Two Consumer Satisfaction Surveys (CSS) were conducted in the year 2001

CONSUMER SATISFACTION SURVEY WAVE III

(April – June 2002) Summary Report

Executive Summary

A nation-wide independent survey was carried out in 2002 to gauge levels of satisfaction on the various services provided by the communications and multimedia industry.

The survey measured perceptions of communications and multimedia services based on the experiences of the user. While perception can be influenced by personal prejudices, environment, hardware, publicity and advertising these surveys were invaluable in highlighting areas for service improvement in respect of each service provider from the consumers’ viewpoint.

Two Consumer Satisfaction Surveys (CSS) were conducted in the year 2001.

The first CSS was conducted between February and April 2001 (Wave I) and the second between September and October 2001 (Wave II). Taylor Nelson Sofres (TNS) conducted the two surveys.

In 2002, the MCMC conducted a third CSS survey (Wave III) through TNS and Universiti Kebangsaan Malaysia (UKM) Pakarunding between April and June 2002. The results were released to the relevant industry players in September 2002.

UKM Pakarunding and TNS conducted different sections of Wave III.

UKM Pakarunding conducted the survey to gauge and review the general satisfaction level relating to radio and TV (free to air and satellite) broadcasts, postal and courier services.

access services, as well as public payphone covering individual respondents and commercial sectors.

Sampling and methodology Individual Study - TNS

A random sample of 2,000 individuals (18 years and above) who are representative of the country’s population were covered by the study. The nationwide survey included both urban and rural areas.

The data is weighted to ensure that the sample is representative of the Malaysian households and adults who are 18 years and above. In the report, unweighted sample sizes are shown to indicate the number of persons responding to the relevant questions.

Results are presented in terms of proportions (%) and averages (CSI). Scoring index ranges between 1(poor) to 10 (excellent).

CSI = (Mean Performance + Mean Overall Satisfaction) divided by 2.

Length of interview was between 30 and 40 minutes. Fieldwork period was from 2 May to 17 June 2002.

Commercial Study – TNS

The method used was Panel Quota Sampling where the same 531 business units covered in the Wave II (Sept/Oct 2001) study were also covered in the present study. Of the 531 business units, 416 business units responded to the present study. New samples of 112 business units were added as replacement, resulting in a total sample of 528 business units.

The sample was controlled by the number of fixed line service providers. The achieved sample size, evenly distributed was as follows:

WII (Sept ‘01) WIII (May ‘02)

Celcom 105 103

DiGi 99 99

Results are presented in terms of proportions (%) and averages (CSI). Scoring index ranges between 1 (poor) to 10 (excellent).

CSI = (Mean Performance + Mean Overall Satisfaction) divided by 2.

Face to face interviews were conducted throughout Malaysia. Though a business unit can have many departments and branches located all over town and country, this survey was confined to only one location.

The length of interview was between 30 and 40 minutes and fieldwork period was between May and June 2002.

Individual study – UKM

Two methods were used in data gathering: a survey of 2,000 households and focus group interview. In the focus group interview, discussions were conducted with 81 informants selected from the same 2,000 sampling

The nationwide survey included both urban and rural areas. The survey samples were selected by multi-staged probability technique using the Malaysian electoral list as the sampling frame.

Results are presented in terms of proportions (%) and averages (CSI). Scoring index ranges measured between 1 (very unsatisfied) to 5 (very satisfied).

CSI = (Mean Performance + Mean Overall Satisfaction) divided by 2.

Length of interview was 45 minutes and fieldwork period was between 1 April and 30 June 2002.

The parameters for all the services were service attributes, which were deemed important for the consumer. These were not based on any standard measurement but were rated according to the consumer's perception.

A. TELECOMMUNICATIONS - INDIVIDUAL STUDY Areas covered :

ƒ Fixed Line

ƒ Mobile Service

ƒ Internet Access Service

ƒ Public Payphone

1. Fixed Line Household information

There is no change in the fixed line provider for Malaysian households. All respondents surveyed are currently subscribed to Telekom Malaysia.

Incidence of fixed line telephone ownership in households has declined (from 69% to 64%). Almost all households (96%) have only one line and many do not intend to subscribe to a second line.

