Market segmentation and customer service at Orange Telecom-Uganda

Abstract

The general objective of the study was to investigate how market segmentation can improve on customer service at orange telecom. The study was guided by three specific objectives which were to examine the bases of market segmentation at orange telecom, to examine the measurements of customer service at orange telecom and to examine the effect of market segmentation on customer service. A cross-sectional research design was employed to collect primary data using self-administered questionnaires. Data was gathered using a structured questionnaire from 42 individual customers and 27 corporate customers of orange telecom. Interviews were also used to collect qualitative data from some of the informants especially from marketing department of orange telecom and some individual customers. It was found out that Orange telecom has segmented its market according to population, age groups, gender, time, level of use, attitude though some respondents disagreed with the assertion that orange telecom segments its customers according to their level income and earnings. Study findings further indicate that Orange telecom has the ability to provide the promised service dependably and accurately, has willingness to help customers and provide prompt service and that most of its customer care service staff are fully trained in the area of providing world class customer care service. Study findings indicated that there is a strong positive relationship (r=0.884, p=0.000) between market segmentation and customer service. It is concluded that market segmentation when emphasized in the service industry will result in an improvement in service delivery enabling telecommunication companies to create customer loyalty, increase their market bases and profitability. It is recommended that orange telecom and other communication companies should make an effort to promptly and regularly attend to customers and as well charge reasonable amounts on the mobile and internet service that they offer to its customers. It was also recommended that the top management team of orange telecom should launch promotional campaigns that will make customers aware of the existence of the various market segments, the services offered in each segment and the advantages of being part of the segments.