CUSTOMER RELATIONSHIP MANAGEMENT OF MOBILE SHOPS AND REPAIR CENTERS
T.U Registration No: 7-2-39-1710-2014
Exam Roll No: 14662/14
A Summer Project Report Submitted to:
Office of the Dean
Faculty of Management
In Partial Fulfillment of the Requirements for the Degree of
Bachelor of Business Administration (BBA)
DECLARATIONThis is to declare that I have completed the summer project entitled “Customer Relationship Management of Mobile Shops and Repair Centers” under the guidance of Associate Professor Achyut Raj Bhattarai and Dr.Sajeeb Kumar Shrestha in partial fulfillment of the requirements for the degree of Bachelor of Business Administration at Faculty of Management, Tribhuvan University. This is my original work and I have not submitted it elsewhere.
Name: Birat Thapa
ACKNOWLEDGEMENTSThe study “Customer Relationship Management of Mobile Shops and Repair Centers” has been done in order to fulfill the partial requirement for achieving the degree of Tribhuvan University. Firstly, I would like to thank our report supervisor Asso. Prof. Achyut Raj Bhattarai and Dr. Sajeeb Kumar Shrestha for their continuous guidance and support they gave for the completion of the project. Also I would like to thank Assistant Director DurgaDuttaPathak for his continuous guidance.
I would like to thank Campus Chief Asso. Prof. Krishna Prasad Acharya for providing the required resources, working environment, library facilities and internet facilities for the completion of my project.
Also, I would like to thank my friends and family who helped me a lot in finalizing this project within the limited time frame.
Table of Content
Contents Page no.
TOC o “1-3” h z u DECLARATION PAGEREF _Toc511581447 h 2ACKNOWLEDGEMENTS PAGEREF _Toc511581448 h 3LIST OF TABLES PAGEREF _Toc511581449 h 6LIST OF FIGURES PAGEREF _Toc511581450 h 7EXECUTIVE SUMMARY PAGEREF _Toc511581451 h 8CHAPTER I PAGEREF _Toc511581452 h 9INTRODUCTION PAGEREF _Toc511581453 h 91.1 Context Information PAGEREF _Toc511581454 h 91.2 Statement of Problem PAGEREF _Toc511581455 h 101.3 Purpose of the Study PAGEREF _Toc511581456 h 111.4 Significance of the Study PAGEREF _Toc511581457 h 121.5 Literature Review PAGEREF _Toc511581458 h 121.5.1 Conceptual Review PAGEREF _Toc511581459 h 121.5.2 Theories and Studies on Customer Relationship Management PAGEREF _Toc511581460 h 141.6 Research Methodology PAGEREF _Toc511581461 h 191.6.1 Research Design and Plan PAGEREF _Toc511581462 h 191.6.2 Population and Sample Size PAGEREF _Toc511581463 h 201.6.3 Data Collection Procedures PAGEREF _Toc511581464 h 201.6.4 Analytical Tool PAGEREF _Toc511581465 h 20CHAPTER II PAGEREF _Toc511581466 h 22DATA PRESENTATION AND ANALYSIS PAGEREF _Toc511581467 h 222.1 Respondent profile PAGEREF _Toc511581468 h 222.1.1 Responses by Age PAGEREF _Toc511581469 h 222.1.2 Responses by Gender PAGEREF _Toc511581470 h 232.1.3 Response by Marital Status PAGEREF _Toc511581471 h 232.1.4 Qualification PAGEREF _Toc511581472 h 232.2 Descriptive Statistics Analysis PAGEREF _Toc511581473 h 242.2.1 Descriptive Analysis of Focus on Customers PAGEREF _Toc511581474 h 242.2.2 Descriptive Analysis of Service Quality PAGEREF _Toc511581475 h 252.2.3 Descriptive Analysis of Availability of Equipment PAGEREF _Toc511581476 h 262.2.4 Descriptive Analysis of Price PAGEREF _Toc511581477 h 272.2.5 Summary of Descriptive Statistical Analysis PAGEREF _Toc511581478 h 282.3 Inferential Statistics Analysis PAGEREF _Toc511581479 h 292.3.1 One Sample t-test PAGEREF _Toc511581480 h 292.4 Major Findings PAGEREF _Toc511581481 h 30CHAPTER III PAGEREF _Toc511581482 h 33CONCLUSION AND ACTION IMPLICATIONS PAGEREF _Toc511581483 h 33REFERENCE PAGEREF _Toc511581484 h 34APPENDICES PAGEREF _Toc511581485 h 35
LIST OF TABLESTable 1.1: Empirical Review 13
Table 1.2: Name of parlour in Samakhusi 16
Table 2.1: Age (owners) 20
Table 2.2: Age (customers) 20
Table 2.3: Marital status (owners) 21
Table 2.4: Marital status (customers) 21
Table 2.5 Descriptive analysis of demand 25
Table 2.6 Descriptive analysis of product promotion 26
Table 2.7 Descriptive analysis of add-on service 27
Table 2.8 Descriptive analysis of calendar-based price promotion 28
Table 2.9 Descriptive analysis of location 29
Table 2.10 Descriptive analysis of cost of products 30
Table 2.11 Descriptive analysis of operational cost 31
Table 2.12 Summary of Descriptive analysis 32
Table 2.13 Mean and Standard Deviation of Variables 33
Table 2.14 One Sample T-Test 33
LIST OF FIGURESFig 1.1: Five Force Model 6
Fig 2.1: Purpose for Investment 22
Fig 2.2: Parlour Visiting Frequency 23
Fig 2.3: Average Amount Spent per Visit 24
Fig 2.4: Are you being correctly priced? 24
