FACTORS AFFECTING CONSUMER SATISFACTION ON

INTERNET SERVICE PROVIDER

By
Shanti Bhandari
Exam Roll No: 21938/18
TU Registration No: 7-2-20-498-2018

A Summer Project Report Submitted to

Faculty of Management, Tribhuvan University
in Partial fulfilment of the requirements for the Degree of
Bachelor in Business Administration

at the
Bhaktapur Multiple Campus
Tribhuwan University

Bhaktapur
December/ 2022
 STUDENT DECLARATION

This is to certify that I have completed the Summer Project entitled “( Factors Affecting
Consumer Satisfaction on Internet service Provider )”under the guidance of
“( Jagateswori Koju)” in partial fulfilment of the requirements for the degree of
Bachelor of Business Administration at faculty of Management, Tribhuvan University.
This is my original work and I have not submitted it earlier elsewhere.

Date: December ,2022 Signature:

Name: Shanti Bhandari

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 CERTIFICATE FROM THE SUPERVISOR

This is to certify that the Project Work titled “ Factors Affecting Consumers
satisfaction on internet service provider” is an academic work done by “Shanti
Bhandari” submitted in the partial fulfillment of the requirements for the degree of
Bachelors of Business Administration at faculty of Management, Tribhuvan University
under my guidance and supervision. To the best of my knowledge, the information
presented by him/her in the summer project report has not been submitted earlier.

jagateshwori koju

Designation: Teaching Assistant

Date:December,2022

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 LETTER OF APPROVAL

This Summer Project entitled “Factors Affecting Consumer Satisfaction On

Internet Service Provider” has been submitted by “Shanti Bhandari” for the final
examination to the faculty of Management, Tribhuvan university, in the fulfillment of the
requirement for the degree of Bachelor of Business of Business Administration (BBA).
The research sub -committee of this campus has found this Summer Project report
satisfactory in scope and quality and has therefore forwarded for examination.

………………..

Dr. Gyani Malla Shah

Chairman

BBA Research sub Committee

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 ACKNOWLEDGEMENT

This study has been prepared for the partial fulfillment of Bachelors of Business
Administration (BBA). It is a privilege to complete this study entitled ‘ Factors
Affecting Consumer Satisfaction On Internet Service Provider’.It is a pleasure to
express my sincere gratitude to (jagateswori Koju) Mam for her support throughout the
research process. She had devoted her valuable time and efforts in patiently guiding us to
complete this project. Her wide knowledge and logic way of thinking have created a great
value to us. Besides, her understanding, encouraging and personal guidance has provided
the good basis for this present form of project report. Therefore, I would like to convey
my special thanks to her for her valuable inputs.

I owe a deep sense of gratitude to our honorable Campus chief Dr. Krishna Prasad
Pokharel, Director Tulsi Ram Ghemosu, and Head of the BBA Research Sub
Committee Dr. Gyani Shah Malla for extending their cooperation and guidance in this
report creation. Special thanks , to all of my friends in BBA 7th semester, who gave me
useful material, response and experience to conduct this study . I would like to express
my grateful thanks to the respondents, who participated in filling the questionaire and
provided the valuable information for this study. I greatly thank my dearest parents, who
encouraged me to extend my research. With this help and support, I have been able to
complete this works.

Shanti Bhandari

December, 2022

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 Table of Contents
STUDENT DECLARATION.............................................................................................II
CERTIFICATE FROM THE SUPERVISOR.....................................................................II
LETTER OF APPROVAL................................................................................................III
ACKNOWLEDGEMENT.................................................................................................IV
LIST OF TABLES...........................................................................................................VII
LIST OF FIGURES........................................................................................................VIII
ABBREVIATION.............................................................................................................IX
CHAPTER I.......................................................................................................................1
INTRODUCTION.............................................................................................................1
1.1 Context Information..............................................................................................1
1.2 Purpose of the Study.............................................................................................3
1.3 Significance of the study.......................................................................................3
1.4 Limitations of the study........................................................................................4
1.5 Literature Survey...................................................................................................4
1.5.1 Theoretical Literature Review............................................................................4
1.5.2 Empirical Review...............................................................................................8
1.6 Research method........................................................................................................9
1.7 Research design........................................................................................................10
1.7.1 Population and Sample.....................................................................................10
1.7.2 Natures and Sources of Data.............................................................................10
1.7.3 Tools used for Data Analysis............................................................................11
CHAPTER II....................................................................................................................13
DATA PRESENTATION AND ANALYSIS.................................................................13
2.2 Data presentation and Analysis................................................................................14
2.2.1 Distribution of Gender......................................................................................15
2.2.2 Distribution of age group..................................................................................16
2.2.3 Distribution of education..................................................................................17
2.2.4 Distribution of income......................................................................................19

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 2.2.5 Distribution of occupation................................................................................20
2.2.6 Uses of current ISP...........................................................................................22
2.3 Discriptive analysis..................................................................................................23
2.3.1 Responses to Brand...........................................................................................23
2.3.2 Responses to price............................................................................................24
2.3.3 Reponses to speed.............................................................................................25
2.3.4 Responses to availability..................................................................................26
2.2.5 Reponses to satisfaction on ISP........................................................................27
2.4 Findings....................................................................................................................28
2.5 Discussion................................................................................................................29
CHAPTER III..................................................................................................................30
CONCLUSION AND ACTION IMPLICATION.........................................................30
3.1 Summary..................................................................................................................30
3.2 Conclusion...............................................................................................................31
3.3 Action Implications..................................................................................................32
REFRENCES.......................................................................................................................
APPENDIX...........................................................................................................................

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 LIST OF TABLES

Table: 1 Distribution of Gender

Table: 2 Distribution of Age group

Table: 3 Distribution of Education.

Table: 4 Distribution of Income

Table: 5 Distribution of occupation

Table: 6 Uses of current ISP

Table: 7 Responses to Brand

Table: 8 Responses to price

Table:9 Reponses to speed

Table:10 Responses to availability

Table: 11 Reponses to satisfaction on ISP

8
 LIST OF FIGURES

Figure : 1 Distribution of Gender.