Results confirm that urban households can own a fixed line telephone for as long as 10 years whilst rural households are relatively new users.

Problems Encountered With Telekom Malaysia

Just over one in 10 households with fixed line telephone encountered problems in the period of study. The main problem is line related and billing issue is of a lesser concern.

Individual Information

Consumer Satisfaction Index (CSI) - Fixed Line

The overall CSI score for Telekom Malaysia is 7.38 in Wave III, compared to 7.41 in Wave I.

Concerning specific issues, although network quality (line clarity) declined i.e.

from 7.58 in Wave I to 7.35 in Wave III, customer service and protecting customers information have improved.

Fig. 1.01 Overall CSI Score by Issue for Fixed Line

7.44 7.4

7.58

7.65

7.52

7.36

7.28

7.38

7.28

7.17

7.39 7.36 7.35

7.63

7.45

7.35 7.39

7.53

7.32

7.25 7.24

Application Installation Netwrok Quality

Ease to make calls

Accurate billing

Access to assistance

Customer Service

Confidentiality Accurate information

Service Restoration

Complaints Handling.

W1 (Feb'01) W3 (May'02)

2. Mobile Service

Household Information

Households served with mobile phone have increased significantly from 41% in Wave II (Sept ’01) to 48% in Wave III (May ’02). The increase came from both urban and rural areas.

Individual Information

In terms of mobile ownership, those in the younger age groups (18-25 years) have increased. The result also indicates that those with higher personal income prefer post-paid while those with lower personal income opt for pre-paid.

Individual mobile ownership has increased from 26% to 30% in Wave III (May

’02) - the increase comes from both urban and rural areas.

There is a trend towards single mobile phone ownership. Mobile phone is likely to be self-subscribed and majority are paying for the bill themselves. Monthly expenditure on phone bill remains unchanged i.e. majority spend below RM200 for post-paid and between RM31 and RM200 for pre-paid. Results indicate subscription share of pre-paid has increased from 56% to 63%.

Usage of short messaging service (SMS) continues to be popular especially for receiving text messages. Geographical coverage and call charges are considered very important factors for subscribers. The results show that importance of rebate/discount promotion has declined while reputation/credibility of service provider is becoming more important.

Respondents mentioned “do not want to change number” as one of the key reasons for not switching service provider, apart from being happy with their current service providers.

Amongst non-mobile users, 10% have intention to subscribe in the next three months.

Consumer Satisfaction Index (CSI) - Mobile

All mobile service providers showed improvements in overall CSI.

Wave II Wave III

The average CSI score is 7.30 for Wave III, an increase from 6.95 (Wave II) and 7.10 (Wave I).

Problems Encountered With Mobile Service Providers

Generally, 10% to 20% have encountered problems with their service providers during the period of the study where the main problem encountered is network related. One in four customers who encountered problems, complained to their service providers.

Fig 1.02 Overall score for Mobile Service

6.96 7.39

6.67 6.28

7 6.77

7.13

6.75 7.27

6.56 6.97

7.31 7.64 7.01

Celcom Digi Maxis TMTouch Timecel

Wave I WaveII WaveIII

Fig 1.03 CSI by Issue for Mobile Service

7.1 7.01 6.93

7.12 7.19 7.17 7.14

7.03 6.92

6.82

6.99 7.1

6.91 7

7.27 7.18 7.17 7.27 7.33

7.21

6.95

7.81 7.84

Good Quality

Good capacity

Good coverage

Good customer

service

Useful value added services

Accurate information

Accurate billing

Easy to obtain credits

Prompt activation of

network Wave I Wave II Wave III

3. Internet Access Service

Household Information

Household PC ownership has increased from 18% to 24%. Nine out of 10 households interviewed have one computer. Internet connection via PC in households has increased, from 51% to 55%.

Those without connection reported that they do not have a current need for it and there is also a concern for high telephone bills.

Incidence of subscribing to major players i.e. TMNet and Jaring has declined slightly. On the other hand small players like TimeNet and MaxisNet show growth. Duration of Internet subscription is relatively new, at between one to three years.

Individual Information

Only 8% of non-PC owners intend to purchase PCs in the next three months.

Almost half spend one to five hours in the week surfing the net. Results show that half of the Internet users have high capacity modem i.e. 56kbps.

