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Customer Relations Management (CRM) Reflection

Customer Relations Management (CRM) Reflection

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Introduction

Customer Relations Management (CRM) is a package of processes and technology that is used as a tool in the management of business relationships to make them more efficient by managing customer information by capturing, storage and analysis of customer, vendor, partner, and internal processing of the information. Many companies have adopted Customer Relations Management, and failed in their implementation. Customer Relations Management system is a tool for better utilizing the data and processes that are currently in place and improve the processes and the main reason for its failure is looking at Customer Relations Management as a technology rather than a strategy, others include not gaining user support and involvement, and not making the necessary changes to the organization and its culture which needs to become more customer oriented to successfully implement Customer Relations Management and remain competitive in today’s economy

Customer relationship management projects are more destined to address the components of efficiency and effectiveness as on one hand the company needs to be effective on the market in order to manage relationships with customers, maintain its market share and improve its market penetration and on the other hand efficiency need. Hence this calls for the information technology departments need to conduct careful evaluations of information technology investments and projects, as it is very difficult to understand whether initiatives have a return on investments or at least a direct and clear payback, (Rajola, 9)

The evolution of CRM applications

The steps in the evolution of management information systems are as a result of a large number of technological innovations allowed the development of some decision supports which were mostly not integrated into the existing information system. The reconsideration of the strategic value and matters are attributed to reasons such as the progressive evolution of the internet, the increased competition level, and the ability to operate in geographically distant markets through e-business initiatives; therefore integrated solutions that are well-suited to allowing for automation of company-customer interaction are being looked for, in order to gain a durable competitive advantage.

Evolving technology and the constant changes affecting the banking industry are increasingly pushing toward research into integrated solutions, in order to maintain and enhance customer relationship; it is not only about seeking technically updated solutions: the practical issue is how to intervene in businesses such as banks so as to turn banks into customer centered organizations

Today’s technology allows the easy replication of products as on the other hand provides a push towards mass personalization, with creation of tailored products per customer profile at the most appropriate time and through the proper channel. In its turn, the offer of customized products and services which satisfy all customers’ needs requires a thorough redefinition of the sales processes as on the other hand the ability to intervene effectively by way of internal organizational variables is one of the critical factors in the success of customer relation management projects and this requires the transition from a product-oriented to a customer-oriented business process, (Rajola, 18).

The goals of in depth understanding of customer’s purchase preferences and the ability to anticipate their needs seem to be within reach and in fat industries such as the banking sector have an information base potentially available to them that remains mostly unused: transactions carried out. Every time a customer is in touch with this bank, he implicitly provides information on his characteristics, needs and preferences as the transactions carried out are a powerful data and information, which, used properly, allow elaboration of the individual customer’s purchase profile and determination of the elaboration channel that suits him best, and outline his life cycle in such a way that the bank can understand how the relationship evolves over time

Its purpose is to help enable an increase in sales through customer acquisition, retention, and service and not simply a software package for storing customer and business information, but a concept that can vary from one organization to another though one sized doesn’t fit all, so implementations can vary greatly. There are a variety of benefits involved in the putting up of a Customer Relations Management solution but at the same time it might involve a lot of time and expense to implement one. A business becomes more successful depending on the type of relationship it has with its customers and therefore IT systems like point of sale terminals deal with this problem of dealing with the customers on a daily basis

Categories of CRM

Customer Relations Management solutions can be broadly categorized into several groups; Outsourced solutions, where the application service providers provide web-based Customer Relations Management solutions for the business and this approach is ideal if you need to implement a solution quickly and your company does not have the in-house skills necessary to tackle the job from scratch and is also a good option if the business is already moving towards online e-commerce. Off-the-shelf solutions, that is provided by software companies and therefore integrates with the packages that already exist in the business. Smaller businesses only need a miniature version of this software, which is a cheap option as the investment is in standard software components even though the software may not always do precisely what you want and you may have to trade off functionality for convenience and price.

Custom software is one where the consultants and the software engineers will create a Customer Relations Management system that suits the business needs specifically. The downside is that this will be expensive and time consuming and thus if this option is chosen make sure you carefully specify exactly what you want. Managed solutions, is a compromise between the custom and outsourced solution that involves renting a customized suite of Customer Relations Management applications as a tailored package which makes it cost effective but it may mean that you have to compromise in terms of functionality, (Effy, 91)

Tesco

According to Rainer & Cegielski (325), Tesco is a British multinational grocery and general merchandise retailer headquartered in Cheshunt that is second in the world in terms of profits and third-largest retailer in the world in terms of revenue; Tesco has stores in 14 countries across Asia, Europe and North Americaand it has now grown to be the biggest grocery store in the United Kingdom; the company was started as a group of market stalls in 1919 by HYPERLINK “http://en.wikipedia.org/wiki/Jack_Cohen_%28businessman%29” o “Jack Cohen (businessman)” Jack Cohen and the name Tesco first appeared in 1924, after Cohen bought a shipment of tea from T. E. Stockwell and combined the initials with the first two letters of his surname it is then that first Tesco store opened in 1929 in HYPERLINK “http://en.wikipedia.org/wiki/Burnt_Oak” o “Burnt Oak” Burnt Oak, HYPERLINK “http://en.wikipedia.org/wiki/Middlesex” o “Middlesex” Middlesex and by 1939 there were over 100 Tesco stores in the whole country then since the early 1990s Tesco has increasingly HYPERLINK “http://en.wikipedia.org/wiki/Diversification_%28strategy%29” o “Diversification (strategy)” diversified geographically and into areas such as the retailing of books, clothing, electronics, furniture, petrol and software; HYPERLINK “http://en.wikipedia.org/wiki/Financial_services” o “Financial services” financial services; HYPERLINK “http://en.wikipedia.org/wiki/Telecoms” o “Telecoms” telecoms and internet services; DVD rental; and HYPERLINK “http://en.wikipedia.org/wiki/Music_downloads” o “Music downloads” music downloads and this has made it grow from 500 stores in the mid-1990s to 2,500 stores fifteen years later.

Tesco is different from other companies because if does not put all its priorities on investors but rather focuses on serving the customer as the ultimate priority and this makes Tesco stand out. Tesco knows how to adapt themselves properly to every country as they learn the way things work locally, and interact with the local community as it plans to expand all over which also makes them unique. Corporations have used manual Customer Relations Management system for many years until the electronic Customer Relations Management systems came into play in the mid 1990’s when organizations began using the internet and other electronic points to manage customer relationships. Customers thus have a direct interaction with these systems rather than the representatives as is the case with customer-facing applications that are known as customer touching Customer Relations Management applications or electronic Customer Relations Management applications; with these applications, the customers are able to help themselves, (Rainer & Turban, 17).

At one time, Tesco struggled to remain the number two store in Europe since it had poor customer retention and same-store sales that eroded the company’s market position and profitability. It had to improve its sales, market share and also profitability and therefore in an attempt to do this they implemented a loyalty program called the Tesco Club Card. Tesco had information systems that were designed around a product based cost approach in that most stores would maintain their own profit margin through managing the cost of products and partnerships with suppliers yet this did not support the customer- centric approach that was needed to revive its business.

The Club Card program

Tesco thus corrected this issue by implementing a Customer Relations Management system that covered all their stores called the Club Card program which enables Tesco to collect, store and analyze data that is generated by the customers by placing each customer in one of three categories; cost-conscious, mid-market and up-market and this segments are further divided into shopping tendencies such as healthy, gourmet, convenient, family living and others. Tesco then targets communication to each customer segment then tailors communication according to the customer’s individual behavior and needs thus helping Tesco reach the right people in the right way and with the correct communication.

Dunnhumby, a marketing research firm in Britain was hired by Tesco to develop its Consumer Relations Management system. What Dunnhumby does is that it gets data from credit card companies and analyses to find out the information about their client’s current customers and their behavior in terms of shopping. They analyze three types of data, customer data, sales data and the normal traditional market research data to provide valuable insights into customer behavior. Dunnhumby then uses the information they get to create customer oriented action plans which are ideas to make their clients business better by matching aspects of clients retail operations with the customer’s needs and aspirations, (Rainer, 21).

Its competitors did not realize that Tesco was capturing valuable information with every swipe of the card and building a powerful database of customers, which it gained through card membership information and its competitors dismissed the whole idea as nothing new. But in fact, it was the idea that greatly contributed to the stores success, (Manfred, 54)

The Club Card provides important information to the company about the customer behavior in the store such as product that they bought or didn’t buy, where they spent most of their time in the store, and where they were not as measured by their purchases. The customers then received offers to visit parts of the store that they hadn’t visited and seen and Tesco also created a variety of lifestyle magazines for different customers and the higher value customers got calls from the manager of the stores and also valet parking and other special treatment and privileges.

Tesco built virtual warehouses as opposed to physical warehouses that are devoted to specific product ranges and many of these were created in partnership with specialist suppliers using the Club Card to target potential customers after monitoring their shopping behaviors. Tesco insisted that the Club Card was a part of shopping online and this created a strong link between the physical and online sides of business since the card allowed customers to shop online as they would if they went to the store based on their choices and they got the same rewards for loyalty. This in turn made shopping online equally as popular as going to the stores physically

Clive,Hunt, & Phillips (244), argue that the Club Card program now has over 10 million active households and Tesco’s Customer Relations Management system provides multidimensional customer segmentation and tailored communication that was able to print and mail 4 million unique quarterly club mailing coupons targeting particular customer segments thus proving to their customers that their grosser understands what they need and want. The club card program delivers loyalty rewards to its customers where they earn meals out, travel, dry cleaning and even car maintenance. The loyalty program extends up to the company’s business partners and thus introducing the Tesco customers to other businesses that meet customer specific objectives

How the Club Card works

In 1996 Tesco created two new cards for their customers, a student card and another card for mothers, with offers particularly suited to their individual needs. Tesco then added a travel service through a partnership with Lunn Poly, giving discounts off high-street prices and then combined its card with Visa through the Royal Bank of Scotland, and gave discounts on do-it-yourself (DIY) goods through well-known home improvement chain B&Q. Customers collect one Club Card point for every £1 (or one point for €1 in Ireland and Slovakia or 1 point for 1zł in Poland) they spend in a Tesco store, or at Tesco.com, and 1 point per £2 on fuel (not in Slovakia) also, Customers can also collect points by paying with a Tesco Credit Card, or by using Tesco Mobile, Tesco Home phone, Tesco Broadband, selected Tesco Personal Finance products or through Club Card partners, HYPERLINK “http://en.wikipedia.org/wiki/E.ON” o “E.ON” E.ON and HYPERLINK “http://en.wikipedia.org/wiki/Avis_Rent_a_Car_System” o “Avis Rent a Car System” Avis.

Club Card statements are sent to the holders 4 times a year to update them on their loyalty points, which often feature extra point coupons and money-off coupons which can be spent in the store, online or on various Club Card deals. It was in 1997 that it added a full range of financial services, and the Tesco Direct service where adding value was mandatory to these functional items so, for instance, the expectant mothers got priority for parking outside the store, had changing facilities available for them, and were provided personal shopping assistants to help themaround when they came to the store. In 1998, after the U.K.’s deregulation of utilities, Tesco began to offer electricity and telecommunications products and services and also in the same year, clothing was added to the range of products through Next. By this time, Tesco had identified 108 customer market segments and by the year, 2000, collaboration with General Motors enabled customers to buy cars from Tesco directly. The company is now on the path to becoming a successful international brand, expanding into Asia by taking over the Lotus supermarket chain in Thailand, where customers can now buy scooters (tescooters) and have them delivered to their homes but adding value to the customer relationship is still the driving force behind Tesco’s success.

Noting the interest of some customers in the Internet, Tesco also sells goods online, and deliver products to the customer’s door, by refrigerated truck, if necessary and by visiting the company’s website (www.tesco.com) you get the same friendly look and feel that people get in Tesco’s physical stores. Everything is made easy, and you can buy a variety of products that include groceries, books, CDs, furniture, videos, and other items, as well as arrange your personal finance and, of course, every time there is a transaction, the loyalty points mount up. And as the points accumulate, more and more relevant special offers and privileges are given and therefore all in all, the company offers great value and a great experience.

Tesco’s expansion strategy

For technical support, Tesco acquired a small company called The PC Guys in 2008, and were able to launch Tesco Tech Support in December where Teams of Advisors were put into all Extra stores with the sole job role of answering technical questions on Tesco’s range of electrical products and also are responsible for advising customers on extended warranties, electrical returns and a range of finance options; via their Customer Service Centre located in Cardiff in the United Kingdom, Tesco Tech Support provides UK and Ireland customers with technical support via telephony system on the electrical products sold in their stores

Successes of the Club Card program

Since Tesco started the program, its sales increased by 52 percent and they are still rising, while the cost per redemption has lowered and the club coupon redemption is in the range of 20-40 percent. The quick growth in revenue is proof that the company achieved its customer focus since the customers began to feel appreciated and thus developed a liking for the company. The success is so great that their website also has 500,000 or more transactions per week.

Challenges of the Club Card program

Although the Club Card has a lot of merits, it has a few demits of its own, it is expensive to develop a database and even more expensive to maintain it yet this is what is needed to sustain the loyalty program. Keeping the loyalty scheme alive is also a tremendous task but in this case Tesco got it right by micro segmentation, adding financial services, creating a retail that is multi channeled and includes the web etc. to sustain the growth achieved through the launch of Club Cards, Tesco decided to adopt a four pronged approach of launching better and bigger stores on a frequent basis and offering competitive prices for example offering everyday low prices in the staples business and increase the number of products offered in the Value range; and focus on remote shopping services which included the online shopping venture.

Some customers may not want close relationships or be too keen on having information about them collected, In “Scoring points”, there is a story of a wife that complained about condoms that out of the blue showed up on her custom online shopping list, since her husband never used them but then it turned out that he did use them, but not with his wife and his is fault was that he bought the condoms in a Tesco shop with his Club Card that was integrated to the web solution which is how it was shown to his online-shopping wife. This case is an extreme example that is very illuminating for the sensitivity of data that the store handles, (Ralph & Reynolds, 48).

