• 0 Review(s)

Product Category: Projects

Product Code: 00005631

No of Pages: 118

No of Chapters: 5 CHAPTERS

File Format: Microsoft Word

Price :



Effects of customer relationship management on brand appeals for their ability to support planning and efficient management of resources and activities in manufacturing organization. The main objective of this write up is to examine customer relationship management on brand appeal in financial service industry in Lagos state, Nigeria. To evaluate the relationship between customer acquisition and brand appeal in the financial service industry. To investigate the significant effect of customer loyalty on brand appeal in financial service industry. The research design is anchored on a quantitative approach to provide a reliable result. The design is less time-consuming and less expensive. The reliability test for the instrument as the measurement scales for the constructs produced Cronbach alpha of 0.728, 0.705, 0.7.01, 0.700, and 0.813 for customer acquisition, customer loyalty. A simple regression was run to predict brand appeal (dependent variable) from customer expectation (independent variable). The table 4.10 indicates that the independent variables yielded a coefficient of determination (R2) of 0.807 accounting for 80.7%% of the proportion of variance in dependent variable that is explained by the independent variables. The table 4.10, then, shows that the analysis of variance for the simple regression data produced F-ratio value of 1068.575 which is significant at 0.05 (. i.e. F (1.350) = 1068.575, p < 0.05). In table 4.10, the independent variable (customer expectation) has positive and statistical significance on response variable (brand appeal). In Conclusion the study confirms the effect of customer relationship management on brand appeal among financial service companies in Lagos Nigeria. It was recommended that Financial services such as banks and insurance companies are advised to move swiftly in their quest to provide enlightenment on the need for theirs brands andBanks and insurance companies are thus enjoined to continually drive brand appeal and awareness and thus endeavour to increase their brand knowledge.

Keywords; Customer Relationship Management, brand appeals financial service industry



1.1       Background to the Study                                                                   1-8

1.2       Statement of the problem                                                                   8-9

1.3       Objectives of the Study                                                                      9

1.4       Research Questions                                                                             9

1.5       Research Hypotheses                                                              10

1.6       Scope and delimitation of the study                                       11

1.7       Significance of the Study                                                                   11

1.8       Operational Definition of Terms                                                         12



2.1       Preamble                                                                                             13

2.2       Conceptual Review                                                                             14

2.2.1    Concept of Customer Relationship Management                               14-15

2.2.2    Component of Customer Relationship Management              15-16

2.2.3    Customer Retention                                                                            16-17

2.2.4    Components of Customer Retention                                                  17-18

2.2.5    Benefits of Customer Retention                                                         18-19

2.2.6    Inertia as a determinant of Customer Retention                                 19-20

2.2.7    High Switching Costs Promotes Customer Retention                        20-21

2.2.8    Customer Satisfaction                                                                         21-22

2.2.9    Components of Customer Satisfaction:                                              22-23  

2.2.10 The relationship between Customer Relationship Management and Customer Satisfaction                                                             23-24

2.2.11 The relationship between Customer Relationship Management and Customer Retention                                                                             24-25

2.2.12 Customer Relationship Management in the Banking Sector 25- 27

2.2.13 Customer Relationship Management and the Factors that Affect Customer Loyalty                                                                                   27-32

2.2.14 Definition and Importance of Brand/Branding                                  32-36

2.2.15 Meaning of Brand Appeal                                                                  36

2.2.16 Brand Image, Customer Satisfaction, and Customer Loyalty                        37

2.2.17 The Impact of Brand Image on Consumer Buying Behavior             37-40

2.3       Theoretical Review                                                                             40

2.3.1    Social Representation Theory (SRT)                                      40-41

2.3.2    Brand Relationships Theory (BRT)                                        41-42

2.3.3    Information Integration Theory (IIT)                                     42

2.4       Theoretical Framework                                                                       43-44

2.5       Empirical Review                                                                                44-52

2.6       Gap in the Previous Studies                                                    52

2.7       Conceptual Framework                                                                       52-54



3.1.      Preamble                                                                                                         55

