University of Nigeria Research Publications

OKEREKE ,Rex Chijioke

Aut

hor

PG/MBA/99/30565

Title

The Interplay of Quality and Price in Marketing of Services:(A Comparative

Case Study of EMS/Speed Post and DHL Services in Lagos Territory)

Facu

lty

Business Administration

D

epar

tmen

t

Banking and Finance

Dat

e

April, 2002P

Sign

atur

e

4' THE lNJERPLAY OF QUALITY AND PRICE

JN MARKETING OF SERVICES (A COMPARATIVE CASE STUDY OF EMSISPEED

POST AND DHL SERViCES IN LAGOS TERRITORY)

OKEREKE, REX CHIJIOKE PGIMBN99130565

I A RESEARCH .PROJECT SUBMITTED IN PARTIAL FULFILMENT OF' 'THE REQUIREMENTS FOR THE AWARD

OF THE DEGREE OF MASTERS OF BUSINESS ADMlNDSTRATlON (MBA) IN MARKETING.

DEPARTMENT OF MARKETING FACULTY OF BUSINESS ADMINISTRATION UNIVERSITY OF NIGERIA, ENUGP CAMPUS

. . THE INTERPLAY OF QUALITY AND PRICE IN MARKETING OF SERVICES

(A COMPARATIVE CASE STUDY OF EMSISPEED POST

AND D H i SERVICES IN LAGOS TERRITORY)

OKEREKE, REX CHlJlOKE PGlMBN99130565

DEPARTMENT OF MARKETING FACULTY OF BUSINESS ADMINISTRATION UNIVERSITY OF NIGERIA, ENUGU CAMPUS

1 OKEREKE REX C. a postgraduate student of the Department of <

Marketing, with Registration Number PGlM13N99130565 has satisiactory

completed the requirement for rcscarch work for the award of the Ilegrce

Master of'Business Administration (MBA) in Marketing.

Tlic work embodied in this project is original and has not been

submitted in part or ful! for any other diploma or degree of this or any other ' t

University.

I,! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

WU E. NWOSU, 1'h.l). DI<.J.O.NNADUKO Supervi.sor hcud clJ'l)epurln~c.n/

. \the loving rrrerrrory q j ' r r ~ p-trrltl 1rzot1ie1- M ~ I ~ ~ I I I I I(ebecccc Mg/lo/cwo O/cer-die,

Although this work bears a single author to it, it nevcrthelcss is the

product of conti-ibution from scvcl-al othcrs without whose help its

completion would have remained elusivc. Firstly, to the Almighty God, I

give all praises for the enabling health to undergo this mental process of

life.

My deep appreciation goes to Dean, faculty of Business

Administration who is my Supervisor, Prof. I. E. Nwosu, whose insightful

con~inents, clircction and advisc Icd to tllc choicc and dcveloplnent of this

research work. To my , uncle, Mr. Kanu Olcerelte, I say thank you for

taking care of my academics financial and morally. May Jehovah God

underwrite my indcbtcdncss to you. My sinccre gratitude goes to my

parcnts Mr. & Mrs. S .O. Ogbonnaya who startcd it all.

To Mr. & Mrs. Aka, my uncle Mr. J. Mi Oltcrcltc and his w i k

Aunly Ebere, Mr. Obi Achi Kanu, Chimaobi Oltoro and others too

nu,merous to 'mention, whosc praycr and availability to help provided

impetus for the completion of this work, may God bless you all. My

li - tllanks goes to n~anagelnent and staff of both NIPOST and Dl-1L scrviccs

the manuscript and making useful contributions. The good Lord will

reward your sacri ftcc oT lovc.

ABSTIUCT L / In this study, aner careSul analysis, it was recognizcd that of the

two courier company undcr study, EMSISpeed post is found with more

scrious situation of stcady dccline in volume of sales occasioned by loss

of customers. This situation is not supposed to bc so given its low price

strategy which going by economic laws should motivate customers to

patronize it.

The study was therefore carried out with the following objectives in

riiind.

(i.) To ascertain if there is a gap or difference betwcen service

expcctations and actual pcrl'ormancc by the two couricr co~npany

under study and to what extent

(i .) To ascertain if the gap has been responsible for the poor performance

of EMSISpeed post in term of sales figure and customers satisfaction.

(iii.) To ascertain the role price and quality has playcd in boosting the

demand for EMSISpeed post and/or DHL services.

(iv.) To ascertain the cause of the quality gaps in EMSISpeed post services

and thc price gap in DI-IL scrvicc.

vii

(v.) To asccr1ai1-I thc 1111-cats (il' any) which the ncw bus co~~ricr scrviccs

post for EMSISpeed post.

To effectively tackle these problems, a total of four hypotheses

were formulated. Questionnaire and oral intcrviews werc uscd to

collcct data li.onl rcspondcnts drawn from both s ta r r~ of EMSISpccd

post and DI-IL plus the custo~ners.

The data collected were analyzed using statistical test, table and

percentages.

The results of the analysis revealed the following, among others:

@)That there is a gap between customcr's expectatioli of service

qiialiiy and actual performance especially with EMSISpeed post.

@)That DHL offers a quality service than EMSISpeed post.

(c) Lack of good marketing research orientation, poor formal standard

non comn~itment of managcrncnt to quality; role conflict,

inadcquatc horizontal con~n~unication, obsolctc racilitics; ctc arc

some of the causes of the problem inhibiting effectiveness and

were made in this rescarch wol-k based on obtained result. .

'I'AUi ,141 O I C ( 'ON'I'I4:N'I's

Titlc page I

Certification . . I I

Dedication ... 111

Acknowledgement : i v

Abstract vi

Table of contcl-lt : x

List of Table xii

. CIIAPTER O N E - IN'I'I<OIPlJC:'I'!ON

1.1 Backgroulld 01' tllc study : 1

1 -2 Statement o f problem 7

-. 1.3 Objective of the study 9

" 1.4 Hypotheses

1.5 Scope of the study 12

1.7 Limitation of the study : 14

CHhi'TER TWO - REVIEW O F XELEVANT LIrTERArI'UItE

2.1 Concept of quality in services 17

2.2 Thc concept ol' livc alld its cl'l'cct 011 lh l land 2 1

2.3 l'ricc/quality rclatio~lship : 25

-2.4 Gaps in scrvicc Quality : 27

2.5 Management 12ok in servicc quality 32

~JIA1"l7L'R ri'lll<EE - WS!3ARCll DKSIGN AND ME'l'lIODOLOGY

3.1 Source of data 35

3.2 I'opulation size 39

3.3 Sa~nplz'sizc dctcrminat ioll : 40

b!. ...

3.4 Samplc s i x 111c1Iiod 42

3.5 Method of analysis 42

CHAPTER :?OUIa - DA'I'A I'I<ISSZSN'I'A'IIION, ANAL,YSIS AND

. INTER1'liETATION

4.0 Introduction 43

4.1 Questio~~~iairc 43

4.2 Questionnaire lbs~ns a~ialysis 45

4.3 Testing oS hypothcscs 58

CHAl'TFER 1;IVlC - I;INI)INC;S, CONCLUSION AND

RECOMMENDATION

5.1 Sumnary of findings: 7 1

5.2 Conclusion 7 3

5.3 Recommcnclation 75

Bibliography 7 0

APPENDICKS

I Lctter or i~itroduction 8 1

I1 Questionnaire form for custmers 82

111 Questionnaire forin for staff 86

LI S'I' GI? '1'A ULES

4.1 Total Qucstionnairc ainl li)lms Distributccl a ~ i c l I<ctulmccl

' 4.2 Breakdown ol'stalTqucstion~~ait-c limns

4.2.2 The Quality of cousicr scrviccs is clcpclldc~lt on the pice cllai-gcd.

42.3 Consumel- would psc1i.1- to pay a Ilighcl- pice 1'01- a n ilnprovcd quality.

4.2.4 Xesponse :to whctl~cr the price of the company services is

. . commensurate to quality

.. 4.2.5 Di-IL pricing cquatcs to quality

both cornpanics scrviccs

4.2.7 Res:?onsc to wllcthcr EMSIspccd post compctcs I'avourabl y well wi 111

GI- l i in cousier scrvicc busincss

4.2.8 Rcsponse to whetllcr cus:omcrs prct.cr tl~c pricc a d quality ol'scrvices

4.2.9 Responsc to which company has a closcr relationship with customers

4.2.10 Responsc to which company ltccps and mccts its psomiscs nlorc

4.2.1 1 Ratilig 01' promptncss or scrviccs or both co~llpanics

4.2.12 Ratinq ol'ovc~.all cllicicntly ol' the two conl1xlnics

X I V

4.2.19 Response to whetlicr adequate work condition and equipment improved

the quality of scsviccs

4.3.4 Conlputing mcan and variance lor EMSIspeed post

4.3.5 Conlptation of tcst statistics usillg r c s p o ~ w lion1 table 4.2. I9

4.3.6 Computation ol'tcst valuc I'or % i~sillg ~ C S ~ O I I S C ' lium tablc 4.2.18

4.3.7 Computing mean and variance for ;)I 1L

4.3.8 Zo~nput ing mcan and varialicc I'or EMS/spccd post

CI~AP'I1A!X ONL

1.1 BACKGROUND 01; TlZ14; S'I'1Jf)Y:

In evely spiarc oi' hun lan c~idc;lvonr conimi~~iicatio~~ l>liiy a viti~l rolc,

given the fact thni therc is always lhc ~:cccl ro cxchangc inl'w-nlatioli witl~in and

b~iween individuals, groups and organisations in ordcr to talcc tlccisio~is that

are vital for the growth and dcvclopnicnt of' both human pcsson, and

organisations economically and socially.

Cormnunication is as old as Inan and as Dr. Olu Onagoruwa (19136:45)

puts it, it was part oS natural instinct ol' man and whatever the p~-cdicament, he

will always find an out-lct fbr it. Co~nmunicntion usually involves a kind of

relationship brought about by sliaring 01' iclcas os cstablislimclit of' con~nio~icss

dideas, t h ~ is to say, communication is sccn as a transaction or a tmnsactional

pheno~mlon. Wiicn i t is bctwecn persons, it is donc cithcr orally or in written

forin, in which cvcs fiii'in i t is d o ~ ~ c , a ~iicclii~~ii or ~iicdia is sccli!ircd to c11su1.c a

Early stages 01' man's dcvclop~ncnt witnessed the sending of vital

2

of civilization i~lld i l i ~ s ~ ~ l i s i ~ i o i , ~Iic ~iecd 10 dclivc~. ~Iicsc ~ O C L I I I I C I I I S i l l id

messages quickcr and i n inrgcr volunlcs tIlii l i Dil l1 110 ~ i i ~ . l . i ~ ~ i I)y I I I ~ S S C I I ~ ~ I . ~ 011

horseback, become inevitable. As a rcsult, thcrc arose thc ncctl for a n

organised set-up to hnndlc tllc busi~lcss ol'collcction a ~ i d dclivcry o f ~ ~ a i l s . 'I'lic

postal services systcm wilh its organisctl labour and infi.ast~-uct~~rc c~ncrgcd a~ld

was then saddelci with the responsibility of providing speedy, efficient and

reliable delivcry ol'nlails to botll witlli~l and outsidc Nigeria.

