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Investigate the nature and sources of power

Primary power is a resolution conventionality found in nature that has not been subjected to any conversion or translation narrative. It is resolution contained in inexperienced fuels, and other forms of power contain as input to a system (Pearce and Robinson, 2005). Primary power can be non-renewable or renewable. The concept of primitive power is used in Life statistics in the compilation of energy estimate, as well as in the field of energetic. In energetic, a primitive vigour origin refers to the power forms demand by the power sector to produce the supply of power carriers used by human companionship. Primary strength sources are transformed in action transmutation narrative to more adapted forms of energy such as electrical energy, refined fuels, or synthetic fuels such as E949 breeze. (Robinson et al., 2005) Many of the environmental groups require a justifiably vigorous suit against our steadily increasing claim for electricity to run such gimcracks as powered toothbrushes. Still and all, it will likely be some period before we united limit our waste of electrical power to essentials only which cause us right back in the great central of the problem. Because natural disasters such as hurricanes, earthquakes, and overflowing commonly cause utility grid failures, respective attention is paid in this booklet to power spring combined with this disaster example (Thompson, 2002). It’s important to acknowledge, however, that natural disasters are by no import the only mainspring of power outages. Reliance on sophisticated mega engender and high-skill transmission lines disgraceful that when outages occur, they often operate a correspondingly ample geographical extent. Fossil-fuel-powered generators are, however, unavoidable portion of furnishing for junction large-scatter emergency power necessarily in such places as sewer and weaken facilities, hospitals, and emergency operations pivot (Tsiakkiros, 2002).

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Concept of Entrepreneurship

An entrepreneur is one who organizes a novel transaction venture in the hopes of from a profit. Entrepreneurship is the outgrowth of being an entrepreneur, of collection and allocating the resources financial, creative, managerial, or technological inevitable for a new venture’s succession. One engages in entrepreneurship when one enters to design an organization that uses different contrivance in a struggle to take mastery of the afresh found convenience (Capron and Glazer, 2001). It usually involves hard fabric, long hours, and, usually, the feeling of significant financial recompense. More importantly, entrepreneurship is characterized by creative solutions to old or overlooked problems; inventiveness and innovation are the entrepreneur’s supply in trade. By taking a new look at difficult situations the entrepreneur discerns an occasion where others might have seen an inactive conclusion.
Successful entrepreneurship depends on many factors (Kotler, 2008). Of primary importance is a devoted, talented, creative entrepreneur. The one who has the ideas, the energy, and the vision to cause a new business is the cornerstone to any start-up. But the individual must have free access to a sort of important resort in order to make the unworn venture more than just a useful idea. In most instances, the entrepreneur also needs to put together a swarm of talented, veteran individuals to serve control the new venture’s operations. Entrepreneurship also rest on paroxysm to capital, whether it be human, technological. Many business people suppose that entrepreneurs have a personality that is separate than those of normal companions (Cooper, 2000).

Market Research Report/ Marketing Plan

1.      Executive summery

This research was conducted by the Mr. Khurram Abbas the director of ABDI Consultancy Limited with the following aims and objectives.

To identify the potential of Marketing Consultancy business

To identify the real need/ importance of Marketing Consultancy in small and medium business companies

To disclose the Marketing Consultancy essential services

The researcher used the qualitative research method because through this method the values, behaviour, experiences can be found out by designing questionnaires and distributing among samples. The researcher used random sampling technique to select the samples and after gathering data the results were recorded in the table forms and after that pie, bar charts and ratios were calculated to present and understand the results. And it was concluded that all the services offered by the ABDI Consultancy Limited are of importance and companies are waiting for the company that will offer these services under single roof.

2.      Introduction

Marketing consultancy is a growing business in which marketing consultants work closely with the client companies to create and implement marketing strategies. These marketing strategies are based on the nature of client’s business and their offered products and services. The marketing consultant create marketing plan, determine the marketing message for targeted customers and identify the effective marketing mix (product, price, placement and promotion, people), to achieve the organizational objectives. Marketing consultants follow the plan throughout and execute the plan by implementing the designed strategy. Marketing Consultant monitors the results and ensures that the client’s company is achieving the expected outcomes. ABDI Consultancy Limited is offering marketing consultancy services in London United Kingdom. Mr. Khurram Abbas is the director and owner of the company. Mr. Khurram Abbas will also play his role as Marketing Consultant and will perform the following tasks.

Identify the client’s requirements

Conduct the market research    

Design the research objectives and select the best research methodology

Discuss the aims and objectives with clients and design the surveys and questionnaires to conduct the research

Will record the outcomes in appropriate method and will present the results to clients

After that will execute the strategy and monitor the whole process and will make necessary changes as per circumstances until the expected outcomes and client’s satisfaction.

3.      Aims and objectives of research

This marketing research has been conducted for ABDI Consultancy Limited to find out the feasibility of this proposed business.

Following are the aims and objectives of this research:

To identify the potential of marketing consultancy business in UK

To identify the importance of marketing consultancy in small and medium businesses

To identify the essential marketing consultancy services

4.      Research Method

Qualitative research method was selected to conduct this research to achieve above said aims and objectives. Qualitative research method is used by the researchers to find out the understanding of human behaviours, their experiences, ideas, beliefs, values and reasons. This research method is used to investigate the why and how of any decision making. Smaller and focused samples are required to conduct the research rather than to involve a large number of samples.

5.      Population and Sampling

Small and medium businesses have been struggling in UK in recent past due to recession but now SME’s are thriving once again. There are about 2462 SMEs registered with London Stock exchange and most of these companies are earning profit. There are about 200 colleges, 40 universities, 5500 restaurants and 100 private clinics/ hospitals conducting their business in the London.  Similarly, there are more than 500 food supplier companies, those manufacture and supply food items in and around London. BBC reports that call centres are the factories for UK in 21st Century. There are about 1800 call centres in UK, from which 400 are in London. All the small and medium size business companies are the targets for the ABDI Consultancy Limited.

The above statistics clearly show that there is a huge market for consultants especially for management and marketing services. ABDI Consultancy Limited has planned to get its share from this market and become a successful marketing consultancy within the span of 2-3 years.

6.      Sampling

The small and medium business companies are the population, and the researcher has selected total sample of 50, the researcher selected about 5 companies from the each sector (educational institutes, IT and security companies, food suppliers, retailers, law firms, private doctors firms, pharmacies, restaurants, hotels, tourism companies etc.). The researcher used random sampling technique to select the samples.

7.      Questionnaire

The researcher has designed the questionnaire by keeping in mind the aims and objectives of this research and by using the appropriate skills. Following questions were designed

Do you believe that marketing activities have positive impact in creating satisfaction among the customers?

Do you believe that through effective marketing strategies/ plans market share can be increased?

Do you believe in marketing activities positive impact on sales and profitability?

Have you ever hires the Marketing Consultancy Services?

Have you ever used any of the following services?

Do you believe that marketing consultancy firms can play their role in increasing market leads and profitability?

Do you believe that the all the following services were provided by the single Company?

Would you prefer to hire Marketing Consultancy that provides all following Services?

Why do you prefer that one company offer all above services?

8.      Findings

After distributing the questionnaires among the samples the researcher find out the following results, recorded in the tables to avoid duplication.

Do you believe that marketing activities have positive impact in creating satisfaction among the customers?

Sr. #YesNo
Total437

Do you believe that through effective marketing strategies/ plans market share can be increased?

Sr. #YesNo
1446

Do you believe in marketing activities have positive impact on sales and profitability?

Sr. #YesNo
1428

Have you ever hire the Marketing Consultancy Services?

Sr. #YesNo
1437

Have you ever used any of the following services?

(Please tick the services those you used)

Sr. #ServicesYesNo
1On site Audits455
2Service benchmarking473
3KPI measurement464
4Industry benchmarking446
5Mystery shopping464
6Call centre review455
7Social media research446
8Customer studies482
9Life time value analysis464
10Competitor benchmarking455

Do you believe that marketing consultancy firms can play their role in increasing market leads and profitability?

 YesNo
Total455

Do you believe that the all the following services were provided by the single Company?

On site Audits

Service benchmarking

KPI measurement

Industry benchmarking

Mystery shopping

Call centre review

Social media research

Life time value analysis

Competitors benchmarking

RespondentsYesNo
Total842

Would you prefer to hire Marketing Consultancy that provides all following Services?

On site Audits

Service benchmarking

KPI measurement

Industry benchmarking

Mystery shopping

Call centre review

Social media research

Life time value analysis

Competitors benchmarking

Sr. #YesNo
1455

Why do you prefer that one company offer all above services?

(Please tick the appropriate reason/ reasons)

Save time

Save money

To avoid hassle

Other………..

Sr. #ReasonYesNo
1Save time455
2Save money455
3To avoid Hassle437
4Other…NO……..500

9.      Analysis and interpretation

After recording the results in table format the researcher has used

Pie charts

Bar charts

Ratios

To make analysis and interpret the results, all the charts are given below.

Do you believe that marketing activities have positive impact in creating satisfaction among the customers?

Sr. #YesNo
Total437

As the pie chart shows that 86% respondents have responded that marketing activities play their role in creating satisfaction among the customers. Whereas only 7% have been stated that they do not believe in marketing activities have positive impact in creating satisfaction among the customers. So the majority have believe that there is a relationship between customer’s satisfaction and marketing activities.

Do you believe that through effective marketing strategies/ plans market share can be increased?

Sr. #YesNo
1446

As the result showed that 88% of the respondents have responded that through marketing plans and strategies market share can be increased. Only 6% have been responded that marketing share could not be increased through effective marketing plans and strategies.

Do you believe in marketing activities positive impact on sales and profitability?

Sr. #YesNo
1428

As the chart shows that 84% respondents have believe in that sales and profitability have a link with marketing activities, it means that there is a link between marketing activities and company profitability. Whereas only 16% have responded that there is no marketing activities impact on sales and profitability.

Have you ever hire the Marketing Consultancy Services?

Sr. #YesNo
1446

Through this question the researcher came to know that 80% of the companies are using the marketing consultancy services and are benefited by them. This shows the importance of marketing consultancy services in the business organizations. 20% of the respondents have been responded that they are not using marketing consultancies.

Have you ever used any of the following services?

(Please tick the services those you used)

Sr. #ServicesYesNo
1On site Audits455
2Service benchmarking473
3KPI measurement464
4Industry benchmarking446
5Mystery shopping464
6Call centre review455
7Social media research446
8Customer studies482
9Life time value analysis464
10Competitor benchmarking455

The researcher has designed the above question to understand the importance of services being used by the companies, and after gathering results it is found that majority of the respondents are using all the above stated services significantly. More than 90% are using the above stated services and nominal respondents are not using these services it is due to their business nature or lack of information. For example life time value analysis service is used by the 92% and only 8% are not using this service, similarly mystery shopping service is used by the 92% of the business companies and only 8% are not using this service and customer studies service is used by the 96% of the business companies and only 4% are not using this services.

Do you believe that the all the following services were provided by the single Company?

On site Audits, Service benchmarking

KPI measurement

Industry benchmarking

Mystery shopping

Call centre review

Social media research

Life time value analysis

Competitors benchmarking

Sr. #YesNo
1842

84% of the respondents have been responded that no, there is still no marketing consultancy company that is offering all these services under single roof. Only 16% have responded that there are some companies those are offering above stated services under single roof. It means that the opportunity is available for the company that can provide all the above stated services under single roof. And its growth chances are high of they pay attention on the quality and price.

Do you believe that marketing consultancy firm (those offer all these services) can play their role in increasing market leads and profitability?

On site Audits

Service benchmarking

KPI measurement

Industry benchmarking

Mystery shopping

Call centre review

Social media research

Life time value analysis

Competitors benchmarking

RespondentsYesNo
Total455

All the respondents responded that if a company can offer all the above stated services they can be benefited, they can be benefited by increasing their market share and profitability. 90% respondents are agreed. 10% respondents are not agreed with the statement. It means that any new company that is going to offer these services under one roof have the opportunity to start this business.

Why do you prefer that one company offer all above services?

(Please tick the appropriate reason/ reasons)

Save time

Save money

To avoid hassle

Other………..

Sr. #ReasonYesNo
1Save time455
2Save money455
3To avoid Hassle500
4Other…NO……..500

As the chart showed that the majority of the respondents want to save time, money and avoid the hassle, and there is no another reason. In order to save time, money and to avoid hassle people are looking for the marketing consultancy company that offer all the services under single roof.

Are you ready to hire Marketing Consultancy that provides all following high quality of Services at reasonable price?

On site Audits

Service benchmarking

KPI measurement

Industry benchmarking

Mystery shopping

Call centre review

Social media research

Life time value analysis

Competitors benchmarking

Sr. #YesNo
1419

82% respondents have been responded that they are ready to hire the company that offer all the services at high quality but at reasonable price. Only 18% have been responded that, they are not willing to hire marketing consultancy that offers all the services at reasonable price.

10.    Conclusion

Every organization has aims and objectives, and the main objective of business organization is to generate more and more revenue in order to get more profit and to make business growth. So for earning more money it is important to identify the customer’s needs and then after providing them products and services as per their needs, satisfaction and loyalty can be created. And in this way organizations can retain old clients and can attract new clients from the market.

It has been proved that the majority of the respondents have belief in that through marketing activities, satisfaction can be created among the clients. Majority of the respondents have been responded that there is a link between marketing strategies and market share. If the marketing strategies are appropriate then the company can increase the market share through implementing the marketing plan. Majority of the respondents have believe that sales and profitability have the link with marketing activities, if the marketing plans and strategies are appropriate the companies can earn more money. It is concluded that majority of the business firms are using the marketing consultancy services to overcome their marketing problems. This shows also the interest of business firms in marketing consultancy business operation and its demand now days. 

Most of the companies are using these services (On site Audits, Service benchmarking, KPI measurement, Industry benchmarking, Mystery shopping, Call centre review, Social media research, Life time value analysis and Competitors benchmarking) offered by the ABDI Consultancy Limited, and one interesting thing is that no one company is offering these all services under one roof, ABDI Consultancy Limited is the first one company going to offer all these services under one roof at reasonable price to its client companies. All respondents have been responded that they will hire the company that will provide all the services (stated above) because the respondents want to save their time, money and avoid to hassle.

All the respondents have their interest in the marketing consultancy firm that provide all the services (On site Audits, Service benchmarking, KPI measurement, Industry benchmarking, Mystery shopping, Call centre review, Social media research, Life time value analysis and Competitors benchmarking) because they have believe in that through these services their market share and profitability will be increased as they have already the experience. And still no company is offering these all services under one roof and business owners want to save their time and money and avoid the hassle that’s why they want a company that offer them all these services at reasonable price. It means that ABDI Consultancy Limited has the opportunity to attract new clients from the market and can start its business positively.

11.    Appendices

11.1   Questionnaire

Do you believe that marketing activities have positive impact in creating satisfaction among the customers?

Sr. #YesNo
   

Do you believe that through effective marketing strategies/ plans market share can be increased?

Sr. #YesNo
   

Do you believe in marketing activities have positive impact on sales and profitability?

Sr. #YesNo
   

Have you ever hire the Marketing Consultancy Services?

Sr. #YesNo
   

Have you ever used any of the following services?

(Please tick the services those you used)

Sr. #ServicesYesNo
1On site Audits  
2Service benchmarking  
3KPI measurement  
4Industry benchmarking  
5Mystery shopping  
6Call centre review  
7Social media research  
8Customer studies  
9Life time value analysis  
10Competitor benchmarking  

Do you believe that marketing consultancy firms can play their role in increasing market leads and profitability?

 YesNo
Total  

Do you believe that the all the following services were provided by the single Company?

On site Audits

Service benchmarking

KPI measurement

Industry benchmarking

Mystery shopping

Call centre review

Social media research

Life time value analysis

Competitors benchmarking

RespondentsYesNo
Total  

Would you prefer to hire Marketing Consultancy that provides all following Services?

On site Audits

Service benchmarking

KPI measurement

Industry benchmarking

Mystery shopping

Call centre review

Social media research

Life time value analysis

Competitors benchmarking

Sr. #YesNo
   

Why do you prefer that one company offer all above services?

(Please tick the appropriate reason/ reasons)

Save time

Save money

To avoid hassle

Other………..

Sr. #ReasonYesNo
1Save time  
2Save money  
3To avoid Hassle  
4Other…NO……..  

An investigation into the Luxury products market in relation to branding and motivation

 in relation to branding and motivation

1. Introduction

1.1 Background, Scope and Context of the research 

In 2012, the luxury branded products’ market faced a substantial growth of 10% in revenue worldwide, and it is expected to continue to grow on an average of 5-6 percent throughout 2015 with the expectation of continual rapid growth amongst leather goods and accessories compared to other categories such as apparel (Bain, 2013). The total number of luxury products’ consumers has become more than three times as much in less than 20 years, despite the mature state of luxury markets in some Western European countries it was reported that the great majority of the new consumers to this market are from the emerging countries such as China (The Economist, 2014).

1.2 Rationale

After thorough reviewing of the research literature related to the cultural impact and female consumers’ behavior towards the luxury fashion products, it was found that there was a lack of reliable and vigor contributions in terms of the quality of the publisher/journal and the ABS  article ratings on the population of interest (Middle East, Arab countries, GCC countries, Kuwait). Therefore, this research proposes the need of analyzing and understanding the consumer behavior’s mentality in this geographical area and aims to present outcomes of value to assist practitioners in the luxury products industry.

1.3 Aim and Objectives

1.3.1 Aim

The main aim of this research is to explore the female consumer’s buying behaviour in fashion industry and study the impact of culture on luxury fashion branded product in Kuwait.

The main aim of this research is to study the impact of culture on luxury fashion branded products and to explore the female consumer’s buying behaviour in fashion industry a case study of ….. in Kuwait market.

The overall aim of this research is to explore the purchase motives and the role of culture on the consumption of luxury fashion branded products, in order to present a beneficial understanding of the Kuwaiti female consumer’s luxury buying behaviors.

1.3.2 Objectives

There are following objectives of this research

To find out the importance of marketing department and its role in maximizing sales volume and in achieving organizational objectives

To analyze the importance of consumer behaviour and buying decision process in marketing strategies

To discuss the consumer behaviour models to analyze the consumer buying decision process

To find out the cultural factors and their impacts on consumer buying decision process

How Marketing department can play its effective role in bringing loyalty, satisfaction among the female consumers at…………. Fashion retail store?

To find out the relationship between cultural factors, fashion branded products, buying decision, demographics factors and their impact on buying decision process

To find out the necessary changes in consumer buying decision models to achieve organizational objectives

Which factors should marketing department must consider while making marketing strategies to maximize sales volume in luxury fashion industry at ……. Retail store in Kuwait?

To make recommendations

  • To analyse the theoretical context of branding of luxury goods
  • To investigate luxury product branding and buying behaviour
  • To discuss the relationship between the demographics of age, gender, culture, social class and income
  • To discuss and analyse brand loyalty
  • To discuss motivations for the purchase of luxury fashion brands; personal values, price, product, quality, exclusivity and social status
  • To analyse the impact of emotional behaviour and purchasing of the of luxury brand product: necessity versus desire for luxury products.

1.4 Key questions

Does the manager believe in consumer behavioral impact on the sales of luxury fashion branded products in Kuwait in fashion retail industry?

What are Kuwaiti female consumers’ motivations for the purchase of luxury fashion branded products?

Are the cultural characteristic of the studied area of Kuwait an influence on the resulted behaviour towards the purchase of luxury branded products?

What are the business implications of understanding the buying behavioural, perceptions, expectations, and preferences of female consumers in Kuwaiti and GCC countries?

1.5 Outline Methodology of the research

The dissertation will be carried out through a thorough literature review covering the aim and objectives. There will be primary research in the way of a survey in Kuwait.

1.6 Dissertation Contents/Structure

The dissertation consists of six sections. The first section is the Introduction which contains the background overview, the aim, objectives, questions and outline methodology. The second section is the literature review. This is followed by a methodology section. The next section is section four and contains the presentation of dat from the primary research. The fifth section is the discussion and analysis and the final section the conclusion which includes recommendations

2. Literature Review

2.1 Introduction

2.2 Definition of Branding

2.2.1 The concept of branding

Ever since the history of business came about, the concept of branding has been adopted amongst producers, in order to differentiate their goods from one another (Keller et al., 2008). According to the American Marketing Association (AMA, 2014), “a brand is a “Name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers.”. Another definition for brand is “a distinctive product offering created by the use of a name, symbol, design, packaging, or some combination of these, intended to differentiate it from its competitors” (Jobber and Ellis-Chadwick, 2013, p 308). Despite the wide academic and practitioner contributions in branding literature, a commonly accepted or a standard definition of the term “brand” continues to be unclear (Tynan et al. 2010). In consequence of the multidimensional form of the concept, varied range of definitions and understandings are available (Gabbott and Jevons, 2009).  For that reason, Chernatony and Riley (1998) developed a theory for the “brand construct” through analyzing the definitions of the brand in literature and accordingly came up with twelve main themes that are divided between brand’s tangible elements such as name and logo and brand’s intangible elements such as personality and symbols. Despite some of the downfalls in their framework such as the overlapping of some elements in the themes, Chernatony and Riley (1998) undertook twenty focused interviews with prominent brand consultants on their interpretations of the brand term and were able to categorize the experts’ responses under the twelve themes and eventually proposed the following comprehensive concept of the brand , “as a multidimensional construct, matching a firm’s functional and emotional values with the performance and psychosocial needs of consumers.” However, recent researchers such as Stern (2006) attempted to conceptualize the brand through developing a quadripartite classification scheme using historical analysis technique to the various definitions of the term “brand”, the four main parts of the construct were presented according to:-

  • nature,
  • function
  • locus
  • valence

Gabbott and Jevons (2014) observed that the way the term ‘brand’ is currently defined is influenced by the brand researchers and practitioners’ common cultural understanding which is both contextual and dynamic. They concluded that a standard definition of the term does not and will never exist; instead there will always be a continual progression of frameworks towards a better understanding, and that this diversity of interpretations should be valued.

2.2.2 Definition of the luxury brand

The definition of the word “Luxury” in English language dictionary is presented as a hardly gained pleasure, a condition of excessive comfort or sophistication, and as an unnecessary yet expensive desirable item (Oxford Dictionaries, 2014). The current perception of “luxury” originates from the Latin “Luxuria”, which stands for “excess” the “extras of life” or (Danziger, 2005).  In modern marketing practice, “Luxury” indicates to a particular level of offer that can be available in most types of products or services (Dubois et. al, 2005).  However, in the academic literature, the term “luxury” is usually used to label high-end prestigious brands (Vigneron & Johnson, 2004), or those brands with low practical utility comparing to their price, and have high intangible and circumstantial value comparing to their price too (Nueno and Quelch, 1998).

 Dubois and Czellar (2002) state that, “luxury” and “prestige” are the most commonly used terms to signify brands that have significant intangible value; their research has shown that consumers have different perceptions and expectations for each term which disagrees with the synonymous use of the terms by (1996). Others described luxury brands in somewhat unclear theoretical terms such as “dream value” (Dubois and Paternault, 1995). As per the economists’ perspective, luxury brands are viewed as those products for which demand elevates either in relation with income or in more preponderant proportion than income (Dubois and Duquesne, 1993).

Corresponding to the multiple definitions of ‘luxury brands’ found in the literature, many contributions were dedicated to create frameworks to identify the dimensions of ‘luxury brands’, for instance, Keller (2009) claims that luxury brands have ten characteristics such as the maintaining of premium image, premium pricing, intangible brand associations, and quality.

While other researchers base their study on the following key elements of ‘luxury brands’, (high quality, high price and non-necessary products  and services that are considered as rare, exclusive, prestigious, and authentic and that are associated with high tiers of symbolic and emotional value (Tynan et al. , 2010). On the other hand, Fionda and Moore (2009) claim that the management of ‘luxury fashion brands’ is considered to be complicated and that it demands a constant and comprehensible practice. For that reason, Fionda and Moore (2009) proposed nine main correlated features for luxury fashion brand that are claimed to be essential in the building and sustaining a luxury brand’s offer and will contribute in successful management, some of these features are: brand identity, communications approach, prestige price, and exclusivity.

Furthermore, Miller and Mills (2012) argue that the lack of conformity in the diverse amount of frameworks and approaches of ‘luxury fashion brands’’ dimensions found in literature is not a consequence of the development of the concept, instead it is considered as a sign of persisting confusion in understanding the fundamental construct and associations determining the term. In order to achieve better clarity of the previous term, authors suggested a thorough examining of the related studies to find convergence points within the dimensions of the luxury brand, as well as analyzing their correlations in regards of antecedent and consequences, their research resulted in a precise yet comprehensive measurement model of the luxury brand that consists of the following five main key points (Miller and Mills, 2012):-

  • brand leadership
  • brand innovativeness
  • brand user-fit
  • brand value
  • willingness to pay a premium price

2.3 Luxury product branding and buying behavior

2.4 The relationship between the demographics of age, gender, culture, social class and income; Demographics, culture, and luxury consumption

2.4.1 Overview

The four most frequently used demographic factors in local and international consumer segmentation are age, gender, income, and education level (Cleveland et al., 2011) where each of the factors has direct relation to buying decision (Blythe, 2013).

2.4.2 Age

In regards to the age variable, a study showed that young consumers in six of the eight countries where the research was conducted had greater tendency to purchase global apparel (Cleveland et al., 2011), and that youth generation is considered the major market for publicly consumed luxury items (Eastman and Liu, 2012). Hauck and Stanforth,(2007) claim that there are significant differences among age groups in terms of their perception of luxury, frequency of buying luxury goods, and the reasons of their luxury purchases. For instance, researchers found that the oldest age groups of customers have a propensity to view more goods and services as luxuries than the youngest group do, and they have the greatest tendency opposing younger groups to purchase traditional luxury items and services such as gold jewelry and first class airline tickets. (Hauck and Stanforth, 2007). Moreover, in Hauck and Stanforth’s (2007) research, the reasons for purchasing luxuries items varied significantly between youngest and oldest groups of customers, the youngest group of customer were more likely than the oldest group to purchase luxuries for the following reasons: pleasure, status, emotional satisfaction, self-gift, and impulse buying.

2.4.3 Income

Since luxury products are known to have superior prices comparing to other products, it would be more likely to view income as an influential variable in segmentation (Dubois and Duquesne, 1993). In addition, consumers’ income has strong connection with their product choice, as their income increases they are more able to buy high price luxury goods (De Mooij, 2004), yet a study found that  only three of eight countries where the research was conducted exhibited a positive relationship between household income and luxury products consumption (Cleveland et al., 2011).

2.4.4 Gender

In terms of gender, Cleveland et al. (2011) assert that there are clear differences between genders regarding their luxury shopping behavior, the findings of their study showed that the larger purchase frequency of luxury items was by females, and this result was consistent in seven out of eight countries where the research was conducted. According to Wiedmann et al. (2009), luxury brands’ companies should take into consideration the different attitudes amongst genders, since female consumers asses multiple elements when buying luxury brands as they tend to be more interested in quality, uniqueness and social value of luxury items than men. Stokburger-Sauer and Teichmann (2013) also agree that women tend to show different response from men regarding luxury brands; their research showed that female consumers have a more positive attitude towards luxury brands than males.

2.4.5   Education

In terms of education, Keillor et al. (2001) state that educated consumers irrespective of their background seem to be more open to different cultures which makes them less drawn by the local norms and more interested in the global trends when choosing products. In addition to this, Nwankwo, et al. (2014) found that higher educated consumers seem to be more rational and less impulsive when purchasing luxury products.

2.4.6 Social Class/ socio-cultural factors

Apparently the purchase of luxury branded products does not depend on economic influences only; instead, it is equally influenced by the socio-cultural factors (Dubois and Duquesne 1993). According to Hofstede, culture is considered as “the collective mental programming of the people in an environment. Culture is not a characteristic of individuals; in encompasses a number of people who were conditioned by the same education and life experience” (as cited in De Mooij, 2004). Hennigs, N. et al. (2012) state that differences in cultures frequently result in differences in consumer behavior in countries around the world.  Several previous researches were conducted towards the understanding of cross-cultural segments (e.g., Hofstede, Steenkamp, & Wedel, 1999) though each research had different highlights (Hennigs, N. et al. (2012). Nevertheless, there seems to be an absence of a standard theoretical or empirical approach on the definition of cultural aspects and the overall impact of cultural factors on consumer behavior and its effects for marketing segmentation tactics (Dubois & Duquesne, 1993). On the other hand, in a recent study on ten different countries, Hennigs, N. et al. (2012) found that the motivational influences of luxury branded products consumption are generalizable across the countries and that only the individual perceptions of luxury products vary. In contrast, Bian and Forsythe (2012) believe that the driving forces of luxury brand consumption in western societies differ than eastern ones. In addition, their research results revealed within-country similarities and differences when comparing to other countries (Hennigs, N. et al., 2012). Furthermore, Dubois and Duquesne (1993) state that the greater positive consumer attitudes towards cultural change and following global trends, the higher the tendency to purchase luxury branded products.

