Theoretical framework
SCHEME Nº 1
RELATIONSHIP BETWEEN OBJECTIVES OF THE THEORETICAL
FRAMEWORK AND THE CHAPTERS OF THE THEORETICAL FRAMEWORK
Objective 1:
Present the fundamentals of
customer service as a basis for
designing a customer service model
to improve the quality of after-sales
service.
Objective 2:
Conceptualize quality in after-
sales service.
Objective 3:
Specify the importance of
competitive advantage as a factor
for customer satisfaction and
service quality
Objective 4:
Characterize the study sector
Source: self made. 2000
1
CHAPTER I
CUSTOMER SERVICE
1.1 Client Definition
1.2 Satisfying Customer Needs
1.3 Factors Influencing Customer
Expectations
1.4 Basic Factors in Customer Satisfaction
1.5 Service
1.6 Customer service
1.7 Personnel in Contact with the Client
1.8 Customer Loyalty
CHAPTER II
QUALITY IN AFTER-SALES
SERVICE
2.1 Definition After-Sales Service
2.2 Elements of After-Sales Services
2.3 Quality in After-Sales Services
2.4 Communication to Strengthen
After-Sales Service
CHAPTER III
COMPETITIVE ADVANTAGE
3.1 Definition of Competitive Advantage
3.2 Elements of Competitive Advantage
3.3 Types of Activities
3.4 Competitive Support
3.5 Service-Utility Chain Model
CHAPTER V
CHARACTERIZATION OF THE
STUDY SECTOR
5.1 Telecommunications Concept
5.2 Mobile Telephony
5.3 Background of Entel SA Bolivia
5.4 Telecommunications Legal Framework
Theoretical framework 2

CHAPTER I

CUSTOMER SERVICE

1.1 CUSTOMER DEFINITION

J.M. Juran defines the client as “the people on whom the processes and
services impact, these people include both internal clients and external
clients.”10

1.1.1 Internal customer

The same author defines internal customers as “people or organizations that

are part of the company.”11

1.1.2 External Client

Raúl Gualda defines external client “as the person for whom we work, and who
expects to receive a good or service.”12

According to Peel, within the point of view of the external client, the same
individual is usually classified into different categories, ranging from belonging
to the company's "target audience", becoming a "potential client", then
"eventual buyer" and even become a “regular customer” or “user”.

In the following diagram No. 2 you can see this process:

10
JURAN, J.M. “Planning for Quality”. Edit Díaz de Santos SA Spain 1990
P. 6.
11
Ibid. Page 7.
12
GUALDA, Raúl. “Total Quality”. Alba Editions. Spain 1993. P. 20.
Theoretical framework 3

SCHEME Nº 2
CUSTOMER CATEGORIES

1st Phase 2nd Phase 3rd Phase

4th Phase

Target Potential Eventual Regular

audiences client Buyer Customer or
User

SOURCE: Own elaboration based on Malcom Peel. Op. Cit. Page 22.

From the previous scheme we have the entities classified as “target audience”,
which are not particularly interested in the service or product offered by the
company. The “potential customer” is interested, but has not yet decided to buy
or go to the service, the “potential buyer” has already decided and the “regular
customer” or “user” incorporates the consequences of the purchase into his or
her life. or going to the service.

The word “Customer” in our analysis will be used to encompass the individual or
company throughout this entire sequence from the stage of being in perspective
to that of being a regular Customer.

1.1.2.1 Collection of Information from External Clients

According to Berry, quality service is based on obtaining feedback and the way
in which it is used to understand the degree of customer satisfaction, know their
expectations and perceptions, to do so, he suggests the following information
collection methods:13

Traditional Surveys. They are carried out once the transaction with the
company is completed, to measure customer satisfaction and perceptions
while the experience is recent.
13
BERRY, Leonard. “Good Service is No Longer Enough.” Edit Rule. Colombia 1996.
P. 41-54.
Theoretical framework 4

Service Reviews. Periodic visits to clients to thoroughly evaluate their

satisfaction and identify priorities for necessary improvements.

Survey of new customers, less frequent customers and those who

are no longer there. They identify the consequences of the company's
performance in terms of service quality.

1.2 SATISFACTION OF CUSTOMER NEEDS

SCHIFFMAN assumes that a need “is a natural reason why an individual needs,
requires or demands something.”14 This concept could serve us in our analysis
as an indication that “something” of what a client is looking for may be
“something” of what we have to satisfy them.

Stoner suggests that needs are “an element in which satisfying them will be
rewarding not only for the individual, but also for those around him, in this case
he mentions the organization.” 15

Now, with what has been stated, we can deduce that each institution, especially
service institutions, can provide a type of satisfaction that meets the
expectations of its clients, not precisely satisfying basic needs, but rather those
interests or factors, of which They may be lacking with the competition and even
with the organization itself, in which, however, it is possible to discover needs
and deliver their satisfiers.

According to the author Pérez de Velasco, he mentions that clients basically

have three types of needs to satisfy:16
Those that are easily explained and that will constitute the objective
needs. When a customer approaches the technical service department, one
14
SCHIFFMAN, León G. " Consumer behavior". Edit Prentice-Hall. Mexico 1994.
Page 36.
15
STONER, James. " Service administration". Edit Limusa. Mexico 1994
P. 492.
16
PÉREZ DE VELASCO, José A. “Business Quality Management”. Edit ESIC.
Madrid 1994. P. 91.
Theoretical framework 5

of their objective needs will be for the device to be returned within a

specified period and in perfect working order for safe use.

Others refer to those “implicit” elements that are not specified by their
own evidence. They are aspects of the service that the client takes for
granted; They correspond to those needs that the client will undoubtedly
satisfy but do not feel the need to mention.

The third group of needs, rather expectations, which by their very nature
are mainly subjective and which will largely determine the customer's
perception of the capacity of the service received, since they need to be
satisfied.

1.3 FACTORS THAT INFLUENCE EXPECTATIONS

In Pérez's concept, there are various elements that contribute to shaping the
expectations that a client has when requesting a service; Among them the
following can be mentioned: 17

Previous experiences with the supplier.