Figure : 2 Distribution Of Age group

Figure : 3 Disribution of Education

Figure : 4 Distribution of income

Figure : 5 Occupation of respondents

Figure : 6 Uses of current ISP

9
 ABBREVIATION

BBA Bachelor of Business Administration

ITC International Telecommunication Union

PSTN Public Switched Telephone Network

ISP Internet Service Provider

10
 1

CHAPTER I

INTRODUCTION

1.1 Context Information

Internet has become the integral part of our life. Internet is used for the business purpose,
personal entertainment and to socialize with people. According to International
Telecommunications Union (ITC), the global internet users grew by 10 percentage during
Covid -19 pandemic. This is the largest increase in the last decade. Now 63 percentage
out of 7.8 billion people are connected to the internet. Internet bring the change in life
style of people in this current time.

In the 1990s, Internet users had to rely on low-speed, dial-up service based on the
traditional copper line of the public switched telephone network (PSTN) to access the
Internet. Since a telephone line is needed to use the Internet, residential subscribers often
purchased a second telephone line and subscribed to online services. It was not until 2004
that fixed broadband connection, such as DSL and cable, surpassed dial-up access. Since
2007, the number of fixed-telephone subscriptions, which is an integral part of dial-up
service, has been gradually declining. Nevertheless, even in an advanced economy like
the United States, seven percentage of Americans were still relying on dial-up till 2009
for various reasons, such as the availability, usability, and price of broadband access.
Similarly, in 2010, two percentage of US households still accessed the Internet using the
dialup service. By 2015, there were more than 3.2 billion individuals (or 44 per 100
individuals) subscribing to fixed and wireless (broadband) Internet in the world (Parajuli
& Haynes, 2017).

Internet service provider refers to a company that provide internet access to the people
and organization. Several studies has identified the influence in demand and use of
internet service provider such as switching cost, consumer service, price, quality, service
availability, promotion, brand image, consumer service (Omotayo & Abolade,
2018).Demographic variables such as age, income, education, occupation also affect in
 2

choosing internet service provider. Consumer use internal and external sources to search
best internet service provider (Buhalijoti, 2019). External sources includes marketing,
commercials, friends'. Internal sources includes past experience and relevant knowledge
about brand. The interaction between service provider and consumer also affect in the
consumer intention toward choosing the service provider.

Internet was first started in Nepal during 1995 which is just 5 year later the internet
launched globally in 1990. Mercantile, which is popularly known for providing free.np
domain, hosting and banking software in Nepal was the first company to launch internet
in Nepal (Mishra, 2018). There are about 30 ISPs in Nepal. Most popular ISPs of Nepal
are Worldlink, Vianet, Subsisu, Classic Tech, Nepal Telecom etc. These ISP's target is
Kathmandu valley since most people live here. According to Nepal Telecommunication
Authority, internet penetration stands at 90 percentage of the population and that of fixed
broadband internet service providers stands at 25 percentage of the population. Whereas
before 2018, the internet penetration was 56 percentage of the population and the fixed
broadband users stood at 12 percentage of the population.

In Nepal, among the various service provider some are popular among users and some
are not. Some service providers can retain existing customers for longer time period and
some fail to retain existing customers. Every internet service provider try their best to
develop their marketing strategy and improve their business performance to increase their
level of competitiveness. They try to increasing their competitive potential to acquire
customers as much as possible based on the understanding of customers’ decision making
of how and why consumers choose particular service providers. A strong understanding
of customer decision making is very important for the service providers in order to be
successful and achieve their business goals. It depend upon the consumers what they
actually expect from their service provider. Users of different nature prefer different
services. Some users are attracted by the service of the company while other look for the
price.
 3

1.2 Purpose of the Study

The main purpose of the study is to examine and identify the factors affecting consumers
satisfaction on internet service provider. Besides, the specific purpose of this study are as
follows:

a. To examine the consumer satisfaction on the basis of brand name of internet service
provider.

b. To determine the consumer satisfaction on the basis of price of internet service

provider.

c. To identify the factors that influence the consumer satisfaction toward internet service
provider

1.3 Significance of the study

Internet users are increasing day by day. With the increase in number of users internet
service providers are also in the increasing rate. People and organization use internet to
complete their activities efficiently. Most of the people depend on internet to complete
their task.

This study helps the internet service providers to identify their target consumers. As this
study helps to analyze the factors that affect in the preference of internet service
providers. From the findings of this research, internet service providing company can
focus on those factors that attract the customers. It help the company to bring change in
their price, speed, quality of service and other factors to attract new customers and to
retain existing customers. This study to generalize the users' perception towards the
service providers they are using. It helps to find out the condition of ISPs of Nepal. This
study helps the new customers to select the best and reliable service provider.
 4

1.4 Limitations of the study

Some of the limitations of this study are as follows:

a. This research is based on qualitative data. So the respondents may be biased.
b. This research is based on non-probability sampling. So there may occour sampling
error.
c. To analyze the data only some of the tools are used i.e Frequency, Mean and
Standard deviation which is insufficient to analyze the data.
d. Data is collected from the people of Bhaktapur District. This may not represent the
overall population of Nepal.

1.5 Literature Survey

The literature review elaborates the significance of the research study to make a clear
understanding of service performance assessment by customers.Once the problem have
been identified the researcher must learn more about the research topic under
investigation to know the solution of the problem. To do this, the researcher must study
journals, books, thesis, previous studies, newspaper that provides knowledge related to
the research problem. A comprehensive review of such documents preparation of
summary of such study is literature review. This chapter presents the issues and factors,
ideas and opinions, and the results of the research that others have undertaken in the
study area.

1.5.1 Theoretical Literature Review

A. Definition of consumer

Any individual who purchases products or services for his personal use and not for
manufacturing or resale is called a consumer. A consumer is one who is the decision
maker whether or not to buy an item at the store or someone who is influenced by
advertisement and marketing. According to kotler (1994) Consumer behaviour is the
study of how people buy, when they buy and why they buy.Solomon et al. ( 1995)
Consumer is the study “of the processes involved when individuals or groups select,
purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and
desires”.
 5

B. Meaning of Consumer Satisfaction

Consumer Satisfaction can be defined as the customer’s feelings or attitudes towards a

product, a firm or a service provided by a company. Satisfaction is created when the
customer’s needs or expectations are met. Consumer Satisfaction is a central concept in
modern marketing thought and practice. Kotler (1994) defines consumer satisfaction as
“a person's feeling of pleasure or disappointment resulting from comparing a product's
perceived performance (or outcome) in relation to his or her expectations”.