CHAPTER IINTRODUCTION1.1 Context InformationCustomer relationship management is the key of a successful organization to maintain the continuity of the profit in a powerful manner and help organizations to survive. Customer relationship management is the term that refers to the plans, policies, strategies and practices that are used by a company to attract and retain more customers. In many industries, companies are trying to retain consumer because loyal customer is a source of profitability. Marketing practitioners and researchers agree that 5% of loyal customers and more can cause an increase in profits of up to 94% and the customer retention is cheaper than acquiring new customers (Oliver, 1999). Customer relationship management enables the company to focus on the relationship of the organization with its customers. The main motive of customer relationship management is not just to increase sales and earn revenue, but to attract and retain loyal customers which are ultimately beneficial for organizations’ long term sustainability. The primary goal of customer relationship management system is to integrate and automate sales, marketing, customer retention and customer support. (Wikipedia, 2018)
Mobile technologies have great impact on towards business and provide various opportunities for marketing activities especially the facility of communicating the consumer at any time. Latest improvements in an area of internet and wireless technology have provided the way for effective telecommunication service and mobile internet (Okazaki, 2005). Mobile technologies provide great importance on today’s marketers and advertisers. It is integrating internet and improving the communication, information sharing and networking. Even mobile phones seem to be dominant technology among other technologies and devices. Mobile communication devices have provided people with new approaches to accessing web contents, emails, instant messaging, and commerce services in a convenient and flexible way. It is a technique of reaching the target customer through computer networks, including the internet. Customer performs some activities like of buying, selling, transferring, or exchanging products, services and information. Electronic marketing is the process of using information technology in communicating and delivering value to the customer. Electronic commerce is basically classified into four groups, which are business to business, business to, peer to peer and customer to business. Mobile devices are the wireless handheld devices and helps in buying and selling goods and also on other commercial transaction. By taking advantage of technology and applications, mobile internet becomes more advantageous subsidiary channel for traditional electronic commerce, which is showing big potential for advertisers. Development in mobile technology has resulted in widespread usage together with its demand. The mobile device has turned into a powerful marketing channel, which helps businesses to set up electronic presence and connect with costumers without time boundaries
Mobile shops are growing tremendously in Nepalese market. A research conducted by the Kantipur publication (2016), shows the mobile subscription rate in Nepal is around 27.5 million and almost 75% population have access to the smart phones. Even in rural areas the people are switching from normal phones to smart phones. Because of this, mobile shops and repair center have been an attractive investment area. But most of the shops focus more on branding or promotion rather than developing the customer relationship. In order to make the high profit and to meet their objective, shops needs to focus on the customer relationship.
1.2 Statement of ProblemSmart phones have become an integral part of human life and consistent use of smartphones in daily life has become a lifestyle and need at a same time. Today a large number of populations have internet access through smartphones and mobile devices rather than computer or laptop. Through Mobiles features a user can get in touch with a whole world by the help of internet. Increase in mobile users has brought a revolution in advertising and marketing sector called mobile marketing.
In today’s world of technology, all of us want to have latest smartphones and quick service in case of any defects and for that we have to make a choice among various service providers. Customers are increasingly aware of the options offered in relation to the rising standards of service. In this context, expectations rise and customers become more serious of the quality of service. Service quality, customer satisfaction, customer retention, improved performance and appropriate pricing are now the major challenges faced by the mobile shops and repair centers.
This study is trying to make an important attempt to study the customer relationship management of mobile shops and repair centers in Newroad area. This research tends to find out how the mobile shops treat their customers and maintain long term relationship with their customers.
What is the present condition of Mobile Phone Market in Nepal?
What are the major problems faced by Mobile Phone trader in Nepal?