Third party references, advertising.
Image, reputation and price.
Previous contacts.
Technological advances.
Aspects related to staff performance :
Ease of treatment, kindness.
Know how to listen to the client. Reliability.
Capacity for empathy to tune in to the expectations of the
customer.
Ability to adapt language in communications with the
customer.

17
Ibidem Page 94.
Theoretical framework 6

Availability of competent personnel in front of the service.

Technical capabilities for the performance of the work that
They convey confidence, seriousness, and security to the client.
Professionalism.
Promises made.

Finally Pérez affirms that all these factors, through their influence on
expectations, influence the level of quality achieved. This may be contradictory,
but from a person who is easy to deal with, who emphasizes easily and who is
technically qualified, the client expects a higher level of service and is more
18
demanding when judging the quality of the service they have just received.

1.4 BASIC FACTORS IN CUSTOMER SATISFACTION

According to Lele Sheth, there are various factors that affect customer
satisfaction levels. Quality is an extreme factor, for example for industrial
consumers. Marketing communication activities, such as advertising, promotion,
atmosphere inside stores, etc., play an important role as they create certain
expectations that may or may not be satisfied later. 19

It further notes that for many products/services, post-sales support services,

such as warranties, services, spare parts availability, training, etc.,
fundamentally affect consumer satisfaction levels. A company's cultural values
also have a powerful influence on customer expectations.20
The same author identifies four basic and distinctive factors: the product, sales
activities, after-sales services, and company culture. 21

1.4.1 Product (Service)

18
Ibidem Page 93.
19
LELE, Sheth. “The Customer is the Key.” Edit McGRaw-Hill. Mexico 1994. P. 68.
20
Ibid. P. 69.
21
Ibid. P. 69.
Theoretical framework 7

According to Lele Sheth, this factor has a key variable that determines the
ability of the product or service itself to affect consumer satisfaction levels: the
basic design of the product.22

The same author distinguishes two main ways in which the basic design of a
product or service affects customer satisfaction levels. First, it provides tangible
evidence to consumers about the company's core values. Second, it sets limits
23
on the company's maneuverability in terms of sales and support services.

1.4.2 Sales Activities

For Lele Sheth, the factors that affect customer satisfaction levels in sales
activities are the messages that refer to the variables that condition customers'
attitudes and expectations before and during the sale. The other factor is the
attitude of the personnel in contact in the sales experience that a customer has.
24

From the above it follows that by the time a customer is about to purchase a
particular service, he has already formed his own idea (an expectation) about
the needs, the specific benefits that the service could offer him and the degree
of provision and satisfaction that I could find in it. Consequently, how satisfied
you are later with the service will depend on how the pre-sale activities were
handled and how the customer was treated during the sales phase.25
The same author mentions that messages affect the attitudes and expectations
of consumers before the sale, through advertising, promotional plans, literature
about the product, the experience of other users and fundamentally through the
experience with the company. 26

22
Ibid. P. 70
23
Ibid. P. 70.
24
Ibid. P. 69.
25
Ibid. P. 70
26
Ibidem Page 71.
Theoretical framework 8

Likewise, this author points out that the attitudes of the staff are reflected in the
actions, the behavior of the different people with whom the client comes into
contact produces an impact on their level of satisfaction. For the customer to
perceive quality in care, companies must shape the actions and behavior of
their contact personnel through a training and reward system. 27

1.4.3 After-Sales Services

Lele Sheth indicates that support activities have expanded in recent years to
include, for example, toll-free calls, customer information and help services,
follow-up actions, together with training activities for staff, system of changes
and modification of products, etc. 28

Such services, in Sheth's view, become factors that raise the value of the
company's basic offerings with a view to achieving a high level of consumer
satisfaction. Thus, after-sales services constitute the litmus test of a company's
real intentions with respect to its customers. In fact, the consumer judges the
company based on their willingness to continue supporting the product.29

1.4.4 Company Culture

For Lele Sheth, corporate values are the organization's beliefs, norms, ways of
thinking, or its strategies, how it is willing to live and compete, or its global
culture. These constitute the elements with the greatest influence on the
product, sales activities and activities related to post-sales. 30

The same author states that if the company truly believes in the need to
maximize consumer satisfaction as the only means of ensuring the long-term
success of the organization, products, sales activities and elements of after-

27
Ibidem Page 71.
28
Ibidem Page 72.
29
Ibidem Page 72.
30
Ibid. P. 73.
Theoretical framework 9

sales service will be synchronized. and they will work together to deliver to the
client what the company aspires to from them. 31

1.5 SERVICE

For Horovitz, service is the interrelation of three fundamental elements: contact

personnel, customer and physical support. That is to say, the service is “the set
of benefits that the client expects, in addition to the basic service product as a
consequence of its price, image and reputation.”32

1.6 SERVICE TO THE CLIENT

For Peel, there are various definitions of “customer service”, however, this
expression is used in at least five senses:33

1. The activities necessary to ensure that the product or service is delivered

to the customer on time and in the correct amount.
2. Interpersonal working relationships between the supplier's employees
and the customer.

3. The provision of after-sales repair and maintenance services.

4. The service provided by the department that handles customer

complaints.

5. The company's order receipt department.

31
Ibid. P. 73.
32
HOROVITZ, Jacques. "The quality of service". Edit McGraw-Hill. Colombia 1995.
P. 2.
33
PEEL, Malcolm. "Customer service". Ediciones Deusto SA Spain 1990. P. 22.
Theoretical framework 10

According to the above in Gaither's concept, “customer service is a range of

activities that together create a relationship.34 , and it would include everything
covered by the five situations already mentioned by Malcom Peel.”

According to Buckner, the main activities of a company are the supply of

products or services, design, marketing, sales, purchasing, manufacturing and
the financial management that they entail. For example, the main activity in
Mobile Telephony companies is to provide communication. On the other hand,
secondary or customer service activities are typical of the service itself, such as
35
logistics and physical distribution, claims processing, and after-sales service.

