The Customer Satisfaction and Its Impact in Achieving Competitive

Advantage in Telecommunications Sector: A Research on Zain

Telecom in Jordan

Abstract

The main purpose of this research was to examine the determinants of customer satisfaction to

achieve the competitive advantage in Zain telecom in Jordan. The goal of this investigation was

to look at the determinants of customer satisfaction in Zain telecom in Jordan and was guided by

the accompanying explicit objective: representing the job of the customer satisfaction in the

competitive advantage for the telecom sector of Jordan; recognizing the different contrasts of the

competitive advantage between the Jordanian telecommunications organizations; distinguishing

the different contrasts of the customer satisfaction among the Jordanian telecommunications

organizations.

The objective population of the investigation being 540 customers of Zain telecom in Jordan and

a sample of 250 customers taken to be a delegate of entire firm in Jordan. So as to data collection

from the inspected respondents, simple random sampling method was used to choose the sample

so as to guarantee every single customer in the objective population was spoken to. The

investigation embraced an overview structure that was elucidating in data collection.

A structured questionnaire was distributed to Zain telecom user in Jordan. Statistical analysis

was done using correlation and multiple regression model in order to establish the linear

relationships between one or more variables and to test the significance of the relationships
between the dependent and independent variables. The data analysis was done using Statistical

Package for Social Scientists (SPSS) version 24 to facilitate computation of descriptive statistics,

multiple regression and Pearson correlation to get answers to the study questions. To test the

hypothesis for this study, the independent variables were regressed against financial performance

as the dependent variable. Inferential statistics such as Pearson’s correlation, ANOVA and

multiple regression analysis were used for further analysis. The findings of this research

conclude that customer satisfaction is the main determinant to achieve the competitive

advantage. These factors are significant in affecting the financial performance of Zain telecom

sector in Jordan. However, continuing research is needed to improve these studies and to address

the limitations of the present study. So, this study will provide an initial insight and

understanding of customer satisfaction level and competitive advantage in Zain telecom in

Jordan to manage the performance.

 CHAPTER 1.

INTRODUCTION

1.1. Background of the Study

Competition in the business world is becoming dynamic and challenging as technology is more

involved. However, customer has now more opportunities to be aware about competition and

having more options due to this competition. The connection among customers and organizations

has firmly evolved to a bearing where the customers have an overwhelming situation it might be

said of bartering power (Peppard 2013; Ghazavi,& Cheraghali, 2013). With this force, customers

have gotten all the additionally mentioning towards authority cooperation’s (Porter 2008;

Peppard 2013) One could express that numerous ventures, including administration industry, are

under the leniency of their customers. Increasing competitive advantage in the present business

services associations is an intense assignment for the director level persons, as they need to find

out how to provide best possible incentive to their possible customers (Al-Abdallah, 2015;

Mantymaa, 2013). Satisfaction of the customer is the possible outcome felt by those customers

that have faced an organization's exhibition that have satisfied their desires. This present research

has uncovered that fulfillment positively affects association's productivity (Angelova & Zekiri,

2011).

These days, the idea of overseeing customer relationship is at the core of promoting.

Hypothetically, this point is an essential piece of advertising literature and is covered in

extraordinary issues in various journals (for example Diary of the Academy of Marketing
Science, Journal of Strategic Marketing, Journal of Database Marketing) and meetings, yet

relationship promoting isn't just constrained to hypothesis (Henning-Thurau et al., 2014).

Because of globalization and expanding rivalry, relationship is turning out to be an ever

increasing number of serious and universal organizations have actualized components of the

association marketing project.

On the one side, organizer has to successfully reach the order of buyer for larger worth and

contentment and on the other side of picture, the investor’s invests for development, profitability

and shareholder value in order to disburse connection. Types of association to be controlled are

diverse and the manipulation the amount, by-product, encouragement and situation are today no

longer abundant to be a competition in the marketplace. Relationships are not only tactically

manageable, but correspond to a strategic approach.

It is essential to get some answers concerning existing connections before overseeing and

supporting them. At that point, relationship-based arrangements must be arranged, sorted out,

conveyed and lead over the business. It is imperative to discover approaches to make sure about

upper hand and convey prevalent included worth and business execution. Hence, vital market

connections are the procedure of investigation and plan of a relationship technique, while the

management of relationshipis the procedure of implementation. Solid client connections are

critical for productivity and existing clients are a higher priority than new ones (Hofacker, De

Ruyter, Lurie, Manchanda, & Donaldson, 2016, p. 7). In this courtesy, invisible amount are hard

to recognize, mostly in customer market connection, as it depends on a recognition of the general

value along with the advantages of the association ‘Ravald and Gronroos, 1996, pp. 19-30’.

Much of the time this is identified with emotive, moral qualities, for example, esteem epitomized

in the brand and its character. Moral and emotive qualities may reinforce the relationship and
hold the client as relationship worth can be connected into impalpable feelings and inclinations

created from the activities of an organization. These impalpable qualities have been estimated by

ideas, similar to fulfillment and maintenance and can be worthwhile ‘Hofacker, De Ruyter,

Lurie, Manchanda, & Donaldson, 2016, p. 31'z. Notwithstanding, relationship can be based on

financial perspectives or specialized choices of an item or a offerring, involving how the service

is conveyed and the level of help offered to upgrade customer worth and meeting customer

prerequisites.

Telecommunication sector is a high assistance requesting and dynamic division, Jordanian media

transmission organizations are confronting a major test of making due in an incredibly,

constantly requesting condition, they need to create frameworks that assume a significant job in

accomplishing operational greatness. Customer relationship management system (CRMS) is one

of the frameworks that bolsters organizations to construct an establishment so as to associate

with customers and increment customer satisfaction and dedication (Al-Weshah., Al-Manasrah,

& Al-Qatawneh, 2019).

The most recent innovations can't manage Internet advertising issues or draw in new customers,

in this way, organizations can't consider (CRM) as a disconnected undertaking, they have to

manage these frameworks as business technique for the whole association. Every one of

organizations' individuals ought to be taken an interest with the CRMS vision. CRMS furnishes

organizations with certain points of interest, for example, helping staff to more readily access of

data, service quality enhancements, more level of customer devotion, deals process

improvement, powerful allotment of errand and time, publicizing, and different upgrades in

promoting instruments (UturyteVrubliauskiene and Linkevicius 2013).

CRM isn't just innovation applications for marketing and sales, but it also is an innovation

incorporated business process the board system that amplifies customer connections (Alnassar

2014). CRM was conceived from promoting relationship and is the handy use of long haul

relationship advertising (Alnassar 2014). Relationship marketing has an away from on the

significance of creating subjective, long haul, and strong associations with existing customers

just as drawing in new customers (Al-Weshah et al. 2013). Jordanian media communications

organizations are looking to increase dynamic investment and commitment in wide territories of

organizations. CRMS helped them to drop the need of vis-à-vis associations for the procedure of

customer's communication, besides, CRMS bolsters Jordanian organizations re-organizing for

contending with worldwide organizations and accomplishing development in their business

execution (Harb and Abu-Shanab 2009).

Customer Relationship Management is not a new concept. In fact, CRM in some form or fashion

has been around for a few decades. Abu-Shanab, & Anagreh,(2015) characterizes client

relationship the executives as being "tied in with recognizing an organization's best clients and

boosting the incentive from them by fulfilling and holding them" (p.58). There are those on the

two sides of the fence who contend for and against CRM, yet the exploration stays predictable

that an appropriately executed, expansive CRM activity will really set aside organization cash,

increment income, and develop consumer loyalty. Serious occasions, for example, these, and a

future to just develop increasingly serious in the business, require upper hands to give

organizations a main edge. Consumer loyalty is a lot of basic for the accomplishment of media

transmission areas in Jordan in light of the fact that as an ever increasing number of

organizations are developing quickly and rivalry develops wild step by step all the organizations

needs to hold their clients with the goal that they can expand the benefit of their particular
associations. In this manner, CRM enables a ton in serving to hold their clients since it serves to

plan such business exercises which will make hold their clients.

Yan, Md-Nor, Abu-Shanab, and Sutanonpaiboon, (2009) did not find this situation impossible,

by concentrating the solutions on the associations' protection of endurance, the revenue, which is

gained from longtime devoted customer group. Associations can not continue the business

without having financial value, at the end of the day they need to have a larger value of profit

than their expenditure on activities and the biggest pathway of dominant part of the profit is

through customers. The importance of customer relation has now gained considerable focus

during the last ten years and diverse promoting examines features the job of customer

satisfaction and the beneficial outcome of their unwaveringness in administration associations

(Yu and Dean 2001, for example, banks and protection firms (Peppard 2000). The important

reflection of long haul intensity is to work with the customers in a status that is unrivaled,

contrasted with the opposition and with that, gain the customer's devotion (Lu, Wirtz, Kunz,

Paluch, Gruber, Martins, & Patterson, 2020).

The focus in number of administration hypothesis has been to make an extraordinary worth and

serious situation for possible associations (Schlesinger, Cervera, & Pérez-Cabañero, 2017);

Szöcsik, & Zuber. 2012). Various methods have surfaced in the executives written documents to

give this serious benefit to alliance, for instance, dynamic methodology, asset oriented

methodology, relationship with customer and the executives, complete quality help and

experience based hypotheses. Each of these individual hypotheses have concentrated to improve

the different perspective of associations' characteristics using the method of viability and

productivity. Techniques opted by marketing experts Gold, Sullivan, Smith, & Lynds, (2014).,

have thrown light on the focus to the reflections of admin quality on customer satisfaction levels
and its straight effect on associations process, yet various of admin association techniques act as

the catalyst in promoting this serious wellspring of customer satisfaction.

1.2. Problem Statement

Many researchers have done the research on customer satisfaction on various industries while some

focused on telecom industry by narrowing their scope of study to one particular type of telecom.

However, not much researchers study about the conventional telecom services available in telecom

industry especially in Jordan. Since nowadays, the development of telecom industry had influenced the

method business used to serve their customers (Kaur, Pamjit, Negi & Meenakshi, 2010) thus, it is

essential to know what determinants that affects the customer satisfactions in telecom services.