Consumer Satisfaction Index (CSI) – Internet

TMNet showed slight improvement in its CSI score (from 6.62 to 6.82) while the CSI score for Jaring declined quite significantly from 7.40 to 6.26.

The average CSI score is 6.70, a decline from 6.77 in Wave I.

Problems Encountered with Internet Access Service Providers

Two in 10 encountered problems with their service providers. Difficulty in logging in to the Internet is the main problem. One in 10 complained about their problems to service providers.

Fig. 1.04 Overall CSI Score for Internet

6.62

7.4

6.82

6.26

TM Net Jaring

Wave I Wave III

Fig. 1.05 Overall CSI Score by Issue for Internet

7.01

6.87

6.59

6.75

6.63 6.86 6.83

6.7

6.45 6.5

6.78

6.85 6.96

Ease of subscribing

Reasonable pricing

Ease to log on

reliable line Good customer

service

Accurate information

Accurate billing Wave I Wave III

4. Public Payphone

Majority recall Telekom as the public phone payphone provider while some in urban areas also recall Uniphone.

Incidence of public payphone usage during the study period is 37% with low rate of recurrence. About half use it for about one to five times.

Coins remain as the main payment method and the majority (85%) find the pricing reasonable.

One of the key problems encountered is “phone out of order” i.e. either damaged or not working.

Customer Satisfaction Index (CSI) - Public Payphone

Compared to other phone services, payphone users are the least satisfied. The CSI score is 5.51.

Problems Encountered With Public Payphone Service Providers

Close to half who used public payphone encountered problems. However, only 3% complained.

Fig.1.06 Overall CSI by Issues – Public Payphone

5.72

5.28

5.73

5.32

5.88

5.21

Availability of both coin and

card

Good working condition

Network quality

Maintaining regularly

Clear instructions

Ensuring repairs timely Wave III

TELECOMMUNICATIONS - COMMERCIAL STUDY

Areas covered:

ƒ Fixed Line

ƒ Internet Access Service

1. Fixed Line

Number of fixed line in the sample remained consistent with the situation during Wave II in September 2001. Majority (seven in 10) still use about one to five lines. Public limited companies and some larger private limited companies show a greater likelihood to use higher bandwidth lines.

Telecommunications cost relative to company total operating cost has increased marginally from 7.4% in Wave II (Sept ’01) to 8.1% Wave III (May ’02). Intention to upgrade to higher bandwidth has declined from 21% to 14%.

Knowledge in terms of availability and interest of DSL/ADSL has increased.

Across the board, awareness of fixed line service providers has increased.

Majority (eight in 10) of companies still use one fixed line provider. Minority of dual users still choose a combination of Telekom Malaysia and TT dotCom.

Customer Satisfaction Index (CSI) - Fixed line

Wave II (Sept ’01)

Wave III (May ’02)

Celcom 6.35 6.09

DiGi 6.35 6.53

Maxis 6.63 6.93

Telekom 6.81 6.91

TT dotCom 6.81 6.67

The average CSI score is 6.63, an increase from 6.60 in Wave II.

Problems encountered with main Fixed Line service providers

Celcom’s commercial customers encountered the most problems (46%), followed

Fig. 1.07 Overall CSI Score – Fixed line

6.35 6.35

6.63

6.81 6.81

6.09

6.53

6.93 6.91

6.67

Celcom DiGi Maxis Telekom

Malaysia

TT dotCom Wave 1 Wave II

Fig. 1.08 Overall CSI by Issues – Fixed Line

6.74 6.7 6.65

6.78

6.43

6.29

6.5

6.85

6.53 6.5

6.79 6.7 6.78 6.75

6.4 6.31

6.6

6.98

6.52 6.52

Installation Line clariy Ease to make calls

Accurate billing

Access to assistance

Handle complaints

Customer Service

Confidentiality Service Restoration

Accurate Information

Wave I Wave III

2. Internet Access Service

Internet connections among the sample panel respondent in the commercial sector have increased marginally (from 62% to 65% in WIII [May ’02]), where the private and public limited companies are the main customers. Only one in 10 companies is not connected to Internet currently is planning to subscribe to the Internet in the next six months.