What are different types of activities related to customer relationship management done in mobile shops and repair centers?
What is the role of retailer in influencing the purchasing decision of consumer in mobile phone? And who else other than retailer influence the consumer in purchasing decision
Why are there different prices for the same service provided by mobile shops and repair centers?
1.3 Purpose of the StudyThe overall purpose of the study of mobile shops and repair centers parlour is to explore different customer relationship management strategies used by the shops and repair centers. Purpose of this study can be summarized as:
To identify the service provided by mobile repair centers.
To examine the quality of service provided in order to retain customers.
To find out the level of focus on customers need and demand by mobile shops and retail shops.
To analyze the availability of equipments to serve customers need.
To explore the impact of prices charged in customer relationship management.
1.4 Significance of the StudyThe following will be the significance of this study:
It will help to develop the level of understandings and helpful to enhance the knowledge regarding customer relationship management.
This study will be helpful to understand why different prices are charged for same service.
It will help to analyze how different mobile shops and repair centers are attracting and retaining various customers and whether or not customers are satisfied with the quality and cost of service they get.
1.5 Literature ReviewTo analysis the amount of study done in the field of customer relationship management of technological industry through around the globe, an overview of literature is done in this part.
1.5.1 Conceptual Review
Customer relationship management can be defined as the method of understanding the customer behavior through intense communication with them in order to improve the performance which is represented in attracting the customers, keeping them and increasing their loyalty and profitability (Swift, 2000). CRM is a comprehensive strategy that involves the process of acquiring customers, keeping them and cooperating with them in order to create a distinguished value for both the company and the customer (Parvatiyar and Sheth, 2002). This strategy requires integrating the functions of marketing, sales, customer service and exposition chain so as to achieve the highest competence and efficiency in delivering value to the customer. From this definition CRM is regarded as a strategy with the aim of delivering a distinguished value to the customers through improved marketing productivity. CRM is merely a strategic process by which more profitable customers to the organization are chosen, and interactions between the organization and customers are determined so as to achieve the goal of maximizing the present and future values for customers (Kumar ; Reinartz, 2006). Components of customer relationship management
Customer loyalty. Customer loyalty can be approached into two directions attitudinal (emotional) and behavioral (functional). The attitudinal definition of loyalty suggest that loyalty is a state of mind whereas behavioral loyalty means that someone is willing to pay a premium for one brand over another brand even without favor to the attitudes that underlie that conduct (Rogers ; Peppers, 2004). Behavior customer loyalty is not the cause, but the results of preference. A company focusing on different tactics to increase customer loyalty in fact increase the amount of repurchase behavior strategy that can easily include, raising consumer`s general choices for the brand or customer level of satisfaction with it. Behavioral customer loyalty is simply more useful and practical because when customer is loyal then customer is a repeat purchaser. Customer loyalty should have as direct connection as possible to a company`s financial and operational profits results.
Customer relationship. Customer is someone with whom we exchange value. With better service provided to the customer in return strong relationship bond will create between the company and customers (CK, 2016). Customer relationship targets towards the building of an infrastructure, which may be used to develop long-term customer supplier relationship. Whereas it was once impossible to enter the other`s domain at one`s own convince, now a days it is a great easier deal. On the other hand customer are able to look into the records to determine whether a specific products is in stock, track the status of delivery and analyze other buyer opinions on the product. The buyer may be involved as lead user in the development of new products and share confidential information. Customer can obtain access to areas of the company which were previously hidden and which could only be entered or accessed under supervision and by appointment (CK, 2016). As viewed from the other side it becomes much easier for suppliers to gather information from customers and contact them.
Customer service. Another important component of customer relationship management is customer service. Companies only know the strength and drawbacks with the results of provided customer services (CK, 2016). Different service companies promote the mantra TLC; think like customer while designing their service interactions (CK, 2016). Due to mishandling on how customer think, many service company results miss opportunities to become truly excel lent. Understanding customer psychology at a deeper level can help company to provide excellent services (CK, 2016). Actually while most of the service company addresses the obvious things that affects customer’s psychological attitude towards the service such as responsiveness on the part of their employees (CK, 2016).
Objectives of CRM Systems
The main objective of CRM is to understand the needs of the customers maintain long term relationship with them and maintain the continuity of the profit in a powerful manner and help organizations to survive.
Identify potential customers
Treat customers like you know them
Understand customers’ latest needs and demands
Decrease attrition by increasing value and satisfaction
Increase usage of current products and services
Increase customer service and satisfaction
Moving customers from strangers to acquaintances to friends to partners
Integrate marketing and sales efforts throughout the various channels used by the company.
