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RELATIONSHIP BETWEEN MARKETING AND CUSTOMER SATISFACTION:

CASE STUDY FROM BECO POWERING SOMALIA IN MOGADISHU-SOMALIA

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EPRA International Journal of

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Volume: 2 Issue: 11 November 2016

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 EPRA International Journal of Multidisciplinary Research (IJMR) ISSN (Online): 2455-3662

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RELATIONSHIP BETWEEN MARKETING AND CUSTOMER

SATISFACTION: CASE STUDY FROM BECO POWERING SOMALIA IN
MOGADISHU-SOMALIA

Awil Tohow Keire1 ABSTRACT

1College The current study investigated the relationship
of Education, between marketing and customer satisfaction; the study
School of Social Science, utilized explanatory and descriptive deign to analyze 100
University of Somalia (beco, Operation respondents from beco customers in Mogadishu, Somalia.
The study developed three hypotheses to test the impact of
Manager), independent variables on dependent variable; to test the
Somalia hypothesis the researchers utilized regression analysis and
checked the outliers and co linearity and no violation were

Abdullahi Ahmed Mahamud2 found. The research found that the three dimensions of
marketing had significant and positive relationship with
2College
of Education, customer satisfaction in Mogadishu, Somalia. This study
can contribute to assist beco managers to carry out
School of Social Science, marketing activities and give space to the staff to take their
University of Somalia (beco, Marketing own decision while they are running their marketing work
Officer), to maintain and enhance customer satisfaction.

Somalia KEY WORDS: Marketing, Customer Satisfaction,

beco

Abdulkadir Mohamud Dahie3

3Graduate
Student,
Master of Developmental Study,
Kampala University

1. INTRODUCTION that united was given training. Beco Powering

Beco Powering Somalia is a Power Somalia also hired highly qualified professional
Production Company that was established in May, electrical engineers. The investment made by beco
2014. Beco Powering Somalia started improving the Powering Somalia created many job opportunities to
previous power generating center that was used by youth in Somalia. The streets were beautified, after
the merged companies to form beco. Through the use cemented poles were installed and excluded anything
of modern technology many power generating that interferes with the beauty of the city.
centers had been put off in order to reduce the noise The ability of organizing an organization to
and smoke. The staff from the different companies enable it compete effectively in this competitive

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 EPRA International Journal of Multidisciplinary Research (IJMR) | ISSN (Online): 2455 -3662 | SJIF Impact Factor : 3.395 ( Morocco)