Similar to WII (Sept ’01), PSTN line is the most preferred line (increased from 79% to 82% in WIII [May ’02]). Majority of the companies still regard Internet as the main communication tool (mainly used for e-mail communications: 97% to 99% in WIII [May ’02]) and important source for information search (90% to 92%

in WIII [May’02]).

For the sample companies in the commercial sector, Jaring remains as the main Internet access service provider used (58%); followed by TMNet (31%). It also appears that smaller Internet access service providers are beginning to make inroads.

Consumer Satisfaction Index (CSI) – Internet

TM Net’s CSI score remains stable over the two waves (6.41 to 6.42 in WIII [May

’02]), while Jaring recorded a steady improvement in CSI score, from 6.29 to 6.40 in WIII (May ’02). The gap between the two brands is closing.

The average CSI score is 6.40, an increase from 6.33 (Wave II).

Problems encountered with main Internet Access Service providers

Commercial customers in the sample encountered slightly more problems with TM Net (29%) compared to Jaring (24%). TM Net business consumers face problems in line/network, billing and service centre issues. Overall, Jaring only has problems in line/network related issues.

Fig. 1.09 Overall Internet CSI – Commercial

6.41

6.29 6.42

6.4

TM Net Jaring

Wave I Wave III

Fig. 1.10 Overall Internet CSI by issues – Commercial

6.24 6.21

6.07

6.26 6.35

6.62

6.4 6.32 6.27

6.38

6.26 6.63 6.56

6.65

Ease of subscribing

Reasonable pricing

Ease to log on Reliable line Good customer

service

Accurate information

Accurate billing Wave II Wave III

C. BROADCASTING & POSTAL/COURIER SERVICE STUDY Areas covered :

ƒ Free-to-Air Television

ƒ Satellite TV

ƒ Free-to-Air Radio

ƒ Postal Services

ƒ Courier Services

1. Free-to-Air Television

Television penetration is very high as indicated by 99% of respondents who owned a television set. 99% of respondents are able to receive transmission from TV1, TV2 and TV3 and 93% are able to receive transmission from ntv7.

The majority of respondents are average viewers, watching television between one and four hours, 32% (two to three hours), 23% (one to two hours) and 23%

(three to four hours). Only 15% watch television for more than five hours.

The “most frequent” and “very frequent” watched television stations are TV3 (70%), followed by ntv7 (48%), TV2 (24%), and TV1 (20%).

Frequently watched television programme genre:

ƒ Percentage of the respondents who watch (frequent and very frequent) news on TV1 (23%), TV2 (19%), TV3 (68%) and ntv7 (46%).

ƒ Percentage of the respondents who watch (frequent and very frequent) dramas on TV1 (32%), TV2 (30%), TV3 (48%) and ntv7 (38%).

ƒ A total of 48% watch frequent and very frequent) documentaries on TV3.

The percentage for TV1 is (16%), TV 2 (18%), and ntv7 (21%).

ƒ TV3 has the highest percentage of respondents (40%) who frequently watch sports programmes. A smaller percentage watch sports programmes on TV1 (18%), TV2 (12%) and ntv7 (15%).

ƒ 51% of respondents watch (frequent and very frequent) sitcoms on TV3 while the percentage for ntv7 is 29%, TV1 (16%) and TV2 (14%).

Consumer Satisfaction Index (CSI) – Free-to-Air Television

TV3 has the highest CSI score (3.67), followed by ntv7 (3.47), TV2 (3.24) and TV1 (3.10).

Importance and performance

Respondents consider transmission quality as important but are not quite satisfied with the performance.

Issues related to social responsibility such as promoting programmes that cater for the various ethnic groups, racial and national integration, and values and culture are considered somewhat important. The respondents considered performance of television stations are not up to satisfactory level.

Respondents consider balanced and accurate information as important but are less satisfied with regards to the performance. The same applies with having greater quality and quantity of programmes, and having more local content on television.

Respondents do not consider issues of violence, horror and sex on television as important. They are generally satisfied with their television stations’ performance on these issues.

Respondents rank advertisements in between programmes as somewhat important are less satisfied with the performance of television stations.

2. Satellite Television

ASTRO penetration is measured by subscription and frequency of watching ASTRO Flexi packages. Only 17% of the respondents are subscribed to ASTRO.

