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© SEP 2020 | IRE Journals | Volume 4 Issue 3 | ISSN: 2456-8880
IRE 1702475 ICONIC RESEARCH AND ENGINEERING JOURNALS 18
Evaluation of Factors Affecting for Select Internet
Service Providers
DMT MADUSHANKA1, JMN WIJEKUMARA2, KADTD KURUPPU3, SPAAM SUGATHAPALA4
1 Department of Information System, Faculty of Management Studies, Rajarata University of Sri Lanka,
Mihinthale
2 Department of Accountancy and Finance, Faculty of Management Studies, Rajarata University of Sri
Lanka, Mihinthale
3 Department of Business Management, Faculty of Management Studies, Rajarata University of Sri
Lanka, Mihinthale
4 Bank of Ceylon, Kandy
Abstract- The researchers’ attempt is to investigate
the factors affecting to customer’s intention to select
a particular internet service provider in Gampola
area. According to the literature reviewed, effecting
factors of service quality, price, brand image and
promotion are used as independent variables and
customer satisfaction used as dependent one of the
study. The target population includes internet users
in Gampola area. In order to collect necessary
information 100 internet users were selected
randomly as the sample consumer of the internet
service providers in Gampola area. Both primary and
secondary data are used to test the model develop in
this research. Questionnaire is the primary method
followed in this research and the questionnaire
includes 35 questions. SPSS version (21) was used
for statistical analysis process of the research.
Reliability analysis was used to check the internal
consistency of questionnaire. The hypotheses have
been tested using correlation and regression
analysis. The correlation analysis resulted that all
variables (SQ, P, BI, PR) are positively affect to
customer satisfaction of selecting and staying with a
particular Internet service provider. Result of
regression analysis indicated that brand image and
promotion are not significantly effect for the
selecting with a particular Internet service provider,
but price and service quality are significantly effect
for the selection of internet of service providers
According to the study Service Quality, price, brand
image and price factors should be favorable to the
customers. This research and developed model cold
be useful for service providers to develop SQ, P, BI
and PR factors suitably to improve customer
satisfaction.
Indexed Terms- Brand image, internet service
providers,price, price factors, service quality
I. INTRODUCTION
Although the internet’s history goes back to the early
1960’s it was relatively new to Sri Lanka until the
initiation of the project called learn (Lanka
experimental academic and research network) in 1990
by the University of Moratuwa. It is the first step that
launched towards the connectivity of academic and
research communities in Sri Lanka to the internet.
Also, learn interconnects most of the academic and
other research institutions across the country. It has
provided the Sri Lankans first e-mail service, which
was operated by the department of computer science
and engineering of the University of Moratuwa.Since
1993, academics in the country started to access the
internet by means of techniques such as international
direct dialing – IDD on a fairly regular basis.
However, in 1995 learn was connected to the real
global internet giving unrestricted access to its users.
In addition to the academics there are many other
private computer users and business organizations
who want to have access to the internet and the www.
Therefore, the need of such services emerged in order
to provide the internet access to anybody. An
organization that provides access to the internet in
some form is called an internet service provider (ISP).
Lanka internet is the Sri Lanka's first such ISP
established in 1995. Now they provide necessary
© SEP 2020 | IRE Journals | Volume 4 Issue 3 | ISSN: 2456-8880
IRE 1702475 ICONIC RESEARCH AND ENGINEERING JOURNALS 19
services such as electronic mail World Wide Web
access, FTP, telnet and gopher. Before Lanka internet
launches these operations Sri Lanka’s
communications capabilities were very difficult and
the technology was expensive. Only a limited number
of large multinationals and shipping companies were
able to access the new technology.
In addition to the internet facilities Lanka internet also
specializes by providing services such as local area
(LAN) and wide area (WAN) network solutions, radio
modem connections, and project management.
Country’s second ISP was Sri Lanka telecom which
also hopes to improve the nation's telecom
infrastructure which will be of benefit to the internet
users around the country. They provide both dialup
and dedicated line access to the internet for reasonable
fees. Later a number of ISP’s joined the internet
offering full internet connectivity to the people.