Works Cited

Humby, Clive, Terry Hunt, and Tim Phillips. Scoring Points: How Tesco Is Winning Customer

Loyalty. Sterling, VA: Kogan Page, 2004. Internet resource.

Kochen, Manfred. Principles of Information Retrieval. Los Angeles: Melville Pub. Co, 1974.

Print.

Oz, Effy.Management Information Systems. Boston, MA: Course Technology, 2002. Print.

Rainer, R K, and Casey G. Cegielski.Introduction to Information Systems: Enabling and

Transforming Business. Hoboken, NJ: Wiley, 2012. Print.

Rainer, R K, and Efraim Turban.Introduction to Information Systems: [enabling and

Transforming Business]. Hoboken, NJ: J. Wiley, 2009

Rainer, R K. Introduction to Information Systems: Enabling and Transforming Business. S.l.:

John Wiley, 2012. Print.

Rajola, Federico. Customer Relationship Management: Organizational and Technological

Perspectives. Berlin: Springer, 2003. Print.

Stair, Ralph M, and George W. Reynolds.Principles of Information Systems. Boston, Mass:

Course Technology, Cengage Learning, 2012. Print

Posted in Uncategorized

Customer profile of the carryout fragment

Customer profile of the carryout fragment

Introduction:

The exploration paper on Customer profile of the “carryout” fragment for restaurant gives a thought of the clients profile for the “carryout” section at different types of restaurant. My examination points will attention on the central assessment of the distinctive procedures that the analyst had use in the paper and how it can be enhanced for the better conclusion of the exploration. “Carryout” fragment is the fundamental part focused around what the examination has been completed, so before moving into the profundity of the issue of the approach utilized behind the exploration, I must say something in regards to the “carryout” restaurants to acclimate the peruser with it. “Carryout” requests create an expansive volume of offers to all sort of fast administration restaurant (Qsr’s). These are the restaurants where the clients come and call ahead, submit their request and after that hold up in their auto while a restaurant worker serves the sustenance and methodology the installment. Brisk and better administration with quality nourishment is the fundamental adage of this sort of restaurant. With an undeniably quick and occupied timetable of human life the “carryout” requests or QSR’s are getting to be prevalent among the clients of all gatherings. In the examination paper the analyst has picked quantitative methodology towards his exploration. He has made overview with some organized survey in two restaurants in Western Massachusetts in excess of one week of period in a spring. What’s more focused around the study done he attempted to discover the client profile who “carryout” sustenance in any event once a week from any kind of restaurant and after that contrasted them with the profile of all clients who ‘feast out’ to see whether there are any noteworthy contrast.

Research Question

‘Is the specialist’s examination legitimate’? ‘Does his proof help his decision’? ‘How well did he apply his exploration system’? ‘By what means may the specialist examination be moved forward’? – In this exposition I will attempt to assess this issue from my perspectives and will make an endeavor to discover an option research proposal.

Literature Review:

Market Segmentation is getting to be progressively critical for advertisers to support in the focused business sector. It’s turned into a critical technique in the restaurant business additionally. Distinctive item ranges target diverse clients. Division helps advertisers comprehend and the needs of distinctive clients better and serve them with better esteem suggestion. As Wright (2004) propose, division is hence the capacity to ‘partition the business sectors into gatherings, or groups, of clients based upon sensible and significant criteria in order to offer clear, focused on profits to each clients’.

Kotler.p (2000) recommends that market division is ‘the subdividing of a business into homogeneous (or comparable) subsets of clients, where any subset might possibly be chosen as an issue business sector to be arrived at with an unique business sector blend’.

On the off chance that the advertisers know which specific business they are focusing on, they can plan their advertising blend to suit the client in the business. In the event that advertisers need to change over their potential clients into genuine client they need to create their correspondence program adequately to get those focused on clients.

Once the division methodology fulfills the five models, the following step is to pick the division variables that would be best at fragmenting the business sector. Market division is carried out through the assistance of taking after variables:  Geographic: Region, city or metro size, atmosphere, Demographic: Age, family estimate, family life cycle, sexual orientation, salary, occupation, religion, race, nationality, social class, Psychographic: Lifestyle, identity, and Behavioral: Occasion, advantages, client status, use rates, unwaveringness

Scrutinize on business division in accommodation and tourism has created since 1980s. A large portion of the division look into in the restaurant business is focused around the recognizable proof of determinant qualities and their utilization in selecting restaurants. Bahn and Granzin (1985) distributed one of the most punctual papers including business division for restaurants. The creators built the utilization of the profits looked for in fragmenting the business sector for fast-food restaurants. Kivela (1997) utilized what he called the “determinant traits investigation strategy” to portion the business for restaurant in Hong Kong. Clark and Wood (1999) utilized determinants properties as a part of an endeavor to distinguish the “dedicated” clients. Becker-Suttle et al. (1994) analyzed age (seniors and non seniors) and profits looked for of full-administration restaurants, while Shank and Nahhas (1994) thought about the feasting inclination and the practices of the experienced and more youthful clients for a family restaurant. It was likewise discovered that restaurant utilization practices changes in diverse period of life cycle (Withiam, 1985). Area or spot is one of the indispensable advertising blends for any restaurant. Accordingly the geodemographic is utilized to focus an area that has enough populace of potential clients who fit the demographic profile of the target section (Muller and Inman, 1994). Most as of late, Blose and Litvin (2005) took a gander at the social qualities and their capacity to give a premise to dividing restaurant clients. Consequently, this study will endeavor to distinguish the “carryout” portion utilizing a blend of demographic, determinants characteristic, and eating practices.

Overview of the Research:

Methodology:

The researcher had likely utilized the ‘overview strategy’ in his examination paper. Before explaining on the systems I would first clarify what is implied by overview. The overview is a kind of examination strategy for social affair information straightforwardly from the clients through a survey. In his examination paper the researcher has taken specimen of clients from two restaurants in Western Massachusetts. Furthermore the exploration has done in excess of one week period in the spring. The restaurants are arranged in a populated piece of the city. The study was carried out amid the entire week including weekend. Prepared questioners are locked in with the overview. They have arranged an organized specimen survey which is given to the grown-up clients of every group of the clients. What’s more the respondents are asked to give back that to the questioners or drop it off at the lady remained on the way out.

Data Collection:

The survey or information gathering instrument comprised of three sections. The main part contained inquiries concentrating on the eating conduct of the respondent, the second part comprised of view of restaurant administration and the third part was utilized to get the demographic profile of the respondents. The drafts of the poll was at first looked into by the troughs of every restaurant furthermore tried on a little gathering of clients. The aggregate length of the poll was 2 pages and it took 5-10 minutes to answer the organized inquiries.

Results:

On that specific week the specialist have finished 446 overviews. The reaction from the client was likewise high; the reaction rate was very nearly 84% for the study.

No. of studies appropriated

Reaction rate of the client every day = – –

No of returned study

Through the study the researcher has figured out 3 different sorts of result or data.

1. Demographic profile: Here it was discovered that in excess of half of the respondents are in the three most youthful age gather (18-34, 35-44, and 45-54) who requested take out at any rate once a week or more. The more established individuals whose age is more than 55 are less takes an interest in do portion. It was additionally discovered that respondents having kids are more inclined to request do than the individuals who are without youngsters.

2. Feasting out conduct: Here it was discovered that the individuals who request carryout devoured far from home for supper 3.36 times in a common week, contrasted and 2.49 times for the individuals who did not request do.

3. Characteristics imperativeness evaluations: Here it was discovered that ‘nature of administration’, ‘quality for cost paid’, ‘comfort of area’ are appraised somewhat higher if there should be an occurrence of non-carryout portion than the carryout section.

Evaluation of Methodology:

“On their corporate site [sussex dialect Institue, 20-08-2009] expressed that in scholastic terms, discriminating examination means considering the cases of the scholars, governments, powers etc, what they are focused around, and how far they appear to apply or be important to a given circumstance.” Here I am going to assess on the diverse inquiries that I had advanced toward the start of my examination about The researcher’s technique to study the “do” section for restaurants’.

‘Is The specialist’s exploration substantial’? This inquiry I had made in the opening of my paper. My response to this inquiry would be totally yes. Most importantly we need to concentrate on the way of the examination he has done. The researcher is exceptionally specific to advise or make an alarm in his paper that he has focused on just the exploratory piece of the study. In his study he attempted to remained by his point by giving exact measurement and different examination figures. So we have comprehend that his prime center of the examination is to make a look at between the two fragment of client in restaurant i.e. carryout and non carryout clients and discover the profile of “carryout” clients.

At that point I have advanced the question that ‘how well did The analyst apply his picked system’? The researcher has picked quantitative examination system to figure out the profile of carryout portion of clients and made a correlation between two section of carryout and non carryout client. The methodology he had indicated in elucidating his point is exceptionally making a guarantee to he; had utilization study technique which took 5-10 minutes to finish the organized survey. Also it is all that much suitable system to make an examination on carryout fragment as the clients of this section don’t stay for quite a while in the restaurant so the respondent’s chance is a huge variable to this and The specialist had overseen it extremely well. He utilized individual data and members’ reaction for the exploration.

An alternate inquiry I have to reply ‘by what means may The specialist’s examination be made strides’? In his examination The analyst has picked the specimen of client from just 2 restaurant of same area and that was likewise for a solitary week in the spring. Subsequently the utilized example size is little which may not uncover the real comes about for the exploration. On the off chance that the overview was made in distinctive restaurant of diverse territories in distinctive time period, the examination result would come all the more precisely. In spite of the fact that it will uncovered some additional cost yet certainly help him to get more real figure for the exploration conclusion.

My next inquiry ‘is the analyst’s confirmation help his decision’? In his exploration the specialist has inferred that on account of the occupied timetable clients are depending more on carryout benefit now a days and the profile of those clients are beneath 55, wedded and having kid. Those families have great optional salary. What’s more due to the appeal of carryout nourishments in market the cool feasting fragment of restaurant is taking the chances of this pattern and concentrating a greater amount of their promoting exertions to achieve those carryout portions of clients. For his whole decision he has pleasantly given some proof. For all his contentions he has given some truth and figure at whatever point he analyzed the profile in the middle of carryout and non-carryout section of clients. Also toward the end he went to the choice on his examination focused around each one of those figure and confirmation he has discovered trough his study.

Research findings:

The specialist’s exploration work was amazingly centered on the quantitative methodology of examination the client profile of the “carryout” section of the restaurant. In his discoveries he had centered three different sorts of data which I have effectively examined in the survey and summery.

My finding on his examination is greatly positive. The way he utilized the review system is all that much noteworthy. Furthermore the organized examiner is likewise proper for this sort of review, however few focuses I might want to say which I think would increase the value of his examination is that he ought to additionally accumulate some auxiliary information from distinctive past exploration deal with snappy administration restaurant to get a reasonable thought of the different fragments of restaurant and their client conduct and observations towards “carryout” requests which would help him to get the profile of clients in those different sections of restaurant.

The most vital discovering I have found in the exploration is that the specimen size for the examination work. It is by all accounts little. The analyst has picked just 2 restaurants from the same geographic area and that may not be the delegate of the entire populace of the zone. The example could incorporate individuals from diverse geographic territories which may provide for some distinctive result on the grounds that client profile and their discernment can differ spot to place. Ultimately the study ought to compass throughout the year to kill any transient predisposition and record for behavioral distinction identified with season.

Conclusion:

I think the work of the researcher is extremely standard in understanding to today’s quick moving life. The becoming business sector of ‘fast food’ and the changing idea of “carryout” section of client are driving the easy eating restaurant to wind up speedy administration restaurant and changing their picture. The profile for carryout portion clients is evolving quickly. This contrasts from the past idea that carryout administration is a practice utilized mostly by brisk administration restaurant went for adolescent and youthful grown-ups. Presently a day’s more families are depending on “carryout” administration in light of their quick occupied life, especially the individuals who are beneath age of 55, wedded and having tyke.

The analyst has advanced some observational confirmation and reached his decision through his exploration. I admire his methodology, just few deficiency which I found in the examination are the short example size of one specific geographic area and the brief time of the overview which may prompt specimen predisposition for the exploration.

Bibliography:

1. Emerald Group Publishing Limited, 2007, www.emeraldinsight.com/Insight/viewPDF/.jsp, Accessed: 14th August 2009.

2. Groucutt.J. (2005) Foundations of Marketing, (1st edition), New York, Palgrave Macmillan.

3. Kotler.P. (2003) Marketing Management, (11th edition), Delhi, Printic-Hall

4. Sussex Language Institute, 2009, Critical Analysis Argument and Opinion, www.sussex.ac.uk/languages/, Accessed: 20th August 2009.

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Customer Loyalty to achieve Competitive Advantage, A comprehensive study on Tesco

Customer Loyalty to achieve Competitive Advantage, A comprehensive study on Tesco

Customer Loyalty to achieve Competitive Advantage: A comprehensive study on Tesco

Name

Institution

Course

Tutor

1.0 Introduction

Customer loyalty is the flip side of customer satisfaction. Customer satisfaction is more about the customers’ assessments of what the business or organization provides. It’s about whether a business feels they get what they want from the client. Customer loyalty comes as a result of customer satisfaction. Customer loyalty is about making customers love the company and its products or services. It also entails retaining the clients (Truss, 2001). The increased customer satisfaction assists enhancing the level of customer loyalty. Customer loyalty tends to be more profitable to the company as it costs less to service an existing customer than to win a new customer. Recommendation from the existing clients plays a big role in growing business. This places loyalty of the clients at the core of business growth and expansion.

1.2Types of customer loyalty

Monopoly loyalty

This is where clients have little or no choice and hence they become loyal to a given business. It is resentful. Studies however show that customer that have fewer options tend to be dissatisfied.