However, given thc dcvclopmcntal pi.occss inhercnt in othcr arcas of

human endeavouis, thc co~nniu~lication scctor has gone through trc~ncndous

transfoonnation in response to the needs and aspirations of the users. The new

coml:xmicalion systcm now requires thc media within its fold for efficiency,

and for illc postal systcm, spccdy a~ld cl'licicnt dclivcry 01' thcsc mails is

required in o r t l~ r to maice them releva~~t for decision making which is now a

frequent occuraxc.

Thc Nigcrian postal Scrvicc (N I I'OS'I') carvcd out of tlic dcli~nct I'ost

&Tclcco1n1lli11lic;11io11 l>cparl~llc~lt (1' & '1') i l l 1085, was 1'ac~~I will1 tllc

ecofiomic challenge 01' providing this cf'licic~lt and spccdy dclivcry 01'1nails.

and efficient mail delivery services, tllc ~ n a ~ ~ ~ g c ~ n c n t 01' NII'OST fi.0111 tllc

.. onset adopted the principles of' ~narltcting whicli accordirig to tlie i~lstitute of

requirements at a prollt to the business cntcrprisc.

Management ell'orts no:withstanding, NIPOST is still unable to bridge

the gap between customer expectatioils and service offering by it, as evidenced

in thc upsurge ofcusto~ncrs co~nplaints.

The inabiIity of NII'OS'I' to cope with the rapid changes in consumers

expectations neccssi~ntcd by incrcasc i n ccononiic activities and what I'sol'

Nwosu (1990:378) I-cfcrrcd to as the '111lbnnation Age" in which we fourld

ourseives, res~ilietl in tllc upsurgc of' private caul-icr 1ir1lis i l l Nigeria to which

Dr. Olu Onagoruwa (!bid) argued was in rcsponsc to market l'orccs of demand

Nigeria Limitcd (1MNL)in 1974, heralded tllc enlelgcnce o fa ~~unlber of

. of private couricr co~npa~iics caliic 1111 wid1 EMS - spcctl post as tlic I'aslcst

means of nail dclivcry, with low price striitcgy. 'I'lic i~itrotli~ctiori 01' tllc

- ' service by NII'OS'I' was cxpcclctl to solve o~icc - mrtl - lbr all, tlrc prc)blcm ol'

delay in mail clclivcry i l l Nigcria mid i~iiprovc tlic lina~icial li)rtu~ics ol'N1IWS'I'

- 7 in the long-run. 1 hc scrviccs wcrc crcatctl as a scpamtc unit wliicli is supposed

to by semi-autonomous, operating as a cost and prolit u ~ i i l . Accortling to Mr.

Shola Ogunkoyc, illariagel* IZM S/Sl)cctl I'osl, I kqja 'I'crritory, tlic visio~i ol' tlic

founders was to Iiavc a vibruit a ~ i t l cl'licic~it, low-cost courier scrvicc opcrali~ig

. 'within NIPOST which is to be run as a co~nplctc busincss concern with

minimal p-ofit motive.

'(he managers were therefoi-c cxpectcd to embrace thc marketing

coilcept and hccd to Pctcr Urucltcrs postulatioli ha t "tlic purposc oi'busi~icss is

to create and keep customers."

It is perhaps based on this preinise and in agreement with A1 Ries

&Jack Trout (1 986:VI) that marketing today is outwitting, outfla~ilting and out

5

flirting you;' co1npctitol.s using dil l i . l~~lt slrabgics i l ~ Y O L ~ I . ~ c ~ ~ ~ ) ~ ~ ~ ~ tllilt

EMSISpeed Post Manager adopted a low price strategy from onset. This shows

why ovcr the years EMSISpccd I'os~ retcs consistc~ltly lr~rlaill bclow tllc

average charged by couricr lirnis.

To ascertain in qi~antilativc tclns, llic s i~cccs~ ' nchicvctl so lilr by

NIPOST given its low pricc strategy is some what cumbersome, however, one

might be tempted to say that judging from the proliferation of new firms and

the rate at which old ones are growing, coupled with co~nplaints ol' pcoplc and

admittance of guilt by some nlangers of the service,, there exists a wide gap

between customers cxlmtatio~w an scrviccs oll'cring by EM S/Spccd Post has

prompted one to consider the view of' Lovefock C .L. (1 99 1 :245) that other

issues apul from price such as conveniences, security, credit, speed etc. play a

vital role in providing customcr satisl'action with a service organisation

Against this backdrop, courier compa~lics such ad Fedex, Ups, Global

Express, 111-IL, t!le new Luxury bus couricr scrviccs - c.g. Ilkx, ctc. arc all

Jostling to gain a larger ~narkct at the cxpcnsc ol'othcrs with various stratcgics

ranging from overnight delivery, convenience, security of parcels, speed,

credit, 131-icc-cut, by crcati~ig spccii;l tliscount taril'lk, sa~iic-day dclivcry i n b

0

ccrlain parts of thc country, ctc. all li~sliionutl as tllcir u~liquc sclli~lg 1,oini will,

the sole aim of gaining customer's coniiclcnce and ultimately a mqjor share of

the market.

I n Nigcria, tllough Dl 11, may not be a Ilousc-lwld name, i t is so wcll

known as an international a i r cxprcss couricr that Inany b~~sil~csscs LISC - Dl 1L

. began as a small San Francises 1-inn I'oulided by thrce cntrcpreneurs - Sdrain

Dalsey, I-larry 1-lillblo~n and I<obcrt Lynli to sh~~t t le bills oi' ladi~ig between

r 7

' . Hawaii and Calil'ulnia. 1 d a y , 111 11, world wide cxprcss has bccoluc a nli!jor

international C O L I ~ ~ C ~ providilig ~1~1illity S C ~ V ~ C C S to I ~ U S ~ I ~ C S S C S ant1 individuals

around the globe. With over 35,000 employees worldwide, serving 224

countries witli 0,700 couricr vchiclcs ant1 137 aircral't and counting 18 major

hubs and 1,900 service stations. Additionally, Dl-IL opcratcs a global

inh'onnation ~~ctwoldc that cnablcs i t to track cach i tcln tI~rr>ughout its journcy.

The backbone of this systcm is DlHL NET - a high specd data network

1 developed,oi~itly by Dl IL illld IDM. I - 1 This sophistication and cllicicncy inhcmllt i l l DI I L

I i high quality couricr service providcr witli ~.clntivcly i

scrviccs positioned it as a

Iligh pricc, though making

7

its services exclusivcly Ibr busi~icss concerns and llic rich, thercby denying

great number 01' Ilousc-lioltls i l l Nigcsia its quality scrviccs.

However, in response, Dtll., has tricd lowcring priccs and has also

created sl~cciirl tliscc>i~nl taril'l's, a id IWW ol'1i.1.s s;rlllc-day tlclivcry i l l ccrtain

parts of the country.

In this research, we sllall attempt to ~nakc a comparative study on tl~osc

variables with emphasis 011 price and quality ol' scrviccs, that hp inge on tllc

marketing of EMSISpeed post and DHL services - two major players in the

courier business in Nigeria. That is, we will try to determine, using a

comparative study of both EMSISpeed post and DIiL services, the signiiicance

of the interplay of' pricc and quality in thc ~narke t i~~g or services by scrvice

providers with emphasis on courier services.

1.2 STATEMENT OF PROBLEM:

The vision of the founders of EMSISpeed post was to have a service

operating witlli~i NII'OST wllicll is to bc run as a complete busincss concern

, conlpeting with otlicr privately ow~icd couricr co~npanies like Dl-IL, in the fast

delivery sector of the postal marltct. To achicvc this ol,jcctivc, i t was

positioned as a low-cost altcrnativc wllich by law of dc~nand sliould havc sccn

' i t taking over the markct liom compcti~lg l ims il l tllc slwrtcst possiblc ti~nc, all

things being cqual. Unlbrtunatcly this has not bccn so. Dl I L couricr scrviccs

on the other hand is positioned as a high quality service provider with little

" attention to low- cost strategy. I t is the task of this study to ascertain the level

. . of inequality in customer's cspcctation of scrvicc dclivcry and tllc scrvicc

:' being offered by both couricr service providers and 01' what effect on various

. strategies adopted.

To satisfactorily deal with the problem the reseal-cher will find answers

to the following cluestions. . .

.. . 1. Does there exist a gap b~twccn customers cxpcctatiorls and service

delivcry by thc couricr scrvicc providcrs u d c r study'?

If any, what: is the levcl of thc gap?

Quality or price - which motivates the buyer of courier services?

What is the rclitionship betwccn quality and price in thc marketing of

courier services.

How is N11'OSrT competing with othcr couricr scrvicc providers?

(Comparative Analysis).

Why do custo~ncrs prcl'cr onc couricr scrvicc to the otller?

8 What factors influences customers to favour most a particular service?

9 What are the new luxurious Bus courier services doing (eg. Ifex, ABC

Express etc.) and what tl~rcats do thcy lwsc Ibr NII'OS'I' allti otllcr

courier companies'?.

1.3 OBJEC'CIVES OF 'TI-IE STUDY:

The objectives of the study among others are:

(i) To ascertain if thcre is a gap or dil'l'crc~lcc betwccu scrvices expectations

and actual perfomance by thc two couricr scrvices providers under

study, and to what extent.

(ii) To ascertain i f the gap has kc11 ~csponsiblc for the poor pcrfonnancc of

EMSIspeed post in terms of sales figures.

(iii) To ascertain the role price and quality has played in boosting the

demand for EMSISpeed post and /or Dl-IL scrviccs.

(iv) To ascertain the cause or quality gap i n EMStSpccd post scrvices and

the price gap in DI-IL serviccs.