3.2.      Research Design                                                                                             55

3.3.      Population of the Study                                                                      56

3.4.      Sampling Techniques and Sample Size                                               56-57

3.4.      Data Collection Instrument                                                                57

3.5.      Test of Validity and Reliability of the Research Instrument              58

3.6.      Method of Data Analysis                                                                   59

3.7.      Operationalisation of Research Variables                                           59



4.0.      Introduction                                                                                        60

4.1       Descriptive Analysis of Respondents Profiles                                    60-63              

4.2.      Dimensions of Customers Relationship Management                        36

4.2.1.   Customer Acquisition                                                                         63-64

4.2.2.   Customer Loyalty                                                                               65-66

4.2.3.   Customer Retention                                                                            67-67

4.2.4.   Customer Expectation                                                            68-72

4.3.      Hypothesis Testing and Discussion of Findings                                 72-82



5.0.      Summary of Findings                                                                         83

5.1.      Conclusion                                                                                          84

5.2.      Recommendations                                                                              84-85

5.3.      Suggestions for Further Studies                                                         85

References                                                                                                      86-107

QUESTIONNAIRE                                                                                       108-120






1.1       Background to the Study

The financial sector is the backbone of any economy in the world. The success of financial institutions is highly correlated to the success of an economy (Kaura, V. et al., 2015). There are different types of financial institutions in the financial sector of a country such as banks (public or private), insurance companies, leasing firms and other non-bank financial institutions.

Among all these financial institutions, the banks are the most important financial institutions in the financial sector in any country (Kaura, V. et al., 2015). Relationships always play a significant role in our personal and professional lives such as selecting career paths, being involved in works, being engaged in the social activity and so on. In general, people make most of the major decisions in their lives on the basis of the relationships with persons and firms.

Likewise, customers make their purchase decisions not only on the basis of comparison among goods or services available in the market but also on the basis of the relationships they have with the companies or service providers. Though membership relationship between service provider and the customer is not needed, customers at times are willing to continue the relationships with the service providers to lessen perceived risk while they evaluate the services available in the market because of the intangibility and credence characteristics of those services.

A service is a performance where the employees as service providers play a significant role in delivering the service experience (Bitner, 1995). Besides, the physical setting in which the services are delivered is important as well as favorable to the customers in building and maintaining relationships with a service provider. Customers are the most important resources for generating revenue and profit for a firm, so the relationship management with customers is very crucial for each and every business organization. It has been realized that banking sector is largely customer oriented. For managing the successful relationship with customers, strategic policies are required in the banks.

The core task of Customer Relationship Management [CRM] is to manage customers in systematic ways. And, the final objective of CRM is to make customers happy and loyal because they are the blood supplier for a bank or any financial institution. In the 1980s, the concept of Customer Relationship Management (CRM) was originated from the term "contact management' which focuses on accumulating all relevant information about customers whenever they come in touch with companies (Melnick, E. L. et al., 2000). CRM consists of all steps and processes that organizations undertake to manage their contacts with current and potential customers.

The aim of CRM is to build and maintain a long-term successful relationship with current and prospective customers of the organizations. In CRM, companies collect, store, retrieve and analyze information about their customers for managing the successful relationship with their customers. Hamid (2009) stated that most of the CRM related literature indicates that CRM has high adoption and success rate in the financial sector of developed countries such as United States of America, United Kingdom, and Canada compared with developing countries. It has also been observed that these studies contributed significantly towards the success of CRM in the financial sector of developed countries. In Europe and the United States of America, the banking industry was in the front in responding to opportunities delivered by the computer and internet. And, these responses have come to a fulfillment while the banks adopted customer-oriented strategies stemming from E-commerce.

Despite the benefits of CRM in business, adequate literature is not available on the practice and evaluation of CRM systems in the financial sector of developing countries as well as in Nigeria. In the financial service industry, it is important for a firm to develop and maintain a superior relationship with its customers in this competitive business environment. And, banks are trying to achieve customer lifetime value instead of individual transactions. It can be said that the continuous relationship between the customers and the financial service providers is likely to be more stable, not only because of the personal nature of the exchange but also because of the risk reduction relating to switching to other firms. Eisingerich and Bell (2007) stated that the financial requirements of the customers throughout their lives and the nature of transactions or encounters indicate that a relationship attitude is right for the banking industry. Thus, the financial service providers especially banks should maintain a relationship with their customers as many customers may wish to build and maintain relationships with their providers.