In the same author's opinion, there are other activities that are directly related to
the main activity and shared with other areas, these include: providing
information to clients, before, during and after the sale; the sale/reception of
orders and billing; packaging and presentation; and credits, payment conditions
and collections. 36
1.7 THE STAFF IN CONTACT WITH THE CUSTOMER

For Hansen, the staff of a service company, through their direct contact with
customers, contributes directly to the good name, the growth of sales, and the
growth of the company's clientele. Contact with clients provides staff with direct
information about client reactions to the services offered.37

The personnel in contact must carry out a certain number of precise tasks,
therefore, they have an operational function, but they must also carry out these
tasks in the presence of the client, therefore, they have at the same time a
relationship role with the clientele, to which called relational function.38

34
GAITHER TUCCKER, Frances “Creative Customer Service Management”, Vol 13, No. 3,
1983. Page 123.
35
BUCKNER, Leroy, DORR, Eugene. “Quality Service.”Practical Course
Marketing. Vol. 10 . 2nd. Edition. Edit LEGIS.Colombia 1995. P. 19.
36
Ibid. P. 24.
37
HANSEN, Berntrand. “Quality Control, Theory and Application”. Díaz de Santos Editions.
Mexico 1990. Page. 491
38
EIGLIER, Pierre and LANGEARD, Eric. “Service”. Edit McGraw-Hill. Spain 1989
P. 54.
Theoretical framework 11

1.7.1 Staff selection

According to Kliksberg, personnel selection seeks to provide the organization

with suitable personnel capable of efficiently contributing to the achievement of
organizational objectives, through a process that includes curricular evaluation,
technical capacity and personal qualities. Determines a person's entry into the
organization or the person's promotion.39

The same author thinks that selection is an activity of choosing, of option and
decision, of input filtering and classification of that list of candidates for a certain
position.40 The selection process is observed through the following table No. 1:

TABLE Nº 1
THE SELECTION PROCESS
COMPONENTS ANALYSIS OF:
Analysis of documentation according to the
Curriculum evaluation requirements established in the job
specifications.
The knowledge
Technical capacity assessment The experience
The development potential

Qualification of individual attributes

Evaluation of personal qualities
necessary for the position

SOURCE: Own elaboration based on Kliksberg's theory.

1.7.2 Staff Motivation

39
KLIKSBERG, Bernardo. “Organizational Thinking”. Edit Paidos. Argentina. 1979.
Page 123.
40
Ibid. P. 124.
Theoretical framework 12

According to Horovitz, quality service means having motivated employees.

Motivated employees can make receiving the service a novelty for the
customer; such employees are the ones who initiate the emotional bond that
customers develop towards certain companies.41

For the same author, with motivation employees are prepared to take special
initiatives on behalf of customers and give them extra service, in this way the
company can demonstrate that it thinks about the individual needs of its
customers and therefore will achieve a considerable advantage over its
competitors.42

1.7.3 Staff training

On-the-job training is the teaching and learning process that allows a person to
acquire general criteria about a specific discipline, helping them to know in
depth what they do and its interrelationships with other related activities.43

According to the author Ivancevich, employee training is the systematic process

by which the behavior of employees is modified to promote the achievement of
the organization's objectives. 44

1.7.4 Performance evaluation

Berry assures that through this system, outstanding performances are

recognized, oriented to companies to establish rewards for efforts made, taking
into account the requirements of the personnel that are not only monetary but
also professional and other advancements.45

41
HOROVITZ, Jaque. Op. Cit. P. xxi.
42
Ibid. P . xxi.
43
MENDOZA, John. “Marketing of Services, a Practical Guide”Edit. Ventura.1991.Page.227.
44
IVANCEVICH, John. LORENZI, Steven. “Management, Quality and Competitiveness”. Edit Irwin.
Mexico 1996. P. 349.
45
BERRY, Leonard. “Good Service is No Longer Enough.” Edit Norma, Colombia 1996. P.
299-300.
Theoretical framework 13

The objective of performance evaluation is to establish the scope obtained,

identifying the improvements of each employee in order to recognize the results
and apply corrective measures for those who perform below the standard.46

1.8 CUSTOMER LOYALTY47

According to Larrea, loyalty implies a close and long-term relationship with the
customer. This link can bring a series of benefits and advantages for both the
company and the client.

Service user loyalty can be achieved by providing added value. This is because
currently the client does not act in the same way as he did before. For this
reason, their loyalty is not achieved with simple promotions or discounts that are
easily imitated by the competition and do not constitute sustainable competitive
advantages over time.

On the other hand, due to consumer loyalty, the company will work on the same
customer base, which generates the largest proportion of its income. This
implies that the company must identify the right customers and maintain them
through a relationship in which both parties benefit.

46
Ibid. P. 300.
47
LARREA, Pedro. “Quality of Service: from Marketing to Strategy.” Edit Diaz de Santos.
Madrid 1991. P. 343.
Theoretical framework 14

CHAPTER II

QUALITY IN AFTER-SALES SERVICE

2.1 AFTER-SALES SERVICE DEFINITION

Taking care of and maintaining customers is much more difficult than selling to
new customers. In fact, after-sales service is aimed at creating loyal customers
and is actually a pre-sales service.

After-sales service constitutes an essential part of the comprehensive service

offering in any company. General Motors of Argentina states that “after-sales
service is characterized by a high level of provision that has to exceed user
expectations in terms of response, customer service, provision and presentation
of the personnel who provide the service.” 48

PEEL has directed his research towards all types of interpersonal contact or
communication between organizations and their clients, especially in caring
social attitudes such as smiles on staff or offering help to the client, the art of
48
General Motors, Argentina , http://www.chevrolet.com.ar/htm1/queesposventa.htm
Theoretical framework 15

speaking and listening, respect and others; who will become, along with mail,
infrastructure and the use of the telephone, tools of after-sales service,
according to the organization that adopts them. 49

2.2 ELEMENTS OF AFTER-SALES SERVICES

2.2.1 Face to Face Contact

Peel Malcolm suggests that in fact positive attitudes in dealing with clients, such
as respect for people, friendly smiles, selfless help to the client or subtle
treatment with the “difficult” client, lead to good use of this element; On the
other hand, emotional attitudes, boldness with the client, or favoritism. They
distance the commitment to use this element. Each pattern will be implemented
according to the market culture. 50

