Assessment of customer satisfaction towards mobile money transfer services in tanzania: case study of vodacom’s m-pesa




старонка2/7
Дата канвертавання25.04.2016
Памер288.15 Kb.
1   2   3   4   5   6   7

LIST OF TABLES



Table 3.1: The questionnaires distribution coverage Error: Reference source not found

Table 3.2: The questionnaires respondents in the three municipals Error: Reference source not found

Table 4.1: Gender of Respondent Error: Reference source not found

Table 4.2: Quality of service provided by Vodacom M-Pesa Error: Reference source not found

Table 4.3: Efficiency of Vodacom M-Pesa services Error: Reference source not found

Table 4.4: Vodacom M-Pesa services for paying school fees Error: Reference source not found

Table 4.5: Vodacom M-Pesa services for meeting daily family expenses Error: Reference source not found

Table 4.6: Vodacom M-Pesa services for medical expenses Error: Reference source not found

Table 4.7: Vodacom M-Pesa services Vendors Employment status Error: Reference source not found

Table 4.8: Summary of the respondents Error: Reference source not found

Table 4.9: The distribution of power for mobile phone changing used on MMT services Error: Reference source not found

ABBREVIATIONS

BOP - Bottom of the Pyramid


BOT - Bank of Tanzania

GDP - Gross Domestic Product

DAWASCO - Dar es Salaam Water and Sewarage Company

DRC - Democratic Republic of Congo

FSD - Financial Sector Depening

P2P - Person to Person

TBC - Tanzania Broadcasting Corporation

TCRA - Tanzania Communication Regulatory Authority

MMT - Mobile Money Transfer

M-PESA - Mobile Pesa

NMB - National Microfinance Bank

TANESCO - Tanzania National Electric Supply Company



CHAPTER ONE

1.0 INTRODUCTION AND BACKGROUND OF THE STUDY


1.1 Introduction

In Sub-Saharan Africa, the momentum behind the take-up of mobile phones has raised the prospect for provision of financial services via mobile phones. This can have positive developmental consequences, including, increasing the efficiency of payment systems and reducing reliance on cash as a transactional medium, thus broadening access to financial services (Gray, 2005).


By comparison, the penetration of retail banking systems in most African countries is very low. While no reliable figures for the proportion of people banked yet exist at continental level, national household surveys are providing more reliable information for certain countries. According to Finscope (2005), as unbanked people start to use mobile phones, they can become more bankable as basic banking service become accessible via mobiles.
The expansion of mobile phone usage has pulled in its wake, access to basic banking. As a result, the proportion of people with access both to formal communications and to formal financial services will rise. Attracted by the market potential, several M-payment and M-banking services have started up in various African countries including Zambia, DRC, South Africa, Nigeria, Kenya and Tanzania (Finscope, 2005).
Kenya, Tanzania, Uganda and Rwanda currently have a combined active mobile subscriber base of 43.3 million. Of these Kenya, has the largest share with 18.7 million subscribers, followed by Tanzania, with 11 million and Uganda, with 8.7 million subscribers. Rwanda has the smallest mobile telecommunications market with only 1.6 million active subscribers (Sullivan and Frost, 2010).
Kenya’s penetration rate of approximately 42 per cent is the highest in the region, whereas Rwanda has the lowest with 13 per cent. Although the mobile markets are becoming increasingly competitive with 17 mobile operators at the end of 2008, projected growth rates to 2015, are high. Growth rates of 108 per cent for Rwanda and 43 per cent for Kenya have been forecast (Sullivan and Frost, 2010).
Vodacom’s MMT (M-PESA), launched in 2009, and is internationally recognized as a global pioneer in terms of mobile payment services. With 10.2 million subscribers at the end of 2009, transactions worth Tshs 20.48 billion were made through M-Pesa in 2010. Although it has not been a major revenue generator for the operator, the fact that it has made a contribution to customer loyalty is significant (Sullivan and Frost, 2010).
MTN Mobile Money (MMM) is an MMT service that is offered in Uganda. The service was launched in 2009, with MTN Rwanda set to launch its MTN MMT service by the end of 2009. There has been a rapid uptake of MMT in Uganda and Rwanda is set to achieve similar goals with its launch at the end of the year. Airtel entered the MMT market approximately in 2009 (Sullivan and Frost, 2010).
Airtel’s MMT service is called ZAP. In 2009, Airtel launched three new applications: Zap Transact (collect cash from numerous sources and put directly into bank accounts), Zap Master Pay (ease cash administration, whereby a company pays up into up to 1,000 Zap accounts at a time). These applications were designed to meet the requirements of small and medium enterprises by easing the transaction processes (Sullivan and Frost, 2010).
The objective of the study is to assess level of customer satisfaction with Mobile Money Transfer (MMT) services in Tanzania by focusing on Vodacom’s M-PESA. Specifically, the study aims to asses the extent to which customers are satisfied with M-PESA services, identify contributing factors for customer satisfaction with M-PESA services and examine measures taken to ensure customers are satisfied with M-PESA services. Customer satisfaction is therefore a primary goal of process improvement program. When creating a customer satisfaction survey the first objective is to get the customer participate, (Bob E.Hayes, 1998).
Mobile Money Transfer (MMT) services are financial transactions undertaken using mobile device such as a mobile phone (Allen, 2003). MMTs are a small but growing subset of the broader world of electronic payments (E-payments). MMTs are simply the transference of value from payer to payee, as in a remittance or bill payment (Krugel, 2005).
MMTs are a subset of E-banking in which customers’ access a range of banking products, such variety of savings and credit instruments, via electronic channels. MMTs require the customer to hold a deposit account to and from which payments or transfers may be made. According to a recent report by the Committee on Payment and Settlement Systems (CPSS, 2008), M-payments have advanced rapidly in recent years. The transfer of money is made possible by the fact that MMTs share to some degree the basic characteristics of money: they use a commonly accepted unit of account: they are typically denominated in currency units (not, for example, time units) and they can be an efficient medium of exchange in societies where the financial system does not allow easy remote transfers (Krugel, 2005).
According to Wright et al, (2006), MMTs are limited to users of same network, limiting the value for other mobile users. MMTs are also used to store of value, provided that the mobile telephone company continues in business, and the airtime does not expire. Within the constraints of airtime validity and network usage, airtime is an alternative currency of sorts. The biggest constraint here is its real cost: airtime is not redeemable at par into cash.
MMTs usually involve paying away a sizable commission (typically 5%) on the face value of the airtime at first sale. In addition, sales or value added taxes are often levied on the face value of the airtime. However, these cost factors alone do not prohibit the redemption of airtime into cash by vendors or indeed, the network operator itself; they simply translate into a deep discount to face value (Wright et al, 2006).
Kenya, Tanzania, Uganda and Rwanda currently have a combined active mobile subscriber base of 43.3 million. Of these Kenya, has the largest share with 18.7 million subscribers, followed by Tanzania, with 11 million and Uganda, with 8.7 million subscribers. Rwanda has the smallest mobile telecommunications market with only 1.6 million active subscribers (Sullivan and Frost, 2010).