The banking industry is appropriate for studying CRM because their services are complex, customized and delivered over a continual stream of transactions (Eisingerich and Bell, 2007). So, banking industry requires a relationship appeal to customers because of the distinctive characteristics of intangibility, variability, inseparability, complicacy, and involvement of customers. The banking industry has also a lead in CRM and the way it serves customers is highly relevant to CRM. Specifically, its transactions are essentially IT-based and contain valuable customer knowledge that is beneficial to make a better relationship connection with customers (Eid, 2007; Peppard, 2000; Ryals and Payne, 2001).

Consequently, the banks are becoming more customer-centric willing to know how they are perceived by the customers. The most significant area for banks is ensuring customer loyalty because they depend on lifelong relationships with their customers. As the relationships with customers grow, generally profits also grow, so loyalty of the customers ultimately increases the profit of a bank. It has been observed from different studies that banks having a long-term relationship with their customers are likely to produce more profits than other banks. It has also been found that customers having relationships with their banks for five years are more profitable than those having relationships with their banks for one or two years. (Eid, 2007).

Customer Relationship Management (CRM) has gathered a lot of interest recently from academicians and business people (Gruen, T. et al., 2000; Rigby and Dianne,4 2004; Srivastava, et al., 1999; Thomas, et al., 2004), and progressive companies, such as IBM and Boise Cascade, are increasingly prioritizing their CRM investments (Kennedy and Michael, 2004). According to a study on about 1,000 Chief Information Officers (CIOs) which was conducted by Gartner Executive Programs (EXP), about two-thirds Chief Information Officers consider Customer Relationship Management to be a high priority (Thomas, et al., 2004). Many banks have adopted membership relationships in order to develop customer loyalty. Here, the banks ought to recognize that they are operating in a high contact business incorporating the nature of intensive buyer-seller interactions and building a long-term relationship based on the trust, confidence, and satisfaction which directly influence the retention of existing customers and the acquisition of potential clients. The evolution of marketing thoughts and practices has led to a shift from productoriented approach to customer-oriented approach. The focus has been moved from selling as many market offerings as possible to satisfying, delighting and growing as many customers as possible. The reason behind the shift is the globalization of competition and abundance of alternatives to the customers.

To keep pace with the rising complexity of competitions in today’s business world, the marketing focus has been shifted from “product-centric” to “customer-centric” (Bose, 2002; Shah, et al., 2006; Parvatiyar, et al., 2001; Vargo and Lusch, 2008), from undifferentiated marketing to micro marketing (Cravens and Piercy, 2009; Peppers and Rogers, 2011), and from an emphasis on discrete transactions to long-term relationships with superior value creation for customers (Gummesson, 2002; Slater and Narver, 2000; Donaldson and O’Toole, 2007; Lusch, et al.,2010). Today’s banking industry is extremely competitive, intricate, and highly dynamic. The conventional productcentric financial institutions such as bank are becoming customer-centric through achieving the loyalty of the customers which is the main focus of the Customer Relationship Management (CRM).

From the relationship point of view, a long-lasting relationship with current customers is beneficial to the company’s profits because acquiring new customers is much more expensive than retaining existing customers. It has been observed in different studies that the cost of a company is from 2 to 20 times more to get a new customer than to hold an existing customer (Peppers and Rogers, 2011). Successful firms do not just acquire new customers; they bring their current customers back again and again. At present, building relationships with existing customers is of the highest importance to the companies. It is widely accepted that the more the viable and effective strategies are involved in implementing CRM, the more successful the business organization is. As a result, most of the business organizations like banks are trying to apply different tools for maintaining CRM.