Consumer Satisfaction Index (CSI) – Satellite Television The overall CSI score for ASTRO is at 3.73.

Importance and satisfaction

Respondents are satisfied with transmission quality which are considered as an

Issues related to balanced programming, such as having variety of quality programmes, first-run programmes, and balanced information/news are considered important. However, issues related to local content are considered as unimportant.

Respondents consider the issue of programmes portraying violence, horror and sex as somewhat important and they are very satisfied with ASTRO’s performance on the issues.

Advertisement slots are not considered as an important issue. The respondents are neither satisfied nor dissatisfied with this matter.

Fig 1.11 Overall CSI Score for Free-to-Air TV

Fig. 1.12 CSI Score on Issues for Free-to- Air TV

3.1 3.24

3.67 3.47

0 0.5 1 1.5 2 2.5 3 3.5 4

TV1 (n=395) TV2 (n=473) TV3 (n=1382) NTV7 (n=852)

3.89 3.92 3.77

2.51 3.05

3.63 3.79

4.04 3.99 4.12

3.62

2.85 2.88 3.43 3.63

3.51 3.58 3.59

3.67 3.80

2.00 2.40 2.80 3.20 3.60 4.00 4.40

MEAN

Fig 1.13 CSI Scores for Satellite TV

Fig 3.4 CSI Scores on issues for Satellite TV 3.73

0 0.5 1 1.5 2 2.5 3 3.5 4

(N=343)

3.93 3.95

3.87

3.12 3.41

3.44

3.99 4.10 4.25

4.34

3.51

3.24 3.28 3.40

4.01

3.60 3.45

3.53 3.78

4.02

3.00 3.20 3.40 3.60 3.80 4.00 4.20 4.40 4.60

Qua lity recep

tion Inform

ative

Variety Loc

al

First-run

Advert

Violence

Ethnic

Integration

Values

ISSUES

MEAN

Importance of issues Satisfaction with performance

3. Free-to-Air Radio

90% of respondents own at least one set of radio where 70% spend less than three hours per day listening to the radio, 24% less than one hour a day, 25%

between one and two hours and 21% between two and three hours. The percentage of respondents who listen to radio for more than 5 hours is 17%.

Based on the “frequent” and “very frequent” responses, the following are the most listened radio stations:

ƒ ERA (22%)

ƒ RADIO MUZIK RTM (17%)

ƒ RADIO 3 RTM (16%)

ƒ TIME HIGHWAY RADIO (13%)

ƒ RADIO 5 RTM (15%)

ƒ MyFM (12%)

ƒ Hitz FM (11%)

ƒ RADIO 6 RTM (10%)

Among the private radio stations, ERA is the most often listened station followed by TIME HIGHWAY RADIO, MyFM and Hitz FM. CATS radio and Best 104, being regional station, recorded lower percentage of frequent listeners, at 4% and 3% respectively.

Among the public radio stations, RADIO MUZIK, RADIO 3, RADIO 5 and RADIO 6 are the most often listened radio stations. RADIO SABAH (5%) and RADIO SARAWAK (3%) recorded a lower percentage of frequent listeners. Only 5% of the respondents listen to RADIO 1, a national station, frequently.

Based on the “very insufficient and insufficient” responses, respondents mentioned traffic reports (32%) and talk show/discussion of current issues (32%) and weather reports (25%) as insufficient. With regard to news, 16% of respondents considered it as insufficient. The Majority of respondents are satisfied with the airtime for music and only 8% consider the airtime as insufficient.

Consumer Satisfaction Index (CSI) – Free-to-Air Radio

Radio Malaysia channels show better CSI scores than commercial stations. The

Quality of transmission is considered important and respondents are generally satisfied with it. Respondents also consider quality of announcements by deejay as important and they are generally not quite satisfied.

Respondents feel it is important for radio stations to be socially responsible by having more programmes that promote cultural values, tolerance between ethnic and religious groups. Performances on these issues are not up to satisfaction level.

Respondents consider issues of balancing content and programmes as important including balancing entertainment and educational materials, balanced and accurate news, and deejays promoting discussion of issues that are of public interest. Performances of these issues are below satisfaction level.

