IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT ON NON-CONSUMER CUSTOMER BUYING BEHAVIOR
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CHAPTER ONE
INTRODUCTION
1.1 Background of the Research
All organizations, and especially financial institutions, have been influenced to some degree by current market conditions. In order to achieve their objectives, corporations now not only seek to satisfy their clients, but also to do it more efficiently and effectively than their competitors. Maintaining customer satisfaction and emphasizing a client-centric strategy in organizational and marketing tactics is a company’s primary objective. The importance of client happiness cannot be discounted, as satisfied consumers serve as free advertisement for financial institutions. According to the business’s strategies, events, and processes, the client must be in the center. In actuality, it is simpler and more profitable to sell to existing clients than to acquire new ones. Financial institutions are developing methods to assure customer pleasure and retention; thus, their personnel must be more customer- and service-oriented in order to satisfy clients. Customer relationship management (CRM) is a strategy for managing a company’s contacts with customers, clients, and sales prospects in order to meet a financial institution’s objectives, such as customer satisfaction. Utilizing technology to organize, automate, and coordinate corporate activities. CRM is intended to increase profitability, income, and customer happiness. To achieve CRM, many firms employ a set of tools, technology, and procedures that support the customer connection and boost sales. Consequently, CRM is a strategic business and process issue rather than a technical one. CRM is a strategy for managing a company’s interactions with customers, clients, and sales prospects. (Long, et. al, 2013)
According to Bowen and Chen (2001), having satisfied consumers is insufficient. This is because client satisfaction must directly affect consumer loyalty and satisfaction. Sivadas and BarkerPrewitt (2000) note that there is a growing consensus that the ultimate goal of measuring customer happiness should be customer loyalty. Many firms classify customer satisfaction assessment as “marketing intelligence” as opposed to utilizing it as a management tool to establish customer service quality improvement programs and increase profits. (Linnell, 2009)
Through CRM, businesses hope to strengthen their relationships with existing customers and attract new prospects in an effort to influence their purchasing decisions, boost customer happiness and loyalty, and enhance their sales volumes and profitability. The business processes must be supported by a CRM system that enables a unified view of both the customer and the organization. A CRM system facilitates the collecting and analysis of client data, resulting in more efficient customer relationship management. The three key types of CRM capabilities are marketing automation, sales force automation, and customer care & support (Persson, 2004).
Shukla (2010), emphasizing the importance for marketing research, says that a substantial proportion of firms fail to meet the superior demands of their customers because their vision of what customers want is far from reality. “It is not because they do not care about the demands of their clients; rather, they are pursuing the wrong goal with the wrong means.”
1.2 Description of the Problem
Globalization and widespread internet usage have profoundly altered customers’ perceptions of the world. People are more knowledgeable and connected than ever before. Flow of goods and services mixed with large promotions and advertising in various regions of the world tends to present clients with a greater variety of options than ever. On the other hand, experts have identified a number of issues and concerns linked with Customer Relationship Management and its effect on the purchasing behavior of consumer customers. The measurement of the effectiveness of CRM initiatives is one of the issues.
Researchers still lack unanimous answers to several concerns. How can the impact of various CRM initiatives on clients who are not consumers be measured? How can the success of CRM in a company be evaluated? Numerous businesses, particularly in the industrialized world, have used CRM. However, studies indicate that measuring the success and impact of CRM on a company’s consumers’ buying behavior has become the most significant challenge.
The difficulty of measuring the efficiency of CRM in influencing the buying behavior of non-consumer customers is measurable; yet, failed CRM implementations may result in decreasing customer satisfaction and loyalty. This implies a rise in defections and a decline in loyalty.
1.3 Objective of the Research
This study’s primary objective is to determine the effect of CRM on the behavior of non-consumer customers. Specifically, the study aims to:
Determine the influence of CRM on the purchasing behavior of non-consumer customers
2. To research the elements that affect the purchasing decisions of non-consumer customers
Examine the influence of CRM on enterprises
1.4 Investigative Question
Does CRM have any effect on the purchasing behavior of non-consumer customers?
What variables influence the purchasing decisions of customers who are not consumers?
What effect does CRM have on an organization?
1.5 Scientific Hypothesis
CRM has no effect on the purchasing behavior of non-consumer customers.
Hello: CRM has an effect on the purchasing behavior of non-consumer customers.
1.6 Importance of the Research
Although many studies have been conducted on the influence of CRM on the purchasing behavior of consumers, this study takes a different approach by evaluating the impact of CRM on the purchasing behavior of “Non Consumer Customers.” The customers are those who ultimately utilize or consume the merchandise. These individuals are able to determine how something tastes. On the other side, non-consumer customers may have no understanding how a product is utilized.
This study is intended to contribute to the current literature and aid in the dissemination of knowledge regarding CRM and its influence on the purchasing behavior of non-consumer customers in Nigeria. The research provides additional evidence that CRM can positively influence the purchasing behavior of non-consumer customers.
Lastly, this research will contribute to the CRM literature and act as a guide and reference for future studies on the same topic.
1.7 Scope of the Research
This research will be conducted in the state of Lagos in the southwestern portion of Nigeria, and will also include a literature analysis on CRM and non-consumer customer behavior.
1.8 Limitations of the Research
During the course of study, obtaining funding for general research will be a struggle. In addition, respondents may not be able to or want to submit the questionnaires provided to them.
However, it is anticipated that these limitations will be overcome by maximizing the use of available resources and devoting additional time to research. Therefore, it is strongly expected that despite these constraints, their impact on this research report will be small, allowing the study to achieve its purpose and significance.
1.9 Explanation of Terms
CRM is a method for managing a company’s interactions with present and prospective clients. It improves business relationships with customers by analyzing data about their past interactions with a company, focusing on customer retention and ultimately generating sales growth.
IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT ON NON-CONSUMER CUSTOMER BUYING BEHAVIOR
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