Christopher Lovelock also suggests that direct contact with people is the
essence of after-sales service.51

According to Peel Malcolm “knowing how to listen is a skill in itself as difficult, at

least as knowing how to speak.”52

2.2.2 Telephone Contact

49
PEEL, Malcolm. Op. Cit Page 22.
50
PEEL, Malcolm, Op.Cit., Page. 60.
51
LOVELOCK, Christopher H. Op.Cit., Page. 491.
52
PEEL, Malcolm, Op.Cit., Page. 75.
Theoretical framework 16

Lovelock ensures that a customer on the other end of the phone can see with
what disposition he or she is being served by the company's employee or
operator.53

2.2.3 Claims Attention

Addressing a complaint undoubtedly leads to better communication with internal

and external customers; Peel, for example, assures that “one hundred
complaints received in the company is better than one compliment,” because
then it will be easier to realize where we are wrong and what can be done about
it.54

2.2.4 Facilities

Lamb Charles, for example, suggests that “better facilities” also help improve
customer service such as parking, notices and signage, shop windows and
furniture, uniforms, etc. that lead to the customer feeling “important” when
55
visiting an organization dedicated to improve your own physical image .

Lamb mentions that one of the main elements of customer service are: the
exterior of the buildings, the patios and gardens and the reception are elements
that can make the customer's stay in the company as pleasant or unpleasant as
possible.56

SCHEME Nº 3
CHARACTERISTICS OF AFTER-SALES SERVICES

Face to Face
Contact

53
LOVELOCK, Christopher H. Op.Cit., Page. 493.
54
PEEL, Malcolm, Op.Cit., Page. 63.
55
LAMB, Charles. " Customer service". Edit Prentice-Hall. Colombia 1995.Page. 348.
56
Ibid. P. 348
Theoretical framework 17

Attention Telephone
to Claims After-Sales
After-Sales Contact
and Service
Complim Service
ents

Facilities

SOURCE: Own elaboration based on the theory mentioned by Lamb, Charles and Lovelock .

2.3 QUALITY IN SERVICES AFTER-SALE

2.3.1 Definition

Berry points out that quality in after-sales services is not what a company puts
into a service, it is what the customer obtains from it and what they are willing to
pay for, which is why they only pay for things. that are useful and that add some
value to them. Customers do not buy services, but solutions to their problems,
they buy the expectations of benefits that they think a company will offer them.
A company gives them quality when it meets those expectations, solves their
problems and brings them benefits. 57

According to Cottle, for customers to pass a favorable judgment on a

company's after-sales services, the most difficult part is to make them perceive
everything that the company does for them, in other words, to recognize what
the company does. 58

Another useful idea about the importance of after-sales service for the type and
quality of service a customer obtains is the distinction between types of service

57
BERRY, Leonard. Op. Cit. P. 2.
58
COTTLE, David. “Customer-Centered Service”. Edit Diaz de Santos. Madrid 1991
P. 27.
Theoretical framework 18

quality. The type of after-sales service that a customer receives can consist of
two elements: 59

Technical Quality: Refers to "what" the client receives in their

interactions with service companies. It can be measurable like any product
and forms an important element in any customer evaluation of the service.

Functional Quality: Functional quality refers to "how" the technical

elements of the service are transferred. Two important components of the
way the technical elements of a service are delivered are the process and
the people who participate in the operation of the system. Functional quality
may be less amenable to objective measurement. However, it forms an
important element in any customer evaluation of a service.

Functional quality consists of several elements: employee attitudes; the

relationships between them; the importance of employees who have contact
with customers; the appearance of service personnel; the general accessibility
of services to clients; the general propensity of staff towards service.60

2.3.2 Dimensions of Service Quality After-Sales

According to Berry et al., clients rate the services they receive through a mental
evaluation in which they contrast what they receive with what they expected.
These expectations can be divided into five dimensions:61

The reliability
Safety
The tangible elements
The responsiveness
Empathy
59
www.gestiopolis.com .P . 6. 2001
60
Ibidem.Page. 8
61
BERRY, Leonard; BENNET, David BROWN, Carter. "Quality in the service". Edit Rule.
Colombia 1994. P. 27.
Theoretical framework 19

As a company analyzes each of these dimensions, it will determine how it can

demonstrate its capabilities and abilities in each of them, so that its customers
can clearly receive them.
2.3.2.1 Reliability

According to Berry and others, reliability implies performing the promised

service with formality and accuracy. This involves keeping the promise made to
customers about the service the company offers. 62
The same authors indicate that some aspects that allow for customer reliability
are: delivery of the service in the time promised, careful preparation of invoices,
customer contact personnel and operational support personnel must have the
63
skills necessary to demonstrate full mastery of what they are doing.

The moment a company loses reliability, it becomes very expensive to correct

the errors made and the negative effect on customer trust in the institution.

2.3.2.2 Security

According to Cottle, security represents customers' feeling that problems are in

good hands. It includes the knowledge and caring attitude projected by the staff
and their ability to generate “faith” and trust. 64

The same author maintains that when customers deal with contact personnel
who are both pleasant and knowledgeable, they feel reassured that their
queries are answered by the appropriate person.65 .