Since a lot of companies have perceived the significance of being customer-centered in today’s competitive business environment, they are adopting CRM as a basic business competency. Advantages associated with CRM cover the aspects of customer benefits and the performances of the firms across the different settings. Customer benefits include the creation of superior customer value; customized offerings to fit customers’ needs, reduction of risk associated with the purchase and enhanced customer satisfaction (Lin, et al., 2009; Reimann, et al., 2010; Yao and Khong, 2012). The firm’s performances refer to customer retention and loyalty (Chen, et al., 2009; Croteau and Li, 2003; Jayachandran, et al., 2005), market share, cost reduction, sales growth rate and profitability (Battor and Battor, 2010; Coltman, 2007; Lee, et al., 2010; Lancioni, et al., 2009; Krasnikov, et al., 2009; Reimann, et al., 2010; Soliman, 2011; Wang and Feng, 2012) and enterprise competitive power.

Most of the renowned local and multinational companies are practicing different CRM techniques to build and maintain a long-term profitable relationship with the customers (Rahman, et al., 2006). The true objective of CRM is to create the loyalty of customers. Presently, Customer Relationship Management (CRM) gives emphasis on the loyalty of customers through identifying target markets, acquiring new customers, holding and growing current customers by building strong relationships with carefully selected customers. The development of relationships with customers gives organizations competitive advantage which leads the sustainability of the company in the end. Thus, the success of a financial institution such as bank largely depends on the loyalty of the customers to the bank. Therefore, banks are emphasizing building the loyalty of the customer which is the main focus of Customer Relationship Management (CRM).

There are some factors which determine the loyalty of the customers to the bank. So, identifying the factors and understanding the relationship among those factors are important for a bank to make its customers loyal. In this study, CRM is a philosophy that shows the ways how a company can work in order to build long-term successful relationships with their customers. And, CRM comprises the process of getting, holding, and growing with carefully targeted customers to produce superior value for the company, the customers, and other stakeholders. Banks, an important industry for any economy, are facing aggressive competition in the global financial turmoil. And, traditional banking is no longer enough in today’s competitive business environment and Customer Relationship Management (CRM) has become the key to the survival and success of a bank. So, banks are undertaking substantial measures for their survival in this competitive and uncertain business environment. Today, banks as financial institutions have realized that managing relationships with customers is an imperative factor for their successes.

CRM is a philosophy that can help the banks to develop long-term relationships with their customers and to enhance their profits through the appropriate approaches and the application of customer-centric strategies. Therefore, CRM in the banking industry is of strategic importance. Thus, the aim of this study is to explore the practices of CRM in the financial service industry of Nigeria with a special focus on some selected commercial banks and to develop a model of CRM which can be used by the banks to make their brand appealing to their customers in Nigeria

1.2       Statement of the problem

The unprecedented growth in the number of Banks in Nigeria is a laudable attempt in the development of the financial sector in particular and the service industry as a whole. Most bankers would like to believe that banks are in the finance industry, and not in the service industry. As such they compete in terms of financial prowess rather than service quality. People, resources, time, and systems are devoted more to managing assets and cash rather than managing customers and service. In fact most bank systems are designed to control customers rather than satisfy customers. Products and procedures are set up for the convenience of the bank rather than that of the customer. A big bank may have as many as three vice presidents responsible for guarding its assets, but no one to take care of customer service and complaints. Banks usually give customer service and satisfaction very low priority, and accordingly assign it to a low level, if not lowly paid manager. It must however be noted that, the lifeblood of any business is its customers. Profit comes from sales minus cost. Customers decide sales based on their perception of product and service quality. In short, quality determines profits, and customers alone define and determine what that quality is and should be. In every business organization an effective implementation of a widespread CRM ensures positive returns on investment with minimal wastage of valuable resources and cost reduction. Therefore, there is the need to conduct a thorough study to assess the application of CRM in the financial institutions in order to ascertain a way of effectively implementing of customer relationship management within the banking sector.

1.3       Objectives of the Study

The major aim of this study is to examine customer relationship management on brand appeal in financial service industry in Lagos state, Nigeria.