business environment is complex and difficult and it (Cutler, 2000). ‖Marketing manage-ment is the
requires a unified marketing approach to address it. analysis, planning, implementation and controlling of
The focus of marketing has moved from managing programs to achieve organizational goals. It involves
transactions to managing relationships (Christopher programs made to establish and maintain beneficial
et al, 1991; Webster, 1992; Gummesson, 1997). exchanges with buyers (Lavak, 1382).
Alongside this shift in the focus of marketing, there According to the Marketing Association of
have been many calls for businesses to focus on America, ‗„marketing is the process of planning; the
‟customer satisfaction‟‟ (Narver and Slater, 1994; realization of an idea, pricing, advertisement and
Gale 1994; Naumann, 1995). According to Kotler distribution of goods and services, where the
(2002) marketing is the delivery of customer exchange makes the individual and the organization
satisfaction at a profit which can only be actualized in it a reality (Cutler, 2000; Belch and Belch, 2001).
through the cooperation of both the customers and The art and science of marketing is to create or
the marketers (relationship). establish favorable conditions between supply and
Progress and transformation in industries, demand. The main task of marketing is to meet
institutions and companies has to do with their ability product and service needs of customers and focus on
to deal with problems, activities, as well as target market (Frank, 1994).
competitors. Each institution should adopt policies Customer satisfaction is a subject with a lot
with respect to long-term vision, mission, goals, of interest in both the marketing and finance
opportunities, arrangements and using internal literature. The great emphasis on customer
facilities of an external to develop comprehensive satisfaction has given birth to multiple studies and
marketing (Industries, 1384), because in today's innovative methodologies to assess and to understand
global business environment there is increasing customer‟s behavior. Parasuraman et al. (1985, 1988)
complexity, rapid change and unexpected and Corin and Taylor (1992, 1994) are among the
developments (Mason, 2007). most well-known researchers who assessed customer
Each institution has the task of marketing satisfaction and quality of services using ServQual
managers by analyzing, planning, implementing and and ServPerf scale measurements. Today, those
controlling effec-tively marketing programs in order scales are used, with adaptations in the banking
to develop a superior competitive position in target sector and have supported numerous studies (Pont
markets. Marketing plan includes a process designed and McQuilken, 2002; Othman and Owen, 2001).
for predicting future events and determining Studies which dedicated to develop or to adapt
strategies to achieve the objectives of an institute previous scale measurement for measuring customer
(Mnty and Trustee). satisfaction in microfinance are still rare. Existing
In the 1960s, the term was common in studies try to measure customer satisfaction using a
marketing. It says everything starts with consumer„s list of items without grouping them in structured
needs and de-mands. Marketing and market scale (Muray, 2001; IFAD, 2007).
management, an important branch of knowledge Customer satisfaction can be analyzed as a
management, is the main task of understanding general/ overall judgment that a customer makes after
people„s needs and desires and help them through the consuming a product or a service. Customer
process; a process where resources are exchanged. satisfaction is perceived as “psychological state
Society needs are increasing today more than ever, (feeling) experienced after buying and consuming a
especially with the growing shortage of human and product or service …” (Lendrevie and Lindon, 1997;
other resources. Managers are faced with limited Merouane, 2008/2009). Thus, customer satisfaction
resources available to meet those demands which are reflects “the pleasure level resulting from consuming
unlimited; but knowledge management is here to help a product” (Oliver 1997) leading to positive feeling
the economy scientifically as well a set of skills and (satisfaction) , a negative (dissatisfaction) or
knowledge for the optimal use of limited resources. indifference (neutral) feeling from consuming a
Marketing also needs to recognize the efforts put up product or a service (Bhattacherjee, 2001b; Swaid
by the exchange of resources (Venus, 1386). and Wigand, 2007). In this perspective, customer
Marketing is a social and managerial process by satisfaction is con-ceived as “the emotional state that
which needs and desires of individuals and groups occurs as a result of a customer‟s interactions with
are provided through the production, supply and the firm over time” (Anderson et al., 1994; Verhoef,
exchange of useful goods (Holm, 2006). 2003). In fact, customers are usually comparing the
Marketing management can be defined as product received from the firm to their own
follows: "The analysis, planning, implementation and expectations over time. If the product fulfills and
monitoring of programs to create, provide and performs to the customer‟s expectations, customers
maintain a profitable transactions process with the
buyers, in order to achieve organizational goals

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 EPRA International Journal of Multidisciplinary Research (IJMR) | ISSN (Online): 2455 -3662 | SJIF Impact Factor : 3.395 ( Morocco)