C. The Factors affecting consumer satisfaction on internet service provider in the present
context are : Network Quality, Speed, value and service.

D. Best Internet Service Providers(ISP) in Nepal are: Worldlink, Classic Tech, Vianet,
Subisu, Nepal telecom, DishHome Fibernet etc.

Several researchers have carried out studies in their effort to examine consumers
satisfaction on internet service provider. Parasuraman et al. (1985) has defined customer
satisfaction as customers’ feelings of happiness, fulfilment and pleasure towards a service
provider and its services through their overall experience with the company. Zeithaml,
Berry and Parasuraman (1996) state that satisfaction refers to the ability of the supplier to
meet the customer’s norms and expectations. Customer satisfaction is typically defined as
a post consumption evaluative judgment concerning a specific product or service
(Gunderson, Heide and Olsson, 1996). Parasuraman et al. (1988) define service quality as
the evaluation of a service by customers achieved by comparing its actual performance
and the general expectations of its performance. Parasuraman et al. (1988) identified five
dimensions of service quality identified as SERVQUAL dimensions: tangibles,
reliability, assurance, empathy and responsiveness. Tangible concerns the appearance of
equipment, physical facilities, communication materials and personnel. This dimension
translates to the appearance and interior of the organization. It signals quality and
conveys the image of a firm. Reliability concerns the ability of service to dependably and
accurately perform the promised service or delivering on its promises. The choices made
by the current researchers raise issues surrounding dilemmas as to informing participants
of the research, and the consequent risk of the ‘Hawthorne Effect’,(Heiman 1999).
 6

Participants may refuse to participate in the research if they are aware of the project,
which on this occasion did not happen, as well as the risk of interfering with the natural
environment due to the awareness of the presence of the 12 researcher. In the current
research project concerning the use of discussion lists by people with autism, ethics were
taken as paramount in resolving this dilemma. The project was not about ‘observing’ the
idiosyncrasies of people with autism, but about engaging them in meaningful research
which would promote self-advocacy, and document the ways in which people with
autism interact in highly sophisticated ways Despite many attempts to measure and
explain customer satisfaction, there still does not appear to be a consensus regarding its
definition (Giese and Cote, 2000). For example: Jamal and Nassir (2003) examined the
determinants of customer satisfaction in retail banks in Pakistan. Using survey of 300
questionnaires that was randomly distributed to the customers of women bank in
Pakistan, the study was able to show strong relationship between various dimensions of
service quality and customer satisfaction. However, the relationship between tangible and
customer satisfaction was not supported by the study. Customer satisfaction is
fundamental to the practice of customer (Anderson et al., 2004). For Telecom service
providers, customer satisfaction leads to favorable result, such as rates of subscriber's
retention, perceived value and customer buying behaviour intention, (Yang et al., 2004).
Satisfaction might occur, through feature of product, or sale person, and it might obtain
through the experience that consumer committed, at a more fundamental level, it should
be seen as satisfaction with a product, whether a commodity or service.

Hedman (2005) described the user experience on internet to understand the user
experience of smart phones over time as perceived by its users. According to the data, the
way the artifact consumption values changes over time. Functional value increase for
some participations and declines for others. Emotional value is derived both from the
iphone itself (the aesthetic appearance and way it feels to the touch) as well as by
software and associated services. The artifact itself satisfies epistemic value, as do the
third party applications, websites etc. the optimistic value inherent with the iphone drops
rapidly. Much of the contextual value strongly depends upon whether an internet-
connected personal computer is available. Luo and Homburg (2007) concluded that
customer satisfaction positively affects business profitability. The majority of studies
 7

have investigated the relationship with customer behavior patterns (Dimitriades, 2006;
Olorunniwo et al., 2006; Chi and Qu, 2008; Faullant et al., 2008). According to these
findings, customer satisfaction increases customer loyalty, influences repurchase
intentions and leads to positive word-of-mouth. Given the vital role of customer
satisfaction, it is not surprising that a variety of research has been devoted to
investigating the determinants of satisfaction. Satisfaction can be determined by
subjective (e. g. customer needs, emotions) and objective factors (e. g. product and
service features).

Nagarkoti (2009) conceptualized the factors influencing consumer behavior of internet

users to find out whether the ISPs is really essential to make the daily life or not. Indeed
ISPs have made people smarter by organizing their lives with a single device and
providing access to the world wide information at the fingerprints. It does not only
organize daily life by putting calendars, to do list and shopping list at one place but also
helps people connected from all over the world by integrating contacts,emails,social
networking, messaging and even video chats. We can use the internet for education
purpose, job related, tasks, information search for entertainment purposes. That is the
main reason that many people uses internet nowadays. Analyzing measures of customers'
satisfaction is an immense dilemma because customer is becoming more demanding
regarding service quality in internet sector of Nepal. It is important to understand the
impact of service quality on customer satisfaction. Nowadays, the only demand of the
customers is to get the good value for their money. Due to increasing market
competitiveness no one can deny the significance of service quality. Therefore, it is
challenging for the bankers to meet the customer expectation. By reviewing the study,
internet sector can have direction to understand the major factors of service quality that
influence customers' satisfaction. It also provides understanding that building long term
and a strong customer relation is critical for the ISPs sectors. This study provides insight
of service quality impact on customer satisfaction in ISPs in Nepal. This is based on the
core dimensions of service quality i.e. tangibility, responsiveness, assurance, empathy
and reliability. To highlight the significance of service quality, customer satisfaction this
study based on Bhaktapur. The results of the study suggest customer satisfaction based on
 8

service quality dimensions such as tangibility, empathy and assurance having positive
and significant relationship.

Bayraktar et al. (2012) Customers are more likely to switch if they are unhappy with
their current service provider. Accordingly, it was hypothesized that customer satisfaction
and service quality influences the consumers’ intention to purchase a service. Results
confirmed that there is positive relationship between service quality and customer
satisfaction and consumers’ intention to purchase a service.

1.5.2 Empirical Review

This section briefly discussed a critical and in depth evaluation of previous research. It is
the way to find out area of factors affecting consumer satisfaction on ISP.

