CHAPTER II

REVIEW RELATED OF LITERATURE

This chapter introduces the conceptual literature which encompasses other

theories, literatures from different medium that can help in this study. With this

Review Related Literature, the researchers will identify those different studies that is

connected in this research.

Conceptual Literature

The conceptual literature tackles about the different concepts, theories,

explanations, and observations that will broaden the study. This chapter addresses

different understanding of development that underlies in order to make a

contextualize study.

Situational Analysis

(IAEA, 2020) Situational Analysis helps develop a basis of understanding of

the government in which a plan is delivered. It provides a common reference point

for the planning process and prioritizes actions. The analysis. Can provide an

appreciation of the risk and benefit to the project and the organization s involve from

the way in which the communication process is implemented. It takes snapshot view

of an organization or situation where things stand at a certain point of time. The

company has many challenges accomplished that which identifies the company’s

SWOT (Strength, Weakness, Opportunities and Threats). The company examines

their target market and also their rivals to project their desired plan to launch it

successfully in the market. Talk ‘N Text (TNT) has a very strategic analysis that
strengthens their capabilities within an organization in terms on fulfilling their

products and services.

Telecommunications are ways to spread messages over long distances.

While at one point in history fire signals might have been used to spread information

today telephones, television, and computer are used. This analysis tackles the

SWOT of the company's capabilities on managing their product and services as well

as their company. To fulfill this challenges, the telecommunication company should

focus on those possibilities that their company might encounter. In recent times

telecommunication companies play an important role which enhance the social

interaction between and among individuals, groups, organization and governments

alike and also enlarge the knowledge of the users in their fields for which ultimately

create a strong network of global environment.

Company Analysis

Every telecommunication has different level on how they market their

products and services on their consumers. The company applies and identifies their

strength, weaknesses, opportunities, and threats to the competitive provision of

telecommunication services. Talk N’ Text telecom are way to a better service to their

consumer satisfaction by managing company’s capabilities as well as their company

itself. Talk N’ Text telecom analyses how they are going and how to launch their

proposed products and services. The company targets its consumers and

competitors as external factors and segmentation, positioning and unique product

proposition as internal factors. Talk N’ Text being a company that is well

acknowledge as being a very innovative force in the industry as their company

delivers a right services and product that their consumer wants. Also, the company

enables to benchmark their brands as well its business and performance among

their competitors. Cayanan and Suan (2014) on one hand analyzed the factors

affecting the pricing and pricing schemes of telecommunication companies in the

Philippines. In their paper, despite the reduction in the telecommunication services

prices brought about by competition in the said industry, the Philippines remained

the highest among Asian countries. They further accentuated that the duopolistic

nature of the Philippine Telecommunication industry, concerns have been raised

regarding service prices and the quality of services offered by the players.

Several thorough studies explored the telecommunication industry and its

importance in the micro and macro level environments. For instance, Sirapracha and

Tocquer (2012) investigated the relationship of brand image, customer experience,

and brand loyalty in Thailand’s wireless telecommunication service industry. The

results showed that the different wireless service players deliver different customer

experiences and images and that customer experiences influence brand strength

including brand image and customer loyalty. Al–Refaie, Jalham, and Li (2012) also

examined the relationships of service quality, customer satisfaction, corporate

image, perceived value, perceived price, loyalty, and trust in Jordanian

telecommunication companies. The results revealed that customer satisfaction is

directly affected by service quality, perceived value, perceived price and image. On

one hand, repurchase intention is positively related to by customer satisfaction,

loyalty and perceived value. Al-Debei and Avison (2011) asserted that the

telecommunication sector is undergoing critical revolution, and is driven by

innovation, globalization, and deregulation. Cellular networks and

telecommunications brought massive changes to the way telecommunication

companies are conducted. They further mentioned that there is a need to enhance

the ability of telecommunication operators in determining what constitutes the most

effective business model to meet their strategic objectives within the raging

environment.

Customer analysis

In the Market, that is exchange of goods and services takes place as a result

of buyers and sellers being in contact with one another, either directly or through

mediating agents or institutions. And Markets within the strict and prompt sense are

places in which things are bought and sold. Within the advanced industrial system,

exist the market has expanded to include the whole geographical range in which

dealers compete with each other for customers (J.V. Robinson, 2017).

According to A. Al-Hashedi & S.A. Abkar (2017), The customer satisfaction

becomes the most important factor for business success in most industries.

Furthermore, if organizations want to ensure higher satisfaction of customers they

must know how customers perceive their service quality and how they can measure

it (Angelova and Zekiri 2011).

