ABSTRACT
Customer Relationship Management has developed as an approach based on maintaining positive relationships with customers, increasing customer loyalty and expanding customer lifetime value. The study focused on the effect of customer relationship management on the marketing performance of banks. The problem that led to the study revolves around that there is no comprehensive study of the dimensions relevant for the establishment of long-term marketing relationships and enhanced marketing performance has been reported yet. The overall objective of the study is to examine the effect of customer relationship management on the marketing performance of banks. Specifically, the study sets out to achieve the following sub objectives; to examine the effect of customer’s identification on customer retention in Union Bank Plc; to ascertain the effect of communication of values on customer patronage; to determine the effect of differentiation on customer satisfaction. In other to achieve the objective of this study, two research hypotheses were formulated and tested using the Correlation analysis, relying on the Statistical Package for Social Sciences (SPSS). Data for the study was collected through questionnaire, and data collected from 266 respondents which constituted the sample size. The study found significant relationship between customer care services and customer loyalty of Union Bank Plc this is considering the fact that customers to stick with a manufacturer who takes time to attend to their needs; to a large extent, as the firm increases in level of commitment, tends to enhance customer perceived value. The concluded that for effective and efficient CRM influences customer loyalty of firms in the banking/finance sector and for sustainable customer loyalty which transforms to customer retention, they should always improve on their relationship management strategies. It recommends that effective and efficient relationship monitoring policies should be put in place for measuring the performance of these relationship management strategies as it will enhance their operations more efficiently. Limitation/suggestions for further studies were given.
TABLLE
OF CONTENTS
Title i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Table of
contents vi
List of
tables viii
Abstract ix
CHAPTER 1
1.0 Introduction 1
1.1
Background of the Study 1
1.2 Statement of Research Problem 3
1.3 Objectives of the
Study 4
1.4 Research
Questions 5
1.5 Research Hypotheses 5
1.6 Significance of the Study 5
1.7 Scope of the Study 7
CHAPTER TWO
REVIEW OF RELATED LITERATURE 8
2.1 Conceptual
Framework 8
2.1.1 Customer Relationship Management (CRM) 9
2.1.2 Customer Identification and Business
Performance 9
2.1.3 Differentiation 10
2.1.4 Cost leadership 10
2.1.5 Business Performance and its indicators 11
2.1.6 Customer Retention and Business Performance 12
2.1.7 The
concept of CRM 12
2.2 Theoretical Review 14
2.2.1 Competitive Advantage Theory propounded by
Michael Porter (1980) 14
2.2.2 Industrial Economics Theory by Porter Michael,
1980 16
2.3 Empirical Review 18
CHAPTER 3
RESEARCH
METHODOLOGY 20
3.1 Research
Design 20
3.2 Area
of Study 20
3.3 Population
of the Study 21
3.4.1 Sampling
Technique 21
3.4.2 Sample Size Determination 21
3.5 Validity
of Instrument 22
3.5.1 Reliability
of the Instrument 22
3.6 Sources
of Data Collection 22
3.7 Method
of Data Analysis 22
3.7.1 Model
Specification 23
3.7.2 Decision
Rule 23
CHAPTER 4
DATA PRESENTATION, ANALYSIS AND INTERPRETATION 24
4.1 Data Collection and Collation 24
4.2 Test
of Hypotheses 25
4.2.1 Hypothesis 1 25
4.2.2
Hypothesis Two 25
4.3 Extent to which Communication of values
enhances Customer
Patronage of Union Plc 26
4.2.3
Analysis of Relationship between CRM of Union Bank Plc and
Customer Satisfaction 27
CHAPTER 5
SUMMARY, CONCLUSION AND RECOMMENDATION 29
5.1 Summary of Findings 29
5.2
Conclusion 30
5.3
Recommendations 31
5.4.1 Managerial Implication of the Study 33
5.4.2 Limitation/Suggestions
for Further Studies 34
REFERENCES
Questionnaire
LIST OF TABLES
Table
4.1
Shows the distribution and retrieval
of copies of questionnaire 24
4.2 Correlation coefficient table showing the
relationship between
4.3
Below shows the extent to which
Commitment to service enhances
customer perceived value 25
4.3 OLS Regression analysis showing the
influence of Commitment to
service enhances Customer Perceived 26
4.4 OLS Regression Analysis showing the
relationship between CRM
and customer satisfaction 27
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background to the Study
In
recent time, there have been increasing emphases on Customer Relationship
Management as an avenue through which firms can achieve competitive advantage
(Njoku & Kalu, 2015). Customer relationship management (CRM) is defined as
a firm’s practices to systematically manage its customers to maximize value
across the relationship lifecycle (Kotler & Armstrong, 2013).
Customer satisfaction is a key factor in any
organization and in numerous researches pointed to the relationship between
customer satisfaction with word of mouth relationship, loyalty; repeat purchase
and increased of organizations profitability (Jones, 2008). In service
industries that provider of services is required communicate and interactivity
with customer, customer overall satisfaction is based on how their meet and
experience of organization. Thus is not far-fetched that firms devoted
considerable resources to measurement and management customer satisfactions.