(v)

( 4

(v i i)

(viii)

(1X)

1.4

I 0

To asccrtai~l tllc sclatio~isliip Ixtwccn pricc a~id quality witli rcspcct to

the services providcd by EMS/Spccd post and Dl I I,;

To determine the service provider customers prefer more between

EMS/Spced post and Dl-I L.

To compare the performance ot' t l~c I'MS/Spccd post and thc usual

couricr services likc DI-IL, IAS, UPS, I<cd star cxpscss etc.

'1'0 ascertain the threats (if' any) which thc ncw Bus Couricr scrvices

pose for EMSISpeed post.

To make useful recommendations Sor improvement and efiicient

perfor~nance of courier services:

I IY 1'0'1'1 I ESES

For the purpose of this study and to efi'ectivcly tackle the research

problem, this research will use some hypotheses as tentative solutions to the

study. The hypotlmes will bc tcstcd to confirm tlicir validity.

We will reject all null I~ypotl~cscs and accept all altcsnative hypotheses.

The Null hypotheses to be used are:

( I ) Ho: customers would not prefer to pay higher Tor optimium services

Quality

b

1 1

1-1 1 : Customers woulcl prcl'cr Lo I)ay Irigllcr lix opti~llii~~ll S C ~ V ~ C C '

quality.

( 2 ) Ho: Both DHL, and EMSISpccd I'ost arc cclually cl?'cctivc and

efficient in thc managcmcnt ol'mails.

I li: Dl 11, is ~dalivcly inorc cffcctivc and cllicient in the ~nanageinent

of mails than EMSISpcccl Post.

(3) Ho: Conducive work cnvironmcnt an tlw availability 01' ncedcd

physical facilities do not enhailcc cll'cctivcncss ard cSficicncy of

operations

H 1 Conducive work environment and the availability of needed

physical i'acilities enhanccs cl'lcctivcncss and efficiency of

operations

(4) Ho: The relationship between Both companies prices and quality are

adequate

I4 1 : The relationship bctwcc~l Dl IL priccs and quality is bcttcr than

that of EM SISpxcl Post.

12

1.5 SCOPE OF '1'1 I I< S I I J DY:

An indepth analysis of quality and pricc in scrvicc industries, no doubt

is beyond the scope ol'any research of this nature.

For the purpose of this study, attention will I'ocus on quality of services

offered by selected organisation in terms or customcrs cxpectations and

perception of dclivery and how this rclate to thc pricing strategy adopted by

organisations. '1'0 this cnd, thc study will bc narrowed down to EMSISpeed

post and Dl-IL Serviccs at lkcja and Lagos Island tcsritory lbr easy handling .

This does not mean that other services industries may not be mentioned

for a more dctailcd discussion, rathcr the study will be based purely on courier

industry and the findings will only act as guide to other scrvicc providers i n

their planning activitics.

1.6 SIGNIFICANCE OF TIIE STIDY:

The main objectives of cvcry husincss concern that is prolit orientcd is

to maximizc prolit and his can olily bc acl~icvcd wllcll tllc customcrs are

satisfied with the product or services rcndcrcd plus colliiol of a largcr sharc of

the market. .

I-lowever, when this objective is riot attai~ied or sustainctl duc to short

falls in projections, management tend to shift blame among the~iiselves. 111

most cases the lower level staffs who may not bc directly responsible for the

sliortl'alls arc madc scape-goats. In such cascs, organisational growth is

hampered as tl~c real cause of tlic lapscs has not bccn tliag~ioscd. I t is only

when the real cause of the problem is determined and diagnosed that lasting

solution and bc hund.

This is wl~erc the significance of this study comes in. EMSISpeed post

has been faced with dwindling fortunes for quite some time without any clear

understanding for the real cause of the problem. NII'OSI' as it seems, is losing

money due to ignorance OF the main causc 01' business hilure and lack of

understanding of thc relationship bctwccn pricc and dcinaiid h r couricr

services.

In his study, we will attcmpt to ascertain tlic actual causc ol' thc poor

performance of EMSISpeed post and what should bc donc to correct thc

situation. It will also help other service providers to understand the peculiar

nature 01'-service marketing and t11c role quality has to play in influencing

demand for their services.

14

Otllcr rcscarcl~crs a~id ~ c l ~ i i i i ~ ~ s wlw lllily I x ~ I I ~ ~ I - C S ~ C C ~ in

conducting ii~rtllcr study on this i~rc i~ nlay I ? I K I this work I ~ a ~ d y as basis Sor

their research.

Most importantly, the study will help turn the attention of policy makers

in the service industries from the colwcntional issucs 01' pricc as stratcgy for

competition to another equally important Sactor Quality and generally help in

ensuri~~g i ~ q x w c d C O I ~ S U I I I C ~ services,

1.7 LIMITATION 0 1 7 STUDY:

The study encountered some limitation. Titne and linancial constraints

did not pcrnlit thc rcscarchcr to covcr all thc Local Govcr~mcnt Ascas of Lagos

State for the purpose of data collection. Based on this, data was collected from

respondents in Lagos Metropolis.

Also the bureaucratic bottlenecks encountered in trying to get

inibrmation or materials Srom thc organization plus attitudc of somc

respondents to question all constit~~tc a litnitation to thc study.

Obtaining mail traffic statistics li-om some private couricr Iirnls lbr

comparative analysis was di llicult.

[ ' I lAl~'l'lCl< 'I'WO

REVIEW 01; I<13LEV13NrI' LIrI'I<KArI'UHE

Altllough mail dclivcry scrviccs, an oll' short 01' co~llnlunication is not

that ncw in Nigcria, a lot 01' dillicultics was c~icou~ltcscd i n linding a

Y comprehensive and exhausive work donc 011 the subjcct that rellects the local

setting in Nigeria. Even foreign books consulted could not produce enough

information [or a rcsearch ol'this nature.

I-Iowcvcr, not witllstanding thc sllortlilil i l l litcsaturc to this study, a

particular research on service quality by threc researchers, namely Velorie

Ziethalml, A. I'arasuramn and L. L. I3csry wcrc lbund very uscl'ul and we

would draw Srom their cxpcricnce and guidclincs in the course oS this study.

Also the vicws oC some autl~ors in this arca will bc considered.

For the purpose of this review we will look at the concept of quality in

service, the concept of price and its effect on demand for services, relationsl~ip

between price and quality in service marketing, shortfalls i n scrvicc quality,

and management role in service quality.

17

2.1 'I'IIE CONC1SI''I' 01; QIJAI,IrI'Y IN SIZItVICISS

'rhc clncrgcncc 01' scrvicc i~dustry i l l ~*cccnt tiliic cspccially si~lcc tllc

advent of structural Adjustment Programme (SAP) which made economy

unbearable for manul'acturing, has placc scrvicc quality as a ccntral issuc in

today's Nigeria. This is true ii'considcred the fact that thc productive scctor of

the economy has co~npletely been taken over by service industry.

Everyday, we arc conli.ontcd with promotional messages through

various media by the service providers trying to convince us on their

determination to ofl'cr thc bcst quality scrviccs. I~~cidcntally whilc thcsc

messages are going on, one is also l'accd with the co~nplaints of these

co~npanics inability to dcliver thcsc quality services. As a result of this short

fells, one is compelled to ask the reasons fi>r such situation. I'crhaps one will

be right to say that the reason is due to lack of accurate knowledge of the issue

of services quality by these service providers.

Whereas it is easy to mcasure and control product quality cvcn before i t

is put out for sale, i t is not that casy to nlcasurc scrvicc quality by the providcr.

Garvin (1 983: 657) define product quality as conlonna~~cc to manufacturers

or the scrvicc providers lics i n tllcir lack ol'lwowlctlgc ol'wllat custolncrs really

cxpect liwn them.

Subhash .lain (1993:417) ccli~ally agreed with otllcr autl~ors that lllc

custolner is thc central issuc in scrvicc quality measurclncnt whcn he state that

the ultimate objective ol'quality sl~ould bc to delight tllc custo~ncr i l l cvcry way

possiblc provicli~ig lcvcls ol'scrviccs that arc Ixyond Iiislher expectations.

'~hcsc vicws as cxhibitcd by tlic various autliors Ici~d crcdc~icc to the fact

that in terms of service quality, customer's needs and specification at price that

r 7 the customcr is willing to pay, is what dctcrmi~ics quality Icvcl. 1 hat is to say,

the custo~ner is the final arbiter in the court ofquality.

This is true if we consider what happens when a customer has an

alternative, such as we have in this case. Experience lias' shown that the

customcr ~nakcs the choice of which firm to patronize based on his perception

of the co~npeting fir~ns.

Therefore, the mangers of EMSISpeed post DHL and any other courier

service firm can be said to be offering good quality services only wlien thc

customer agrees that his /her expectation of fast, reliable and efficient services

re being met. Anything short of this, creates a gap in service quality.

According to Zeitheml et a1 (lbid: 51-69) customers do not evaluate

service quality solely on the out come of services but also consider the process

of service delivery. The implication of this statement is that the quality of

scrvice cspccted of EMSISpccd post, Dl I I, a ~ d otlicr competing courier

20

scrviccs providers goes I)cyot~l sl)cccly clclivcry 01' tnails to thc case of

transaction and othct- issucs. Thcsc othcr issucs as identified by the authors ,

The ability to perl'orm the pro~niscd scrvicc dcpendably and accurately.

'I'hc appcarancc ol' physical lilcilitics, ccluipmcnt, personnel, and

communication ~natcrials.

The possession of the required skills and knowledge to perform the

services.

Politeness, respect, consideration and friendliness of contact personnel.

The willingness to help customers provide prompt service.

Sccurity in terms of fiecdom fYom dangcrs, risk and doubt.

Approachability and ease of contact.

Trustworthiness, believability, and honcsty of the service provider.

Making enough effort to know customers and their needs.

Keeping custotners inlbrtncci in languagc thcy can listcn to and

understand.

For a service provider to be ratcd high by custo~ners in terms of quality,

hc must not only be secn to dclivcr on his pro~nisc, thc proccss of providing the b

service must mcct tlic cxpcctatio~l of tllc custo~~lcl-s. Zcithaml and his fcllow , I

mscarclier grouped tlicsc C X ~ C C ~ ~ ~ ~ ~ O I I S into livc viz. 'I'ii~lgihl~s, llcliability,

Responsivcncss, Assurancc and empathy.

In summary, the discussion above points to tlic, fact that no courier

company can boast ol' high quality scrvicc il ' i t is delivering customers

documents later than expected and 1 or offering the services is unsatisfactory to

the customcr.