will be satisfied (Conchon et al., 2006; Parassuraman This paper takes a cautionary stance to the
et al., 1985, 1988, 1991). impact of marketing mix on customer satisfaction,
Customer satisfaction strategy has built a via a case study deriving consensus rankings for
great deal of consideration during the past decades benchmarking on selected retail stores in Malaysia.
(Oliver, 1996). Therefore, satisfaction is in reality ELECTRE I model is used in deriving consensus
probably the most unassailable concepts of the rankings via multicriteria decision making method
modern management field (Oliver, 1996). Not simply for benchmarking base on the marketing mix model
does the idea of satisfying customers have a good, 4Ps. Descriptive analysis is used to analyze the best
common-sense appeal, it can be also believed that practice among the four marketing tactics.
customer satisfaction would lead towards loyalty, Outranking methods in consequence constitute a
resulting in to increase higher profit gain (Oliver, strong base on which to found the entire structure of
1996). For many firms, customer satisfaction is the behavioral theory of benchmarking applied to
becoming the guiding principle for establishing development of marketing strategy (AL,, Saludin, &
marketing tactics as well as developing marketing Mukaidono, 2012)
activities. Customer satisfaction must not be Same study was conducted to examine the
described as a goal in its place, it should be impact of interactive marketing on customer
considered as a means for improving the company's satisfaction. A questionnaire derived from previous
performance (Martensen et al., 2000).During the studies and the relevant Literature was completed by
1990s, there was a popular realization that 100 mobile communication service providers‟
satisfaction ratings have been in actual fact a means customers in Jaffna district, SriLanka. Single linear
for attaining strategic purposes, such as customer regression analysis assessed the impact on customer
retention which is considered to affect companies' satisfaction of seven key constructs of interactive
profits directly (Jones and Sasser, 1995; Reichheld, marketing such as trust, relationship commitment,
1996). Now the companies are focusing to increase and quality of employees, quality of atmosphere,
satisfaction strategy because satisfied customers have complaint handling, personalizing services and
higher chances to repurchase the same product familiarity. Correlation analysis was carried out to
(Reichheld, 1996). examine the interrelationship between interactive
2. LITERATURE REVIEW marketing and customer satisfaction. And also
This section highlights review articles about independent sample T-test and independent sample
relationship between marketing and customer one way ANOVA were utilized to find out the
satisfaction that were published in various significant mean different in customer satisfaction
international journals. This report also compares the among personal demographic variable. Interactive
findings of the articles since these studies were marketing contributes significantly to customer
conducted in disparate situations according to the satisfaction and predicts 41.6 percent of the variation
environment. found. Relationship commitment and trust in the
This study investigated the impact of interactive marketing contribute significantly to
Customer Relationship Marketing on Customer customer satisfaction. And customer satisfaction is
Satisfaction in Banking Industry in KSA and Jordan. not contributed significantly by personalizing
An e-mail questionnaire was designed and sent to services and complaint handling in the interactive
500 hundred customers of Arab Bank in KSA and marketing. And also there is a significant mean
Jordan, creating two sample pools of respondents. A different in customer satisfaction among prepaid and
total of 151 of the collected questionnaires were postpaid services. But there is no significant mean
valid. The study findings show medium to high different in customer satisfaction among different age
degrees of positive attributes of the two samples groups. Overall association between interactive
toward Customer Relationship Marketing dimensions marketing and customer satisfaction is moderate
(trust, commitment, communication, empathy, social positively correlated. (Dhushyenthan, 2012)
bonding and fulfilling promises) on customer This study investigated the impact of
satisfaction. The findings also indicate different marketing mix in attracting customers to Saderat
attitudes regarding the importance of Customer Bank in Kermanshah Province. Questionnaire which
Relationship Marketing dimension between the two included 30 questions was used to collect information
samples. The findings also indicate different results in this research. The reliability of the questionnaire
regarding the impact of Customer Relationship was calculated using Cronbach's alpha, and a value of
Marketing on customer‟s satisfaction due to gender, 0.882 was obtained, greater than 0.7 which is the
age and educational level (Al-Hersh, Aburoub, & reliability of the questionnaire. The population used
Saaty, 2014) in this study is the customers of Saderat Bank in
Kermanshah Province, with at least one account,
interest-free loans and savings. 250 questionnaires

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 EPRA International Journal of Multidisciplinary Research (IJMR) | ISSN (Online): 2455 -3662 | SJIF Impact Factor : 3.395 ( Morocco)