  1. To evaluate the relationship between customer acquisition and brand appeal in the financial service industry
  2. To investigate the significant effect of customer loyalty on brand appeal in financial service industry
  3. To determine the influence of customer retention on brand appeal in the financial service industry
  4. To find out the relationship between customer expectation and brand appeal in the financial service industry

1.4       Research Questions

In light of the above objectives, undertaking of this research project will examine the following research questions:

  1. What is the relationship between customer acquisition and brand appeal in financial service sector?
  2. To what extent has consumer loyalty affected brand appeal in financial service sector?
  3. Of what influence is customer retention on brand appeal in financial service sector?
  4. What is the relationship between customer expectation and brand appeal in financial service sector?

1.5       Research Hypotheses

In the course of this study, the following hypotheses will be tested:

  1. H0:       There is no significant relationship between customer acquisition and          brand appeal in financial service industry
  2. H0:       Customer loyalty has no significant effect on brand appeal in financial        service industry
  3. H0:       Customer retention has no significant difference on brand appeal in the financial service industry
  4. H0:       Customer expectation has no relationship with brand appeal in the   financial service industry

1.6       Scope and delimitation of the study

The scope of this study is premised on the relationship between customer relationship management and brand appeal. The specific variables of interest are customers’ acquisition, customer loyalty, customer retention, customer expectation, and brand appeal.  The study cover banking and insurance services industry in Lagos state, the choice of Lagos is because many of the banks and insurance companies are domicile in Lagos state. [Central bank of Nigeria bulletin 2019, Nigeria Insurance Association 2019].The study will also be limited to be perception of customers of these selected financial institutions.

1.7       Significance of the Study

This is because further studies in this area will identify the areas covered and further dwell on the untapped fields of research. The results of this research would add to the scarcely available information on the effect of Customer relation management on brand appeal in financial service industry. This study will form a strong foundation for future researchers who would like to pursue a study in the area of Customer relation management on brand appeal in financial service industry. This study will therefore be of great significance as it will add to the already existing literatures. It is anticipated that the analytical, conceptual and empirical studies will enhance the understanding of significant issues in Customer relation management on brand appeal. It would also be useful to university students like students of Lagos State University when doing a likely research. The study would be significant to policy makers and policy implementers, as they would make use of the findings and recommendations of this study.

1.8       Operational Definition of Terms

Customer Acquisition: Customer acquisition is the process of acquiring new customers for business or converting existing prospect into new customers.

Customer Loyalty: Customer loyalty is an ongoing positive relationship between a customer and a business. It's what drives repeat purchases and prompts existing customers to choose your company over a competitor offering similar benefits.

Customer Expectation: Customer expectations refers to the perceived value or benefits that the customers seek when purchasing a good or availing a service. They are the result of the ‘learning’ process and can be formed very quickly because even first impressions matter a lot. Once established, these expectations can hold significant influence in decision-making processes and can be very hard to change.

Customer Retention: Customer retention refers to the ability of a company or product to retain its customers over some specified period. High customer retention means customers of the product or business tend to return to, continue to buy or in some other way not defect to another product or business, or to non-use entirely.

Customer: This is defined as a regular buyer of a firm’s market offering.

Brand: This is a mechanism for gaining competitive advantage through differentiation.

Click “DOWNLOAD NOW” below to get the complete project material


+(234) 0814 780 1594

Buyers has the right to create dispute within seven (7) days of purchase for 100% refund request when you experience issue with the file received. 

Dispute can only be created when you receive a corrupt file, a wrong file or irregularities in the table of contents and content of the file you received. 

ProjectShelve.com shall either provide the appropriate file within 48hrs or send refund excluding your bank transaction charges. Term and Conditions are applied.

Buyers are expected to confirm that the material you are paying for is available on our website ProjectShelve.com and you have selected the right material, you have also gone through the preliminary pages and it interests you before payment. DO NOT MAKE BANK PAYMENT IF YOUR TOPIC IS NOT ON THE WEBSITE.

In case of payment for a material not available on ProjectShelve.com, the management of ProjectShelve.com has the right to keep your money until you send a topic that is available on our website within 48 hours.

You cannot change topic after receiving material of the topic you ordered and paid for.

Ratings & Reviews


No Review Found.

To Review

To Comment