1.5.2 Theories and Studies on Customer Relationship ManagementAccording to Johnston and Marshall (2010), “CRM enhances the process of securing, building, and maintaining long-term relationship with profitable customers”. Baran et al (2008) emphasized that the goal of CRM “is not merely to establish and maintain a relationship with customers, but rather to increase the strength of the relationship from acquaintanceship to friendship to partnership”. (Baran, 2008). CRM is a complete customer culture developing inside the whole organization (Chaffey and Smith, 2012).
Firms frequently focus on attracting new customers but do not pay attention to keep them (Wilson, 2008). CRM enhances the ability of a companies to understand customers and focusing on their needs, in order to get closer to them (Chaffey and Smith, 2012). The implementation of CRM helps organization to satisfy customers, reduces spending (focus only on high-value customer) and improves use of the customer channel (Johnston and Marshall, 2010). Companies ask questions collect information and build a better profile of their customer. Each customer is thus, recognized and remembered, by their name and need. Through CRM, companies have an overall view of their customers. (Chaffey and Smith, 2012)
CRM allow managers to develop new services, increase the quality of services, reduce marketing costs, identify and retain profitable customers (Laudon et al, 2012), improve customer loyalty, and increase thus, the profitability of companies to focus their communication and marketing expenditures to high-profit customer. Concurrently, reduce and eliminate excess expenditure on non-profitable customers. (Gay et al, 2007). In addition, Baran et al (2008) emphasised that CRM increases cross selling, thus gets customers to buy other company products and services.
Hennig and Thurau (2002) conducted study about CRM for assigning a model for the successful long-term relationship between public service companies and customers. The study concluded that the customer’s satisfaction, commitment and trust are three dimensions for the relationship quality with the customer which directly or indirectly affect the services which are characterized by a high degree of communication and highly individualized services, such as financial institutions, therapeutic institutions, travel agents, hairdresser’s…and etc. The second set represented individual institutions that offer direct services characterized by moderate or low degree of communication and offering less individualized service, such as shoe repairing shops, security institutions, such as guarding companies and etc.
1.5.3 Empirical Review
CK (2016) conducted research on Customer relationship management and customer retention in the Amica Restaurant at Valmet Oy Ltd. The objectives of the research were to increase the understanding of customer retention by investigating a service company and to improve their customer retention through customer relationship management. Qualitative and semi-structured research design was used.
The research confirmed that in order to be able to attract and keep customers by increasing the customer retention rate, companies have adopted a proactive approach devoting time and resources to stay in touch with their customers.
Lui (2013) researched on Customer relationship management in the traditional retail banks in France. The objective of the research was to find whether CRM have a positive impact on the customer loyalty in traditional banking? Deductive approach and mono-method quantitative research design was used. Questionnaire survey was conducted among respondents though cross-sectional. The valid sample 84 was declared.
The research confirmed that CRM has positive impact on the customer loyalty in traditional banking and loyalty is an important factor to increase the financial performance of the companies and avoid customers switching to other competitors.
Coltman (2007) analyzed on Customer retention strategies in retail with reference to Reliance fresh and easy day. Major objective of the study was identifying the extent to which CRM contributes to improving the performance. A sample of banks working in Australia upon different criteria and the response rate was 32%.
It was found that the distinguished abilities to apply CRM lead to the improvement of performance.
Blery, Batistatos, Papastratou, Perifanos, Retsina and Remoundaki,(2006) researched on Service quality and customer retention in mobile telephony. Major objective of the study was to identify the in?uence of service quality on customer loyalty in the Greek mobile telephony. Survey research was conducted and mobile telephony users were personally interviewed. Valid sample of 180 was declared.
The research confirmed that there are relationships between service quality and customers’ repurchase intention in mobile telephony.
Verhoef (2003) conducted research on Understanding the effect of customer relationship management efforts on customer retention and customer share development. The objective of the research was to study the scope of CRM’s effect on both customer retention and the growth of customer share. Data were collected on two stage: In the first stage, data was collected by telephone from a random sample of 6525 customers. The data was acquired from 2300 customers with response rate of almost 35% and in the second stage; data was collected from a sample of 1986 and data was acquired from 1128 customers with response rate of almost 56%.
The research concluded that both customers’ desire to extend his/her relationship with the institution and his reliance on the customer-loyalty programs positively affect customer retention and the growth of the customer’s share.
Table 1.1 Empirical Reviews
Source Objective Methodology Major Findings
CK, 2016 – to increase the understanding of customer retention by investigating a service company
– to improve their customer retention through customer relationship management
– qualitative and semi-structured research – to be able to attract and keep customers by increasing the customer retention rate, companies have adopted a proactive approach devoting time and resources to stay in touch with their customers.