were collected by stratified random sampling. The has been collected through already tested structured
work has one main hypothesis and 5 sub- hypotheses. questionnaire from 72 respondents. Results of this
Pearson correlation test was used to test the study show that there is significant relationship
hypotheses. It was established that factors in the between marketing attributes and customer
marketing mix have a significant positive effect in satisfaction. It also revealed that positive relationship
absorbing customers. That means the bank has a exists between customer satisfaction and customer
significant positive effect. (Pour, Nazari, & Mostafa , loyalty. With the help of this study we can conclude
2013) that marketing leads to satisfied customers and
Another study was conducted to examine the customer satisfaction leads to customer loyalty. In
impact of marketing on customer satisfaction. today‟s competitive world banks can get competitive
Determine the customer satisfaction level and assess advantage by providing superior services to their
to what extent customer satisfaction is influenced by customers. (SABIR, GHAFOOR, AKHTAR,
customers‟ characteristics. Using factorial analysis, HAFEEZ, & REHMAN, 2014)
customer satisfaction index and ANOVA, we found The research aim is to examine the impact of
that responsiveness remains the most important relationship marketing on customer satisfaction
dimension in microfinance sector. Results reveal that considering the context of Tesco plc. A self-
customer‟s branch, customer‟s revenue and number administer questionnaire derived relevant to research
of services accessed by customers strongly influence objective completed by 100 Tesco Customers. An
customer‟s satisfaction. (Kanyurhi, 2013) interview approaches also used on 50 customers and
This study investigated the relationship 10 team leaders in this research. A contents analysis
between marketing and customer satisfaction. The used to analysis qualitative and quantitative data.
author used primary data in this study and for this Quality of product is dominate factor of relationship
purpose a survey has been conducted through a marketing to make satisfy customer and Other
structured questionnaire. The view of 300 middle relationship marketing factor works to being loyal in
class households or business people was recorded. the long run. (MOLLAH, 2014)
The study findings show medium to high degrees of This research aims to investigate the impact
positive attributes of the two samples toward of marketing mix strategy on patient satisfaction in
Customer Relationship Marketing dimensions (trust, private sector hospitals in Jeddah city in Saudi Arabia
commitment, communication, empathy, social (KSA). This research consists of the independent
bonding and fulfilling promises) on customer variables represented by marketing mix strategy
satisfaction. The findings also indicate different components (namely health service, pricing,
attitudes regarding the importance of Customer distribution, promotion, physical evidence, process,
Relationship Marketing dimension between the two and personal strategies) and dependent variable
samples. The findings also indicate different results which represented by patient satisfaction. In order to
regarding the impact of Customer Relationship explore the relationship between independent and
Marketing on customer‟s satisfaction due to gender, dependent variables the quantitative method was used
age and educational level. (Awan, & Asad-ur , 2014) to collect primary data through a questionnaire,
The study aims to investigate the impact of which was administered in the private sector
Customer Relationship Marketing on Customer hospitals in Jeddah city with hospital managers. The
Satisfaction. A questionnaire derived from previous results confirm significant differences in the
studies and the relevant Literature was completed by influence of the marketing mix strategy have varied
100 mobile communication service providers‟ significant and insignificant influence on the patient
customers in Jaffna district, SriLanka. Single linear Satisfaction. Furthermore, the results exhibit those
regression analysis assessed the impact on customer hospital managers might benefit more by placing
satisfaction. It was established that factors in the more Emphasis on an integrated service marketing
marketing have a significant positive effect in mix strategy and recognizing the patient satisfaction.
absorbing customers. That means the bank has a The result shows that five out of seven variables are
significant positive effect. (Munusamy,, Chelliah, & significant (health service, promotion, physical
Mun, 2010) evidence, process and Personal strategies) on the
Objective of the study was to study the other hand two variables are insignificant (pricing
factors affecting Customer Satisfaction in Banking and distribution strategies). This research contributes
Sector of Pakistan and to find the relationship to the academic and practical knowledge as being one
between marketing, Customer Satisfaction and of the first attempts to investigate empirically the
Customer Loyalty. Research design of the study is impact of the marketing mix strategy on patient
quantitative and surveys research method has been satisfaction. (Khalaf Ahmad, Al-Qarni, Alsharqi,
used in it. Data was collected from four different Qalai, & Kadi, 2013)
cities: Sahiwal, Arifwala, Okara and Pakpatan. Data

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 EPRA International Journal of Multidisciplinary Research (IJMR) | ISSN (Online): 2455 -3662 | SJIF Impact Factor : 3.395 ( Morocco)

The purpose of this study is to provide an indicate that four variables have significant effect and
insight into the impact of relationship marketing predict good proportion of variance in customer
strategy on customer satisfaction of retail bank sector loyalty. It is reasonable to conclude, on this evidence,
in Pakistan and to examines whether these that customer satisfaction can be created, reinforced
relationship strengthen through improvements in and retained by marketing plans aimed at building
banking relationship. A questionnaire derived from trust, demonstrating commitment to service,
previous studies and relevant literature was communicating with customers in a timely, reliable
completed by 100 university students having and proactive fashion, and handling conflict
accounts in different banks and Convenience efficiently. ( Husnain & Akhtar, 2015)
sampling used. Multiple regression analysis assessed After reviewing the literature, most of the
the impact on customer loyalty of four key construct researchers found that there is positive relationship
of relationship marketing (Trust, Commitment, between marketing and customer satisfaction. The
Communication and conflict handling). Results researchers generated the following hypothesis.