2.5 Brand loyalty

2.6 Motivations for the purchase of luxury fashion brands; personal values, price, product, quality, exclusivity and social status

2.6.1 Personal Values,

2.6.2 Price, Product, Quality,

2.6.3 Exclusivity

2.6.4 Social Status

2.7 The impact of emotional  behaviour and purchasing of the of luxury brand product: necessity versus desire for luxury products.

2.8 Conceptual Model

Figure 2.1 conceptual model (adapted from reference date)

Write here about the model

2.9 Conclusion

3. Methodology

3.1 Introduction

Research Onion

Reference : the “research onion page 108 Research Methods for Business Students Philip Lewis, Mark N.K. Saunders, Adrian Thornhill  Pearson Education, 2009

3.2. The advantages and disadvantages of different research methods

3.2.1Qualitative

Advantages

Disadvantages

3.2.2 Quantitative

Advantages

Disadvantages

3.2.3 Mixed

Advantages

Disadvantages

3.3 Research Design chosen and reasons

3.4 Methods To Select A Sample.

3.5 Primary research context

3.5.1 Geographical location/ time period

3.5.2 Participants

3.6. Questionnaire Design and the method of analysis

3.6.1 Methods to Collect and Analyse Research data

3.6.2 Linking of Objectives to the Questionnaire Questions

Diagram

OBJECTIVESLITERATURE REVIEWQUESTIONS FROM SURVEY/QUESTIONNAIRE
   
   
   
   
   
   
   

3.7 Limitations of Methodology

3.8 Validity, Reliability, Trustworthiness

3.8.1 Validity

3.8.2 Reliability

3.8.3 Trustworthiness

3.9 Ethical Issues

Ethical issues in general relating to research

How ethical issues relate to your specific research

3.10 Conclusion

4. Presentation of the Data collected in Survey Results

4.1 Introduction

4.2   Respondents profiles

Graph 4.1

Graph 4.2

Graph 4.3

Graph 4.4

4.3 Respondent’s replies to question 1

Graph 4.5

4.4 Respondent’s replies to question 2

Graph 4.6

4.5 Respondent’s replies to question 3

Graph 4.7

4.6 Respondent’s replies to question 4

Graph 4.8

4.7 Respondent’s replies to question 5

Graph 4.9

4.8 Respondent’s replies to question 6

Graph 4.10

4.9 Conclusion

5. Discussion, Analysis and Interpretation of findings

5.1 Introduction

5.2 Theme 1

5.3 Theme 2

5.4 Theme 3

5.5 Theme4

5.6 Theme 5

5.7 Conclusion

6. Conclusion and Recommendations

6.1 Overview summary

6.2 Implications

6.3 Limitations of the research

6.4 Suggestions for further research

6 .5 Recommendations

6.5.1

6.5.2

6.5.3

6.5.4

6.6 Concluding Summary

Appendices

Appendices 1

Blank Questionnaire

Appendices  2

Ethical Issues in Research

Please complete this form in discussion with your Supervisor and sign where indicated.

Your Supervisor must countersign the form.

The form should then be taken to the Student Support desk by the date specified

on page 2 of this handbook.

Staff will record that your form has been completed. If no ethical approval is required for

 your study, the form will be

stamped and returned to you. If ethical approval is required, you will be provided with further instructions.

YOU MAY NOT COLLECT DATA BEFORE IT HAS BEEN CONFIRMED THAT ETHICAL

 APPROVAL IS NOT REQUIRED,

OR UNTIL A FAVOURABLE ETHICAL OPINION IS OBTAINED.

If data are collected without required ethical approval, you could be asked to destroy the data or, if already

submitted, your work will not be marked. If you change your method or sample, a new form must be completed.

Name of student:____________________________ Course: _____________________________

Supervisor: _______________________________________

Dissertation topic: _______________________________________________________________________

Please answer Yes or No to the following questions. If you answer Yes to any question, ethical approval will be required either from the Faculty of Business, Economics and Law (FBEL) OR the University Ethics’ Committee (UEC). Does the study, or may the study, involve undergraduate students either in FBEL or across the University?YESTBA
NO
Does, or may the study, involve access of records of personal or sensitive confidential information?YESSeek approval from FBEL Ethics’ committee
NO
Does, or may, the study, involve Faculty of Business, Economics and Law staff as subjects, investigating their working or professional practices?YESSeek approval from FBEL Ethics’ committee
NO
Does, or may, the study involve staff across The University of Surrey, investigating their working or professional practices?YESSeek approval from University Ethics’ Committee
NO
Does the study involve vulnerable groups (e.g. children under 16 years, over 16’s who are unable to give informed consent, prisoners or young offenders)?YESSeek approval from FBEL Ethics’ committee
NO
Will the respondents receive payment (including in kind or involvement in prize draws)?YESSeek approval from FBEL Ethics’ committee
NO
Could questioning – in questionnaire or in interview – or other methods used, cause offence, be distressing or be deeply personal for the target group?YESSeek approval from FBEL Ethics’ committee
NO
Does the study involve any risk to a participant’s health (e.g.? invasive physiological or psychological procedures )?YESSeek approval from University Ethics’ Committee
NO
Does the research involve donation of bodily materials, organs and the recently deceased?YESSeek approval from University Ethics’ Committee
NO
Does the research require participants to take part in the study without their knowledge and consent at the time (e.g. covert observations)?YESSeek approval from FBEL Ethics’ committee
NO
Does the research involve activities where the safety of the researcher may be in question?YESSeek approval from FBEL Ethics’ committee
NO
Does your research study involve staff or patients from the NHS or a Health Service overseas?YESSeek approval from Health Service Research Ethics’ Committee AND University Ethics’ Committee
NO

Appendices 3

Appendices 4

Appendices 5

Appendices 6

Appendices 7

References

Bain (2013) http://www.bain.com/about/press/press-releases/worldwide-luxury-goods-continues-double-digit-annual-growth.aspx (accessed date)

The Economist (2014) http://www.economist.com/blogs/schumpeter/2014/02/luxury-goods-market (accessed date)

Impact of IT, Websites its different factors, on Customer’s Loyalty, CRM & on Profitability of Company

  1. Introduction

This is the era of technology, and technology is changing with very speed, with the passage of time there is rapid change in technology. The main purpose and advantages of technology also affecting the attitudes of customers because technology is also effecting the mode of purchasing as well as companies are also have the opportunities to capture more clients from the market. Large and small companies and nonprofit companies like fund raising and other NGO’s are also using the modern technology and procedure to take maximum advantages, by offering their product and doing marketing and also looking for raw material supplier and labor from all over the world. This affects financially and quality wise, and in this way companies have chance to improve their internal and external weaknesses and try to get some kind of advantages, benefits and features in their services and goods over their competitors.

Similarly internet has its impact on the companies; many companies are using this technology to designing the website for marketing purpose and offering their products and services all over the world in achieving their goals and objectives.

1.1 History and problem

Creating website and through internet companies now have the opportunities to communicate with clients and capturing more clients in an effective way. Similarly there are many benefits for companies and customer in using these technologies. Customers from all over the world have the choice to buy best products and companies have the choice to communicate with clients and customers from far away and in this way customers and companies have good control and interaction directly with each other’s by saving each other’s time and money.

(Introduction of the company about 200 words)

Now in this era we are living in twenty first century and this is called science century, everywhere in all sectors everywhere is science technology. Customers are in all over the world, due to internet now days world has become global village, people are more conscious about time value and financial and quality conscious, their main priority is to save their time and money in every prospect of their life, either they are going for shopping goods for home, for offices or hiring services for any kind of purpose, they have very limited time for shopping. So they want to save their time and in short time they want to do many activities because now day people are more social and they want to spend most of the time with their families and friend or even then with their family friend and in different parties, friend parties or family friend parties.

They want to save their time actually and internet is providing the main facility to save their time in a way that they can buy and do their shopping through internet. Internet is providing the facility to search for good products or services and by sitting in their offices homes or even then on the way they can look, choose the product or services and just pay the money online for a product or service. Similarly if a company is looking to hire best services of a professional or for skilled or unskilled person, or looking for raw material supplier or looking for distributors or manufactures as well as they have the opportunities of internet and can save their time and money and hire the appropriate person or purchase the best one product by having a large number of alternatives and selecting suitable among all, and in this way the company will save its time and money, because the company have the opportunity to choose best one from all over the world.

The researcher main focus is on the impact of website on customer loyalty, so as internet is the main source of communication between customer and business organization, now companies are using the facility in productive way to communicate their massages to the public by creating their own websites and providing the opportunity of shopping from very far away. Now by using internet marketing is more suitable for sellers, manufacturers and suppliers and even then for vendors.

1.2 Website Developing

There are many advantages of website due to its different characteristics like the fast way of communication with most reliability and validity, data can be traced with no passage of time, no wastage of time, as data can be accessed very quickly then the data can be retrieved very quickly, and in couple of moments the feedback is given in proper way, customer’s complaints are very easy to handle and due to central data base it is also very fast and quickly that important decision are easy to make by making it sure that service provided was so quality level. And one more interesting and amazing feature of website is that during journey, in and out of home, in meetings and even then on job it is very to remain always in contact with clients, with distributors and suppliers. So managing the business is very easy through internet and same with customers they can buy any product any time, from anywhere with no wastage of time. The customers have to only spend few minutes on website and after selecting the product or service, just pay the amount and get the delivery well in time. Now look in this way both parties can save their time and money in an efficient way.

There are some other advantages of website to create loyalty and retaining clients like it is very easy for any client and customer to access the website any time means twenty four hours and seven days in a week, websites have access to open and do trade from all over the world, marketing and communication is very easy and it provides a chance to increase the number of clients very easily from all over the world, time saving, reliability, validity, data protection and cheaper are the main advantages of websites and hence collectively these benefits leads to increase the loyalty of customers.

There are following objectives the researcher has to conduct this research, the main objective of the researcher is to find out the main characteristics of a website then the next objective is to know about the impact of that website on the customer’s loyalty in enhancing the loyalty in customers and the last main objective is to know about the characteristics that will attract the customers to create the loyalty at maximum level.

  1. Literature Review

In this section the researcher will describe the review literature about the website development and internet marketing and it’s contributing in creating customer loyalty by website features and impact on customer loyalty and overall impact on organizational objectives in achieving. The researcher will also review the literature about the specific features of a website that are useful to creating loyalty and customer loyalty link in creating satisfaction and resultantly in achieving organizational objectives. The researcher will also review the literature about the internet marketing and its impact on the trade now a day.

Link between Website development and customer’s loyalty

Quality of services is a major issue that is described by the features of a service while designing the electronic service, and business organizations are now designing the websites of their companies according to the perceptions of the clients (Dube et al. 1999).

During website designing, or electronic service providing designing there are always different and opposite opinions and non formal suggestions (Siegel, (1997); Greenspun, (1999); Hanson, (1999) and Nielsen, (2000)).

The researcher has found out that there are some problems while constructing the web pages for any company and as it is clear already that by creating the websites with some characteristics, to create client’s loyalty to retain them and for repurchasing, similarly when there are some problems with the creating web pages then this is not possible to achieve organizational aims and objectives in well manner.

There are many problems related with web page designing and especially these problems affect in negative sense in attaining the basic objectives of an organization (Hoffman et al. (1995); Spiller and Lohse, (1998); Heim et al. (2000) and Heim and Sinha, (2002)).

There is a strong relationship between the quality of service and website characteristics (Heim et al. 2000).

Now a days the shopping trend has been completely changed, it is true that some big stores have a portion of customers from the market but internet has been changed the way of shopping, and a large number of clients are now choosing internet for shopping, the different website have been visited by the eighty percent of the clients from years 1997 to till 2000 and it is the large proportion that showed the trend of change towards electronic shopping due to customer’s satisfaction and loyalty (Fortune, 2000).

Actually customer loyalty can be created through offering very low costs products and internet marketing has this characteristic and this loyalty due to such characteristics that provides the basic level of client’s satisfaction, and the client who is loyal with the company is actually in a relationship with the company’s long term relationship for profit earning, and this is also called the equity. Internet has cleared one thing that the actual valuable thing is consumer who is focusing on the product and some other prospects like financial and quality and easy way of receiving delivery and through customization, the consumer enable to customize the product by visiting the website of a company easily. And can get other benefits like membership and earn more benefits like discounts. These consumers actually create the value for organizations.

As there are two main strategies adopted by each organization to achieve its organizational objectives, number one is the corporate strategy and second is the operational strategies, operational strategies always have the policies and action plans that are used to achieve the corporate level objective of an organization, and organizations should focus their clients in operational strategies and these should be implemented in such a way that it supports to the corporate level strategies to achieve organizational objectives.

Link Between Website development and Quality of Service

Service quality is the main important aspect of website because customers have in their mind the expectations about the quality of the services, and this quality is the result of a website that offers such kind of quality. Website must have the efficiency that is why many organizations design the websites according to the perception of clients regarding delivering the services to customers. But there is a problem, when resources are too limited then it is not possible for companies to design the website that has the potential of creating long term relationship with customers by offering loyalty and capturing new clients from market, and when there are limited resources then it is impossible to design such a website that can deliver those quality services as per client’s perception, but some features can satisfy the customers to retain them by creating loyalty, and this decision will be more complex (Heim, and Sinha, 2002).

Now customers are using the internet and their main focus is to buy the products or services through visiting websites and on the same time, the companies are implementing the electronic marketing for research and development and marketing their services and products to capture more clients from the market by considering all the main issues that can create loyalty by offering quality services and quality products by giving financial benefits to the customers and some other features as those features are discussed above. So the main consideration and actually success for business companies is to make sure that the customer are perceiving best quality of services through website and website has all the features those are helpful in creating loyalty through providing quality so that customers again and again come back to repurchase the services and goods.

Website actually provides a large number of products or alternatives and provides a chance to select the best one according to price and quality as per customer’s requirements. Customers save their time in travelling and selecting and then comparing the product, but through website online shopping, customer’s have a chance to select lowest price items or services, and easy mode of payments and delivery mode, through website customer can have facility to customize the service or product that can affect their budget and need.

To develop the website, companies must have some resources to design, develop and launch the website on the internet with the features to capture the clients because other competitors are also in the market, and while studying marketing research, it was proved that loyalty of customer, means client’s loyalty is based on the client’s satisfaction (Zeithaml et al. (1990); Rust, (1995); Anderson et al. (1997) and Fornell, (2000)).

There is a large factor of cost which is associated to the customer while visiting the website is that the cost. And second one is the time. The main quality of website is that, the customer visit again the website to repurchase the product, and due to low cost the client has no time and much cost to spend for travelling and then spent a large time in selection and then making comparison among products and then buy, so the client now day prefer to go online on the website of company and select the best one product and pay the amount and get the delivery at door step, and in this way he or she saves the time, money and satisfaction.

Marketing through Internet channel

Today is the era of computer science, because computer science is facilitating customers and organizations. These days this computer science technology has changed the throughout procedures and flow of work in the organizations and now all the countries of world become as village, computer science has reduced the distances and there are many other features as well like through the websites (having some features) are creating loyalty among customers and organizations. The researcher is gathering secondary data regarding website impact on customer loyalty.

Smith and Chaffy (2005) has been described that internet marketing is used to achieve the goals and objectives of an organization by using internet facility. This means that companies having their own websites can achieve their goals and objectives through internet marketing by using the new technology of internet from all over the world and can achieve their objectives by capturing more and new and retaining the old client from all over the world because today due to internet whole world is connected and it is possible now a day to buy any good or service from anywhere now and quality product can be buy from internet because this is possible to make comparisons easily regarding price and quality of goods or services.

Business organizations can obtain their all goals and objectives by using internet and using the electronic marketing and all other activities related with marketing on internet like product designing, product pricing and placement through internet and in this way these organizations can create loyalty as well through providing quality products and satisfying their clientage (Strauss and Frost, 2005).

Characteristics of Effective Website

The literature review shows that in the business organizations the website design create customer loyalty. Researcher means that the website of company if has some characteristics then it is possible that the website can create customer loyalty by providing the customers the satisfaction as if it should the main purpose of website designing and launching, then the customer loyalty can be achieved. If organizations think that the website developing is as the producing unit then it is possible and while development phases all the prospective of a website and customer’s satisfaction should be consider as a main output of the website and sales as well to earn more revenue so in this way the company. There are many customers and all have different levels of satisfaction, the satisfaction depends on the expectations of the clients.  The quality of services is actually the difference among the expectations in the customers mind and customer’s perceived service (Zeithaml et al. 1990).

There is a relationship between customer satisfaction and the website because due to the characteristics of good and well designed characteristics of website designed that triggers the customers to buy the products. Clients always count the length of information that is given in the website about the product and its features, comparatively the advantages of products over competitive product and other advantages of product or services. So the first characteristics of a website must be the information of product qualities mentioned in the catalog, and this catalog must be according to the preference of the client, and the website must be user friendly, the language used in the website must be easy to understand for every client. There must be the search engine within the website about the products. Business organizations are considering the electronic commerce issues (Teo et al. 2003).

Organization can be successfully achieved their goals of quality services and attempt the client’s satisfaction and their expectations about quality of services, when the organizations consider about the delivery media in their mind while designing the electronic services, and this service media creates the client’s value (Zeithaml et al. 1990, Heskett et al. 1997).

There are some characteristics of website that are contributing in building customer loyalty and ultimately or finally customers loyalty is contributing in company performance, in which includes the pictures of products or services, search facility in the website, location map, shopping cart, scientific calculator that enable clients to calculate the exact amount, delivery way, different options and through website delivery order tracking mechanism and information about the availability of product in the store, and information about usage and handling the product and expiry date and all information in detail about the product, ingredients, discount option like membership option, clients number and login facility, mode of payment and offerings, these all characteristics play their role in creating customer’s loyalty because these characteristics create quality.

Link between Objectives of Organization and Customer’s loyalty

The main objective of this research is to find out the impact of websites on the customer’s loyalty contributing in achieving organizational objectives.

Internet is playing its role very effectively in the business industry in achieving organizational objectives by internet marketing and online shopping (Teo et al. 2002).

Organizational objectives is never achieved without achieving and retaining customers, customers can be captured through good marketing activities and using effective media channel and delivering effective and clear message to the population and after the marketing successfully then the next step is to have the loyalty among the clients regarding the company that will bring back these clients to again buy those products or services.

Porter, (2001) has been described that now a day many customers are using online shopping, and in this way through computer science there is a big support towards business transactions.

Companies can have many advantages by creating relationships with clients on long term or short term to earn profits and other advantages like good image of company and good will of company by creating loyalty. Through internet it is possible for companies to create loyalty through stepwise marketing of company agenda and offerings variety available at different costs and very good quality and other marketing strategies and as compared to competitors adopted technologies. Through internet marketing is easy and there are more chances to capture large market share throughout the world.

According to Buttle, (2004) that described about the benefits of relationship with customer to a company, many customers have the desire to remain in a relationship with the company, because if the company recognized them, it is beneficial for them regarding customization.

In some case the customers want to create a long term relations with the organizations they know that they can get many kind of advantages if they have good long term relationships with the company like for some kind of rewards and upgrade offers after a long term past experience and buying services or items.

Similarly organization also can get many benefits by having some relationships with clients.

Main objective of each business organization is to earn profit by offering services or goods and through quality, by creating loyalty (Reicheld and Sasser, 1990).

Loyalty is always after the proper satisfaction of customer’s needs and wants, but it is the loyalty that brings back again the customer to again buy the product to overcome its needs and wants up to a certain level of satisfaction (Jones and Sasser, 1995).

Business organizations should focus on the expectations of their clients and know about their needs and demands to satisfy them in better way to achieve organization’s main goals and objectives, because without satisfying their customers it is not possible to earn money, which is ultimately the organizational objective to achieve and main purpose of investing money (Schlesinger and Heskett, 1991).

Customer’s loyalty and the buying behaviour of the client are two main factors on the behalf of them any organization can measure the satisfaction of client, because when ever client will come again back to buy again the item or service, its mean that he or she is satisfied by consuming the goods or services before (Getty and Thompson, 1994).

The main difference in the quality of delivery or experienced after consuming the product and needs and wants then the loyalty can be created in the client, because loyalty is related with satisfaction (Kandampully and Suhartanto, 2000).

Through website while designing customer loyalty remain always focus on the top of the priority list and this consideration never forget by the developer and other all factors are also included in the features and characteristics of website.

There is a strong relationship is there always between loyalty and satisfaction, satisfaction depends on loyalty, and profit depends on loyalty (Helgesen, 2006).

Repurchasing of any product or service depend on the past results obtained by consuming the goods or services by the customers (Kim, 2005). It is possible to measure the satisfaction of a client, but it is necessary to satisfy a customer first then on the behalf of loyalty (Gundersen et al. 1996). The relationship of a company with its clients affects the objectives like good will and profit for which the organization is striving and investing the money into business operations and activities (Anderson et al. (1994); Yeung et al. (2002); Luo and Homburg (2007)).

The above discussions and literature review showed that it is necessary for any organization to achieve its goals and objective to create first of all the loyalty by providing quality of goods and services and create such kind of website that has the characteristics to create the loyalty among its customers so that customers again come again purchase those products and contribute in achieving organizational objectives like growth of company and profit. And now day people want to buy the products and want to do shopping from their homes and using internet, but they need some characteristics, that triggers them to buy and those characteristics can generate loyalty by showing quality of products through the provided information about that product and some other benefits, comparisons, advantages over competitors and features. There are some kinds of people like some are quality conscious and some are quality conscious, now day the quality and price conscious are more active, because due to large competition almost clients have same needs and demands and on the basis of research and development, companies are offering good quality of services and on the expectations of customers companies the offering the services and products.

Effective website and expected results

Websites are designed and launched to achieve organizational objectives like to earn more revenue and then profit, and good will. And it depends on the volume of products offered in the website and the frequency of visitors on that website to purchase the items or services. The number of visits depends on the level of satisfaction of customers affect the buying of products. Website designs with characteristics also affect the visitor’s frequency of their visits on the specific website. And the marketing strategies and satisfaction level always brings more new customers to visit the website and to retain old client by creating more loyalty among customers and companies. Website performance and effectiveness can be measured through some factors; the main and important factors that contribute in the efficiency of a website are the volume of information about any product or service on the website and necessary updates are also recommended with the passage of time, secondly the environment of website that how much the website id user friendly, and some other ethical considerations are also contribute towards the performance of website (Fortune, 2000).

The user friendly environment of a website depends on the tools and information about product used during the development phase of a website. And the mode of payment is also affect on the loyalty and satisfaction level of customer and overall affect on the productivity of website and contribution towards achieving organizational objectives.

The different characteristics of a website create a strong link between the booking of product and delivery (Meuter et al. 2000).

Actually shopping through internet itself is a main source of satisfaction due to some features like information, comparisons and other features of products and information about company and more is that many satisfaction considerations and issues are always remain in the mind of

Web developer and company also focus on them in order to create loyalty and finally achieving the customer’s satisfaction (Swan and Combs, (1976) and Lilien et al. (1992)).

In this way when website developer and organization is already have in their mind about the expectations and other features to bring loyalty and satisfaction among customers while in designing stage then the website will deliver the quality of services to the customers according to the expectations find out through research and marketing departments.

One more interesting feature of a website to its customers is that membership and reward system based on previous shopping because a very small gift can become cause of pleasure to a client and will enhance the loyalty and trust (Fortune, 2000).

Conceptual Framework

The researcher has designed the conceptual framework for the review literature about the research project, that how the review literature is linked with each other. First of all the internet marketing which is adopted by the most of the companies as a tool to implement their marketing strategies into market to capture targeted clients, so as per the needs of these clients, companies design the website and consider all those issues which are related with the customer’s needs and wants. In order to fulfil the needs of their client’s expectations, companies and web developers design the wed pages including considering all those features and characteristics to bring satisfaction to their customers. These characteristics shows the quality of products that triggers the client to buy the products and in this way by using the products and on the behalf of the results of products consuming, and delivered quality and by satisfying the client’s needs and wants, customers again come to buy the products again and ultimately it generates the revenue for the organization which is the main objective of each company.

  • Research Methodology

In this section the researcher will discuss about the research methods that how the researcher has conducted the research, which kind of tools the researcher has been used, how the researcher collected the primary and secondary data, and why the researcher has choose the case study method to prove that there is significant impact of website impact on customer loyalty, which is the main objective of this research.

The researcher will discuss about the number of sample that were selected during the research conduction by the researcher.

The research methodology defines the way, that how the researcher has conducted this research, the research methodology defines the pathway to conduct the research in a suitable and meaningful way to achieve the aims and objectives of research conducting, and it also describes the methods of gathering data to reach up to a result (Aaker et al. 2003).

  • Aims and Objectives

The researcher has selected the case study of pharmaceutical company to conduct her research with some objectives.

The researcher has following aims and objectives to conduct this research project.

First of all the researcher will find out the characteristics of a website that can create the loyalty among customers, and then the impact of effective websites on the customer loyalty regarding the satisfaction and quality, and third one main objective of the researcher is to know about the impact of those characteristics on the customer’s loyalty and in achieving organizational objects.

Because without objectives it is not possible to conduct a research and these objectives as discussed above will force the researcher to conduct this research in a meaningful way, the data will be interpreted by the researcher as discussed in second chapter for some results to achieve the research’s objectives. As through secondary research conducted by the researcher proved that now a day people’s trend of shopping has been changed, they now prefer to buy products and services online by using internet facility at their homes, in their offices by visiting the websites of companies. And one thing here is cleared that there is a trend now to do shopping online because people are more busy and they want quality and low prices and need more information and need easy way to pay the payment, and due to shortage of time or to save their time they prefer this way to buy products online. Now it is depend on the website that how much the website has the characteristics to capture more and more clients and retain old clients by creating loyalty and satisfaction in customers. When the website has all the features like the maximum amount of data available on the website about a product or service which includes the manufacturer name, brand name, capacity, volume, ingredients, expiry date of the product, ingredients, instruction of use, guarantee and warranty, money back guarantee, availability, its price and very important information is about the advantages, benefits and features of product as compared to its competitors, precautions are included. Similarly there are some other characteristics like during the designing of web page which kind of graphics to attract and reasonable combination of colour scheme was used, its means that outlook of the website is also important. The mission and vision about company must be given on the website in the company introduction and information about the raw material quality that shows the quality of product and reflect the social responsibility of the company towards its customers that they feel that the company is here for their betterment. The comparison of the price, according to quality and drawbacks of competitors is most important thing. Testimonial views about the results after consuming and opinion and suggestion part must be included in the website so that the customer if feel some kind of improvements can write its views and it must be appreciated via email or on telephone so that the customer feel happiness that company has gave him or her the importance to his or her views and information about the membership free of cost and benefits of membership and all other offers in seasons or related to free delivery, special discounts, free of cost contact numbers and feedback in order to retain the customers and create loyalty, because loyalty is always comes through these kind of features. The shopping carts should be there and calculator must be added here to calculate the money and different mode of payment must be there like some customers feel easy and happy to pay through credit cards, and some of them want to make payments through debit card and through direct debits and in instalments and some of them on monthly basis. These all characteristics influence the customers to create loyalty among the clients. And loyalty creates the satisfaction after consuming the products. The researcher has found out that there is a link between quality of product and satisfaction. And there is a link between effective website and customer’s loyalty, if the website has all above characteristics. The researcher come to know through review literature that people wants to buy products and effective website can bring loyalty and it is an opportunity for the companies to retain their old clients by effective website and through retaining in which loyalty and satisfaction by delivering them quality products it is possible to achieve organizational objectives.

To achieve research objectives, research design is very helpful for researcher to gather both secondary and primary data, and store the data gathered during research conducting, and after gathering data, it also defines the way that how data analysis can be analyzed by the researcher. There are different kinds of methods to conduct the research like descriptive research, causal research and exploratory research, basically research methods provides path way to researcher with many options to choose best among all as per the resources and according to aims and objectives of the research conducted by a researcher (Reinartz and Kumar, 2003).