The problem statement of the present study is alluded in the competitive edge of the Jordanian

telecom organizations, and the degree to which the customer satisfaction can assume the role in

accomplishing a competitive advantage.

1.3. Research Objective

The overall aim of this study is to establish the relationship between the competitive advantage

of the telecom industry with customer satisfaction, which attempts to supplement the majority of

the previous studies that fulfilling economic needs rather than academic desire.

The study aimed to achieve the following:

1. To illustrate the role of the customer satisfaction in the competitive edge for the

telecommunication companies in Jordan.

2. To identify the various differences of the competitive advantage of telecommunication

companies in Jordan.
3. To identify the various differences of the customer satisfaction among the Jordanian

telecommunications companies.

1.4. Research Questions

What is the function of customer satisfaction in achieving competitive advantages for the

Jordanian telecommunications companies?

How satisfied customer really needs to be for a company to gain competitive edge?

1.5. Significance of the Study

The centrality of the research ascend from the significance of the factors in question, while the

social duty with its different measurements and the premiums appeared to it by the Jordanian

telecom industry that need to possess an competitive advantage in the realm of open-

globalization underline the significance of the inquired area, the Jordanian telecom sector.

This study will elucidate knowledge about the competitiveness of telecom industries in the

Jordan country. On one hand, this knowledge will help in realizing the prevailing business

environment in this sector in Jordan, while on the other hand; the study findings will serve as

lessons to be shared by other developing countries in shaping their telecom industries. Therefore,

the findings of this thesis will be useful for researchers, academicians and practitioners.
 CHAPTER 2.

LITERATURE REVIEW FOR BASIC CONCEPT

2.1. Theoretical Review

2.1.1. Resource Based View

This theory was brought forth by Lenka, Suar and Mohapatra (2013). The resource based view

on strategy plays a pivotal role in retaining customers in the organization). The theory as a basis

for the competitive advantage of a firm lies primarily in the application of a bundle of valuable

tangible or intangible resources at the firms’ disposal (Rumelt, 2014) The growth and

performance in the banking industry majorly depends on uptake and usage of the banking

products offered by different players in the industry. Competitive strategies play an important

role in achieving customer retention; commercial banks can employ a number of competitive

strategies for customer attraction and retention for example generic strategies postulated by

Michael Porter (Snyman & Drew, 2015). There is evidence that profitability differs much more

between businesses than between industries. The beginnings of the theory of gaining a

competitive advantage through internal factors can be attributed to Beynon (2015).

The resource based view of the firm has gone through a considerable amount of modifications

and variations during the past three decades by a great number of scholars using terms such as

resources, capabilities, assets and or core competences to describe intrinsic factors that lead to a

competitive advantage for a firm. Although scholars use a variety of terms, this research will

only use the term `resources to describe tangible assets, intangible assets, activities, capabilities

and competences alike. A company's resources can be categorized into physical capital

resources, human capital resources and organizational capital resources (Shah, 2014). The

resource-based-view assumes that resources are heterogeneously distributed among firms and

immobile. Only this assumption can guarantee that a resource can be the source of competitive

advantage (Barney, 2011).

According to the valuable, rare, inimitable and fit into the organization–framework (VRIO), a

resource needs to possess the above values so as to provide a sustained competitive advantage.

Especially the question if a company's resource fits to the organization determines if a company

can truly exploit the resource and as a result gain a sustained or just a temporary competitive

advantage (Beckhart, 2015). In a rapidly changing environment a fifth characteristic durability

which defines how easy a company's resource is outdated, has proven to be important as well.

Amudha, Surulivel and Vijaya (2013) argued that a company needs strategic assets a

combination of resources and capabilities that respond to industry factors to gain competitive

advantage. However, when competitors learn to duplicate those assets, they will turn into entry

assets and their possession can then only lead to competitive parity. Hence, a company that

wants to be successful in the long-term continuously needs to be able to develop strategic assets.

The theory of core competences argues that companies already compete during the creation of

competences and not only later in the market for products. It is claimed that, instead of
structuring a company around diversified business units and endproducts, a company should be

structured around a few core competences. This allows a company to be flexible, respond to a

rapidly changing environment and be prepared for the future (Grant, 2015). The theory is

relevant to the study given that, according to the resource-based theory, managing strategically

involves developing and exploiting a firm’s unique resources and capabilities and continually

maintaining and strengthening those resources. The theory asserts that it is advantageous for a

firm to pursue a strategy that is not currently being implemented by any other competing firm.

Such resources must be either rare or hard to imitate or not easily substitutable. The competitive

strategies including; market focus and differentiation provide the firm’s ability to recognize and

utilize various resources that to increase firm performance.

2.1.2. The Contingency Theory

The contingency theory draws on the idea that there is no one or single best way or approach to

manage organizations. Organizations should then develop managerial strategy based on the

situation and condition they are experiencing. Thompson et al. (2007) in his classic organization

in action model portrayed the basic problem of an organization as achieving originality in an

uncertain word. Organizations are created to pursue some desired outcomes, yet they are faced

with technologies and environment of varying levels of uncertainty which limits their ability to

plan and execute actions to achieve the desired ends. Thompson vied an organizations as open

systems fundamental with environment over which they had only limited control. Thompson

(2012) conceives environment in terms of several key dimensions, one being organizational

domain, second being task environment which most interpedently and the third is being power

and dependence relation implied by the nature of its domain and task environment. The

organization domain is defined by the claims that the organization makes in terms of its range of
products, the customers it serves and what services it lenders. The most relevant part of the larger

system from the organization’s strategic point of view comprise its external environment which

are the customers or clients, suppliers of materials, labor, capital equipment and work space

competitors for markets and resources and regulatory group including government, union and

inter firm associations.

This theory thus emphasizes on the importance of ensuring that organizational strategies are

appropriate to the circumstances of the organization including the culture operations process and

external environment. Organizational strategies have to take account of the particular needs of

both the organization and its people (Miller, 2008). The contingency theory helps the firm

managers to understand the multiple factors that impacts on firm performance and enable them

adopt a hybrid of competitive strategies to increase firm performance as there is no one or single

best way or approach to manage organizations.

2.2. Definition of Customer Satisfaction

Bolton and Drew (1991) and Cronin and Taylor (1992) mentioned that customer satisfaction is

defined as the judgment made when receiving a particular service based on the services

marketing literature. According to Oliver (1981) said that customer satisfaction is an emotional

reaction which affect the customers‟ attitude. Generally, customer satisfaction took place when

the customer comparing an actual service performance with their expectations of the service

where the differences will generate three types of disconfirmation; positive, negative and zero

disconfirmation (Oliver, 1980). In addition, positive disconfirmation means the satisfaction level

is high while negative disconfirmation means there is high dissatisfaction level. Oliver (1997)

also stated that “satisfaction is the fulfillment response by customer. It is a judgment towards the
product or service feature, or mainly on the product or service itself, provided that a agreeable

level of consumption-related fulfillment, including the under-or over-fulfillment level”. At last,

Anderson, Fornell and Lehmann (1994) characterized customer satisfaction as an increasing

consumption experience. Overall, there are a lot of prior researchers that study about customer

satisfactions in various types of industries especially in service industries. However, not much

researchers that study about the determinants of customer satisfactions in insurance industry.

This is the reason why this research is done in order to find out customers in insurance industry

expectations towards the services provided in the conventional insurance sector so that insurance

companies able to make some changes and improve the services. A few researches were done on

insurance sector customer satisfactions such as Kaur & Negi (2010); Gera (2011); Upadhyaya &

Badlani (2011); Duodu & Amankwah (2011); and few others more.

2.3. Customer Satisfaction

According to the classification by Jones and Sasser (1995), customers can be grouped into four

(4), these are “Apostles”, “Hostages”, “Mercenaries” and “Terrorists”. An “Apostle” is a high

satisfied and high loyalty customer. Such as customer due to their loyalty and satisfaction are

willing to recommend the product or service to others whilst “Hostages” are lowly satisfied but

high loyal customers because they have fewer choices or alternatives. “Mercenaries” are those

customers who are interested in changing their supplier in order to obtain lower prices although

they are high satisfied. Such customers are said to be highly satisfied but lowly loyal.

“Terrorists” on the other hand are lowly satisfied and lowly loyal and uses alternative suppliers

to express their dissatisfaction with their initial supplier. In this study the researcher is interested

in the two extreme, that is, apostle and terrorist hence the interest in the term customer

satisfaction. The interest in the two groups is because the researcher is interested in knowing the
dimension of the services that makes such individuals or customers either highly satisfied or not

satisfied at all. As a term, customer satisfaction (CS) has received numerous attention and

interest among scholars and practitioners alike because of its role as an important variable of

business strategy in this very competitive market (Lovelock and Wirtz, 2007).

Since the early 1960’s to date several researches have been conducted on customer satisfaction

by different researchers. Infact in the words of Parker and Mathews “customer satisfaction has

been fundamental to the marketing concept for over three decades” (Parker and Mathews, 2001).

In 1962 for instance, Sprowls and Asimow built a customer behavior model and indicated that

repeat purchasing of a commodity was as a resulted of customer’s being satisfied with the

product on offer. Still in the 1960’s, Cardozo’s (1965) used a laboratory experimental study to

posit that customer satisfaction with a particular product was determined by their tireless effort to

obtain the product in question as well as the expectation of the customers about the product. In

the 1970s, Anderson (1973) as well Olshavask and Miller (1972) investigate customer

satisfaction based on the expectation and perceived product performance. In terms of definition

of the concept, customer satisfaction has been traditionally defined as “an evaluative judgment

prior to making a choice, about any particular purchase decision” (Oliver, 1980).