62
Ibidem Page 28.
63
Ibidem Page 28.
64
COTTLE, David. Op. Cit.,Page. 38.
65
Ibidem Page 38.
Theoretical framework 20

But it also states that security also implies credibility, which in turn includes
integrity, reliability and honesty. A very important aspect to provide security to
the client is the courtesy with which contact personnel must respond.66

2.3.2.3 Tangible Elements

In Eiglier's concept, tangible aspects are the visible part of the service offer,
among them we can mention: facilities, equipment, appearance of contact
personnel, newsletters, brochures and other tangible products.67

According to this author, in the case of services, clients tend to look for tangible
things associated with the service that help them judge it, due to the fact that
services are achievements rather than objects. 68

On the other hand, the same author states that tangible things influence the
perception of quality in after-sales service in two ways: firstly they give an idea
of the nature and quality of the service itself, secondly they can directly affect
the perception of service quality. 69

2.3.2.4 Answer's capacity

For Cottle, responsiveness is the attitude that staff show to help customers and
provide prompt service. 70

But he also points out that accessibility is also part of responsiveness; it refers
to the possibility that customers have to contact the company and the ease with
which they can achieve this. This dimension takes into account: the ease of
establishing contact with the company via telephone; the ease of contacting the

66
Ibidem Page 39
67
EIGLIER, Pierre. “Servuction”. Edit McGraw-Hill. Mexico 1995. Page. 39.
68
Ibidem Page 39.
69
Ibidem Page 39.
70
COTTLE, David. Op. Cit. P. 40.
Theoretical framework 21

staff at times convenient for the client; the waiting time at reception; the location
of offices convenient for clients.71

Therefore, Cottle states that responsiveness involves letting the customer know
that their queries, complaints and suggestions are appreciated and are
important to the organization. 72

2.3.2.5 Empathy

Cottle states that this dimension is the most difficult to qualify, because its
characteristics are completely qualitative for its measurement. 73

In this regard, this author points out that empathy means that the company is
willing to offer its customers personalized care and attention. It goes beyond
simple courtesy, although courtesy is an important part of empathy, as well as
safety. 74

He further notes that empathy is best achieved through good communication,

which means keeping customers informed using language they can understand;
It also means listening to customers. Good communication includes a detailed
explanation of the service and its cost. 75

Listening to and understanding the client implies: 76

Know your specific requirements
Provide individualized attention without rushing
Visually recognize regular customers and call them by name
Know the client's sector of activity.
Scheme No. 4 shows a summary of the five dimensions of the quality of the
after-sales service identified as the most important for this research work,
according to the concepts cited by the authors mentioned above.

71
Ibid. P. 41.
72
Ibid. P. 41.
73
Ibid. P. 42.
74
Ibid. P. 42.
75
Ibid. P. 42.
76
Ibid. P. 43.
Theoretical framework 22

SCHEME Nº 4
DIMENSIONS OF THE QUALITY OF AFTER-SALES SERVICES

RELIABILITY

Promised Service
Formality
Accuracy

TANGIBLE SECURITY
ELEMENTS
Staff at Cantacto
Facilities Attitude of
Equipment Quality in the Attention
Appearance of service Ability to
Personnel in Generate Trust
Contact
After-Sales
and Credibility
Newsletters,
Brochures

ANSWER'S EMPATHY
CAPACITY
Personalized
Staff Attitude Attention
Provide Fast Service Good
Ease of Contact with communication
the Company Keep Customers
Wait time Well Informed
Office Location Listen to
Customers

SOURCE: Own elaboration based on the theory mentioned by Cottle, Berry and Bennet.
 Theoretical framework 23

2.4 COMMUNICATION TO REINFORCE CUSTOMER SERVICE

2.4.1 The Communication Process

For Leon Schiffman, communication is the only tool that marketers use to
persuade consumers to act in the desired way. Communication takes many
forms such as: verbal, visual, it can also be symbolic.77

SCHEME N° 5
COMMUNICATION PROCESS

Transmi Coding Message

Message Decoding Receiver
tter

Noise

Feedback Answer

SOURCE: Kotler, Phillip and Armstrong, Gary. "Marketing". Edit Prentice-Hall. Mexico 1996. Page 555

The communication process has several elements that are explained below:78

Transmitter. He is the one who decides what message he wants to

create and then decides who it should be sent to, then he must encode the
message so that its meaning can be interpreted by the audience to which it
is directed.

Receiver. It is the one who decodes the message they receive according
to their experience and personal characteristics.

77
SCHIFFMAN, Leon. Op. Cit. P. 283.
78
KOTLER, Phillip and ARMSTRONG, Gary. "Marketing". Edit Prentice-Hall. Mexico
1996. Pages. 555-557.
Theoretical framework 24

Media and Message. The message is the information that is sent to the
receiver and the medium is the channel through which the sender sends
the message to the receiver.

Answer. It is the message that the receiver who will become the sender
sends to the sender who became the receiver.

Feedback. It is the response that the receiver gives to the sender to

know the receiver's understanding of the first message.

Noise. Noise is the barriers that communication can have when receiving
the message, as happens with telephone static.

2.4.2 Communication Flows

Regarding the addresses of message flows, Goldhaber mentions:79

Descending Communications. Flowing from superiors to subordinates,

the problems that affect this type of organization are: relying on broadcast
methods and hardware, as well as message overload.

Ascending Communications. Messages from subordinates to superiors

to ask questions, provided feedback and making suggestions.

Horizontal Communications. Messages between people who are at the

same level of authority have the purpose of
task coordination, problem solving, information sharing, conflict resolution.
There may be limitations such as: rivalry, specialization, demotivation.

Transversal Communications. They occur between different areas and

hierarchies, they do not flow following scalar or functional lines, they

79
GOLDHABER, Gerald. “Organizational Communication”. Edit Diana. Spain. 1990.
P. 18-20.
Theoretical framework 25

streamline communication and are more exact but depend on organizational

communication to generate susceptibilities.

CHAPTER III

COMPETITIVE ADVANTAGE
Theoretical framework 26

3.1 DEFINITION COMPETITIVE ADVANTAGE

Pérez de Velasco points out that competitive advantage always comes from
achieving high levels of customer satisfaction, which may require in some cases
specific actions that, since they are not repetitive, will not be included in the
80
procedures that are part of the quality assurance manual. .