Cost of change loyalty

In majority of the cases, the cost difficulty or hassle in changing from one product or service to the other become so great that clients will only do it as a last option. As well, research indicate that customers tend to live with much lower costs than normal levels of satisfaction prior to changing to the new product (Thomson, 2000).

Incentivized loyalty

This has been the most over hyped marketing policy in the past years. The type of loyalty has effects on client who are not using their own money. Making flyers is an example.

Habitual loyalty

This might be the most rampant form of repeat business. Sometimes, when the goods become scarce, familiar routines that can be easily accomplished with less thought becomes part of life.

Committed loyalty

This is where the customer is committed to a given business or product or service. The customer tends to make all the purchases from the given business. This normally happens when the client is in one way or the other related to a given business.

1.3Factors affecting Customer Loyalty

There are a number of factors that the businesses must put into consideration in its endeavours to offer customer service. First, diversity is very important since every customer has his own needs and wishes that these needs be met by the organization (Stewart, 2006). The link between proper customer service and value addition to the organization has been underscored by attempting to delineate the value brought to the organization by proper communications strategy that is intermarried with relevant marketing skills to offer the desired services. The impact of the customer service on the company delivery is another factor that must be put into consideration (Orlando & Johnson, 2001)

Quality in loyalty programmes is an imperative aspect in the development of teams meant to conduct business organization’s activities (Rahim & Minors, 2003). Quality is usually aimed at eliminating the main causes of the problems, through continuous process improvement programs and therefore reduces the variations from the target to the aimed objectives in the firm (Graetz, 2002). It is aimed at improving the customer satisfaction through provision of better services and also removes the activities that have no value to the organization and customers. They also remove services that add no value to the clients.

1.4Conditions of loyalty

Conditions of loyalty vary from one organization or business to the other and also depend on the type of customer loyalty programme being undertaken. One of the conditions is membership. All participants have to first become members of the loyalty programme before participating. Points are associated with given prices and goods or services (Robinson & Kleiner, 2006). The prices are to remain constant for all members. The more the participation the greater the earnings are also applicable to all members or participants.

1.5Measuring loyalty

Customer loyalty is measured based on the customer increased or decreased purchaser of goods or services. It can also be measured form the reaction of customers towards a given good or services post the introduction of the loyalty programme (Langley, 2000). It can also be measured form the increased profits acquired after the introduction of the loyalty. However, the increased sales or profits cannot be a trusted measure since increased purchase can be contributed by various factors and thus the earned points per each client can be ultimate measure (Rumelt, 2004).

Customer loyalty, measured by the help of surveys is assessed through the use of questions and items, reflecting the aim of the loyalty. For every good or services, clients are asked to rate their level of satisfaction. The commonly used measure include

Customer satisfaction

Chances of choosing again the same product or service

Chances of recommending

Chances to continue buying similar product

Chances of buying different product

Chances of increased buying of the same product or services

Chances or likelihood of changing to another services provider

However, as earlier noted method of determining the level of customer satisfaction is company dependent and should follow the type and aim of the loyalty. There remains to standard measure of the loyalty.

1.6Managing loyalty

Managing loyalty is customer satisfaction and appropriateness of the loyalty programme. Loyal customers lead to customers coming for the same product again and build brand value. There are various benefits of the customer loyalty programmes (Lepak & Snell, 2009). Since the programmes vary from one business to the other depending on the aim of the programmes among other factors it is imperative to a suitable programme for a given group. In cases where the customer incomes and expectations vary by margins, two or more loyalty programmes can be designed (Sutton, 2005)

.

1.7Elements of a loyalty strategy

Among the elements of loyalty strategies are;

Segregate your customers

All businesses are not similar or operate in same environments and so the differences in clients. All clients are unique and have varied tastes and preferences on each and every good and service. The aim when segregating customers is to recognize a potential client forms the existing ones. The managers tend to look for the key indicators for example, where the client comes from, the income of the customer, taste and preferences, customer potentiality among other factors (Hubert, 2000).

Define the customer groups

Each group of customers behave differently and so deserve different treatments. The loyalty programmes should be aimed at addressing the requirements of customer groups. In cases where the taste and preferences are too varied to be bridged, different loyalty programmes are necessary (Gabriel & Griffiths, 2002)

Setting Goals for each segment or customer group

After the loyalty programme has been defined and set for a given customer group, low level strategy should be in place. The goal and targets required for the clients should be something achievable or measurable. This should be average billing, more referrals of clients, and increased number of visits among other factors. The loyalty should be specific to accomplish one or two objects.

1.8Loyalty and loyalty schemes

Customer loyalty is among the most important assets to be possessed by a company. With the multiple in the number of competitors and goods and services, many product and services, and the expansion of the internet trading, loyalty is rarely existent in the modern retail environments. A customer loyalty programme is a structured and non-short termed marketing effort which gives incentives to the repeat clients (Dulewicz & Higgs, 2009). The programmes are meant to encourage the clients to make more purchase of some products or services, increase their number of visits and make them refer others to buy the same good or service. The loyalty schemes differs form one company to the other depending on the aim of the loyalty and the expected outcomes (Farmer & Kingsley, 2001).

1.9Reward design

Often, rewards are designed dependent on the number of earned point. In majority of the cases, they range from silver, diamond and gold. The naming however varies from one business to the other like starter, middle, and advanced. This is dependent on the reward aim and the expected population.

1.10Competitive advantage and its factors

One retail expert says that because it’s planning to locate where Wal-Mart has a relatively small presence, “Tesco is beating them to the punch” in California. Tesco has a great advantage if it begins by establishing its stores in the areas with low competition. Since other businesses have already built a name in other parts, taking advantage of California is the only option of Tesco (McNamara, 2007). If it attains customer trust in these areas, its fame will spread to other areas giving it a business advantage. There are very important factors that must be considered when selecting a stole for any retail businesses. These include visibility, accessibility, traffic and population’s age and income. This is to ensure that the business is located at an area that is convenient for the majority of the target customers. The visibility of the store should be analyzed from a customers’ view point (Johnson, 2001). The more visible it is the less the advertisement needed. Tesco is taking advantage of the small retail shops by Wal-Mart and other businesses. If Tesco puts up large retail stores in these areas, it is likely to draw customers from Wal-Mart and prevent other customers from shopping in other shops. The visibility of the retail stores attracts customers as it acts as a means of advertisement without cost (Giannini, 2000). Building stores near Wal-Mart stores will help undercut on the number of customers purchasing goods from Wal-Mart. This will be possible if Tesco offers similar products as Wal-Mart and extra quality products and services.

1.11Customer satisfaction and Competitive advantage

There is a great paradigm shift in the contemporary business environment and this intermarried with the day-to-day economic conditions that various businesses are subjected to; it becomes very essential for every business to explore the aspect of customer satisfaction thoroughly as an important aspect and process of business survival and growth (Collins & Porras, 2004). By exploring customer satisfaction, the business organizations not only gain knowledge of the customer satisfaction drivers but establish strategies to retain them and have a competing edge over the competitors in the market (Combs, & Skill, 2003).

Knowledge of the customer satisfaction factors is a strong backbone upon which an organization can base its customer retention by knowing the satisfaction drivers of the customers it has attracted (LeBlanc, et al, 2000). Furthermore, though there is a great significance of using customer opinions and attitudes in various fields, not many studies have specifically focused on assessing the attitudes of customers with respect to their satisfaction with the products offered especially in developing economic systems (Buren, 1999). This section attempts to give an assessment of the studies that have been undertaken in an attempt to investigate the relationship of the two broad dimensions of customer satisfaction and that of customer retention. These two dimensions are powerfully related when attempts are made to understand or debunk on customer satisfaction (Crutchfiled, 2000). After all, the ideological significance of endeavouring to satisfy the customer is to retain the attracted customer and attract more hence creating a pool of loyal customer in the market. The end result: – strong customer base and hence formidable market dominance.

In definition, customer satisfaction can be understood as an attitudinal concept which reconciles the customer expectation and actual experience. When the difference between the two aspects (for instance expectation and actual experience) is wide, then there is little satisfaction and an organization stands high chances of losing the attracted customers (Chen, 2001). With the changing characteristics of the market platform on which business is conducted, the aspect of customer satisfaction becomes even more relevant. Online businesses that deal with clients in a virtual world would wish to know the satisfaction of their customers.

1.13Business Strategy and competitive advantage

Since Tesco is relying on high technology to make the purchase of products more convenient for its customers, it is likely to attract more customers. Its system will involve making orders by phone, a factor that will result in saving time and transportation cost. Despite the fact that other business are on the low prices of their products, it is likely to loss many customers to Tesco. Tesco will thrive faster in areas where Wal-Mart has not expanded its services (Boxall, 2006). By gaining more customers in the area where Wal-Mart is less known, Tesco can easily build on customer confidence. It will later expand to areas where Tesco is well established basing its support from it excellent customer services in other areas. This will negatively affect Wal-Mart as it will loss customers and Tesco will remain its threat even in the future (Oxman, 2002).

1.14Innovation and competitive advantage

To innovate is to create and commit to a strategic focus for creativity and innovation to succeed. It is vital that leaders give their organizations and teams the strategic focus for the desired creativity and innovation. A question is the innovation needed to re-create a market or products should be in mind? Is it acceptable to redefine the business model, without an insight into these boundaries ideas is likely to be too readily considered too difficult? This direction need not be detailed. It should merely create and bound a focus for innovation (Bartel, 2004).

There are generally various types of innovations that companies consider for pursuit. Some of the innovation types are more applicable in given cases as compared to others. This depends on the status and stage of company development and objectives. For a starting company, the type of innovation might differ from the ones employed by the growing company (Bontis, 2006). Product innovation, or service innovation which is the most common types of innovation, results from improvements that are made to existing products and services. Almost all companies that have been established should focus on service or product innovation or they might not gain market share to a more violent competitor (Chauvin & Hirschey, 2003).

1.15Core competencies and Competitive advantageAccessibility to Grocery storesProximity is another issue that the grocery shoppers will analyze before purchasing any product. A consumer may prefer to purchase other groceries in the nearest stores when Tesco is far away (Knight, 2000). Thus the managers of the Tesco should make the stores available in the small towns that were not served by the competitors as this will allow it to launch itself as the sole retailers in these areas thus the consumers will tend to purchase groceries from the stores more so if they are offering better prices than stores in the city which normally take two to four hours to get to by car (Adler & Kwon, 2002).

Grocery shoppers also want to shop in stores that are not too far away from where they live. A store could have a good name but if customers are not able to access then they will definitely not shop at that store. Grocery shoppers just like any other shoppers tend to have a favourite store. This is usually based on what the store offers which are mostly, reasonable prices, availability of items as well as good quality of the good and services (Brown et al. 2007). However if the customer at one point cannot access the store since they are away from their usual residence then that store will lose that sale.

Low pricesLow price is another strategy that the Tesco centres so as to persuade consumers in buying the groceries. With this hard economic period that is being experienced throughout the world, the last thing the consumers would want is to purchase goods in stores at a higher price whereas they can purchase the same products elsewhere at a lower price (Bontis & Fitz-enz, 2002). Thus the Tesco’s supercentres should try and lower the prices for their groceries to attract more consumers. Apart from reducing the prices, they can offer discounts to the grocery shoppers who have purchased a lot of goods. This will encourage the consumers to purchase more products as it is both pocket friendly and an addition to their groceries.

Quantity and VarietyQuantity and variety also matters a lot to the consumers. How many different types of groceries can a consumer get at a particular store and in what amount? Therefore these stores should offer a wide variety of produce under one roof to its consumers (Mayo, 2000). This will be aid in easing the consumers’ work of driving from one store to another in search of different groceries. These stores should also sell goods in more quantities than the other stores as these will give them an added advantage.

1.17Key Success Factors In Retailing

The programmes should have one main aim.

Offers should be provided for the repeat clients.

By all means, the programme should be kept simple.

1.18Summary

Based on the literature review, a number of issues are evident. First, given that customer satisfaction is not a quantitatively measurable variable and it ideally depends on the behaviour of consumers, more investigative efforts should be put in understanding consumer behaviour of consumers in a particular industry, geographic location and across gender (Liana & Buren,2006). However, it must be taken into account that consumer behaviour is not only a profound process in business interaction with the society but it also has many intervening variables which cannot be assumed. For instance, a business that wishes to gain customer loyalty without satisfaction is unlikely to succeed (Rastogi, 2000). On the same basis, an organization that wants to ensure a satisfied customer without examining the consumer behaviour of customer with respect to changes in quality of services offered and market approach strategies employed may also not be planning to succeed. Customer satisfaction and brand loyalty have a causal link, which means that utmost care must be borne in mind when attempts are made by business organizations to develop satisfaction strategies (Nerdrum & Erikson, 2001). An oversight may easily lead to the plan not working at all. Since the characteristics of the variables a long this causal link may not be similar across the industries and may also vary from business to business, every organization must examine directionality of its customer satisfaction thoroughly (Nahapiet & Ghoshal, 2008).

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Customer loyalty in the Hong Kong Aviation market, A case study of Cathy Pacific Airways

Customer loyalty in the Hong Kong Aviation market, A case study of Cathy Pacific Airways

Customer loyalty in the Hong Kong Aviation market: A case study of Cathy Pacific Airways

Name

Institution

Course

Tutor

Date

Topic Choice Matrix

The terms or concepts to be used

In definition, customer satisfaction can be understood as an attitudinal concept which reconciles the customer expectation and actual experience. Since the customer satisfaction and customer loyalty are directly related, they can be used interchangeably. Theory or models that could be applied

The only theories that can be used to underpin this dissertation will be customer satisfaction theory. It will be used in explaining, expanding and discussing the factors affecting customer satisfaction in the Airways.

Data collection

The data collection method will be questionnaire. A questionnaire is best used in studies seeking answers for how, when, problems and to what extent. Among the information that will be collected form customers include:

Customer satisfaction and opinions

Number of times a customer has used the Airways

Is the customer willing to use the Airways in future?