Pairot (2008) also defined Customer‘s satisfaction as the company's ability to fulfill the business,

emotional, and psychological needs of its customers. In that same definition Pairot (2008)

acknowledged that customers usually have varied levels of satisfaction since they have different

attitudes and experiences as perceived from the company. According to Churchill and Surprenant

(1982), customer satisfaction can be defined as a “disconfirmation paradigm” since it is a result

of confirmation/disconfirmation of expectation that evaluates a product’s performance with it

expectation and desire. Customer satisfaction is therefore an attitude or a rating made by the
customer by comparing their pre-purchase expectation to their subjective perceptions of actual

performance (Oliver, 1980). ‘‘Satisfaction is a person’s feeling of pleasure or disappointment

resulting from comparing a product’s performance (outcome) in relation to his or her

expectation’’ (Kotler & Keller, 2006 p. 144). Bank customer satisfaction is regarded as banks

fully meeting the customers’ expectation (Bloemer, Ruyter, and Peeters, 1998) and also said to

be a feeling or attitude formed by bank customers after service, which expressly connects the

various purchasing behaviour (Jamal and Naser, 2002).

Customer satisfaction is seen to be a state of mind that customers have about a company when

their expectations have been met or exceeded over the lifetime of the product or service (Kevin

Cacioppo, 1995 and Kumbhar, 2010). In this regard therefore satisfaction is built over a period of

time within the product life cycle. Satisfaction therefore appears to be between pre-exposure and

post-exposure of attitudinal components (Oliver, 1980) and serves as a link between the various

stages of consumer buying behavior (Jamal and Nasser, 2002). The conceptualisation of

customer satisfaction according to Boulding et al. (1993) is transaction specific whiles in contrast

Anderson, Fornell and Lehmann, (1994) conceptualize customer satisfaction as a cumulative

consumption experience. Contrasting the two views transaction specific 15 conceptualization

sees customer satisfaction as an evaluative judgement following a specific buying process (Hunt

1977; Oliver 1977, 1980, 1993) and cumulative customer satisfaction, emphasis more on the

total evaluation based on total consumption over time (Johnson and Fornell, 1991; Fornell,

1992).

Taking a different dimension or view from the above, Lenka, Suar et al. (2009, p. 50) identified

‘customers’ satisfaction as a combination of their cognitive and affective response to service

encounters’. In the writings of Johnson and Gustafsson (2000, p. 63), the two authors indicated
that service ‘attributes provide customers with benefits and the benefits derive overall

satisfaction’. From the above therefore it implies the higher the benefits derived from a product

by customers, the higher the satisfaction level. From the above it can be seen that the accurate

definition and measure of customers satisfaction that fit every situation is very difficult and in

the words of Oliver (1997), “everyone knows what (satisfaction) is until asked to give a

definition. Then it seems, nobody knows”.

There are numerous meanings of customer satisfaction which can be found in significant literary

works. In the competitive telecommunication industry, customer satisfaction is considered as the

way to progress (Siddiqi, 2011). In any case, customer satisfaction isn't static in nature.

Organizations can't have a sense of security with their by and by "had all the earmarks of being

fulfilled customers". Or maybe organizations need to realize how to keep their customers reliably

fulfilled in correspondence of the fact that fulfilled customers may search for better services

somewhere else. Once more, a few customers may not switch as a result of the inaccessibility of

better support of other specialist co-ops however they are not those of the fulfilled customers

(Thakur, 2011; Agnihotri, Dingus, Hu, & Krush, 2016).

Customer satisfaction is the level of continued purchasing of an item. Customer satisfaction

makes an incentive for possible customers, in small dealing with their desires and to satisfy their

requirements (Dominici, and Guzzo, 2010). Satisfaction of customers is characterized as meeting

the individual model or fulfilling one's desires or we can infer that a fulfilled customer has a

specific inclination or disposition towards a help or item it has utilized (Maiyaki, and Mokhtar

2011). They further clarified Customer fulfillment is one of the significant objectives of

advertising movement/advertisers whereby it fills in as a connection between what customer

purchase and how they carry on. Clearly on the off chance that somebody is happy with specific
contribution or item they will get themselves include in continued purchasing. Satisfaction of

customers is infered with the customers that how these individuals perceive the worth (Ali et al.,

2016). Customer satisfaction lay productive effects on financial output of associations. At the

point when the administration gave by Telecom Company fulfills the customer they will in

general increment their use and level of procurement.

Customer satisfaction go about as a go between administration quality and customers repurchase

expectations. So as to acquire long haul connections and long haul benefits it is fundamental for

association to constantly fulfill the customers with the goal that they stay to a similar association

and stick to it in since quite a while ago run and proceed with repurchase. Customer repurchase

subject to the nature of administration or items being presented to the consumer (Ahmed et al.,

2010; Farooq, Salam, Fayolle, Jaafar, and Ayupp, 2018). Fulfillment is a significant determinant

which impact different factors and Company's financial advancement. Fulfillment comes after

use of some item or administration which is fundamentally the result of real and anticipated

elements of item (Khokhar et al., 2011). It is exceptionally basic for any association to

distinguish and fulfill necessities of customer that would help them in maintenance of customers.

Significant objective of the marketing procedure is customer satisfaction. As rivalry is expanding

step by step, an ever increasing number of organizations take a stab at high caliber in their items

and administration; so as to in the end prevail with regards to fulfilling their customers.

Achievement of any association relies upon the way that they comprehend the requirements of

customer and fulfill them in great way. Since each customer have distinctive need, diverse

purchasing behaviors, various practices, distinctive fulfillment levels, various mentalities and

sentiments, along these lines it isn't essential that each consumer get equal degree of fulfillment

from specific items or services being offered (Wikhamn, 2019). For this reason it is compulsory
to have clear thought regarding what customer need and what will give him most extreme

fulfillment (Maiyaki, and Mokhtar 2011). More the satisfaction of buyer more will be the

dedication of consumer towards relation and ultimately larger will be the success of business.

There is a strong relation among marketing strategy and the executive’s office (Ahmed et al.,

2010).

Customer satisfaction is the heart of marketing. The ability of an organization to satisfy

customers is vital for a number of reasons. For example, it has been shown that dissatisfied

customers tend to complain to the company and in some cases seek redress from them more

often to relieve cognitive dissonance and bad consumption experiences (Oliver, 1987; Nyer,

1999). If service providers fail to properly address such behavior, it can have serious adverse

effect. In extreme cases of dissatisfaction, customers may resort to negative word-of-mouth as a

means of getting back to the company. Reichheld (1996) posits that unsatisfied customers may

choose not to defect, because they do not expect to receive better service elsewhere or if the

switching cost is high. Additionally, satisfied customers may seek for competitors because they

believe they might receive better service elsewhere.

Customer satisfaction considers as an introduction of important behavioral results to customers,

which are: Customer loyalty, and customer commitment (Donio, Massari, & Passinate, 2006),

repurchase intentions (Elgaraihy, 2013), and positive transfused speech (Cronin, Brady, & Hult,

2000; Brady & Robertson, 2001). Based on what indicated by Bagozzi’s, 1992, the customers'

perceptions lead to their satisfaction. Customer satisfaction leads to promote behavioral

intentions of customers in order to maintain these levels of satisfaction they have. Hunt (1977)

described customer satisfaction as a process of feelings' evaluation. Based on what indicated by

Sweeney, Soutar, & Johnson (2001), Petrick (2002) defined emotional reaction as “descriptive
judgment relating to pleasure that a product or service gives to the buyer”. This means that

customer satisfaction can be measured by determining to what extent the consumer believes that

the generated positive feelings have resulted from the consumption of a product or service (Rust

& Oliver, 1994). In other words, customer satisfaction is considered as a construction, consisting

of the customers’ evaluative and emotional response toward an organization (Oliver, 1997).

Customer satisfaction can be observed as an estimation where expectations and actual experience

is compared (Tor & Andreasson.W, 2001). Consumer satisfaction refers to an individual’s

personally derived favorable estimation of any outcome or/and experience associated with

consuming a product (Westbrook.R.A, 1980).By meaning satisfaction is a purchase outcome,

whereby consumers evaluate rewards and costs with anticipated consequences (Bolton.RN &

Drew.JH, 17 march, 1991) (GA & C, 1982) (LaTour & Peat, 1979). The customer’s evaluation

of a product or service is also explained in terms of whether the product or service has met

customer’s needs or expectations (Loov & Ziethmal., 2003). Customer satisfaction is a

individual feeling of either pleasure or disappointment resulting from the assessment of services

provided by an organization to an individual in relative to expectations (Oliver R. , 1980) (B.

Leisen, 2001). The customer satisfaction is an evaluation of a products or services by custpmers

with regards to their needs and expectations. So from above mentioned definitions we conclude

that customer satisfaction is overall measurement of performance of product/service v/s

expectation of an individual about product/service (Oliver R. , 1980). The completion of pleasure

and expectation is called Satisfaction (Ziari, 2000).Customer satisfaction has overall response of

expectation of use of product or service on the base of perception, evaluation and psychological

reaction (Churchil & Supernat, 1982).

2.4. Determinants of Customer Satisfaction

Inferable from the vital job of customer satisfaction, it is commonly acknowledged that its

determinants must be broke down and be analyzed across firms, enterprises, areas and countries.

For this reason, various models have been created for estimating different drivers (determinants)

of customer satisfaction. Customer satisfaction determinants are factors which influence whether

customer satisfaction is met or not. In media transmission setting, wellsprings of customer

satisfaction can fall into various classes, for example,

2.4.1. Service Quality

A definition provided by Kotler et al. (1996) is that “A service is an activity or benefit that one

party can offer to another that is essentially intangible and does not result in the ownership of

anything. Its production may or may not be tied to a physical product”. Service quality and

satisfaction as: “perceived service quality is a global judgment, or attitude, relating to the

superiority of the service, whereas satisfaction is related to a specific transaction” (Kotler, 1996)

(Parasuraman, Zeithaml, & Berry, 1988) . Customer satisfaction is an approach like a judgment

following a purchase act or based on series of consumer-product interactions (Yi, 1989).

