ABSTRACT
This study examined the effect of relationship marketing as a strategy for customer retention in Globacom Nigeria Limited. The specific objectives however includes, to: examine the extent to which attention to personal matters affects customer patronage in Globacom Nigeria limited; ascertain the extent to which customer complaint management affects customer patronage in Globacom Nigeria Limited; and determine the extent to which effective service delivery affects customer patronage in Globacom Nigeria Limited. To achieve the objectives of the study survey research design was adopted. The study adopted primary data through the use of structured questionnaire. The population of the study is made up of 100 staff and sample is 80 after adopting Taro Yamane formula. The test the hypotheses, Analysis of Variance (ANOVA) was used. The findings revealed that attention to personal matters has a significant effect on customer patronage in Globacom Nigeria limited. The findings revealed that complaint management has a significant effect customer patronage in Globacom Nigeria Limited. The study recommends that Effective customer relationship marketing is a reliable tool to increase customer base. Hence, small scale enterprise should ensure customer satisfaction at all time. Management of small scale enterprise should always seek customer opinion before taking decision that is binding on the customers. The study further recommends that customer relationship marketing contributes greatly to the organizational profitability. Hence, small scale enterprise should designed a feasible customer relationship strategy that can identify the most profitable customers to enabled tailoring services to their needs.
TABLE OF
CONTENTS
Title page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Abstract vi
Table of
Content
CHAPTER ONE:
INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 3
1.4 Research
Questions 4
1.5Research Hypotheses 5
1.6 Significant of the Study 5
1.7 Scope of the Study 6
1.8 Limitations of the Study 7
CHAPTER TWO:
REVIEW OF RELATED STUDY
2.1 Conceptual
Framework 8
2.1.2 Concept
of Relationship Marketing 8
2.1.2
Relationship Marketing and Organizational Performance 12
2.1.3 Customer Relationship Management
Capabilities 12
2.1.4 Customer Interaction management
capability 13
2.1.5 Customer
Relationship upgrading Capability 14
2.1.6 The role of customer
demographic variables in Relationship Marketing 15
2.1.7 Components of Customer Relationship
Management 15
2.1.8 Process of Customer Relationship
Management 16
2.1.9 Effect of
Relationship Marketing on Customer Retention
17
2.1.10 Relationship Marketing
Practices, Key Mediating Variables and Customer Loyalty 19
2.1.11 Relationship
Marketing Practices 20
2.2. Theoretical Review 22
2.2.1 Art of
Profit Theory (Anderson & Weitz, 1989) 22
2.2.2 Economic
Theory (Day, 2003) 23
2.2.3 The
Traditional and Modern Theory (Gifford, 2002). 24
2.3 Empirical Review 24
CHAPTER
THREE: METHODOLOGY
3.1 Research
Design 27
3.2 Area of
the study 27
3.3 Data
Collection 27
3.4 Population
of the study 28
3.5 Sample
Size determination 28
3.6 Sampling
Technique 28
3.7
Description of the Instruments 28
3.8 Validity
of the Instrument 29
3.9
Reliability of the Instrument 29
3.10 Data
Analysis Techniques 29
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF
FINDINGS
4.1 Data presentation 29
4.2 Test of hypothesis 33
4.3 Discussion of findings 35
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of
Findings 37
5.2 Conclusion 37
5.3 Recommendations 38
REFERENCES
APPENDIX
CHAPTER ONE
INTRODUCTION
1.1
Background to the Study
Relationship marketing was first defined
as a form of marketing development from direct response marketing campaign,
which emphasizes customer retention and satisfaction rather than a dominant
focus on sales transitions (Kotler, 2000). As a practice, relationship
marketing differs from other forms of marketing in that it recognizes the
long-term value of customer relationships and retains communication beyond
intrusive advertising and sales promotional messages (Kotler and Armstrong
2006). Relationship marketing is all about maintaining mutual relationship with
customers for the purpose of retaining customers and increasing market
performance.