2.2 'I'IIE CONCEIB'I' 01; lBl<ICE AND I'I'S EI;1;ECrI'S ON DEMAND:

Price as a concept can be viewed from two main perspectives. One is

that which vicws it from the sellers position whilc the otlicr is liom the buyer's

position.

Montgomery (1988: 167) dcscribed pricc as "List price" and 'Market

price'. When price is loolced at thc amount of moncy thc scllcr rcquircs tllc

buyer or customcr to pay lor a product or scrvicc, i t is "List I'ricc" but whcn it

reilects what the customer is actually willing to pay, i t is called "Market

Price".

The set of prices that exist in a particular marlcct is dctcr~nined by many

variables which include the naturc of thc markct. For instance, u~~clcr a 4

this is not obtainable market in a co~npctitivc ~narkci.

The principles of pricing apply to both goods and services affect the

strategies adoptcd in thcir pricing. Also ol'notc is the lbct that in marketing of

-- goods, "prices" one used to tiescribc what is paid or payablc, whilc "latcs" onc

~ ~ s e d in thc casc of markcti~ig ol'scrviccs. I n this study, this two words will be

The basic law of demand states that the lower the price of a commodity

(good or services), the higher the quantity demanded of that commodity, all

things being. However, all things might be thc same. By i~nplication, the low

states that the lower the rates of EMSISpeed post services, or any other courier

services, the larger the number of mails sent through services, all things

(including quality), being equal. But a risc in ratcs, is cxpcctcd to be lbllowed

by a decline in patronage all this being cqual.

I-Iowever, in a co~npetitivc niarkct, thc conccpt ol' price also play a vital

role. This is so because the price of one co~nmodity affects the demand for its

close substitute. ,That is to say, a rise in the price for a product or service will

23

C ~ L I S C a I;III i t 1 clctiimid Ibr tl~at p d c u l i ~ r product with dcmat~d sliilling to less s.

priced substitute, cetcris paribus. t I I I

The implication of thc abovc argumcnt is that since EMSDISpced post is

competing with other courier lirms like Dl-IL, IAS and even the new Bus

dclivcry services, a risc it1 tlic rate 01' llic o t lw sc~vicc proviclcrs S I ~ O L I I C I CiluSC

customers to switch ovcr to LiMSlspecd post with lower rate provided all other

! ' , * h { a;*.,

Lovelock (1 99 1 :240) observe that service organisation may be eager to

attract the largest possible number of customers using low price strategy but

custonlers often prefer to use servicc whcn t h y arc lmt busy or crowclcd. 111

other words customers would prefer to transact their business with any service

provider without to be asked to wait duc to large numbcr of customer to be

attended to at that period. His argument is that pricing to maximize use or

attendance is not necessary pricing to maximize revenue. According to him,

much depends on the extent to which a change in price affects demand, that is,

the willingness of people to buy.

By implication, one can say that thc low-pricc strategy adopted by

EMS/Speed post may not necessarily mean that revenue will bc n~axi~nized

4

24

since the price elasticity ol'dcmand l'or couricr scrviccs have to be determined

and wc also have lo cnsurc lh;lt ill1 0tI i~r lilc1or.s 111111 ~IITCCIS dclil;~nd arc equal

among firms.

From the elasticity of demand, whcn price elasticity is ~ ~ n i t y (ic. Ed.= 1 ),

a certain percentage change in price will result in a proportionate change in

quantity demanded of that product all thing being equal. That is to say, a 20%

increase in the rates for courier services, a corresponding 20% decline in the

quantity demanded of courier services is envisaged. Whcn a small change in

price rcsult in a disproporlionak changc in qualitity dcmalidcd ol' tliat product

(ic, Ed < 1 but >inlinity), the demand I'or that product is said to bc pricc clastic.

If a certain change in price however results to no changc or highly negligible

change in quantity dcinanded of that product (ic Ed> I but < 0), then the

demand for that product is said to be inelastic.

According to Lipsey & Stcincr, if dcmand is' clastic, a fall in price

increase dcmand and vise-vcrsa. 111 otllcr words, if tlic dclna~id I'or couricr

serviccs is elastic an increasc in the ratcs by I~MSISpccd post will rcsull i l l

people abandoning it and seeking alternatives, thereby reducing the demand I'or

EMSISpccd post.

111 co~iclusio~i, tlic corlccpl ol' pice a~ld its clbI'cct on clcl~la~ld is such that

in a compctitivc sctting wllcl-c allcmativcs abound a ~ l d tllcrc is custolncrs

freedom to choose, price always have impact on demand provided other

factors that affect demand are unchanged. That is to say, in other for pricing as

strategy to have effect on (Ic~nand for a product or servicc customers

cxpcctatio~l must bc mct ii~ld this i~lvolvcs siltisf~ing otllcr I.~IC~OIS such BS

quality, security of service rendered, time, speed, well trained personnel etc,

that effects demand.

2.3 PRICE /QUALITY RELATIONSHIP:

The relationsl~ip betwecn thesc two wcapons of ~narkcting "Warfare"

can be described as complementary: o~ic must bc use to complement the other

for maximum effect.

As pointed out-by Shaughessy, (1992:199) customers would like the

extra quality and yet may not be prepared to pay for it. To him, quality in a

sense is always quality within some price range. One cannot talk of quality

without talking of the price and it would be suicidal for a firm to compete only

on one of them especially in a situation were rival fir111 are using both. This is

where thc low pricc stratcgy adopted by LMSISpccd post comc into f'ocus.

Al llloupli tllc low price stla tcgy adopted by EMSISpccd post will tend to attract

customers but customers would want best quality of services. That is to say

EMSISpeed post pricing strategy must bc ofl'ered with good cluality services for

it to achicvc the clcsirctl ol!jcctivc. Apart li-o~n ol'l'cri~lg lower rates, t11c1-e are

--. also cxpcctctl to ol'l'cr co~nparablc qualily O~ 'SCI .V~CCS with c011qxtitors.

Some private courier companies on their own side adopted high quality

services with high pricing system to mcct the cost involved in providing quality

services that will meet customers expectation. DHL for instance, is known for

high quality courier services but with relatively high ratcs. Thc high rates

made DHL service exclusively for the rich and cooperate bodies. Other rival

private courier firnls capitalised on this lapscs to win ovcr some customers that

would have preferred DHL services but lor the high rate. In response, DllL

lowered its prices by creating special discount tariffs , while maintaining its

quality services. Philips et a1 (1983:26-43) discovered in thcir research that

high product/service quality enhanccs business as measured by return on

investment and that the widely held vicw that high quality position was

incompatible with low cost position was incorrect.

27

Ecklcs (Ibid: 100) s ~ c l this vicw by arguing that lligll quality

actually lowers a linns cost of doing business because quality products means

fewer rejccts, few rcwork, morc busi~lcss gc~~cralctl by I~appicr customcrs and

an opportunity to face lowcr level of market resistance.

Although tllc idca ol' i~lcrcasi~ig busi~lcss is ill contrast with the earlicr

argument about customers preference to a crowd frce environment for business

purposes, we agree conlpletely with the two authors,. The problem of crowd

can be taken care of by opening more busincss outlcts and countcrs to reduce

the average time spent in serving a customer. If EMSISpeed Post increases the

quality of its services, it can generate enough busincss that will cnablc it rcducc

its cost of operation and justify the low price strategy adopted.

2.4 GAPS I N SERVICES QUALITY

The decision as to what constitutc acceptable quality is mainly the

prerogative of the customers as we stated earlier. A,

Quality judgement is tl~crcli>rc I)asccl 011 what l l~c c u s l o ~ ~ ~ c f i cxpcct ol'

the service provider and' what perception they have about his performance.

This scenario presupposes that some inanagers of-' service industries do not

easily know before hand, some of the criteria for the evaluation of their

cxpcct to gct. Valavic A.%cill~n~al ct al (Ibitl) i l l tllcir worlc dcscribc this

differenccs as "gaps". They catcgorized this gap into four distinct dimensions.

2.4.1 Gau 1 - Ascerlaininrr Cus1onic1-s Exucclalioli:

, 7 I his was clcscribcd ils one of tllc nlost common o r thc gaps wlicreby the

managers assunic customers acccptancc 01' their off'cring or that tlicy are

learning enough to understand the need of customers while sitting in their

offices. The researchers identified lack ol' markcting research orientation,

inadccluatc upward co~nrnunication aucl too many linc of authority as some of

the hctors responsible for the existence ofthis problem.

To solve this problem, they rccom~l~endcd that managcmcnt should

embark on research to determine what customers actually expect from them.

They were also advised to i~nprove on comn~unication between the lower

officers so that vital information from these people who are closer to the

customers can be of help in decision making. They advocated for a good

internal control system to bridge this gap.

Setting standards is a vcry ciil'licl~lt task cspccially when it has to do

witli scrviccs quality givc11 the lhct that customcrs cxpectiition are always

difikulty to meet. 1-lowcvcr, tlic authors attributed tllis difficulties to a number

of reasons such as resourcc constraints, inarkct co~aiition, short term profit

orientation and management indifference.

Management commitment, perception to feasibility, task standardization

and goal setting wcre idcntilicd as contributing factors to this gap by the

authors.

For management to close this gap created as a result of wrong standards,

tlicy rccommcndcd that thcrc should bc co~nmitmcnt to quality by all mcmbcrs

of staff, management inclusive, also possibilities must be created to achieve the

standards, tasks should be standardizcd to ensure uniformity in cluality delivery

and that goals should be set for service quality.

Thesc rccon~mendation if takcn note ol' by privatc couricr cornpanics

and particularly EMSISpeed post manages will cnliancc elTiciency and

customers patronage.

30

2.4.3 Gap I I l - Gap I n Service ~ ' ~ ~ S O I ' I ~ M I I C ~ :

Scrvicc pcrlormancc gap is rcl'crrccl to as the dil'lkrcncc betweet1 service

performance specification and the actual service being provided. Thus, if

EMS/Spced post or any other privately own courier service provider fail to

deliver letters or packages within the specified time frame, say a day, within

Lagos metropolis, as part of.' managcment service directives, then there is a gap.

he authors attributed this gap to such ['acts as rolc ambiguity, role

conflict between employees, poor employee/job fit whereby the right

equipment for effective con~munication and conveyance' of mail are not

available, lack of perceived control, lack of team work, and inappropriate

internal control system.

