ABSTRACT
The study examined effect of CRM in customer satisfaction of selected fast food in Umuahia. The study ascertained the relationship between CRM dimension (trust, communication, promise fulfillment and conflict handling) and customer satisfaction. 80 questionnaire were distributed and used. Multiple Regression was used to test the hypothesis raised in the study. The researcher revealed that all the variable of CRM studied has a significant relationship with customer satisfaction except trust. The researcher conclusion, that fast food industry should concentrate their efforts on trust, commitment, communication, promise fulfillment and conflict handling as they can be seen as a factor influencing customer satisfaction. The researcher recommends that fast food industry should constantly review their service quality and CRM application, there should also be plan on ground to survey customers believability of the CRM practices in fast food.
TABLE
OF CONTENTS
Title page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Table of Contents vi
List of Tables viii
List of Figures ix
Abstract x
CHAPTER ONE
INTRODUCTION
1.1
Background to the Study 1
1.2 Statement
of the Problem 3
1.3 Objectives
of the Study 4
1.4 Research
Questions 4
1.5 Research
Hypotheses 5
1.6 Significance
of the study 5
1.7 Scope
of the Study 6
1.8 Operational
Definition of Terms 7
1.9
Study Limitations 8
CHAPTER TWO
REVIEW OF RELATED
LITERATURE
2.1 Conceptual
Frame Work 9
2.1.1 Nature and Meaning of Marketing 10
2.1.2 Customer Relationship Marketing 12
2.1.3 Dimensions
of Customer Relationship Marketing (CRM) 19
2.1.4 Customer
Satisfaction 24
2.2 Theoretical
Framework 28
2.3 Empirical
Review 29
2.4 Gap
in the Literature 31
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research
Design 32
3.2 Area
of the Study 32
3.3 Population
of the Study 33
3.4 Sample
Size and Sampling Techniques 34
3.5 Method of Data Collection 35
3.6 Method of Data Analysis 36
3.7 Test
of Validity 37
3.8 Reliability
of the Instrument 37
CHAPTER FOUR
DATA PRESENTATION,
ANALYSIS AND INTERPRETATION
4.1 General
Description 38
4.2 Hypotheses
Testing 41
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary
to the Findings 44
5.2 Conclusion
45
5.3 Recommendation 45
REFERENCES
APPENDIX
LIST OF TABLES
Table 4.1: Sex
Distribution of Respondents
Table 4.2: Marital Status of Respondents
Table 4.3: Educational
Level of Respondents
Table 4.4: Age
Distribution of Respondents
Table 4.5: Occupation of Respondents
Table 4.6: Income
Level of Respondents
Table 4.7: Customers’
view on level of customer relationship marketing offer by Hoffers and Crunchies
(n = 69)
LIST OF FIGURES
Fig. 2.1: Research Variables 9
Fig. 2.2: Theory
of Reasoned Action 29
CHAPTER
ONE
INTRODUCTION
1.1 Background
to the Study
The fast food industry is seen today
as one of the fastest growing industries in the global market. It has undergone
tremendous changes during the last few decades. (Gu & Kim 2002 in Fridaus
& Agnes, 2013). The fast food industry is highly competitive and dominated
by large companies. (Kannammal & Suvakkin, 2016).The concept of fast food
started in early 19th century, at the industrial age when people had
to work for 12 to 14 hours a day, there was scarcely any time for long breaks for
eating. Today, quick meals outside the home have become an essential part of
our lifestyle (Nisa, 2005).
Fast-food is the term given to food
that can be prepared and served very quickly. (Kannammal & Suvakkin, 2016) in
recent years marketing has showed dramatic change in the ways companies
approach and communicate with customers. As a result of the changes in
marketing activities, companies have to adapt to customer relationship
marketing (CRM) which consist of the development of a long lasting relationship
base on trust, empathy, communication, conflict handling, promise fulfillment,
preferential treatment and commitment (Adekseyeva, 2015). In recent studies,
the concept of customer relationship marketing (CRM) has become a popular and
prominent topic of interest for marketing research.
In today’s highly competitive
marketing environment, fast food industries are unable to survive with their
transactional attitude towards customers. They have to be more rational in
choosing the most suitable approach for justifying and maintaining customers
(Hollensen, 2010 cited in Velnampy & Sivesan, (2012) Customer relationship
marketing has become a necessity in order for fast food industry to survive,
considering the competitors in the industry as cited by (Velnampy & Sivesan,
2012).The main goal of the relationship marketing is to build mutually
satisfactory long-term relationship with key constituents in order to gain and
maintain their business. Customer relationship marketing (CRM) is replacing the
traditional ‘4ps’ of marketing. Long term relationship with customers are the
key to stability in an increasingly changes in market. Customer relationship
marketing has become the main strategy to retain customers for fast food
irrespective of its size.
Despite the fact that relationship
marketing is widely acknowledged as an important tool to gain and increase
customer retention, loyalty and satisfaction, yet few studies exist in fast
food industry in Nigeria. Therefore, this study intend to focus on customer
relationship marketing (CRM) on customer satisfaction in fast food industries
in Abia State.
1.2 Statement of the Problem
Considering the competitive nature of
the fast food industries in Nigeria, the question left is how to develop a good
customer relationship in order to create intimacy and a level of trust that
will promote customer satisfaction.