However, in most cases access was restricted to users
in the capital, Colombo and the suburbs.
According to the latest published report, at the end of
June 2016 the number of internet users in Sri Lanka at
6,087,164. This data is further verified by Google’s
Public Data Analysis which indicates a 27.4% internet
penetration in the country at the end of year 2016.
Facebook reported 3.8 million monthly active users as
of June2016. Assuming 50% of all internet users are
on Facebook this will be 7.6 million total internet users
(World Bank Stats, 2016).
There are seven main internet service providers in Sri
Lanka. Those are, Hutch, Sri Lanka Telecom (SLT),
Dialog, Mobitel, Etisalat, Airtel, Lankabell and Suntel.
Every internet service provider must try their best to
develop their marketing strategy and improve their
business performance to increase their levels of
competitiveness. The first step to increasing their
competitive potential is to acquire customers as much
as possible based on a thorough understanding of
customers’ decision making of how and why
consumers choose particular service providers. A
strong understanding of customer decision making or
customer’s selection behavior is then very important
for the service providers in order to be successful and
achieve their business goals.
II. PROBLEM STATEMENT
An internet service provider (ISP) is an organization,
provides service accessing and using the internet.
Internet service providers are becoming more popular
and the rapid development of information
technologies is affecting almost every aspect as
entertainment, education, business and other of
peoples’ lives around the world.
Currently, there are many internet service providers
for provide user’s internet service. They had become
competitive to acquire new users and retain existing
users into world. Therefore, users need best internet
service provider to successful their various activities
through the information technology. Many countries
identified that various factors effect on user’s
satisfaction when select internet service providers
from persons had done investigation.
Price fairness influences customer satisfaction and
loyalty. Service quality positively influenced customer
satisfaction in terms of loyalty and attitudes. In
addition, there was a significant gap between the
perceived satisfaction and expectation (P-E) on all of
the service quality dimensions (Arokiasamy and
Abdullah, 2013).
Balmer et al., (2009) highlights the importance of
corporate image, asserting that a link exists between
an individual’s image of the organization and that
person’s behavior towards it. These circumstances are
forcing companies to change their customer
promotional strategies. It is analyzed that
advertisement play a dominant role in influencing the
customers but most of the customers are of opinion
that promotional strategies of cellular companies are
more sale oriented rather than customer oriented
according to (Kumar, Vani and Vandana, 2011).
Currently, in Sri Lanka, Internet usage is at high level
for various activities such as education, business,
entertainment and other. Institutes and person’s
activities become efficiency and effectiveness as well
as increasing the economy and social development of
Sri Lanka through adopt the information technology
and expand internet service.
© SEP 2020 | IRE Journals | Volume 4 Issue 3 | ISSN: 2456-8880
IRE 1702475 ICONIC RESEARCH AND ENGINEERING JOURNALS 20
Internet users try to select a best internet service
provider among the internet service providers only if
users become satisfaction through provided their
internet services. According to privies research of
other countries, identified that factors as service
quality, price, promotion, brand image and other effect
on customer satisfaction when select internet service
providers.
The main problem which internet service providers
face is attract new users, retain existing users and
expand their internet services because internet service
providers correctly don’t identify what are the factors
effect on the customer satisfaction when select internet
service providers in Sri Lanka. Therefore, researcher
attempt to investigation about this problem and
identify the key research problem of this study is
• To check whether identified factors influence
customers’ satisfaction to select internet service
providers in Gampola area?
According to this research, it will help for user to
select the best Internet service provider and internet
service providers may be attracting new users, retain
existing users and expand their internet service as
success
III. METHODOLOGY
• Conceptual framework
The researchers have identified the factor, service
quality, price, brand image and promotion as
independent variables and customer satisfaction is
considered as dependent variable for this current
study.
Fig 1: Conceptual framework
Source:Develop by researcher, (2020)
• Type of the study
According to this research researcher try to identifying
factors affecting to selection of internet service
providers in Gampola area, which is a certain problem
that commonly identified. Therefore, this research can
have considered as the basic type of research.