To close this gaps, they recoinmel~ded that each employee's role should

be closely defined so as to eliminate conllict in roles, improvement in

employee-technology-job fit as well as measuring and rewarding service

performance. Also measures to empower service employees to deal with

problems that arises in the coursc ol'tllcir dutics, building of tcam work as wcll

as concerted effort to manage external custolners were recommended.

2.4.4 G i 1 ~ I V - - C ; i ~ p I ~ ~ W W I I 1'1-OIII~SCS Au<l 1)clivct-v:

It is C O I ~ I I I O I I to I I C ~ I ~ C O I I I J ~ ~ ~ C S 111i1ke captivating promises to impress I

cuslomcrs so as to get their attention. Evcn EMS/Spcctl post in its hand-bills

and such o t lw ~ ) ~ O I ~ I O ~ ~ O I I ~ I I ~~li~tcrials promises "I'ast~st delivery nation wide".

The implication of thcsc promiscs which oftcn is not rccogi~~~isccl by scrviccs

providers is that custon~ers expect them to deliver on their promise. They fail

to realize that a customer relies on the promises made by a services provider or

a company when such customer do not have basis for setting standards, and

when such promises are not met, he is dissatisfied and ratcs thc company as a

low quality service providcr. .

Marketing communication are used to making promises about service to

be rendered by employees without considering the that fact l ~ u ~ n a n being

cannot be predicted easily or controlled like machines.

The authors noted that there is always the risk of over promising and this

operations, sales and opcration bctwccn lluman rcsources, marketing and

operations a well as the provisio~~ of consistent scrvices across outlets or

2.5 MICNAGICMI~N'I~I<OI,I~~lNSlCI<VI~~~~S~~~~~~'~'~:

The effective i'unctioning of any organisation can not be achieved

without the commitmcnt of thc top mn~lngcmcnt ol'thc organisation.

Quality behg an i~nportant ingredient in any service organisation require

l'ull understanding and commitmcnt or' thc managcmcnt who must idcntifjl the

customers expectation and creates the enabling environment for its

satisfaction.

Zcithaml ct a1 (Ibid) cnumcratcd thc duties ol' inanagcment in scrvicc

quality and t h y arc sunmarizcd as Iollows:

Using marketing research effcctivcly.

Researching on customers expectation.

Increasing management and customers interaction.

Providing clear unambiguous rolc Tor cach cmployce.

Improving upward communication.

Committing to quality.

Eliminating role conllict.

Gaining the commit~nent of both middle and lower management staffs.

Tasks standardization.

(10) Dcvcloping appropsiatc arlcl cll'cctivc conmimication about scrvice

quality.

(1 1) Improving employee - technology -.job lit.

(12) Setting service quality goals.

(13) Opening channels of' co~n~nunication among the sub units of the

34

I< I C I W I< 14; N C: ICS

Ecklcs, I t . Busincss Marketing managelnent Engle wood

ClilT,Ncw Jcrscy I'ri~ltcrs I lall Inc. ( 1000).

Garvin, D.A. "Oualitv On thc linc" I-Iarvard Business Review,

september-October. ( 1 983 :637). i Montgomery, S.L. I'roiitables. Pricing strategies New York,

Mccl-aw Hal! Inc. ( 1988: 199- 125) I

Malhotva, W. K. ct a1 "Scrvice Quality International Marketing

Review Vol. 11 No. 2

Parasurman & Berry, Marketing service: Competing Through

Quality.

Philips et al. "Product Quality, Cost Position and Business

I'crfori~~ance; A tcst of' somc kcy I-Iypotl~cscs" Journal of

Markctiw. No. 47 Spring (1083:20-24)

Shangnessy, J.O. Colnvctitivc Markcting- A Strategic Approach.

London; Ronthedge. (1 992: 1 99)

Subharsh, J Marketing Planning & Strategv Ohio, Southwestern

Publishing Co. ( 1993:4 17)

Zeithaml et al. Delivering Oualitv Service; New York; Free

Press. ( 1990: 1 5) I

Zeithanll et al. Dclivcrina Oualitv Scrvice; New York; Free

Press.(Ibid: 5 1-69)

C l l A I D ' l ' l ~ ~ l ~ '1'1 I l<IClC

I<ESEAI<CII DESIGN AND ME'I'IIODOLOGY:

The research is designed to test custoiners behaviourial pattern and to

dctermi~lc what inllucnccs thcir buyi~lg tlccisions. 'I'hat is to say, the study is

explanatory in naturc and to trcat it with all tllc objcctivity it tlcscrvcs, tested

research instrument will be culployed.

The guiding principle in the course of this study is the need to arrive at

realistic conclusioi~ through proper data gathering and through analysis.

3.1 SOURCE OF DATA:

In carrying out a statistical inquiry, the investigator or rescarchcr could

collect the necessary data himsell-' or dccide to cxtract data lYom alrcady

published sources if available. Hence, with regard to the source of data, we

distinguish two categories of statistical data namely, primary data and

secondary data. !

For the purpose of this study, both primary and secondary sources of !

data were explored.

1 . O l<AI , I N'l'lCl<Vl ICW:

Orill i ~ ~ l c ~ v i c w i~~volvcs l l~c collcclio~~ 01' ~ I ~ ~ ~ ) I * I I I ~ I I ~ ~ ) I I I~)I.II\ ~ ~ c s ~ ~ o ~ ~ t l c ~ ~ t s

on a face-to-tkcc basis. 'Thc advantage is tlic opporlunily i l l cxplai~li~lg solnc of

thc questions in which the respondent would not have understood in a normal

questionnaire and also afford the researcher the opportunity to judge before

hand, when a respondent is making Salsc cleclarations.

Both commercial manager's of NIPOST and manger EMS/Speed post

(Lagos Territory) as well as the commercial inanger DHL (Lagos territory) I

were a11 interviewed. Few members of the public were al{o interviewed plus

some new luxury bus courier services operators.

2. QUICS'I'IONNAI ItIC:

r . I wo scls o!'qucslio~lllaircs wcrc tlcsig~lccl am1 acl~llinistcrcd, onc to thc

customers, one to EMSISpeed post staf'f and DHL staffs.

The questionnaires were structured to contain inore questions than the

rcscurchc~. woi~lcl have Ili~d L i l w to ask in a n oral intcrvicw.' And also to afford

the respondents thc opportunity to think ovcr a cpcstion bcfbrc answering.

The questions consisted of both closed and open ended types.

1. Open Ended Ouestions:

Open ended questions are question framed in such a way as to elicit

responses from inncr thoughts of thc rcsponclent. They were used to collect

information that would have been ilnpossible in a YesINo types ol'answer.

ii. Close Ended Questions:

These sets of questions form the bulk of statements contained in the

research instrument. They were meant to guide the r&pondent and avoid

collecting excessive and irrclcvant inhrmntion. !

othcr pcoplc othcrs than rcscarclw. For this rcasoli tllc sccondary data arc

often faulted. In this study, sccondary data wcrc collcctcd / n oldcr to augment I

the primary data so as to enable thc rcscarchcr analyses objectively. 1

The annual rcport 01' NII~OSrI' (Lagos territory), bl-IL ncws bulletin,

Ncwspapcr, pcriodicals, joumills and textbooks lbr~llctl tllq sccondary sourccs

data for this study. I I

I .

* . 11.

iii.

3.2

need

Offering a guide for the study; and

Providing a basis for co~nparism of finding.

POPULA'I'ION SIZE

It is we11 known fact that not all who uses

for EMSISpeed post services, DI-IL services

the postal system have the

' or courier service of any

kind. Only those who have urgent need for speedy delivery of their mails make

use of this service, they were identified as business orgainsation self employed I

professional and few private individuals. 1

The population for this study is determine by total number of business

organization, self employed professional and private individuals that patronizes

the courier services in Nigeria, and the members of staff of both EMSISpeed !

post and DIIL. ~

This population formed the basis for our sample size determination and I I

selection and was done as shown below.

From the internal records of both companies, the population size of their

staff is known to be 12 for DHL and EMSISpccd post 16. ~ c n & the

40

populalio~~ s i x lbr stall' of' this s t i~ ly is 2X. 'Illis is tllc acltlitio~l ol' tllc staff

strength 01' both companies. I lowcvcr, the population size for customers

cannot bc dctcr~nincci.

3.3 SAMPLE SIZE DElEIIMINA'I'ION: 1

Owing to the fact that the researcher cannot survey the entire population

of customers that uses courier services in Lagos an appropriate fraction was

determined to from the sample size.

3.3.1 Samulc Sixc Dctcrnrination For Custonlcrs.

As earlier stated in 3.2 above that the population size of customers

cannot be determined, the. researcher conduced a pilot survey to determine the

number of customers that have used the services of both EMSISpeed post and

DHL to deliver mails and other items.

For the survey, 30 respondents were selected randomly from the I !

population size groups.21 (70 percent) of t l - ~ respondent ~o~nf i r~ned they have I

used the services of both co~npanics, whiic tllc otllcr 9 ( O percent) of the 3 respondents have not.

Using ~ o ~ m a n ' s formula, the sample size for customers was determined

Where

z - - Value of Z- score associated with degree of confidence selected.

P - - Probability of Positive response

Q = Probability 01' ncgativc rcsponsc

L - - Limit of standard error.

Thus Z = 1.96, I' = 70%, q = 30%, e = 5%

substituting

3.3.2 Simplc Sixc For Stilll'

Thc rescarchcr involved all thc stall'of the companies bccause thc would

be easily managed. The sample sizc li)r stat'l'includcs

LMSISpccd posl, I kc.ja/Lagos I s l a~d s 12

Dl-IL, I kcja/Lagos Island 16

'Total 28

3.4 SAMPLE SELECTlON METHOD

Stratilied sampling tcchniquc will be used in sclcction ol' thc samplc

sincc thc population 01' intcrcst varied slightly and had lo be divided into sub-

groups for effective coverage and analysis.

3.5 METHOD OF ANALYSIS

We made use ol'pcrccnlagc, lablcs, and s~atis~ical tools in the analysis of

data collected while Topman's Ibrmular was used in the testing of hypothesis. ! I

DATA PRESENTATION, ANALYSIS AND INTERI'HETA1'ION

4.0 INTRODUCTION: I The wealth of data collected with the appropriate research

instrument Questionnaire and intcrvicw wcre, prcscnted and

analysed with frequency distribution table for easier understanding

and consumption. The data have relevant solution to the subject of

this study.