Research methodology

Exploratory methods will be used by the researcher to conduct the research to achieve its objectives of research. The researcher has proposed the Pharmaceutical industry because by using exploratory methods interviews will be conducted by the researcher to gather the primary data and websites visits will be done by the researcher to gather primary data. The focus groups and meetings with the employees of the pharmaceutical company selected by the researcher are also includes as a part of this research, open ended and closed ended questions will be included by the researcher and questionnaires will be designed by the researcher to collect primary data and then data will be analyzed to find out the results, different graphs will be used to show that proportion of respondents and their responses will be recorded by the researcher in tables to make conclusions. Company website, annual sales and profit and balance sheets and statistical reports about the specific company will be analyzed by the researcher for gathering primary data. In order to find out the characteristics of effective website to create loyalty the researcher will conduct the interviews of more than 100 customers that usually and frequently visit the National Health Centres, Hospital and visit the chemist stores to buy medicines and check up and after medical check up they went to purchase medicines from chemist shops.

To satisfy customers and the goals and objectives of an organization can be obtained by offering the goods and services, by managing distribution channels, setting product prices, and executing and implementing plans and strategies by using electronic data (Strauss and Frost, 2001).

Sources: (EI-Gohary, 2011)

Selection of Case Study

The researcher has selected the case study as the research method because according to the aims and objectives of the research the best one method will be the case study. Actually the case study method which will be used by the researcher will provide qualitative research, because the researcher has limited resources like time and money to spend, as this research is academic to fulfil the requirement of academic purpose. Instead a large amount of people to select the sample size and further continue the research, so when the resources are limited then at that moment the best way is to select the case study method which is very convenient and suitable for reliable and valid results.

Case studies are the best and suitable way to conduct the research when resources are limited to gain results (Flyvbjerg, 2006).

In this way the researcher has all the chances and possibilities to conduct the research like staff meetings in details, on spot observations and directly meetings with customers and focus groups, whereas to meet with large amount of people require a lot of time and other resources to conduct the research. Case study method is also suitable for the researcher because it require less time and other resources because data gathering, data analysis and interpretations on small amount of data requires less time as compared to other research methods.

Case study is the best option selected by the researcher and it is the best way to conduct a research for better results (Feagin et al. 1991).

The researcher has selected the case study in pharmaceutical industry because this company is using the website successfully and all the characteristics to satisfy the customer’s expectations and needs by giving all the features in the website. And this company is running its business all over the world and capturing rapidly a huge amount of targeted people from all over the world and generating huge amount of profit.  

Now day with the usage of internet, organizations can get many opportunities to run their business and customer’s expectations are very important in supporting the organizational activities by using internet to achieve its goals (Porter, 2001).

Similarly the design phase of website has an importance while including all the features to develop the characteristics that can create loyalty and satisfaction at a specific level, and case study is the only way to get good results that provide a chance to observe work at running situation and while analysing the data gathered during data gathering (Zonabend, 1992).

The researcher actually has interest in the qualitative research because the researcher will discuss the characteristics of a website to create the loyalty and finally the satisfaction level among its customers to achieve organizational objectives. That’s why the researcher had interest in qualitative research conduction, the researcher will conduct some interviews from the customer of the pharmaceutical shop as well by contacting them on phone and meeting with the pharmaceutical’s company staff and researcher and marketing department and web development team in order to gather primary data and to make suggestions and opinion to create loyalty and satisfaction level at high level. In this way the gathered data will be of high quality and high reliability and validity which is most important considerations for the researcher to analyse the data and make suggestions. As the researcher has no previous experience about the research conducting so in the situation the most suitable method for the researcher to conduct the research is qualitative research as the researcher come to know through secondary data that in this way there is no much time consuming and quick response will be there from respondents and there are also many advantages of qualitative research to the researcher.

The instrumental research is referred the research conducted by researcher through observing the situation and collective research is referred the research which is conducted by the researcher through case study and when the researcher conduct the research by selecting one case (Stake, 1995).

Aims and objectives

Here the researcher will use quantitative as qualitative research by the researcher, because in this research the main aim of the researcher is to find out the answers of some questions during interviews of customers and staff members of the company.

How much amount of contents is given in the website about the products available for sale?

How much the website is user friendly like searching and other pages link, complaints handling and membership form?

How many people are happy to buy the products online?

Is the people think that they are secure while paying the amount through online system?

How much people relay on the web contents?

Has the website equipped with navigation tools?

Does the website offering calculator and different payment methods to the customers?

Does the website outlook/graphics attract the customers to visit again?

What is the speed of web pages to download the web contents?

Does the website offer the comments pages and comparison facility and price comparison?

How much quality of products and quality of services the people perceive from the website?

Is there any drawback of using website, and if there is or are drawbacks then how to eliminate them?

Does the contents of product given in a website are sufficient to create loyalty among the customers?

How many people are satisfied by the quality of website and actual quality of product they perceive after consuming the product?

Each website must have some characteristics to create successfully loyalty among customers to satisfy them which are given below in the table.

Serial #CharacteristicsDescriptions and Advantages
1Website contentsCustomers first of all search the products information, which includes the features of products and advantages and benefits over its competitors. These contents provide comfort and initially establish the relationship with customers if the information about a product are sufficient including price, brand name and all other information about the product, people actually relay on the contents and on the quality of product when they search for product and feel themselves that they know deeply the product and it creates confidence among themselves.
2Website design outlook and graphicsThe websites must be more simple and easy to understand the language should be used and the design must be according to the web contents. Basically different moving object actually distract the attention of customers. Always good design and colour scheme and graphical representation help the customers to perceive the message. Colours must be soft and light.
3Website navigationThis feature allow the customers to go on other pages from home page directly, it gives them an opportunity to move from one page to other or from top to down, it gives them the facility to go directly on the interesting portion.
4UpdatingThe clients actually encouraged by this feature of website, customer’s comments and suggestions have very importance, so by adding them in the website at particular place attract the customers and play their role in creating loyalty and satisfaction.
5Newsletter, articles, press releases, focus topics, research outcomes, programs, CEO statement, Registration number, photo library, media contact, collaborations, responsibilities, investors, careers, mission and strategy, quick links.Fresh and newly articles about the quality and performance of company or about the products and news in newsletters also attract the customers and help the companies to capture more clients, because by reading news and articles customers feel satisfaction and they move positively to buy products. in links like financial calendar, product pipelines, annual reports, research and developments, site map, advance research option and terms and conditions, and commitments and promises regarding data protection.
6Search engine optimizationSearch engine optimization actually referred to the marketing tools which are used to enhance the ranking of website on the world wide web through key words. Maximum number of key words enhances the chances of visitors to attract when they search through search engines available on world wide web.

So the researcher is mainly interested in the case study to find out the effectiveness of effective website in creating customer’s loyalty. Because the first step to build the customer relationship is creating loyalty, and customer’s satisfaction always plays it’s role in retaining them and capturing new clients from targeted market.

Data source for Primary and secondary data

Primary Data

First of all the researcher will design the effective and simple questions to gather primary data for research and after analyzing and interpreting it the researcher will find out the conclusions and will make suggestions.

After designing the questions the researcher will review them and remove all the errors and after getting feedback from respondents, the researcher will move forwards towards next stage of research. It is very important to design effective and right questions because the conclusion will depend on the responses and these will depend on the nature of research.

Here in this research after designing appropriate questions the researcher will move towards the next step of conducting research after selecting the sample size. The researcher will select the customers and focus groups and will arrange some meetings with the different department’s staff in order to collect the data from them.

Analysis and finding out the results, these activities are always done by the researcher, that is why data should be keep in well arranged form by the researcher itself, and procedures must be in the researcher mind before doing analysis (Crowther and Lancaster, 2009).

After collecting these data the researcher will record them in suitable form like first of all on the papers and then in computerized form. The researcher will use computer applications like Microsoft excel and spread sheets to avoid the duplication of data and minimizing the errors chances and will try to enhance the reliability and validity of data by critically analysis on it.

The researcher will conduct interviews because interview techniques provide the chance to get response to the point and it is faster way to gather primary data rather than other methods and in this way the chances of researcher opinion will be minimized up to a certain and significant level. And the focus of the researcher will remain on the aims and objectives of the research and in this way more reliable and valid data will be gathered by the researcher.

Secondary Data

The researcher has used many books with the tile of internet marketing, electronic marketing and electronic commerce, customers satisfaction and how to create customer loyalty and many more books, the researcher has been read out some journals and electronic journals to gather secondary data about this research topic and the researcher has read out company website, vision and mission statement and different websites to collect secondary data. The researcher read out articles from different sources which include blogs and lectures, and mainly it was on the research topic like characteristics of effective website and its design and link with quality and customer’s satisfaction etc.

Collection of reliable and consistent data is not an easy task, so the researcher must use reliable source and way to gather secondary data for more consistency according to objectives of research (Cooper and Schindler, 2006).

The researcher has the information about the limitations and benefits of secondary data. In by keeping these limitations and benefits the researcher gathered the secondary data to achieve the aims and objectives of the research, and every step the researcher was sure that the data gathered during the research is of quality and free of errors and mistake and is exactly according to the aims and objectives of the research.

Secondary data is always the combination of quantitative and qualitative data which is always collected by the researcher in descriptive and exploratory research methods used by the researcher during a research (Saunders et al. 2009).

Advantages and Disadvantages of Secondary Data

First of all the data may be so old and may be of no use because due to advancement in the technology and due to new procedures and change in the needs and trends of people, it might be possible that old data is of no more use, and the researcher may be detracted from the aims and objectives of the research topic. Old data may be expired and the available data is not of up to standard and of poor quality.

First of all the main benefits is the availability of large amount of data free of cost. It is the major and important factor of using secondary data. The researcher knows that it is time consuming to gather effective and consistent data from a large number of books and other sources. But one more important benefit of this type of data has maximum reliability and validity because the research was conducting on a large scale and large number of sampling was used in the conducting of research.

Interviews

There are some advantages like to the point response, fast reaction/response as per the objective of the research and questions, the researcher used close ended questions, and in this way there is no time wasting (Saunders et al, 2009).

The researcher has designed the questions of open ended and close ended in order to get reliability and consistency and validity, during the interviews of customers and staff members of the pharmaceuticals company through questionnaires by asking the answers of different questions of open and closed ended, the researcher is interested in getting as well as the opinion of the customers and staff members of the pharmaceutical company due to get more and more data to interpret the data and find out the suggestions and recommendations. The researcher will ask some questions about their trends of buying the products from online by using internet and by visiting the websites of the companies. The researcher will ask some questions about the reliability of information given on the website and difference in the quality of product as given in the contents and after consuming, and will ask the benefits and their considerations of the websites.

The researcher will ask some questions about the loyalty and satisfaction near them and will ask some questions about the features and factors about the effective website role in creating loyalty and satisfaction level.

Statistical tools must be applied by the researcher in order to find out the results and the results must be of quantifiable means to make comparison in order to get clear and significant results (Easterby-Smith et al. 2001).

The researcher will ask to the customers about the designing of the websites and more facility that should the companies must include in the website that can play the role in creating more loyalty in the customers. The researcher will ask some more questions about the satisfaction level about the quality of the websites and how much effective are the website and some new features in their mind that during design of websites what are the main issues that customers must be consider while generating web pages.

The researcher will use very simple and easy to understand able language while designing the questions. The questions will be easier to understand and short.

The research aims and objectives plays an important role in gathering data about the research, there are many ways and methods to conduct a research, but it depends on the researcher to choose the best one methods to conduct the research and collect the data (Goddard and Melville, 2004).

There are some advantages and disadvantage of structured, semi-structured and un-structured interview, and the researcher will discuss them one by in detail.

In the semi-structured kind of interview the researcher has the opportunity to access the results of more reliability and consistency without any problem and bias of respondents. The information gathered through semi-structured has validity and reliability. The information gathered by the researcher using this type on interview is near to the nature of actual problem because the researcher has selected the real respondents to conduct the interview. In this type of interview the respondent is allowed to give its suggestions openly as per his experience.

The researcher need some special skills and techniques to design such type of questions for conducting interviews from different respondents to reduce the limitations which are associated with this type of interview and to get good results as per to fulfill the research objectives.

By keeping all the disadvantages of semi-structured interview the researcher has designed all the questions.

To get the response from respondents while conducting semi-structured interviews, the researcher is able to get very good results through this type of interview (Aaker et al. 2003).

Population and sample size

The researcher will include both of the gender males and females in research conducting because both gander used to go for shopping.

The age range is different the following table will describe the sample size selected on the basis of literature review that both male and female use internet for doing shopping.

Serial numberNumber of MalesNumber of FemalesTotal
150 50
2 3030
Total503080

Age Range:

Male: 19 to 55

Female: 19 to 55

Actually sampling is the way to choose the people or respondents in a research conduction for response and on the basis of their responses the researcher find out the results (http://www.socialresearchmethods.net/kb/sampling.php).

The researcher will use simple random sampling methods to select the samples from the population. If all the customer come at the chemist shop will be the total population then the researcher will select every fifth person. This method is most ideal and there are some disadvantages of this method like it is not easy task, it is very tough to make the population list (http://www.coventry.ac.uk/ec/~nhunt/meths/random.html).

There are three types of simple random sampling, first of all there is cluster sampling in which the groups are involved in the research and the researcher is interested in groups of people for example, whereas in stratified sampling the sub population is decided and from them and then groups are selected by the researcher, and finally in simple random, randomly samples are selected by the researcher (Wikipedia, 2011).

4.         Research Findings

As in the last chapter it was discussed that the researcher has selected the qualitative methods to conduct the research in which the researcher will conduct the interviews and will ask some questions from the staff members of the pharmaceutical company. And the researcher will use the focus group discussion methods as well as to get respond for more reliability and validity of the data. The researcher come to know through secondary data that some characteristics of effective web site can create the customer loyalty and customer loyalty leads the customers towards satisfaction through quality of services and hence the organization will become able to achieve its objectives in well manner.

The wed development team and research and development department are the responsible for the development of such effective website that has all the discussed characteristics and offer a quality of service by web pages that can create the customer loyalty.

The researcher has designed such questions to find out the interest of the people and their willingness to buy online shopping to save their time and about their satisfaction level.

Questionnaire

The researcher has decided to conduct interviews from the customers and meetings with the staff members of the pharmaceutical company and then conduct research on focus groups to get response.

For this purpose the researcher has designed the following questions to ask from the respondents.

No.1 Do you have internet connection at your home?

Yes                  No

Answers in Tabular Form (Question No. 1)

Internet Connection at HomeMale out of 50Female out of 30Total
Yes472572
No358

The purpose of this question was to know about the using of internet, if no one is using the internet then he is not the sample size as the researcher has discussed that in random selection the main problem is to find out the actual population, and in this research the researcher has no found any irrelevant sample and all the samples have internet connections at their home.

The researcher has used chart in order to find the results with more reliability and validity with the help of percentage as this is most appropriate for understandings.

No.2 How much time did you spend on internet daily at home?

<1 hour           1<2 hours       2<3 hours       …………hours

Answers in Tabular Form (Question No. 2)

Time to spend on Internet dailyMaleFemaleTotal
Less than one hour257
Less than two hours131124
Less than three hours252145
How much if more than three hours 33
Total404080

The purpose of the researcher to design this question was to know about that how much respondents spend on internet, this question was only asked by the researcher to know about the validity and confirming about the use of internet so that error chances must be minimized, when person going online for shopping and buy online he or she must spent about one hour because by reading the contents and making comparisons it take some time, so that is why this question was asked by the researcher.

No.3 What are the main purposes of surfing internet?

Check emails, Shopping, Playing games, Watching movies, Business purpose, Education, Billing and Payments

Answers in Tabular Form (Question No. 3)

Main Purpose of Internet usingFemale respondents out of 40 in each selectionMale respondents out of 40 in each caseTotal out of 80
Check email/Chatting303535
Shopping353873
Playing Games5813
Watching movies213
Business Purpose111011
Education152540
Billing and Payments283664
    

The researcher has designed this question to know about the main reason that why people use the internet, either they are interested in getting their education because many people from abroad they have difficulties in going campuses due to many reasons and they get admissions in online education system may be the people have internet connection and just for education purpose, and may be the people are using the internet for paying their utility bills and to keep an eye on their banking and credit banks accounts, the people now day use the internet for some other purposes like watching movies online because online movies are some time free of cost or by downloading movies are easy and cheaper, and some time people prefer to watch movies on their homes with their families and they avoid to go cinemas and sometimes the movies are not available on the shops so this may be a reason to use internet, similarly there are many reasons to go online to satisfy their needs, similarly for playing latest games online may be the mode of interest to go online, and for doing and controlling business transactions most of the people use online services, may be some people are on holidays from their businesses but they want to keep their eyes on the business updates, that is why they may use internet, because having internet connection does not mean that people have the internet connection at their home just for doing shopping online. It may be possible that people have their offices in other countries and they are living in United Kingdom and to keep in touch with their business transactions and to know about the business operations and to remain in contact with suppliers and distributors, people may have internet connections. And it is the possibility that people have the internet connections for the purpose of shopping because bow a day the trend of shopping has been changed because on the web site (effective website, the website with some characteristics is called effective web site) the information regarding products and services is sufficient with more benefits, advantages and features, like comparisons, price comparisons, discounts, sales, offers, memberships to get shopping rewards and careers and calendars, gifts, mission and vision statement, information about raw material suppliers and procedures, using instructions and many other kinds of information is available now a day, and one thing more interesting is that people want to save time and money so that is why they prefer to go online for shopping. There is no doubt people are connected with each other if they are employees or employer or business man, they have their email addresses and they are in contacts with other people so that is another reason to have internet connection.

Here the researcher has the responses of some customers and now the graphical representation of the primary data is there in the below graph to understand easily.

No.4 What are the main benefits of online shopping?

Save Time, Save Money

Better Service Quality, Satisfaction

Answers in Tabular Form (Question No. 4)

Mian Benefits of going Online for ShoppingMalesFemalesTotal out of 80
Time saving383573
Financial Savings353671
Quality393978
Satisfaction404080

The researcher has designed this question in order to know about the benefits of customer they receive while doing shopping online, because there are many benefits of going online for shopping. And the Researcher is interested in to find the web site affects in creating customers loyalty. And the main thing is that the interest if the web site is offering some benefits to the customers that are in the interest of customers then it will automatically create the loyalty due to these interests and benefits. These days customers have their own interests in competition era, when the company is offering more and more benefits specially financial benefits and quality wise benefits then automatically the customers will attracted by those companies, and if the companies offered services and products quality meet the expectations of the customers then it more convenient for them to capture more clients from the market, and being online companies have more chance to capture new clients from all over the world.

Now due to World Wide Web (www) whole world become as global village.

 So main purpose of this question is to know about know the main advantage of customers to go online, and one thing more interesting is that people are quality conscious and they are also interesting in saving their time, and money, if a customer is living in other country then it is possible for him or her to make contact online directly with the company and can buy the product and in this way he or she will save time and money, and comparison he or she can make at the spot.

Now the graphical representation about the interests of people is given in the below chart, which is easy to understand for the people and examiner, and it will also helpful in making decisions and interpreting and in conclusions and suggestions.

No.5 What do you think that the contents of the website are easy to understand and give complete information about product?

Yes                  No

Answers in Tabular Form (Question No. 5)

Response regarding product informationMalesFemalesTotal Number of respondents
Yes393574
No156
Total404080

The researcher has designed this question to fulfil the requirement about the characteristics of effective website and this is the first and important factors that create the loyalty in the customers when no drawback of product is hidden from the customer. And customer thinks that the company has provided the relevant information regarding a product and in this way the customer after reading all the information about the product, he or she feels proud and confidence in himself or herself. And this is the first step towards the loyalty and after making comparisons with other competitors products and after making price and other comparisons it will create the loyalty among the customers, and when there is the loyalty and after consuming the products the customer will come to know about the quality and when he or she will find that there is no difference between contents and offered quality of product and his or her expectations, the customer will satisfy himself or herself and he or she will come again to visit the web site and will repurchase the product and tell the other friends and family and family friends members to buy the products and in this way the company will generate more and more revenue and will make more profit. But other factors the researcher will discuss in next questions. Now the researcher has made graphical representation of the primary data after storing it into tabular form as mentioned above, to understand in easy way.

No.6 What do you think that websites are most secure regarding money transferring?

Yes                  No

Answers in Tabular Form (Question No. 6)

Security regarding dataFemalesMaleTotal
Yes353974
No516
Total404080

These days many hackers and ant viruses are also there on the web site to attack and for capturing data for their purpose. So these threats are also there.

Now day people are afraid to make payments online, because people often use credit cards and debit cards or pay pall accounts to make payments or now some banks has offered to transfer money online which is most secure way, but while shopping if the company offer multiple mode of payment and make it sure that the data will remain protect and there is no chance of data stolen then the customers are more reliable to make payments online through debit cards or credit cards.

That is why the secure way and multiple mode of payments offered in the web site is another character of effective web site that will create loyalty in customers, because due to this feature the customer will feel more comfort and secure himself or herself and it will create loyalty, and this is the main objective of this research that how much effective website in creating loyalty.

Now after gathering the relevant data about this question from respondents, the researcher has recorded all of them first on paper sheet and then transferred them in computerized format and now for the examiner and for other purposes like analysis and making conclusion the graphical form will remain most suitable.

No.7 Does the website load quickly?

Yes                  No

Answers in Tabular Form (Question No. 7)

Website SpeedMalesFemalesTotal
Yes333770
No7310
Total404080

This question is about the efficiency of the website because some people become irritate when the web site takes lot of time and some time the session expired due to late response from company main server. To avoid these kinds of problems that people avoid to use those web sites that load later and they prefer to use those website that gave quick response. In this regard the researcher has designed this question that it is the also the main feature of effective website, now it is confirmed that effective website must gave response to the customers at high speed, in this regard the company should use latest technology and latest computer as servers to gave quick response for capturing customers. And when the customer will visit the website and he or she will receive quick response then it will possible for organization to retain and capture more clients otherwise if the website will gave late response then the customer will avoid to open the link of that website and resultantly the company will lose many customer per hours by a little mistake.

The selected pharmaceuticals company has latest servers and their system is so good means updating of information regarding any query is so fast that know about all the features.

No.8 Is the website properly designed and optimized?

Yes                  No

Answers in Tabular Form (Question No. 8)

Optimization of WebsiteFemales RespondentsMales RespondentsTotal respondents
Yes303363
No10717
Total404080

Optimization is the feature of the website, to search the website it is very important for the company to optimize the website so that when someone search through search engine, then the company’s website must be on the top ranking because people used to click on the links which are on the top regarding doing shopping on the top of the search engine and secondly the search engine in the website is the most important part of the effective web site and in this way the it become the characteristic of the effective website. People sometime want to search for specific results then through key words this facility must be there to find out the exactly information by remaining in the website to search the information. And the website must be designed according to all the features like while choosing colour scheme and other stuff.

The graphical chart has been designed by the researcher to identify the result about this question significantly.

No.9 Does each page of the website has contains the relevant information about the products?

Yes                  No

Answers in Tabular Form (Question No. 9)

Contents of the Website Pages regarding each productNo. Of femalesNo. Of malesTotal Number of Respondents
Yes353570
No5510
Total Number404080

As the selected company (Pharmaceutical Company) website all the features are included in the website and the website is effective and each page of the website has all the relevant data about the product but according to the title of the page, and this is another feature of the effective website. Sometimes the researcher has found that in some company’s website home page will full with the information but inside the website on other pages the information is missing, it creates bad and wrong impression on the clients and in the result the people did not go to click on those web pages and one thing is more interesting that the website should avoid to equipped with moving objects like birds and other moving object because customers did not like those moving objects on the websites because in this case their attention may be disturbed by moving objects and they may feel bad. Some time the clients is busy in reading specific information about a product and due to moving object repeatedly he or she may feel disturbance and stop working and closed the website.

No.10 Is the Web maps available at the website home page and is it beneficial for you?

Yes                  No

Answers in Tabular Form (Question No. 10)

Map Information about websiteMales respondentsFemale RespondentsTotal
Yes404080
No0000
Total404080

This question has two parts designed by the researcher, in the first part the researcher is interested to know about the importance of web map and in the other part of the question the researcher is interested to know about the loyalty of customer and its effects on the customer’s loyalty of web map feature. The researcher know that every feature has its impact to create and increase the loyalty of customers, but some features have more impact like directly that increase the loyalty as well as satisfaction level also increased in the customers like when offered quality meets the requirements of customers or expectations, similarly each feature of the web site (effective) has its own affect on the loyalty and satisfaction.

Web map means that some social aspects and the web site can display on the mobile devices and on I Pods and on some other devices. These maps include information about weather condition, currency converter, monitoring systems for vehicles, traffic maps, timetables etc.

If yes, is this helpful for you regarding in creating loyalty?

Yes                  No

Answers in Tabular Form (Question No. 10-2)

Creating LoyaltyMalesFemalesTotal
Yes404080
No000000
Total404080

As this portion was the second part of the question. As the researcher come to know through secondary research and through the meeting and questioning to the staff members of the company and come to know that web maps create loyalty in customers, because this feature provides such kind of information to the customers under one umbrella so that they use these kind of information free of cost, and they think that the company is caring about them at high level and offering them these kind of services free of cost. So to check this feature importance the researcher has designed this second question in order to know about the web maps facility and its impact on the customer’s loyalty.

No.11 Are you interested in more products online shopping in future?

Yes                  No

Answers in Tabular Form (Question No. 11)

Interest in Online as compared to Traditional wayFemalesMalesTotal
Yes353974
No516
Total402080

This question was asked to the customers that either they have interest in online shopping or not. So many of the people respond in yes, and majority of the people are interested in the online shopping, actually the researcher want to know about the main reasons and factors that why people are motivating towards the online shopping rather than traditional way. These customers already buying the products from the websites visiting but in the future they are ready to buy more products from the company’s website visiting to get more benefits and advantages.

If Yes, what is the reason behind?

Satisfaction, Loyalty, Quality, Discounts, Rewards, Time saving, Money saving, Security and Privacy

Answers in Tabular Form (Question No. 11-2)

Reason of repurchasingMales respondents / 40Females respondents /40Total out of eighty
Satisfaction meets404080
Loyalty Building404080
Quality satisfaction393776
Discounts333568
Rewards243660
Time savings404080
Money savings404080
Data Security393978
Privacy404080  
Web Maps363975
Easy to use354075
Time saving and low price (offers)373976
Convenient way of shopping353267
More reliable and Suitable383775
More variety, more alternative with comparisons404080

As in the response of first part of this question, when the respondents said yes that they are ready to do more shopping from the websites visiting due to the features they have the experience of them now the researcher has more interest in looking deeply that what are the main factors and motivators are there that customers are moving from traditional way to online way for shopping. That is why the researcher has designed this question. And after taking the response from the respondents the researcher has drawn the chart to understand the result in significantly so that data analysis is remaining and then the researcher will do more work on it like interpretation and make conclusion, now the data is only in the table form.

No.12 What factors company must consider while designing website to create more loyalty and satisfaction level?

More variety, Drawbacks of Competitors Products, Price Comparisons, Quality Comparisons, Volumes

Best Prices, Advantages, Benefits and Features of the product over the competitors products.

Comparisons of Prices and products

Answers in Tabular Form (Question No. 12)

Characteristics of web designMale /40Females/40Total/80
More variety353974
Best price393877
Price Comparison404080
Quality Comparisons393877
Drawbacks of Competitors Products403777
Features, Advantages and Benefits of all Products373673
More alternatives regarding Packaging, volume343771

This question was designed to know about the products and comparisons of competitors because the customer wants to know about the competitor’s products price and offered quality, in this way the customers may feel more comfortable himself and loyalty will more increase at is maximum level and satisfaction regarding quality and price. So that is why the researcher has designed this above question.

The researcher wanted that no any corner should left in order to find out all the factors that affect on the loyalty and satisfaction of the customers and the company can capture maximum market share from the market to earn more revenue and earn more profit by capturing and retaining the clients. The selected pharmaceutical company has about all the features but not comparisons features regarding price and quality comparisons and now day the customers focus on the quality and price factors very much as this has been shown in the below chart.

No.14 Is there any difference between offered quality and perceived quality of product?

Yes                  No

Answers in Tabular Form (Question No. 14)

Regarding Services Offered and Perceived

Difference in Offered Quality of Service and Products and PerceivedMalesFemalesTotal Respondents
Yes213
No383977
Total404080

This question was designed by the researcher to get the information about the customer’s satisfaction, that the customer’s who are using to buy online shopping from the selected pharmaceutical company are satisfied or not.