Parasuraman et al. (1988) define service quality as the evaluation of a service by

customers achieved by comparing its actual performance and the general expectations of
its performance. Parasuraman et al. (1988) identified five dimensions of service quality
identified as SERVQUAL dimensions: tangibles, reliability, assurance, empathy and
responsiveness. Tangible concerns the appearance of equipment, physical facilities,
communication materials and personnel. This dimension translates to the appearance and
interior of the organization. It signals quality and conveys the image of a firm. Reliability
concerns the ability of service to dependably and accurately perform the promised
service. Gary et al. (1999) identified economic variables (income, monthly bill, flat rate
and time use), internet use variables (education, email, hobby, entertainment and work),
ISP choice variables (brand, help desk, package, reliable, speed), and socio-demographic
variables (age, gender and income). These studies found similar and different results
with regard to the influence of these factors on demand and use of the telecommunication
products and services. Customer satisfaction is fundamental to the practice of customer
(Anderson et al., 2004). For Telecom service providers, customer satisfaction leads to
favorable result, such as rates of subscriber's retention, perceived value and customer
buying behaviour intention, (Yang et al., 2004). Satisfaction might occur, through feature
of product, or sale person, and it might obtain through the experience that consumer
committed, at a more fundamental level, it should be seen as satisfaction with a product,
whether a commodity or service.
 9

Chiang and Liao (2005) investigated users’ demand in Taiwan for internet access and the
factors influencing their choice of ISPs. The study found that wider bandwidth and better
service quality (stability & security reliability, brand image, and content bundling)
increased users’ demand for Internet access and ISP. Further, the study revealed that
lower price increased the Internet service demanded, which in turn increased the ISP’s
market share. Zeithaml et al. (2006) noted that reliability as a dimension of service
quality which is critical to customers as customers want the companies that communicate
and keep to their promises. Responsiveness refers to the willingness to offer prompt
service and help customers. It is concerned with customers’ requests, complaints and
questions attentively and promptly. A responsive firm often communicates with them and
deal with their problems or answer their questions (Zeithaml et al., 2006). Assurance
refers to the employees’ courtesy and knowledge and their ability to convey confidence
and trust to customers. Aminu and Hartini (2008) has identified some of the factors that
influence demand and use of telecommunication service providers such as marketing
mix, value added service, price and promotion.

Erevelles, Srinivasan and Rangel (2014) used attitude and intention to check customers'
satisfaction on Internet service provider. Omatayo and Abolade (2018) used variables like
attitude, price of service provider, brand, quality of service, price of substitutes to identify
factors affecting while choosing service provider. Buhalijoti (2019) used brand image,
information and perception of risk. Timalsina (2019) had used variables like speed and
price in his research. Madushanka et al., (2020) had included independent variables such
as service quality, price, brand image and promotion in their research.

In this research, independent variables such as brand, price, speed and availability are
used to check customers' satisfaction on internet service provider of Nepal. These
variables are different from those of previous researchers. In this topic there are few
research done in present context.

1.6 Research method

Research method is the technique used to identify, select, process and analyze
information about a topic. This research was conducted to analyze the factors affecting on
consumer satisfaction of internet service providers. Thus, the researcher has adopted a
 10

questionnaire method, descriptive and explanatory casual research design to collect data
to test the impact of independent variables on dependent variable.

Research method describes the method and process applied in the entire aspects of study
and helps to resolves the systematic problems. It is used to collect information and data
sets out overall plan associated with a study. It may include both present and historical
information.

1.7 Research design

This study has descriptive research designs to deal with issues associated with consumer
satisfaction on internet service provider. Research design was to ensure that the evidence
obtained enables you to effectively address the research problem logically and as
unambiguously. It refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way.

1.7.1 Population and Sample

Sample is a group of people, objects or items that are taken from a large population for
measurement.The population for this study were the internet users from different places
of Bhaktapur District. For this research, a simple random probability and convenient
sampling technique was used by choosing a basic component in search of a way that
every component in the population has an equal chance to be chosen. For this study, a
sample of 135 internet users are taken for having relevant information to analyze the
actual impact of different factors on consumers' satisfaction on Internet service provider.
For collecting the sample, I have chosen to do a questionnaire among students of
Bhaktapur Multiple Campus and people living nearby local area.

1.7.2 Natures and Sources of Data

The study was based on primary sources of data. The responses received from people
living in nearby local areas have been taken as a primary source of data. The major tool
for data collection was coded using a five-point Likert scale. The questionnaire was
distributed to respondents using google forms through social media like messenger,
facebook, viber etc. Questionnnaire is constructed in simple language in order to reduce
the risk of ambiguity. Questionnaire was the main instrument used to collect data for the
 11

study. Multiple choice questions has been used in this study in order to gather data for
different variables such as multiple options and yes/no.

1.7.3 Tools used for Data Analysis

Data Analysis can be of two types:qualitative and quantitative data analysis. Quantitative
data are analyzed through findings, analysis and explanation. Likewise, qualitative data
can be analyzed using charts, tables, and figures.

After the collection of data, researcher was used quantitative tools for data analysis.
Various tools were used to analyze them and find out the conclusions. Being descriptive
research, different methods and tools were used to analyze the data. The following
methods are used to analyze the data:

a. Pie-chart

It is another widely used tool, which is generally used for diagrammatic presentation of
the values which differ widely in magnitude. It is a circular statistical graphic which
which is divided into slices to illustrate numerical proportional.

a. Frequency

The main purpose of developing frequency distribution is to summarize data by grouping

into mutually exclusive classes and the number of occurrences in a class.

b. Percentage

It is a particularly useful method of expressing the relative frequency of survey responses

and other data. In this survey, percentage frequency distributions are displayed as tables,
bar graphs and piecharts. Percentage is used to make calculation easier.

c. Mean

It is the sum of values of all the elements in the sample. It is the most common and best
general-purpose measure representing the entire data by one value. The value of the AM
is obtained by adding together all the items and by dividing this total by the number of
items.
 12

Symbolically,

AM =ƩX÷N

Where,

A.M =Aithmetic Mean

N = Total number of observation

ƩX=sum of all the observed value

d. Standard Deviation

Standard deviation is the measure of dispersion of a set of data from its mean. It measures
the absolute variability of a distribution, the higher the dispersion or variability, the
greater is the standard deviation and greater will be the magnitude of the deviation of the
value from their mean.