4.1.1 Qr~cstionnairc Administration Am1 licturacd

It is worthy of note that out of the 351 questionnaire forms

produced and administered to the respondents for the this research, 300

forms were carefully and corrected filled and returned forms represents 14

percent. The 300 forms are from the customers and staff of both

companies 280 customers returned their forms filled whle 20 out of 28

staff returned theirs. 10 questionnaire forms each cam; back from both

companies.. The tables below show a summary of ihe questionnaire i

i

dist~ibuted and returned. i

I Staff

Companies

I I I I

Source. Field survey 2001.

EMSISpeed post

Distributed

16

Returned Percentage returned

10 63

4.2 QUKSrI'IONNAII<K FORMS ANALYSIS. I

I

Table 4.2.1: 'I'lrc ftrctors, Clrtrt ;rCir;rcis costonrers ~rrosl ol'lch.

Responses

I Safety of mail I 3 1

I~requencies

Price

Quality and Price

Fast delivery

I

The table 4.2.1 above show that 28(10 percent) and 22 (8percent) of the

i

22

64

47

Fast delivery and safety of mail

Total

respondents are influenced by quality and price respectively 64 respondents are 1

attracted more by quality and price, while 47 (17percent) of tbe respondents are I

- influenced by fast delivery. 3 l(1 I percent) of the respondentd are influenced by I

- - Quality

8

23

17

.safety of mails, while 88 (3 1 pcrccnt) 01. thc mspo~ldc~lts ard i~ttractcd more by

-- 28 1 0

Sozirce: Field survey, 2001. 1 I

88

280

the combination of fast delivery and safety of mail. I I

3 1

100 I I

delivery and safety of mail.

Table 4.2.2 'I'llc Quality of Courier Services is dcpcndc~it on tlic IDricc

Strongly agree

Agree

75

Strongly disagree

27

1 1 1

Disagree

I I I I

Sozirce: Field survey, 2001.

40

61

Total

The above table show that 75 (27 percent) and 1 1 1 (40 percent) of the

22

33

respondents strongly agree and agree respectively that Quality is largely

1 1

280

dependent on price while 61(22 percent) and 33 (I 1 percent) strongly disagree !

and disagree respectively that quality is clcpendcnt on price. i

1 Decision: The quality of courier services is largely dependent on price.

100

Table 4.2.3: Custo~~rcrs would prefer l o pity it lligllcr price for

improved quality.

t -I .-

Source: Field survey, 2001.

Strongly agrec

Strongly disagrce

Disagree

In tablc 4.2.3, 80(29pcrccn t)ancl W(34 pcrccnt) of' the respondents

strongly agree and agrec respcctivcly that custotners will prcfer to pay higher

price for an improved quality, while 54 ( I9 percent ) and 50 ( I 8 percent)of the

respondents strongly disagree and disagree respectively otherwise.

Decision: Most customers would prefer to pay a higher price for an

improved quality.

80 29

54

5 0

19

18

Table 4.2.4: Kcsponscs

The above data read that 162 (52percent) of the respondents agreed that

- 2-

Kcsponscs I ~ r c q i ~ c ~ ~ c i c s I'crccnttl~cs

I

their price is commensurate to quality whilc I 18 (48 pekcent) of rcspondent 1

I _

Ycs

No

Total

disagreed. I

i Decision: The price of services EMSISpeed post and DI-I is comnensurate to Y their quality.

Table 4.2.5: DHL pricing equatcs its quality. i

Source: Field survey, 2001. 1

1 02

-- 118

280

52

..-- L

-4 1

'IIlc pl.csci~ti\tio~l 01% I i I 4 . 2 5 I t i I I X X rcspo~~dcnt i

affirmed that the high pricc 01' Dl 11, is thc reason for their quality service, 92

rcspondcllts do not acccpt this I'act.

Decision: The Higher price chargcd by Dl-11, is tllc reason Tor their

quality scrvicc.

Table 4.2.6: Responses to whctllcr eustonlcrs like the interplay of price

a ~ l d quality in Both Cornpanics Services. i

I

In the above table, 159 (57 percent) of the I

Itcsponses

Yes

No

'Total

interplay of price and quality in both companies, while 1

respondents don not likc the inlcrplay ol'pricc ulld quality

:spondents likes the

. I (43 percent) of' the

01' both companies.

- -

Ih-cq ~~cnc i c s

- 159

121

280

I'erecntagcs 1

$7

43

1, i

I I ! J

50 I

Table 4.2.7: Respo~~ses to wlwtl~er EMSISpeecl Post ed~apetes (irvourably i

with DllL in courier services busiaess.

Sozrrce: Field survey, 2001.

The table 4.2.7 reads that 134 (47 percent) of the.respondents say that

i%rcentages

-- . - _ -- '3 5

'47 --

' 1 8

100

Kesponses

Ycs

No

Don't know

Total

EMSISpccd Post do not compclc lilvourably with DIlL, 97 (35 pcrccnt) of

Freqi~cncies

__ - -

07

134 -

49

--- 280

respondents agrec that they can nlatch, whilc 49 rcsponclc~~t call lot dctcrminc

I

whether or not they can colnpctc I'avorably. I

Decision: EMSISpeed

scrvice business.

I Post cto not co~npctc fi~vourably it11 I l l 11, in courier 'I

of tlicir scrviccs.

DHL 44

I

Source: Field survey, 2001

None

'rota1

Table 4.2.9: 'I'llc Company that hi^ a closer rcli~tionsliip with custo~ncrs.

52

-- .

280 -fI00

EMSISpeed Post

I 20

Total

Decision: Dl-1L has a closes relationship with custotness than EMSISpeed Post.

Decision: DHL keeps and ~rleets it promise inore than EMSISpeed Post.

Table 4.2.1 1: Rating of promptlless of service of both companies.

Very satisfactory 28

Unsatisfactory 15 p-1 53 k,

Vely unsatisfactory

1 I I I

Source: Field S U I ' V ~ ~ , ZOO/.

Total

58 21

136 144 280 100

l l z 'I'itblc 4.2.12: Kitti~rg of the ovcritll cl'licicncy ol'tlre two co~npit~ries.

Decision: In term of quality service, DHL is rated higher than EMSISpeed

Percentages

--

20

-- 48

18

-- - - --

14

100

Sozwce: Field survey, 2001.

Source: Field survey, 2001.

Vreq uencies

- ~ - ~- 57

--

133 .

5 1

30

- . -. . . . -- 280

I<espo~rses

Yes

No

Total

Decision: Quality is determined by the pricc of' the services

EMS

. - --.

I 0

45

. - 34

32

-.

130

Responses

. ~

Vcry satisliiclory

Salishclory

- --

Vcry unsalisfiiclory

Unsatisfactory

Total

Dt1L

38

88

- -

17

-- 7

-- -. -- 150

111 11,

8

2

10

- . -- - 1~1-cquc11cics

16

4

20

--

ISMS

6

4

10

-

Pcrccn tages

80

20

100

_ _ _ _ _ _ _ _ _ _ _ - - - -- - - - -- - -

liespo~lscs DIIl, EMS IJrcq~~cncics IDcrccnlages ---

Dcpcntlcnt 7 3 I 0 50

- - _ - I ndcpc~ldcnt 2 5 7 35

-- - pp - -- - . - Exclusive I 2 3 I5

- -- Total 1 0 1 0 20 100

Sotirce: Field strrvey, 2001.

Decision: In Dl-lL, Price and Quality are dcpcndcnt whilc i r l EMSISpeed Post

they are independent.

Table 4.2.15 Decree of effcctiveness of the i~lternid programmes for

improves qi~itlily.

- I'crcentagcs

15

6 5 - - - - - -

1 0

- -- I 0

100

- - - -- - Sowce: Field SLII-VCY, 2001.

- I~reque~lcics

3

P

13 . - - - --- 2

- - - 2

-- 20

. - - - -- -- - -

Respomes

Very effective

Effective

- Vcry incl'l'cctivc

-- --- Inef'fectivc

Total

.- --- -- -

--- D l i L

3

7

-0-

- - - - ---- -0-

-- 10

-- --

- EMS

-0-

6 - - -- - - - - - - - -

2

- .- - - - - - - - - 2

- 10

- -

are effective but more ei'fective in DHL.

staff.

incentive, EMS/Spccd Post arc not.

-

w i t h i n 24111~ ( 1 day) !

Within 96hrs (4 days) -0-

Within 120hrs (5 ( -0-

days)

- Above 5 days -0-

- Outside tIw Coontry

Decision: It takes Dl-1L 241iours @ 1 day to deliver mails within the country

and an average of 4 day, 96 hours for mail outside the country, while

EMSISpced Post use 48 hours i.c 2 days for mail within thelcountry and above

5 days for inail outside thc counlry.

Source: Field survey, 2001.

Decision: 'The relationship for pricing and quality for both organisation is

P c I - ~ c ' I I ~ ; \ ~ ~ s

20

adequate but better with Dl-11,.

1~1-cquc1rcics

82

- - . -- ..

4.2.19: Adcquntc work condition and cqr~ipmeot improves the quality of scrviccs.

ICMS

--- 28

- . . . -- --

Rcspo~lscs

Very satisfactory

- .- - Responses D 1-1 L

I) I I I.,

54

-- - Satisfactory

Very unsatisfactory

Ui~satisfactory

Strongly agree 5

Total 154 280

C,q-."

59 .

45

Agree 3

--- 34

2 1

16

66

15

I9

- .- -- -- - -- Ih-equencies Percentages 1 1

28

44

26

Source: Field survey, 2001.

58

L)ccisioll: Atlccluatc work condition and cquipmcnt i~q?rovcs the qilality 01'

scrviccs.

4.3. TEST OF HYPOTHESES

'The hypotheses adopted in this study werc tcsted so that the validity

would be conlirmcd. The decision rule herc is Reject all null hypotheses (H,)

whcn critical valuc is less than thc calculatccl valuc a ~ d Acccpt all altcrnativc

hypothesis (ti,) whcn calculated valuc ol'tllc tcst statistic is greatcr than critical

value.

4.3.1: Test of Ilv!~otl~esis Onc.

Iio Customcr would not 1 ~ A c r to pay liiglw for optimium scrvicc

quality.

I-li Customer would prclkr to pay highcr lbr optinlium scrvicc

quality.

Level of significance uscd is 5% ie cx = 005

The degrees of freedom is given by (k- I) ic t1.F = (K- I) whcrc K=

nun~bcr ol'colu~i~s = 4 - 1

= 3.