“Meeting or exceeding customer expectations, or as the difference between customer perceptions

and customer expectations of services is called service quality” (P.Hernor, 2000). Service quality

in theshape of attitude shows long runs overall evaluation (Taylor, 1994). Service quality is an

elusive concept that is difficult to define and measure. From study of past researches we are able

to define quality as conformance to conditions, implying that the features set of a product should

match the standards determined by the management (REEVES, 1994). Without any hesitation,

service quality is very vital component in any business related activity. This is specially so, to
marketer a customer’s evaluation of service quality and the resulting level of satisfaction are

perceived to affect bottom line measures of business success (lacobucci et al., 1994). The

satisfaction school holds the opposite view that assessments of service quality lead to an overall

attitude towards the service they call satisfaction and customer retention – customer’s perception

of Service and Quality of product will determine the success of the product or service in the

market. (Deepti & Yadav, June 2012). Quality is seen as “a satisfaction in maintaining the

originality of the products” and improvements in quality have a helpful impact on satisfaction,

while reductions in quality of the same magnitude have a significantly greater chance of falling

satisfaction by (Gomez, 2004). It is a series of actions designed to improve the level of customer

satisfaction - that is, the feeling that a product or service has met the customer belief (Turban,

2002). The key point is that improving the presentation of service attributes will generate

satisfaction (Mousavi, 2001). The present customer satisfaction concepts rely on customer’s

perception of quality (Storbacka, 1994). Service quality affects customer satisfaction by

providing performance For example if we take an example of Mac Donald restaurants, then the

consumers will get food service here, high quality everywhere the same they like to be in Mac

Donald‟s restaurants. It happens because of the high quality services. (Kandampully. J, 2001).

2.4.2. Service Recovery

It is a response to poor service quality (Gro¨nroos, 1988). Customer satisfaction can be viewed as

an evaluation where expectations and actual experience is compared (Andreassen W Tor, 2001).

It has been found that a unhappy customer may relate his or her bad experience with the service

provider to 10 to 20 other people (Zemke, 1999). It has been acknowledged that once a service

failure occurs, it becomes vital that service recovery, defined as the action taken by the service

provider to seek out frustration (Johnston, 1995). It has also been recommended that effective
service recovery had led to higher satisfaction in contrast to service that had been properly

performed on the first time (Etzel, 1981). A service disappointment is when the service delivery

does not handle to meet customer expectations. Often service recovery begins with a customer

objection. The aim with service delivery is to shift customers from a state of dissatisfaction to a

state of satisfaction. An effective service recovery could result in a win and win condition for the

customer and the association (Ngai, 2007). Some researchers argue that a firm’s recovery

attempt can either reinforce customer relationships or compound the failure (Hoffman, Kelley, &

Rotalsky, 1995). The results could include specific recovery method used such as cash

repayment, admission of guilt, replacement, and so on. The results must be perceived to be fair

or just by the customers in order for them to be satisfied with the service recovery. There are

many benefits of rewarding customer complaints. Among them one of the main benefits is

satisfied customer. When every customer’s complaints are solved, the first thing is that it will

help to satisfy the customer (Kurtus, 2007).

2.4.3. Perception/expectation Service Recovery

Customer expectations are beliefs about a service that serve as standards against which service

performance is judged (Zrithaml et al., 1993); which customer thinks a service provider should

offer, rather than on what might be on offer (Parasuram et al., 1988). The concept of customer

perception is built up by customer experiences, how they perceive the service they are offered

and ultimately by whether they actually are satisfied with their experiences or not. One way of

competing more successfully for small businesses today is by offering true customer service and

service quality (Wilson, 2008). Customer satisfaction is equals to perception of performance

separated by belief of performance. Customer satisfaction is a collective outcome of perception,

evaluation, and psychological response to the utilization prospect with a product or services (Yi,
1990). Customer satisfaction is the consequence of the connection between a customer

“supposition and a customer’s feelings. By way of defining, customer satisfaction is identified as

the difference between understood quality of service and the customer’s involvement or feelings

after having perceived the service (Bateson, 2000). “Satisfaction is taken as a whole customer

attitude towards a service donor, or an emotional reaction to the difference between what

customers predict and what they receive, regarding the fulfillment of some needs, goals or

desire” (Hansemark, 2004).Service quality is like beauty in the eyes of the beholder and hence a

matter of perception (Rhoades & Waguespack, 2004). Swans and Combs (1976) were first

between them they argue that customer satisfaction is related with performance that fulfills the

expectations, while frustration occurs when performance falls below the expectations.

2.4.4. Promotion

Customers want to see for what they are looking for and what they have in advertisements

(Athanassopoulos, March, 2000). Myers (1998) says that promotion is for reducing the emotion

of guilt which is associated with the consumption of different products or service which outcome

to customer satisfaction. Another general factor which is helpful to derives customer satisfaction

is website (advertising). Website is the advanced way use for the promotion, to awake the

consumer and to satisfy them with offering vast array of features and functions (Schefter, 2000).

Furthermore, by producing moral and motivating values, CSR actions can strengthen loyalty and

customer satisfaction (Green, 2006). Kim studied the role of promotion and product attributes on

customer perception. They outlined that performed promotions about definite product would

affect both customer view connected to product and his/her image about product attributes and it

also generates more customer satisfaction about product (Kim, 2002).

2.4.5. Price

Price is the amount of money one must pay to acquire the right to use the product. Pricing that

relates to the quality delivered (Ree & Hermen, 2009). There are millions of products in this

world having different prices. Pricing a product is complex thing to do. Prices are set according

to the value of the product (Khan.S, Majid, & Fahad, june 2012). Recent studies consistently

report that price is among the most important criteria in organizational purchasing. Difficult

economic conditions increase price's importance as well as growing production outsourcing to

low-cost countries rising competitive intensity (Christian, Jan, & Martin, 2013).The price of the

items on the menu can also significantly influence customers because price has the capability of

attracting or repelling them (Conway, 2006), especially since price functions as an indicator of

quality (Lewis and Shoemaker,1997).Price importance is defined as the price's relative influence

as a decision making factor in the buying decision process and captures the customer's focus on

paying a short purchasing price (Kujala & Johnson, 1993).While industrial buyers consider a

variety of aspects in their buying decision the price importance special effects via external and

internal price search to price best.. Price offering for the café needs to be in accord with what the

market expects to pay by avoiding negative difference (i.e.when actual price is higher than the

predictable price). We propose the less the agreement of the actual price with opportunity

(negative deviation), the lower the level of customer approval. Price consciousness refers to a

variety of price-related cognitions (Christian; Jan; Martin, 2013) .Price refers to the change of

consumer demand resulting from the rise or fall of price. A firm that caters to customers with

low price sensitivity gains greater competitive advantage in products and services, thereby

increasing company profitability (Wen.S, Jeng.D, & Soo.M, 2013) .Lichtenstein and Ridgway

(1993) define price consciousness as “the degree to which the consumer focuses exclusively on
paying low prices”. This definition implies a concern for price as a key criterion in decision-

making and internal limits on willingness to pay (Pervaiz & Sudha, 2010). Trappey & Lai (1997)

stated that offering lower prices is an important reason for consumers to shop and increase their

satisfaction level (Azhar, Salehuddin, Faeez, & Syaquif, 2010). The term “satisfaction” refers to

the quality of products and services, ongoing business relationships, priceperformance ratios

with respect to products and services, and meeting and exceeding the customer’s

expectations(Eckert & Grant, 2007).The future of services will depend on the ability of providers

to produce services that satisfy the needs of all customers at prices they can afford (Halsel,

1993).Retailers create value for customers by offering the right merchandise, creating a pleasant

atmosphere, decreasing shopping risks, increasing shopping convenience and reducing price by

controlling costs (Kent, 2003). The term “satisfaction” refers to the quality of products and

services, ongoing business relationships, price-performance ratios with respect to products and

services, and meeting and exceeding the customer’s expectations (Grant, 2007). Skindaras

(2009) there are millions of products in this world having different prices. Pricing a product is

difficult thing to do. Prices are set according to the value of the product. Price from marketing

mix Han (2009) state that one of the most expandable element that changed rapidly. In the

literature of Khan (2011) marketing the most important reason indicated for customer

satisfaction is price, because most of the customers estimation the value of the product or

obtained service through price.

Customer satisfaction is dependent variable while price is independent variable in which Price

has significant positive relationship on customer satisfaction (Shahzad.K, Syed.M.H, & Fahad.Y,

june ,2012).Research on the subject of price understanding aims to discover which marketing

tools, or which variables, would affect price sensitivity, allowing for the set up ment of different
market segments. However, the internal thought processes of consumers are difficult and

difficult to understand; customer satisfaction is one of these reflection processes.

2.4.6. Behavior/Relationship

Berry (1986) thinks that "Relationship marketing is the desirability, maintaining and enhancing

customer relationships. Behavior standards (such as repetitive purchase) have been criticized,

due to the lack of a conceptual basis of a active process (Caruana, 2002).Schiff and Kanuk

(1996)"Consumer behavior refers to the behavior that consumers display in searching for,

purchasing, using, evaluating, and disposing of products and services that they suppose will

satisfy their needs’’. This view is reproduced by Cant, Brink and Brijball (2002:2). Cant et al

(2002) also line Sheth, Mittal and Newmann (1999) who define consumer behaviors:- " The

mental and physical actions undertaken by household and business customers that result in

decisions and actions to pay for procure and use products and services."The finding that can be

drawn from these definitions is that they include certain common basics. These elements concern

how people make decisions to expend their resources that aretime, money and effort on items of

using up to satisfy their needs. It involves what they buy, why they buy, when they buy, how

they obtain, how often they buy and use them and how they order of these items after

consumption..Lim (2010) Customer’s eventual satisfaction may have significant affect of

atmosphere. Physical background is helpful to create figure in the mind of customer and to

pressure their behavior. Consumer behavioral intentions are also influenced by the standards of

service excellence (Bitner, 1990; Cronin and Taylor, 1992, 1994; Choi et al., 2004). Customer

satisfaction is vital to the success of any business. In a recent article it is proven that the costs of

retaining current customers are much lower than the costs of acquiring new ones. In order to

reveal the mystery of how to keep customers satisfied we must also be knowledgeable about the
drivers of our employees’ behavior (West & Jan, 2006). Gronroos (1994) defined it:

“Relationship marketing is to identify and establish, maintain and enhance relationships with

customers and other stakeholders, at a profit, so that the objectives of all parties are met; and that

this is done by mutual exchange and fulfillment of promises". Customer satisfaction is the key

factor shaping how successful the organization will be in customer relationship (Mostaghal &

Rana, 2006).