• Nature of the study
The data were comprehensive and detailed study will
be Carrie out of internet users in Gampola area. The
researchers have used the single cross-sectional design
for this research. The data had collected only one time
from target population. This research follows the
deductive approach and thus becomes explanatory in
nature.
• Sampling
The target population for this study was defined as
individuals who have internet access in the Gampola
area. Therefore, by considering time and cost
restrictions, researchers have selected 100 consumers
who are using internet servicers as the sample based
on simple random sampling method.
• Data collection method
In this research data was collected in using a structured
questionnaire which included 35 questions to identify
the relationship between independent and dependent
variables. For this study, researchers gathered the
secondary data from research articles, magazines,
books publications, internet and annual reports, which
were relevant and able to support the literature review.
• Methods of Data Analysis and Evaluation
In this research, data collected through questionnaires
and those data analyzed properly to reach the
objectives of research. Therefore, researchers used to
investigate about Internet service provider selection in
Gampola area. For this purpose, researchers used
reliability analysis, descriptive analysis and
correlation analysis in order to analyze the collected
data by Statistical Package for Social Science (SPSS
20).
IV. FINDINGS OF THE STUDY
Analysis of Demographic Profile of the Sample
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IRE 1702475 ICONIC RESEARCH AND ENGINEERING JOURNALS 21
• Gender distribution
Table 1: Gender distribution
Source: Develop by researcher (2020)
According to the above table 50%, respondents were
female and other 50% were male.
• Age level of the sample
Table 2: Age level of the sample
Source: Develop by researcher (2020)
Majority of respondents (33%) were below age of 18,
31% respondents were within the 18-30 age group,
28% respondents were within the 31-50 age group and
8% were 51 years old and above. These results indicate
that the age category of below 18 was the largest
segment of the Gampola area population that has
internet access.
• Current Internet Service Provider and time of the
respondent been with this service provider
Table 03: Current Internet Service Provider and time
of the respondent been with this service provider
Source: Develop by researcher (2020)
In this survey questionnaire provided potential internet
service providers with seven categories representing
Sri Lanka Telecom (SLT), Hutch, Airtel, Mobitel,
Dialog, Etisalat and Other. The majority of
respondents (41%) indicated that Dialog was their
current service provider, 24% of respondents using
Mobitel, 12% respondent using Etisalat and 9% using
Hutch, 8% using Airtel and 6% using SLT.
When consider how long they had used their current
service provider, the majority of respondents (31%)
had used their current service provider more than 3
years. There were 30% of the respondents who had
used their current service provider for 3 years, 26%
who had used their current service provider for 2 years
and 13% who had used their current service provider
less than 1 year.
• Respondents’ reason for using internet
Table 04: reasons for using internet
Source: Develop by researcher (2020)
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IRE 1702475 ICONIC RESEARCH AND ENGINEERING JOURNALS 22
The main reasons for using internet were classified
into five categories of education, entertainment, get
awareness about information, shopping and business
activities. According to the table respondents’ mainly
(46%) using internet for entertainment, 24% of
respondents using internet access for get awareness
about information, 20% of respondents using internet
access for education, 7% of respondents using internet
access for shopping and 3% of respondents using
internet access for business activities.
• Reliability Analysis
Table 5: Reliability analysis
Source:Develop by researcher (2020)
Generally, the Cronbach alpha value should be at least
reach 0.7. It should be located in 0.7-0.98 that means
high reliable. According to the above table researchers
can clearly identify that Cronbach’s Alpha value of
customer satisfaction is 0.792. It exceeds the standard
level of reliability measurement. Therefore, could get
a conclusion that customer satisfaction questions are
more reliable to measure the customer satisfaction. In
addition to the customer satisfaction, Cronbach’s
alpha value of service quality was 0.782, price was
0.703, brand image was 0.701 and promotion was
0.772. According to those values Cronbach alpha
value exceed the minimum level of standard.
Therefore, researchers identified that questions are
more reliable to measure the variables.
• Descriptive statistics for Research Variables
Table 6: Descriptive statistics
Source:Develop by researcher (2020)
Mean value indicates the mostly given answers by the
respondents for the questions of the researchers.