Understanding
how firms can profit from their customer relationships is highly important for
both marketing practitioners and academics (Boulding et al. 2005; Payne and Frow 2005). Prior research has characterized
customer relationship management (CRM) as fundamentally reshaping the marketing
field and evolving as a part of marketing’s new dominant logic (Day 2004).
Investigators have argued that the firm’s practices for leveraging associations
with customers can be fundamental to sustaining a competitive advantage in the
market (Hogan et al. 2002; Mithas et al.
2005).
However,
these claims are in contrast to growing skepticism about CRM. As Homburg et al. (2007) and Srinivasan and Moorman
(2005) note, managers increasingly raise issues about the real value of CRM.
The Gartner Group (2013), for example, has found that approximately 70% of CRM
projects result in either losses or no bottom-line improvements in firm
performance.
Similarly,
recent academic studies report inconclusive findings regarding the performance
effect of CRM. Consequently,
the direct and unconditional performance effect of CRM has become questionable
(Ryals, 2005).
A
major advantage of CRM lies in its potential to help firms understand customer
behavior and needs in more detail (Campbell 2003; King and Burgess 2008). By
systematically accumulating and processing information across the relationship
lifecycle, CRM enables firms to shape appropriate responses to customer
behavior and needs and effectively differentiate their offerings (Mithas et al., 2005). In particular, CRM can
affect future marketing decisions, such as communication, price, distribution,
and brand differentiation (Ramaseshan et
al., 2006; Richards and Jones 2008).
Banks
have realized that customer relationship is very important factor for their
success. The aim of this study is to examine and analyze the strategic
implementation of Customer Relationship Management and its effect on the
performance of money deposit banks in Nigeria.
1.2 Statement of Problem
The creation of long-term relationships with
customers requires knowledge of the dimensions contributing to the
establishment and maintenance of such relationships. Although numerous
empirical studies have been conducted, most focused on specific sections of the
marketing relationship, such as the influence of satisfaction on trust (Leisen
& Hyman 2014; Liang & Wang 2006), trust on commitment (Razzaque &
Boon 2013; Tellefsen & Thomas 2005) and commitment on an exchange partner’s
intention to stay in a relationship (Abdul-Muhmin 2015; Gounaris 2015), to name
a few. As far as can be ascertained, no comprehensive study of the dimensions
relevant for the establishment of long-term marketing relationships and
enhanced marketing performance has been reported yet.
Despite the literature on the importance of
corporate behaviors and relationship building with stakeholders, very minimal
research was found studying relationship marketing in relation to non-financial
marketing performance (Albassami, Alqahani & Saleh, 2015). In fact, when
the question of how relationship marketing is related to marketing performance
is posed on Google Scholar, not a single paper was found (Albassami,
Alqahani& Saleh, 2015).
Hence, there is paucity of literature of the effect
of customer relationship management and marketing performance of money deposit
banks in Umuahia metropolis, Abia state. This gap has constituted a pressing
issue in the Nigeria financial sector (Ngambi & Ndifor, 2015) and that also
aroused the interest for the study.
1.3 Objective
of the Study
The main objective of this study was to examine the
effect of customer relationship management on the non-financial but marketing
performance metrics. Specifically, the study achieved the following
sub-objectives;
I.
to
examine the effect of customers identification on customer retention in Union.
II.
to
ascertain the effect of communication of values on customer patronage.
III.
to
determine the effect of differentiation on customer satisfaction
1.4
Research Questions
The following research questions were raised to gain
in-depth knowledge on the subject matter and they were as follows;
i.
to
what extent do customers identification influence customer retention In Union
Bank?
ii.
how
does communication of values determine customer patronage?
iii.
to
what extent does effective differentiation affect customer satisfaction?
1.5
Research Hypothesis
Ho1:
There is no significant relationship between customer
identification and customer retention in
Union Bank.
Ho2:
There is no significant relationship between communication
of values and customer patronage
Ho3:
There is no significant relationship between
effective differentiation and customer
satisfaction
1.6
Significance
of the Study
The
banking industry which is a sub-sector of the finance industry most especially
Union Bank Plc that will used as the case in this work will find the
recommendations made in this study as a guiding strategy. The applicability of
the recommendations will yield optimum result to the industry under study and
to others.
The
customer care officer’s capacity will be enhanced by the finding and
recommendations of this study as they will be better equipped to build
sustainable customer relationship for the bank and the services they offer.
The
larger society would be equally benefit from the recommendations and findings
of this work. They would learn that the economic and social justification of an
organization existence is centered on delivering value and satisfaction to the
customer at a profit.
Marketing
students will also benefit from the reviews, findings and recommendations which
will aid their understanding of effective customer relationship on marketing
performance.
Researchers
would also benefit from the study, as it will enrich the theoretical knowledge
of the researchers in the customer relationship management and marketing
performance field. With this study, another source of secondary data will be
added to the existing ones for those interested in carrying out further study
on the subject matter.
1.7
Scope
of the Study
This
research work focused on customer relationship management and marketing
performance of money deposit banks in Umuahia North Metropolis, Abia state. And
as such data was generated from staff of Union banks within the study area.
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