Lui (2013) -to find whether CRM have a positive impact on the customer loyalty in traditional banking? -deductive approach and mono-method quantitative,
-questionnaire survey though cross-sectional.
-valid sample 84
CRM has a positive impact on the customer loyalty in traditional banking and loyalty is an important factor to increase the financial performance of the companies and avoid customers switching to other competitors.
Coltman (2007) -identifying the extent to which CRM contributes to improving the performance. -a sample of banks working in Australia upon different criteria The response rate was 32%. -the distinguished abilities to apply CRM lead to the improvement of performance
Blery, Batistatos, Papastratou , Perifanos, Retsina ; Remoundaki,(2006) -to identify the in?uence of service quality on customer loyalty in the Greek mobile telephony sector. – survey research, and 180 mobile telephony users were personally interviewed – there are relationships between service quality and customers’ repurchase intention in mobile telephony
Verhoef, (2003) -to study the scope of CRM’s effect on both customer retention and the growth of customer share. -Data were collected on two stage:
In the first stage, data was collected by telephone from a random sample of 6525 customers. The data was acquired from 2300 customers with response rate of almost 35% In the second stage; data was collected from a sample of 1986 and data was acquired from 1128 customers with response rate of almost 56% -Both customer’s desire to extend his/her relationship with the institution and his reliance on the customer-loyalty programs positively affect customer retention and the growth of the customer’s share
1.6 Research MethodologyThe basic objective of the study is to investigate the factors used by different mobile shops and repair centers in order to retain their customers.
1.6.1 Research Design and PlanThe research design for this project will be descriptive and a casual study. The descriptive research design is adopted for fact-finding and searching adequate information about tools used by different mobile shops to retain their loyal customers.
Data will be collected through primary sources of selected mobile shops and repair centers. Among the selected mobile shops, questionnaires will be given targeting the owner of those shops. Sample sizes of 33 respondents will be used in total. The questionnaires will be then coded in SPSS for the findings and interpretations.
1.6.2 Population and Sample SizeThe populations of the survey are the owners and employees of the mobile shops who provide service to the customers. At present there are many mobile shops operating in Newraod and among them 33 shops are chosen at random area.
1.6.3 Data Collection ProceduresThis study will be basically based on primary sources of data. The questionnaire and interview survey will be conducted. The survey will be basically designed to understand the opinions of respondents as how they perceive the factors determining the price strategy of the selected beauty parlours of Samakhusi area.
1.6.4 Analytical ToolCollected data will be managed, analyzed and presented in proper tables and formats. These data will then be interpreted and explained in a necessary manner. 5-point Likert scale has been used and data have been analyzed by using various tools of SPSS the calculated values and tables will be derive.
Following major analytical tools are adopted to analyze the data obtained in this study.
Mean and standard deviation are used to describe the data under the study.
Mean. Mean is the arithmetic average of a range of values or quantities computed by dividing the total of all values by the number of values. In other word, the mean is the average that adds up all the numbers and then divide by the number of numbers. In this study, mean is calculated to find out the average of the responses given by the respondents regarding to the different variables in likert scale question. Mean value of the responses given by the respondents in likert scale question is calculated on all samples of female. It can be obtained by using formula mentioned below:
?x= Sum of observation
N= Number of observation
Standard Deviation. Standard deviation is the measure of dispersion, that is used to quantify the amount of variation or dispersion of a set of data values. It can be defined as the positive square root of variance. A low standard deviation indicates that the data tends to be close to the mean of the set, while a high standard deviation indicates that the data points are spread out over a wider range of values. In this study, standard deviation is calculated for the responses provided in likert scale for all samples and for female. Standard deviation can be calculated by using the formula mentioned below:
? = Standard Deviation
?X-X?2 = Sum of square of difference of data and mean
N= no. of data
Independent Sample t-test. The independent samples t-test compares the means of two independent groups in order to determine whether there is statistical evidence that the associated population means are significantly different. Independent sample t test is a parametric test. In this study independent sample t test is carried out to compare the mean difference the variables.CHAPTER IIDATA PRESENTATION AND ANALYSISThe objective of this research was to develop a reliable and valid scale to examine the factors influencing customer relationship management of mobile shops and repair. The study represents both descriptive study as well as statistical analysis to analyze the collected data.
2.1 Respondent profileThis part includes the detail of the respondent i.e. owners and customers of beauty parlours. It includes the demographic part of the research.