As per Radojevic, Stanisic and Stanic (2015, 14) and Radojevic, Stanisic, Stanic, and Davidson,

(2018) contended that quality and incentive for cash are the most critical variables influencing

customer satisfaction while Chaves, Gomes and Pedron (2012) expressed that with respect to

media transmission, staff and area ought to be considered as main considerations while deciding

customer satisfaction. Then again, it must be clarified that wellsprings of customer satisfaction

and disappointment are not really associated. The Motivation-Hygiene hypothesis by Herzberg

affirms that the nonattendance of fulfillment sources from inspiration factors doesn't prompt

disappointment however makes a positive encounter when given. Herzberg's discoveries

uncovered that factors for disappointment, for example cleanliness factor, are huge however it

doesn't assist with making fulfillment. (Herzberg 1964, 3–7.) The discoveries are essential to

look into pertinent to media transmission division fulfillment since they help representatives to

comprehend that forestalling disappointment doesn't meet up with making fulfillment. Telecom

administration industry is reliant on customer satisfaction. First stage is to draw in customer and

the last accomplishment/point/objective is to have a faithful customer; however trust is the

component required among fulfillment and dedication. The significant objective of

administration industry is the fulfillment of its customers on the grounds that the fulfillment is

engaged with returning back of customers (Khokhar et al., 2011). Clearly in the event that there
is trust, at that point one is inclined to buy something implying that one is hesitant to purchase

items or take favorable circumstances of services if customer is completely fulfilled or trust

relationship is there among association and customers itself. It is significant for telecom division

to look priceless wars so as to keep their customers fulfilled and faithful (Magnini, Crotts, and

Zehrer, 2011).

2.5. Conceptualization of Core competencies

Leonard-Barton (2000) defined core competency as one which differentiates a firm from its

milieu. According to Sanchez and Heene (1997), core competencies are usually the result of

“collective learning” processes and are manifested in business activities and processes. The core

competencies are those unique capabilities, which usually span over multiple products or

markets (Hafeez et al., 2002). Javidan (1998) points out, that core competency is a collection of

competencies that are widespread in the corporation. It results from the interaction between

different SBUs’ competencies. Core competencies are skills and areas of knowledge that are

shared across business units and result from the integration and harmonization of SBU

competencies. One useful finding of Hafeez et al.,(2002) analysis is that although Company A

regards its core business as manufacturing engineering, the core competencies reside in the sales

and marketing area. Prahalad and Hamel (1990) contend that “core competencies are the

collective learning in the organizations, especially how to coordinate diverse production skills

and integrate multiple streams of technologies.” They argue that core competence is

communication, involvement, and a deep commitment to working across organizational

boundaries (Gupta et al., 2009). Ljungquist (2008) point out, that Core competence was

originally invented as a tool for justifying business diversification at large companies, and for

supporting internal processes such as product development (Prahalad and Hamel, 1990).
Scholars have acknowledged the importance of the concept by advancing it in multiple

directions: by connecting it to conceptual notions of learning (Lei et al., 1996), by suggesting

core competence models to sustain competitive advantage (Petts, 1997; Hafeez et al., 2002), by

building on the concept’s basic notions to invent similar concepts (Sanchez & Heene, 1997;

Eden & Ackermann, 2000; Sanchez, 2004), and by developing processes for its identification

( Javidan, 1998; Eden & Ackermann, 2000). The importance of the concept is also

acknowledged when testing the implementation of core competence as strategy (Clark, 2000;

Clark & Scott, 2000). It is argued that in addition to identifying competences, the critical task is

to assess them relative to those of competitors. Although a firm may identify a host of

competences that it performs better relative to its competitors, not all competences are “core”.

Core competences are those competences which allow firms a superior advantage, and according

to Hamel and Prahalad (1994; 1990) to be considered “core” the competence must meet three

criteria:

 Customer Value: A core competence must make a significant contribution to Customer

perceived value.

 Competitor Differentiation: Any competence across an industry cannot be defined as core

unless the firm’s level of competence is superior to all its competitors and should be

difficult for to imitate.

 Extendibility: The competence must be capable of being applied to new product arenas.

Most of authors have focused on three dimensions of core competence, they are: Shared vision,

Cooperation and Empowerment (Sanchez, 2004; Hafeez et al., 2002; Javidan, 1998; King &

Zeithaml, 2001; Hafeez & Essmail, 2007). Therefore, the study focuses on these three key
dimensions of core competence. Shared vision is defined as a firm’s interest in sharing the

organization’s view of goals, objectives, policies, priorities, and expectations (Santos-Vijande et

al., 2005). It is essential to guarantee learning to occur in the same direction and to motivate that

it really takes places. Firms with greater shared vision likely enhance to business excellence and

success. Then, firms seem to utilize the shared vision to build innovative products and services

and fulfill customer and market requirements (Ussahawanitchakit, 2008). Cooperation is also a

key factor that plays a role in the development of core competence. Cooperation is a joint

behavior toward a particular goal of common interest that involves interpersonal relationships

(Croteau et al., 2001). Cooperation as a Core competence knows when and how to attract,

reword, and utilize teams to optimize results. Acts to build trust, inspire enthusiasm, encourage

others, and help resolve conflicts and develop consensus in creating high performance (Berger et

al., 2004). Empowerment is a process or psychological state manifested in four cognitions:

meaning, competence, self- determination, and impact. Specifically, meaning concerns a sense of

feeling that one’s work is personally important (Zhang & Partol, 2010). Empowering tends to

enhance the meaningfulness of work by helping an employee understand the importance of his or

her contribution to overall organizational effectiveness.

2.6. Competitive Advantage

Network refers to the interconnection between two users (Kumar et al., 2012). There are various

studies that have investigated the effect of network quality on service quality amongst

telecommunication companies in various parts of the world. The relationship between network

quality and sustainable competitive advantage is intertwined with the customer satisfaction

attribute. According to Rahhal (2015) the network quality influences customer satisfaction levels

and this enhances the acquisition of a competitive edge by the company or organization. Rahhal
(2015) investigated the effects of service quality dimensions on customer satisfaction using

Syrian Mobile telecommunication services a case of the study. Rahhal (2015) found that the

reliability of network, additional or value on services, network quality and responsiveness to

customer needs was key to enhancing the levels of customer satisfaction in Syria. The study

found that the acquisition of a competitive edge is influenced by the levels of network quality,

reliability of the network and efficiency. These factors influenced customer satisfaction and

consequently competitive advantage. Todeva and John (2001) in the article Shaping the

Competition and Building Competitive Advantage in the Global Telecommunication industry:

noted that the primary role of telecommunication industries is to enhance communication and

information transmission in the information sector. These deals with four major areas: hardware,

network management systems, service contents and communication networks. The level of

quality of these areas ensures that there is network quality and the level of service is very high.

Competitive advantage is a complex subject, covering various issues, with a focus on

competitive tools such as quality, speed, innovation, leadership, and various other factors that are

important in the industrial and service sectors. The development of competitive strategy is vital

to the survival and prosperity of any organizations, to play a significant role in their industry.

Before the corporate can build a sustainable competitive advantage, it has to work on the

formulation of a competitive strategy. The competitive strategy is defined as taking the offensive

or defensive actions to create a defensive position in the industry or to deal successfully with

competitive forces, and thus generate a higher return on investment for the corporate (Kotler &

Keller, 2006). Competitive advantage can be constructed through seeking to achieve competitive

strategies such as corporate social responsibility, and customers' strategies such as customer

relationship management, and provide excellent service, high quality, cost leadership, and
differentiation. Marketing literature has presented rare attempts to the relationship between CSR

and competitiveness, although that relationship has dramatically developed in the past few years.

Most studies have focused on the relationship between competitive ability and (CSR) in an

attempt to prove that there is a positive relationship between CSR and financial performance

(McWilliams & Siegel, 2001). Due to the inconclusive results (Chand & Fraser, 2006), some of

the other authors have suggested alternative approaches, such as the generation of corporate

competitive advantage by creating value for the stakeholders (Freeman, 1984), and the

evaluation of (CSR) as a risk to the main competitive variables such as reputation and the mental

image (Schnietz & Epstein, 2005; Carlisle & Faulkner, 2005), or using case studies (Juholin,

2004; Gueterbok, 2004). The bottom line here is that it seems to be a relationship between CSR

and competitive ability; however, the nature of the relationship is unclear. Moreover, the

financial performance or the corporate value may not automatically mean competitive ability

over the long term (Porter & Kramer, 2006; McWilliams & Siegel, 2001).

(Metzler, 2006) states that “small firms do not have to change what they’re doing or try to be

more like large firms. They simply have to recognize all the good they have going for them and

reinforce it, both inside and outside the practice” (p. 62). According to (Zonooz et al., 2011),

researches with an emphasis on competitive advantage of SME’s have increased in the past

years. (Slevin & Covin, 1995) introduced a 12-factor measurement framework to assess the

“total competitiveness” of SME’s. The framework includes such elements like the firm’s

structure, culture, human resources, product/service development and others. Considering to this

model it can be assumed again that competitiveness is a multidimensional concept. Many

researchers relate competitiveness as a synonymous with a word “success” and that means an

achievement of firm’s objectives. In associating competitiveness with success (Storey, 1994;

Peterson, 1989) found that SME success could be attributed to the managerial skills of the

entrepreneur or ownermanager. As previously alluded, it is a key role for SME’s to enhance their

competitive levels in order to survive in more demanding and changing markets (Ploss, 1991).

The review of features that stem from different business context of SME’s serves as a help to

realize internal and external elements that provide unique initiatives for this particular field.