Access required

After identifying the customers using Airways’ past record and guest book, 100 participants (50 fathers and 50 mothers) will be selected using stratified random sampling. Participation will be voluntary. The questionnaires will be sent prior or in advance to the selected respondents together with a return address and envelope, after contacting them and obtaining their participation in the study.

Measurements

A number of factors are likely to impact on the amount and type of collected data. Some of the factors that have been identified to cause an impact on the internal validity of a study include the following. The variety of information collected from various people and sources might contradict. For instance, in one study, the researchers found out that the management had created different environments for the customers. Another notable threat to the research validity is the method of selection that might be (though the probability cannot be determined) biased. Since participation in the study by respondents is voluntary, selection bias is likely to affect the internal validity. Instrumentation is also identified by the scholars as another factor that affects internal validity. In this threat, any change or alterations made in the measurement of variables or changes in the techniques of observation may justify changes in the measurement that is ultimately obtained. Contribution of this research

The research will be essential in determining the factors that affect customer satisfaction in various Airways. The research outcomes will be useful to all Airways and other organizations.

Introduction

There is a great paradigm shift in the contemporary business environment and this intermarried with the day-to-day economic conditions that various businesses are subjected. It becomes very essential for every business to explore the aspect of customer satisfaction thoroughly as an important aspect and process of business survival and growth. By exploring customer satisfaction, the business organizations not only gain knowledge of the customer satisfaction drivers but establish strategies to retain them and have a competing edge over the competitors in the market.

This provides the rationale upon which this dissertation examines a customer loyalty in the Hong Kong Aviation market taking a case study of Cathy Pacific Airways. The dissertation takes a multi-faceted perspective of various professional fields, deeply analyzing the concept of customer satisfaction in those fields.

2.0 Aim of the research

The main aim of the research is to examine the customer loyalty in the Hong Kong Aviation market taking a case study of Cathy Pacific Airways.

2.0.1 Objectives of the research

To examine the level of customer satisfaction in Cathy Pacific Airways. Since customer satisfaction and loyalty are directly related, the more the satisfied customers the greater the loyalty.

To determine the customer satisfaction drivers in Cathy Pacific Airways. This will help in determining the factors that contributes to customer satisfaction in the Airway.

To examine the factors affecting customer satisfaction in Cathy Pacific Airways.

To determine the percentage of repeat customers in Cathy Pacific Airways. This will help in examining the extent to which customers are satisfied with the Airway’s services.

To determine how prices in the airways affect customer retention , satisfaction and loyalty in the Airways.

3. Rationale

Knowledge of the customer satisfaction factors is a strong backbone upon which an organization can base its customer retention. This is by knowing the satisfaction drivers of the customers it has attracted. Furthermore, though there is a great significance of using customer opinions and attitudes in various fields. Not many studies have specifically focused on assessing the attitudes of customers with respect to their satisfaction with the services offered and so the importance of this research. This research in its secondary research attempts to give an assessment of the studies that have been undertaken in an attempt to investigate the relationship of the two broad dimensions of customer satisfaction and that of customer retention. These two dimensions are powerfully related when attempts are made to understand or debunk on customer satisfaction. After all, the ideological significance of endeavouring to satisfy the customer is to retain the attracted customer and attract more hence creating a pool of loyal customer in the market. The end result is strong customer base and hence formidable market dominance and so the importance of this research.

4. Theoretical framework

Customer satisfaction and retention takes a central role in present marketing theory and praxis. As such, it contains significant link between customers’ behaviours and the activities of the Airways or any company. Customer satisfaction, correspondingly, has been the object of research in more than 20,000 studies across the globe. As a result, various theories have been developed to explain this abstract construct. To date, however, consensus on that matter has not been reached.

This research examines various conceptions of the formation of customer satisfaction. For this reason, customer satisfaction paradigm is sent as the basis on which other theories are developed. Subsequently, a brief presentation and evaluation of existing methods for measuring customer satisfaction sets the focus for this research.

5.0 Literature review

The literature examines original investigations, other literature reviews, peer reviewed academic literature, research databases, reviews, journals in various academic fields and original manuscripts that relate to customer satisfaction. This is intended to bring a better understanding of the factors behind customer satisfaction in various Airways targeting Cathy Pacific Airways. One of the most recent studies, which directly involved investigation of customer satisfaction of consumer is the study carried out by SSP (2006). Since a search in the research databases produces a big number of results, the reviewed literature sources are picked on a random- sample strategy. Databases searched include the BMC research database, JAMA database among others.

In definition, customer satisfaction can be understood as an attitudinal concept which reconciles the customer expectation and actual experience (Mont & Plepys 2003). When the difference between the two aspects (for instance expectation and actual experience) is wide, then there is little satisfaction and an organization stands high chances of losing the attracted customers.

Cooper (2008) observes that because of this knowledge about customer satisfaction with the services of doctors and nurses in the field of health care services, it should therefore help in strengthening the complex intermarriage of various variables across the board with respect to satisfaction of the consumers in the healthcare industry. He further observes that consumer satisfaction will eventually lead to job satisfaction in the service providers. Put in the business setting of any other industry, what this implies is that when the customer is satisfied and the organization’s employees are made aware of the fact, they too are motivated and hence become satisfied with their job. Satisfaction of one is dependent on satisfaction of the other in one or more ways. It in part therefore stresses the significance of involving the employees in the employee satisfaction plans.

With the changing characteristics of the market platform on which business is conducted, the aspect of customer satisfaction becomes even more relevant. Online businesses that deal with clients in a virtual world would wish to know the satisfaction of their customers. This is the basis of the research article by Nusair and Kandampully (2008) which sought to establish the factors that influence customer satisfaction in online business platforms. Nusair and Kandampully (2008) conducted a survey of travel websites with respect customer satisfaction. The objective of their research study was to establish the relationship of various customer satisfaction dimensions and then attempt to investigate if the customers of the analyzed websites are actually satisfied. The researchers provide a good rationale upon which the results of their study may not attain external validity. One of the research limitation identified by the researchers and which limits external validity is that the extent to which their results could be generalized to other business websites or organizational settings is greatly impounded by the fact that they conducted the study on a sample of six travel websites. Another limitation was that the attributes of customer satisfaction could be covered only to a limited extent. This also contributes to reduced generalizability of the results.

As a component of the contemporary business model, corporations and business organizations customarily examined the consequences of changes in customer satisfaction on sales volume and customer retention (Tang & Bougoure 2007). Tang & Bougoure (2007) posit that there is an integral link connecting customer satisfaction and service quality, a link which cannot be doubted. The two researchers make an observation, which concurs with what Bates and associates (1995) had observed in their study. The two research associates observe that for a better business standing in the market and better performance, the business should aim at providing an excess of the satisfaction customers expect out of the services (Tang & Bougoure 2007). This gives an organization’s marketing department and customer service departments a fundamental challenge.

Another comprehensive research study on customer satisfaction is the research done by Conklin (2005) investigating the relationship between customer satisfaction and loyalty. The researcher gives a comprehensive approach with a systematic methodology, which aims at exploring the concept of customer retention with respect to various aspects of customer satisfaction like quality of services (that is, reliability of the services, responsiveness of the business to customer needs and assurance) and the marketing strategy adapted by the organization (promotional tactics and the channels used among other aspects). The setting for the study is the Bangkok Airport. The researcher used a 5- point rating questionnaire design to collect data related to the above mentioned aspects and subjected the data to statistical analysis.

On another perspective, the researcher also subjected customer satisfaction to analysis as an independent variable. Here, the dependent variable was the customer loyalty. Since the researcher also wanted to establish if there was any relationship between satisfaction of customers and their loyalty, he subjected the data collected to this analysis. The findings of the analysis pointed to a strong positive relationship between the two variables. The researcher therefore managed to derive a string of correlations leading to customer satisfaction. The implication of this study is that customer satisfaction as a fundamental aspect of business and welfare economics of consumer behaviour should be understood as a process (Mont & Plepys 2003).

Customer satisfaction and brand loyalty have a causal link, which means that utmost care must be borne in mind when attempts are made by business organizations to develop satisfaction strategies. An oversight may easily lead to the plan not working at all. Since the characteristics of the variables a long this causal link may not be similar across the industries and may also vary from business to business, every organization must examine directionality of its customer satisfaction thoroughly (SSP 2006).

Based on the literature review, a number of issues are evident. First, given that customer satisfaction is not a quantitatively measurable variable and it ideally depends on the behaviour of consumers, more investigative efforts should be put in understanding consumer behaviour of consumers in a particular industry, geographic location and across gender. However, it must be taken into account that consumer behaviour is not only a profound process in business interaction with the society but it also has many intervening variables which cannot be assumed. For instance, a business that wishes to gain customer loyalty without satisfaction is unlikely to succeed. On the same basis, an organization that wants to ensure a satisfied customer without examining the consumer behaviour of customer with respect to changes in quality of services offered and market approach strategies employed may also not be planning to succeed.

6. Methodology

Primary research design

The quantitative data collection method will be employed in this research. Questionnaires will be sent randomly to the Airways customers. A questionnaire is best used in studies seeking answers for how, when, problems and to what extent. A questionnaire is the appropriate quantitative method for the study because it supports the gathering of data on the measurable effects and it enables the researcher to collect data from 100 respondents.

The questionnaire takes approximately 40 minutes to finish. The questionnaires will be sent prior or in advance to the selected respondents together with a return address and envelope, after contacting them and obtaining their participation in the study. Duration of one week will be allowed for the questionnaire completion (Clarke, 2005).

Secondary research

The literature examines original investigations, other literature reviews, peer reviewed academic literature, research databases, reviews, journals in various academic fields and original manuscripts that relate to customer satisfaction. This is intended to bring a better understanding. One of the most recent studies, which directly involved investigation of customer satisfaction of consumer is the study carried out by SSP (2006). The qualitative data collection method will be secondary research materials. The questions focus on accounts of the level of satisfaction, social relations of customers, as well as on areas of need and recommendations in addressing these areas (Munhall, 2007).

Sampling

The participants of the study are the regular customers or other users who happened to use the Airway. The participants (to fill the questionnaires) will be selected randomly. After identifying the customers using Airways’ past record and guest book, 100 participants (50 fathers and 50 mothers) will be selected using stratified random sampling. This method of selection considers criteria in selecting the respondents. The criteria comprise the classification of the respondents and the number of respondents needed to represent each classification (Kabala, 2005). The specific respondents to fill the number required for each classification are selected randomly. Using this sampling method ensures that customers from different income classes and are represented proportionally.

Data Analysis

Quantitative data will be analyzed using descriptive statistics to summarize the responses and determine means and standard deviation. The analysis is aimed to determine the significance of measurable level of satisfaction or dissatisfaction of customers (Kabala, 2005). Qualitative data will be analyzed by using thematic classification and drawing implications relative to the quantitative data and the research questions. Results will be presented in tables and graphs together with textual explanations. From the analysis, the level of customers’ satisfaction and dissatisfaction will be determined. Since customer satisfaction and loyalty are directly related, the extent of customer satisfaction will show how customers are loyal.

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Posted in Uncategorized

Customer Experience

Customer Experience

Customer Experience

Introduction

When customer experience becomes important in an industry, the management team roles tend to be inclined towards establishment of practices that build the best results and performance track. The banking sector is in a heavily service intensive industry that relies on the consumer behavior, much of which dictates the outcomes of customer experience. It gets more important for a banking institution to equip itself with the information and recourses that enable rapid response and reaction against unfavorable customer experience in such an industry. Opening a new banking outlet, particularly in an overseas location, it is imperative for the banking institution adequately prepares for the groundbreaking exercise and positioning that will facilitate sustainability.

Some of the intricate issues that determine the success of a newly opened branch in the banking sector are generally related to the first impression created regarding customer experience. Customer experience can be memorable for either good or bad reasons. How suitable and pleasant an experience gets to the newcomers is usually dependent on the trend set from the beginning. It follows that the remainder of the experience in a new market is defined in the initial stages of market positioning and establishment. Aware of these facts, Cooperative Bank and Smile UK Limited will require the detail of the following study regarding the new market in Tanzania for the creation of an appropriate customer.

According to Avaya (2008, P1), both local and international banking institutions find a huge challenge to balance their strategy mix and technological capacity to facilitate sustainable customer relationships. According to the revelations of the group, today’s customer experience has changed a lot due to a number of factors. One of the most important factors that have necessitated a different approach to handling of customer experience is the easy availability of information that has impacted on customer expectations. In view of the new market in Tanzania, this study reveals some of the most important information that the management of Cooperative Bank and Smile will need to handle the changed customer experience issues in Tanzania.

UK Customer Experience

Comparing the banking sector in the UK to that in Tanzania, there are fundamental differences in the economic settings of the two countries. While the UK is an industrialized economy, Tanzania is a developing country, where profound differences in operations will be experienced. Performance in the developed economy presents quite enough experience of operating inside a competitive market, since investment is balanced into almost every sector. Competition is an experienced area therefore that the Cooperative Bank and Smile will depend on while making entry into the Tanzanian market. One of the major strategies that characterize operations of banks in such a crowded market is the creation of a sustainable customer relations program. It is therefore expected that the Cooperative Bank and Smile entry will have an upper hand in economic orientation in Tanzania due to the exposure already held. The fact that the Tanzanian economy is significantly compatible with the Commonwealth economic foundation makes the bank ideal for entry into a new system.

Prospects of Customer Experience in Tanzania

Entry into the Tanzanian banking market will perhaps require a mention of the factors likely to affect the customer experience in the East African region to a great extent on the African continent. One positive indicator of unlimited opportunities that the new market has in Tanzania is the relatively low penetration of banking sector into the population (ReConnect Africa, 2010, p1). Population figures indicated in Appendix 1 can be used to predict performance of the banking sector under these factors (CIA, 2011, p1). Economic prospects of the country and the region are pointers that a good entry and customer experience strategy will face little resistance from economic environment. The cultural background in Tanzania is founded on a friendly and supportive environment arising from the faded Ujamaa socialism that would facilitate growth and thriving for customer experience in the banking sector (TANU, 1974, p120).