2.1.1 Responses by Age
Table 2.1 Ages of Respondents
Age Frequency Percent
20-30 18 54.5
30-40 12 36.4
Above 40 3 9.1
Total 33 100
Table 2.1 represents the age classification of the respondents. As the survey was conducted in a single community, the results are as shown above. We found out that majority of the respondents fall under the category of age 20-30, which is 54.5 percent. Respondents with in age group of 30-40 years make 36.4 percent. And the respondents with age group above 40 make least frequency with 9.1 percent
2.1.2 Responses by GenderTable 2.2 Gender of Respondents
Gender Frequency Percent
Male 25 75.8
Female 8 24.2
Total 33 100
Table 2.2 shows gender of the respondents. Majority of the respondents are male with 75.8 percent. And remaining 24.2 percent are female.
2.1.3 Response by Marital StatusTable 2.3 Marital Status of Respondents
Marital Status Frequency Percent
Married 19 57.8
Unmarried 14 42.5
Total 33 100
Table 2.3 shows that most of the respondents were married. According to the survey, 57.8 percent of the respondents were married. Rest of the respondents constituting of 42.5 percent were unmarried.
Fig 2.1 Educational Qualification of Respondents
Figure 2.1 show that most of the respondents have completed their graduation level, with 54.5 percent. Similarly, 39.4 percent of respondents have completed their high school. And remaining 6.1 percent of respondents have completed their post graduation.
2.2 Descriptive Statistics Analysis
Descriptive statistics is used to describe the basic features of the data in the study. It provides simple summaries about the sample and the measures. Together with simple graphics analysis, it forms the basis of virtually every quantitative analysis of data. It is used to present quantitative descriptions in a manageable form. It helps us to simplify large amounts of data in a sensible way. Each descriptive statistic reduces many data into a simpler summary to draw conclusions about the data. Under descriptive analysis, we are analyzing mean and standard deviation of the collected data.
Mean is the average of the number that is used to measure the central tendency of data Standard deviation is a measure of the dispersion of a set of data from its mean.
2.2.1 Descriptive Analysis of Focus on CustomersThis section explores the focus on customers in order to maintain long term relationship with them through the descriptive analysis. These construct of five different scale items are measured in a 5 point Likert scale: 1- Strongly Disagree to 5- Strongly Agree. Here, a score more than 3 represent the intensity of focus on customers. The opinion of respondents is observed by computing its mean and standard deviation. Mean value gives the result of average condition of respondents on how they feel and standard deviation gives the spread from the average mean of the respondents.
Table 2.4 Descriptive Statistics of Focus on Customers
Code Statement Mean Std. Deviation
FC1 I show sincere interest in solving customers problem 4.48 .508
FC2 Customers are communicated information about new products. 4.48 .508
FC3 I listen to what customers are saying and try to answer appropriately 4.48 .508
FC4 I am always willing to help customers 4.67 .479
Table 2.4 expresses the descriptive statistics of focus on customer in maintain long term relationship with them. Among the four statements the statement, three statements with code FC1 “I show sincere interest in solving customers problem”, FC2 “Customers are communicated information about new products”, and FC3 “I listen to what customers are saying and try to answer appropriately”, have equal mean and standard deviation which is 4.48 and .508 respectively. . And the code FC4 “I am always willing to help customers.” scored the mean 4.67 with a standard deviation of 0.497. It means that mobile shops and repair centers give special attention to customers.
2.2.2 Descriptive Analysis of Service QualityThis section explores the quality of service in order to maintain long term relationship with the customers through the descriptive analysis. These construct of five different scale items are measured in a 5 point likert scale: 1- Strongly Disagree to 5- Strongly Agree. Here, a score more than 3 represent the intensity of service quality. The opinion of respondents is observed by computing its mean and standard deviation. Mean value gives the result of average condition of respondents on how they feel and standard deviation gives the spread from the average mean of the respondents.
Table 2.5 Descriptive Statistics of Service Quality
Code Statements Mean Std. Deviation
SQ1 I provide services at the promised time 4.21 .415
SQ2 I give prompt service to customers. 4.48 .508
SQ3 I have enough knowledge and skills to serve our customers. 4.39 .556
SQ4 I would recommend our services and mobile phones to our nearer and dearer 4.67 .479
Table 2.5 expresses the descriptive statistics of quality of service while serving customers. Among the four statements the statement code SQ1 “I provide services at the promised time.” has mean 4.21with standard deviation of 0.415. Similarly, code SQ2 “I give prompt service to customers” scored mean 4.48 with standard deviation of 0.508. In the same way the code SQ3 “I have enough knowledge and skills to serve our customers.” scored the mean 4.39 with a standard deviation of 0.556. And the statement with code SQ4 “I would recommend our services and mobile phones to our nearer and dearer” has mean 4.67 with standard deviation of .479. It means that mobile shops and repair centers provide quality service to their customers.