SME’s are usually more flexible and controllable, and able to react faster and to take advantage

of niche markets (Corbit & Nabeel, 2004), especially due to the fact that small businesses are

closer to the market (Grigore & Grigore, 2011). (Grant et al., 2010) expressed the positive

attitude to small ventures sector by noting that entrepreneurial attributes such as creativity,

flexibility and dynamism are associated with SME’s sector. (Burgess, 2002) also stated that

small businesses’ (especially innovative ones) advantage is that they are flexible. (Grigore &

Grigore, 2011) highlighted the features of small entities such as having a great capacity to adjust,

a high degree of competition and great resistance during crisis periods. (Metzler, 2006)

summarized that “advantage stems from the flexibility, collegial atmosphere, opportunities to be

hands on and its grass roots ingenuity” (p. 62).

A close personal relationship in SME’s was singled out by (Hillebrand, 2009). The scholar has

noted that due to the flat organizational structures of small enterprises relationship is often

comparatively close and marked by a high degree of mutual trust and loyalty. So, this proximity

between management and employees, and also among the firm and its suppliers, customers and

even competitors, enables further to gain the augmentation of personal contacts, which ideally

result in greater trust between firm and stakeholders. (Julien, 1993) stated that small ventures are

able to preserve labor relationships and to bring a personal touch to operations, to serve niche

markets, and they have small capital requirements. (Zonooz et al., 2011) developed a model
describing the competitive advantage of SME’s via knowledge perspective. The scholars

distinguished three main groups that impact the competitiveness of SME’s. These groups are

internal firm factors, external environment and the influence of entrepreneur. An absorptive

capacity and a combinative capability are in the center stage in the suggested construct. The

outer element highlights the ability of firm’s members to perceive the information. While the

former one is closely linked with accumulated information of organization’ members and their

ability of technical knowledge, the next is related to traditionally accepted socializing style and

organizational mutual comprehension of targets. The described example influenced the authors

to visualize their perception regarding information shift and rivalry (Figure 1).

Figure 1. The relationship between information shift and rivalry

Moreover (Reeves & Hoy, 1993) highlighted that “the active involvement of the owner and

employees in small firms allows them to tailor the firms’ offerings to the specific needs of their

customers without going through the bureaucratic layers typical in large companies” (p. 53). For

instance (O’Donnell et al., 2002) concluded that owner/managers deliver customer value via
personal contacts. In fact, SME’s closeness to customers is often constituted as their unique

competitive advantage (Zontanos and Anderson, 2004). Winch and McDonald (1999) accented

that shorter internal lines of communication, speedy responsiveness and effective problem-

solving stem from less formalized communication systems within the micro environment. These

features lead to incorporation of customer focus strategy in SME’s and according to Reijonen

and Laukkanen (2010), it is a central element of prediction for SME’s. This approach gives an

opportunity for small entities to satisfy clients’ needs in a profitable manner (Narveret al., 2004).

If a firm possesses resources and capabilities which are superior to those of competitors, then as

long as the firm adopts a strategy that utilizes these resources and capabilities effectively, it

should be possible for it to establish a Competitive advantage. The sustainability of competitive

advantage depends on three major characteristics of resources and capabilities: Durability; which

is the period over which a competitive advantage is sustained, Transferability; the harder a

resource is to transfer the higher sustainable the competitive advantage, and finally Replicability;

means cannot be replicated or purchased from a market (Sadler, 2003).

A competitive advantage is meaningful if it is related to an attribute valued by the market.

Customers need to perceive a consistent difference in important attributes between the

producer’s products or services and those of its competitors. These differences must relate to

some product/delivery attributes which are among the key buying criteria for the market.’

Product/delivery attributes are those variables that impact the customers’ perceptions of the

product or service, its usefulness and its availability. Some examples of such attributes are

product quality, price and after-sale service. Key buying criteria are those variables and criteria

that customers use in making their purchase decisions. They are different for different industries

and different market segments (Javidan, 1998). Gupta et al. (2009) point out, that resources alone
are frequently not enough to generate competitiveness over other firms. In creating a competitive

advantage, a firm needs the ability to make good use of resources – defined as the capability to

handle a given matter – and, as the ability grows over time, to utilize the available resources to

create new resources, such as skills (through new technology or software application), or to open

new doors to the development of new types of product. “A firm is said to have a competitive

advantage when it is implementing a value creating strategy not simultaneously being

implemented by any current or potential player” (Clulow et al., 2003). To gain competitive

advantage a business strategy of a firm manipulates the various resources over which it has direct

control and these resources have the ability to generate competitive advantage (Rijamampianina,

2003). Superior performance outcomes and superiority in production resources reflects

competitive advantage (Lau, 2002). Most of authors have focused on two dimensions of

Competitive advantage: Flexibility and Responsiveness (Evans, 1993; Krajewski & Ritzman,

1996; Macmillan & Tampo, 2000). Therefore, our study focuses on these two key dimensions of

competitive advantage. Flexibility defined as the firm's intent and capabilities to generate firm-

specific real options for the configuration and reconfiguration of appreciably superior customer

value propositions (Johnson et al., 2003). Responsiveness refers to the firm’s ability to respond

quickly to customer needs and wants (Carlos et al., 2010).

2.7. Financial Performance

Financial performance is a proportion of how well a firm can utilize resources from its essential

method of business and produce incomes. It is the way toward estimating the consequences of a

company's strategies and tasks in money related terms (Muriithi, Waweru, and Muturi, 2016). It

distinguishes the money related qualities and shortcomings of a firm by setting up connections

between the things of the monetary position and salary proclamation. The term is additionally
utilized as a general proportion of an association's general monetary wellbeing over a given

timeframe, and can be utilized to analyze comparative firms over a similar industry or to think

about businesses or segments in collection. There are a wide range of approaches to quantify

firms' exhibition, however all measures ought to be taken in accumulation. Details, for example,

income from activities, working salary or income from tasks can be utilized, just as complete

unit deals (Njeru Warue, 2012). Lyria et al. (2017) contends that budgetary Performance can be

estimated by rate of return, serious position, piece of the overall industry development, by and

large productivity, deals volume development, and income and benefit improvement. Proportions

of firm execution would be a blend of both budgetary and nonfinancial measures. Money related

measures can be spoken to by benefit, income, rate of profitability (ROI), return on value (ROE)

and income per share (EPS) (Omwenga, and Omar, 2017).

They have the upside of being target, straightforward and straightforward. In any case, they have

the disadvantage of being not effectively accessible and being chronicled, subsequently offering

just slacked data. They can likewise be dependent upon controls, and inadequacy (Ngang et, al.

2017). Non-budgetary measures incorporate number of workers, income development, and

income per person, customers' fulfillment and representatives' fulfillment. The non-money

related measures have the hindrance of being abstract (Uzel, 2015). Attributable to the

constraints of the monetary and non-budgetary measures, it has become the by and large

satisfactory standard to utilize a cross breed approach joining both money related and non-money

related proportions of execution.

Financial performance was operationally defined as Return on Assets (ROA) by Venkatraman &

Ramanujam (1986). Financial performance is widely accepted as the best measure of a

business’s performance. Financial performance can be referred to as profitability and ratios such
as ROA, return on equity (ROE), return on investments (ROI) and profit margins are often used

to measure financial performance. In short, financial performance is the result of a firm or

organisation’s policies and operations in financial terms. Financial performance is vital to any

firm's success or survival. Although maximization of financial performance is not the goal for all

firms, financial performance is an important factor in reaching any firm's goals. In order to

maintain daily activities and to invest for the future, a firm requires sufficient financial assets. In

order to have sufficient financial assets, companies usually monitor their financial position.

Assessing financial performance is key to ensuring long-term financial survival (Pink, 2006).

The purpose of analyzing financial ratios is to identify financial strengths and potential problems

(Hua, Wang, Yang, & Zou, 2014). Bai, Hsu & Krishan (2014) argue that financial performance

increases availability of internal funding and raises the ability to raise external capital.

Performance is a continuous and flexible process that involves managers and those whom they

manage acting as partners within a framework that sets out how they can best work together to

achieve the required results (Armstrong, 2006). Performance is the end result of activities; it

includes the actual outcomes of the strategic management process. The practice of strategic

management is justified in terms of its ability to improve the organization’s performance

(Wheelen & Hunger, 2010). Although organizational performance encompasses many specific

areas of firm outcomes i.e. dimensions ( Richard et al., 2009; Thang et al., 2008; Morgan &

Strong, 2003; Nwokah, 2008), we focused only on two key dimensions to measure

organizational performance: Growth and Profitability.

 CHAPTER 3.

LITERATURE REVIEW FOR THE CONCEPTUAL MODEL

3.1. Customer Satisfaction and Sustainable Advantage of Competitive

The most important goal for all companies is to achieve business efficiency and effectiveness, in

order to meet customer needs. In the processes of globalization and internationalization the

emphasis is on satisfying customer needs, as a prerequisite for sustainable growth and

development. Companies that do not understand and meet the expectations and demands of

customers are in danger of losing purpose of their existence, and become irrelevant, or the

purpose for themselves. For customer satisfaction measurement the most important standard is

the 9001:2000 ISO Standard. ISO 9001:2000 specifies requirements for a quality management

system where an organization needs to demonstrate its ability to consistently provide product

that meets customer and applicable regulatory requirements, and aims to enhance customer

satisfaction through the system and the assurance of conformity to customer and applicable

regulatory requirements (Arnett and Badrinarayanan, 2005; Gotzamani, 2010).

Today, the creation of a sales policy that is primarily based on the aspirations and needs of the

customer rather than on sales and the achievement of short-terms benefits, is increasingly

becoming the key activity of a long-term and market oriented companies. They realized they

cannot reach long-term business ambitions only by sales and that they, most of all, have to help

their customers so that they could help them. The customer’s needs are constantly changing, and

companies need to adapt but keeping in mind that customers always want two things: increase

their performances (production, sales, profit, content) and/or decrease others (costs, fallout,

expenses, discontent, worries). The very important principle of quality management is customer

orientation stating that a supplier hat to ensure most adequate indicators of (Brdarević, 2002):

 Understating of the current and future customer needs for specific product and services,

 Manners of meeting customer demands (adaptation of one’s own processes to create the

desired quality of products and services), and

 Development goals to satisfy customer expectations.