According to the above explanation, the mean scores
of the composite variables in this research were
between 2.3050 and 2.7200, which means that the
respondents have given average scores on most
composite variables. According to that respondents’
attitude towards the service quality, price, brand
image, promotion and satisfaction were in moderate
level. The standard deviations of the composite
variables were between 0.59178 and 0.65568.
• Correlation Analysis
Correlation coefficient indicates the strength and the
direction of the relationship can be computes by
applying a formula that takes into consideration the
two sets of figures (Sekaran, 2013).
• Hypothesis testing
Table 07: Hypothesis testing
Hypothesis
Pearson
Correlation
Sig.
Status
H1 - There is a
significant
relationship
between service
quality and
customer
satisfaction of
.565**
.000
Accepted
© SEP 2020 | IRE Journals | Volume 4 Issue 3 | ISSN: 2456-8880
IRE 1702475 ICONIC RESEARCH AND ENGINEERING JOURNALS 23
service provider
selection.
H2 - There is a
significant
relationship
between price
and customer
satisfaction of
service provider
selection.
.634**
.000
Accepted
H3 - There is a
significant
relationship
between brand
image and
customer
satisfaction of
service provider
selection.
.481**
.000
Accepted
H4 - There is a
significant
relationship
between
promotion and
customer
satisfaction of
service provider
selection.
.378**
.000
Accepted
**. Correlation is significant at the 0.01 level (2tailed).
Source:Develop by researcher (2020)
According to the above table, Pearson Correlation
Coefficient between the independent variables of
promotions, service quality, price, brand image and
the dependent variable of customer satisfaction was
respectively denoted as .565,.634,.481,.378.
Relationship was statistically significant, because sig
value was 0.000 (which is less than 0.05) in every
hypothesis. Therefore, it can be statistically indicating
that there was a significant positive relationship
between the independent variables and dependent
variable.
• Regression Analysis
Based on the conceptual model developed under
chapter three, researchers have selected the multiple
regression model to analyze the linear relationship
between the independent variables and the dependent
variable.
Table 08: Model summary
Source:Develop by researcher (2020)
Model summery constrains the essential information
regarding how well regression model fit or did not fit
with the observed data. R square assumed that
independent variable in the model helped to explain
variation of the dependent variable. As illustrated in
model summery table, R square value of 0.502
indicates that predictor variables (SQ, PR, P, BI) for
the test have ability to explain 50.2% variation of the
dependent variable (CS).
Table 09: Anova
Source:Develop by researcher (2020)
According to ANOVA table significant value of the
model was 0.000 (which is less than 0.05). That mean
is independent variables were significantly affect to
the customer satisfaction of service provider selection.
Table 10: Regression coefficient
© SEP 2020 | IRE Journals | Volume 4 Issue 3 | ISSN: 2456-8880
IRE 1702475 ICONIC RESEARCH AND ENGINEERING JOURNALS 24
Source:Develop by researcher (2020)
According to the table, regression coefficient of
service quality was 0.307 and sig value was 0.001. It
was less than 0.05. Then it indicated a statistically
significant leaner relationship between service quality
and customer satisfaction
Regression coefficient of price was 0.438 and sig
value was 0.000. It was less than 0.05. Then it
indicated a statistically significant leaner relationship
between price and customer satisfaction.
Regression coefficient of brand image was 0.104 and
sig value was 0.318. It was higher than 0.05. There is
no statistically significant leaner relationship between
brand image and customer satisfaction of internet
users in Gampola area.
Regression coefficient of promotions was 0.032 and
sig value was 0.707. It was higher than 0.05. There is
no statistically significant leaner relationship between
promotions and customer satisfaction of internet users
in Gampola area.
CONCLUSION
This purpose of this research is investigates the factors
that influence a customer’s intention to select and stay
with a particular internet service provider in Gampola
area. It aims to discuss the analyzing factors affecting
to customer satisfaction with service quality, price,
brand image and promotion.
Discussion of the Relationship between service quality
and customer satisfaction of service provider
selection.
