Abstract:
The business becomes highly globalized & competitive in nature, & all the firms are trying to tackle
different conditions in acquiring & retaining customers. Product modification is one of the tools used
by firms to maintain a competitive edge. The purpose of this study is to examine the effect of product
modification on customer satisfaction in the mobile phone industry in the Northern region, Sri Lanka
by considering Apple & Samsung companies. Size, colour, design, model, & other features are served
as the predictor factors in this study. A structured questionnaire with a five-point Likert scale was used
to collect the data. 300 customers were selected as samples & descriptive statistics were used to give
general observation of the data. To investigate the relationship & effects of the variables Pearson
correlation, simple regression, & multiple regression analysis were used. Results of the study showed
that there is a very strong significant relationship between product modification & customer satisfaction
& indicated that 90% of the level of customer satisfaction is predicted by product modification & the
remaining 10% is determined by other factors. Findings of the study also manifested that all
independent variables (Size, Colour, Design, Model, Other features) explained the variation in
customer satisfaction by approximately 91% & all the independent variables have a significant impact
on customer satisfaction. The results also concluded that Samsung effectively implements product
modification strategies towards customer satisfaction than Apple in the Sri Lankan context. This study
recommends that the mobile phone companies, which are running their businesses in Sri Lanka, should
highly focus on the strategies to modify their products.