Regarding Quality Offered and Perceived (Question No. 14-2)

Difference in Offered Quality of Service and Products and PerceivedMalesFemalesTotal Respondents

Regarding Quality Offered and Perceived (Question No. 14-2)

Difference in Offered Quality of Service and Products and PerceivedMalesFemalesTotal Respondents
Yes325
No373875
Total404080

No.15 Which factors the companies should consider while developing websites?

Contents, Navigators, Comments Page, Products information, Calculators, Different mode of payment, Membership Form, Discounts, Colour scheme, Testimonials Information and their comments, Suggestions page, Price and quality comparisons of competitors, Career Page, User friendly, Competitors products comparisons all necessary.

Answers in Tabular Form (Question No. 15)

Factors and considerations while developing the websitesMalesFemalesTotal out of 80
Contents393978
Navigators353873
Comments333568
Products Information404080
Calculators323567
Different mode of Payments373875
Goods Colour scheme and attractive and easy design333972
Discounts353873
Membership Form333467
Testimonial’s Information and their comments about the products results after consuming373875
Suggestions353772
Price and Quality comparisons373370
User Friendly323163
Careers page that shows the social responsibility333164
All the necessary Comparisons w.r.t Competitor’s Products404080
Research and development353772
CEO statement313364

This question was designed to know that if any company want to launch its website and offer the facility to buy online and do the marketing online then what factors the company must be consider while website designing.

No.16 Is there any drawback of online purchasing?

Yes                  No

Answers in Tabular Form (Question No. 16)

Drawback of Online shoppingMalesFemalesTotal
Yes121123
No282957
Total404080

This last question was designed by the researcher to get the information about the drawbacks of online purchasing. This was very important. Actually the researcher want to know about the drawbacks of inline shopping in order to know about the factors that are affecting and improvements to remove those weaknesses.

Interview with Employees

The researcher has arranged a meeting with the staff members of the selected pharmaceutical company to gather primary data and asked some questions to them and collect the data.

What do you think about the importance of website?

The staff members including managers and web developers and other staff that handling complaints and daily business transactions and delivering department’s supervisors. In responding to the questions they told the researcher that today the world has become the village and the distances has been reduced due to new technology, people are living thousands miles away from each other but due to internet now it is possible for them to get information and buy products and they can book the order with no wasting of time and they can buy quality products and we are offering the best quality of products. Due to the website and internet yearly we are capturing 30% round about new customers every year and we are retaining the old client as well by providing them the quality services from order booking to delivering them the order. We focus on the quality of services and try our best to maintain the quality of services and we are trying to improve out services and we are trying to satisfy our customer at every cost. It is very important for us to create loyalty first of all among the customers and we are about successful in this way. Main important thing is the quality of services and products to overcome the problems of customers and understanding the expectations of the customers. By keeping all the characteristics of effective web site we updated and are updating on daily basis the company website and give the feedback and replied the customer’s queries well in time in order to satisfy them. Marketing strategies has been changed due to the era of computer science, and now the company research and development department is working on the needs and wants of the customers, the company main aim is to improve the quality of life, which is most important for us. Due to computer science era, now the communication has become so fast. We are also saving the cost of marketing strategies and marketing activities because we have no suppliers online from all over the world and the company has hired the best professionals from all over the world, in this way to provide best services and products the company has hired the research and development staff from all over the world and this way the employees are working in all over the world and we have warehouse all over the world and with the help of feedback, suggestions and opinions the company is giving more importance to the customer’s queries and opinions and suggestions to create loyalty and satisfaction.

Is there any change in the trend of buying online rather than traditional way?

Yes first of all before the online shopping and before the website development it was impossible to capture 10% new customers from all over the world but now a day the company is capturing more than thirty percent of new clients every year.

Now more than 60% orders the company is booking online, this means that now the trend has been completely changed and it will more change because in some rural areas of poor countries there is shortage of electricity and computer science and people are illiterate. But with the passage of time and more developments in the science and technology there will be more change in the trends. Because it give many benefits to the customers as well as benefits to the manufacturers. The customers has the direct relation with the company and in this way he or she has a chance to describes his or her expectations and level of satisfactions and his or her needs in a good way directly to the company, and by considering all those qualities and levels the company tried at best level to offer those products to meet the expectations of customers, and in this way the company is delivering best quality products and services to its customers.

Do you feel that what kind of problems customer’s face while purchasing online?

People are afraid while payments they done online. Because they are afraid that it might be possible that there is some kind of dough with them, and some time the customers are in need of a medicine on urgent bases but due to shortage of stock some time the company deliver the product sometime late. Secondly it is not an easy task to understand the expectations of the customers so that is why some time it is impossible for us to deliver the services and products as per customer’s expectations. And there are many issues with the website like the customers want calculators on the website, web maps and many other features on the website, like tracking systems and online transaction record and copy of receipt, but the main problem with them is to search the exact products, sometime the customers did not know about the exact product that meet their requirements and in such a way if the customer make contact with us then we suggest them the exact solution of their problem. There is no products and services comparisons available on the company website and customer are looking for it, they want to make first comparisons in price, quality and volume then they want to make a decision to buy or not, some other issues are also considerable like most of the new customer are afraid to make payments online. But when the customer buys one time our product or services then he or she become the loyal with us.

Is there any issue regarding website development and customer handling online?

We do not think so that but there are some major issues which are directly related with the website and customers, first of all the researcher came to know that computer science is every day changing, there are lot of changes in this field and it become the demand of time to make necessary updates in whole system. For example the antivirus system, complete backup storage and retrieving, coding, programming, integrating all the queries into one system is not an easy task, but any way it is demand of today business. On daily basis we received many complaints and suggestions and opinion to improve the systems and services, and 3000 employee are working in research department and in handling the customer’s complaints and some time they do not like to respond us well in time and ignored to reply. But it is the company’s duty to make a contact with clients and customers to solve their problem as soon as possible. The main problem these days is the comparison with competitor’s prices, volume of products and the quality. Customer’s need that there must be a wide range of products and alternative which is not possible. On daily basis updating the website in necessary but are some other issues are also related with development.

5          Analysis

In this chapter the researcher has described the data analysis on the primary data in detail.

In the first questions the researcher come to know that the majority of the customers are using internet in their homes, the primary data showed that 90% of the population has internet connections and 10% are not using internet connection at their homes, which shows that majority of the people has internet connection for different purposes.

In the second question the researcher found that most of the people spent time in surfing internet at their homes. The pie chart shows that57% of the people spent more than two but less than three hours daily on internet for different purposes, and 30% of the people spent less than two hours but more than one hour on internet. These two significant figures shows that people are using internet for some purposeful work.

In the third question the main objective of this question was to know about the reason that why people use the internet.

The above pie graph showed that 27 % people use the internet for online shopping and 24% people use the internet to pay their bills and payments and 15% people use the internet for education purpose, 24% people use internet for checking emails. And the 24% of the people are also doing shopping online and thus total become as 24% + 27%= 51% which is majority of the population.

In the next fourth question the researcher tried to get information about the benefits of online shopping the people do.

This above graph showed that people are about equally interested in main four benefits, they go for online shopping, 26% are benefited as satisfaction, 26% for quality, 24% financial and 24% for Time saving, means that all are getting same benefits.

In the fifth question the researcher has find out that web contents a feature of effective website has a significant impact on customers or not?

The result shows that 92% of the population has the impact of web contents, if there is detailed information is available about the product, then 92% customers are attracted by the website and it create loyalty among them.

In the sixth question the researcher has found that customers feel themselves secure, when they made payments through online, they do not have any problem regarding data stolen. They feel secure themselves when they are doing transactions online.

In this question the researcher main aim was to make it sure that, either people feel themselves secure, while paying through website. Because if people know that yes there is no any chance of fraud and misuse of their data, then they will make payments through online system either through debit card or credit card or through pay pall. And the respondents showed that 92% of the people have no complaints and they feel that money transferring through online system is secure. This is another character of effective website and these results showed that customer have loyalty and satisfaction on the company website and their policies and procedures. When people feel security it means that company is more responsible for their personal data securing. Remaining 8% do not feel security because either they may have any past experience of mistake or misuse of their personal data by any company or their data may be hacked by the hackers.

According to researcher analysis 92% is such figure that showed the reliability and validity about the response that money transfer through website is secure way. And customers have satisfaction and loyalty and believe on the company.

The researcher has responses regarding the speed of website loading time, because if the website take more time to load, then some time the customer become angry and prefer to open the website that respond him or her quickly.

This question was designed to know about the efficiency of the website regarding the speed that which kind of computer system and server the company has to run business. 87% of the respondents replied that the website of the pharmaceutical company has good speed, there is no problem they ever faced during the downloading of contents, but only 13% respondents have faced the website loading speed problem, and this problem is may be due to internet provider company systems and speed of internet. And the result showed that customers are happy with the high speed of website loading. And this is another feature of effective website that creates loyalty and satisfaction among its customers that do shopping online.

In the next question number eight the respondents replied that the website of the selected company has been designed effectively regarding its outlook, design, colour scheme and with proper key words for searching. Majority of the respondents replied that the website has contained all the necessary elements that are necessary to create loyalty and satisfaction among the customers.

The above pie diagram showed that 79% people are satisfied with the optimization of website, whereas 21% are not satisfied with the optimization of website because it is not easy task to design the website and optimized according to all people, but with the passage of time and as per opinions and suggestions the wed developer will improve it. Anyway 79% is successive rate. But this feature may need some improvements.

In the above figure, the 87% of the respondents showed their interest that individual page contents/product information is sufficient. But only 13% of the people are not satisfied with the information given on the individual page. The researcher found that the suggestions and opinion page has been designed to get the opinion of customer to make improvements in this way to make more effective website by updating the website design according to their need and requirements.

The above both pie diagrams showed that the website home page has contained sufficient information and very helpful information and 100% respondent are agreed with the design and with the contents given in the homepage are sufficient and they all were agreed that homepage contents are sufficient to create loyalty, because customers have to look into the website through homepage, that guide all the visitors, that what is inside the website. This page contains all necessary features about the website.

The researcher has found that 92% of the customer showed their interest in doing shopping online in the future and 8% did no showed their interest may due to lack of resources or they are not more satisfied due to some other reasons, now the researcher was interested to know about the reasons of more online shopping of more products online.

It is proved through the above chart that majority of the customers is interested in doing online shopping due to certain reasons like satisfaction, Rewards, Time save, Security at 100%, whereas some other reasons like they are loyal with the company and satisfied with the quality offered them in past, and all other reasons.

Here the researcher has found out that customer needs more information on the website in order to know about the competitors products that should be available on the website in order to create more loyalty and to improve the satisfaction level.

This above diagram showed that there was only 3% customers who have a difference in their expectations and offered quality of products, and 97% were satisfied at high level of satisfaction.

In the last question the researcher found out about the features of website home page that must be included in the home page to create more loyalty and satisfaction among the customers. They all are given below in the chart.

The researcher has found out the effective website features to create loyalty and enhancing satisfaction level among customers.

After meeting with the staff members of the company the researcher has found out that customer can be retained by offering quality of services and quality products and there are some certain features if the website contained all those features then it is possible to satisfy them at high level, through online shopping has an importance for the business organizations because due to internet technology it is now possible to capture more clients from all over the world but through efficient electronic marketing. Now people want to save their time and money that is why they are doing online shopping and it also depend on the website features to create the loyalty and satisfaction. Most of the people do not have such an issue while doing shopping online but there are some problems while handling them because they want more comparisons about the competitors products and some other features in the website. They are satisfied, but there is another problem with the knowledge of using website because marketing properly and online marketing effectively, and website features are the main factors that can enable them to create more loyalty and satisfaction level. Payments online is an issue with the customers because the customer are afraid of hackers, who steel the data online and can misuse the details and banking details and can take money from their bank societies. In this ways we need to improve our services. Customers mostly asked us about the comparisons of quality, volume and price with respect to competitor’s products and these moments we are in need of these improvements. One more compliant is that customers need very fast feedback regarding website updates and it is not possible at that moments, it takes time, while customer have any problem, our team look into the matter and tried at their best level to solve the problem. There are some other issues with the website like web maps, calculators, price comparisons, more variety, membership forms, discounts, and rewards, more information at product page needs improvement where these are necessary and some of them are important to include them in the website.

As per the response of focus groups the researcher noted that and analysed their discussions that there is no doubt that website has an important role in the capturing of new clients and retaining old client by offering quality of services and in time delivery. And one main thing is that the search engine optimization has its own impact. There company can create more loyalty and satisfaction level by adding all those features in the website as per needs and requirements of customers.

6.         Conclusion

Limitations of the research and conclusion

The researcher is a student and the researcher has conducted the research for academic purpose, and there were two main limitations, time and money. Being student, the researcher has afford all the arrangement by herself, all the expenses like refreshment to all respondents, travelling and all others like sitting arrangements and documentations. The other one main limitation was time, as she is a student and has conducted the research to fulfil the university requirement for completing the masters in marketing and innovation. Due to this limited time availability the researcher has chosen the specific number of respondents to collect primary data. The researcher has very short time to collect primary data from large number of population but the researcher has selected limited number of respondents to collect primary data. In order to know about the website characteristics that have influence on the customer loyalty, this was very short time, but by selecting the case study and conducting interviews of customers and staff members of pharmaceutical company and found that yes characteristics of website play an important role in creating the customer loyalty, and there is a significantly impact on the customer’s loyalty due to discussed characteristics. And due to these characteristics the website is called effective website. As per data analysis the researcher has concluded that through effective website customer loyalty can be created and as well as customer satisfaction also can be created. The aim of this research was to know about those factors/elements that become the characteristics of website secondly the researcher aim was to know about the effect of these elements/factors in creating customer loyalty and third one to know about the major element among all of them. So after analysis of the primary data and by keeping all the secondary data in the mind the researcher concluded that now day people are interested in the online shopping to save their time and for financial benefits, and to get good quality products to meet their needs and requirements. As per primary data gathered by the primary research the researcher come to conclude that there are many factors that together become a website effective and the efficient website can create loyalty and satisfaction among the customers and there are some other factors that can contribute towards more loyalty creation among the customers, so first of all the researcher will mentioned the factors that create the loyalty among the customers.

Serial No.FactorDescription
1Web DesignColour scheme, attractive colours
2NavigationMovements, link of pages, up down, left right movements of pages
3OptimizationSearch engine optimization
4Membership formTo become the member to earn points
5DiscountsOffers on buying online like (one buy one get free)
6Web MapsCurrency convertors, Weather condition, traffic maps, railway time tables etc
7QualityQuality of the products means expected output of the products, brand name, expiry date, volume, price, advantages, benefits and features of the products
8RewardsOn the basis of frequency of shopping in the past, and earning point free shopping or gifts
9Data SecurityPersonal data must be secured, no misuse of personal data, data must be secured like phone number, address, age, gender etc
10PrivacyNo one can trace the order and nature of the product if someone is interested in any specific products or service.
11Career pageCareer page shows that how much the company is social responsible
12CEO StatementCEO statement tells the customer that why the company is in the market, what is the mission statement with slogan and objectives and offerings.
13Different mode of PaymentThere should be different mode of payments, rather than one payment option like through pay pall account, debit card or credit card option or may be through telephone payments or through cheque payments.
14SecurityThe website must be secured from data hackers because peoples are afraid of personal data hacking and misuse of financial data. So the website must offer data security.
15SpeedWebsite and contents and web pages load speed effect the loyalty and satisfaction and retaining the customers.
16Feedback/opinion/ suggestion pageCustomers are interested in giving their opinions and suggestions about the improvements, so they feel proud of it, if their comments are appreciated by the web development team and the web developer make improvements in the website development for the ease of customers
17User friendlyThe website language the links, and information regarding each product must be easy to understand, and the product information must be in detail, because people are interested in it, as they want to know more and more about the product.

The researcher come to know that some people are afraid of the hackers that hacked the data and misuse the data like fraud from bank, and some people do not have computers and internet at their home. These above factors make a website effective and through effective website it is easy for company to create loyalty among customers by offering quality products. The primary research data showed that majority of the people consider the above factors as features of the website and they do online shopping and remain loyal with the company an feel comfort if the all above factors are included in the website.

Suggestions and recommendations

Some factors were missing in the website and thus some people avoid to do shopping online, like now a day people want to know more and more about the product in detail and they want to know about the comparison of competitors, they want to look at comparisons available on the website so that they can be recognize to make appropriate comparisons and feel more satisfaction among themselves and it will create more loyalty among them and they will again come to buy the product or services. Similarly there was lack of individual product detail on individual product web page, customers are interested in the more detailed information about each product, so the company must include the contents regarding each product in detail, and comparison like on prices, wide range of variety, quality of products, volume of the products must be given on the website. It will create more loyalty and enhance the customer satisfaction level. People will more move to make shopping online if different mode of payments online introduce in website for the ease of customers with appropriate data security mechanism and them through marketing activities the message deliver to the customers then it will more helpful, because some people avoid to do online shopping due to unsecure and only one mode of payment. Customers want that web development should appreciate them on their views and comments about the efficiency of website and features of the website so the company must understand the desire of the customers and provide them appreciation as per their comments and take in account their suggestions and opinions to improve the website in order to create more loyalty in the customers. The pharmaceutical company must try to handle customer’s complaints regarding delivery of the products well in time it will create more loyalty and improve the satisfaction level and quality of the services as well.

Further Research

There are many areas in which there is need of research to improve the efficiency of the websites and to create more loyalty. Through supply chain mechanism and customization of products can be more effectively area of research in this regard. The customer relationship department can improve the services in creating satisfaction. And there are some other areas like effective data security and other issues which are directly related to the customers, so in these areas more research can be conducted for more appropriate results.

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McAlexander, J.H., Kaldenberg, D.O. and Koenig, H.F. (1994) ‘Service quality measurement’ Journal of Health Care Marketing, 14, 3, pp. 34-40

Oliver, R.L. (1997) Satisfaction: A Behavioral Perspective On The Consumer. 1st ed. Singapore: McGraw Hill

Richins, M. (1983) ‘Negative Word-of-mouth by dissatisfied customers: a pilot study’ Journal of Marketing, 68, (1) pp. 105-111

Swartz, T.A. and Lacobucci, D. (eds), Handbook in Services Marketing and Management, Thousand Oaks, CA: Sage Publications

Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1985) ‘A conceptual model of service quality and its implications for future research’, Journal of Marketing, 49(1), pp. 41-50

Powell R.A. & Single H.M. (1996) ‘Focus groups’ International Journal of Quality in Health Care, 8, (5) pp. 499-504

Sheth, J.N. and Parvatiyar, A. (2000) Handbook of relationship marketing: Jagdish N. Sheth, Atul Parvatiyar, editors. 1st ed. Thousand Oaks, CA: Sage Publications

Today,service organizations are shifting their focus from “transactional exchange” to “relational exchange” for developing mutually satisfying relationship with customers. Extended relationships are reported to have a significant impact on transaction cost and profitability, and customer lifetime value. Serving the customers, in true sense, is the need of the hour as the customer was, is and will remain the central focus of all organizational activities. The retail sector or supermarkets industry, especially the super markets needs to be purely customer-centric and focus on the customer needs and duly fulfill them.

Customers will not blindly accept poor service quality from a Supermarket. They expect high quality of service in return for the money, they spend in Supermarkets. This paper is an attempt to explain the dark side of CRM in the segment of the Supermarket industry with the help of the ‘Gap Model’ referred to in literature which suggests that gaps in service occur at various instances. The author explains that the gap CRM is a useful tool to explain the dark side partly. There is more to the dark side like privacy issues, unwillingness of customers to build a relationship with the service provider, changing tastes and preferences of the customer. Sainsbury Supermarket has been chosen as a single case study and the research questions have been devised, addresses the industry at large, using a classic example of superior service quality to the customers. Some simple measures to reduce the dark side have been mentioned, which addresses the third and last research question.

The project would contribute as a useful guide for Supermarkets, provide them some valuable information on what the customer expectations are and if they are duly met then service gaps shall not occur. This research shall provide scope for Supermarkets to improve their overall service quality and strengthen their position in the industry. The relevant existing theory has been reviewed and the subject has been explored, using the ‘Gap CRM’ (Parasuraman et al 1998) mainly. Based on the research findings and analysis, recommendation has been given to reduce the dark side at this Supermarket and Supermarkets in general.

Chapter 1:         Introduction

1.1    Problem/ Introduction

People want to spend their lives with ease and for this purpose they want to spend the money to buy the products and they pay for the service just for overcome their problems and for the solution of their problems. Sometimes the customer’s problems are complex and sometimes they have the knowledge about the solution and sometimes they do not have knowledge about the solution (Bhote, 2007). Every person has its own psychology and based on the psychology every person has its own perception and needs and wants and to overcome them each person looking for the different solutions and all the business organizations cannot provide them the solutions as per their expectations because it is complex procedure to find out their expectations. To know about the solution of their problems and they ask to the family people, friends, family friends, colleagues and even then they surf the internet to find the proper solution of their problems. In order to gain the major portion of the market share from the targeted markets anywhere in the world that shows the basic advantage to the business organizations and in this way the organizations also can be able to create effective relationship with the clients and client’s majority also is the main indicator of organizational success (Bowen & Shoemaker, 2005). Some scholars have been stated that the customer relationship management department has so many responsibilities and this is the main reason of this departmental popularity that majority of the organizations have been adopted this department and this department has become the main reason of their sales and profitability due to its functionalities and its functions. When the people have their needs and they search for the product or service to overcome their problem then they buy and they pass through buying decision process (Buttle, 2005). So many factors affect their buying decision process, the customer relationship management with its highly skilled and well proficient workers they help the people in identification of their problems and provide them the solution. But here is a problem that the expectation or actual need or want is necessary to be recognized by the customer relationship management for the successful creation of happiness and positive experience and its positive outcomes. This is not an easy task to identify the actual nature and some time the actual wants and need and requirements of the clients so to solve this problem the customer relationship management can play its role positively and in this way the business organizations can achieve their targets well in time (Caruana et al., 2002). Customer relationship management is the only department that has the competencies to solve the client’s problems efficiently and can provide the organizations benefits in this way, mean in a single time double benefits to the organizations (Chi & Qu, 2009). As quality and price are also matter in the success of the organizations and no organizations can forget these two important factors, the advancement in technological sector and the change in the trends, values and norm especially the cultural change and the other actors like socio cultural factors which includes the income  (Chen & Popovich, 2004), age, fashion these all affect the thinking style and living style and these all factors have an impact on the decision buying behavior and thus the expectations and the needs and wants of the clients always change with the change in the above stated factors so it is very simple that individual’s needs and wants never remain same and this is an opportunity for the business organizations to avail for business profitability. And as the scholar have been stated that customer relationship management have the competencies to identify the individual’s requirements and the business organizations can be more benefited from the role of customer relationship management.

1.2    Title of Research

The role of customer relationship management department in identifying customer’s expectations to achieve organizational objectives (A Case Study of Sainsbury Superstore in Manchester U.K)

1.3    Research Question

What is the role and importance of customer relationship management department in identification of customer’s expectations to achieve organizational objectives?

1.4    Aims and Objectives of the research

In order to find out the objectives of this research the researcher has been divide the main aims into different and small goals called as objectives, as from the above title of the research it is very clear that the researcher was interested in find out the role and the importance of the customer relationship management in finding out the client’s expectations and their needs and requirements to find out the organizational objectives. Here in this researcher the researcher has been divided the main aim of this research that is the importance and the customers services department and its role in recognizing the client’s needs, wants and the expectations efficiently to increase the sales volume and to increase the profit margins and to get more and maximum clients from the market.  

There are the following objectives of this researcher

The researchers must have the aims and objectives of the research before selecting the research methods and adopt the research technique (Bennett, 2008).

The researcher will found out the main duties and functions of the customer relationship management in achieving organizational objectives.

The researcher will find out the significance and magnitude of the CRM department for the benefits of business organizations.

The researcher will find out the customer relationship management and its other relations with the other departments to fulfill the manufacturing requirements and other technicalities and to remove the complexities in the business operations.

The researcher will find out all those other factors those can have their influence on the success in both ways directly and indirectly.

The researcher will also find out those factors those have positive influence and impact in creating loyalty, happiness and satisfaction among the clients and the organization’s employees.

The researcher will find out the factors and skills which are necessary for the employees to handle clients for organizational success

The researcher will find out the factors those can lead the customer relationship management in identification of client’s needs and requirements and the success of the business organizations especially in the superstores in Manchester.

The researcher will find out the expected problems and issues related with the customer relationship management in the selected organizations in the future and also developed the recommendations and conclusions for the selected organizations for improvements and for the wellbeing of the organization.

The researcher will also find out the further study for the future aspects to conduct the other factors for identification of client’s expectations and needs.

1.5    Questions

The researcher has been designed the following questions to conduct this research to fulfill the above stated objectives by dividing these questions among the respondents in the questionnaires and conducting the interviews from the selected superstore management to found out the above stated objectives as well, the researcher has been stated them one by one in the following

What are the main duties and functions of the customer relationship management in the selected superstore?

What are the main connections of the customer relationship management with other departments of the selected organization to achieve its objectives?

How the customer relationship management is useful for the superstores in the United Kingdom in Manchester?

Do the clients have believed in the customer relationship management departmental strategies beneficial and helpful for them?

What is the customer relationship management role in the identifying and reducing the gap between the client’s expectations and perceived quality and how the customer relationship management can retain the clients by reducing that gap?

Which factors can play their role in identifying the factors to understand the gap existence and which factors can reduce them and help the organization to achieve organizational objectives?

Which skills are necessary to handle angry clients and how those skills and competencies can be improved to create loyalty among the customers?

How much the customer relationship management is useful in creating loyalty and satisfaction among the clients in an organization?

Is there any drawback of the existing difference between the expectations and the perceived quality of the products and services?

Why the customer’s expectation’s identification is so important and what are its benefits in achieving organizational objectives?

1.6    Research Scope

There are so many responsibilities of the business organizations in every sector in which those are operating or running their business operations which includes the salaries, electricity bills, payment for incurring the services of professionals, transportation expenses, managerial expenses and other expenses and to achieve the organizational objectives the organizations need some kind of resources. Human resources, financial resources and other resources, in the retail sectors the business organizations needs to achieve the organizational objectives for their existence and for their business operations and for their survival and growth. These organizations can only meet their expenses and their other expenditures when they are in a position to meet and achieve their financial objectives. These organizations can only achieve their financial objectives if they achieve their sales targets. Sales targets or revenue generation leads the organizations to earn profit and this profit leads the organizations towards their growth like in the form of expansion and in bringing more products in the product range. Sales can be made by the organizations if these organizations have the maximum market share, market share means the number or ratio of the clients from the target market, market share is directly proportion to the sales volume. After that the organizations can increase the market share possible if they have created strong binding with the customers and customers have trust on their products and service’s quality and price. Customers have their own perceptions and they have their own expectations, in the market the customers always bring their demand which become opportunity for the customers and organizations through research and development and through market intelligence came to know about the available opportunities and then they produce the products and services to avail those opportunities. When the organizations bring or introduce their products in the market as per customer’s expectations and if the customers buy them and after consuming they found that the results are as per their expectations and as per their demand and if the product’s results proved its worth then the customer’s will come again and they will the product again, and these happy and trusty and loyal clients will also bring other new or angry customers to buy the products then the market share will automatically increase the sales volume and organizations can earn more money in this way. Now problem is that with the change in environment and change in the thinking and life style their demands and their expectations never remained same and expectations always change. This research will find out the importance and role of customer relationship management in recognizing the customer’s expectations and offering them the expected products with respect to quality and cost to create loyalty and to increase the sales volume by identifying customer’s expectations by reducing the gap existing between their expectations and perceived quality of products and features of products and services. The results will able the organizations to amend their customer relationship management strategies and resources and business policies to minimize that gap between perceived or offered quality of products and services and their expectations (exact needs and wants) so that.  

1.7    Ethical Considerations/ Reliability and Validity

The researcher will adopt and follow the procedures strictly in order to gather and collect primary and secondary data very carefully and the validity and reliability of the primary and secondary data is always linked with the ethics. If the researchers follow the ethical considerations then the results are valid and reliable (Anderson, 2007). The researcher must follow the systematic way and must adopt the research method and avoid the unfair means for collecting data and making analysis on that to make conclusions and recommendations (Anderson, 2008). The researcher will not includes the animals, drunken people, and unconscious people as respondents and do not include the irrelevant people as respondents because these people de track the research work and mislead the researchers (Bennett, 2008). Here in this research the researcher will not disclose the data to anyone and will not steel other’s work and will not allow someone to steel his primary and secondary data, similarly the researcher will not use this work to obtain the other academic benefits.