Symbolically,

Standard Deviation =(√Ʃ(x-x)^2)÷(n-1)

 13

CHAPTER II

DATA PRESENTATION AND ANALYSIS

This chapter presents the analysis of data and discussion of results based on the study
objectives. This chapter is all about presentation analysis and discussion of the data that
were collected by distributing the questionaire following convenience sampling method.

For the purpose of the study, Researcher have decided to collect primary data. Primary
data include data through a survey with a people of Bhaktapur. For that purposed, a
questionnaire has been designed. Survey including the measurement of expectations and
perceptions individually is too complicated, timeconsuming, and tedious. Taking into
considerations the time and resources limit of this study, researcher have decided to
directly examine the preference of ISP and divergence between customer’s expectations
and perceptions using only one scale. Data analysis is the practise of working with data to
obtain information, which can be used to make decisions. Data analysis helps in
intrepretation of data and take decisions or answer the research questions.

2.1 Respondent Profile

Internet has become the integral part of our life. Internet is used for the business purpose,
personal entertainment and to socialize with people.In the 1990s, Internet users had to
rely on low-speed, dial-up service based on the traditional copper line of the public
switched telephone network (PSTN) to access the Internet. Since a telephone line is
needed to use the Internet, residential subscribers often purchased a second telephone line
and subscribed to online services. Ten years back the technology was not as advanced as
it is today. New from teenagers to old-aged people, everyone has access to the internet.
Using the internet is not bad, but it’s misuse can lead to unhealthy consequences in the
future.
 14

In Nepal, among the various service provider some are popular among users and some
are not. Some service providers can retain existing customers for longer time period and
some fail to retain existing customers. Every internet service provider try their best to
develop their marketing strategy and improve their business performance to increase their
level of competitiveness. Nepal is a developing country, and it cannot introduce all the
latest technologies and services. Previously there was no provision of any kinds of survey
to understand the customers and the service provider were also mainly focused on
generating the profit. The people are more advanced than technologies these days, so they
want a better internet connection. Globalization has made it easier to know the
information from other different countries and availability of technology has made the
life easier.

This study was conducted to understand consumer satisfaction on internet service

providers in Bhaktapur District. Consumers preference are expectations, likes, dislikes,
motivations, and inclinations that drive customer purchasing decisions ; a greater liking
for one alternative over another or others. There are in total of 135 respondents where 68
are male and 67 are females. The respondents are from different age group, and they
involve in different types of occupation. The data was analyzed from different parameters
such as gender, age, education levels, employment status and income level of
respondents.

2.2 Data presentation and Analysis

Data Presentation and Analysis of data is one of the most notable factors to be done
compulsory in report writing. Data analysis is the practise of working with data to obtain
information which can be used to make decisions. This chapter provides systematic
presentation and analysis of primary data to deal with various issues associated with
impact of demographic variables on consumers satisfaction on internet service provider.
In this chapter, the data and information are collected from respondents living in
Bhaktapur area using the questionaire method. Graphical presentation such as bardiagram
and line diagram are also presented wherever appropriate. Here all the collected data are
presented with the needed tables and diagrams with the help of MS Excel.
 15

2.2.1 Distribution of Gender

The following tables and figures elaborate the distribution of genders of respondents
involved in this study:

Table 1
Distribution of Gender
Gender Frequency Percent
Male 68 50.4
Female 67 49.6
Total 135 100
source: Questionnaire Survey, 2022
 16

49.60% 50.40%

male female

Figure 1: Distribution of Gender

Among the collected data, the above table and figure shows that the distribution of
respondents according to the gender. Out of 135 respondents, 68 respondents are male
resulting 50.4% and 67 respondents are female resulting 49.6% which indicates male
respondents took slightly more participation in this survey.

2.2.2 Distribution of age group

The Distribution of age group of the respondents can be shown as following table and
figures:

Table 2

Distribution of age group

Age Group Frequency Percent

Below 20 9 6.7

20 to 30 113 83.7

30 to 40 9 6.7

Above 40 4 3.0
 17

Total 135 100.0

Source: Questionnaire Survey, 2022

3.00%

6.70%
6.70%

83.70%

below 20 20-30 30-40 Above 40

Figure: 2 Distribution by age group

The above table and Figure shows that the distribution of respondents involved in this
study according to the age group. It has been categorized into four sections. Out of 135
respondents, 9 respondents are below 20 years resulting in 6.7% , 113 respondents are 20
years to 30 years resulting in 83.7%, 9 respondents are 30 years to 40 years resulting
6.7% and 4 respondent are above 40 years resulting in 3%.

2.2.3 Distribution of education

The distribution of education of respondents is explained with the help of following
figure and table.

Table 3

Distribution of education
 18

Education Level Frequency Percent

Below +2 3 2.2

+2 24 17.8

Bachelor 90 66.7

Masters and above 18 13.3

Total 135 100.0

Source: Questionnaire Survey, 2022

2.20%

13.30%
17.80%

66.70%

Below +2 2 Bachelor master

Figure: 3 Distribution by education

The above table and the figure shows the distribution of respondents according to the
education level. It has been categorized into four sections. Out of 135 respondents, 3
respondents have finished their school level which is 2.2% of total, 24 respondents have
studied upto secondary level which is 17.8% of total. 90 respondents are pursuing their
bachelor degree which is 66.7% of total.18 respondents studied masters and above
resulting 13.3% of total.
 19

2.2.4 Distribution of income

The distribution of income of the respondents are explained as follows :

Table 4

Distribution of income

Monthly Income Frequency Percent

Below 20,000 79 58.5

20,000 to 40,000 36 26.7

40,000 to 60,000 14 10.4

Above 60,000 6 4.4

Total 135 100.0

Source: Questionnaire Survey, 2022

 20

4.40%

10.40%

26.70%
58.50%

Below -20000 20000-40000 40000-60000 Above 60,000

Figure: 4 Distribution by income

The above Figure and table show the distribution of respondents according to monthly
income. Out of 130 respondents, 79 respondents earn below 20,000 resulting 58.5%, 36
respondents earn 20,000 to 40,000 monthly resulting 26.7%, 14 respondents earn 40,000
to 60,000 monthly resulting 10.4% and 6 respondents earn above 60,000 monthly
resulting 4.4%.