2.2.3 Descriptive Analysis of Availability of EquipmentThis section explains availability of equipments with mobile shops and repair centers in order to provide services to customers through the descriptive analysis. These construct of five different scale items are measured in a 5 point likert scale: 1- Strongly Disagree to 5- Strongly Agree. Here, a score more than 3 represent the intensity of availability of equipments to serve the customers. The opinion of respondents is observed by computing its mean and standard deviation. Mean value gives the result of average condition of respondents on how they feel and standard deviation gives the spread from the average mean of the respondents.
Table 2.6 Descriptive Statistics of Availability of Equipment
Code Statements Mean Std. Deviation
AE1 I have high quality accessories for serving the customers. 4.03 .467
AE2 …………….. 4.06 .429
Table 2.6 expresses the descriptive statistics of availability of equipments to serve the customers. Among the two statements, the statement code AE1 “I have high quality accessories for serving the customers.” has mean 4.03 with standard deviation of 0.467. Similarly, code AE2 “………….” scored mean 4.06 with standard deviation of 0.429. It means that mobile shops and repair centers have access to advanced equipments to provide services to customers.
2.2.4 Descriptive Analysis of PriceThis section explores prices charged and discount provided in order to retain customers through the descriptive analysis. These construct of five different scale items are measured in a 5 point likert scale: 1- Strongly Disagree to 5- Strongly Agree. Here, a score more than 3 represent the intensity of price on providing services. The opinion of respondents is observed by computing its mean and standard deviation. Mean value gives the result of average condition of respondents on how they feel and standard deviation gives the spread from the average mean of the respondents.
Table 2.8 Descriptive Statistics of Price
Code Statement Mean Std. Deviation
PR1 The price charged for the mobile phones and repairing service is reasonable. 4.12 .415
PR2 I provide discounts to retain our loyal customers. 4.27 .517
PR3 I am not looking short term earning to maintain customer relations in the long run. 4.61 .493
Table 2.8 expresses the descriptive statistics of prices charged and discount provided in order to retain customers. Among the three statements the statement code PR1 “The price charged for the mobile phones and repairing service is reasonable.” has mean 4.12 with standard deviation of 0.415. Similarly, code PR2 “I provide discounts to retain our loyal customers.” scored mean 4.27 with standard deviation of 0.517. And the code PR3″ I am not looking short term earning to maintain customer relations in the long run.” This implies that most of the mobile shops in Newroad area charge reasonable price and also provide discounts to their loyal customers.
2.2.5 Summary of Descriptive Statistical AnalysisOverall summary of the descriptive analysis of various variables are explained below in the table:
Table 2.9 Summary of Descriptive Statistics
Mean Std. Deviation
Focus on customer 4.5303 .31720
Service quality 4.3818 .31766
Availability of equipments 4.0455 .40241
Price 4.3333 .33333
Table 2.9 shows that the mean of “Focus on customer” is 4.5303with a standard deviation of 0.31720. Similarly, “Service quality” has mean of 4.3818 with standard deviation of 0.31766. Likewise, mean of “Availability of equipments” is 4.0455 with standard deviation of 0.40241. And “Price” has mean of 4.3333 with standard deviation of .3333. This shows mobile shops and repair centers give priority to needs and demands of customers in order to maintain long term relationship with them.
2.3 Inferential Statistics AnalysisInferential Statistics is used to make statistical inferences, that is, to draw conclusions about the data. For instance, we use inferential statistics to try to infer from the sample data what the population might think.
2.3.1 One Sample t-testOne sample t-test is a statistical procedure used to determine whether a sample of observations could have been generated by a process with a specific mean. One sample t-test is used to test relationships between independent variables.
Table 2.10 Mean and Standard Deviation of Variables
N Mean Std. Deviation Std. Error Mean
Focus on customer 33 4.5303 .31720 .05522
Service quality 33 4.3818 .31766 .05530
Availability of equipments 33 4.0455 .40241 .07005
Price 33 4.3333 .33333 .05803
Table 2.11 One Sample T-Test
Test Value = 0
t dfSig. (2-tailed) Mean Difference 95% Confidence Interval of the Difference
Focus on Customer 82.045 32 .000 4.53030 4.4178 4.6428
Service Quality 79.240 32 .000 4.38182 4.2692 4.4945
Availability of Equipments 57.751 32 .000 4.04545 3.9028 4.1881
Price 74.679 32 .000 4.33333 4.2151 4.4515
Table 2.11 showed that p value of all the variables is less than 0.005. This shows that these variables have significant impact on customer relationship management practiced by mobile shops and repair centers of Newroad area
2.4 Major FindingsThe basic objective of the study is to explain the impact of independent variables: focus on customers, service quality, availability of equipment and price on customer relationship management of mobile shops and repair centers of Newroad area. The descriptive research design has been employed to deal with the various factors that help in maintaining long term relation with the customers and to retain loyal customers and the primary data is used for analysis which is collected through the structured questionnaires from 33 samples. Descriptive research includes surveys and fact-finding enquiries of different kinds. In this study, data was analyzed using mean, standard deviation, and one sample t-test. The major findings of the study are summarized as below:
This study found focus on customers as most important factor, service quality as a second important factor, price as third important and availability of equipment as fourth important factor that helps in customer relationship management of mobile shops and repair centers of Newroad area.