1.8    Research Limitations

There are so many research limitations associated with a research and the skilled and competent researchers always eliminate them by following the research method in systematic way (Feagin, 2004). Due to research limitations the expected results can be infected (Flyvbjerg, 2007). There are some limitations and the major one is the time shortage as the research is completing its MA in marketing and Innovation and he has the time schedule to finalize and complete the research, so first one is the time and second main limitation is the financial resources and third is the experience. The researcher has no such experience of conducting the research in the past, so in order to bring quality of work and to eliminate these research limitations the researcher will generate the financial resource by himself and the case study will be selected by the researcher to conduct this research for obtaining specific objectives and the researcher will also use the interviews and will distribute the questionnaires among the 90 respondents to save the time and to achieve the expected results. The questionnaires and the interviews (mix of semi structured and structured) are the best way to follow these techniques to achieve organizational objectives in limited time period (Gefen, 2003).

Chapter 2:         Literature Review

2.1    Introduction

The researcher has been fully described in detail all the relevant secondary data, the researcher has been used the books, electronic books, articles and journals, electronic articles and electronic journals to gather secondary data and the researcher did not include the 9 years old data because some scholar Getty & Thompson, (2005) have been stated that with the time passage the demand, technology and way of life have been changed so the researchers should not include the 9 years old scholar’s statements in the secondary data. The fresh researchers and the scholar’s statements always bring reliability and validity in the research work (Gronroos, 2003). After gathering the data the researcher created the linked between the gathered data and the objectives of the research and then go ahead to conduct the research.

2.2    Organizational Objectives

Every business organization has its aims and objectives (Looy et al., 2004). According to the Macintosh & Lockshin, (2009) that aims and objectives of an organization are the basically set of statements that describes the purpose of the organization and the main purpose of the organizations are include the survival of the organization, enhancement in the profit and increment in the profit margins, the expansion of the organizational operations and enhancing the market share. The business organizations can achieve their objectives if they have been designed the organizational structures, functions, ethical codes, procedures and other resources and alignment of these resources (Oliver, 2002). Similarly the Parasuraman, (2001) has been stated that the customer relationship management is the department that can achieve the organizational objective efficiently. According to the Jones & Sasser, (2006) that the customer relationship management can achieve the organizational objectives by implementing the organizational strategies and policies and by creating loyalty among the customer’s by creating satisfaction and happiness among them. Similarly the Kandampully and Suhartanto, (2002) have been stated that the customer relationship management can offer the quality of services and products to the customers and the organizational objectives can be achieved by retaining the old customers and by attracting the new customers from the target market and by reducing the difference between the customer’s expectations and perceived quality of products and services. This statement has been supported by the Kim, (2006) by saying that the customer relationship management can play its role in increasing the efficiency of the organization by identifying the customer’s needs and wants and by reducing the gap between the customer’s expectations and perceived quality of products and services.

2.3    Customer Relationship Management Department

According to the Reicheld & Sasser, (2005) that customer relationship management department is consist of the major two kinds of departments first one is the modern technology and second one is the strategies and the mix of strategies and information system those enable the organization to achieve the organizational objectives in well manner by targeting the target market and customers and by paying attention on the customer’s by listening them and by creating loyalty and satisfaction among them.

Source: Author

According to the Reinartz & Kumar, (2004) that the customer relationship management process always revolve around the customer’s staff members, procedures, business operations, marketing strategies and policies and information technology and its application, customer relationship management always evaluates the needs and wants of customers, people, and other staff members and equips them with necessary tools and technologies and skilled them for achieving expected requirements. However according to the Helgesen, (2003) that the customer relationship management always designs the steps and set of steps we call them procedures, strategies and the policies, equipping the staff members with the quality of philosophy and capable them with new techniques and technology and tools and skilled them for achieving organizational objectives. Similarly some scholars have been supported this statement the Gundersen et al., (2003) have been stated that in the retail sector the customer relationship management is the responsible for creating satisfaction and loyalty among the customers and this department is responsible for the handling them and providing them the necessary support, this department is responsible for enhancing the sales and frequency of the customers to make shopping that’s why the organizations can earn handsome money. The Schlesinger and Heskett, (2003) have been supported the above statement by saying that customer relationship management is the fully responsible for creating and designing the strategies for the relationship marketing and the information technology and unites them in a systematic way so that the relationship can be created among the customers for making long term relationship with them for earning more profit and more benefits like growth from them by enhancing the sales volume and the earning more profit from the customers by increasing the market share ratio. Some scholars Reicheld & Sasser, (2005) have been stated that this is the customer relationship management department that provide the key successive opportunities to the organizations to keep and save the customer’s data in a meaningful way and use that data to understand their priorities and their nature and their requirements to offer them those suitable products for making profit and earning more money from market.

Source:            Author

There are so many functions of the customer relationship management department and this department is doing its job well in all organizations if the resources are available to this department. Customer relationship management has the skilled employees and has the sources to design and implement strategies and policies and procedures that can be helpful in identifying customer’s needs and wants and then as per these information the customer relationship management can offer the customer’s the products and services for creating happiness and satisfaction among them (Jones & Sasser, 2006). Some scholars have been stated that the customer relationship management can reduce the gap between the customer’s expectations and the offered products and services that enable the customer’s to buy products and services (Kandampully and Suhartanto, 2002). According to the Jones & Sasser, (2006) that the CRM department is only the extra financial burden on the organizations, because before the evolution of the CRM department the organizations were achieving their objectives successfully and the marketing and sales department were playing their effective role for achieving organizational objectives. this statement was also supported by the Macintosh & Lockshin, (2009) by saying that the organizations must pay their attentions and must keep their focus on the factors those can create awareness among the customers to understand the market demand and also keep in mind the employee’s welfare and all other activities must be considered those can lead the workers towards more productive attitude. It is the wastage of time and finance that the business organizations spend lot of money for the development of CRM department and then the whole structure and investment for this department, whereas the organizations can control their department efficiently through human resource department and by offering discounts and offers of value added services the organizations can achieve their objectives (Kandampully and Suhartanto, 2002). But according to the Jones & Sasser, (2006) the customer relationship management department is the responsible for the gathering data to know the customer’s details and their priorities and their expectations and after analyzing their data and their buying behavior this department also making a relationship between the different departments and making a clear link between them just in order to create the customers value and to make the customer’s chain and linking their different activities in achieving organizational objectives. In order to create values among the customers the customer relationship management designs the strategy and policies and plans and then implement them for retaining, and capturing new customers for increasing sales volume (Soderlund, 2010). It is the customer relationship management that can create the happiness and loyalty among the customers through effective policies and procedures implemented them at the business operations by identifying the customer’s needs and requirements (Kim, 2006).

2.4    Gap Model

In the market the customers have their own needs and wants and to overcome these needs and wants they went to the market to overcome their needs and wants (Jones & Sasser, 2006). The client’s expectations and their needs and wants are very important for the organizations (Jones & Sasser, 2006). Customer’s relationship management has the skilled and competent workers; those have the ability to understand the customer’s requirements and their priorities, the skilled workers have the abilities to analyze the customer’s data and after making analysis, and after handling them they come to know about their needs, wants and their priorities and then they can offer them the products and services as per their requirements and as per their expectations so in this way the difference between their expectations and their demands and offering services and products will be reduced and the happiness, satisfaction and loyalty will be created among them and the organizational objectives will be achieved (Kandampully and Suhartanto, 2002). Some scholars have been stated that there are different ways that can be used by the customer relationship management to identify and to recognize the customer’s expectations and then the organizational objectives can be achieved by the customer relationship management for achieving organizational objectives which are started with the identification of customer’s expectations and the gap model can be helpful for them to understand their expectations (Reicheld & Sasser, 2005). The below model was given by the Gronroos in 2001 that have been discussed all the gaps that can be created by the customer relationship management and because of them the customer relationship management could not perform well (Anderson, 2007). This statement was supported by the Anderson, (2008) by saying that because of those gaps the CRM department remains unable to identify the customer’s expectations and their needs and want in real and all other interests of customer which includes the quality and price of product and services. This importance of reducing these gaps have been stated by Bennett, (2008) that if the customer relationship management can identify the customer’s interests and facts and figure then in this way the business organizations can achieve the objectives effectively and the efficiency of the organizations will be maximum. Reicheld & Sasser, (2005) have been stated that the organizations do not need to understand the needs and wants of the customer in details because it will be the temporary benefits to the organization and in the future the competitors will take advantage of this opportunity, because the customer’s needs and wants always changed with the change in the culture, trends, norm and technology and in their buying behaviours and in their age, so the organizations must pay their attentions on the processes and latest technology to offer the customer’s the best quality of products and services at lowest price. The customers always tends towards lowest price and high quality, the buying power always tend the customer to buy from the suitable supermarkets those offer them the required products and services at cheap prices (Schlesinger and Heskett, 2003).

Bowen & Shoemaker, (2005) have been stated that the CRM department can achieve the organizational objectives by paying its full attention on the given gap model and by considering those key successive factors in the strategies and policies and after implementing those strategies into business operations the organizational objectives can be achieved successfully. Kim, (2006) has been stated that it is not necessary to understand the real facts and figures and the customer’s in depth and in detail because if the organizations will spend their money and other resources in identifying their needs and wants, and process that information and then produce the products for selling or offering, then there will be a big change in the entire procedures and process of industry in producing specific products for adding more quality at cheap price that will be ultimately lose to the organizations and in this way the organization could not achieve its objectives (Bowen & Shoemaker, 2005).

 

                              Gap # 1

Difference between Expectations and offered  

                                         

                                 Gap # 2

Offered them the expected products and services as per requirement  

                

 

                                   Gap # 3          

Gathering customer’s data and their expectation data  

 

                                       Gap # 4

Passing this data to the designing and production department, so that department can produce the products as per their requirements. To create the loyalty and satisfaction among the customers.   

 

        Gap # 5

Source:            Author

Some scholars have been stated that the organizations can achieve their goals and objectives if they come to know the customer’s needs and wants (Bhote, 2007). This statement was supported by the Bowen & Shoemaker, (2005) that the organizations can achieve their goals and objectives if they have customer relationship management department and the strategies and policies have been designed by them and implemented by them successfully, because the main reason of the CRM department is that through this department the customer’s needs and wants can be find out easily and the customer’s requirements identifications successfully can play its role in offering them the best option. Similarly the Buttle, (2005) have been stated that the organizations can achieve their targets effectively if they have CRM policies implemented effectively and efficiently then in this way the organizations can develop and produce the customer’s expected products and services and loyalty can be created among them for achieving organizational goals and objectives. Some scholars have been supported the best solutions of the gap between the customer’s expectations and perceived products and quality and their best solutions that in specific situation they can reduce the difference between the customer’s expectations and perceived products and services values to create loyalty and satisfaction among them (Getty & Thompson, 2005).

EventEvent Handling Solutions
  CRM worker have no skills to understand and collect real information related with customer’s needs and wants  This is the CRM departmental responsibilities to measure the worker’s performance and give them proper feedback and they can also use the surveys to understand their attitude and behavior with the customers and as per necessary requirements the management can arrange for the courses, trainings for the workers to equip them with suitable and required skills to gather data from the customers and make analysis on that data for positive input.
Secondly when the CRM department workers gather the real data and after analysis they pass that information to the relevant department for the manufacturing the products as per customer’s needs and wants then the misperceive occur between the staff members and the manufacturing department.In such situation the CRM department must check the communication effectiveness and must check the altogether system and skills of people sender and receiver and must watch the procedures and process of information sending and receiving, in this way this kind of gap can be reduced and can be removed, and this is very necessary for the CRM department to remove such kind of hindrances.
Due to low quality of product and services the customers make complaints and they do not know how to pass their correct information and that’s why the staff could not interpret the data and due to confusion the gathered information remains wrong and gap exist.  In such kind of situation the CRM department must pay its attention on the product information and on the marketing tools and messages and on the advertisement. If the correct information will be passed through advertisement to the customers then the customers can make complaints if they perceive wrong experience after utilizing that product and they can understand the staff workers about their problem and when the staff worker has the command about product functions then he or she will be in position to handle the complaints and can play its effective role in achieving organizational objectives.

2.5    Customer’s Loyalty and Satisfaction and role of CRM

According to the Anderson, (2007) that the organizations can only achieve their goals and objectives if they can successfully create the satisfaction among the customers and the satisfaction can be only created if the customers are happy with their past experience that they have been perceived after buying and utilizing the products and services, so the organizations must have to pay their attentions to create happiness among the customers. Similarly Anderson, (2008) has been stated that the satisfaction always comes due to the happiness and the satisfaction always leads the customers towards the loyalty and due to loyalty the customers will come again to buy the services and product to overcome their needs. However the Bennett, (2008) has been stated that the customer loyalty can play its role effectively for the organizational achievements. According to the Bhote, (2007) that the organizations can achieve their targets if they have properly implemented CRM department in the business and the CRM has been designed and implement the strategies for creating long and strong relationship with the customers to achieve company goals and objective in minimum time at minimum cost. In the support of this statement Bowen & Shoemaker, (2005) have been stated that the CRM department can play its role in creating the loyalty among the customers because the CRM department has the complete skilled workers, information system, IT support and latest technology, so with the usage of IT and latest technology the CRM department can handle the customers easily and can support them as well in creating loyalty as shown in the following figure.

Manufacturing, delivering products and service, taking customer’s feedback about their experience, review and update the requirements and priorities and record of the customers and then pass this information to the relevant department to review the products and services quality and price and other features.  

Some scholars Zeithaml et al., (2007) are not in the favor of customer relationship management and they said that the organizations are wasting their resources while establishing the customer relationship management department and while allocating other resources to that department for achieving organizational objective through its staff members by creating loyalty among the clients and by recognizing their demands and expectations, similarly Reicheld & Sasser, (2005) have been supported that the loyalty among the customers can be created through the staff members rather than through the CRM departmental staff members and in this way if the organization pay its full attention on the loyalty of employees and make them happy and create loyalty and productive attitude among them then in this way those workers will also achieve the organizational objectives. similarly the Schlesinger and Heskett, (2003) have been stated that the organizations can offer the customer’s the lowest price products with good quality if they create strong and loyalty among the staff members rather than to pay attention for the customer relationship management and in this way the organizations must achieve their targets, those organizations need to adopt the latest technology and the processes to reduce their cost and to increase the technology. According to the Getty & Thompson, (2005) that the new researchers have been proved that customer relationship management have positive impact on the organizational growth and the customer relationship management can only identify the customer’s needs and wants and can create happiness and loyalty among the customers  and in this way the loyal customer will buy the products again and again and they will call their friends and families to buy from them and the organizations can generate more revenue and they can make growth. Similarly the Caruana et al., (2002) have been stated that the customer relationship management is only the department that can play its role in creating loyalty and satisfaction among the customers by identifying the needs, wants, expectations and features f the expected products and services and by offering them the exactly products and services then ultimately and there is no doubt that the customer will be more happy and will be loyal and will come again to buy the products and services from that organization and will prefer to buy from that organization.

Happiness/ SatisfactionLevel of LoyaltyOrganizational growth
Buying, utilizing, getting experience and making comparison among the price and value (satisfaction or dissatisfaction)  Satisfaction will create loyalty, will create trust, customer will repeat and will call the friends and family and family friends to buy from that organization.Customer step in more, repetition, more sales, more generate more revenue, more profit, Organizational Growth

Looy et al., (2004) has been discussed that there is a link between the customer relationship management and the organizational objectives, and to understand this link first of all it is important to understand the link between the customer expectations and the organizational growth, that have been discussed above in the figure.

2.6    CRM and Quality of Services and Customer’s Complaints handling

According to the Buttle, (2005) that the customer relationship management is the department that have the very good and well equipped skilled and well trained staff members those can deliver the products and services to the customers at highest quality and can also handle the customer’s complaints in efficient manners and the skilled and highly trained staff members are the main core and strengths of the customer relationship management department. Whereas Caruana et al., (2002) have been discussed that to achieve the organizational objectives it is very important for the organizations to understand the demand in the market and then forecast the demand volume and then the core requirements of the customers and then check the availability of those products in the market, the customer relationship management gather these all kind of information and customer’s requirements as well and then offer them the expected quality of services and products to create happiness among them. Chen & Popovich, (2004) have been stated that customer relationship management is the department that has the ability to serve the customers with high quality and quality means the response of their call, quick and fast response, delivery of product or services as per their demand, as per their expectations with smile with better and polite and respective attitude and this department can also handle the customer’s complaints in efficient manners and change the mood of the customers and customer become happy and rather than to be angry they become happy and satisfied with the services offered to them. Chi & Qu, (2009) stated that it is very hard to understand the customer’s psyche because there are so many factors those can have their impact on the mood and on the demand of the customers so this is not been possible for the organizations to understand their demands and expectations. Feagin, (2004) have been stated that there is only way to attract new customers from the market and that is to offer them the products and services at lowest rate then they will come to buy those products, because now a day people first of all make comparisons before they buy the products. So the organizations can retain and can attract new clients from the target market by offering them lowest price products and services (Flyvbjerg, 2007). The customer handling is not an easy task but the customer relationship management can handle their complaints and can create loyalty among them by offering them the best solutions about their problems (Gefen, 2003). When the customer buy the products or services and after using they compare the results with values and their expectations then on the behalf of the result they become happy or angry, and the angry customers always make complaints and the organizations have the opportunities in this way to understand their complaints and review their processes and understand their weaknesses and try to improve them and also compensate the angry clients and to develop happiness and loyalty among them (Getty & Thompson, 2005). According to the Gronroos, (2003) that 98% angry clients make or register the complaints if they know the procedures and if the procedures are easy to understand, it means that organizations have another opportunities for creating and building strong and trusty relationship with customers by handling their complaints in effective way and with a little bit hard work by giving them the expected items and by compensate them the organizations can retain the old clients. And if the response of the staff member is quick and attitude and the behavior remain good, polite and kind and with smile face then the quality of services and product both will create loyalty and happiness among them.

2.7    Conceptual Framework of Literature Review

2.7.1  Introduction

In the following figure the researcher has been designed the conceptual framework for the above discussed review of literature so that the flow of work can be understandable for all people.

2.7.2  Explanation

Every organization has the objectives to achieve them the organizations invest money and arrange other resources and procedures and design the structures and all other struggle made by the other departments to achieve some kind of purposes that are called the aims and objectives of the organizations. So these organizations pay fully their attention on the customers because the services and products made by the organizations are always consumed by the customers and they try to remain happy their customers in the market, because they know that if the customers are happy then their products will be sold out otherwise there will be no business. In the above figure it has been shown that the organizational objectives can be achieved with the help of customer relationship management and especially with its skilled and equipped workers. The customer relationship management can play its role for the identification of customer’s needs and requirements (expectations) and in this way that information after analysis pass to the manufacturing department and in this way there are also benefits first of all the identification of client’s expectations and their requirements, secondly the resource wastage will be stooped and accurate information about the market demand will be passed to the manufacturing department. After that the products and services will be offered to the customers at cheap prices as compared to the competitors and the prices can be lowered by implementing the latest technology and procedures to manufacture the products. Then by handling the customer’s complaints the customer relationship management will also create the happiness that will lead them to wards loyalty and finally the organization can achieve the targets. The role of customer relationship management is also important from customer expectation’s identification to delivering them the expected products and services the customer relationship management plays its positive role and this because cause of organizational objectives in efficient manners. The customer relationship management can reduce the difference between the customer’s needs and wants and their expectations and can offer them suitable products and services to bring happiness and loyalty among the clients at maximum level. The customer relationship management department has its strengths which includes the highly skilled, well equipped and professional and dedicated people those are handling, keeping, updating taking feedback, opinion, views of the customers and making analysis on their data and offering them the best solutions just to offer them products and services as per their requirements by reducing or by minimizing the difference between the customer’s expectations and offered products and services. After using the products the client may could not be happy with the results it means there are two kinds of possibilities either the product was not suitable for the customer either the product features were poor and the customer become anger with the organization. Here is also an opportunity for the organizations to make and create happiness in angry customers by handling their problems and by removing, replacing and by compensating them the organizations can bring happiness among them. And all this is only possible due to effective customer relationship management department, because this department has the ability to deliver the customer valued and quality of product and services and by identifying the customer’s expectations offer them the expected products and services is playing its role for achieving organizational objectives.

Chapter 3:         Research Methodology

3.1    Introduction

In order to reduce the cost and to save the time and money and to bring quality in the work the researchers must adopt effective research method that will lead him towards success and will provide him a map (Anderson, 2008). The researcher has been discussed the research method adopted by him during this research conducting and the tools and the research techniques have been discussed by the researcher in this section. The research method that includes the sampling techniques, sampling selection, interviews and questionnaires and source of primary and secondary data has been discussed by the researcher in this section. it is very important for the researchers to keep the record of the research which includes the research techniques, sample size, procedure of selection of samples from the whole population, source of primary and secondary data, recoding system like tables, electronic form or printing format (Anderson, 2007).

3.2    Aims and Objectives of the Research

The researchers must have the aims and objectives of the research before selecting the research methods and adopt the research technique (Bennett, 2008). The main objective of this research is to find out the role of customer relationship management department in reducing and minimizing the difference between the customer’s expectations and perceived quality of products and services to create happiness, loyalty and satisfaction among the customers in achieving organizational objectives.

The researcher will found out the main duties and functions of the customer relationship management in achieving organizational objectives.

The researcher will find out the significance and magnitude of the CRM department for the benefits of business organizations.

The researcher will find out the customer relationship management and its other relations with the other departments to fulfill the manufacturing requirements and other technicalities and to remove the complexities in the business operations.

The researcher will find out all those other factors those can have their influence on the success in both ways directly and indirectly.

The researcher will also find out those factors those have positive influence and impact in creating loyalty, happiness and satisfaction among the clients and the organization’s employees.

The researcher will find out the factors and skills which are necessary for the employees to handle clients for organizational success

The researcher will find out the factors those can lead the customer relationship management in identification of client’s needs and requirements and the success of the business organizations especially in the superstores in Manchester.

The researcher will find out the expected problems and issues related with the customer relationship management in the selected organizations in the future and also developed the recommendations and conclusions for the selected organizations for improvements and for the wellbeing of the organization.

The researcher will also find out the further study for the future aspects to conduct the other factors for identification of client’s expectations and needs.

3.3    Research Methods

According to the Bhote, (2007) that the researchers must select the research method before they start to conduct the research and the research must be based on the specific aims and objectives. The researchers must select the best one option (research method) as per the aims and objectives to conduct the research and the research method always leads the researchers towards the success (Bowen & Shoemaker, 2005). The researchers must use the appropriate research method to conduct the research, first of all the researchers must know the limitations of their research and then they follow the research objectives and then according to their circumstances and resources they must follow the research method (Buttle, 2005). The research wants to achieve the research objectives then they must follow the research method very strictly, in this way they can gather the valid and reliable data (Caruana et al., 2002). It depends on the aims and objectives of the research to choose the effective and best research method follow by the researcher to achieve the organizational and research objectives in effective way (Chen & Popovich, 2004). According to the Caruana et al., (2002) that the researchers can use the qualitative or quantitative research method to conduct the research in effective way to achieve the organizational objectives, and the researchers can use both of them to conduct the research but it depends on the nature of the research on the nature of aims and objectives of the research. The researcher has been decided to choose the both qualitative and quantitative research methods to conduct the research. Because in this research the researcher needs the statistical data as well as the researcher main output will be the conclusion and recommendations.

3.3.1  Quantitative Research Method

In the quantitative research method the researchers gather the data and make analysis on the data that has been gathered by the researcher from some respondents and in this way the researchers first of all define the population and then after defining the population then based on the attributes and characteristics the researchers use techniques to select the respondents (Bhote, 2007). In order to make conclusions and the recommendations the researchers always collect the data through different means, some researcher use the questionnaires, observations, interviews to collect primary data (Bowen & Shoemaker, 2005). The quantitative research method will allow the researchers to make different analysis by using different techniques to gather primary data (Chen & Popovich, 2004). In quantitative research method the researcher play with the quantity rather than the quality.

3.3.2  Qualitative Research Method

According to the Getty & Thompson, (2005) that the researchers need to fist make hypothesis and then after making it they follow the procedure to conduct the research as per the research aims ad objectives, in this way the researchers need to conduct the research deeply as compared to the quantitative research methods. In the qualitative research methods the researchers need to select the best one case study one or more it depends on the available time and other resources and then the researchers make plan to conduct the interviews structured or unstructured and it depends on the nature and aims and objectives of the research and then they design the questionnaires for the research process. As compared to the quantitative method there is no involvement of statistical data because in this way the researchers only come to know about the motivational factors, reasons and understandings rather than to know the statistical data, all the conclusions and recommendations are made by the researchers always depends on the qualitative bases.

3.4    Research Tool (Case Study)

According to the Kandampully and Suhartanto, (2002) that the research tool have their own importance and the researchers must select the research tool before they start to conduct the research. There are so many benefits of the case study to the researchers and when the researchers have some limitations then the researchers must select the case study as a tool if they have short time and other limitations, in that situation the case study is very suitable and helpful for the researchers with shortage of time limitation and the researchers can gather valid and reliable primary data (Kim, 2006). Some other scholars have been stated that to save time and to bring more validity and reliability the researchers can select the case study as research tool (Looy et al., 2004). The researcher has been selected the Sainsbury supermarket in the United Kingdom situated in the Manchester center. The researcher has been chosen the Sainsbury super market in the United Kingdom as a case study tool due to some reasons

At the Sainsbury supermarkets the customer relationship management is working with its all features and have been designed the marketing plans and strategies for the handling customers and for achieving organizational objectives effectively.

The customer relationship management at Sainsbury supermarket is in operations with all its features and implementing its strategies and operations and integrating all other departments for achieving organizational objectives and the customer relationship management department is striving for recognizing the customer’s requirements and their expectations positively and effectively.

The customer relationship management department is also record keeping the customer’s data and also updating their records and assessing their priorities and their requirements and then after gathering the data the department make analysis on the data and made decisions on the behalf of that gathered data and then made the marketing decisions by considering these data into their minds while designing the 4 P’s of the marketing.

3.5    Source of Data

According to the Kim, (2006) that the researcher can use must select the source for primary and secondary data because it is very important for the researchers to find out the source for primary and secondary data. The validity and reliability of the primary and secondary data is always based on the source of data (Looy et al., 2004). The researcher has been defined the source for primary and secondary data which have been discussed below.

3.5.1  Secondary Data Source

According to the Gronroos, (2003) that the researchers must select the valid theories and scholar statements to gather secondary data and the resources must be valid and fresh scholar’s statements to gather valid and reliable secondary data. The researchers can use the books, electronics books, research papers, electronic research papers, articles and electronics articles and journals and electronics journals, websites and annual reports, news papers, press releases for gathering secondary data (Gundersen et al., 2003). The researcher will use the online resources which include the libraries, online books, online journals and articles and books, online newspapers and Sainsbury supermarket website on the topic of CRM role in identifying customer’s needs, wants and their expectations to gather secondary data. Then the researcher will make critics on the data as well and make it rational.

3.5.2  Primary Data Sources

The researchers can conduct the interviews and can distribute the questionnaires among the respondents to gather primary data, similarly the researcher can conduct online and offline surveys and can make observations on time watching the situations for gathering primary data (Helgesen, 2003). According to the Jones & Sasser, (2006) that the researchers can use many sources for gathering primary data which includes the online and offline sources, which includes the observations, case study tools, questionnaires and interviews and group discussion the researchers can gather valid and reliable primary data.

3.5.2.1          Questionnaires

The researchers can gather primary data of more consistency and of more reliability by distributing the questionnaires among the samples and the questionnaires must be designed by the researcher if he or she has the necessary skills to develop the questionnaires and the researcher must have the knowledge about the open ended, close ended, rating scale and all other types of questions and before designing the questions the researcher must have the knowledge about the aims and objectives of the research (Jones & Sasser, 2006). The distribution of the questionnaires and developing of questionnaires is not easy but it is a complex way to gather primary data (Kandampully and Suhartanto, 2002). The cheapest and quick way to gather valid and reliable primary data the researchers must use questionnaires for gathering primary data (Kim, 2006). The researchers must understand the communication system and its requirements and must understand the customer’s level of understanding then the researchers must develop the questions and the questionnaires must be distributed among the relevant respondents then the researchers can gather reliable and valid data (Looy et al., 2004). The real way to gather primary data and valid data the researchers must use the questionnaires technique (Macintosh & Lockshin, 2009). Minimum 80 questionnaires must be distributed among the respondents and each questioner must have the about 22 questionnaires in a questionnaire (Oliver, 2002). The researcher has been decided to distribute the 90 questionnaires among the males and females respondents with the age range from 20 to 60 years old respondents. The researcher has designed and develops the 20 questions for a questionnaire and 90 samples have been selected by the researcher to distribute among them.