2.2.5 Distribution of occupation

The distribution of occupation of the respondents is explained with the help of following
figure and table which are as follows:

Table 5

Distribution of occupation

Occupation Frequency Percent

Service 46 34.1

Business 20 14.8

Housemaker 2 1.5
 21

Student 67 49.6

Total 135 100.0

Source: Questionnaire Survey, 2022

34.10%

49.60%

14.80%

1.50%

Service Business Housemaker Student

Figure : 5 Distribution by occupation

The above table and figure show the distribution of respondents according to their
occupation. Out of 135 respondents, 46 respondents work in different service sector
which is 34.1% of total, 20 respondents are businessman which is 14.8% of total, 2
respondents are housemaker contributing 1.5% of total responses. 67 respondents are
students which is 49.6% of total.
 22

2.2.6 Uses of current ISP

The distribution of current ISP of respondents are explained as follows:

Table 6

Distribution of current ISP

Current ISP Frequency Percent

Worldlink 70 51.9

Vianet 17 12.6

Nepal Telecom 18 13.3

Others 30 22.2

Total 135 100.0

Source : Questionnaire Survey, 2022

Figure : 6 Distribution by current ISP

 23

22.20%

worldlink
vianet
51.90% nepal telecom
13.30% others

12.60%

The above table and figure show the distribution of respondents according to their current
internet service provider. Out of 135 respondents, 70 respondents are Worldlink users
resulting in 51.9%, 17 respondents are vianet users resulting in 12.6%, 18 respondents are
Nepal Telecom users resulting in 13.3%, 30 respondents use other service providers
(Classic Tech, Subisu, Dish Home Fiber Net, CG net) resulting 22.2%.

2.3 Descriptive analysis

This section is focused on descriptive analysis of data which was collected during survey.
Descriptive analysis includes calculation of statistical measure such as mean and standard
deviation. The tables below shows the responses given by the respondents regarding the
independent and dependent variables. All the statements are rated on a scale 1 to 5 (1=
Strongly disagree, 2= Disagree, 3= Neutral, 4= Agree and 5= Strongly agree).

2.3.1 Responses to Brand

Table 7

Responses to Brand

Statements Agree Disagree Neutral Strongly Strongly Grand

agree disagree Total

I believe my internet service is 44% 7% 29% 17% 3% 100%

 24

dominating the market.

I believe my internet service 46% 7% 12% 36% 0% 100%

provider is popular among the
users

I believe my internet service 56% 3% 34% 7% 0% 100%

provider is trustworthy.

The findings from the survey on perceptions of internet service providers (ISPs) shed
light on a range of sentiments among respondents. The data indicates that a significant
portion, 44%, believe their ISP dominates the market, with 17% strongly agreeing and
only 3% strongly disagreeing. This suggests a prevailing confidence in the
competitiveness of their chosen service. In terms of popularity, 46% agree and a
substantial 36% strongly agree that their ISP is popular among users. This positive
sentiment indicates a strong brand image and user satisfaction. However, the
trustworthiness of ISPs shows a more nuanced view, with 56% agreeing and 7% strongly
agreeing, but 34% remaining neutral, and 3% expressing disagreement. This underscores
a need for ISPs to focus on building trust through transparency and reliability.

It is crucial for ISPs to leverage these insights to enhance their service offerings. For
those perceived as market dominators, maintaining innovation and competitive pricing
could solidify their leading position. Those with high popularity should continue to
engage with customers to sustain their positive image. However, for ISPs facing trust
issues, the data suggests an urgent need for initiatives to improve transparency and
communication. Offering clear information about services, pricing, and reliability could
help alleviate concerns. Additionally, actively seeking customer feedback and addressing
their needs can foster a sense of trust and loyalty. ISPs must strive to not only meet but
exceed customer expectations to maintain market leadership and enhance customer
satisfaction.2.3.2 Responses to price
 25

Table 8

Responses to Price

Statements Agree Disagree Neutral Strongly Strongly Grand

agree disagree Total

I believe my internet service 39% 14% 31% 15% 2% 100%

provider charges a justifiable
amount for the service they
provide.

I think my internet service 34% 24% 29% 12% 2% 100%

provider charges less at the time
of setup.

I think my internet service 41% 14% 25% 15% 5% 100%

provider gives discount when
complete annual payment is
done at once.
 26

The data regarding perceptions of price related to internet service providers (ISPs)
unveils diverse attitudes among respondents. Around 39% agree and 15% strongly agree
that their ISP charges a justifiable amount for the service, indicating a substantial portion
finds the pricing fair. However, 14% disagree and 2% strongly disagree, suggesting room
for improvement in pricing transparency and value communication. Regarding setup
costs, 34% agree and 12% strongly agree that their ISP charges less at setup, but 24%
disagree and 2% strongly disagree, signaling potential dissatisfaction with initial costs.
Interestingly, 41% agree and 15% strongly agree that their ISP offers discounts for annual
payments, showing a positive inclination towards such offerings. However, 14% disagree
and 5% strongly disagree, indicating a segment of customers unaware or unsatisfied with
this option.

To improve customer satisfaction, ISPs should focus on transparency in pricing

structures, ensuring customers understand the value they receive. For those perceiving
justifiable pricing, reinforcing this perception through clear communication can enhance
loyalty. Addressing concerns about setup costs requires ISPs to review and possibly
adjust these fees, considering competitive market rates. Highlighting benefits of annual
payment discounts could attract more customers if promoted effectively. ISPs need to
strike a balance between profitability and customer affordability, aligning their pricing
strategies with customer expectations to maintain satisfaction and competitiveness in the
market.

2.3.3 Reponses to speed.

Table 9

Statements Agree Disagree Neutral Strongly Strongly Grand

agree disagree Total

I believe the upload and 42% 7% 32% 10% 8% 100%

download of data takes place
swiftly.

I think all the internet requiring 34% 14% 25% 15% 12% 100%
applications run at the usual
speed even with the increase in
number of devices.
 27

I think my internet connectivity is 37% 7% 41% 7% 8% 100%

of higher range.