Relationship marketing extends to include
in-bound marketing efforts, (a combination of search optimization and
strategies content), the action, PR, social and application development (Bose,
2002). Relationship marketing is a broadly, recognized widely-implemented
strategy for managing and nurturing sales prospects (Boniface and Anuforo, 2014).
Relationship marketing is an activity that
aimed at developing and managing long-term relationship with customers. In
relationship marketing, customer profile, buying patterns and history of
contacts are maintained in a sales database, and an account executive is
assigned to one or more major customers to fulfill their needs and maintain the
relationship.
The 2006 to 2008, research priorities the
title “The Connected Customer” to reflect the increasing importance of
understanding how customers and the firm interact before making key marketing
decision. Nothing underlying relationships that either have been built or have
the potential to be built between customers and firms; especially in the small
scale enterprises.
Relationship
marketing strategy often gives rise to the development of IT systems or
applications often referred to Customer Relationship Marketing (CRM) systems
which act as an enabler, synthesizing relevant customer information and making
them readily available to various touch points (Chen & Popovich, 2003).
This promotes closer targeting for the effective delivery of customer value
(Bose, 2002). From a customer’s perspective, well-implemented CRM can offer a
greater opportunity for effective customer interface that enables customization
and personalization (Chen & Popovich, 2003). This means the firm can track
the flow of interactions in that at each transaction, relevant account details,
knowledge of customer preferences, past transaction and history of a service
problem are at the disposal of the person serving or managing the customer
(Chen & Popovich (2003). This can result in tremendous service improvement
and increased customer value culminating in win-win or positive reciprocal
exchanges (Gronroos, 1994; Gronroos, 1997). Relationship marketing aims to
establish, maintain and enhance relationships with customers and other
partners, at a profit, so that the objectives of the parties involved are met
(Gro¨nroos, 1994). Some of the customer
relationship management activities includes, enhanced customer satisfaction
through effective service delivery and quality product, enhanced customer
complaint management, customer trust and attention to customer personal
matters. These activities helps in increasing the performance of small scale
enterprise such as increasing their sales growth, profitability and new
customer acquisition.
The study is carried in
Globacom Limited. Globacom Limited (or GLO)
is a Nigerian multinational telecommunications company headquartered in Lagos.
GLO is a privately owned telecommunications carrier that started operations on
29 August 2003. It currently operates in four countries in West Africa, namely Nigeria, Republic of Benin, Ghana and Côte d'Ivoire. As of June 2009, the
company has employed more than 2,500 people worldwide. GLO has an estimate of
over 34 million subscribers (April 2016) of which 26 million are internet
subscribers and it is a 100 percent Nigerian owned company.
In 2011, GLO became the first telecommunication
company to build an $800 million high-capacity fibre-optic cable known as Glo-1, a submarine cable
from the United Kingdom to Nigeria. It is the first successful submarine
cable from the United Kingdom to Nigeria. Globacom has the following range of
products; Glo mobile, Glo Broad Access, Glo Gateway and Glo-1 coverage.
1.2
Statement of the Problem
Relationship marketing aims to establish, maintain and
enhance relationships with customers and other partners, at a profit, so that
the objectives of the parties involved are met. Business firms, regardless of
the size of their organization, as a whole, are spending billions of naira each
year on customer relationship management (CRM) systems or applications (Cheng
& Dogan, 2008). The CRM gained importance as popular business tools of a
number of CRM projects implemented successfully in the early 1990s. However,
about 70% CRM projects resulted in loss or no bottom line improvement in firm
performance. Additionally many academic and business reports have shown
disappointing results on CRM itself. This could be one of the reasons that CRM
is an emerging field of inquiry (Richards & Jones, 2008).
Instead of investment on the development of CRM many
organizations do not pay attention to it due to several reasons such as lack of
knowledge about CRM and lack of financial resources to implement CRM systems.
The organizations that have adopted CRM systems as a corporate strategy are
expected to grow at a faster pace than those firms who are non-adopters within
the same industries.