Scholars recommend to investigate on the impact of service quality on

customer satisfaction in various industries since existing empirical evidence is

limited to few sectors (Shafei & Tabaa, 2016). Telecommunication Industry is highly
competitive and on the front line of technological changes adaptation where it can

make a considerable influence on other industries.

Accordingly, it is an important context to research about the impact of service

quality on customer satisfaction (Jeng and Bailey, 2012; Sur, 2012 as cited by

Nawafleh 2017) and mainly due to the introduction of new technology and the

increasing demand.

Winning in the marketplace needs to build customer relationships not only to

create the products but also distributing superior value to target customers. Through

customer feedback on satisfaction, it is analyzed whether the company is providing

qualitative service or not.

Collaborator analysis

In organizations that strengthen the efficiency of the firm to deliver its unique

products or services in the way it does. This factor primarily revolves around a

company’s supply chain, which ranges from spot contracts up to quasi-vertical

integration. The direction of integration can only be upstream or downstream.

Businesses or entities that can help the company achieve its goals and objectives.

One of the list of collaborator are the suppliers and distributors.

Companies providing various services, such as private network services,

fixed communication devices, mobile services, internet services, and other wireless

communication services, were also part of the telecommunications industry. Its

contribution to society is critical to achieving productivity in order to gain goals

through organizational efficiencies and employee growth.

 In the study of Öztürk and Marşap (2018), telecommunications companies in

the UK, US and Turkey reported that the operations of these companies are

community and environment-sensitive. Just like in the study of Malaysian

telecommunications companies, community involvement is highly valued and is

concerned with energy consumption and water management. Moreover, importance

was also given to the workforce by providing them equality among employees, a

pleasant working environment and work-life balance.

According to Mohanty and Moreira (2014) Keeping the growth of new

technology and standards and supervision from the governments and

standardization enforcing bodies worldwide can also help in achieving sustainability.

Hence, the sustainability of its operations are more vital (Kang, Ryu and Kim, 2010).

The relationship between the distributor and suppliers helps more in the business by

building a great partnership in the investors and also employees can make the

company more competence.

Climate

Evaluation of the macro-environmental factors affecting the business when it

comes to external factors. Looking at climate, we are assessing macro-

environmental factors the external factors. The economic environment, political

environment, and regulatory environment, more likely the climate. The Society’s

fashions and trends can be in the social/cultural environment, are also part of the

climate. Also examining the climate that includes analyzing the technological

environment. This includes also part of competitors and competition in the market

industry.
 Telecommunications industry has been showing growth, substantial social

and environmental impacts and innovation. It has become an essential sector that

supports the need to connect with people as well as connecting and processing

business information around the globe (Mohanty and Moreira, 2014).

The need for transparency and accountability of organizations gave rise to the

development of performance composed of environmental and social activities,

considered a more precise standard sustainability reporting (Nielsen and Thomsen,

2012). The social and environmental influence of business and the impact of social

and environmental concerns on companies are increasing and the utmost concern to

various businesses, contributing to their sustainability footprint being actively

accounted for and controlled.

Sustainability reporting is also known as corporate social responsibility (CSR),

triple bottom line (TBL) reporting, non-financial reporting, and environmental, social,

and governance (ESG) reporting (Siew, 2015) that discloses the balance of external

and internal engagement by the company. A standalone CSR Report can even

influence stakeholder’s perceptions (Mahoney et al., 2013) towards the company

when they see that they are concerned with the social and environmental issues

within their country.

Standards serve as a common language that can assess and communicate

the economic, environmental and social impacts of organizations. It has been widely

used by multinational companies of different industries (Michelon, Pilonato and

Ricceri, 2015).
Marketing Plan

Marketing plan is responsible in a business for the purpose of describing the

current market position of a business and its marketing strategy for the period

covered by the marketing plan. Typically, a marketing plan includes an overview of

the business marketing and advertising goals, description of business’s current

marketing position, timeline of the tasks within a strategy, and a description of

business’s target market and customer needs. It is clearly show what steps or

actions will be taken to achieve the plan goals. It is marketing plan have a strategy

increase the organization’s market share. Besides, collecting and organizing data

about the market the organization is currently in. Looking at market dynamics,

patterns, customers, and the current sales volume for the industry as a whole. A

marketing plan should describe the organization's competition. It should be

describing detail on how the organization will stand out from its competition and what

it will do to become a market leader (Sara McGuire, 2020).

Developing the marketing and promotion strategies that an organization will

use. Each strategy to consider are such things as advertising, direct marketing,

training, programs, trade shows, websites, and other types of strategic when it

comes in promoting product or services. It is a blueprint that outlines how a company

will implement its marketing strategy, and use a combination of resources to achieve

business objectives including sales targets or customer acquisition. And due to the

ever-changing environment and marketing tools that become available, the modern

day marketing plan tends to be relatively short in nature, covering from one to a few

years.
Synthesis

The conceptual literature shows the different concepts theories and

observations to conduct situational analysis of service quality of telecommunication

companies. The conceptual framework covers deep understanding and sufficient

information about the situational analysis. As the study focused on situational

analysis, different factors were considered and presented such as the internal and

external environment of the industry.