3.5.2.2.         Interviews

According to the Bhote, (2007) that the interview is basically the two way conversation between the interviewee and interviewer with a specific purpose in which the researcher prepare the questions to gather real facts and figures as per the research aims and objectives. Similarly some scholars have been stated that to get the information on a specific topic and to get the facts for the specific area the researcher can gather the information from the respondents by conducting an interview, because the interviews are the effective techniques (Bowen & Shoemaker, 2005). The researchers can use the best and useful techniques and methods which includes the surveys and experiments and observations to collect real and fact information from the respondents for gathering primary data (Buttle, 2005). The researchers can use one of the interview technique structured that means closed interview or unstructured means open style of interview to gather primary data (Caruana et al., 2002). The researchers must conduct the interview with the field workers or with the administration to get valid and reliable data, because the administration and the field workers have the real and facts about the problems and advantages of technology and about the procedures, processes and strategies, more they have the experience about the real work and they have knowledge about the problems and their solutions (Chen & Popovich, 2004). The interviewer can use the open ended questions to gather answers in detail and the validity and reliability of the data is depend on the researcher skills and qualities and the quality of the questions (Chi & Qu, 2009). According to the Bhote, (2007) the researcher can conduct the interview for a specific problem. The researchers must try to avoid the unstructured interviews because in this way the researchers can become double minded because of the open questions and it will affect the validity and reliability of the primary data (Buttle, 2005). The researchers must use the structured type of interview because in this way the researchers can gather reliable and valid answers and those answers will be free of biasness (Bowen & Shoemaker, 2005). The researcher has been decided to conduct the structured interview and for that purpose the researcher has been designed the close questions to ask the respondents to gather primary data and the researcher has been designed the questions by keeping in mind and by considering the aims and objectives of the research. Together the primary data by using the interview technique the researchers must conduct the interview with the key position holders in an organization because in this way they can get the valid and most reliable data from them and the data will not contain the biasness and the researchers must make appointment with them and in advance let them know about the topic of the interview (Helgesen, 2003). The researchers must avoid to un necessary questions and they must avoid to make assumptions because assumptions and biasness always de track the researchers to achieve their aims and objectives (Jones & Sasser, 2006).

3.6    Population

According to the Bhote, (2007) that the population is the basically set of the people or population may be the set of the events from which the researchers can select the samples and all those people must have the same characteristics, they must be homogeneous not heterogeneous (Bowen & Shoemaker, 2005).

3.6.1  Sample

According to the Buttle, (2005) has been defined the sample that, sample is the group of people selected by the researchers from the population with some specific goals and objectives like respondents, to get some information from them, being the representatives of the population the respondents (samples) respond to the researchers. According to the Caruana et al., (2002) that there are different types of methods that can be used by the researchers to select the best sample from the population, those have been discussed below.

3.6.1.1           Non-Random Method

 The non random selection of the sample is the method that is used by the researchers for the medical purposes and the medical researchers use this technique to gather external validity of the study, and in this method the samples do not belong to the large population, whereas in this method the samples recognize the facts and figures about the samples (Chen & Popovich, 2004).

3.6.1.2           Stratified Random Sampling

In this way the researchers divide the whole population into small groups for example group of people with specific age range, with specific color or size or height then they select the samples from the sub groups (Flyvbjerg, 2007). The researcher will not use this method because the researcher needs to consider the whole population and will include the all customers with their age and will include both genders in the respondents.

3.6.1.3           Proportional Sampling

This method is used by the researchers to make it sure that the sub groups are well maintained and in the sub groups the people have contained the relevant characteristics or not, for example in a sub group the ratio of male to female is 20:30  (Gefen, 2003).

3.6.1.4           Cluster Sampling

In the cluster sampling the researchers get the samples when there is large number in a population and it is very important for them to find out specific factors and variables, and they need very small number of samples from the whole population  (Getty & Thompson, 2005).

3.6.1.5           Simple Random Method

In this way the researchers other than the medical study adopt this method to identify the samples to gather facts and figures about non medical factors like in the business related researches the researcher use this method (Chi & Qu, 2009). The researchers use the simple random method to find out the samples to conduct the research in different areas and they want to disclose the different variables and factors to find out the motivations and reasons of motivations when there is a large population and it is not been possible for the researchers to involve whole population in the process of research method and then they identify the samples from the population (Feagin, 2004). The researcher in this research will use the random number like 5th or 6th or 3rd or 11th customer in the Sainsbury supermarket and then every 5th or 11th or 7th customer will be considered as respondent. While conducting the research in customer relationship management the researchers must include both the male and female as respondents and their age must be starting from the 20 years and maximum age should be 65 but no more 65 and not less than 20 years, then in this way the researchers can achieve their goals and objectives associated with the specific research (Gronroos, 2003). The researcher must identify the respondents before dividing the questionnaires among them and must make the schedule before going to conduct the interview (Gundersen et al., 2003). The researcher has designed the table that shows the sample size.

GenderRespondentsAge Range in (Years)RatioTotal
Male4520——–6550%45
Female4520——–6550%45
Total90  90

From the above table it has been mentioned that the researcher will distribute the questionnaires among the 90 samples and the researcher will distribute the questionnaires among males and females and there will be no any kind of discrimination on the basis of religion, color, ethnicity, disability, young or old, the researcher will not include his own opinion in the primary data. The researcher will make analysis on the data by using authentic statistical tools.

Chapter 4:         Data Analysis and Presentation

4.1    Introduction

The researcher has been discussed the tools and ways in this section in detail to conduct this research. The researchers must use the tables to record the primary data to avoid the duplication of result (Bhote, 2007). The researchers must calculate the ratios and percentage of the numerical values and also find out the relationship among the different variables and must understand their dependencies on each other (Bowen & Shoemaker, 2005). The pictorial representation of data can be more effective as compared to simple numerical values do the graphs, bar charts and pies charts can be used by the researchers to represent the outcomes of their research (Caruana et al., 2002). Sainsbury is the big supermarket in the United Kingdom that is offering its best services and products in different areas like grocery, toys, clothing, kitchen stuff, toilet stuff, bakery, food items, cosmetic, embroidery, pharmacy and optician and clothing and in financial sector as well. The Sainsbury has customer relationship management department that is running its strategies and business operations successfully with other departments and trying its best in identifying the customer’s requirements and their needs and wants and reducing the differencing between the requirements of customers and the quality of products and services offered to them for creating happiness and loyalty among them for achieving organizational objectives.   

4.2    Questionnaires

The researcher has designed the following questions by keeping in mind all the aims and objectives of this research and the researcher has the sufficient skills and abilities to design the questions open ended and close ended and their results have been also discussed here below.

Q:        What is your main purpose to visit Sainsbury?

Answer:

AnswersMaleFemaleTotal
For a visit004
For shopping41403
For making price comparison0040
For job interview1033
With family member352
Total454090

Some scholars have been stated that the customer step in the super markets to buy the products and the hiring the services to solve their problems and to overcome their needs and wants for which they entered the supermarkets (Anderson, 2007). The researcher wants to know the main purpose of the customer’s that they came to the supermarket, as in the tables it has been showed that majority of the people came for buying products or hiring the services from the super market.

The researcher came to know after making the bar charts and pie charts. The charts are showing that majority of the people 91% of the people come to the Sainsbury supermarket to buy the products and hiring the services. The people those come with their family members to support them and to help them while making their decisions for buying products and for hiring the services from the superstore their ratio is 7% only and the people those came for job interview is only 2 percent and the people those came for job interview are 0% and the only for general purpose is also 0%, so from the above results it has been cleared that majority of the people come to buy products.

Q:        Are you regular customer at Sainsbury as shopper?

Answer:

RespondentsYesNoTotal
Male321345
Female351045
Total672390

The table and the bar chart shows that majority of the people are the regular shoppers those buy the products and services from the Sainsbury supermarket and their percentage is 74% whereas the rest of 26% are the people those come to buy from the Sainsbury but they are not regular buyers. The 26% is not negligible percentage and the opportunity is available in the market to attract new customers from the market and this figure shows the performance of customer relationship management at Sainsbury as well.

Q:        Are you satisfied with the products and services offered by the Sainsbury?

Answer:

RespondentsYesNoTotal
Male331245
Female321345
Total652590

According to the Bennett, (2008) that the satisfaction always leads to the loyalty and satisfied customers always play their role for achieving organizational objectives in increasing the sales volume and the in increasing the revenue for the organization. The researcher has been designed this question to know about the satisfaction level of the customers.

From the above table, pie chart and bar chart it has been cleared that the only 72% of the people are satisfied with the products and services of the Sainsbury whereas only 28% of the people are not satisfied with the products and services of the supermarket. The 28% is a big percentage which shows the performance of the customer relationship management and on the other hand the CRM department could not perform its duties and its strategies are not good and its policies are not effective and they need to review their policies and strategies and plans to find out the weaknesses and after improving their strategies and policies they must avail the opportunities for maximizing the market share for the supermarket.

Q:        Do you think that the CRM department is playing its role in identifying your requirements and needs and wants at Sainsbury supermarket?

Answer:

RespondentsYesNoTotal
Male301545
Female271845
Total573390

Some scholars have been stated that the customer’s requirements and their needs and wants are the main important players in the CRM departmental in designing effective strategies and policies for achieving organizational objectives (Chi & Qu, 2009). The researcher has designed the above question as per in the light of above scholar’s statement and the results were recorded by the researcher which showed that majority of the responded that they have believe in the role of CRM department.

The above pie and bar charts are showing that 63% of the people are completely satisfied with the products and services offered by the Sainsbury and 37% of the respondents have been responded that they are not satisfied with the products and services. According to the scholars that after consuming the products and services the customers came to know about the effectiveness and efficiency of the products, and they become angry or satisfied, if they receive the results as per their expectations and as per their needs and demands then they become happy and satisfied otherwise they become angry (Anderson, 2007). And 37% of the people are not satisfied with the products and services of the organization, which is not negligible amount.

Q:        Why do you buy from Sainsbury, select the best option?

High Quality

Lower Prices

Full range of Products

Unique Features of Products

Value added services

Money back Guarantee

Answer:

FactorsYesNoTotal
Quality30  
Price12  
Product Range8  
Unique Features5  
Value added services5  
Money Back Guarantee   
Convenient30  
Total90 90

Helgesen, (2003) has been stated that the people buy from super stores to overcome their needs and wants if the products are available, some people buy because of quality, lower prices, unique features, long expiry dates and some people are convenient because their home location is near the superstores, they do not have time to go at other places. So the researcher has made the above question to know about the main reason of the customer that they buy the products from the superstore. As shown in the table that the majority of the people buy from the Sainsbury supermarket because they found high quality of items from the supermarket, second one due to low price and a majority of the people just buy the items because they are most convenient it means that their homes are near the store, or the opening and closing time is suitable for them.

Both the pie and bar charts have been showed the main reason and the main interest of the buyers are quality of the products which is about 33%, and after that 13% are the people buy from supermarket because of the low prices, 9% buy because of the products range, or availability of the products, 6% buy because of the value added services, 6% because of the unique features of the products and 33% of the people buy because they are convenient.

Q:        Why you buy the products from the superstores, select the appropriate option?

To overcome their needs and wants

For enjoyment

For satisfaction

For loyalty

For spending money

Answer:

Reason of buying products and servicesYesNoTotal
To overcome needs and wants90090
Enjoyment000
Satisfaction000
Loyalty000
Spending money000
Total90090

According to the Parasuraman, (2001) market is a place where buyer and seller meet together, the buyer came to overcome its needs and wants and seller also come to sale the products. The researcher wants to know the reason that why people buy the products from the supermarkets and about 100% responded that they come to buy products to solve their problems.

Q:        Do you believe that products and services as per your expectations and requirement can create happiness and satisfaction among you?

Answer:

RespondentsYesNoTotal
Male45045
Female45045
Total454590

According to the Looy et al., (2004) that the CRM department can identify the customer’s expectations and other factors and can implement those strategies and policies to understand customer’s priorities for achieving organizational objectives, if the CRM department has the proper resources and well trained and equipped workers. The researcher has designed the question to understand the effectiveness of customer’s expectations. And the result was stored in the above table.

The above table, pie and bar charts have been showed that 100% of the customers have been responded that their expected and required products can create happiness and satisfaction among them.

Q:        Are you sure that if Sainsbury supermarket offer you products as per your expectations then you will buy the products from them?

Answer:

RespondentsYesNoTotal
Male45045
Female45045
Total90090

The organizations can maximize their market share if they provide the customers products and services as per their requirements and their expectations (Oliver, 2002). The researcher has designed this question to understand the opportunity in the market, that if the organizations provide the customers as per their needs and requirements then they can maximize the market share.

1005 customers have been stated that yes, if they perceive the products and services as per their expectations and the requirements then they will buy from the supermarket to overcome their needs and wants.

Q:        Which factors are important in identification of your expectations, select the appropriate so that the CRM department must consider them for developing the strategies to identify your expectations?

Low Price

High Quality

Unique Features

Volume and size

Ingredients

Risk Free

Low carbon emission

Range of Products

Availability of products

Money back guarantee

Answer:

FactorsYes
Low Price87
High Quality90
Unique Features88
Ingredients80
Risk Free90
Low Carbon Emission90
Money Back Guarantee90
Range of Products`90
Availability of products90

According to the Schneider and Bowen, (2008) that there are so many factors that can help the CRM department in identifying their expectations and the CRM department can play positive role in reducing the difference between customer’s expectations and offered quality of services and products.

Majority of the respondents have been responded that the main factors are low price, high quality, unique features, risk free, money back guarantee, ingredients and low carbon emission and availability of the products and range of products these factors can play their role in the identification of their expectations. And the CRM department can play its role in identifying their expectations and can create satisfaction among them. Majority of the respondents have been responded 100% in the favor of the asked factors.

Q:        Are you sure that the customer relationship management is helpful for you in handling your complaints and delivering you the best opinion and solution for your problems?

Answer:

RespondentsYesNoTotal
Male43245
Female42345
Total85590

Customer relationship management can provide the best solution and can handle the client’s complaints in effective way, and the skilled and equipped workers can provide the customer’s support in creating loyalty and satisfaction among them with their productive behavior and attitude (Jones & Sasser, 2006).

The respondent came to know that 94% customers have been stated that they are sure that the customer relationship management is helpful in handling their complaints and offering them the best option. Whereas the only 6% are not agreed with the statement and they do not believe in CRM activities.

Q:        Are you sure that CRM department can create satisfaction and happiness among you while identifying your expectations and offering you products and services as per your requirements?

Answer:

RespondentsYesNoTotal
Male41445
Female40545
Total81990

Some scholars have been stated that the only CRM department is responsible for creating loyalty and satisfaction among the customers while handling their complaints and offering them best solution, and it can be only done if the workers have sufficient resources and authorities.

90% of the customers have been responded that CRM department can create satisfaction by handling their complaints and can offer them the best solution of their problems. Only 10% are not believe in the efforts and strategies and policies of the CRM department, this is because of their past experience or they may do not have knowledge about the importance of CRM department.  

Q:        Do you agree that there is a difference (gap) between your expectations and products and services’ quality those you received from the Sainsbury supermarket?

Answer:

RespondentsYesNoTotal
Male45045
Female45045
Total90090

There exist a gap between the customer’s expectations and the quality of the services and products of the organization those customers offered and in the result the customer’s become angry (Helgesen, 2003). The researcher wants to know about the difference between the customer’s expectations and the offered quality of products and services, and the above table showed that all the respondents have been responded that yes there is a difference.  

The above bar chart and the given below pie chart have been represented that 100% of the respondents have been responded that there is a difference between their expectations and the quality of the products and services. No single respondent said that the products and services are as per his or her expectations.

Q:        Are you sure that CRM staff member’s attitude and behavior is good and they behave with you politely and they tried their best to understand your problems?

Answer:

RespondentsYesNoTotal
Male351045
Female331245
Total682290

CRM department can create satisfaction and can identify customer’s problems and their other expectations by their attitude and their behavior (Kandampully and Suhartanto, 2002). The researcher wants to know the attitude and behavior of the CRM department for identifying customer’s needs and wants.

The researcher came to know that the 76% of the customers are agree that the CRM departmental workers attitude and behavior is so good and they treat their customers in well manner to identify their expectations and offering them best solution of their problems. But the remaining 24% which is not negligible ratio are not happy with the CRM employee’s and their attitude.

Q:        Are you sure that CRM department is trying its best to reduce the difference between your expectations and the quality of products and services those you perceived?

Answer:

RespondentsYesNoTotal
Male331245
Female291645
Total622890

According to the Macintosh & Lockshin, (2009) that CRM department can increase the quality of services and products and can find out the solution for the customers for achieving organizational objectives

The 69% of the respondents have been responded that the CRM department is reducing the difference between their requirements and expectations and quality of items and customers whereas the 31% of the respondents are not agreed with the researcher statement. And these are significant customer those have not believe in the CRM department’s efforts.

Q:        Are you sure that CRM department can offer you the expected products and Services and can create happiness and loyalty?

Answer:

RespondentsYesNoTotal
Male351045
Female351045
Total702090

The researcher made this question to understand the role of CRM department in creating loyalty and happiness among customers because some scholars have been stated that CRM department can create loyalty among the customer (Oliver, 2002).

The charts showed that the 78% of the respondents has been responded that CRM department can offer them the expected products and services whereas 22% of the people do not believe in the CRM department efforts for offering them the expected items and services.

Q:        Do you agree that CRM department can increase the market share after attracting new customers from the target market and can create satisfaction among them?

Answer:

RespondentsYesNoTotal
Male40545
Female41445
Total81990

This question was made by the researcher to understand the knowledge and awareness of the customers about the customer relationship management role in increasing market share for the organization.

The respondents have been responded and about 90% which is the clear majority have been responded in positive sense that yes the CRM can play its role in increasing market share from target market, but only 10% people were not agreed with the researcher.

Q:        Please select the select the best options with priority that which factor or factors can be helpful in creating loyalty among the customers?

Answer:

FactorsResponseTotal
Fast response9090
Attitude and behaviour9090
Promises9090
Price Discounts9090
Brand positioning9090

Reicheld & Sasser, (2005) have been stated that there are so many factors those are very important to consider by the CRM department in creating loyalty among customers which includes quick response, brand positioning, honor promises, employee’s attitude and behavior and high quality and price discounts.

All the respondents have been responded that the successive factors are fast responses, attitude and behavior of workers, price discounts, promises and bran images or brand positioning are the main factors those can play their role for creating loyalty among the customers. All the respondents have been responded 100% that each factor is important and necessary.

Q:        What was employee’s response when you registered complaint against a product or service and are you satisfied with the response and quality of response?

Answer:

RespondentsMaleFemaleTotal
Yes383977
No7613
Total454590

The 86% of the respondents have been responded that they are satisfied with the response of the CRM workers. They registered the complaints against the product and services and they get the feedback and they are satisfied with the feedback. Only the 14% are not satisfied with the response and feedback of the workers in handling their complaints.

Q:        Do you agree that CRM department has skilled and well authorized workers those provide you quick response?

Answer:

RespondentsYesNoTotal
Male321345
Female331245
Total652590

Customer relationship management can provide customers quality of services because they have the highly skilled workers (Oliver, 2002). The researcher designed this question because the researcher was interested to know about the skilled workers at CRM department in Sainsbury super market.

The 72% respondents have been responded that the staff workers of CRM department are well equipped and they have sufficient skills to handle their complaints. The remaining 28% have been responded that the CRM department did not have the skilled workers.

Q:        Do you agree that CRM department take your feedback properly and update your priorities and keep in touch with you in understanding your requirements?

Answer:

ResponsesMaleFemaleTotal
Yes351045
No331245
Total682290

The CRM department must take customers feedback and their opinion to redesign and review the marketing 4P’s for creating happiness and satisfaction among the customers (Parasuraman, 2001).

The majority of the respondents like 76% have been responded that CRM department is taking their feedback and their opinion to identify their expectations and to offer them the expected items and services the 24% customers have been stated that the customer relationship management is not taking feedback from the customers.

Q:        Do you agree that the CRM department must improve the skills and knowledge and well equip the CRM workers and must improve the communicational skills to handle your complaints?

Answer:

ResponsesMaleFemaleTotal
Yes153045
No202545
Total355590

Customer relationship management must review and update the skills and knowledge of the customers so that they can perform well and can contribute effectively in achieving organizational objectives (Parasuraman, 2001).

The respondents have been responded that 39% have been responded that the staff members need to update their skills and knowledge because these respondents have believe that it is necessary to update their skills and competencies to find out their problems and offering them best solution. 61% have been stated that the CRM department employee’s have sufficient skills and equipment and knowledge to understand their requirement.

Q:            Are you sure that there exist a relationship between the satisfaction and happiness, loyalty and sales of organization?

Answer:

ResponsesMaleFemaleTotal
Yes434285
No235
Total454590

There exist a direct relationship between the expected products and happiness and happiness always create satisfaction and the satisfaction always leads the customers towards success, and when the customer will become loyal that will come again to buy and will share happiness among others being social responsible and in this case the sales will increase (Powell & Single, 2007) .

About 94% have been responded that yes there exist a relationship between the customer’s loyalty and the increase in the organizational objectives. Only the 6% have been responded that no there is no any relationship between sales increase and the loyalty of customers.

4.3    Interviews

The researcher has designed the questions close ended for the structured interviews conducted with the key management of customer relationship management at Sainsbury supermarket in Manchester United Kingdom. The researcher has been designed the questions by keeping in mind the aims and objectives of the research.

Q:        What is the role and responsibilities of the CRM department at Sainsbury supermarket?

Answer:

The respondents have been responded and researcher has been recorded their answers as follows.

Identify the customer’s expectations by making strategies and policies and by implementing those policies and strategies the CRM department is responsible for reducing the difference or gap between the customer’s expectation and their perceived quality of product and services.

Understand and find out the customer’s needs and their requirements

Deliver them the value added services and products as per their needs and requirements

Solve the customer’s problems and offer them the best option of solution

Creating satisfaction, loyalty and happiness among the customers by all means

Handling customer’s complaints and providing them the compensations and the provide then best solution

CRM department always make communication with the customers and assist the sales team and marketing team, advertisement team and all other departments and make it sure that all the departments are working with alignment and all operations are working properly in identifying customer’s expectations.

The CRM department create, manage, update customer’s data and make analysis on the data and make conclusion and involve this data in the decision making.

Generating and updating reports for customers.

Creating long term relationships by providing well and effective services to the customers as per their requirements

Q:        What is the flow of work in CRM department at Sainsbury in reducing difference between the customer’s expectations and offered quality of services and products?

Answer:

The researcher has designed this question and the researcher design the flow of work and the flow of procedure of CRM department at Sainsbury in the given below diagram.

The researcher came to know that customer relationship management perform some multiple duties and perform different tasks to create long term and profitable relations with the customers.

The CRM department has the knowledge that there are two types of customers

Quality conscious

Price Conscious

The quality conscious customers always pay the price for buying the quality product and services, whereas the price conscious always buy the product with lowest cost. And in the Sainsbury Superstore the main focus of the CRM department is to design the product and follow the 4P’s of the marketing as per the gathered information and analyzed data from the customer during the record keeping, during gathering information from them while during surveys and while giving feedback and while updating their record and while handling their complaints. The CRM department pass such analyzed data to the manufacturing department and the manufacturing department then process that information and shape this information into new product or service and offer to the customers in the market to buy and overcome their problems. The flow of the process and work is given below in detail in the following diagram.

Source:            Author

When the customer buy the products as per their expectations then they become satisfied and then they again come to the supermarket to buy those products and they also told other people about their successful experience with their friends, family members and colleagues, and in result the sales volume increases. It means that the CRM department is identifying the customer’s expectations and then offering them expected products to increase the sales volume by reducing the gap between the customer’s expectations and perceived quality of products and services in Sainsbury Manchester United Kingdom.

Q:        Do you believe that there exist a difference between the customer’s expectations and the quality and values of the products and services those they buy from the supermarkets?

Answer:

The respondents have been responded that yes there exist a difference between the customer’s expectations and their requirements and the values and quality of services and products those they buy and come to know after using those items and products.

There are following steps taken by the CRM department at the Sainsbury in identifying that difference.

Each customer allocate a unique code

Generate unique file (database) for the unique customer

Their age, interests, income level, race, ethnicity, hobbies and expectations have been recorded periodically

CRM department involve the customers in online and offline surveys to ask them about their interests and about their experience after consuming the products and get their feedback.

CRM department then conduct surveys open in the target market and conduct research to find out the customer’s requirements which includes the following factors and variable

Price

Quality

Prompt response

Online queries response

Complaint handling and refunding money, replacement of products and services and paying compensations

Taking opinion

Offering them full range of products under single floor

Provide them facility of delivery at their home door

Price discounts

Offers like buy one get one free

Commitments (honoring the promise)

Q:        How the customer relationship management policies and strategies are playing their role in minimizing that difference (gap) for creating loyalty among customers?

Answer:

The customer relationship management is trying its best to reduce this difference between the customers by offering them the products as per their requirements. The CRM department is doing the following steps to reduce the difference

Collecting customer’s data

Collecting their interests

Collecting their priorities

Collecting their priorities

Gathering their feedback

Gathering their interests

Gathering their hobbies and other factors like their age, income level, position, religion, food habits, dependents, job nature and living style

Frequency of shopping

Life style

Savings

And after collecting and updating their requirements like

Fast response

Honoring promises and offering them price discounts

Unique features of products

Value added services

Discounts and offers

Guarantee and warrantees offering

By handling their complaints and offering them the suitable products, compensations and replacements for identification of customers needs and wants

Then making analysis on the gathered data and then CRM department pass that information to the manufacturing department and then after redesign the products and including unique features, CRM department offer those products and services to the customers for creating loyalty and satisfaction among the customers.

Chapter    5:      Conclusions and Recommendations

5.1    Conclusion and Limitations

The researcher has been selected the case study tool (Sainsbury Supermarket) to save the time because the researcher have been already discussed in detail that the researcher has shortage of time and financial limitations, being the student in MA in marketing and Innovation at Anglia Ruskin University the researcher will submit the report to pass the examination and for saving time the researcher has select the case study to save time. The financial resources were also limited and the researcher has been done all the resources from his own means and some resources were allocated by the selected organizations. The researcher had no experience of conducting research in the past that’s why the researcher has used the interview and questionnaires techniques to save the time and to conduct the research in effective way. The people come to the supermarket for buying purpose or they come along with their family members (Anderson, 2008). It has been cleared that majority of the people 91% came to buy products for shopping and some of them about 7% came to buy the products or for hiring the services from the Sainsbury superstore, and the total percentage of the people become as 98%, there are main reasons that the people are satisfied with the products and services and they might be loyal with the supermarket or it means that the prices are low or it means that the quality is good and they found all those necessary items from the super market. The researcher make a conclusion that the majority of the people like 76% people are regular customers at Sainsbury and the other 26% are not regular. It means that the 74% are the satisfied and loyal with the supermarket whereas the 26% are not loyal. CRM department in an organization is responsible for creating satisfaction and loyalty among the customers at maximum level if the department has been allocated proper and necessary and required resources and then the department has been implemented those strategies successfully and the CRM department must identify the requirement of the customers (Bowen & Shoemaker, 2005). It has been cleared that 28% of the people are not happy with the products and services and they are not satisfied with the results of the products. According to the scholars that there are main two factors those can attract the customers to buy the products and the services (Bhote, 2007). As the results have been showed that majority of the people are satisfied with the products and services whereas the 37% more than the one third are not satisfied with the quality of services and products and their results, it means that 37% of the people are not happy and they are not loyal and they will switch to other organizations. According to the Anderson, (2008) that no customer no business, and Bennett, (2008) has been stated that the angry customer switch themselves and the organizations have to bear the switching cost and in this way the organizations must try their best to retain the angry customers by the effective strategies of CRM department for creating loyalty among customers. As the Jones & Sasser, (2006) have been stated that the majority of the people buy because of quality of products, lower prices, convenient, range of products, unique features and value added services, and these factors always play their role in the customer’s buying decision making, and customer relationship management can identify these factors and the priorities of the customers and redesign the products as per customer’s needs and wants and then offer them for achieving organizational objectives. 33% of the customers just buy because of conveniences and the CRM department can identify their expectations by developing and implementing effective strategies and policies for achieving organizational objectives. Majority of the people have been stated that the expected and required products can create satisfaction and happiness among them. Expectations always leads to the happiness and angry, and happiness always leads towards satisfaction and loyalty and loyalty of the customers always leads towards success of business organizations (Oliver, 2002). People are ready to buy from the supermarket if the products are available as per their requirements and expectations, and in this way the happiness and satisfaction will be created. The researcher concluded that the customers demand always derived from the specific factors which includes low price, high quality, availability of products, range of products, ingredients and risk free and unique features of the products. The researcher came to know that about 94% believe in the CRM department functions and its responsibilities and its efforts and they are sure that this department can solve their problems effectively. Effective media channel can play its role in creating awareness among the customers about the effectiveness and responsibilities of the CRM department so that customers can take advantage of this department by providing them the necessary feedback and their opinions about the products and services. All the respondents are not getting products and services as per their expectations and it are necessary for the organization to understand their expectations, because in this way the customers may switch to other organizations in the future. Customers switch from one organization to other organizations to overcome their problems and their loyalties also switched and the organizations have to bear this cost as well (Jones & Sasser, 2006). A significant ratio 24% of the customers is not happy with the CRM worker’s attitude and behavior and they are not happy with their complaints handling activities. And these people do not believe in that CRM department could not perform effectively in identifying their problems and offering them best solutions. This response of customers indicates their past experience, because happiness or unhappy attitude always comes from the past experience (Kim, 2006). About 31% of the respondents have been responded that they are not agreed with the CRM departmental efforts in identifying their expectations and their wants. Majority of the people believe in the role of customer relationship management positively for achieving organizational objectives and for increasing market share and for identification of customer’s requirements. Majority of the people have been responded that there is no need to update CRM employee’s skills and equipments and 39% which is significantly a large amount of people those have been responded that the CRM department need to improve its worker’s skills and their competencies for finding out their problems and offering them the best solution. The CRM department must update and revise the training sessions to improve the worker’s competencies and their skills to play role very positively and effectively for achieving organizational objectives. The researcher came to know that the CRM department is playing its effective role in identifying the customer’s requirements effectively and playing its role in identifying customer’s requirement to reduce the gap between the expectations and quality of items those they buy from the products.