Every company should know that their buyers are more value-conscious and informed than ever

before. Not being aware of the new possibilities, companies are convinced that they will gain

significant market share by developing new products. However, by doing so they ignore statistics

that say that 80% of all new products fail successful national market placement (Kovačić, 2011).

Most of them fail because they are based on pale ideas. Others may have good ideas that are

unique and attractive, but are useless nonetheless in the context of their business. For the sake of

achieving better short-term results, companies often make the mistake of offering something

new, without taking into consideration the buyers´ previous experiences with other new products.

For establishing good relationship with corporate customers, company need to have CRM
strategy developed. Customer-needs–driven CRM strategy is focused on improving customer

relationship and this approach involves two steps (Dowling, 2002):

 Information technology is used to uncover insights regarding customer needs, and

 Special programs are developed to meet the discovered needs (e.g., the development of

customer-specific processes and procedures)

If company wants to be able to use CRM strategy as differentiation tool during the competitive

advantage building, it must be sure that customer is aware of the value that will be obtained by

purchasing products or services, probably at higher price. The following text presents a unique

research on the territory of Bosnia and Herzegovina about how much companies in this country

pay attention to the customer relationship development issue, taking into account the differences

in the perception of the CRM strategy for international and domestic companies.

Customers do not accept objects and services; still they buy the advantages that the object and

assistance can suggest. They buy contributions that comprise of things, services, information and

multiple variables. The value gained from the acquisition of a contribution is dependent on how

the consumer uses the competitive edge made (Hennig-Thurau, and Hansen, 2013). Customer

satisfaction can be created all alone with no exertion, however for the most part it requires effort

and arrangement. Satisfaction of customer is an opposition and device, the competitive

advantage gained from customer satisfaction is hard to replicate for other confrontational

institutes, specially if the company gives more attention into their customer support than

considering their competition. On the other hand the company possess, excellent individual

science, sympathy, understanding and they can provide other different attractive moves towards

the customers, characteristics that are hard to impersonate for different companies. In fact, the
capability to feel sorry or behave properly to negative judgment can depict a feeling of refined

methodology to the consumers and that the customer is paid attention too (Al Shobaki, and Abu-

Naser, 2017). There are few organizations for which the current condition is that their core

ability must be polished into an assistance service to build up their intensity and that the

contribution contains all the worth making things that customers expect (Hennig-Thurau, and

Hansen, 2013).

At the time when the customer changes to a customary customer on the basis of useful

encounters of the organization's services the measure of visits normally ascends because of the

simplicity of the utilization of the services. The company possess the separate information of the

consumer and information how to meet the expectation of the customer all the more proficiently;

this thing reduces the obstacles with regard to the use of the services. The customer wouldn't

wish to put the effort of interchanging the specialist co-op and to undergo all the means to

accomplish a similar situation in the contending organization once more, this makes a

competitive advantage for the organization. The expenditure of the customer relationship

eradicates the more drawn out the relationship is an expansion of only 5% customer maintenance

brings about 25% to 100% advantage on each customer (Ylikoski 2001; Marín García, Medina

López, and Alfalla Luque, 2012).

There are numerous advantages that a company can have on the basis of customer contentment,

monetarily benefits as well as indirect benefits. At the time when a standard customer is using

the service, the duration spent in the process is a lot smaller than the duration spent with another

customer and the risk of mistakes reduces. This will persue the customer increasingly contented

and the relatioship between the customer and the work force progressively loose. At the time

when the company’s staff can act as upbeat customers, the environment in the whole company
increases the pace of satisfactory level of the authorities with this company. At the moment when

the representatives of the company are contempted, they will in general exhaust more effort in

providing service to the customers and making the customers fully satisfied, keeping a pattern of

fulfillment. The company requires to put forth the main attempt in accomplishing the cycle

(Ylikoski 2001, 183-184).

Enterprise competitive advantage ultimately comes from value created by customers (Poter,

1985). Proprietary resources and core competences searched within the enterprise probably does

not match with external resources (Wang. T. and Xu. L., 2002).Then, it is the probable thing that

enterprises strengthen the existing advantages without creating the value for customers more than

its competitors. Consequently, one of the foundation for enterprises to survive in the market is

fully thinking over the customer value. For this reason, Woodruff regards customer value as the

real source of enterprise competitive advantage. According to the opinion of Day and Wensley,

higher customer value and lower related cost root in skill advantages and resource advantages, in

turn, forming two aspects of competitive advantage: customer satisfaction and loyalty; market

share and profit (Fig. 1).Therefore, competitive advantage theory and core competence theory

are not mutually exclusive, but it is different that the two theories explain the final source of

competitive advantages. Customer value theory emphasizes to search the ability of promoting

value and beating competitors within enterprises. Measuring customer satisfaction and customer

loyalty can identify whether enterprise has competitive advantage or not.

 Figure 2: A Framework of Enterprise Competitive Advantage

3.2. Customer Satisfaction and Performance

The connections between customer satisfaction and financial performance have attracted some

ongoing consideration the scholarly writing. Srivastava et al. (1998) recommended that high

customer satisfaction prompts a speeding up of incomes, an expansion in the volume of incomes,

and a decrease in hazard related with those incomes. Gruca and Rego (2005) likewise found that

increments in customer satisfaction lead to increments in income and a decrease in chance

related with those incomes. Others have likewise discovered a positive connection between

customer satisfaction and generally speaking incomes (Otto, Szymanski, and Varadarajan, 2019;

Mateias, and Brettel, 2016). The expanded incomes can be credited to customers purchasing

extra items and services from a provider (Fornell et al., 2006; Seiders et al., 2005).

The expanded income could likewise be credited to a provider accepting an expanded portion of

wallet from fulfilled customers (Cooil et al., 2007; Mittal, Han, Lee, Im, and Sridhar, 2017).

Expanded income can be brought about by less value affectability among fulfilled customers

who are eager to pay more (Fornell, Morgeson, Hult, and VanAmburg, 2020). Also, expanded
income could emerge out of the procurement of extra customers. Benefit is likewise influenced

as more significant levels of maintenance and customer satisfaction lead to higher future incomes

(Chand, 2010; Yu et al., 2013; Grissemann, and Stokburger-Sauer, 2012) and decreased

expenses of activities (Sun, and Kim, 2013). The fulfillment benefit chain is another helpful

model to more readily comprehend the normal connection among fulfillment and budgetary

execution (Heskett et al., 1994; Anderson and Mittal, 2000). The model contends that trait

execution (for example administration quality) prompts more noteworthy customer satisfaction,

which prompts more elevated levels of customer maintenance, which thus prompts higher

benefits.

Anderson and Mittal (2000) further fight that while there are various investigations that have

found a solid, healthy relationship in this series, it should be discovered that the overall

relationship is unbalanced and non-straight. For instance, Lee et al. (2012) found that devotion

was far higher for "charmed" customers (those giving a top box rating) than for just "fulfilled"

customers (those giving a subsequent box rating). At the total level, there has all the earmarks of

being solid proof that customer satisfaction is decidedly connected to steadfastness, income, and

benefit. Sensibly, exceptionally fulfilled customers will be increasingly faithful and, henceforth,

remain long time customer and provide more money. Over this more drawn out customer future,

customers will build their consumptions every year as exceptionally fulfilled customers ought to

have a higher yearly income and productivity than less fulfilled customers (Anderson et al.,

2005). While this connection between consumer satisfaction and an assortment of positive

outcomes are very much recorded, there is evidently little research that has observationally allow

this relation at the organization level. Identified with income and overall gain, profit per share

(EPS) is a regularly utilized financial performance metric. EPS is just the absolute benefit
isolated by the weighted normal number of regular offers remarkable. In this manner, customer

satisfaction ought to likewise be emphatically connected with changes in EPS.

3.3. Management of Customer Satisfaction Incorporation as Competitive Advantage

There are also empirical researches, which describe management of customer satisfaction as

competitive advantage. (Singh et al., 2010) added that organizations strive to achieve

competitiveness through satisfying customers, a quick response, a cooperation and etc. Four

primary competitive advantage constructs, which include inventory management, customer

satisfaction, profitability, customer base identification, have been conceptualized and identified

in their research. (Rahimic & Ustovic, 2012) have examined managing customer satisfaction as a

fundamental determinant for creating and assuring competitive advantages and also displayed the

application of model of Customer-Oriented Sales. A customer satisfaction was referred as an

inseparable variable in sales process. (Rahimic & Ustovic, 2012) came to a conclusion that

international companies consider customer satisfaction as the most important aspect in the

process of differentiation much more than native. The relationship among management of

customer satisfaction, service performance and destination competitiveness in the tourism sector

was explored and based upon empirical investigation in the study by (Chena et al., 2011).

Tourists’ pre-visit perceptions, post-visit satisfaction toward destination attractions and

resources, willingness to recommend and revisit, and competitiveness with foreign destinations

were tested. The interrelation of the service, management customer satisfaction and

competitiveness was discussed by (Angelova & Zekiri, 2011). They noted that “service quality

and managing customer satisfaction are very important concepts that companies must understand

if they want to remain competitive and grow” (p.232). (Sheth, 2001) had a concern in the idea of

managing customer satisfaction as competitive advantage option. He provided a conceptual

model visualizing six key competitive advantages that stems from management of customer

satisfaction. These competitive advantages, according (Sheth, 2001), are repeat buying, higher

prices, word of mouth, new product innovation, loyalty in crises, one stop shopping. The authors

of the article present the transformed version of four competitive advantages.

Figure 3: Four competitive advantages through customer satisfaction

While (Sunder, 2009) offered a framework named “Customer satisfaction leading to long-term

sustainable competitive advantage”, which proved that management of customer satisfaction is a

background of sustainable competitive advantage. This model could be constituted as a

continuous approach of the aforementioned perception of (Sheth, 2001).