Today’s Market Landscape

According to Microsoft (n.d, p4), today’s banks are responsive of the customer needs than it used to be long ago. This is mainly due to changes in the socioeconomic space that human beings continue to experience. Customer experience in today’s banking market is therefore a representation of a scenario undergoing several transformations. Customer emotions are stimulated to trigger the desired outcomes, since earlier advertising expenditure seem ineffective. Information age is here with us and the transformations experienced through technology and innovation is likely to introduce even more changes into the future of the market (Ivens & Shaw, 2002, p5). According to Barnes (p17), getting customers to satisfaction is a matter of how well customer experience matches their needs. Generally, conduction of surveys will be a tool enough to indicate the amount of satisfaction that customers get from services of a certain trade. The banking industry will therefore continue to experience changes in the manner in which customers are handled.

Appropriate Customer Experience Practices

Different industries devise ways of ensuring that their customers act with loyalty and remain as part of the important and vocal stakeholders. Ensuring that the customer feels appreciated and important in the business defines the amount of transactions made, hence revenue. The customer experience practice embarked by individual businesses must therefore be or appear to be responsive of the needs of the customers. Almost every business has a different set of unique issues define their existence, but certain customer issues cut across all industry models. Dealing with the banking sector, several issues can be identified for the creation of the best customer experience that can translate into positive economic results. Knowledge of dealing with the customer is not only a management tool but an important cultural asset for the entire organization’s practice.

Firstly, organizational commitment in the banking sector is important in establishment of the appropriate customer experience. Decision making and implementation of decided work plan at every level of the organization is determined by how responsive the workforce is. In order for the Cooperative Bank and Smile to achieve important progress in the initial entrance stages in Tanzania, employee commitment will be invaluable. Customers may not offer the best experience due to the various personality differences, but organizational commitment is usually designed to overcome any of such challenges. According to Shea (2008, p1), it is always important to equip the employees with the relevant information on how to deal with customers through research to unravel what customers like. The author calls such concept the Voice of the Customer (VOC), since the revelations thereon can be used in such an accuracy that the actual customer’s voice would be. Decisions and policies to handle customers will be formulated with regard to the findings of such a study conducted to identify with the needs of a customer. It would be important for an overseas institution such as Cooperative Bank and Smile based in London to carry out such a study to equip the employees with the information they need for the same. Commitment arises when the management appreciates certain issues and incorporates them into the organizational policy framework.

Shea (1), reckons that to operate with the VOC concept, a well outlined structure and arrangement to direct the appropriate research findings into the policy framework. Research must be conducted in such a manner that useful information is obtained and possible technicalities accordingly translated into the proper scope and meaning. Clear and definite policy is then drawn out of the research findings and commitment sought from the employee quarters while enforcement resources are expected from the management.

Secondly, business initiatives must be formulated in tandem with the presenting customer precedence and opportunities. In order for the Cooperative Bank and Smile to successfully facilitate a balanced investment entry into the Tanzanian market, targets will have to be set in advance, in line with the main investment objectives that the parent institution envisions. Customer experience programs taken into consideration will then be formulated and compared against the provisions of the longer investment plans of the bank. The importance of this exercise is to ensure that the long term objectives of the bank are not eroded by overambitious suggestion to handle customers. Performance metrics and figures direct the amount of consideration that the management ought to give to the new branch with regard to customer experience. However, initial stages of market entry may not necessarily be guided by the performance in Tanzania, since it is the first instance of establishment. Priorities must be set out in ensuring that the most strategic issues of establishment take precedence in order for a smooth establishment to take place.

Thirdly, brand positioning must target customer loyalty into the future of the banks existence in the new environment (Ahmad & Clifton, 2009, p22). Customer experience is determined by the first impression that the new entrant makes, depending on the features of the rest of the competitors. Within a competitive market, customers will be attracted to the players who handle their interests with the best welcoming gestures. In the event that the new entrant offers better or acceptable brand image, the customers are likely to embrace the services of the entrant. Contrary to this, the customer experience is severely damaged since the standards set by the market are higher than what the entrant can offer. Brand positioning will therefore be a factor of the perception that customers make of the entrant (96). This implies that the first impression created by Cooperative Bank and Smile will be expected to comply to the set market standards in Tanzania in order for a positive and favorable customer experience to be facilitated. Depending on the initial research performed on the market conditions, the management is equipped with the relevant information regarding the nature of brand positioning likely to attract enough customers to kick-start operations. Constant reviews of programs improving brand positioning are necessary to ensure that changes in market expectations do not leave the entrant in a less advantageous condition.

Copley (2004, p83) describes positioning as offering goods and services with a perspective that considers the customer as well as the rest of the market competition. The author mentions of managing issues as they arise in the market in order to have an advantage over the determining factors represented by competitors and customers. It is therefore imperative that customer experience is based on a perspective that is accorded the seriousness it deserves, such as competition would. The author further mentions of strategic positioning, which entails clear policy and strategy taken from an informed perspective that takes care of the brand name. Regarding the banking sector, it is obvious that the correct positioning will take customers’ needs and competition into serious consideration.

Fourthly, customer experience will be a representation of how well the institution handles human beings, procedures, available products as well as delivery of services (Shea, 2008, p1). For the bank to facilitate a winning position for its customer experience, these four factors must be in consideration. People determine the success of any industry, both internally and externally. Human resource management directly impacts on customer experience as public relations and customer care services do. All the stakeholders must be satisfied with the operations of the bank in order for the customers to feel the same (Gitman & McDaniel, 2007, p520). Processes within the bank will also need to be clearly outlined and adherence measures taken into serious consideration before customers can accept to be served by the bank. Customers feel protected when procedures are laid out and their compliance guaranteed. The banking institution must also deliver financial products that represent the needs of the market in several ways. Delivery of the services must be done in such a manner that the customers feel that hey can associate and identify with such an institution.

Fifthly, competitive advantage in customer experience is enhanced by industry experiences when the environment becomes competitive (Schmitt, 2003, p11). It is estimated that some level of competition will be met in the Tanzanian market where customer experience will be directly proportional to level of competitiveness of the Cooperative Bank and Smile. Banking market experiences enjoyed by the bank in the UK will be importance in facilitating the identification of the competitive advantage the bank will enjoy in Tanzania. Customer experience elsewhere will be translated in some aspects and instances to make general customer consumption behavior in the two markets. Setting of goals prior to the actual entrance will determine the overall experience that the bank will have in Tanzania. Like observed earlier on, customer experience is usually performed from the informed perspective offered by the goals set prior to operations by the management.

Sixthly, customer experience heavily depends on the communication practices established from the beginning of operations. Cultural practices within an organization include communication practices where the banking industry is sensitive to the actual manner of communication established. Customer communication strategies are definitive of the customer experience that a bank has. For Cooperative Bank and Smile to achieve the appropriate customer experience as one of the strengths of its operations, it will be imperative that the initial customer contact is handled with the sensitivity it deserves. Customer expectations and actual feelings of the service must be matched as much as possible in order for a favorable experience to be achieved. This implies that the bank will be obliged to embark on frequent customer expectations surveys to establish exactly what the customers expect in the service delivered and their delivery format. It is from such informed grounds that the bank will formulate products and serves delivery plans to keep up with the demands of the customers. One of the responses expected from such an exercise is the formulation of a monitoring system that discerns the level of compliance with the laid out procedures and communication regulation requirements. Communication at all levels is supposed to facilitate delivery services such that customer standards are complied with (Fitch, 2007, p9).

Theoretical Approaches

There are several theoretical explanations why customer experience has to be approached in a certain manner and not anyhow. Several scholars have dedicated their research resources and time to unravel consumer consumption behavior, in order to offer the appropriate guidance to customer policy makers. Almost all cases of studies have demonstrated the need for any business entity to handle customers in a sensitive manner, since consumer behavior is guided by economic postulates of satisfaction of human needs and wants. Having understood the need to incorporate human needs models in unraveling consumer behavior for any product, decision and policy makers in a business organization are equipped with important resource. The following section details on some theoretical foundations on which customer experience seems to borrow from.

Hierarchy of Needs

According to Maslow, a certain hierarchy of needs dictates the manner in which human beings prioritize needs based on the limited nature of resources available to them (Shaw, 2007, p52). The author reckons that customers must not feel as if they are subjects of neglect when they need to achieve them. In a reducing order, biological, safety, identity, esteem and self actualization needs are sought. Customer experience is affected by the status of the immediate pressing need, with the most important factors being biological needs. Banking customer experience will rely on this order of needs priority (Chapman, 2004, p1).

Laddering Theory

Where information regarding consumer preferences is required to be extracted from a consumer, several techniques can be used to administer the extraction. One of such techniques employs the consultative but detailed interviewing of a customer to develop the needs profile. Such an interview is described as laddering, whereupon important information needed to unravel consumer preferences and behavior may be achieved. There are three elements of the technique as featured in the results. One of the elements is attributes, regarding the features of the product that the consumer perceives from the product. The other elements are consequences as well as values that a consumer makes of a choice to use a certain commodity over the other. Laddering Theory, also known as Means-End Theory implies that interrogation can be used to provoke a customer’s perceptions of a commodity or service to confirm that the three features determine consumption theory. A-C-V profiling implies that customers get motivated to consume goods on a certain order of influential features. The order of the features determine the level of compliance to a certain consumption behavior, hence the need for marketers to observe laddering before they push products down the throats of unwilling consumers (Olson & Reynolds, 2001, p25).

Customer Service Continuum Theory

Learning of the needs of the customer dictates how the product mix and service delivery should be presented to the customer. This is because responding to the customer demands will not only influence the industry’s products to be offered but also dictates the manner in which the package is to be delivered. Advertising therefore becomes part of the equation while how to deliver the commodity becomes another important aspect of factors affecting consumer behavior. Some of the traditional trading practices have experienced fundamental changes which have affected the way of handling customers. On one hand, the customer has gained cynicism and can critique advertisements. As a result, something else must come in as a force to convince their choice of commodity for consumption. On the other hand, a more information oriented society increasingly demand explanations necessitating customer service departments. In addition, consumers are aware of their right to quality goods and service and they place demands for higher quality. Competition tends to thrive since customers will always look for better commodities and services prompted by quest for quality. Alternatively, a more individualistic population of consumers demand a more personalized attention and attendance of customers. Finally, customers demand for proof changes customer experience with a more alert market. The above factors implies that customer experience tends to attract reforms in the manner in which the customer is attended, hence an apparent customer service range develops (Murley, 1997, p234).

Conclusion

Slight market differences are expected to exist between the Tanzanian banking market and the UK market, with regard to customer experience. However, fundamental differences in economic settings in the two countries are likely to have a direct bearing on customer experience, considering that the industrialization status of the two is distantly apart.

There are several customer experience practices that managers are supposed to familiarize with, in order to develop the best image of the market. While most of the practices cut across various investment models, there are industry specific practices that market research carried out ought before entry ought to reveal.

Using the above mentioned theoretical approaches, it can be demonstrated that the consumers follow a certain marked behavior. It therefore follow that entry into a new banking market must consider the general rules of customer uptake of services offered and the best approach to handle them.

Bibliography

Ahmad, S. & Clifton, R. (2009) Brands and branding. London, UK: Profile Books Ltd.,

Allen, R., Greg, R. & Hill, N. (2007) Customer satisfaction: the customer experience through the customers’ eyes. London, UK: The Leadership Factor

Anderson, K. & Kerr, C. (2002) Customer relationship management. New York, NY: McGraw-Hill Professional

Avaya (2008) Transforming the branch bank customer experience. [online] Available from: < HYPERLINK “http://www.avaya.com/uk/resource/assets/brochures/intell%20branch%20banking%20final%20ind3871.pdf” http://www.avaya.com/uk/resource/assets/brochures/intell%20branch%20banking%20final%20ind3871.pdf> [accessed 9 March 2011]

Ballantyne, D., Christopher, M. & Payne A. (2002) Relationship marketing: creating shareholder value. Burlington, MA: Butterworth-Heinemann

Barnes, J. G. (2006) Build our customer strategy: a guide to creating profitable customer experience. Hoboken, NJ: John-Wiley & Sons.

Chapman, A. (2004) “Maslow’s Hierarchy of Needs,” [online] Available from: HYPERLINK “http://www.businessballs.com/maslow.htm” http://www.businessballs.com/maslow.htm (accessed 10 March 2011)

Christopher, M., Clark, M., Payne, A. & Peck, H. (2003) Relations marketing fro competitive advantage: winning and keeping customers. Burlington, MA: Butterworth-Heinemann

CIA World Factbook (2011) [online] available from: HYPERLINK “https://www.cia.gov/library/publications/the-world-factbook/geos/tz.html” https://www.cia.gov/library/publications/the-world-factbook/geos/tz.html (accessed 10 March 2011)

Copley, P. (2004) Marketing communications management: concepts and theories, cases and practices. Burlington, MA: Elsevier Butterworth-Heinemann Publishers

Dibeehi, Q., Shaw, C. & Walden, S. (2010) Customer experience: future trends and insights. New York, NY: Palgrave Macmillan

Dyche, J. (2002) The CRM handbook: a business guide to customer relationship management. Montreal, Canada: Addison-Wesley Publishers

Fitch, T. P. (2007) Career opportunities in banking, finance and insurance. New York, NY: Infobase Publishing

Foss, B. & Stone, M. (2001) Successful customer relationship marketing: new thinking, new strategies, new tools for getting closer to your customers. London, UK: Kogan Page Ldt.

Gitman, L. J. & McDaniel, C. (2007) The future of business: the essentials. Mason, OH: Cengage Learning

Goodman, J. A. (2009) Strategic customer service: managing the customer experience to increase positive word of mouth, build loyalty and maximize profits. New York, NY: AMACOM Div American Management Association.