Service quality positively influence on customer
satisfaction, there is a significant relationship between
the perceived satisfaction and the service quality
(Arokiasamy and Abdullah, 2013). There is a
significant positive and highest correlation effect
between service quality and customer satisfaction.
Service quality influence to attract customers for the
internet service (Sumathisri, Muthumeenakshi and
Anand, 2014).
In this research researchers found that significant
positive relationship between service quality and
customer satisfaction of service provider selection in
Gampola area.
Discussion of the Relationship between price and
customer satisfaction of service provider selection.
There is positive and significant relationship between
satisfaction and price fairness. Price fairness is the key
factor contributing towards customer satisfaction
(Shahzadand Afsheen, 2012). According to Herrmann
et al, (2007), price directly influence on customer
satisfaction.
In this study also revealed that significance positive
relationship between price and customer satisfaction
of service provider selection in Gampola area.
Discussion of the Relationship between brand image
and customer satisfaction of service provider
selection.
Corporate image is believed to have an influence on
customers’ buying decisions since it can simplify
customer decision making and can help customers to
choose the most favorable option from different
companies or service providers (Markus 1977).
In this research found that brand image is positively
affecting to the customer satisfaction but there was not
significance relationship between brand image and
customer satisfaction of service provider selection in
Gampola area.
Discussion of the Relationship between promotion and
customer satisfaction of service provider selection.
Advertisement play a dominant role in influencing the
customers but most of the customers are of opinion
that promotional strategies of cellular companies are
more sale oriented rather than customer oriented
(Kumar, Vani and Vandana, 2011). In this research
found that promotion is positively affecting to the
customer satisfaction but there was not significance
relationship between promotion and customer
satisfaction of service provider selection in Gampola
area.
© SEP 2020 | IRE Journals | Volume 4 Issue 3 | ISSN: 2456-8880
IRE 1702475 ICONIC RESEARCH AND ENGINEERING JOURNALS 25
According to correlation analysis the researchers have
concluded that all variables are positively affected to
customer satisfaction of service provider selection.
Results of regression analysis indicated that there is a
significance relationship between service quality and
customer satisfaction. And price also has significance
relationship with customer satisfaction. And other
variables (brand image, promotion) are not significant
relationship with customer satisfaction. Result
revealed that price was the highly effecting factor on
customer satisfaction.
RECOMMENDATIONS
In this research found that price was the most affecting
factors on customer satisfaction. Therefore, internet
service providers should pay more attention on price
factors. For managers, this finding has implications
with regard to marketing strategies. The internet
service providers perhaps could offer affordable
package at lower subscription fees for that would help
to expand market share and benefit different market
segment. It can be viewed as a major competitive
factor for service providers and can be used to improve
their competitive advantage.
According to this findings management needs to
emphasize service quality. Due to the fact that internet
service providers do not provide a tangible product,
their service quality is usually assessed by measures of
the service providers’ relationship with customers.
Thus, ISP management should pay attention to staff
skill possession, knowledge, attention to customers
and their needs, offering of fast and efficient services
and general attitude to customer services.
Customers tend to make their purchase decision to a
select a particular service provider brand image may
influences customers’ selection. Internet service
providers must be taken to ensure that elements such
as company name, logo and other features that
distinguish the company from its competitors are
outstanding in the consumers mined. Management can
continually promote these identities in advertising,
point of sale material and other promotional activities
directed at selling services to customer.
According to the findings promoting will useful for
new consumers and it may be change new internet
users mind and attracting more customers for service
providers by using promotion. It can be done through
offering excellent promotion packages and special
promotion plan. Considering the result, it seems that
promotions based on immediate price reductions can
be use. It has been proved that it is this technique that
exerts a greater influence on the brand choice process.
Immediate price reductions (price cuts) that have a
more important effect on consumer behavior.
Therefore, promotions based on price are most
effective. This fact is very important, since the service
providers can invest in promotional actions that are not
valued by consumers.
This research will be valuable for internet service
providers in Gampola area because service providers
can apply the research results with their service and
marketing strategies in order to acquire new customers
as well as to retain their existing ones
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