Most of the respondents are male and hold 55.8 percent of the survey. And the remaining of 24.2 percent of respondents is female.
According to the survey, 57.8 percent of the respondents are single, and remaining 42.5 percent are married.
54.5 percent of the respondents fall under the category of age between 20 and 30. Respondents with in age group of 30-40 are 36.4 percent. Respondents who belong to the age group above 40 years have the least frequency.
Most of the respondents have completed their graduation as it holds54.5 percent. Similarly, 36.4 percent of respondents have completed their high school level. And remaining 6.9 percent of respondents have completed their post graduation.
There is significant difference in focus on customers as the p-value is less than 0.05.
There is significant difference in service quality as p-value is less than 0.05.
There is significant difference in availability of equipments as p-value is less than 0.05.
There is significant difference in price as p-value is less than 0.05.
The mean of “Focus on customer” is 4.5303 with a standard deviation of 0.31720. Similarly, “Service quality” has mean of 4.3818 with standard deviation of 0.31766. Likewise, mean of “Availability of equipments” is 4.0455 with standard deviation of 0.40241. And “Price” has mean of 4.3333 with standard deviation of .3333. This shows mobile shops and repair centers give priority to needs and demands of customers in order to maintain long term relationship with them.
CHAPTER IIICONCLUSION AND ACTION IMPLICATIONS
REFERENCEBlery, E. ; Batistatos, N. ;Papastratou , E. ; Perifanos, I. ; Retsina , M ; Remoundaki, G., (2006). Service quality and customer retention in mobile telephony. Lahti University of Applied Sciences2(12), 145-172
Bradford(2005) Customer Relationship Management,GBR: Emerald Group Publishing Ltd. Retrieved from http://www.ebrary.comCK (2016) , Customer relationship management and customer retention in the Amica Restaurant at Valmet Oy Ltd, Jamak University of Applied Science 2(12). 47-89
Coltamn, T. (2007). Customer retention strategies in retail with reference to Reliance fresh and easy day, Customer Relationship management, Retrieved from https://www.scribd.com/document/52460057/Tim-ColtmanLiu, E. (2013). Customer relationship management in the traditional retail banks in France, Dublin Business School and Liverpool John Moores’ University 3(12), 267-325.Morgan, R.. & Hunt, S. (1994). The commitment-trust theory of relationship marketing.. Journal of Marketing. 3(11). 132-176.Verhoef, P.C. (2003). Understanding the effect of customer relationship management efforts on customer retention and customer share development. Journal of Marketing 67, 30–45.
Zolkiewski ,J. & Turnbull, P. (2007), Do relationship portfolios and networks provide the key to successful relationship management?, Journal of Business Industrial Marketing,17( 7). 34-87
APPENDICESCustomer Relationship Management of Mobile Shops and Repair Center
I am Birat Thapa, a student studying BBA 7th semester at Shanker Dev Campus. As per the requirement of my course completion, I am conducting a research on the topic “Customer Relationship Management of Mobile Shops and Repair Center”. I kindly request you to fill the questionnaire by giving your honest opinions and experiences. I assure you that all the information provided will be kept confidential and will be used solely as the primary source of data in my research. Thank you for your cooperation.
Please put a tick (?) mark on the specific argument level as mentioned below: (For your reference, 1 =Strongly Disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, 5 = Strongly Agree.
Focus on customer
Code Statements 55 44 33 22 11
FFC1 I show sincere interest in solving customers problems FC2 Customers are communicated information about new products. FC3 I listen to what customers are saying and try to answer appropriately FC4 I am always willing to help customers Service quality
Code Statements 5 44 33 2 1
SQ1 I provide services at the promised time SQ2 I give prompt service to customers. SQ3 I have enough knowledge and skills to serve our customers. SQ4 I would recommend our services and mobile phones to our nearer and dearer Availability of equipments
Code Statements 5 4 3 2 11
AE1 I have high quality accessories for serving the customers. AE2 I have latest technology enhancing our service in timely service delivery Price
Code Statements 5 4 3 2 1
PR1 The price charged for the mobile phones and repairing service is reasonable. PR2 I provide discounts to retain our loyal customers. PR3 I am not looking short term earning to maintain customer relations in the long run Thank you for your response.