5.2    Recommendations

  1. The majority of the people are not satisfied with the supermarket and they are not loyal with the supermarket. So the customer relationship management must keep in consider all those factors to create the satisfaction and loyalty among the customers and to create satisfaction among them and to build strong relationship between the customers and the supermarket for earning more profit and for earning more revenue. The customer relationship management must focus their strategies and policies for creating loyalty among the customers and review their procedures and policies and must alignment the other departmental procedures for creating loyalty and happiness among their customers and supermarkets (Chen & Popovich, 2004).
  2. The customer relationship management must review the policies and find out the factors those can play their role for creating satisfaction and loyalty among the customers, 28% of the people come to buy due to some other reasons but they are not regular customers and they are not loyal and satisfied with the customers. After reviewing the policies and procedures to advertise the product’s features and to offer those features to the customers and must keep in mind that those promises and features are being honored by the CRM department on time, in this way the organizations can maximize the market share effectively, but it can be possible when the CRM department effectively create the loyalty among the customers after understanding their expectations. It is the only customer relationship management department that can identify and understand the customer’s requirements and reduce the difference between the customer’s expectations to achieve organizational main financial objectives (Caruana et al., 2002).
  3. CRM department must start to review the policies and must pay its attention on the identification of the customers and then as per gathered data the CRM department must produce the products and services as per their needs and wants. Some scholars have been stated that for maximizing the market share and to achieve the organizational objectives (Buttle, 2005).
  4. CRM department must review the skills and competencies of the staff members against the standards and measure their performance and plan for their personal development to update and improve their weaknesses and to improve their skills and competencies for handling client’s complaints because the customers believe in the CRM department’s efforts in identification of their priorities and their expectations.
  5. Customer relationship management can pay its vital role in recognizing their priorities and their expectations and all those factors those can play their role for offering them suitable products with specific features so that organizations can achieve their objectives and goals (Kandampully and Suhartanto, 2002). The customer relationship management must focus on the priorities of the customers and must make such system and policies and implement them for understanding the customer’s needs and wants like lower prices, high quality, full range of products, and 33% of the people those buy because of the conveniences are the big opportunities for the organization to create loyalty among them and this can be done only if the CRM department can successfully identify their expectations. According to the Kim, (2006) that people buy because of high quality and low price but the products must be available in the markets and they must know the features of the products, price discounts, unique features and availability of the products are the sales boosters.
  6.  The selected organization can create happiness and satisfaction among the customer if they offer the people products and services as per customer’s requirements and expectations. So the CRM department must consider these main factors and must design the strategies and policies to identify their expectations and then after designing the products as per their needs and requirements they can create satisfaction. Satisfaction and happiness always leads the customer towards loyalty and loyalty will leads the organization for building long term and profitable relationship with customers (Macintosh & Lockshin, 2009).
  7. Customer relationship management must pay its focus on identifying the customer’s expectations and must reduce the difference between their expectations and offered products and services values and quality so that happiness and satisfaction can be created among them.
  8. The CRM department must consider the lower price, high quality, full range of products, availability of products and risk free and unique features in the products and services and money back guarantee must be included in the products while designing the strategies and policies for attracting new customers from the target market and for retaining old customers while creating satisfaction and loyalty among them. The CRM department must install the latest technology and latest procedures for reducing the cost and for maximizing the quality (Schlesinger and Heskett, 2003).
  9. The CRM department must pay its attention in creating its effectiveness among the customer’s because it is very important for the organization when the CRM department can create the awareness among the customers then they will come to the CRM department for registering their complaints and they can be benefited and the organization will also benefited from this opportunity. So CRM department must consider its advertisement policies and must select the effective media channels to create awareness of CRM among customers.
  10. Customer relationship management must review its procedures and skills and competencies of the workers and must update their skills and competencies. CRM department must review and redesign the development programs to improve and update their skills and competencies to handle customers (Looy et al., 2004).
  11.  The organization must pay its attention and specially the customer relationship management must review the development plans and programs and must update them with the latest technology and tools to make their workers equip with latest technology of IT and psychology to achieve organizational objectives.
  12. The management of the Sainsbury supermarket must provide the resource to the customer relationship management department to accomplish its tasks and in achieving the organizational objectives and to adopt the new latest and updates technology, processes and procedures to offer the customers products at lower costs but with high quality of products as compared to the competitors to achieve competitive advantages as well, to create satisfaction and happiness among the customers by reducing the gap between the customer’s expectations and the products quality and by offering them products and services as per their requirements.

5.3    Future Research

The researcher came to know that there are some other areas which are necessary to be taken into considerations by the researchers to conduct research on them because for the creating loyalty and satisfaction among the customers and to reduce the difference between the customer’s expectations and offered products and services values and quality to increase the loyalty among them for achieving organizational objectives. The researchers must consider the factor like lower carbon emission products at low price because the people will buy those products and the opportunity is available in the market, because the people are now social responsible and they want to play their role for saving their environment and in this way the organizations can play role for increasing market share.

Chapter 6:         References and Bibliography

a.      Books and Journals

Anderson, E.W. (2007) Cross Strategy variation in customer satisfaction and retention, Marketing Letters, 13(34), pp: 212-346

Anderson, W. & Mittal, V. (2008) Strengthening the satisfaction-profit chain, Journal of Service Research, 21(14), pp: 197-334

Bennett, R. (2008) ‘Relationship formation and governance in consumer markets: transactional analysis versus the behaviourist approach’ Journal of Marketing Management, 35(13), pp: 217-356

Bhote, K.R. (2007) Beyond Customer Satisfaction to Customer Loyalty: The Key to Greater Profitability. 2nd ed. New York: AMA Management Briefing

Bowen, J. & Shoemaker, S. (2005) ‘Loyalty: a strategic commitment’ Cornell H.R.A. Quarterly, 31(16), pp: 323-445

Buttle, F. (2005) Customer Relationship Management: concepts and tools 3rd ed. Oxford:

Elsevier Butterworth-Heinemann

Caruana, A., Money, A.H. and Berthon, P.R. (2002) ‘Service quality and satisfaction-the moderation role of value’ European Journal of Marketing, 35(11), pp: 735-9360

Chen, I.J. & Popovich, K. (2004) ‘Understanding customer relationship management (CRM):

People, process and technology’ Business Process Management Journal, 15(11), pp. 522-977

Chi, Q. & Qu, H. (2009) ‘Examining the structural relationship of destination image, tourist satisfaction and destination loyalty: An integrated approach’ Tourism Management, 27(9), pp: 345-654

Feagin, J., Orum, A., & Sjoberg, G. (2004) A case for case study Chapel Hill, NC: University of North Carolina Press

Flyvbjerg, B. (2007) ‘Five Misunderstandings about Case Study Research’ Qualitative Inquiry, 21(11), pp: 413-762

Gefen, D. (2003) Customer loyalty in e-commerce, Journal of the Association for Information Systems, 22(11), pp: 323-467

Getty, J.M. & Thompson, K.N. (2005) ‘The relationship between quality, satisfaction, and recommending behaviour in lodging decision’ Journal of Hospitality & Leisure Marketing, 15(22), pp: 313-527

Gronroos, C. (2003) Service Management and Marketing, 4th ed. Manchester: John Wiley &

Sons Ltd.

Gundersen, M.G., Heide, M. & Olsson, U. (2003) ‘Hotel Guest satisfaction among Business Travellers: What are the Important Factors?’ The Cornell Hotel and Restaurant Administration Quarterly, 25(9), pp: 345-557

Helgesen, O. (2003) ‘Are Loyal Customers profitable? Customer satisfaction customer action loyalty and customer profitability at the individual level’ Journal of Marketing Management, 26(10), pp: 675-823

Jones, T.O. and Sasser, E. (2006) ‘Why satisfied customer’s defects’ Harvard Business Review, 17(11), pp: 234-375

Kandampully, J. and Suhartanto, D. (2002) ‘Customer loyalty in the hotel industry: the role of customer satisfaction and image’ International Journal of Contemporary Hospitality Management, 26(13), pp: 464-652

Kim, H. (2006) ‘Developing an index of online customer satisfaction’ Journal of Financial Services Marketing, 26(11), pp: 345-587

Looy, V., Gemmel, P. & Dierdonck, V. (2004) Services Management: An Integrated

Approach, 3rd ed. London: Pearson Education Publishers

Macintosh, G. & Lockshin, L. (2009) ‘Retail relationships and loyalty: A multi-level perspective’ International Journal of Research in Marketing, 35(12), pp: 312-413

Oliver, R.L. (2002) Satisfaction: A Behavioral Perspective On The Consumer. 1st ed. Singapore: McGraw Hill

Oliver, S.L. (2002) ‘A Cognitive Model of the Antecedents and Consequences of satisfaction Decisions’ Journal of marketing Research, 17(9), pp: 524-778

Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (2001) ‘A conceptual model of service quality and its implications for future research’, Journal of Marketing, 37(19), pp: 434-653

Powell R.A. & Single, H.M. (2007) ‘Focus groups’ International Journal of Quality in Health Care, 29(9), pp: 423-558

Reicheld, F.F. & Sasser, W. (2005) ‘Zero defections come to services’ Harvard Business Review, 22(9), pp: 315-489

Reinartz, W. J. & Kumar, V. (2004) ‘The impact of customer relationship characteristics on profitable lifetime duration’ Journal of Marketing, 25(11), pp: 456-578

Schneider, B. and Bowen, D.E. (2008) Understanding customer delight and outrage, Sloan Management Review, 22(9), pp: 409-523

Schlesinger, L. and Heskett, J. (2003) ‘The Service-Driven Service Company’ Harvard Business Review, 55(9), pp: 523-740

Soderlund, M. (2010) ‘Customer satisfaction and its consequences on customer behavior revisited: The impact of different levels of satisfaction on word-of-mouth, feedback to the supplier and loyalty’ International Journal of Service Industry Management, 18(9), pp: 327-678

Sugandhi, R.K. (2008) Customer Relationship Management. 5th ed. New Delhi: New age

International Publishers

Zeithaml, V.A., Pasuraman, A. & Berry, L.L. (2007) Delivering Quality Service: Balancing Customer Perceptions and Expectations. 2nd ed. New York: The Free Press

b.      Websites

http://www.sainsburys.co.uk/sol/index.jsp [Accessed on 13th June 2013]

http://help.sainsburys.co.uk/ [Accessed on 16th June 2013]

http://www.sainsburys.co.uk/sol/index.jsp?GLOBAL_DATA._searchType=0 [Accessed on 11th June 2013]

https://www.sainsburys.co.uk/sol/my_account/global_login.jsp?bmUID=1373248216026 [Accessed 24th June 2013]

c.      Bibliography

Chi, C. and Qu, H. (2009) ‘Examining the structural relationship of destination image, tourist satisfaction and destination loyalty: An integrated approach’ Tourism Management, 30(15), pp: 535-756

Choi, T. and Chu, R. (2001) ‘Determinants of hotel guest’s satisfaction and repeat patronage in the Hong Kong hotel industry’ International Journal of Hospitality Management, 20(12), pp: 277-297

Faullent, R., Matzler, K. and Fuller, J. (2008) ‘The impact of satisfaction and image on loyalty: the case of Alpine ski resorts’ Managing Service Quality, 28(22), pp: 163-178

Gilbert, D. and Horsnell, S. (1998) ‘Customer satisfaction measurement practice in United Kingdom hotels’ Journal of Hospitality & Tourism Research, 22(14), pp: 450-464

Su, A.Y.L. (2004) ‘Customer satisfaction measurement practice in Taiwan hotels’ International Journal of Hospitality Management, 22(9), pp: 397-408

Chapter 7:         Appendices

Questions

Q:        What is your main purpose to visit Sainsbury?

Q:        Are you regular customer at Sainsbury as shopper?

Q:        Are you satisfied with the products and services offered by the Sainsbury?

Q:        Why do you buy from Sainsbury, select the best option?

High Quality

Lower Prices

Full range of Products

Unique Features of Products

Value added services

Money back Guarantee

Q:        Do you think that the CRM department is playing its role in identifying your requirements and needs and wants at Sainsbury supermarket?

Q:        Why you buy the products from the superstores, select the appropriate option?

To overcome their needs and wants

For enjoyment

For satisfaction

For loyalty

For spending money

Q:        Do you believe that products and services as per your expectations and requirement can create happiness and satisfaction among you?

Q:        Are you sure that if Sainsbury supermarket offer you products as per your expectations then you will buy the products from them?

Q:        Which factors are important in identification of your expectations, select the appropriate so that the CRM department must consider them for developing the strategies to identify your expectations?

Low Price

High Quality

Unique Features

Volume and size

Ingredients

Risk Free

Low carbon emission

Money back guarantee

Range of products

Availability of products

Q:        Are you sure that CRM department can create satisfaction and happiness among you while identifying your expectations and offering you products and services as per your requirements?

Q:        Are you sure that the customer relationship management is helpful for you in handling your complaints and delivering you the best opinion and solution for your problems?

Q:        Do you agree that there is a difference (gap) between your expectations and products and services’ quality those you received from the Sainsbury supermarket?

Q:        Are you sure that CRM staff member’s attitude and behaviour is good and they behave with you politely and they tried their best to understand your problems?

Q:        Please select the select the best options with priority that which factor or factors can be helpful in creating loyalty among the customers?

Q:        Are you sure that CRM staff member’s attitude and behaviour is good and they behave with you politely and they tried their best to understand your problems?

Q:        Are you sure that CRM department is trying its best to reduce the difference between your expectations and the quality of products and services those you perceived?

Q:        Do you agree that CRM department can identify your expectations and can sort out your problems?  

Q:        What was employee’s response when you registered complaint against a product or service and are you satisfied with the response and quality of response?

Q:        Do you agree that CRM department has skilled and well authorized workers those provide you quick response?

Q:        Do you agree that CRM department take your feedback properly and update your priorities and keep in touch with you in understanding your requirements?

Q:        Do you agree that the CRM department must improve the skills and knowledge and well equip the CRM workers and must improve the communicational skills to handle your complaints?

Q:        Are you sure that there exist a relationship between the satisfaction and happiness, loyalty and sales of organization?

Interviews

Q:        What is the role and responsibilities of the CRM department at Sainsbury supermarket?

 Q:       What is the flow of work in CRM department at Sainsbury in reducing difference between the customer’s expectations and offered quality of services and products?

Q:        Do you believe that there exist a difference between the customer’s expectations and the quality and values of the products and services those they buy from the supermarkets and how the customer relationship management policies and strategies are playing their role in minimizing that difference (gap) for creating loyalty among customers?

Q:        How the customer relationship management policies and strategies are playing their role in minimizing that difference (gap) for creating loyalty among customers?

PESTEL Analysis Political, Economical, Social, Technological, Environmental and Legal Factors

Organizational Introduction

ASDA is a bid super store chain in United Kingdom and offering both tangible and intangible products to the potential customer since many decades and with the passage of time ASDA is also updating its business operation with regards to all thing which includes range of products, range of services, range of quality of services and products and playing its role being social responsible for the progress of United Kingdom and for the betterment of public.

Current Business Position

Mostly PESTLE analysis is used by the researchers to analyse the current situation of any business anywhere.

Political Factor

According to Acemoglu and Jackson, (2011) that the customers are paying a lot of money to the government in terms and in shape of value added tax and increment in the employee’s wages. Being the social responsible the ASDA tried it’s best to offer products at reasonable prices to the potential customers, whereas political factor has put a negative impact of organization on the superstores industry in United Kingdom.

Economical Factor

According to the Benfield, (2008) that increment in wages of labour, electricity, fuel, tax rate, profit margins these all factors play role in economic situation and per capita income also represent the nation’s lives status. In this era customer are really worried about their income levels and about high prices and current economical situation is not so good and there are bad impacts on the ASDA customers and business is so slow.

Social Factors

Obviously due to high prices more tax rates people are not happy and they are price conscious rather than quality conscious and they are willing to buy low price products and services.

Technological factors                                                                                        

According to Byars, (2005) that latest technology play its effective role in cost minimization and organizations can get advantages of latest technology and can also take advantages over the competitors. ASDA has adopted latest technology and offering low cost to the customers. Due to advance and latest technology the ASDA has advantage of low cost in all areas of business activities.

Environmental Factors

According to the Capron and Glazer, (2003) that due to weather conditions sometimes the imports are delayed and it has bad impression on the customers and organizations suffered from this delay. In United Kingdom tourists visited the country they buy food, clothes and all other stuff online as well as physically visits to ASDA and increase the revenue.

Business Planning and Strategy

Objectives

ASDA has the following main objectives which are discussed below and relevant strategy to achieve them is also discussed. ASDA has an objective to capture more new clients and retain the old and will capture market share this year about 88%.

ActionInitiativeResourcesDate of completion
Identify clients requirementsAdvantages for the clients must be declaredEmployees  November 2013
As per client’s requirements developments in the quality and services and designing products as per client’s requirementsConduct surveyEmployees  November 2013
Expansion, review Product, price, placement and promotional activities as wellNew ideas to offer and deliver message and making new commitmentsEmployeesNovember 2013
Focus on high quality products and services, and low pricePromotions as per high quality and low pricesEmployeesNovember 2013
More quality and value added features, benefits and advantagesPromotional campaign, limited offers, reviewsEmployeesNovember 2013

Source: Author

Marketing

Marketing ASDA services and products to the targeted customers

ActionInitiativeResourcesDate of completion
Conduct the survey to make it sure that the product’s features and services are designed as per customer’s requirements.Select the effective media channel to start the marketing and make it sure that the message is clear and there is no ambiguity in the messageEmployeesNovember 2013.
Communicate with all other departments for coordination and make it sure that all other departmental work will remain smooth.To make it sure about the current business situation the conduct the analysis to know about the organizational strengths, opportunities, weaknesses and threats.  Employees  November 2013  

Source: Author

Improvements

Get customer’s feedback and increase the quality of products and services

ActionInitiativeResourcesDate of completion
Get feedback from customers and employees, involve the employees in decision makingOffers, promises must be made by the organizations  and commitments and offer features, advantages, benefits over the competitorsEmployee  November 2013  
All the features, advantages and benefits of the products and services as compared to the competitorsIdentify the customer’s expectations and manufacture the products as per customer’s needs and wants  Employee  November 2013  
Periodically update the clients about products and services informationStart campaign about the promotion by offering some offers to attract new customersEmployee timeNovember 2013  
Select the best one media channel according to the targeted customersSelect the alternative media channel listEmployee  November 2013    
Use different channels to communicate with customers  By using the media channel start promotions and the best media channels are emails, letters, text messages  Employee  November 2013  
Plan and implementAfter review the performance make alterations  Employee  November 2013  

Source: Author

Assess Opportunities

ActionInitiativeResourcesDate of completion
Assess the opportunities available for the organization to improve the business condition for achieving organizational objectivesResearch and development department will conduct a survey and will make it sure about the available resources to avail opportunities  Employees of concerned departmentNovember 2013

Source: Author

Improve Employee’s skills and Competencies

ActionInitiativeResourcesDate of completion
Construct and design the trainings objectives and time of training and associated cost  Start the procedure step by step and initiate the procedure after planning his or her personal development planStaff membersNovember 2013  
Set the leadership qualities and its objectives  Define the objectives Define the leadership scheduled time Evaluate the positions  Leadership TaskNovember 2013  
Scheduled the training objectives and define its goalsDefine the evaluating process steps   Gauge the performanceLeadership Task ForceNovember 2013  

Source: Author

Financial statement of ASDA

There are the following KPI’s of ASDA to know about the fiscal performance and about the progress and about the main objectives of the ASDA, these financial indicators are given below one by one.

Financial Indicator

Different financial indicators are called the financial indicators which are used to gauge the financial achievements of superstore from 2012 to 2013 (http://www.walmartstores.com/sites/annualreport/2012/financials.aspx).

2012/2013                   (4.0)

2011/2012                               (3.4)

2010/2011                                           (3.0)

These above mentioned figures showed that every year the financial growth is gradually start from 2010 to 2011 and the figure was 3.0 million pounds, whereas in 2011 to 2012 it was 3.4 it showed that there was an increase of 0.4 million and in 2012 to 2013 it reaches up to 4.0 means 0.6 million increment in one year (http://www.walmartstores.com/sites/annualreport/2012/financials.aspx).

Targets

As explained above that in coming 6 years ASDA has objective to capture 88% market share and it means that ASDA will achieve more 22% margin in next 6 years which is a huge amount and is challenge for the employees.

Initiatives

To achieve the above financial objectives ASDA management has designed the following action plans to achieve above stated objective

Resource allocation at right time to right person

Maximum resource utilization

The business strategies are designed and developed in such a way to attract about 88% of market share in coming six years

Customer Indicators

ASDA has belief in that the revenue can be generated and can be enhanced by only creating loyalty and satisfaction among the clients and this satisfaction and happiness is based on the features and quality of products and services to achieve its overall objectives.

Key Performance Indicators

Basically the main key performance indicator is the reference group which we call it recommended customers.

2012/2013                   (82)

2011/2012                               (76)

2010/2011                                           (66)

Targets

To increase the customer’s recommendations the super store has decided to improve the quality of products and services.

Initiatives

Create happiness and satisfaction among the clients and increase the level of loyalty

To achieve organizational objectives the super store has decided to improve the quality of services and also measure the employee’s skills and performance and improve the skills and abilities by giving.

Business Indicators

Here main objective of the superstore is to create loyalty and satisfaction among the client to enhance the revenue of the superstore.

Key Performance Indicators

There is a gradual increment in this sector starting from 2010 up to 2011 it was 54 and then from 2011 till 2012 it was calculated as 65 means that there was an increment of 09 million great British pound and from 2012 to 2013 it was recorded as 79 means 14 million increment (http://www.walmartstores.com/sites/annualreport/2011/financials.aspx).

2012/2013                   (79)

2011/2012                               (65)

2010/2011                                           (54)

Targets

ASDA has planned to get 70% as new target

Initiatives

To achieve above mentioned target ASDA management team has decided to take following steps to achieve above mentioned goals.

To get proper recorded feedback from customers and make contact with them and handle their problems and provide them solution as soon as possible, the ASDA has decided to install proper latest procedures and technology to minimize the cost.

Financial Ratios

Following are the financial ratios for ASDA Super Store

ASDA in United Kingdom
 Ratios20122011
Liquidity Ratios
1.Current Ratio = Current assets /Current liabilities26740 / 37400 =0.70 times23460 / 41420 =0.56 times
2.Quick (Acid Test) Ratio = Current assets – stock/Current liabilities26740 – 980 / 37400 =0.68 times23460 – 1270/ 41420 =0.55 times
3.Operating Cash Flow To Maturing Obligation = Cash Generated from Operations/Current Liabilities3310 / 37400 =0.088  times1330 / 41420 =0.032 times
Gearing Ratios
1Gearing Ratio = Long-term (non-current) Liabilities/Share capital + Reserves + Long-term Liabilities(79730 / 2880 + 6920 + 79730)*1000 =88 %  (81420 / 2880 + 4300 + 81420)* 1000 =90%
2Interest Cover ratio= Profit before interest & tax/Interest Payable-5310 / 1360 = -3.88  times-4010 / 1770 =  -2.29 times
Profitability Ratios
1Net profit margin = Net Profit before interest & after tax/Sales(-4250 / 79940)*100 = – 5.31%(-3580 / 89920)* 100 = – 3.98%
2Return on shareholders’ funds = Net Profit after tax /Ordinary Share Capital + Reserves(-4250 / 2880 + 6920)*100 = – 43%(-3580 / 2880 + 4300)*100 = – 49%
3Return on capital employed = Net Profit before interest and tax/Share Capital + Reserves + Long-term Liabilities(-5310 / 2880 + 6920 + 79730)*100 = -5.3%  (-4010 / 2880 + 4300 + 81420)* 100 = -4.52%
Efficiency Ratios
1Asset utilization ratio = Sales/Capital Employed Capital Employed = Current Asset+ Fixed Asset- Current Liabilities79940 / (26740 + 79730 – 37400) =1.157 times89920 /(23460 + 81420 – 41420) = 1.42 times
2  Average settlement period for debtors = Trade Debtors/Credit Sales x 365No Information about Credit Sales provided so Assume sales on CashNo Information about Credit Sales provided so Assume sales on Cash
3Average settlement period for creditors = Trade Creditors/Credit Purchases x 365 Credit Purchases = Cost of sales+ Closing Stock-Opening Stock(6230 / (2900 + 980 – 1270))*365 =  871days(6660 / (3690 + 1270 – 11200 ) )* 365 = 633days
Working Capital Management
1Working Capital = Current Assets – Current Liabilities26740 – 37400 = -106623460 – 41420 = – 1796
2Working  Capital Turnover = Sales / Working Capital79940 / -10660 = -7.4989920 / -17960 = – 5.0066
  3Inventory Turnover = Cost of Goods Sold / Inventory2900 / 980 = 2.963690 / 1270 = 2.91
  4Days Inventory = 365 Days / Inventory Turnover365 / 2.96 = 123.3 Days365 / 2.91 = 125.43 Days
Solvency Ratios
1Current Liabilities to Net Worth Ratio = Current Liabilities / Net Worth Net worth = (Total Asset – Total Liabilities)(37400 / (106770- 85640))*100 =  177%(41420 / (104880-86420))*100 = 224.37%
  2Current Liabilities to Inventory Ratio = Current Liabilities / Inventory(37400 / 980)*100 = 3816%(41420 / 1270)*100 =3261 %
  3Total Liabilities to Net Worth Ratio = Total Liabilities / Net Worth(85640 / (106770-85640))*100 = 405%(86420 / (104880-86420))*100 =468 %
  4Fixed Assets to Net Worth Ratio = Fixed Assets / Net Worth(79730 / (106770-85640))*100 =377 %(81420 / (104880-86420))*100 = 441%

Source: (http://www.walmartstores.com/sites/annualreport/2012/financials.aspx)

References and Bibliography

a.        Books and Journals

Acemoglu, D. and Jackson, M.O. (2011) History, Expectations, and Leadership in the Evolution of Cooperation 2nd ed, Oxford: McGraw Hill publishers

Benfield, E. (2008) The Moral Basis of a Backward Society 3rd ed, London: Free Press

Byars, L. (2005) Strategic Management, Formulation and Implementation, Concepts and Cases 2nd ed, New York: HarperCollins.

Capron, N. and Glazer, R. (2003) Marketing and technology: a strategic coalignment, Journal of Marketing, Vol. 51 Issue 3, pp.10-21.