As the fast food industry becomes
more turbulent, the most important issue the seller face is no longer how to
provide an excellent, quality product or service but also to keep loyal
customer who will contribute to long-term profit to the organization.
The Nigeria fast food industry is
more concerned with how to satisfy, maintain and improve customer satisfaction
through Customer Relationship Marketing.
Numerous studies have been carried
out on relationship marketing on customer satisfaction (Fernando and
Karunanithy, 2013; Alibhai, 2015; Vahdat, Abdolmolmanafi and Sarlak, 2014;
Desbordes, 2011); all these are on banking industry but not in Nigeria while
the studies carried out by Belnampy and Sivesan (2012) focused on mobile
service providing companies in Sri Lanka, and
not in Nigeria.
While the studies carried out by
Abdullah & Kanyan (2013) focus on food service industry not in Nigeria.
Ibok (2007) focuses on fast food industry and was conducted in Nigeria but not
in Crunches and Hoffers Umuahia branch, Abia State. Again inadequate empirical
studies have been carried out on effects of Customers relationship marketing on
customer satisfaction. In order to fill the knowledge gap in Abia state and
ensure that customers are satisfied at a profit of the fast food.
The research intends to carry out a
research the effect of CRM on customer satisfaction using the dimensions of CRM
to achieve it.
1.3
Objectives of the Study
The general objective of the study was
to examine the effect of customer relationship marketing on customer
satisfaction. The specific objectives are to:
i.
determine the effect of
trust on customer loyalty in the fast food industries in Abia State.
ii.
ascertain the effect of
promise fulfillment on customer
retention in the fast food industries in Abia State.
iii.
determine the influence
of conflict handling on repeat purchase in fast food industries in Abia State.
iv.
determine the effect of
communication on customer loyalty in the fast food industries in Abia State.
1.4
Research Questions
In order to achieve the above stated
objectives on the effect of customer relationship marketing on customer
satisfaction; the following research questions were used to guide this study.
i.
to what extent does trust enhance customer
satisfaction?
ii.
what effect does
communication have on customer satisfaction?
iii.
to what extent dose
promise fulfillment influences customer satisfaction?
iv.
does conflict handling
enhance customer satisfaction?
1.5
Research Hypotheses
The study is anchored on the
following testable null hypothesis.
HO1: There is no
positive relationship between trust and customer satisfaction.
HO2: There is no positive relationship
between communication and customer satisfaction.
HO3: There is no
positive relationship between promise fulfillment and customer satisfaction.
HO4: There is no
positive relationship between conflict handling and customer satisfaction.
1.6 Significance of the study
Customer relationship marketing has
become one of the diverse ways food industries can use to satisfy and retain
their customers. And this study is expected to be of importance to the
management of fast food industries in Nigeria. It will helpful to highlight
areas of improvement for the fast food industry and the need for managers to
try to deepen their relationship with their customers as a way of ensuring
sustained profitability in a highly competitive industry.
To the government and policy makers,
the study would provide insights at different levels on how best to tap into
the vital role of fast food industries as drivers of economic growth. And this
study, as a result will be of a very large significance to some group of people
as highlighted below;
i.
The fast food industry
will be the source of information input for marketing decisions. This will be
especially in the areas of identification, targeting, satisfaction and
retention of customers over a period of time.
ii.
The researcher will see
the study as a source of data for related study; such that it will serve as
literature in their research process.
iii.
The student, lecturers and other people in the
academics will see the study as source of knowledge for the teaching and
learning purposes. Such will help add to their classroom knowledge of
marketing.
iv.
The study will serve as
some academic purposes. It will serve as a references material to those who
would carry out studies in related areas in the future.
1.7
Scope of the Study
This study was domiciled in the area
of consumer behaviour. The Geographical
scope was in Hoffers and Crunchies, Umuahia, Abia State. The coverage scope was
be made up of customers of Hoffers and Crunchies fast food in Umuahia, Abia
State.
1.8
Operational Definition of Terms
i.
Customer:
This is the final user of the
service/product of the organization
ii.
Fast
food: It is the term given to food that can be
prepared and served very quickly.
iii. Relationship Marketing: This
is the marketing strategy directed towards the identification, satisfaction and
retention of the customer at a profit.
iv. Satisfaction: This
is a person’s feelings of pleasure or disappointment resulting from comparing a
product perceived performance (or outcome) in relation to his/her expectations.
v.
Trust:
This refers to relying on someone’s word.
vi. Communication: This
is a transfer of information from one person to another, whether or not it
elicits confidence.
vii. Promise fulfillment:
This refers to a declaration one will say and fulfill it .
viii. Conflict handling: This
is the ability of the service providers to handle conflict appropriately which
will also directly influences the customer loyalty.
1.9 Study Limitations
i.
The sample of this study
covers the customers and management of two fast food industries in one State,
so there is a need for another study that takes into consideration a number of
different fast food industries in the state.
ii.
This research is
developed for the fast food industry. Therefore, result generalization is
limited only to fast food industries and cannot be extended to other services.
From a methodological perspective, the result from this study can only be
generalized for fast food industries, due to the fact that it has only been
applied to these business models.
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