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Paper Details: Systematic Study On Impact Of Service Characteristics On Cost Drivers With Reference To Telecommunication Services In India

Volume 3 - Issue 11, November 2019 Edition
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Author(s)
Dr. Megha Mehta
Keywords
service characteristics, service drivers, service strategy, cost driver, telecommunications services, structural equation model.
Abstract
This study assesses the impact of service characteristics, viz. intangibility, inseparability, heterogeneity, perishability, on cost drivers of telecommunications services firms operating in an environment of increasing competition and customer expectations. Referring value chain, four cost drivers of telecommunications service provisioning are identified, viz. operating, marketing, employee, and capital expenditure. Responses to questionnaire on impact of service characteristics, competition and customer expectations on cost drivers are analysed using factor analysis. The analysis resulted in five factors, identified as structural cost drivers, viz. service drivers, service design, service positioning, customer service, and service capacity. The structural cost drivers are then analyzed using structural equation modelling. A statistically significant relationship of ‘service drivers’ influencing ‘service design’ and ‘service positioning’, which in turn, affecting ‘customer service’ and ‘service capacity’ is observed. Observations and findings are summarised projecting service characteristics as leverage in creating value in an environment characterised by increasing competition and customer expectations.
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