The statistical test is X2 = ~a E

Table 4.3.1

6. Computation of tlie test statistic using responses from table 4.2.3

"custoniers would prcfcr to pay highcr pricc Ibr an improvcd quality.

Coinparing the test statistic with the critical value. 20.47P-7.8 14.

Decision: Since the calculation value of X2 is greater them the critical

value, we reject tlie null hypothesis and accept the alternative hypothesis.

We tlierefo~e conclude "custoincrs would prclcr to pay higher for optiniiuin

service quality.

-- Responses

Strongly agree

Agree

Strongly disagree

Disagrcc

Total

-- 2-

( 0 4 )

100

676

256

( 0 - E 2 , ~

1.429

9.657

3.657

0

80

96

54

50

280

A

E

70

7 0

70

70

280

- - - -- -- 0 -E

10

26

-16

--

-20 -

400 5.7 14

20.457

4.3.2: 'I'csl ol' I lylwllwsis 'I'wo

1. 1 : Both Dl-IL and I<MS/Spccd post arc cclually effective and

ellicicnt in thc managcmcnt of mails.

1-1 1 : Dl II., is rclativcly more cl'l'cclivc and cl'licicnt in thc managcmcnl

of mails than EMSISpecd post.

3 The statistical tcst is Y I - Y 2

(Note: Z- test is uscd here bccausc the saliiple s i x is grcntcr than 30

Computing thc tcst valuc lbr Z using rcsponscs li.om table 4.2.12.

"lhting of tlic ovcrall clliciwcy ol'tlic two compn~iics.

I I I I Scale Vcry satisfactory = 4

. . .

EMS Frcclucncics Responses

Very satisfactory

Satisfactory

Very unsatisfiictory

Unsatisfactory

Unsatisfactory = 1

~ - -. - - ~ - - -.. .... ....

Dl-11, I~rcqucncics

38

88

. -- 17

7

I0

45

34

32

Variance = b22 = Zfy22 - &L$ T 'P

6. Comparing the critical value with thc tcst statistic

7. Decision from the abovc computation, i t is obvious that thc value ofthc tcst

statistic is gratcr than the critical or table value. I-lcnce, wc rcjcct thc ilull

hypothcsis and acccpt thc altcrnativc hypotlwis and acccpt thc altcrnativc

hypothcsis. Wc can thcn concludc that " I l l IL is rclativcly morc cSScctivc

and efiicient in the managemcnt o f inails than EMSISpced Post

4.3.3 'I'cst 01'1 lypothcsis thrcc.

. ( I ) 1-10: Conducive work cnvironmcnt and available of nccdcd physical

lhcilitics do not cnhuncc cllcctivcness and cl'liciency of

1.1 I : Colltlucivc wold< cllvil'orllllclll ill l tI 1 1 1 ~ ' i l ~ l l i l i l b l ~ ~ ~ ' I I C C ~ C C I

pllysical I'acili~ics c~llla~lcc cl'l'cctivc~lcss and cl'liciency of

operation

(2) Level of significance used is 5% ie K 0.05

(3) The degree of freedom is given by (r- I ) (k- I )

d. = (r- I )(k- I )

= (2- l)(4- I )

(4) The critical value is given as xZ3 0.05 = 7.8 15

(5) The statistical test is x2 = Z (0-J2j2 E

(6) Computation of the test statistic using the responses' from table 4.2.19

"Adequate work condition and equipment improves the quality of

services

Strongly agree I I 5

Agree 4 -1-5-

Strongly disagree M Disagree 1 - 2 1 5

7. Comparing the test statistic with the critical value

I0 > 7.815.

8. Decision: Since the calculatctl valuc of X2 is grcatcr than thc critical

value, we rejected the null hypothesis and accepted the alternative

hypothesis. We therefore concludc that "conducive work cnviron~nent

and the availability of needed physical facilities enhance efrectiveness

and efficiency of operation.

4.3.4 Test of I-Iypothesis Four

( I ) Mo: ' The relationship of both cornpanics priccs and quality arc

adequate.

6 7

1 I 1 : 'I ' l~c ~u la t io~~s l~ ip ol' 1 ) l 1 1 , ~wiccs i ~ ~ l t l qualily ol' scrviccs is better

Illan Il~c 01' I :MS/Spccd I'ost.

(2) Lcvcl ol'signilicancc used is 5% ic OC = 0.05

- 3

(3) 1 Ilc slalislical lcsl is

= y1-2

w n2

4. Thc critical value is Zo.05 = 1.64

Tablc 4.3.6

5. Computing the test vale lbr % using rcspwscs lion1 table 4.2. I t ) "l<aling 01'

the relationship of price and quality lbr both organisation.

Responses / DI-IL lieq.

Very satisfactory 54 -

Satisfactory 66

" ( Very unsatislhctory 1 l 5

/ Total 1 154

EMS Sreq.

Scnlc:

Vcry satisl*actory - 4

Satisfactory - 3

Vcry unsatishctory - 2

Unsatisfactory - I

T i t blc 4.3.7

Computing mean and variance for DHL

Variance = b21 = zfY2l - (@j$

Computing mean and variancc Ibr LiMSlSpccd Post.

Table 4.3.8

Mean = y 2 = 3Ua

126 2.4603 1746

y2 .= 2.460

6. Comparing the critical value with the tcst statistic.

7. Decision: from the above computation, it is obvious that the value of the

test statistic is grcatcr than thc critical or tablc valuc. I-lencc, wc rcject the

null hypothesis and accept thc alternative hypothcsis. We can then

conclude that the relationship of DliL prices and quality is better than that

of EMSISpecd Post. b

dcpcndcnt on their prices. And that customers would prcfcr lo pay

'I'lic cuslorilcrs co~ilirmccl lhal llic prices ol' 111 11, is Iiiglicr Iliati lhc

tllall IIMS/Spcctl I'ost 's scrviccs. I lowcvcr l iMSISpcccl Post priccs arc

lowcr bccausc thcy arc govwllncnt ow~lcd organisation that livcs on

. government financial assistance.

* Most customers prefer the interplay of price and quality of both

companies but prefer most the relationship of price and quality of DliL

to EMSISpecd Post. Thcy infact hold that EMSISpeed Post cannot and

do not compete favourably and effectively with Dl-IL in the business of

courier services.

* DI-IL not only meets and keeps its pro~nises to its customers illore than

EMSISpeed Post, but also has a closer relationship with the customers.

* While maintaining that quality ol'scrvicc is determined by price, most of

the customers agreed that the overall quality of the services of DHL is

higher than that of EMSISpeed Post.

* From thc rating of the interplay bctwccn pricc and quality it was

discovered that there is a direct relationship between the price charged

by both companies and thc quality ol'tllcir scrviccs.

Even though both companies have well instituted internal programme

for improving the quality of their scrviccs, thosc of DHL were rated as

being more effective than those of EMSISpeed Post. 1

*

*

1.

. . 11.

iii.

iv.

5.2

says

7 3

DI I I ~ I~:,S ~ilstcr spcctl oJ'tlclivcry 01' rllails l iw Iwth wihi i l and outsidc

the country than EM S/Spcetl post.

Dl-!I, slall' arc providcd il ~llorc co~ldi~civc working c~lviro~lrllc~lt and

adequate incentives than those of EMS/Speed Post.

Thc test of hypothesis rcvcnlcd that:

DllL is rclativcly ~norc cllicicll~ a d cll'cctive in the management of

mails than EMS/Speed Post.

Conducive working environment and the availability .of needed physical

facilities enhances effectiveness and efficiency of operations:

'I'ke relationship between DI-IL's price and quality is bettcr than that of

EMS/Speed post; and.

Customers prefer to pay higher for optimum quality services.

CONCLUSION.

The purpose of most business is creating and keeping custon~ers". So

Peter Drucker. When therefore a business organization creates

customers and fails to keep thcm, then something is wrong somewhere. 'The

focus of all marketing efforts should bc on thc satisfaction of the customers.

The surest way to ascertain when customers are satisfied is fi-om their repeat

purchase and from sales figures.

74

I ' l a~ l l tllc ;l~l~llysis 01' h t ; ~ i111d ( I I C ~ C C ~ S ~ O I ~ S waclml i n this study, it is

very clear that the quality 01' couricr scrviccs is to a large extent depend on the

price of services offered. To rcally iiicct the satishction level of custon~crs

lots of physical facilities, in form of equipment, motor vehicle, motor cycle,

good officelwork condition are needed. The workers need to be adequately

motivated for them to work with all their heart, mind and strc~~gtli. This i f

adequately blended or combined will go a long way to improve and better the

quality expectation of courier services. For these variables to be used by any

organisation means a lot of cost involve~nent which will be off setted by the

customers in payment for fast and safe deliveiy of mails. In this way quality is

largely determined by price while other things arc secondary.

Fortunately, the research reveal that customers will also pay higher for

better quality services. The is why DHL services is more preferred to

EMSISpeed Post services and customers willingness to pay higher prices for

their services.

It is my believe that if courier co~npr~nics can iniprove their services and

price competitively, custo~ners will always patronize their services. There will

be repeat purchase of their services.

Given the findings as recorded in this work, the researcher makes the

following I-cco~n~iicnclii t iw:

(i) A thorough marketing research should be conducted to identify

custo~ncrs prcscnt ~iecds I the couricr service cspccially from

EMSISpeed post. This is nccessary because you cannot satisb a need

except you know it exists, such research be contracted to an outside

agency to ensure objectivity. Also a good co~nrnunication link should

be establish between management and those that deals directly with the

customers, such as dispatch riders and countcr staff. This is necessary

because they deal more diiectly with the customers and as such

understand them better.

(ii) To ensure smooth and efficient operation a for~nal standard should be set

and maintained. For instancc, thcrc sliould bc a pick-up time for mails

which must be strictly adhered to. This is the only way of meeting dead

lines and also custo~ners conlide~lcc on the efliciency of the company's

scrviccs.

(iii) Periodic meeting especially for EMSISpeed post should be encouraged

by mmagelnent to create a good rapport among all categories of staff.

gathering and meeting is ncccssary bccausc it will enable them exchange

vital information that would otl~erwisc would have becn difficult under

formal setting.

(v) Attractivc i~~ccntivcs slwuld bc put in placc by ~nanagcnlent of

EMSISpeed post for stall's who meet targcts so as to motivates thcm for

higher performance. Awards should be given to outstanding staff to

encourage better result. This awards if meaningful and rewarding to

staff will further the objcctives of the organisation.