Examining perceptions on internet speed and connectivity reveals mixed sentiments

among respondents. Approximately 42% agree and 10% strongly agree that upload and
download speeds are swift, indicating satisfaction with data transfer rates. However, 7%
disagree and 8% strongly disagree, possibly experiencing slower speeds than desired.
Regarding internet applications running smoothly with increased device usage, 34%
agree and 15% strongly agree, highlighting a positive perception of consistent
performance. Conversely, 14% disagree and 12% strongly disagree, suggesting issues
with maintaining speed during high device loads. Interestingly, 37% agree and 7%
strongly agree that their internet connectivity is of higher range, while 41% remain
neutral. However, 7% disagree and 8% strongly disagree, indicating a segment
dissatisfied with their perceived connectivity range.

To enhance user experiences, ISPs should focus on improving speed consistency and
range coverage. Addressing concerns about upload and download speeds can lead to
higher satisfaction levels among customers, potentially improving loyalty. Ensuring that
internet applications run smoothly even with increased device usage is crucial for modern
households and businesses. ISPs can invest in infrastructure upgrades and network
optimization to deliver on these expectations. Communicating about the range of
connectivity accurately can manage customer expectations, potentially reducing
dissatisfaction. Overall, ISPs should prioritize network reliability and speed consistency
to meet the diverse needs of their customer base.

2.3.4 Responses to availability

Table 10

Responses to Availability
 28

Statements Agree Disagree Neutral Strongly Strongly Grand

agree disagree Total

I believe my internet service 41% 15% 25% 17% 2% 100%

provider gives quick response
queries.

I believe my internet service 46% 17% 19% 15% 3% 100%

provider has reach at all places.

I think the field workers of my 37% 17% 31% 15% 0% 100%

internet service provider reach
to the problematic area on time.

Assessing perceptions on customer service and availability, findings indicate positive

views and room for improvement. A notable 41% agree and 17% strongly agree that their
ISP provides quick query responses, suggesting satisfactory customer service. However,
15% disagree and 2% strongly disagree, highlighting areas where responsiveness can be
enhanced. Regarding reach, 46% agree and 15% strongly agree that their ISP covers all
areas, indicating widespread availability. Nonetheless, 17% disagree and 3% strongly
disagree, indicating gaps in coverage.

In terms of field worker response, 37% agree and 15% strongly agree that workers reach
problematic areas promptly, demonstrating satisfaction with service availability.
However, 17% disagree, signaling areas for improvement in the timeliness of addressing
issues. ISPs should prioritize efficient customer service responses to queries, ensuring
timely assistance and issue resolution. Enhancing coverage to reach all areas will
improve overall customer satisfaction and accessibility. Moreover, focusing on timely
field worker responses can address concerns and bolster trust in service reliability. By
investing in responsive customer support and expanding network coverage, ISPs can
strengthen their reputation and customer loyalty.

2.2.5 Reponses to satisfaction on ISP

Table 11
 29

Responses to Satisfaction on Internet Service Provider

Statements Agree Disagree Neutral Strongly Strongly Grand

agree disagree Total

I am satisfied with the service of 42% 8% 31% 17% 2% 100%

my service provider.

I recommend my network brand 51% 12% 17% 17% 3% 100%

to other people.

In future I will continue to use 44% 5% 29% 17% 5% 100%

my current network.

Examining satisfaction and brand loyalty, results demonstrate positive sentiments

towards ISPs. Notably, 42% agree and 17% strongly agree that they are satisfied with
their service, indicating overall contentment. Furthermore, 51% agree and 17% strongly
agree that they would recommend their network brand, showcasing a high level of
satisfaction. Looking to the future, 44% agree and 17% strongly agree that they will
continue using their current network, revealing strong brand loyalty.

These findings highlight a robust level of satisfaction and loyalty among users. With 42%
expressing satisfaction and 51% willing to recommend their ISP, these sentiments
indicate positive experiences. Additionally, the 44% intending to continue with their
current network indicates a high level of trust and satisfaction. However, addressing the
8% who disagree with their satisfaction and 12% who wouldn't recommend their ISP can
improve overall service quality and customer relations. ISPs should focus on maintaining
the quality of service that garnered this positive response, ensuring continued satisfaction
and loyalty among their users.
 30

2.4 Findings

This research was conducted to find the factors affecting consumer satisfaction on
internet service provider in Bhaktapur. Different methodologies and strategies were used
in the process to derive the final conclusion. This study was conducted by collecting 135
questionnaires among friends as well as people living nearby areas to collect various
opinions from them. The major findings obtained from this study are as follows:

 The result shows that the frequency of respondents using internet service is
conducted by taking 135 respondents including 68 male and 67 females. Male
frequency is higher with 50.4% whereas female is 49.6%.

 The result shows that the out of 135 respondents, according to their age group , 9
respondents are below 20 years resulting in 6.7%, 113 respondents are 20- 30 years
resulting in 83.7%, 9 respondents are 30-40 years resulting 6.7% and 4 respondents
are above 40 years resulting in 3%.

 Out of total respondents, 3 respondents have finished their school level which is
2.2% of total, 24 respondents have studied up to secondary level which is 17.8% of
total. 90 respondents are pursuing their bachelor degree which is 66.7% of total.18
respondents studied masters and above resulting 13.3% of total.

 The result shows that out of 135 respondents,79 respondents earn below 20,000
resulting 58.5%, 36 respondents earn 20,000 to 40,000 monthly resulting 26.7%, 14
respondents earn 40,000 to 60,000 monthly resulting 10.4% and 6 respondents earn
above 60,000 monthly resulting 4.4%.

 Based on occupation in the total sample of 135, 46 respondents work in different

service sector which is 34.1% of total, 20 respondents are businessman which is
14.8% of total, 2 respondents are housemaker contributing 1.5% of total responses.
67 respondents are students which is 49.6% of total.
 31

 According to the survey, 70 respondents are using World link resulting in 51.9%, 17
respondents are Vianet users resulting in 12.6%, 18 respondents are Nepal Telecom
users resulting in 13.3%, 30 respondents use other service providers (Classic Tech,
Subisu, Dish Home Fiber Net, CG net) resulting 22.2%.