Respondents rate promoting local artistes as relatively less important compared to other issues. At the same time, they are not really satisfied with efforts made by radio stations to address the issues.

Advertisement slots are considered as relatively less important in radio broadcast. Respondents are generally satisfied with the performance of radio stations in this area.

Fig 1.14 Overall CSI Score for Radio

Fig. 1.15 Overall CSI Score by Issues for Radio

3.62

3.32

3.72 3.63

3.94 4.01

3.95 4.03

3.93 3.91 4.22

3.73 3.68 3.64 3.71

3.33 3.64

3.99

3.00 3.30 3.60 3.90 4.20

lity recep

tion Values

Pub lic interest

Educa tion

nou ncements

Tolera nce

Loc al a

rtistes

News

Adv ertisem

ents

MEAN

3.81 3.76 3.78 3.69 3.69 3.68 3.8 3.67 3.63 3.66 3.68

0 0.5 1 1.5 2 2.5 3 3.5 4

Radio 3 (n=2 74)

Radio 5 (n=246) Radio 6 (n=18

1)

Radio 1 (n=71) Light & Easy (n=1

18) Hitz (n=161)

MyFM (n=1 40) Era (n

=330) THR (n=

155 )

Radio 4 (n=93) Radio Muz

ik (n=355)

4. Postal Services

In terms of satisfaction with the delivery of ordinary letters and packages, majority of respondents (77%) are satisfied with the current time taken to deliver or receive ordinary letters/packages.

With regards to the postal customer support service hotline, only 26% of respondents are aware the availability of the service. However, only 17% have used the service, and among them, 43% find information obtained through the hotline as sufficient, 2% most sufficient, and 39% quite sufficient.

83% of respondents prefer to have more counters operational during the current operating hours and the other 17% prefer longer operating hours.

Consumer Satisfaction Index (CSI) – Postal Services The CSI score for postal services is 3.33.

Importance and satisfaction with issues

All issues related to postal services are considered important. The issues are safe delivery of letters and packages, punctual delivery of ordinary letter, convenient location of post offices and availability of parking bays, sufficient number of postboxes located at strategic places, and punctual delivery of express letters. Respondents find performance of service provider on the issues are not satisfactory.

Besides issues related to notification of registered letters, issues related to consumer services are considered important. Other issues are effective and efficient service, operating hours, and user-friendly facilities. Generally, respondents consider the performance in these services as unsatisfactory.

Fig 1.16 Overall CSI Score for Postal Services

Fig. 1.17 Overall CSI Score by Issues for Postal Services

3.33

0 0.5 1 1.5 2 2.5 3 3.5

(N=1470)

4.00 4.00

4.11

4.00 4.19

4.03 3.88 4.06 4.27

3.12 3.53

3.39 3.12 3.26

3.50

3.06 3.25

3.34 3.00 3.20 3.40 3.60 3.80 4.00 4.20 4.40

Efficiency

Ample parking

Operating hours

Safe delivery

Timely notification

Timely ordinary

Express letters

Post boxes

User-friendly facilities ISSUES

MEAN

Importance of issues Satisfaction with performance

5. Courier Services

Respondents are satisfied with safe delivery of packages and letters, delivery within the promised time, efficient and effective delivery of letters and packages, and effective collection of letters and packages. Respondents also indicated that they are satisfied with confidentiality of items delivered.

The satisfaction level for customer service is lower than the satisfaction with services provided in courier services. Respondents are least satisfied with the courier services in terms of informing consumer of non-coverage area.

Respondents are not fully satisfied with providing the services as advertised and getting timely and accurate information.

Consumer Satisfaction Index (CSI) – Courier services The CSI score for courier service is 3.89.

Fig 1.18 Overall CSI Score for Courier Services

Fig. 1.19 Overall CSI Score by Issues for Courier Services

...

3.89

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

(N=316)

4.33 4.31

4.20 4.26 4.19

4.22

3.99

4.16

4.00 4.06 4.01 4.04

3.86 3.92

4.06

3.70

3.40 3.60 3.80 4.00 4.20 4.40

Inform

Effective

Delivery

Confidentiality

Timely

Safety

Information

Advertised ISSUES

MEAN

Importance of issues Satisfaction with issues