Therefore relationship marketing is a
strategic tool from which customer loyalty can be secured and, as a result, the
attainment of higher competitiveness and enhancement of customer satisfaction
can be achieved. Nevertheless, most organizations have fall short of the
expectations of their customers in recent time. Customers have experienced
challenges ranging from delayment, stock out, non-availability of staff at
service points, poor service delivery which affect customer satisfaction and
retention, lack of customer complaint management and lack of trust.
1.3
Objectives of the Study
The main objective of this study will be
to examine the effect of relationship marketing on customer retention in
Globacom Nigeria Limited. The specific objectives however includes, to:
i.
examine the extent to
which attention to personal matters affects customer patronage in Globacom Nigeria
limited;
ii.
ascertain the extent to
which customer complaint management affects customer patronage in Globacom
Nigeria Limited;
iii.
determine the extent to
which effective service delivery affects customer patronage in Globacom Nigeria
Limited.
1.4 Research Questions
The key research questions for this work will include:
i.
how does attention to
personal matters affects customer patronage in Globacom Nigeria limited?
ii.
how does customer
complaint management affects customer patronage in Globacom Nigeria Limited?
iii.
how does effective
service delivery affects customer patronage in Globacom Nigeria Limited?
1.5 Research Hypotheses
In the course of this work, the following null
hypotheses will be tested.
H01:
Attention to personal matters has no significant effect on customer patronage
in Globacom Nigeria limited.
H02:
Complaint management has no significant effect customer patronage in Globacom
Nigeria Limited.
H03:
Effective service delivery has no significant effect customer patronage in
Globacom Nigeria Limited.
1.6
Significant of the Study
This study will be significant to the
following group of people; business firms, the government, the consumers, the
academia.
Business
Firm: The retailers will find this work
interesting, as it will avail them the opportunity of analyzing their business
problems and finding ways to go about them. It will also provide them with
alternatives of blending their marketing mix so as to catch-up the consumers
continuous changing tastes and preference.
The
Government: This will be an eye opener to policy
makers in all of the government, educating them on the best way of ameliorating
the complexities involved in telecommunication industry in Nigeria. And will
also afford them the insight of assessing the impact of certain policies and
regulations on business.
The
Consumers: The relationship that exists between
the seller and the buyer will be cordial as the consumer needs and tastes will
be better met in an environment where harmony is a watch-word. Increase in the
utility of the consumer is also assured given that the retailer will stand in a
better position to providing them with what they need.
The
Academia: The
work will serve as reference material to the research students who are
conducting research in the area of the topic at present and it will also expose
them to the basic knowledge of relationship management.
1.7
Scope of the Study
This work will cover relationship
marketing as a tool for customer retention in Globacom Nigeria Limited. The
geographical coverage is Abia State, Nigeria. Abia State is located in the
south east geopolitical zone of Nigeria. It lies around the latitude 4040
and 601 N and longitude 70 10 and 8000’E. The state
covers a land mass of about 5,243 7km2, approximately 5.6 percent of
total land area in Nigeria (INEC, 2008). The state has an average population of
2,833979 persons (NPC, 2007; INEC, 2008). It shares common boundary with Rivers
States on the south;
Imo States on the East, Akwa Ibom and Cross
River State on the South, Ebonyi and Enugu state on the East, Abia State has 17
Local Government Area, and three senatorial zones.
1.8 Limitations of the Study
Perceived limitations to
this study include:
Respondent’s behaviour: Most management prohibits
its employee from giving out information
about the company to outsiders without adequate permission from the management
and even when this permission was obtained at the long run, many vital
information were not revealed because they were regarded as the privacy of the
company.
Non-availability of records: This is expected to be one of the
most important limiting factors in the course of the study. This includes the
problems of easily getting the appropriate data due to bureaucracy which
hinders the information flow in the country.
Time: Since this study is one of the many
courses offered by the researcher, the researcher will be constrained by time
to carry out an indent research on the study.
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