 Figure 4: Management of customer satisfaction leading to long term sustainable competitive

advantage

So, both these frameworks prove that paradigm shift of competitive advantage, especially in

SME’s could be applicable in real life cases. (Bressler, 2012) mentioned that “rarely can small

business owners effectively compete with larger business prices. Entrepreneurs should consider

other competitive approaches” (p. 2). These alternatives could be related, for instance, with the

incorporation of customer satisfaction. Regarding to that idea, (Li et al., 2008) stated that small

ventures leveraged their competitiveness from the speed with which they possessed the ability to

respond to customers’ wants and needs. Small businesses also overcome resource constraints

through generating competitive advantage via attaining customer satisfaction. The supportive

approach of this opinion derived from (Voss et al., 1998) studies. They summarized that SMEs’

competitive advantage is fulfilled through speed, responsiveness and closeness to customers.

While these features are closely related to the customer value perception of service quality
(Mentzer, 2004) posited that delivering customer value in dimensions important to customers

better than the competition delivers customer satisfaction and competitive advantage. (Singh,

2012) claimed that one of the bases of competitive organization provision which leads to

differentiating edge is serving customers better and this is also regarded as a newer method by

which a company can turn more profitable. There is a large portion of research, which suggests

that competitive advantage is a multidimensional concept including a great variety of elements.

There is no general consensus on this particular subject. This concept should not be considered

as a non-durable company’s characteristics. It should be implemented in every single activity due

to its wide network of interrelationships among the organization’s activity. And it is highly

recommended to apply it via customer satisfaction. So, distinguishing management of customer

satisfaction as a competitive advantage serves as a potential tool for SME’s to translate their

benefits in the understandable and suitable fashion in order to attain the differentiating edge.

3.4. Formulated Hypothesis

H0: There is a relationship between customer satisfaction and competitive advantage of

Zain telecom industry of Jordan

H1: there is a relationship between service quality and competitive advantage of Zain telecom

industry of Jordan

H2: there is a relationship between perception and competitive advantage of Zain telecom

industry of Jordan
H3: there is a relationship between service recovery and competitive advantage of Zain telecom

industry of Jordan

H4: there is a relationship between price and competitive advantage of Zain telecom industry of

Jordan

H5: there is a relationship between price and competitive advantage of Zain telecom industry of

Jordan

H6: there is a relationship between behavior and competitive advantage of Zain telecom industry

of Jordan

3.5. Conceptual Framework

Customer Satisfaction

 Service Quality
 Perception/expectation
Competitive Advantages
 Service Recovery
 Price
 Promotion
 Behavior

Figure 4: Conceptual framework

 CHAPTER 4.

METHOD

This chapter presents the research design, model specification and implementation, population,

sampling of data and sample set count, data gathering and examine methods that were adopted to

address the research questions discussed previously and test the hypothesis postulated.

4.1. Research Design

Research design speaks to the strategies to be adopted for data collection and the procedures to

be utilized in their investigation. Research design is the basic skeliton for the assortment,

estimation and examination of information and incorporates a diagram of what could possibly be

done composing the speculation and its working ramifications to the last investigation of

information. It infers how inquire about targets will be reached and how the issue experienced in

the exploration will be handled.

The investigation adopted both cross-sectional research structure and graphic study plan. Cross-

sectional examinations are intended to gather information once over a similar timeframe, the

information is broke down then detailed while engaging study configuration is intended to gather

information from an example with a perspective on dissecting them factually and summing up

the outcomes to a populace (Jiang et. Al, 2016). Using cross-sectional design, the analyst had the

option to get inquire about information over a similar timeframe. While expressive research

design was utilized to set up the circumstances and logical results connection between the reliant

variable (financial performance) and the autonomous factors. The procedure utilized in this

examination contrasted well and that of past observational investigations (Ngang, & Abbe, 2018;
Sasaka 2017). In every one of these investigations, the quantitative methodology by utilization of

reviews done by organization of inquiries was the essential system utilized. This study used

comparative way to deal with improve similarity of discoveries.

4.2. Target Population and Sample size

A population can be referred as total number of elements that need to be considered to perform

some testing and make some inference (Kungu, Omari, & Kipsang, 2015). Other scholars

(Kilungu, 2015), termed population as a huge set of possible subjects from which a small

subsample can be extracted. Kothari (2011) argues that a population is the collection of all the

instances in any any field of study, also known as universe. Sasaka, Ogawa, & Haseyama,

(2016), asserts that a population set is the collection of individuals to make a group on which a

survey is applied. It is considered as the combination of individual subjects on which the

researchers conclude the study and tests are run. Mugenda & Mugenda (2012) defined the

population set to which a researcher apply a study and generalize the results of study. The

study’s target population was zone telecommunication industry of Jordan. The respondents were

employees and managers of zone telecommunication industry of Jordan. The study focused

exclusively on the telecommunication industry where we checked the effect of performance and

competitive advantage on customer satisfaction.

4.3. Data Collection Methods

Data gathering techniques in this study incorporate on primary data.

4.3.1. Primary Data

The primary dataset was gathered through a questions list in the form of questionnaire. The

question form contained some closed-ended type questions and a custom made five-part Likert

scale, which was employed to get input data on the different variables from the head of

departments. Respondents were required to follow agreement with each question of the list. Each

item had a five-scale ranging from 1 = strong disagreement, 2 = disagreement, 3 = indifferent, 4

= agreement, and 5 = strong agreement.

A structured questionnaire can be considered as a list of questions to be answered by the

respondents. The questionnaire was created with the purpose of understanding the satisfaction

level of customers zone telecommunication of Jordan and analysis of the interaction between

independent and dependent variables which served the research objective. The questionnaires

had been preferred because it had standard questions and it is reliable. The questionnaire was

divided into four main sections. The first section included the demographic information of the

respondents, while the second part covered respondent’s characteristics including experience in

Zone telecommunication, proportion of investment in Zone telecommunication, and investment

knowledge. The remaining sections covered the independent variables factors. The level to

which each variable, among the five different levels, influences the financial performance was

measured using a intensity level of 5 for highest to 1 for lowest.

4.4. Data Collection Procedures

The information was gathered by utilization of a survey. The examination instrument was passed

on to the respondents through the random sampling method. A covering letter with every survey

clarified the destinations of the examination and guaranteed respondents' secrecy and asked them
to partake in the investigation. The respondents were mentioned on their readiness to take part in

the overview and give the information. The survey was utilized to acquire essential information

from the examined respondents. Phone costs was restrictive, which precluded the chance of

doing phone interviews. Postal studies were additionally precluded in light of the fact that postal

services in Jordan are problematic and would, in this manner, influence the reaction rates.

4.5. Reliability

Reliability is the measure that the information gave is steady what past research writing has said

or comparable research with an alternate gathering of members yields a comparable arrangement

of information (Pawlowsky-Glahn, & Buccianti, 2011; De Vaus, 2002). This implies on the off

chance that individuals addressed an inquiry a similar route on rehashed events, at that point the

instrument can be supposed to be dependable. There are three distinct procedures for evaluating

unwavering quality in information. These are test-retest, split-half and inner consistency. Test-

retest strategy for evaluating unwavering quality of information was not seen as reasonable for

this investigation since it incorporates directing a same instrument twice to a same combination

of subjects, with a period slip by between the first and second test. In this research, inside

consistency technique was utilized. The method of reasoning for inner consistency is that the

individual things should all quantify similar builds and in this way relates decidedly to each

other. The most generally utilized measure for deciding inside consistency is the Cronbach's

coefficient alpha. The trial of unwavering quality was determined utilizing the SPSS (Statistical

Package for Social Science). Cronbach's alpha (Cronbach, 1951), was utilized to decide the

inside consistency or normal relationship of free factors to gauge their reliability. By utilizing

this technique, the analyst estimated the relationship between everything in the poll and others.

The Cronbach's alpha coefficient goes somewhere in the range of 0 and 1 (De Vaus, 2014). An
unwavering quality coefficient of zero demonstrates that the grades are questionable. Then again

the higher the reliability coefficient, the more solid or precise the grades. For sociology

investigate purposes, tests with an unwavering quality score of 0.7 or more are dependable

(Kurpius and Stafford, 2006). The unwavering quality of the poll was tried utilizing the

Cronbach's Alpha relationship coefficient with the guide of SPSS programming.

4.6. Validity

Validity guarantees that the examination instrument is estimating what the analyst means to

gauge (Kilungu, 2015). There are three techniques to gauge validity of an exploration instrument,

which are; content validity, criterion validity and construct validity. Content Validity was

utilized in this investigation. Content validity is a proportion of how much information gathered

utilizing a specific instrument speaks to the substance of the idea being estimated (Mugenda and

Mugenda, 2009). To guarantee content validity, the analyst completed an intensive audit of the

writing so as to distinguish the things required to gauge the ideas, for instance, customer

satisfaction, competitive advantages and financial performance. Evidence of Validity is

accounted for as Validity coefficient, which can go from 0 to +1.00. The Validity scores moving

toward 1 give solid proof that the grades are estimating the build under scrutiny (Kurpius and

Stafford, 2011). The Validity of the poll was tried and upgraded by giving the survey to three

senior authorities from the Zain telecommunication and three supervisors who had the option to

evaluate the Validity of the announcements on the survey.

4.7. Data Analysis and Presentation

Analysis of data imply to the utilization of thinking process to encompass the knowledge that has

been collected with the point of deciding reliable examples and summing up the significant
subtleties uncovered in the examination (Kiaritha, 2015). To determine the design exposed in the

data collection with respect to the chose factors, data analysis was guided by the points and

targets of the exploration and the estimation of the data collection. The collected data was

evaluated and coded. The statistical analysis to be used in the examination included descriptive

statistics, correlation analysis and multiple regressions.

4.8. Hypotheses Testing

ANOVA test was directed to test the centrality of the connections between the factors dependent

on which the set hypothesis was acknowledged or dismissed. The choice to acknowledge the

examination hypothesis depended on the ρ-values. The ANOVA test was picked as the

examination assumed that the populace being tried was typically disseminated, had equivalent

fluctuations and the sample were free of one another. All hypothesis will be tried at the 95

percent certainty (level of significance, alpha = 0.05).