The presented literature provided the foundation and rationale of the study as

well as support and possible solutions for the management of the industries being

studied. The study made of many different conclusions have been reached and

related studies are rather fragmented, especially with regard to customer value.

Furthermore, there are few related studies with service quality, customer satisfaction

and customer value and their influences on customers’ future behaviors in the

telecommunication industry as the focus.

Research Literature

The study of Naldi et al. (2015). Focused on the smart growth concept is not

new, with a fairly well established literature in regional planning, particularly in the

United States. Within Europe, smart growth has become an important policy-

orientated concept. In the Europe 2020 growth strategy, for example, smart,

sustainable, and inclusive growth are key objectives that are central and also viewed

as mutually reinforcing if Europe is to reach its stated growth targets European

Commission 2011. One of the underlying features of this smart growth agenda is the
idea that you build policy models that favor local competencies and regional

advantages.

The study of Lury et al. (2011) focused on the argue that advertising brings

consumer goods and representations of the culturally constituted world together

within the frame of an advertisement. Advertising of goods necessarily requires a

reflection of human culture and, consequently, advertisements need to be mediated

by a culturally symbolic field in order to gain relevance in society.

The study of S Rajeswari (2017) focused on the last few decades have

witnessed a greater transition in the communication sector due to the unpre-

cedented innovations in technology. On the one hand, the emergence of broadband

has rejuvenated and strengthened the wireline sector by making use of the existing

wireline infrastructure. On the other hand, it has created an intense competition

among the service providers. The competition has propelled the service providers to

look beyond the idea of providing service and has forced them to consider other

factors like establishing customer loyalty which stems out of customer satisfaction

and service quality. Thus, the study aims to analyze the interrelationship among the

above-mentioned factors with respect to digital subscriber line (DSL) service offered

by the incumbent wireline operator in Puducherry. The study has found that

customer satisfaction plays an intervening role between service quality and

customer loyalty.

The study of Sara Quach (2017) focused on the research explores how

loyalty changes, i.e. loyalty transformation, in a highly regulated environment. The

main research problem of this thesis was: How does loyalty transform in a highly
regulated service environment? The concept of loyalty was examined using a set of

philosophical and sociological theories such as the need of loyalty, loyalty layers,

processual view and emotional energy. In addition, public interest theory, the

concepts of market failure, information asymmetry and the “invisible hand” were

employed to understand the triadic interactions among the government, customers

and service providers.

The study of Arora, (2010) focused on the nature of ICT appropriation and

experience, as well as perceptions of privacy in low-income urban communities,

represent the interplay of technological and social capital embedded in place. Urban

slums offer a rich site for analyzing sociotechnical practice, and in rethinking the

concept of private and public spaces in media use, as well as in articulating the fluid

boundaries of these spaces.

Synthesis

This part examines the similarities and differences of the present study to the

works cited in research literature.

The study of Naldi is similar to the present study since both aimed to

determine the performance an organization. In addition, Naldi based and focused on

smart growth has become an important policy-orientated concept. The study

conducted by Lury is similar with the present study since they have the same

subject. Luri are focuses to the Advertising of goods necessarily requires a reflection

of human culture and, consequently, advertisements need to be mediated by a

culturally symbolic field in order to gain relevance in society

 The study of Rajeswari is similar to the present study since it gives emphasis

on the importance of availability and accessibility of information. In addition, the

study aims to analyze the interrelationship among the above-mentioned factors with

respect to digital subscriber line (DSL) service offered by the incumbent wireline

operator in Puducherry. The study has found that customer satisfaction plays an

intervening role between service quality and customer loyalty.

The study conducted by Sara Quach similar to the present study since both

aimed to determine the performance an organization. In addition, quality of customer

service is also considered in both studies. In addition, the focused of this study is

explores how loyalty changes, i.e. loyalty transformation, in a highly regulated

environment.

The study conducted by Arora is similar to the present study since it gives

emphasis on the importance of availability and accessibility of information. On the

other hand, all of them are based on the development that service quality, customer

satisfaction and customer value are becoming the most important factors of

business success for either manufacturers or service providers.

However, many different conclusions have been reached and related studies

are rather fragmented, especially with regard to customer value. Furthermore, there

are few related studies with service quality, customer satisfaction and customer

value and their influences on customers’ future behaviors in the telecommunication

industry as the focus.