(vi) A good communication channel should be open by both management of

DHL and EMSISpeed post' betwecn i t and customers as a means of

crcating bcttcr understanding f'or a nwsc cflicicnt and cf'l'cctivc services.

Regular press session should be organised by management where certain

issues will be explained by management for better understanding.

(vii) Management or EMSISpccd post should imbibe tllc culture o f high

quality service and inculcate into some into all categorics of staff.

Customers satisfaction should the watch word of every staff and this can

only be achieved when there is commitment by management and lower

level staff feel that they are being carried along. b

(vi i i ) Obsolctc pllysical I i i l i s sI11cl bc rcplacccl. Conmunication

equipment, sorti~lg n~aclli~xs, a d convcyancc ~nodcs likc vclliclcs,

motor cycles, should bc improvcd particularly for EMSISpeed post.

These thing should be made more appealing and elr'ective for prompt

dclivcry of' mails i111cl I I ~ I ~ C C ~ S . All contact pcr.so~l~lcl sl~oulcl bc oric~ltccl

on the necd to bc ncat sincc tllcy arc thc imagc makcrs or the

organisation.

The findings show that pricc and quality go together and as such

EMSISpced post with its pricing stratcgy sllould adopt a priccs/quality

mix to make their services attractive to customers. This will

signilicantly close thc gap that cxist in its services. 'I'hat is to say

pricclquality mix is cflcctivc in scrvicc marketing. Pricc alonc is not

very essential in a customer's to keep using a courier company, so the

iirshion of the two will in increasc earning, for any service company.

(x) Management should also embrace promotional campaign. Carefully

planncd promotional campaign should be carricd out to highlight

positive changes. Sales promotion activi tics like gifts, discounts, etc

should be used to recaptur-c lost customers and kccp thosc left.

(xi) I:or 1iMSISpxd post, c~wugli li11li1 SIIOLIICI OC nladc available while

considcrablc l'ullding autolwwy slwuld be granted Lo Lllc management

rather the practice of having to get approval from head of NIPOST

bcforc any cxpcnditu~c 'I'llc idca 01' clla~lncling EMSISpccd post

generated revenue to other unit without enough to run it, should be

checked. I f this is donc t l ~ unit will I-ecapture is position in the

. - - ! C \' . .* r. , I , . . I * industry.

q P,pn :, r. \ Finally, if the above recoinmendation are implemented to the later,

EMSISpeed post will gain its pridc of place cvcn with the competition

from luxury bus courier services. However other courier service

cornpanics can benefit from ihis ~*cco~ll~iic~ldatio~~.

( 5 “Nigerian Postal Service: What

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ECKLES, R. ( 1 990) Business Marketing; Management

Englewood Cliff, New Jersey Prentice Hall,

1 nc.

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I3usi1lcss rl'i~ncs; August 6"'

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London: W.H. Allen

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MONTGOMERY, S. L.

NWOSU, I. E.

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(1988) Profitable Pricing Stratcnics Ncw

York; McCraw-I IalI lnc.

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organised by international Air Couriers

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Global Kays Acadcmic J'ublishers.

PHILIPS, L. W.: CHANG, D. R.; BUZZELL, R . D. (1983) "Product Quality,

Cost Position and Business Performance: A

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McGraw-Hall Book Coy.

SHAUGHNESSY, J , 0. (1 992) Cyqxti t ivc Marltctirlg - A Strategic

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Scrvicc, Ncw York; Free I'ress. 6

School of Post-graduate Studies, Department of Marketing, Univcrsity of Nigcria, Enugu Campus.

24"' August, 200 1

Dear SirIMadam,

I am a postgraduate students of the above mentioned department and

school undertaking an academic research on the Interplay of Quality of Price in

the Marketing of Scrviccs: (A compasativc case study of EMSISpeed Post and

DHL Services) as part of the requirement for the award of MBA degree in

Marketing.

You are please, required to answcr the clucstions on the attached

questionnaires which will be useful to the study.

The exercise is purely academic and all information supplied will be

treated with utmost confidentiality and will not be used for .any other purpose.

Your co-operation is highly apprcciatccl.

Thank you.

Yours faithfully,

Okereke, Rex C.

Qi~estion~~trirc I'ol-111 I'or custolucl.~.

1 . Scx: (a) mnlc 1; 1 (I,) Ik~nnlc I .I . . 11. Agc (a) 10 -25 [ 1 (b) 25-35 [ J ( c ) 35-45 [ ]

(d) 45-abovc [ ]

... 111. occupation: (a) Student [ J (b) civil servants [ I (c)

Business men/women [ ] (d) Apprentices [ 1

(e) others [ ]

iv. Qualification: (a) primary school cert. [

school Cert.[ ] (c) Graduate certificate [ ]

(b) secondary

(d) post graduate [ 1

1. What is it attracted you to the one you use most often (a) Quality [ ]

. (b) price [ ] (c) Safety of mail [ ] (d) Fast delivery [ ]

(1)a ( i i ) b & a [ ] (iii) c [ ](iv) c & d [ . ] (e )b .

2. Which company's services do you use most often? (a) EMS [ ]

(b) DHLC I

, 3. Why do you use the company's services most often?

(a) Nearness [ ] (b) Cheaper Price [ ]

(c) fast delivery of mail [ ]

(d) Safety of mail [ 3

4. Do you think thc pricc thcsc co~npanics chargc is adcquate for their

quality? (a) Yes [ ] (b) No [ ]

5 . The quality of courier company services is largely dependent on their

pricc. Do you agrcc'? (a) Strongly ilgrcc [ ] (k) agrcc [ ]

(c) strongly disagree [ ] (d) Disagree [ ]

6. Customers would prefer to pay higher price for an improve quality

service? (a) strongly agree [ ] (b) agree [ ]

(c) strongly disagree [ ]

(d) disagrce [ ]

7. Are the price of EMSISpccd Post and Dl-IL co~nnlensurate to their

quality? (a) Yes [ ] (b) No 1 ]

8. The higher prices charged by DHL is as a result of their quality services

( 4 Yes [ I (b) No [ I

9. EMSJSpeed Post prices arc lowcr, than that of DIiL because they are

government owned organization. Do you agrce?

(a) Strongly agree [ ] (b) agree [ ] (c) strongly disagree [ ]

(d) disagree [ 1 b

10. Do you likc tllc interplay ol'pricc and quality ol' tllc two co~npanics.

(a> Yes [ I (b) No r I

11. Do you think EMSISpeed post competes favourably with DHL in

courier service business. (a) Yes [ ] (b) No [ ]

12. Which courier company do you preler the price and quality of the

services most? (a) DI-1L [ ] (b) EMS [ ] (c) NONE [ 1.

13. Which of Ems1 Speed post and DHL do you think has virtually

operating and modern up to date equipment? EMSIspeed post [ ] (a)

DI-IL [ 1.

14. Which company have a closer relationship with the customers (a) D1-11

15. Which of the two companies keeps and meets its promise more? (a)

EMSISpeed Post [ ] (b) DHL [ ]

16. How would you rate the promptness of service and the willingness of

the staff of EMSISpccd post and DllL to solve tllcir custonw-'s

problems (a) vely satisfactory [ ] (b) satisfactoly [ ] ( 4

unsatisfacto~y [ ] (d) very unsatisfactory [ ]

8 5

17. I-low would you ratc courtesy, 1x1-sonalizcd attention and colnpctence of

tllc stal'l'ol' BMS/Slxcd post and Dl I LA'! (a) Lxccllcnt 1 1 (b) VcrY

good [ I ( 4 good [ I ( 4 poor [ I

18. Which 01' the two couricr colnpanics guarantees the sccurity of mails

and other item sent through them more? (a) EMSlSpeed post [ 1

(b) DHL [ I

19. How would you rate the overall efkiency of the two companies? (a)

very satisfactory [ ] (b) satisfactory [ ] (c) unsatisfactory [ I (d) very

unsatisfactory [ ]

20. With DHL your mail reach its delivery point faster than EMSISpeed

post?

(a) Strongly agreed [ ] (b) Agree[ ]

(c) Strongly disagree [ ] (d) Disagree [ 1

Al'l'ICNI>lX I l l

Questionnaire forms for staff.

I. Sex; (a) female [ ] (b) Male [ ]

ii. Age (a)

iii. Position

iv. Number of years of service

v. Qualification

1 Which of price and quality is the most important consideration in your

dealing with customers? (a) Price [ ] (b) Quality [ ] (c) Both

I

2. How does customers react to price increase? (a)

3. Does the quality of your servicc dctcrtninc thc pricc chargc? (a) Ycs

[ (b)No[ I

3.1 Do you think your price is adequate for the quality of services render to

customers? (a) Yes [ I (b) No [ I

' 4. How would you rate the interplay of' price and quality of your product?

(a) Dependent [ ] (b) Exclusive [ (c) lndcpeldent 1

5. Does your company have an internal program for improving quality? (a)

Yes [ I (b) No [ I

87

0. I low cl*!'cclivc is this pl'ogralll i l l i~~iprovitlg the clllali(y 01' scrviccs olSlbrccl?

(a) vcry clli-ctivc 1 J (b) Ill'l'cctivc I ] (c) vcry i~lclf'cclivc 1 ]

(d) incflcclivc [ .I

7. Is lllc quality ol'your scrvicc co~lsistc~lt'? (a) Yes 1- I (I,) No1 1

H. Ilocs Illc comlx~~ly provitlc slill'l' with i~dcqtl;~lc work co~itlilio~~ a11d

incentives? (a) Ycs 1 ] (b) No I I

9. Is your company involvc in c o ~ ~ l i n w d y i~llprovi~lg tllc quality of tllcir

se~viccs'? (a) Ycs [ 1 (I?) No 1 I

10. How do you rate your company's ability to perform the promised services

clcpc~lclably a~lc l accuralcly (a) Vcry Iligll I ) (1)) I ligh ( ] (c) Avcragc 1

] (d) Not 11igh 1 ] (c) Not very lligll 1 I

I I , I-low oltcn arc you bcing traincd i n your cot~lpany (a) very ol'tcn, 1 1

(b)often[](c)notoften[ ](d)notatall[ 1

12. Adequate work conditions and equipment improves the quality of

services a company olTer? Do you agree'? (a) Strongly agreed [

I

(b) Agree[ ] (c) Strongly disagree [ 3 (d) Disagree [

I

17, Iluw long clocs i t takc you lo clclivcr ~ ~ ~ a i l within 3i oi~tsiclc the cou~itry'?

(a) witliin 24hrs - I I ( I , )