Greenberg, P. (2004) CRM at the speed of light: essential customer strategies for the 21st century. New York, NY: McGraw-Hill Professional

Hansen, U. & Henning-Tharau, T. (2000) Relationship marketing: gaining competitive advantage through customer satisfaction and customer retention. Hannover, Germany: Springer-Velag Berlin Heidleberg

Ivens, J & Shaw, C. (2002) Building great customer experiences. New York, NY: Palgrave Macmillan

Microsoft, (n.d) Changing the banking customer experience: increasing [online] Available from: < HYPERLINK “http://bankjobsearch.com/MAVERICKSINBANKING/Libraries/Microsoft_Whitepapers/Changing_the_Banking_Customer_Experience.sflb.ashx” http://bankjobsearch.com/MAVERICKSINBANKING/Libraries/Microsoft_Whitepapers/Changing_the_Banking_Customer_Experience.sflb.ashx> [accessed 9 March 2011]

Murley, P. (1997) Gower handbook of customer service. Hampshire, UK: Gower Publishing, Ltd.,

Olson, J. C. & Reynolds, T. J. (2001) Understanding consumer decision making: the means-end approach and advertising strategy. Mahwah, NJ: Lawrence Erlbaum Associates, Inc., Publishers

Peppers, D. & Rogers, M. (2004) Managing customer relationships: a strategic framework. Hoboken, NJ: John-Wiley and Sons

ReConnect Africa (2010) Is Tanzania’s banking sector ready for a nudge from Kenya? [online] Available from: <http://www.reconnectafrica.com/business/is-tanzanias-banking-sector-ready-for-a-nudge-from-kenya-2.html> [accessed 9 March 2011]

Reynolds, J. (2002) A practical guide to CRM: building more profitable customer relationships. New York, NY: Focal Press

Schmitt, B. (2003) Customer experience management: a revolutionary approach to connecting with your customers. Hoboken, NJ: John Wiley and Sons

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Appendix 1: Tanzania’s Population Estimates as at 2010

Total population 41,892, 895

Population growth rate 2.032%

Birth rate 33.44 births/ 1000

Death rate 12.31 deaths/1000

Age structure: 0-14 years

0-14years 43%

15-64 years 54.1%

65 years and above 2.9%

Adopted from: CIA Factbook (2011) [online] available from: HYPERLINK “https://www.cia.gov/library/publications/the-world-factbook/geos/tz.html” https://www.cia.gov/library/publications/the-world-factbook/geos/tz.html (accessed 10 March 2011)

Posted in Uncategorized

Customer Complaints Handling Procedure

Customer Complaints Handling Procedure

Customer Complaints Handling Procedure

Executive summary

A wide range of laws and regulations focus on the recommended approach of marketing products and services and stipulate compliance requirements in the market environment. Organizations are required to abide by these laws and regulations in their transactions. The cardinal principle enshrined in these rules and regulations is that all forms of marketing must of necessity be accurate, truthful and current. The primary areas of compliance therefore, include: the nature of information organizations may gather from customers and what they may carry out with such information; information that organizations can convey concerning their products and services and how they may convey such information; information that can be communicated by organizations concerning their competitors and the products or services offered by such competitors. Other pertinent areas of concern in compliance include: endorsement, comparative claims, contests and sweepstakes, collection and use of marketing information, telemarketing, marketing to children, digital marketing, special offers, and negative-option marketing. This paper aims to examine compliance requirements in regard to handling of customer complaints. It will essentially examine how organizations handle complaints from dissatisfied customers and the procedures employed by such organizations to forestall consumer apathy occasioned by dissatisfaction in products or services offered by an organization.

Introduction and Overview

The past years have been epitomized by unprecedented growth of competition in companies. Furthermore, the stagnation or shrinking of markets in the contemporary business environment makes it difficult for companies to grow or continue making profits in the long run (Bitner, Booms, and Tetreault, 2009). The rapid enhancements and perpetual improvements of production technology as well as the products themselves have heralded a market full of substituted products. These prevailing market dynamics have necessitated sale of efficient service even where goods were previously the primary concern of an organization(Rambaud, 2006) . This significant shift in general market conditions has subsequently lead to an emphasis on customer orientation. Companies have awakened to the reality that satisfied customers are a contingent part of successful organizations. Moreover, focus of organizations has also moved from acquisition of new customers to retention of existing ones. This change of tact has been spurred by empirical findings which indicate that acquisition of new customers and recovery of lost customers is considerably more expensive than retaining existing ones (Checkland, 2000).

From the perspective of the customer, one critical benefit of compliance is that goal attainment and satisfaction with processes of service delivery is dependent on compliance with roles that impact on behaviour outside an organization (Albright, and Roth, 2009). For example, although certain products may include several instructions on usage, the consumer is obligated to comply with the instructions in order to realize the aim of the product (Foster, Gupta, and Sjoblom, 2010). Satisfaction has been shown to stem from the variation between what the customer anticipates and what they actually receive (Checkland, 2000).

According to Carter and Kulbok (2002) consumer compliance is an integral element of service production. They contend that without the direct involvement of customer, the organization productivity is bound to be affected, as well as its positioning in relation to its competitors. Consequently, the quality of services dispersed to customers would be impacted leading to customer dissatisfaction. For example, the healthcare services, whose productivity depends on collective effort and compliance by both the customer (patients) the services employee. The research question for this study is therefore: “Is consumer compliance with product or service instructions linked to satisfaction with goals of such products or services?”

Literature Review

Literature in Market and management is full of market oriented philosophies which attribute performance and profitability to customer loyalty and satisfaction (Bosch, and Enriquez, 2005). In practice, however, customer orientation hardly ever attains a recognizable level in the operations of businesses. The efficiency of processes in organizations has traditionally been fostered by process-based management teachings such as total quality management, activity based management, lean management, business process re-engineering, continuous improvement and supply chain management (Foster,Gupta, and Sjoblom, 2010). Even though many scholars have touted the important role played by consumers in the advancement of business processes (Cardy, and Dobbins, 2006), critics have in the past argued that such praises fail to pay enough attention to the consumer (Rambaud, 2006). In essence, contemporary strategies aimed at addressing the plight of consumers in marketing and management literature do not lay enough emphasis on pertinent issues affecting the customer. Therefore, the gist of this paper is to advance an argument that is customer focused and specifically considers effectiveness of procedures involved in handling complaints presented by customers.

Studies have examined the role of customers in the advancement of an organization through service creation. For example, Simpson et al (2000) posit that service organizations have a tendency of treating customers as quasi employees. This notwithstanding, compliance requirements are largely affected by a failure of most organizations to invest in customer participation outside of the service company (Checkland, 2000).

Other studies have also established that customers complain when they experience one of two conditions: they sense that they have been treated unfairly or their expectations are underperformed to a degree that falls outside their zone of tolerance (Albright, and Roth, 2009). According to Cardy and Dobbins, (2006), customers also have a tolerance threshold for product and service performance. The extent of tolerable performance will be determined by importance attached to a product or service or the specific attribute of the product, which occasions the complaint. Important products and services will tend to have a stricter tolerance compared to products and services deemed less important (Foster, Gupta, and Sjoblom, 2010).

Customer complaints as the basis of Process improvement

Faults committed when providing customers with products and services have been prioritized based on the cost incurred by a company or an organization’s consumers (Rambaud, 2006). For instance, the Japanese quality philosophy categorizes between systematic and random faults. Systematic errors have a tendency to cause a customer to experience continuous dissatisfaction (Hallen, and Latino, 2003). Such errors stem from myriad factors, which make their identification and analysis a challenging endeavor. On the other hand, random errors stem from relatively simple causes and are therefore, quite easy to identify and correct (Davidow, 2003). The removal of systematic errors has been touted to engender the greatest benefit to an organization, given that their removal has the greatest potential of enhancing quality in an organization’s processes (Albright, and Roth, 2009). A substantial quantity of versatile data is crucial to the identification of systematic faults within an organization (Stauss, and Schoeler, 2004). An important source of generating systematic data entails gathering information that constitutes customer complaints. This source is both valuable and inexpensive.

The adoption of a staff friendly approach of complaint process has an added benefit to the productivity of an organization, given that it enhances employee retention (Zairi, 2000). The basic premise behind the employee-friendly customer complaint process is that recognition of human error makes the management of complaint relatively easier to employees and contributes to a happier workforce (Checkland, 2000).

Other important factors that should constitute essential elements of the complaint process are key attributes which are designed to improve the process by saving the costs involved and consequently impact on the profitability. The nexus between cost and customer satisfaction bolsters the improvement process and makes both parties to the process agents of championing such progress and change (Zairi, 2000). This convergence implicitly alludes to the fact that process improvements significantly affect customer satisfaction and retention just as they affect the attitude and retention of employees.

Therefore, process improvements should be fashioned to address factors that positively affect both customer and employee attitudes. The preferred approach in attaining this goal is by employing customer complaint information with a view to establishing matters that lead to customer dissatisfaction and using the feedback provided as the basis for initiating process improvement strategies (Davidow, 2003). The relevance of this approach stems from the fact that it is aimed at avoiding repetition of errors that could have been occasioned by a failure to observe critical procedural factors in the initial interaction between a customer and employees of the organization (Albright, and Roth, 2009).

Complaint typically enters an organization at various customer meeting points: order processing, accounts receivables; sales engineering, customer service center and logistics. A complaint processing system thus needs to gather complaints from around the business then analyze them in order to ascertain the root causes. From such rigorous procedure a company will significantly reduce the amount of rework needed and it will attain a higher level of first-time reliability (Davidow, 2003). According to Hammer (2010) awareness of an organization’s complaints policy and processes is an effective means of increasing the number of employees who report any nature of issue that causes dissatisfaction. If the failures in an organization can be traced to certain individuals or processes then the organization is well placed to correct such failures (Albright, and Roth, 2009).

This paper advocates for the development of an ideological construction that systematically analyses employees feedback registered by customers in the form of complaints to bolster improvements to business processes both at strategic and operational level. Inherent in the whole concept is the notion that organizations should not just be contented with the improvements achieved by satisfying complaining clients, but that the complaint feedback collated in the process should be integrated into an organization’s processes and specifically target the source of complaint (Bitner, Booms, and Tetreault, 2009). By targeting the exact location where the complaint is alleged to have originated, the problem is eliminated. This proposition is founded on the premise of employing the concept of learning system and loops in feedback to balance the diversity presented by the business environment and operations (Checkland, 2000).

CHAPTER THREE: RESEARCH METHODOLOGY

This chapter discusses the methodology of the study and describes the procedures that will be used in conducting the research study. In this chapter, the researcher will discuss the research design, data collection methods and data analysis methods that will be used to realize the research objectives. According to Mugenda and Mugenda (2003), research methodology describes the procedures that have been followed in conducting a study. A research methodology will be developed and a population determined. Data will be collected using questionnaires and analysis will be done to enlighten the research study objectives.

Research design

A research design entails a framework or an outline employed in conducting a research. “A research design is the conceptual structure within which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data” (Kothari, 2004, p. 31).Research design is a way of achieving the research objectives through proven techniques. According to Cooper & Schilnder (2003), a research design is a framework for specifying the relationship among the study’s variable and outlines procedures for every research activity.

The study will employ descriptive research design. descriptive research design is aimed at collecting information from respondents on their opinions and attitudes in relation to the research problem.

Population

A population entails all items in a field of research. Mugenda and Mugenda (2003), defined population as being made up of the entire group of people a research is going to be conducted before a sample size is selected. The population however must be carefully chosen and defined in order to come up with best results. This is due to the fact that a population that does not have characteristics of the study will lead to different results. A target population is a set of units that have observable characteristics which will be used to generalize the results of the study (Mugenda & Mugenda, 2003). In this study, the target population involves online communities. The choice of online communities was informed by the fact that these group creates value for all parties and stakeholders involved including third parties and host member. The defining criteria in this regard was the need to enhance the perceived value.

Sampling procedure and sample size

A sampling method is a way of selecting a portion of population such that the selected portion represents the population adequately (Chandran, 2004). Similarly, “Sampling is the process of selecting a number of individual for a study in such a way that the individuals selected represent the large group from which they were selected” (Mugenda & Mugenda, 2003, p.10). When the population is too large, the researcher needs to select individuals to represent the larger group. The primary purpose of sampling was to obtain information about an entire population by examining only a part of it with the assumption that the sample data convey the population parameters (Kothari, 2004). It is therefore imperative that sampling enables the researcher to narrow down the large patients and health practitioner’s population to a manageable sample that provided required data about the study. Using a random stratified sampling, various consumer communities will be selected for inclusion in the study. Membership to online communities and age will be used as the basis for stratification.

According to Chandran (2004), sampling methods are classified as either probabilty or non-probability. The probability sampling method gives an equal chance of selection to each member in the study. Every sampling unit in this case has a known non zero chance of being included in the study (Mugenda & Mugenda, 2003). Non probablity sampling method does not equally select elements from the population to participate in the study and is useful when the researcher is not interested in selecting a sample that is representing the whole population (Chandran, 2004).

According to Chandran (2004), sampling methods are classified as either probabilty or non-probability. The probability sampling method gives an equal chance of selection to each member in the study. Every sampling unit in this case has a known non zero chance of being included in the study (Mugenda & Mugenda, 2003). Non probablity sampling method does not equally select elements from the population to participate in the study and is useful when the researcher is not interested in selecting a sample that is representing the whole population (Chandran, 2004).

The target population will be grouped into strata i.e. patients and health practitioners of the NCC health center in Bahati, the elements in the target population will have an equal and independent chance of being selected randomly to come up with the sample that was used in the study.

This survey will involve a sample size of 150 internet users who have previously used online consumer service. A sample size refers to the selected representative of the larger group. “An optimum sample is one which fulfills the requirements of efficiency, representativeness, reliability and flexibility” (Kothari, 2004, p.56). The ultimate test of a sample is how well it represents the characteristics of the population it purports to represent. From the target population the required number of respondents will be selected in order to make a sample. 10% of the target health practitioners and 30 % of the target patient will be used as the sample of the study..