CONCEPTUAL FRAMEWORK

Commitment

Customer
Communication satisfaction

Conflict handling

3. METHODOLOGY Mogadishu. Customers from this company were

This study was conducted through case method provided a questionnaire with four main construct which
to investigate the relationship between marketing and measuring commitment, communication, conflict
customer satisfaction at beco; the study utilized handling and customer satisfaction. The researchers‟
regression, correlation analysis to answer the research utilized Cronbach alpha to investigate the internal
objectives and to test the research hypothesis. consistency of the questionnaires collected from the
The researchers‟ utilized convenient sampling respondents.
to collect 100 respondents from the beco customers in
Table 1: Reliability test
Variables Items Gronbach alpha
Commitment 4 .723
Communication 4 .749
Conflict handling 3 .803
Customer satisfaction 4 .801

4. FINDINGS AND DISCUSSIONS 14.0% were between 31-40 years, 4.0% was above 40
4.1: Demographic profile years.. In terms of marital status majority of the
As shown in table 1. The age of respondents, customers participated the study are married (49.0%)
11.0% of the respondents were under 20 years. 71.0% percentages of singles are (51.0%). In terms of
of the respondents were between 21-30 years old, educational background, 15.0% of the respondents

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 EPRA International Journal of Multidisciplinary Research (IJMR) | ISSN (Online): 2455 -3662 | SJIF Impact Factor : 3.395 ( Morocco)

had secondary level. 14.0% of the respondents had 12.0% master degrees. As well as gender, 76.0%
Diploma, 59.0% had first University degree and were male and 24.0% were female.

Table 2: Demographic Characteristics

No Characteristics Frequency Percentage
1. Gender
Male 76 76.0
Female 24 24.0

Total 100 100.0

2. Age
Under 20 11 11.0
21-30 71 71.0
31-40
41 and above 14 14.0
4 4.0
Total 100 100.0
3. Marital Status
Single 51 51.0
Married 49 49.0
Total 100 100.0
4. Highest level of
Education
Secondary level 15 15.0
Diploma
14 14.0
Bachelor degree
Master degree 59 59.0
12 12.0
Total 100 100.0

4.2 CORRELATION ANALYSIS to examine the relationship between communication

BETWEEN THE VARIABLES and customer satisfaction and the result found
The first objective of this study was to positive relationship at level (r=.485 and p> 0.01)
identify the relationship between commitment and And the third objective was to identify the
customer satisfaction in Mogadishu-Somalia. The relationship between conflict handling and customer
result displayed that there is positive relationship at satisfaction and the result indicated positive
level (r=.507 and p>0.01). The second objective was relationship at level (r= .508 and p>0.01)

Table 3: Correlations analyzes

No Variable 1 2 3 4
1 commitment 1
2 communication .494 1

3 Conflict handling .531 .527 1

4 Customer satisfaction .507 .485 .508 .1

4.3: Hypothesis test researchers checked regression assumptions before

The current study wished to investigate the taking place to further analysis. The dependent
relationship between marketing and customer variable Marketing was normally distributed across
satisfaction at beco in Mogadishu, Somalia, three all independent variable. No violation was observed
hypotheses were developed after reviewing the after checking the outliers, linearity and co linearity.
literature, to test the research hypothesis we Three hypotheses were developed after
employed the linear regression analysis, The reviewing the existing literature; H1 asserted that

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 EPRA International Journal of Multidisciplinary Research (IJMR) | ISSN (Online): 2455 -3662 | SJIF Impact Factor : 3.395 ( Morocco)

there is significance relationship between relationship between conflict resolution and customer
commitment and customer satisfaction in Mogadishu- satisfaction at beco in Mogadishu.
Somalia. H2 was claim that there is significance The result of regression analysis shown in
relationship between communication and customer below table shows that marketing which is measured
satisfaction at beco While H3: there is significant (commitment, communication and conflict
resolution) had significant positive relationship with
customer satisfaction.
Table 4: Regression Analysis
Variables Beta t-value Significant Results
Commitment .264 2.633 .010 H1 Accepted
Communication .223 2.228 .028 H2 Accepted
Conflict handling .250 2.443 .016 H3 Accepted
R .607
R Square .369
Adjusted R Square .349

5. DISCUSSION AND CONCLUSION that organizations like the past are not facing with a
The current study investigated the growing economy and emerging markets. Today,
relationship between marketing and customer every customer has its own special value and now
satisfaction at beco in Mogadishu-Somalia; the paper companies fight for to get a larger share of the market
had three main objectives which are: 1) To identify and stable or declining. Thus cost of attracting new
the relationship between commitment and customer customers has increased. With the decline of
satisfaction in Mogadishu-Somalia; 2) to examine the Primitive marketing and the emergence of
relationship between communication and customer relationship marketing, Organizations and companies
satisfaction at beco in Mogadishu-Somalia; 3) to to want that with utilize of relationship marketing
explore the relationship between conflict handling strategies create strong links with its customers.
and customer satisfaction at beco in Mogadishu- REFERENCES
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