According to Michel Porter, “a lot is known about what competitive advantage is

and how certain actions create or destroy it. But much less is known about why
a company exercises good options rather than bad options when searching for
the basis of competitive advantage and why some companies are more
aggressive in pursuing them.81

3.2 ELEMENTS OF COMPETITIVE ADVANTAGE

The success of a company depends on its ability to build a sustained

competitive advantage, that is, according to author Joseph Guiltinan, “…to
deliver to customers what they want, more effectively at a lower cost than the
competence"82 . Therefore, positions and sources of advantage that lead to
desired performance outcomes must be identified. The following diagram shows
this process:

SCHEME N° 6
ELEMENTS OF COMPETITIVE ADVANTAGE

SOURCES OF POSITIONAL PERFORMANC

SOURCES OF POSITIONAL PERFORMANC
ADVANTAGE ADVANTAGES E RESULTS
ADVANTAGE ADVANTAGES E RESULTS
Superior customer Satisfaction
Higher skills Superior customer Satisfaction
Higher skills value Loyalty
value Loyalty
Top Lower relative Market share
Top Lower relative Market share
costs Cost
Resources costs Cost
Resources effectivenes
effectivenes
s
80
PEREZ DE VELASCO, José A. Op. Cit. Page 36. s
81
PORTER Michel, “The Competitive Advantage of Nations”, Edit. Vergara, Buenos Aires,
Argentina, 1991, Page 59.
82
GUILTINAN Joseph, “Marketing Management.” Edit Mc Graw-Hill, Colombia, 1994.
P. 113
Theoretical framework 27

Investing
Investingprofits
profitstotomaintain
maintain
an advantage
an advantage

SOURCE : DAY Geirge, WENSLEY Robin “Assessing Advantage” Page. 76.

3.3 TYPES OF ACTIVITIES

According to Chacholiades, within each category of primary or support

activities, there are three types of activity that play a different role in competitive
advantage: 83

Direct activities - These are the activities directly involved in creating

value for the buyer, such as assembly, machining, parts, sales force
operation, advertising, etc.

Indirect activities - are the activities that make it possible to perform

activities on a continuous basis, such as maintenance, programming,
facility operation, sales force management, etc.

Quality assurance - These refer to those activities that ensure the

quality of other activities, such as monitoring, inspection, testing, review,
adjustment and reworking.

All companies have the three types of activities mentioned, which are not only
present in primary activities, but also in support activities.

It follows then that a company will be able to create and maintain a comparative
advantage in relation to its competition to the extent that the company develops
an activity strategically in any of the three types of activities mentioned.

83
CHACHOLIADES, Militiades. "International economy". Edti. McGraw-Hill. Colombia 1998
P. 23.
Theoretical framework 28

In Chacholiades' concept, since none of the activities function independently,

the company that has the capacity to coordinate them efficiently in a way that
allows it to reduce the cost or create a differentiation in relation to the
competition, will have managed to constitute with this a competitive advantage.
84

According to Martínez and Manríquez, “to achieve competitive advantages,

strategy formulation must focus on the client to give added value through a
constant quality service and not on traditional competition.”85

3.4 COMPETITIVE SUPPORT

3.4.1 Model

For author Timms, a model is “any representation of reality, a replica, a verbal

scheme, a diagram, that usefully reproduces a real situation or state.”86

According to Brian, a model is the explicit interpretation of what one

understands about a situation, or just one's ideas about that situation. It can be
expressed in symbols or words but in essence it is a description of entities,
processes or attributes and the relationships between them. It can be
87
prescriptive or illustrative, but above all it must be useful.”

84
Ibidem Page 23.
85
MANRRIQUEZ PICASO Luis and MARTINEZ VILLEGAS Fabián, “Service Engineering”.
Edit Mc Graw-Hill, Mexico, 1991. P. 37.
86
TIMMS L. Howard. “Management Decision Systems” Edit. The Athenaeum. Argentina 1970.
P. 100.
87
BRIAN, Wilson. “Systems: Concepts, Methodologies and Applications”. Edit Limusa.
1993. Page 28
Theoretical framework 29

3.4.2 Model Features

According to Timms, the characteristics that stand out from the models as a
representation of reality are the following:88

a) Items

They are represented as “the components or participants of each model and

could be defined as that part of the model that is related to the global objective
and other elements defining the administrative process.

b) Variables

They are the parts of the models that can be measured or are susceptible to
measurement, which change in amplitude or intensity.
c) Relationships

Relationships are the links that exist between one element of the model and
another; these relationships are represented in administration as an infinite
number of possibilities.

d) Goals

It is what the model is designed for, it is what we want it to do, and it can be
prediction, simulation, analogy; as long as it represents something of reality.

e) Indicators

They are a series of signals that allow us to appreciate the level of some
variable, they are the output of the model as such, according to Fernández “you
can have indicators in all areas of the organization, including external ones.”89
88
TIMMS L. Howard. Op.Cit., Page. 26.
89
FERNÁNDEZ, Guillermo. Seminar: ”Management Control” IBEE; October 1994.
Theoretical framework 30

3.4.3 Model Classification

Ackoff distinguishes three forms of models:90

a) Iconic

This implies that the model is a miniature version, although sometimes an

application, of the actual item, and the relevant properties of the actual item are
represented by the properties themselves, but usually with a change in scale. In
this way, a replica is built with which it is expected to reproduce the behavior of
the original, quite reliably.

b) Analogical

A model of quite different physical appearance can be constructed that is

nevertheless expected to reproduce the representative behavior. More
generally, an analog computer can be used to model a wide variety of
situations, obtaining the values of physical variables by measuring voltages at
appropriate points in the analog network.

c) Analytical

Mathematical or logical relationships can be developed in a way that represents

the physical laws that govern the behavior of the situation under investigation.

This classification is a useful distinction, covering those models of physical form

or that can be controlled quantitatively, to this end three other forms of
classification mentioned by the author Timms are added. 91 , which are
described below:
90
ACKOFF, cited in BRIAN Wilson's book. Op. Cit., Page. 28
91
TIMMS L. Howard. Op.Cit., pp. 100 – 102.
Theoretical framework 31

d) Verbal Model

Everyone knows the verbal model. Any statement in words that describes a real
situation, abstracting only its important aspects, is a model of that situation.
Businessmen continually use verbal models in the everyday discussion of their
problems.

