice and thus
convenience and interactivity. the need to ensure that they standardize the service
provision in line with the service provision charter of
5. Conclusion and Recommendations Multichoice Zambia.
5.1 Conclusion 2. Multichoice management must in the same vain introduce
The relationship between the service quality dimensions and a service quality model that will allow managers to
customer satisfaction showed that there was a significant effectively monitor the service quality offered in all its
relationship. The regression established that holding all factors outlets, this will increase the overall score of service
(reliability, tangibles, service support, content, price quality dimensions.
convenience) constant factor affecting customer satisfaction is 3. Multichoice Management should engage in continuous
3.126. This also shows that taking all other variables constant, improvement of operating systems used in delivering

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International Journal of Commerce and Management Research

service. These systems include the customer management 12. Khodabandeh AA. The impact of critical IPTV factors on
systems, self-service platforms and other payment customer satisfaction. Mälardalens: School of Business,
platforms so that customers enjoy seamless viewing of Society and Engineering, 2016.
content. 13. Khuong MN. Effects of customer satisfaction through
4. Multichoice management should invest in back end perceived Value and Service Qulity. Internal journal of
internal service quality improvement. current research and academic review. 2014; 2(6):1-17.
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reviewing the prices of its various packages. This will lead Prentice Hall, 2003.
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scoreboard that will guide the evaluation of service quality 1988.
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department. and customer satisfaction in Zambian banks. Internationa
Review of management and business research. 2017;
5.3 Suggestions for further studies 6(1):309-316.
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with the service quality by Multichoice. This has given television services. Nairobi: University of Nairobi, 2013.
insights to Multichoice on how service quality is perceived by
customers. Further study on Multichoice Zambia needs to be
conducted in other parts of the country with a bigger sample
size in order to capture wider opinion of customers. This will
help to gather different views because the management style
or the needs of customers may Vary in other parts away from
Lusaka. Further studies should be carried out to test the effect
of internal processes and their effect on service delivery.

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