1.2 Statement of the research problem

In the Financial sector which is dominated mainly by commercial banks was historically looked upon as the powerful catalyst for economic development. However banks did not offer wide service on money transfers services in rural areas despite that in rural areas there is high need of money services. The importances of mobile money service arise as most of people use mobile money transfer services.


This research focusing on customer satisfaction on the use of mobile money transfer service as one of the problem resulted due to lack of vendor who supports M-Pesa services at the area where receiver need the service without any traveling cost, also another problem is power sustainability in rural areas where national grid is not available hence the receiver of M-Pesa service fail to recharge their phones as due to power problem. Also senders are having problem on interest rate charged by mobile phone companies on M-Pesa services. The above mentioned problems which are being facing both senders and receivers of mobile money transfer services will be discussed to assess how these groups both sender and receiver of mobile money transfer services are satisfied with the service.
The prosperity and growth of MMTs in Tanzania depends to a large extent on the ability of mobile phone companies to provide a service that satisfies customers. Customer satisfaction is vital for ensuring high rate of adoption and continuous use of MMTs among mobile phone subscribers the mobile phone company apart from expanding the coverage of their network they need also to look on interest rate charged to customer who are sending money through mobile services. In order for customer to be satisfied with the use of mobile money transfer services the matter of quality and quantity come into consideration by viewing if associated factor with mobile money services to satisfy users both sender and receiver are being put in place. If the service is charged high interest during sending money it is the matter of fact to taken into consideration for senders if they satisfy with interest rate charged? Receivers of mobile money services also are having different problems including point to receive their service, as most of points are situated in town centre leaving people in rural areas to travel for long distance for a service which sometimes it does not reflect the value for money if compared with distance traveled, cost incurred during traveling and amount of money received.
To address this problem it is expected that mobile phone companies has to establish cash point at every village where their network coverage is available. Not only cash point but also renewable energy as the source of power has to establish in order to eliminate the problem of charging their phones. No enough studies have been conducted to assess the level of satisfaction with MMTs among mobile phone subscribers.
Many researches done in the past about mobile banking has been about the effect of mobile money services and their impact on the growth of economic development of the society at large. Satisfying customer is an essential element to stay in the business in the modern world of global competition. Customer satisfaction is a subjective measure. It is a measure of perception, not reality although when it come to reality, although when it comes to a happy customer, perception is more important than reality. Customer need to demand bigger, better, faster and improved service which results to improved customer’s expectation,(Bob E.Hayes, 1998).
Thus, there is a knowledge gap on the extent to which mobile phone subscribers are satisfied MMT services, contributing factors for customer satisfaction with MMT services and measures taken by mobile phone companies to ensure customer satisfaction with MMT services. It is thus, the objective of this research study to fill in that knowledge gap by focusing on MMT services offered by Vodacom (M-PESA) as a case study.
1.3 Objective of the study

The main objective of this study is to assess the level of customer satisfaction with Mobile Money Transfer (MMT) services in Tanzania by focusing on Vodacom’s M-PESA.


1.3.1 Specific objectives

The study will be guided by the following specific objectives:

1. To asses’ customers both senders and receivers of mobile money transfer (M-PESA) are satisfied with services

2. To identify contributing factors for customer satisfaction with M-PESA services

3. To examine measures taken to ensure customers are satisfied with M-PESA services

1   2   3   4   5   6   7


База данных защищена авторским правом ©shkola.of.by 2016
звярнуцца да адміністрацыі

    Галоўная старонка