Pilot study

A pilot study will be undertaken as part of the exploratory research. The pilot study will involve a focus group of 20 respondents who are conversant with using the internet. The focus group will mainly be specialized personnel and practitioners in various fields, and whose work entails using online web spaces to engage consumers. The respondents will be required to map various tools used in online collaborative transactions, namely online communities, blogs and Wikis with regard to the ability of these collaborative web interfaces to establish and convey product, deliver organization an brand value to consumer.

Research Instruments

The study will involve use of questionnaire developed based on the frame of reference and research questions. The questionnaire will be divided into three sections. The purpose of the study will be highlighted at the questionnaire’s headline. The respondents’ views concerning the perceived quality of employing online consumer service will be the focus of analysis in the second section. The last section will be concerned with obtaining information about respondent’s profile with regard to age, gender, education, occupation and remuneration (income). Open ended questions, multiple selection questions, scored questions and a five point Likert-scale neutral will be used. On the Likert scale (1= strongly disagree, 2= disagree, 3=neutral, 4=agree and 5=strongly agree).

Measurements employed in the research

Variable No Question Type of scale

Reliability 1 An initial use of online customer service sites reveals that they are right in service dispensation Likert-scale

2 The service delivery in online customer service sites matches the standards promised Likert-scale

3 The service provision in online customer service sites suits consumer needs Likert-scale

4 Task completion in online customer service sites is accurate Likert-scale

5 Consumers can trusts and rely on services offered by online customer service Likert-scale

6 online customer service is quick to address consumer needs and concerns Likert-scale

7 The frequently Asked Questions in online customer service sites are comprehensive enough to address major areas of inquiry resented by consumers Likert-scale

8 There are adequate knowledgeable personnel to address problems presented by consumers in online customer service Likert-scale

9 The rate of processing problems in online customer service sites is fast Likert-scale

Security 10 Account transactions of consumers using online customer service site are accurately kept Likert-scale

11 Security for transactions undertaken using online customer service site is adequate and up to standard Likert-scale

12 Consumers consider online customer service site to be secure Likert-scale

13 Consumers feel a sense of security when using online customer service site Likert-scale

14 Consumers are confident of the level of security offered by online customer service site Likert-scale

Ease of Use 15 Consumers perceive online customer service site to be accessible and easy to use Likert-scale

16 online customer service site employs language that s well understood by consumers Likert-scale

17 Consumers can easily understand the information and text used in online customer service site Likert-scale

18 Instructions relayed to consumers in online customer service site are clear Likert-scale

Access 19 The online customer service site is accessible to customers on a 24/7 basis Likert-scale

20 Customers who intend to contact organizations using online customer service site have provisions in the form of ,inks to email or internet based query facilities Likert-scale

21 Customers can readily access their accounts by logging in anywhere at any time to receive services from online customer service sites. Likert-scale

Value of online customer service 22 Customer believe the online customer service site are an integral element of service provision for the organizations concerned Likert-scale

Customer satisfaction 23 Problems inherent within organizations can be addressed by online customer service site Likert-scale

24 Services offered by online customer service site exceed customer expectation Likert-scale

Customer Satisfaction 25 Customers using online customer service site are motivated to continue using such services.

Likert-scale

26 Customers are likely to continue suing services provided by online customer service site in future Likert-scale

27 Customers are likely to recommend their friends, colleagues and family to use services provided by organizations through online customer service site Likert-scale

Views of online customer service 28 Reasons that are likely to motivate customers to prefer using other forms of customer service instead of online customer service Multiple selection

29 Services or products that customer is likely to include to meet his or her needs Open Ended question

30 Services or products that the customer is likely to prefer remaining integral to the online customer service site Open Ended question

Data Collection methods and procedures

According to Levy and Lemeshow (2001), data are the facts present to the researcher from the study’s environment, they include primary and secondary data. Primary data are the original works of research or raw data without interpretation or pronouncements that represent an official opinion or position (Chandran, 2004). According to Bless et al., (2008), secondary information or data sources are data neither collected by the user nor specifically for the user. Thus invloves the collection and analysis of the published materials and information from internal sources. Secondary data may be obtained by collecting information from a diverse source of documentations or electronically stored information. The study collected both primary and secondary data. Secondary data included sources of literature and historical information on the two Adventist universities. Primary data will be collected using questionnaires administered on a drop and pick basis.

Data collection instruments according to Cooper and Schindler (2003), are tools used for gathering empirical evidence in order to gain new insight about a situation and answers questions that prompt the undertaken research. They include: questionnaires, interviews, observations and focus group discussions. The method to use in collecting data largely depends on the type of data, either primary or secondary data (Kothari, 2004). This process consists of examining, tabulating analyzing the evidence to address the initial proposition of the study. This study will use questionnaires to collect primary data.

Questionnaires are a series of written questions on topics about which respondent’s views or perceptions are sought (Mugenda & Mugenda, 2003). Questionnaires contain both open-ended and closed-ended questions. Chandran (2004), explained that open-ended questions or unstructured questions are those for which alternative are provided while close-ended questions or structured questions do not provide alternatives for the respondents to choose from. The questionnaires in this study had both open and closed ended questions and were administered to respondents who were required to complete them. The researcher will exercise care and control to ensure all questionnaires issued to the respondents are returned back, to accomplish this, a register for the issued and returned questionnaires were kept. The use of questionnaires in this study will be advised by the advantage it offers such as ease of administration and the convenience in targeting the response obtained by limiting the respondents to the subject at hand (Wilkinson & Birmingham 2003). Chandran (2004), observed that use of self-administered questionnaires is the only way to elict self-report on people’s opinion, attitude, belief and value. Questionnaires also allow for confidentiality of the respondents (Wilkinson & Birmingham 2003).

Data analysis and presentationData analysis according to Bless et al., (2008), is the process of organization, manipulation and consideration of meaning of data collected. Cooper and Schilnder (2003), argued that data analysis involves reducing accumulated data to manageable size, developing summaries, looking for patterns, and applying statistical techniques such as tables, charts, and percentages. Data analysis for this study integrated content analysis, qualitative and quantitative methodology in order to derive meaning from the data collected from the practitioners and patients. Quantitative data collected will be analyzed using statistical package for social sciences SPSS and presented through percentages, means, standard deviations and frequencies. The information will be presented by use of bar charts, graphs and pie charts.

Ethical consideration

Ethics are beliefs and rules about what is right and wrong. According to Ferrell, Freaedrich and Ferrell (2008), research ethics emphasises on determing what is right and wrong during the research period. The goal of ethics in research is to ensure that the researcher follows the right procedure in the collection, analysis and recommedation of the research findings. Value and judgement plays a critical role when one makes ethical decisions during the research process (Ferrell et al., 2008).Hence the researchers’ judgement on the findings should be true and just to portray the exact situation at hand. However; unethical activities are pervasive and include violating none discloses agreements with the parties who provide data to the researcher, breaking respondents confidentiality, misinterpretation of results, deceiving people and avoiding legal liability.

The researcher will conduct this research observing research ethics by getting approval from the universities to carry out the research. Misuse of privileges given by the universities, confidentiality, privacy and anonymity will be considered while carrying out the research. The researcher will also maintain high levels of integrity and remain objective throughout the study. The respondents will be informed the purpose of the research, its objective and the benefits of the study before they fill the questionnaires.

Conclusion

In order to realize the predominant market philosophy that lays emphasis on a client oriented approach to the attainment of compliance in the business environment, organizations need to focus on processes intrinsic to an organization’s value chain. In particular, focus should be on those processes which add the greatest value to customers. In profitable relationships between customers and an organization, such improvements have been found to play a critical role. Customer complaints serves as an effective means of effecting process improvements that are customer focused and at the same time identify systematic errors that are likely to occur in an organization. Customer complaints are more advantageous than data collected through panel studies and surveying of customers, since customer complaint information is usually a true reflection of the customer’s opinion. By putting in place appropriate mechanisms to address complaints arising from discontented customers, an organization’s financial performance is positively affected. Customer complaint process essentially covers a recovery process, tailored to ensure that complaints of discontented customers are addressed through timely correction of the errors made.

References

Albright, T.L., and Roth, H.P. (2009). Managing quality through the quality loss function. Journal of Cost Management, Winter, pp. 20–37.

Bosch, V.G. and Enriquez, F.T. (2005) “TQM and QFD: exploiting a customer complaint management system”, International Journal of Quality & Reliability Management, Vol. 22 No. 1.

Bitner, M.J., Booms, B.H., and Tetreault, M.S. (2009). The service encounter: diagnosing favorable and unfavorable incidents. Journal of Marketing, 54, January, pp. 71-84.

Cardy, R.L., and Dobbins, G.H. (2006). Human resource management in a total quality management environment: shifting from a traditional to a TQHRM approach. Journal of Quality Management, 1, pp. 5-20.

Checkland PB. (2000). Soft systems methodology: a thirty year retrospective. Systems Research and Behavioral Science 17: pp.11–58

Davidow, M. (2003) “Organizational responses to customer complaints: what works and what doesn’t”, Journal of Service Research, Vol. 5 No. 3, pp. 225-50.

Dee, B.; Karapetrovic, S. and Webb, K. (2004) “As easy as 10001, 2, 3”, Quality Progress, Vol. 36 No. 6.

Foster, G., Gupta, M., and Sjoblom, L. (1996). Customer profitability analysis: Challenges and new directions. Journal of Cost Management, Spring, pp. 5–17.

Hallen, G. and Latino, R.J. (2003) “Eastman Chemical’s success story”, Quality Progress, Vol. 36 No. 6, pp. 50-4

Hammer, M. (1990). Reengineering Work: Don´t Automate, Obliterate. Harvard Business Review, July-August, pp. 104–112.

Rambaud, L., (2006) “8 D Structured Problem Solving: A Guide to Creating High Quality 8D Reports”, Phred Solutions, Breckenridge, CO, USA.

Stauss, B. and Schoeler, A. (2004) “Complaint management profitability: what do complaint managers know?”. Managing Service Quality, Vol. 14 No. 2, pp. 147-56.

Stichler, J.F. and Schumacher, L. (2003) “The gift of customer complaints”, Marketing Health Services, Vol. 23 No. 4, pp. 14-15.

Zairi, M. (2000) “Managing customer dissatisfaction through effective complaints management systems”, The TQM Magazine, Vol. 12 No. 5, pp. 331-5.

Custom Humidors

Custom Humidors

Custom Humidors

Custom Humidors are specially designed humidors to suit a particular purpose. In essence humidors are containers made for holding cigars as well as other tobacco merchandises at a stable echelon of humidity. Custom humidors are particularly designed with a specific use in mind. These give the user great convenience in storing and holding cigars. Specifically planned humidors include particular humidor designs that are nothing short of the intended use. Hand-made-cigar humidors are part and parcel of custom humidors. These often plays a more specific role bearing in mind that hand made products are often designed with customized precision. Incase a person is interested in having a particular humidor; a custom humidor could be created precisely to fit your specifications. It is possible to design a humidor explicitly to fit your picky size and variety of cigar. Cabinet humidors units can be designed for clandestine clubs, eateries as well as larger suburban installations, in addition to commercial humidors for gifts and confidential labels. Laser figurine is obtainable on all custom humidors.

Custom Humidors also incorporate antique humidors. Antique humidors are designed in accordance to traditional styles. Custom humidors cut across various dimensions of humidors depending on the specifications of the cigars. In reality, custom humidors primarily seek to fit the particular use of the cigars as well as its use. Personalized humidors are particularly designed with the personal particulars of the user. Therefore, it is possible to carve personal initials, name, folks crest, company logo and military emblem among others, to the specifications on the humidor. Large humidors work well for those customers with huge volume demands. The makers often consider their specifications. Immense humidor designs are often witnessed as the custom humidor makers. This explores the fact that most users will prefer having specifically designed humidors for their use.

Custom engraved glass is as well offered on all glass humidor designed to the user’s measurements. Anyone interested in custom humidors ought to contact the makers with a list of his preferences and specifications. These will enable the makers to come up with a commodity that suits the purpose. Cabinet humidors are made with exact precision for clients so as to serve the particular purposes. The user must cite the dimensions, timber species along with preferences, after which the makers give their quotation thereafter a humidor devised exclusively for the user.

Custom-walk-in humidors are also created specifically to carter for user’s particular needs. All you need to do is to specify the needs so as the makers consider them in the process. Incase one is not satisfied with the custom humidors then he can contact the makers for further deliberations. Apart from making specific humidors lessons are also provided on how to use a humidor. Essentially, every one of custom humidors is usually non-returnable; moreover any disparity from a stock humidor is perceived a custom humidor. Custom humidors are very reliable in several ways. Basically, there are preferable compared to standard humidors simply because they are designed specifically for the task. In every aspect custom humidors serve the users better than standard humidors.

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Custom Homework, The Nyulnyulan use Bardi language

Custom Homework, The Nyulnyulan use Bardi language

Institution

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Student’s Name

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Custom Homework

The Nyulnyulan use Bardi language in their communication and other social aspects of their life. The Birdi language is an Australian northernmost language that is mainly used by this family, which is none-Pama. The non-Pama-Nyungan family lives in Kimberly, the western region of Australia. The language is considered as diminishing since its being absorbed by other languages within the region. It is claimed that only five individuals in the entire community can speak the language fluently among all people who identify as the Bardi community (Bowern, McDonough and Kelliher, 334). The Bardi community is approximated to consist of about one thousand people.

The Bardi community and language is said to have been influenced by the European missionaries. This happened in the 1930s when people from the community were moved to other regions dominated by the European languages and indigenous language speaking communities. This is how the Bardi community started to deteriorate in social value and significance in Australia (Bowern, McDonough and Kelliher, 334). The issue of first language acquisition within the Bardi people almost died making it difficult for even the Bardi people to speak their mother tongue fluently. The popularity of the Bardi community and language is therefore said to be dying out given that only five people can speak the Bardi language effortlessly.