This model is useful and in many cases little less than indispensable. Its
weaknesses make it useless as a hypothesis, because a verbal hypothesis is
impossible to state.

e) Mathematical model

All the flaws of the verbal model are largely corrected in the mathematical
model. It is extremely precise. It can be tested more easily, it can be given the
form of an explicit decision rule; Mathematical language lends itself better to the
explanation of complex phenomena. This model is the same as that observed in
the previous classification with the name analytical.

f) Physical Model

In addition to verbal and mathematical models, there are other types of models.
Not everyone allows prediction. However, they help make decisions. In the
previous classification we find this model with the name iconic.

g) Schematic Model

All forms of diagrams, drawings, flowcharts and graphs are model which, taken
together, are sometimes called schematic models. They are models in the
sense that they represent and explain something. A graphical representation of
Theoretical framework 32

some phenomenon is a model because it describes how the phenomenon

works; this model corresponds to the analogue described above.

h) Systems Model

Systems can take many forms. A verbal model of a system can be developed,
then improved by converting it into a schematic model, then perfected by
transforming it into a mathematical model. A system model can be composed of
a heuristic process expressed by a decision tree.

For the purposes of this research, the model adopted for the study will be the
schematic one or also known as analogue, considering it appropriate for the
development of the Customer Service Model, the main objective of the
development of this work.

3.5 SERVICE-UTILITY CHAIN MODEL

The service-profit chain assigns strong values to moderate measures, relating

profits, customer loyalty, and customer satisfaction to the value of services
created by satisfied, loyal, and productive employees.92

For Lovelock, the service-profit chain establishes relationships between profits,

customer loyalty and employee productivity. The links in the chain are the
following:93

3.5.1 Leadership is the Base of the Chain

Leaders who understand the service-profit chain develop and maintain a

corporate culture focused on service to customers and their co-workers.94

92
LOVELOCK, Christopher H. “Marketing of Services”. Edit Prentice-Hall. Mexico 1997.
P. 582.
93
Ibid. P. 582-583.
94
Ididem. Page 587
Theoretical framework 33

Leaders spend a lot of time with their customers and employees, experiencing
their companies' service processes, while listening to staff's suggestions for
improvements. They care about him and spend a lot of time selecting him,
following in his footsteps, and recognizing his efforts.95

3.5.2 Internal Quality

The internal quality of a work environment contributes largely to employee

satisfaction; Internal quality is measured by employees' feelings toward their
jobs, their colleagues, and their companies. What do service employees value
most in their jobs? While the data is preliminary at best, it increasingly points to
the ability and authority of service employees to achieve results for their
customers.96

Internal quality is also characterized by the attitudes that people have toward
each other and by the way in which they provide services to each other within
the organization.97

3.5.3 Employee Satisfaction

According to author Desatnick, customer-oriented companies (internal and

external) want their employees to learn, grow with them, and feel satisfied,
offering them not only tangible rewards such as high salaries, but intangible
rewards such as better development. personal and growth in the company.98

3.5.4 Employee Loyalty99

95
Ibid. P. 587.
96
Ibid. P. 586.
97
Ibid. P. 586.
98
DESATNICK,Robert. “How to Keep Your Customers”. Edit Legis. Colombia 1989. P. 15
99
LOVELOCK, Christopher. Op. Cit. P. 587.
Theoretical framework 34

Employee loyalty is linked to productivity, which contradicts the assumption that

successful service providers should be promoted to positions with greater
supervisory responsibilities, or moved to a larger business unit.

Dynamic service organizations require some level of person turnover. However,

when calibrating desired turnover levels, it is important to take into
consideration the total cost of losing key service providers including the costs of
lost sales and productivity and the additional costs of hiring, selection and
training.

3.5.5 Employee Productivity100

For Lovelock, the ultimate measure of employee productivity is customer

satisfaction. This measure must be combined with others related to quantity, in
order to determine the total production of the service organization.

3.5.6 Customer Satisfaction

Customer satisfaction can be defined as “the feeling you get that a service met
your expectations.” “Customer satisfaction is the key to ensuring long-term
profitability and keeping customers happy is the job of everyone in the
company.” 101

3.5.7 Customer Loyalty

According to Guiltinan, customer loyalty is the cornerstone of successful

service. It influences employee loyalty. Loyalty is achieved when a customer
continues purchasing goods or services from the same company over time. To
achieve customer loyalty, customer satisfaction is the main reason.102

100
Ibid. P. 588.
101
LELE, Milind; SETH, Jagdish.” The Customer is the Key.” Edit Diaz de Santos. Madrid 1989.
P. 2.
102
GUILTINAN, Joseph; GORDON, Paul; MADDEN, Thomas. " Marketing management".
Edit McGraw-Hill. Colombia 1998. P. 183.
Theoretical framework 35

For Welington, satisfied customers feel good only when their current needs are
being met and only as long as they perceive that a supplier values them.
Committed customers want more than just a temporary hook; “They want to
develop a long-term relationship with a supplier that understands and meets
their individual needs and discriminates between customers who have been
genuinely loyal over a period and newcomers who have not yet demonstrated
loyalty.”103

103
WELINGTON, Patricia. “How to Provide Comprehensive Customer Service.” Ed. McGraw-Hill.
Colombia 1998. P. 55.
Theoretical framework 36

CHAPTER IV

CHARACTERIZATION OF THE STUDY SECTOR:

TELECOMMUNICATIONS AND TELEPHONY MOBILE

4.1 TELECOMMUNICATIONS CONCEPT

The International Telecommunication Union ITU defines telecommunications as

“any transmission, emission or reception of signs, signals, writings, images,
sounds or information of any nature by wire, radioelectricity, optical means and
other electromagnetic systems.”104

4.2 TELEPHONY MOBILE

According to the ITU, the concept of a cellular radio network was invented by
Bell Laboratories in the United States in 1947, but after 35 years the technology
made it possible to implement the cellular concept, set up the first analog
network and manufacture the first equipment. 105

The same report states that previously there was a radio-telephony service that
differs from the current cellular telephone service, in that the latter uses
switches based on microcomputers that can follow a moving object, through
power measurements through the numerous antennas that make up the cellular
system and change the frequency according to the cell in which the user is
located. Each cell requires an antenna that operates in the UHF band (the same
used for television channels). At a power level barely sufficient to cover the cell
area. The antennas are connected (by microwave, fiber optics, etc.) to a mobile
switching center (MCC), which in addition to having the function of switching,
must also follow the users. When the user moves from one cell to another, the

104
ITU “Information Telecommunications and Development”. April 1986. Page 4
105
Ibidem Page. 7
Theoretical framework 37

CCM must deliver the call from the original antenna to the appropriate antenna.
This process is known as “hand off”. This hand off can also occur when the user
is not scrolling; This is done to share the charge between cells. This hand off is
caused at peak times of cellular traffic: when a cell approaches the maximum
number of calls it can support, it delivers a number of calls to an adjacent cell,
regardless of the user's state. 106

4.2.1 Cellular System107

In a very general way, it can be said that a cellular system is made up of several
elements: the cellular exchange, the coverage cells and the clients' cellular
devices.