2.5 Discussion

The study found out a significant and positive relationship between customer
satisfaction on internet service providers. It leads to higher service quality of isp leads to
a higher level of customer satisfaction. Out of total 135 respondents i am satisfied with
the service my internet service provider has mean value of 3.68 and standard deviation of
0.982 indicating agreement on the data. The result show the most of respondents were
satisfies with their ISP.
 32

CHAPTER III

CONCLUSION AND ACTION IMPLICATION

The analysis of data were conducted according to our research questions and objectives
in pervious chapter. This chapter addresses important study answers to research
questions, the findings, and the ways in which they lead to our understanding of the
importance of various factors influencing customers' satisfaction on internet service
provider. The first section provides a description of the observations, the second section
includes the interpretation of the report arising from the results and the third section
includes the guideline for future research that can be conducted on this topic.

3.1 Summary

The main purpose of this research was to analyze the factors that affect customers'
satisfaction on internet service provider and also to examine the level of satisfaction of
the customers. This research try to solve issues of people regarding most reliable service
provider of this time. To enhance the knowledge on this topic, different sources like
books, internet, articles, report, and other documents were thoroughly reviewed. This
research has used a quantitative approach towards descriptive and explanatory casual
research designed to test the research question empirically and descriptive research
design for answering the research questions. The researcher used questionnaire method to
collect data from Bhaktapur. This research is completely based on primary data.
Statistical software is used to analyze the collected data. The research is concerned about
the finding the different information about the major internet service providers around the
Bhaktapur. The questionnaire was designed in such a way that it measures the factors
conditions of ISPs in Nepal,finding the problem faced by customers,issue with the
company, satisfaction level of the different aged consumer parties perception towards
their ISPs. There are all together 21 questions which consists of demographic questions
 33

and other were based on their satisfaction analysis. The customer perception was
analyzed through the different responses i.e strongly disagree, disagree, neutral, agree
and strongly agree.The responses were collected, and the data was arranged and analyzed
using Microsoft word and Excel software packages. Under Excel software. The collected
data were analyzed through various approaches such as reliability analysis, analysis of
demographic profile and descriptive analysis.

After the analysis of data, it is seen that respondents were mostly from the age group of
20 to 30. While analyzing the data on the basis of gender, there are equal number of male
and female respondents. The bachelor level students with low or no income are found to
be the active internet users. Through the analysis of data, it is found that Worldlink has
the most abundant number of users. The mean value of customer satisfaction on internet
service provider is 3.485 which means customers are satisfied with their internet service
provider.

3.2 Conclusion

This research show that availability is the most influencing factor for the customer
satisfaction on internet service provider. Users are satisfied if their service provider has
reached to all the places. When users want to join internet service then they prefer those
service provider which connection line has reached to that place. Also users are satisfied
when their service provider response to their queries on time. When the front desk answer
phone call on time and answer all the questions of users on time then it build trust on
users. When there is problem in connection line or router then the field workers are
needed to solve that. In this condition if field worker reach on time after the users
complain about the problem then the users get satisfied.

Likewise, price, speed and brand also influence customers' satisfaction on internet service
provider. If the users get service at affordable price then get satisfied. As people always
want to get quality service at minimum price. Similarly speed of network matters to the
users. Users prefer high speed network for the fast sharing of data. Disconnection of
network while working affect users' satisfaction towards that network. Brand creates the
strong relationship with customers. It provides sense of security to the users and it deliver
what the customers want. So, brand also impact customer satisfaction on internet service
 34

provider. Hence availability is most influencing factor on customer satisfaction. After

availability, price, speed and brand show the impact in the decreasing order.

3.3 Action Implications

Actions Implications is an occasion when you seem to suggest something without saying
it directly. It is the conclusion that can be drawn from something although it is not
explicity stated. According to the study and analysis of data and information, the
following implications should be adopted:

 The service providers should concern to add additional facilities like enhancing the
internet speed, offering the extra services and making the connection more reliable.
 There were many problems against internet connection and error which must be
recognized and detected by company to fix it.
 The service providers need to understand the consumers preference and formulate its
policy accordingly.
 The service providers need to attract people towards their company should adopt different
promotional activities.
 35

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 39

APPENDIX

Questionnaire Form:

Dear Respondents,

I am a student of Bhaktapur Multiple Campus, and this questionnaire is a part of research

conducted as a partial fulfillment of BBA. It aim to collect some information relevant to
survey on "Factors affecting customers' satisfaction on internet service provider".I would
be very thankful to you if you could take few time to answer this questionnnaire.You are
kindly requested to provide the correct information. This research is carried out solely
for the academic purpose of the subject 'Graduate Research Project' under 'Tribhuvan
University'. The information provided by you will be kept confidential and it will be only
used for my research findings.

Regards,

Shanti Bhandari

BBA

Bhaktapur Multiple Campus

Tribhuvan University
 40

Gender
1 a. Male b. Female

Age Group
2
a. Below 20 b. 20 to 30 c. 30 to 40 d. Above 40

Education Level
3 a. Below +2 b. +2 c. Bachelors d. Masters and
above
Monthly Income
4 a. Below 20,000 b. 20,000 to 40,000 c. 40,000 to 60,000 d. Above
60,000
Occupation
5 a. Service b. Business c.Housemaker d. Students

Current Internet service provider

6 a. Worldlink b. Vianet c. Nepal Telecom d.
Others

(1= Strongly Disagree; 2= Disagree; 3= Neutral; 4= Agree; 5= Strongly Agree)

S.N Statements 1 2 3 4 5
1 I believe my internet service provider is
popular among the users
2 I believe my internet service provider is
trustworthy.
3 I believe my internet service provider is
dominating the market.
 41

4 I believe my internet service provider charges

a justifiable amount for the service they
provide.
5 I think my internet service provider charges
less at the time of setup.
6 I think my internet service provider gives
discount when complete annual payment is
done at once.
7 I think all the internet requiring applications
run at the usual speed even with the increase
in number of devices.
8 I think my internet connectivity is of higher
range.
9 I believe the upload and download of data
takes place swiftly.
10 I believe my internet service provider has
reach at all places.
11 I believe my internet service provider gives
quick response to the queries.
12 I think the field workers of my internet
service provider reach to the problematic area
on time.
13 I recommend my network brand to other
people.
14 In future I will continue to use my current
network.
15 I am satisfied with the service of my service
provider.
Thank you for your response !
42