The Baard and Jawi are intelligible language varieties related to the Bardi language. They have very much influenced the existence of the Bardi language. The influence of the Bardi by these two languages has made it difficult to know the scope of dialect variety within the language. There is evidence of collected information in a study to know more about the Bardi community and language (Bowern, McDonough and Kelliher, 341). The study involved collection of data through recording of word lists alongside elicitation. This was being done to bring out the language dialect and the aspect of fluency or alteration among various speakers conducted. There is no formal speaker to the language but those conducted were perfect for the study.

Aspects of study included the structure of syllables alongside word structures. In this case, it was found that Bardi language has great inflectional morphology. This was found to be intensive in verbs, found to take suffixes, prefixes, as well as additional clitics. This was against nouns and pronouns or even adjectives that are inflected mainly for case. Nouns were found to take possession makers. This was by either a prefix or a suffix. An investigation of consonants indicated that the Bardi language has seventeen consonants. Among these seventeen consonants, twelve of them are sonorants and five obstruents that act as stops (Bowern, McDonough and Kelliher, 343). There were no fricatives found with the language as far as consonants are concerned. There is hardly contrasting stops within the language. Stops were found to be voiceless and less noticeable. Another aspect of study was plosives within the diminishing language. Plosives involve stop contrasts occurring at about five places of the language articulation. Plosives is part of the consonants but was considered exclusive since voicing is hardly contrastive in the stops.

Lenition was another item of study and it was found to include two processes in the Bardi language. The two lenition processes were synchronic and historical. The synchronic process is associated with leniting the stops that are phonemically voiceless to sonorous reflexes. On the other hand, the historical lenition is associated with sound change resulting to morphological alteration. Other aspects included retroflection, sonarants, vowels, prosodic features, and transcription of connected speech (Bowern, McDonough and Kelliher, 346). All these have completely changes among majority of the Bardi people due to influence by other communities and languages. Most of the Bardi people can hardly speak their native language apart from five people. Given that, these five people pass on, the Bardi language and culture dies out completely in the next few years.

Works Cited

Claire Bowern, Joyce McDonough and Katherine Kelliher. “Bardi.” Journal of the International Phonetic Association, Vol. 42, Is. No. 3 (2012): 333-351 doi:10.1017/S0025100312000217.

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Currys Research Methodology

Currys Research Methodology

3.0Research Methodology

The study aimed to identify if there is any relationship between loyalty programme and customer retention at Currys UK. To establish the concept of customer retention and its implication on store’s profitability, researcher has identified other areas of business such as branding, customer service, customer’s intention to switch etc. It was imperative for the researcher to select specific methods before carrying out the research. Hence, researcher had decided semi-structured methods. Even though there are elements within the research which could have been analysed through empirical research, however, it would not have been possible to incorporate customer’s opinions. Without customer’s opinion on loyalty, the research would have been left open to questions. Hence, researcher took semi structured approach where literatures on loyalty and retention have been identified and analysed first. It was then tested through a field research where customers were given a set of questions to express their feelings and opinions on loyalty and retention. Researcher felt that this methodology was best as it allowed literatures to be tested on a field level. It was easy to collect data through a survey from customers and analyse it in computer programme to reach conclusion. To ensure the study will produce the desired results, researcher has testified the questionnaire on a small sample. Data collected through this pilot study was analysed in computer program to ensure it generated the outcome. This methods of collecting and testing sample data before the actual survey proved to be very effective as it ensured the reliability of the system and questionnaire. The following sections of the research describes different approaches, how the research was designed, what strategy was adopted to collect and analyse data for this study.

3.1 Research Approach

The sample population for this study consists of potential customers and employees who work at Currys Leyton and Stratford branch. Researcher has approached customers during busy period, more specifically over the weekend to collect data. It was imperative to have relaxed and flexible approach in order to collect quality data. As there was no obligation on the store management to release any information to researcher, flexibility and networking skill had opened a new door to researcher. Researcher had managed to convince employees from the social circle to give information on customer retention and loyalty. Relax attitude of the researcher also allows customers to understand that this study is not for marketing purpose as some customers felt their information might be used for direct marketing (Miles and Huberman, 1994). Researcher approached to he customer and employees with explanation, why the study is being carried out and the outcome sought from the study. As there was no pressure on customers or employees, they were happy to assist the researcher to fulfil academic commitment. There are specific reasons why data was collected from these two locations. Firstly, the location was close to researcher residence and secondly it was appropriate to collect data from these locations as the store gets very busy during the weekend. Currys being in the heart of largest shopping centre in Europe, there was a great influx of customers who were eager to fill out the questionnaire which increased the quality of the data collected. Researcher had given opportunity to customer to opt out of the survey to ensure customer does not feel obliged or pressurised. On the other hand, data has been collected randomly to remove biasness (Saunders et al., 2007), however, it would have been better if data was collected equally from male and female customers.

3.2 Research Strategy

Throughout the study, researcher has adopted different strategy to meet the deadline. The strategy adopted was based on the circumstances where researcher has spent a lot of time negotiating with friends to convince to take part in the survey. Apart from networking, other strategy includes, cost reduction, time management, in-depth search strategy in order to ensure every aspects of the study is covered. To reduce the cost of travel, researcher has spent the whole day at the Stratford and Layton shopping centre to collect data. This enabled researcher to collect lots of data in a single day and saved travel cost. To ensure the timely delivery of the project, researcher has adopted time management strategy where the whole research has been divided into section. It was important to put a deadline for each section of the study. This enabled researcher to complete individual sections and link it with the next section, making sure there is a thread running throughout the study. On the other hand, researcher had allocated time to carry out in-depth research on the subject topic, specifically in literature review section where researcher went to different databases and collected articles which is related to the study. The articles were read and screened to ensure appropriate articles were taken into consideration which had similar topic. This strategy enabled the researcher to formulate the questionnaire and linking the questionnaire with the literature review section. This search strategy enabled the researcher to identify, compare and contrast different articles and give own opinions. Researcher felt the need to adopt a supportive strategy to ensure management of Currys do not feel disturbed by the presence of the researcher outside the store. Hence, researcher had agreed verbally that the survey will stop taking place if management request to do so. On the other hand, strategy to support the customers while filling out survey questionnaire enabled researcher to build a report with the customer. As researcher has offered assistance to fill out the form for few customers, they felt that their opinion was valuable for this study. Researcher also felt the need to be organised to ensure data is collected on time, secured and recorded appropriately. Hence, researcher used stop watch, pen, pencils while collecting data and highlighter while reviewing literature. To ensure the authenticity of this research, researcher has saved and printed a handful of articles and secondary data which has been incorporated with this study. Researcher had adopted a friendly attitude while collecting data from customers and employees. Customers were greeted and explained what is expected from them, brief information about the research and outcome. Researcher also answered questions from the customers and employees to the best of his knowledge in the field of customer retention and loyalty. Moreover, participants have been given options to stay anonymous and have not been asked to personally sign the questionnaires. Some questionnaires had been completed by the researcher, as customers had shopping bags with them and did not want to leave it on the floor. Some customers did not feel confident to read and write and preferred the researcher filling out the form on behalf of them. Once the questionnaire was completed, researcher showed his gratitude by thanking every customer s and employees who took part in the research.

3.3 Data Collection Methods

It is important to collect appropriate and quality data for a research. The viability of the research depends on the source, authors, participant’s viewpoint (Rea and Parker, 2005). While searching for relevant data and journals, researcher has adopted primary and secondary data collection techniques. For example, primary data has been collected through the survey to identify if there is any deviation between the literature review and actual response from the customers. On the other hand, secondary data collection enabled researcher to have a holistic idea about the subject topic. To ensure the correct data is sourced and analysed, researcher used online sources. For example, Business Source Premier, Emerald, Science Direct, Sage and other database available using library account. Other search engine such as Google, Yahoo has also been used to search information in this area using key words i.e. retention, customer loyalty, barriers of loyalty. While collecting qualitative information from the customers and employees, researcher used notepad and pencils to log what has been said during the meeting and survey. To maintain confidentiality of customers, researcher did not use voice recorder, even though it would have saved researcher time to write it on the notepad. Primary data has been collected though a survey (Appendix A and Appendix B) which holds information about customers attitude towards brand and loyalty, what matter to them most and how Currys can bring customers back to the store. After the data had been collected through the survey, it was entered into MS Excel. Data was coded to ensure customer’s anonymity. As the sample size was 60, it took researcher few days to enter it into the system and for data protection, researcher used password to protect the data or others having access to the data. Researcher also ensured that written questionnaires were locked in a filing cabinet which nobody had access to without researcher. Following recommendation from Silverman (2004), researcher has adopted this particular method for the following reasons.

Eliminate biasness- Researcher had collected data from both primary and secondary sources as it ensured correct data is sourced from the onset. It also ensured the research is free from biasness i.e. data from one source.

Diversification- Researcher wanted to have diversification in the study. For example, questionnaire had enabled the researcher to capture diversified opinions from customers and employees on loyalty programme and retention.

Availability of data- Semi structured research methodology is one of the best methods to pursue social research. Hence primary and secondary data collection methods were adapted to as customer retention through loyalty programme is a new concept and there is no or very little data available on the public domain to identify issues in this area. Hence it was imperative to collect the data manually to identify gaps and golden standards, i.e. customer’s acceptance of brand than loyalty.

Fear factor- Collecting data from a group of employees were relevant as it saved time for both employees and researcher. It also ensured that employees do not feel intimidated by managers being present in the meeting. One meeting took place outside the store and another in the restaurant where employees were relaxed and did not fear intimidation. It also ensured that confidentiality of the employees was maintained.

3.4 Limitations of the chosen methods

Even though there has been a rigorous data collection method in place, however the methods had its own limitations. None of these methods are fault proof and does not guarantee free from biasness. It was difficult to hand out questionnaire to equal number of male or female customers, leaving the research open to question on gender biasness. The data has been collected from only two stores, leaving the study open to question, is this enough to interpret the success of Currys overall programme. On the other hand, 60 customers had been chosen as data sample which is too small for over a million customer of Currys UK. Within the secondary data collection, there are limitations due to the lack of availability of books in this area. Some journals considered in this study were over 10 years old. The concept within the journals might have changed over a period of time which, leaving the study opens to question. Collecting data from employees in a group also had limitations as few employees did not respond equally with others. This might have been due to the fear factor or tiredness of the employees after a long day shift. This left the study open to question on the quality of the data collected though survey.

3.5 Ethical consideration

While carrying out the research on Currys, it was inevitable to face ethical issues during data collection. From the onset, researcher endeavored to receive formal cooperation from Currys management but has not been successful. Researcher made personal visit to the store, spoke to managers to allow employees to take part in the survey and a focus group which was proposed by the researcher to be held within the store. However, management did not feel the necessity to formally commit them in this research. Hence, collecting data from the employees outside the store has been an ethical issue for the researcher. As the study was depending on qualitative and quantitative data from customers and employees, there were no other alternatives. To balance the ethical issue, researcher has ensured management that the study will not put strain on the management or the employees and it will not affect the company financially.

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National Security Threats to Supply Chain

National Security Threats to Supply Chain

National Security Threats to Supply Chain

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National Security Threats to Supply Chain

There are many different types of security threats in the supply of different kinds of goods. When the goods being transported through a particular chain of supply are of exceptionally high cost, or they are valuable, security in most times is a considerable concern. This is because there are always individuals and even groups who always want to make the chain unstable, and therefore the goods cannot arrive at their destination. Apart from this, however, national security threats generally affect any supply chain, most of which are connected over an extended geographical area or from other countries. This is a big concern for everyone, and many efforts are in place to make sure that national security threats do not affect the supply chain of different goods. This paper focuses on national security threats and how they affect different types of supply chains.

Transnational crime is one of the national security threats to the supply chain. The FBI has a section dealing with these types of crimes. However, the fact that they are transnational still impacts the American people since some of the goods imported may be subject to these criminal groups (Basu, 2013). Therefore this is a big issue since these groups may even divert goods purchased and use them or re-sell them to other people.

Cyber terrorism is another type of national security threat which can affect almost everyone. With the growth of the internet of things, hacking groups and other individuals who want to maliciously steal or destroy other people’s property or information (Urciuoli et al., 2013). This affects the supply chain because a person wants to buy something, and they have to place an order online for that specific item. Sometimes cyber terrorists create a fake website, and a person ends up paying their money to the wrong address, and their money is never refunded, neither is the item they were trying to buy. This poses a significant problem because it disrupts the chain supply even before it begins. Instead, due to these issues, products delay as the company focuses on addressing cyber terrorism.

Pandemic threats and occurrences are also a threat to national security. From the view of pandemics being artificial, for example, in biological warfare, these become a significant threat to national security and supply chain. An example is coronavirus disease; even though it is not yet proven whether it is artificial, there is still a massive supply chain disruption due to its presence. Therefore, it is a security threat since the immunity and protection within the united states is surpassed by this disease, and those responsible have to find reasonable ways to explain the issue (Ivanov, & Das, 2020). People get sick, and in fear of getting the disease, some resign while others are sacked to reduce the costs of running different companies and organizations. All these disrupt the supply chain in that it becomes prolonged. For example, clothes or other products may stay up to 14 days before being picked to ensure that the owner who is to choose is not at the risk of being infected with the coronavirus.

References

Basu, G. (2013). The role of transnational smuggling operations in illicit supply chains. Journal of Transportation Security, 6(4), 315-328.

Ivanov, D., & Das, A. (2020). Coronavirus (COVID-19/SARS-CoV-2) and supply chain resilience: A research note. International Journal of Integrated Supply Management, 13(1), 90-102.

Urciuoli, L., Männistö, T., Hintsa, J., & Khan, T. (2013). Supply chain cybersecurity–potential threats. Information & Security: An International Journal, 29(1).

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