Once the customer is subscribed to the company that manages the cellular
system and the device is programmed with the appropriate technical
parameters, then the cell phone is capable of sending a signal to the cellular
exchange, which identifies it as a customer and authorizes it. execute
communication.

Immediately, based on the data collected, the center identifies whether it is a

call to a cell phone, a landline or if it is international. The above allows the
signal to be channeled to the corresponding telephone exchange and
communication becomes effective.

4.2.2 Cell108

A cell is made up of a group of fixed transmitters and receivers that serve as a

link between the cellular exchange and the user and that, from this union, allow
the user to generate or receive a call. A cell is capable of serving in a shared
manner a large number of users located within the coverage area.

106
Ibidem Page 7
107
Ibidem Pages. 7-11
108
Ibidem Pages. 7-11
Theoretical framework 38

4.2.3 Programming109

Programming a cell phone consists of entering a series of parameters

necessary for the proper functioning of the device.

Subsequently, said information is included in the cellular system database,

allowing the user to make or receive calls from that moment on.

4.2.4 Activation110

Activation is a process that is carried out in the presence of each client, since
once all the information is included in the cellular exchange database, the user
immediately makes a call that considers their phone enabled.

4.3 ENTEL MOBILE

Entel Móvil receives the support and experience of TIM (Telefónica Móvil de
Italia), the largest mobile telephone operator in Italy, which currently has around
7 million subscribers, representing one of the highest percentage rates of
customers in cellular telephony under the same company throughout the world.
111

Entel Móvil's digital technology mainly uses D-AMPS (Digital and Analogical
Movil Portable Service) digital technology with the aim of offering a more
complete service and a greater number of additional services that are only
possible with digital technology. 112

The incursion of a new competitor into the cellular telephone market has led
Entel Móvil to introduce GSM (European Mobile Digital Telephony System)
109
Ibidem Pages. 7-11
110
Ibidem Pages. 7-11
111
Ibid.
112
Ibid.
Theoretical framework 39

technology, whose success lies in the features and services it offers. You can
talk from anywhere on the planet, receive financial information or information on
road conditions, connect to the Internet, send faxes, receive or send photos,
and exchange text messages. Furthermore, in digital phones the line is not
linked to the device but to the SIM card, which works with any phone, so in the
event of a breakdown you only have to change the card to another mobile
phone to continue talking. In the analog system, on the contrary, the line is
linked to the telephone, so if it breaks down the service is cut off. One of the
attractions of GSM telephony is roaming: making and receiving calls abroad.

4.3.1 Customer Services Provided by Entel Mobile

Entel Móvil offers its cell phone services to a significant population of users
through the following plans:

New Business Rate Plan (Medium), with 12,000 users

Large Business Rate Plan, with 7,700 users
Business Rate Plan (X-Large), with 2,200 users
Prepaid plan: hello digital and hello easy, with 90,000 users

Currently, Entel Móvil provides the following value-added or support services:

113

Message Boxes - which allows subscribers to save in a box all the

messages that the user receives while their phone is turned off or out of
coverage.

Conference Call or Multi-conversation.- This service allows you to

establish up to six simultaneous conversations, becoming a very useful
tool for holding business meetings by phone.

113
Ibid.
Theoretical framework 40

Call Waiting - This service allows the subscriber, during a conversation,

to know if they have a second call and answer it if they wish.

Consultation Call - allows the user during a conversation to be able to

put the person on hold and call another to ask a question, and then
return to the first call.

Call Transfer - This service allows you to transfer received calls to a

landline or another mobile phone. This service can be used when the
phone is turned off, without battery or outside the coverage area.

Call Forwarding - allows a subscriber who is not at his or her office or

home to divert calls that come to his or her telephone to another
telephone number.

Call Restriction - This service allows the subscriber to prevent

unauthorized calls from being made from their mobile phone when
different people have access to it.

Detailed Billing - the information includes the numbers called, the time
and duration of the call, as well as its cost. The invoice is also delivered
to your home.

Abbreviated Dialing - which allows the subscriber to dial telephone

numbers using two-number codes on their keyboard, turning the
telephone into a kind of personal phone book.

Toll Free - toll-free line 0800, which allows the customer to make any
query 24 hours a day.
Theoretical framework 41

4.4 LEGAL FRAMEWORK OF TELECOMMUNICATIONS114

On July 5, 1995, the new Law No. 1632 of Telecommunications in the country,
which establishes the rules to regulate public services and telecommunications
activities.

The objectives of said law are:

Access to telephone service for the majority of the national population.

Low installation costs for such access.
Access to telephone, cell phone, fax service, etc., for residents of
marginal areas and departments outside the main axis.

It is within this framework that the SITTEL Telecommunications

Superintendency is created, the body of the SIRESE Sector Regulation System,
created by Law No. 1600 of October 28, 1994, which regulates the
telecommunications service, headed by the Superintendent of
Telecommunications.

The regulation of the telecommunications sector is the responsibility of the

Executive Branch, which establishes general standards to be applied by
SITTEL.

SITTEL is the legal body in charge of granting concessions through the signing
of concession contracts, under the bidding procedure and provision of
telecommunications services to the public; and licenses for telecommunications
activities that make use of electromagnetic frequencies.

The concessions will have a maximum term of 40 years, established by article

134 of the Political Constitution of the State; while the licenses will have a
maximum term of 20 years.

114
Telecommunications Law of July 5, 1995.
Theoretical framework 42