Cooper, L. (2004) Strategic marketing planning for radically new products, Journal of Marketing, Vol. 64 Issue 1, pp.1-15.

Jan, Y. (2002) A three-step matrix method for strategic marketing management, Marketing Intelligence and Planning, Vol. 20 Issue 5, pp.269-272.

Johnson, G. and Scholes, K. (2003) Exploring Corporate Strategy 3rd ed, Hemel Hempstead: Prentice-Hall

b.        Websites

http://www.walmartstores.com/sites/annualreport/2011/international.aspx [Accessed on 3rd February 2013]

http://www.walmartstores.com/sites/annualreport/2011/ecommerce.aspx [Accessed on 3rd February 2013]

http://www.walmartstores.com/sites/annualreport/2011/directors.aspx [Accessed on 3rd February 2013]

http://www.walmartstores.com/sites/annualreport/2011/financials.aspx [Accessed on 3rd February 2013]

c.         Bibliography

Kotler, J. and Schlesinger, L. (2001) Choosing strategies for change, Harvard Business Review, 3(12), pp.24-29

Kotler, P. (2008) Marketing Management – Analysis, Planning, Implementation, and Control, 9th Edition, Englewood Cliffs: Prentice-Hall.

Locke, R.M. (2002) Building Trust in A Flora 5th ed, Manchester: Pearson publisher

Putnam, R.D. (2003) Making Democracy Work 3rd ed, Princeton: Princeton University Press

Robinson, S., Hichens, R. and Wade, D. (1988) The directional policy matrix-tool for strategic planning, Long Range Planning Journal, Vol. 11, pp.8-15.

Thompson, J. (2002) Strategic Management, 4th Edition, London: Thomson Press

Management of Financial Resource Management and Performance

Organizational Introduction

At ASDA superstore in United Kingdom which is offering a series of products and financial services and other services in mostly all the areas just to serve the people. ASDA not only serving and providing products in the field of wearing, kitchen, vegetable, non vegetable, cleaning, garments, ready mate, bakery, cookies, world food and all the material which is used in the homes similarly in the financial sector ASDA is offering its services to serve the people in the form of loans, credit cards on very easy terms and conditions. And in the other sectors being the most social responsible the ASDA is serving the people by manufacturing high quality of products at very reasonable prices in the United Kingdom.

Stakeholders

According to Bateman et al., (2009) that in an organization there are some people or group of people those have influence on the organizational operations directly and indirectly whereas the organizational operations are for the achievements of its main objectives. There are different kinds of stakeholders, some stakeholders have interests with the profit and operation of organizations and sometime the stakeholders do not have any interest from the organization, it means that it depends on the nature of business and kind of stakeholders. Stakeholder can be any person who is benefited or not benefited by the organization and it may be a client, staff member, investor party, government, any financial institute, suppliers and distributors or anyone who is attached or concerned with that organization.

ASDA Stakeholders

There are two types of stakeholders at the ASDA, one stakeholder are those stakeholders who are called external stakeholders and second form of stakeholders are called internal stakeholders, there is a big difference among both of them. I will briefly describe both of them one by one. So first of all I will explain in detail about the external stakeholders

External Stakeholders

All the competitors of ASDA are the basically external stakeholders of ASDA in the United Kingdom for example Tesco, Sainsbury and other big super stores, where as in the external stakeholders the customers, clients, raw material suppliers, third parties, government, tax department, police all those external forces are the basically external stakeholders of ASDA. Primary stakeholders are the stakeholders which are positively or negatively affected by the change in the organizational policies or due to change in the strategies as well and in such situation primary stakeholders or group of stakeholders can be affected negatively and bear a loss or it may compel primary stakeholders to change its policies and strategies as well to save it from the negative effect.

Primary Stakeholders

According to Bennis and Warren, (2007) that sometime when the organizational reduced the prices for their products or services then in such situation the investors may go to bear a loss in the profit but the clients or the customer who are the stakeholders will get benefits so it is clear now that the clients or customers are primary stakeholders.

Key Stakeholders  

According to Gemmill & Judith, (2002) that some stakeholders can be affected by the strategies and policies positively or negatively and it all depends on their own hardworking and their directions to be infected positively or negatively for example the staff members of an organization are called the key stakeholders because the staff members can do their most efforts and can be benefited a lot.

Secondary Stakeholders

Some stakeholders can be affected in both ways like in negative or positive way and these kind of stakeholders are called secondary stakeholders for example when at the ASDA staff members are given training and the ASDA have to pay cost for the trainings and improving skills of such employees and the staff members devote themselves towards organizational growth and put all efforts from their hearts for achieving ASDA objectives.

Internal Stakeholders

The internal people who are directly connected within the organization are called as internal stakeholders and those people who are also the part of business strategies, operations and involved in the decision making system and implementing organizational strategies are called internal stakeholders

Interest of Stakeholders

All the stakeholders have their interest with the organizations but there are some common interests of all kind of stakeholders which are discussed above.

Economic

When the stakeholders benefited economically is called economic interest which includes, wages, pension, medical and life insurance, free of cost trainings, professional courses, professional trainings and short courses

Social changes

According to Hersberger, (2007) that in a multicultural environment in which the thinking power become mature and more chances the stakeholders can achieve to learn different cultural norms and values and in the multicultural environment the stakeholders can enjoy and learn more and more.

Environment

c environment at the work placement because in this way productive attitude increases and the organizational objectives can be achieved easily and all the stakeholders can be benefited economical.

Decision making involvement

To get maximum satisfaction and to become the part of the organization and to be proud of being trusty team member the stakeholders want to be involved in every decision making process it also increase internal satisfaction and stakeholders believe in that they are proud of it when they are involved in decision making process by the high level management.

Health and Safety

The stakeholders have the interest in the health issue at the work placement and all the areas of organization and in all the procedures and operations and working areas because all are conscious about their health and about their families, so organizations must have proper installed all the necessary equipments for safety control (Intagliata, 2002). Now a day people are mostly conscious about their health and safety positions and they want to be insured regarding health and death and safety, while working at the work place if they got injury they need compensations and in case of serious injury they want job protection and holiday with pay.

Stakeholder’s management

According to the Kotter and John, (2003) that there are following steps involved in the procedure of stakeholder’s management effectively and efficiently.

Identification

In the first step the ASDA identify the stakeholders and also identify the category of stakeholder, key stakeholder or primary, internal or external stakeholder and then the organization set the goals and objectives and then identify the stakeholders and then set the influence of role of stakeholders in achieving organizational goals and objectives.

Nomination

After identification of stakeholders the administration at ASDA nominate the stakeholders the different positions in the organization as per their status and wait for approvals and according to the qualification, skills and professionalism and experience the organization nominate positions to play their role in achieving organizational objectives.

Feel

After a certain period as per the stakeholder’s abilities and role in team the administration analyse the stakeholder attitude and behaviour with colleagues and confirm the competencies and as per results present stakeholder’s name in suitable category.

Observation

In this stage the administration observes the stakeholder as per assigned duties performance and monitors his or her activities and interest and productive attitude.

Review

Here after observing the administration changes the stakeholder position and role as per outcomes find out in the observation step.

Manage

According to the Mech and Terrence, (2003) that while stakeholder managing the administration must end the management process with the information about administration expectations to the stakeholders and get the feedback from stakeholder.

References and Bibliography

a.        Books and journals

Bateman, Thomas, S. and Scott, A. (2009). Management: Building a Competitive advantage, 4th ed., Boston: Irwin/McGraw-Hill.

Bennis, and Warren, G. (2007) “Where Have All the Headers Gone?” Technology Review,

79 (4) pp: 45-46

Gemmill, G. and Judith, O. (2002) “Leadership: An Alienating Social Myth?” Human Relations, 45(2) pp: 113-29

Hersberger, R. (2007) “Leadership and Management of Technological Innovation in Academic Libraries” Library Administration & Management, 11(1) pp: 26-29

Intagliata, J. (2002). “Levering Leadership Competencies to Produce Leadership Brand: Creating Distinctiveness by Focusing on Strategy and Results.” Human Resource Planning, 23(6) pp: 13-67

Kotter, and John, P. (2003) A Force for Change: How Leadership Differs from Management, N.Y.: The Free Press, 6th July 2012.

Mech, and Terrence, F. (2003) “The Managerial Decision Styles of Academic Library Directors,” College & Research Libraries 12(7) pp: 375-386

Moore, and Audrey, D. (2004) “Reference Librarianship: It Was the Best of Times” Reference Librarian, 54(7) pp: 3-10

The role of Customer Relationship Management activities in the growth and expansion of hotel industry while finding out the gap between customer’s requirements and offered quality of services and products

Today,service organizations are shifting their focus from “transactional exchange” to “relational exchange” for developing mutually satisfying relationship with customers. Extended relationships are reported to have a significant impact on transaction cost and profitability, and customer lifetime value. Serving the customers, in true sense, is the need of the hour as the customer was, is and will remain the central focus of all organizational activities. The hotel industry, especially the luxury segment hotels needs to be purely customer-centric and focus on the customer needs and duly fulfill them.

Customers will not blindly accept poor service quality from a luxury hotel. They expect high quality of service in return for the money, they spend in luxury hotels. This paper is an attempt to explain the dark side of CRM in the luxury segment of the hotel industry with the help of the ‘Gap Model’ referred to in literature which suggests that gaps in service occur at various instances. The author explains that the gap CRM is a useful tool to explain the dark side partly. There is more to the dark side like privacy issues, unwillingness of customers to build a relationship with the service provider, changing tastes and preferences of the customer. Hotel Company has been chosen as a single case study and the research questions have been devised, addresses the industry at large, using a classic example of superior service quality to the customers. Some simple measures to reduce the dark side have been mentioned, which addresses the third and last research question.

The project would contribute as a useful guide for luxury hotels, provide them some valuable information on what the customer expectations are and if they are duly met then service gaps shall not occur. This research shall provide scope for luxury hotels to improve their overall service quality and strengthen their position in the industry. The relevant existing theory has been reviewed and the subject has been explored, using the ‘Gap CRM’ (Parasuraman et al 1998) mainly. Based on the research findings and analysis, recommendation has been given to reduce the dark side at this hotel and luxury hotels in general.

Chapter # 1:     Introduction

1.1    Problem/Issue

Chen and Popovich, (2003) have been stated that in order to create the satisfaction and loyalty among the customers the business organizations are trying their best level to create and build strong and long term relationships for increasing sales and making maximum market share from the potential target market. Customers buy and hire the products and services to overcome their needs and wants and for this purpose they go to market to buy and hire services and products and spent money just to overcome their needs and wants and ultimately they got an experience after utilizing the products and services and on the behalf of the experience they make decision to again buy those products and services, if the products and services have already satisfy their needs and wants then they again buy the products and services otherwise they become angry and never come again to buy those services and products. There are so many benefits of CRM department and especially in the hospitality sector it is very important for the business organizations to establish CRM department for making sales and earn profit. Customers can buy different products and hire the services from different outlets remaining at their homes due to advancement in technology and vendors have been improved the features of products, and the different strategies have been used by the vendors to set the pricing and designing the products features. Due to high competition in the hospitality industry among the different hotels each hotel is offering its products and services at low price but better quality of services and products as compared to each other just to build strong relationship for earning more profits from the customers by implementing different customer relationship strategies and policies. Sugandhi, (2002) has been stated that customers have a full range of different opportunities and options as per their requirements and expectations to buy any products or service to overcome their problem at low price as compared to its competitors. In the field of hospitality, customer services are playing its role in creating information among the clients regarding quality of services and products in the hotels. According to Chen and Popovich, (2003) that these days in hospitality industry the hotels those providing best services and products to its potential customers in the market are trying to offer the services and product of high quality because all the hotels in the same market are offering same services and products, and each hotel is trying to offer better quality of services as compared to each other to make more clients to earn generate more revenue and to increase the sales and making more profit for the organization. Sugandhi, (2002) has been stated that customers are the startup and end of any business activity in the hospitality industry, and it is very important for the business organizations to create more quality in their services and products to offer their customers at high quality but at low price for making more and more customers. Customer relationship management is playing its effective role in creating and providing better quality of services and products and in identification of customer’s needs and wants and for this purpose the companies are paying more money and huge budget for maintaining CRM department. Strong relationship can be built in a way that if the customers are happy and satisfy and loyal and in this way the organizations can make more money and profit by establishing strong relationship with clients with the help of CRM department because without CRM department help it is very hard for them to create loyalty and satisfaction. In the hospitality sector the hotels can easily recognize its client’s expectations to offer them suitable services for creating happiness and loyalty among them (Parasuraman et al., 1985). When all the hotels in the same industry are providing the same services and products and with the passage of time and enhancement and change in the technology at high speed the requirements and the needs of clients are also changed with the change in technology so there is an opportunity for the hotels to achieve that opportunity to achieve its objectives and for the survival and to capture the more market share, CRM department as has been discussed above the responsibilities and role of CRM towards achieving this opportunity and all the hotels have the same opportunity. Only one issue is to identify their expectations and then as per their expectations if the same quality of services and product can be offered then the market share can be increased by capturing more new clients from the market.

1.2    Research Title

The role of Customer Relationship Management activities in the growth and expansion of hotel industry while finding out the gap between customer’s requirements and offered quality of services and products in Hotel Industry in United Kingdom (A Case Study of Holiday In Hotel London).

1.3    Research Aims and Objectives

The main aim of this research is to find out the importance and activities of the customer relationship management department and its activities in the sales and growth of hotel industry in United Kingdom, the researcher want to find out the role and importance of CRM department and its strategies designed by the management of the department for achieving organizational goals and objectives in the era of high competition in the hospitality industry in United Kingdom. And the researcher will find out the main role of CRM department in recognition of customer’s expectations and their needs and wants in hotel industry for increasing sales and participating in hotel growth in United Kingdom. The researcher will also find out the key success factors those can play their important role in finding out their level of quality and their priorities while hiring hotel services and the way of hotel management to keep the client’s record for future purpose, the researcher will also find out the main relationship between the CRM activities and the customer’s expectations. The researcher will also find out the relationship between the requirements identification and satisfaction of customer and loyalty and overall impact of these factors on the sales and growth of hotel. The researcher will also interest in find out the association between the CRM challenges and problems faced by the CRM department while designing and implementing its effective strategies and policies for positive outcomes. The researcher will also investigate the actual nature and main responsibilities of the CRM department and its other liabilities and its obligations towards employees and customers in achieving organizational goals and objectives. The researcher will also find out the main factors those can contribute their important role in creating and enhancing loyalty, satisfaction and happiness among the customers in the hotel industry and finding out their main priorities. In the end the researcher will make conclusion and will find out the weak areas of CRM department and management in the selected hotel and will also designed the positive suggestions and recommendations for the Holidays In hotel to improve its services and quality of services and products to achieve organizational objectives.

1.4    Research Questions

There are the following main questions related with this research, the researcher has made these questions while keeping all the aims and objectives of this research in the mind and for achieving the above mentioned aims and objectives.

What is the importance of CRM department at hotel industry in the United Kingdom?

What is the relationship between the sales and the CRM department?

What are the factors that can be helpful in identifying the client’s requirements and their priorities for offering them suitable and as per their requirement quality of services and products?

How CRM department can design and develop effective policies and strategies for achieving organizational objectives?

What is the role of client’s perception and their expectations in enhancing sales and growth of an organization?

What are the main challenges and problems that the CRM is facing while implementing and designing its strategies in the hotel industry?

How happiness, satisfaction and loyalty can be created by the CRM department among the potential clients?

How the CRM can reduce the gap between the client’s requirements and their perceived quality of services and products and how it can be reduced by the CRM effective strategies?

1.5    Scope of Research

In the hospitality industry the researcher will find out the role and importance of CRM department on the sales and growth of hotel in the hotel industry effectively and this research will play its important role for the hotel industry in United Kingdom while the CRM department will design and implement those strategies for capturing new and retaining the potential clients by establishing strong relationship with them after analysing their requirements and identifying their priorities in hotel industry. This research will also play its important role in the hotel industry when the CRM department will design and implement its effective strategies for creating happiness, loyalty and satisfaction among the clients for achieving organizational objectives and this research will also disclose the important factors for the organizational success. This research will also identifies the way to recognize the client’s priorities and the necessary skills and information will also be disclosed by the researcher and it will very helpful for the management and the CRM department administration for making important decision in the future to obtain organizational objectives successfully. All of the hotels in the hospitality industry have implemented the customer relationship management department and are running its operations effective for achieving organizational objectives and a high level of competition is there in the industry among the hotels for capturing more market share for sales and profit earning.

1.6    Ethical Considerations

There are so many ethical considerations that will be adopted by the researcher in order to create reliability and validity of the research and the conclusion, while gathering primary and secondary data, while representing the primary data and while making analysis and conclusion and making suggestions the researcher will adopt the ethical considerations for the validity and reliability of research. First of all the researcher will never ever cheat someone else work and will not steel work of his any colleague or student and will never allow someone to steel his work. The researcher will use fresh references and will use the valid sources of gathering primary and secondary data and researcher will not include his opinion in making analysis and conclusion, just will rely on the findings and analysis. The researcher will not use this research for another academic purpose and will keep the respondents data secret. The researcher will not disclose the details of respondents and not disclose the secrets and trademarks of the selected hotel to anyone.

1.7    Limitations

There are so many limitations of this research associated with this work because the research is a student, and being the student he has limited time and limited financial and other resources and for this purpose he has been selected the case study as tool to conduct his research and limited number of respondents were selected. The researcher has not too much budget for conducting this research and has limited time schedule to present his report for achieving master degree and the researcher has no already any experience of conducting research that’s why the researcher has decided to conduct the interviews and distributing the questionnaires among the potential clients and will select about 150 individuals as respondents. Remaining the financial resource will be arranged by the researcher from his own means and a supervisor will be allocated to the researcher to follow his guidelines and under the supervision of a supervisor all the research will be conducted.

 

Chapter # 2:     Review of Literature

2.1    Introduction

In this chapter the researcher has been explained about the main duties of customer relationship management in the hospitality sector in the United Kingdom and the researcher has also explained the relationship of CRM departmental activities and its strategies for achieving organizational main goals and objectives. According to Gronroos, (2001) that CRM is responsible for making sales and profits in an organization and making different strategies to achieve overall goals is also the responsibility of the customer relationship management. The effective way and all other related aspects and factors have been also discussed here, the previous and fresh scholar’s statements have been included and a rational review of literature has been presented and at the end of the section the conceptual frame of reference has been discussed regarding this research. In this section the researcher will also explain the scholar’s statements and the literature about the importance and role of customer relationship management in making sales and profit.

2.2    Customer relationship Management

CRM can capture new and more clients from local and international markets only in one way is that first identifying their expectations and then as per their requirements offering them the suitable services and as per their priority offering them the services as per their priorities then the CRM can be successful in the job, because in the hotel management some customer gave priority to their privacy and some of them gave priority to the luxury, and some of them gave priority to the both luxury and to the privacy. According to Buttle, (2004) that the customer relationship management is mainly responsible for the business promotions, marketing, sales, maintaining, profit earning, introducing the new and old products and services in the hotel management industry is always managed by the CRM department and this department is the major responsible for capturing new clients from the target market. According to the Sugandhi, (2002) that instead of customer relationship management the business organizations can use the new and latest technology of communication for making an interaction with the clients is the internet and online you can make interaction with them to solve their problems or to solve and introduce them the new or change in the product or services and new clients can be captured by using the latest media rather than the CRM department inside the hotel. CRM staff must have the skills to use and to offer the best services and the products to the customer on the computer and in this way the customer from the distance can be captured with a little extra efforts and spending little bit amount on the trainings for the employees and in this way international customer can be captured by the hotel industry, foreign visitors is the big and huge target market for the hotels in United Kingdom and especially hotels situated in the London can capture them.  According to the Gronroos, (2001) It is not easy for the customer relationship management to find out new clients from the international markets and from the local market without new and latest procedures and technology usage, and more making promises and then overcome on these promises is not an easy task for the hotel management. CRM can play its role in marketing as well as in the other sectors, when the customers will perceive the expected quality of services and expected priorities then in this way they will become the reference groups and free of cost marketing and testimonials marketing has great impact on the others to attract more new clients from the market. As the scholars Schneider and Bowen, (2007) have been stated that CRM main responsibilities are to create strong relationship with the clients for making money and earning more profits and for the more success to get more market share is also the main responsibility of the customer relationship management in the hospitality industry, in the meanwhile to create loyalty and the satisfaction among the clients it is CRM department responsibility to recognize their expectations for offering them the services and products and creating high level of satisfaction and loyalty among them. And the same is vise versa, when some client become angry he or she will let others and will inform others like his or her colleagues, friend, family members and family friends about his or her experience and in this way the hotel can lose the business, and it is famous statement of a scholar that no client n business and in this way the competitors will get maximum benefits because the angry customer will next time hire the services from the competitors and will buy their products rather than from you. So in both case the CRM can play its important role in creating happiness and loyalty among the client, the angry clients can also be satisfied by negotiation and by offering them the suitable solutions and in this way a strong and long term relationship can be established with them for making more money and earning more profits. Bennett, (2006) has been stated that in the high competition among the same services and products manufacturing organizations only the CRM department can assure the success for the organization, because the main purpose of this department is to develop effective policies for the organizations in the hospitality sector in United Kingdom. This department can recognize the customer’s expectations and their needs by using skilled and latest technology equipped staff members to offer them the services and products as per their own wish so that they become happier and become loyal. According to Sugandhi, (2002) that through getting feedback from the customers the CRM department can be able to find out the customer’s level of satisfaction and level of happiness and in this way CRM has the opportunity to make the relationship with the clients on long term basis for making more money and can earn more money for the organization as well. Gefen, (2002) has been stated that CRM department can be used by the hotel industry to design and develop profitable strategies for the new and old customers by creating loyalty and satisfaction after implementing those strategies and by considering customer’s priorities and their expectations for business success. This is CRM responsibility to make string relationship with the clients as by offering them the suitable and as per their expectations the products and services for earning money and achieving its main objectives and goals for long term. Sheth and Parvatiyar, (2007) have been stated that instead of paying money to the CRM department, the business organizations can spend this amount for the welfare of customers and for the advertisement and can offer the services and products to the customer at very low price, and in this way the organizations can also get more money and can lead and can become market leader in hospitality sector, the standards of hospitality and other standards are already the part of legislation in United Kingdom and all the stakeholders act on legislation in the hospitality sector so without the CRM department the clients can be made and client can be attracted and retained.

2.3    Loyalty and satisfaction

Anderson and Mittal, (2006) both have been stated that there is a string relationship between the quality and services and satisfaction and there is also direct relationship between satisfaction and loyalty, satisfaction always leads to the loyalty whereas the quality and the services play its role in creating the satisfaction level among the clients and among the staff members. And for all this purpose only one department named as customer relationship management can only create the satisfaction and loyalty among the clients as the researcher has been explained in the following figure as the researcher has been showed that the level of satisfaction can be created among the clients easily with the help of customer relationship management and in this way both the organization and the client can be satisfied, client will receive the expected quality, services and products for which he or she has paid the money and the organization will earn the money by selling its products and services to the client and in between client and organization the CRM department has played its important role as discussed in the following figure.

Deliver, as per requirements and after utilizing client will receive good results and satisfaction will be created, and loyalty will be created.  

Some scholars have been stated that the satisfaction always leads to loyalty and I this way the organizations can make money and earn more profits. CRM with its skilled workers those have the complete knowledge about the features of the products of other competitors and have the communication skills to discuss their problems and have the authority to offer them the suitable solutions and allocated the full resources and access of all other necessary options and making arrangements for providing essential requirements, so after identifying their needs and requirements after filling forms and asking them by utilizing their skills and communication skills, and after identifying their expectations they send their expectations to the concerned department for serving them as per their own expectations, the manufacturing department is responsible for manufacturing those services and designing the services and products as per requirements and after using those services and products the clients will get very good results and satisfaction will be created among them and in this way the organizations can earn more money and clients will be retained. As Anderson, (2005) has been explained that sales and revenue can be enhanced if the organizations can be able to create satisfaction and loyalty among the clients by offering them the suitable services and products in the hospitality sector, the customer will come again and again only in one situation when he or she has satisfaction after utilizing the product or services in the past and they will bring the other clients after sharing their knowledge and experiences with their colleagues, mates, friends and family members being the social responsible and in this way the organizations can be benefited in both ways, sales enhancement and increase in the market shares. Whereas scholar Buttle, (2004) has been stated that instead spending a lot of money on the CRM department and other arrangements for equipping the CRM staff with latest technology and providing them other information and arrangements of training and spending lot of money, the organization in the hospitality sector can generate satisfaction and loyalty among the clients and can make more new contacts from the target market by spending this money for the welfare of employees and for the welfare of clients means to offer them the services and products at cheap price. Whereas Looy et al., (2003) have been stated that if the hotels could not provide suitable and necessary services and products to the customers then in this way instead of satisfaction and loyalty, discourage and disappointment can be created among the customers and when there is no customers then no business. According to the Buttle, (2004) that satisfaction always leads to the loyalty and loyalty always leads to the increase in the sales whereas the disappointment leads to the anger and anger leads to the disappointment. Anyway Looy et al., (2003) have been stated that CRM can create satisfaction among the clients only in one way that if they become success in finding out the exact needs and want of the customers and succeed in finding out the client’s expectations and then successfully offered them the services and products as per their wish and priority then the CRM departmental policies and strategies are successful and organization can achieve its targets and goals.

SatisfactionLoyaltyGoals and Objectives
Quality, Priority, features, speed, volume, design and functions, availability and price  Happiness and alternatively become loyal for the organization and will come again to buy the products and servicesIncrease in sales and more profit

According to the Buttle, (2004) that there is a link between the customer’s expectations and his or her happiness and this happiness can create satisfaction which is directly related with the loyalty and as shown in the above table that loyalty will attract the customers to buy again the products and services from the past organization and in this way the organizational objectives can be achieved and in the hospitality sector the people spend lot of money like 200 pounds per night stay and they need luxury, privacy and high quality of services and they may require taxi, mini cab or other facilities like lunch, breakfast or tea or high tea but as per their own wish and selection, and if the hotel management can be successful in finding out their priorities and their expectations then the clients will be more happy and next time they will book the room with the same hotel otherwise if they did not have the good experience then they may go to the competitors.

2.4    Quality f Services

According to the Gronroos, (2001) in the hospitality sector the organizations must deliver the high quality of services because the quality and the price are those both key factors those play their role in the success of organization. There is a deep and direct relation of sales with the quality of services and the quality of products, quality of services always includes way of serving clients, fast, speed, components, behaviour, attitude, politeness and proper solution, and some time when there is no difference between the customer’s expectations and the perceived values then it means that the client has perceived the quality of services of high level and excellent quality of services were provided by the organization and this all is due to the identification of client’s demands and expectations of services and his or her priorities, and especially in the hospitality industry the client’s always gave priority to their privacy and luxury and these are the main key success factors of hospitality industry to achieve the organizational objectives (Caruana et al., 2000). Kandampully & Suhartanto, (2000) has stated that client’s loyalty and satisfaction always influenced by the quality of services in hospitality sector and especially in the near future the sales of the service in hospitality sector depends on the previous experience and quality of the services of the hotel. They both have been explained that there are some different factors those mutually called the quality of services and some important are delivery of the product, Bahaviour while dealing, prompt response or reply of client’s call, offering him or her privacy and luxury priorities must be keep in consideration while serving the client and product’s ingredients and dealing style are the main components of quality of services, and clothing, neat and cleanliness, wall decoration and furniture and decoration pieces color matching has also great impact on the satisfaction and loyalty of clients, because some time the environment of the hotel may like free environment and client must feel that he or she is living at his or her own home. So the environment, furniture, staff behaviour, attitude, food, taste, serve style, privacy and luxury all together called as the quality of services and this quality starts and end on the expectations of clients. So the hotel management must keep in mind all these key success factors in order to achieve organizational objectives.

2.5    Gap Model

According to the Gronroos, (2001) that there are some ways to understand the way and procedure to identify the client’s needs and wants, and these needs, wants, requirements and expectations are very important for the hotel management to understand before offering the services to them to build strong relationship for making money and ultimately achieving top level goals and total administrational objective, the customer relationship management must understand the gap model defined by the Gronroos, (2001) to identify those expectations as the importance has been explained by the researcher above.

 

                              Gap # 1

Difference between the expectations and the perceived by the customers  

                                         

                                 Gap # 2

Served by the employees and offering of services and products (Full Range)  

                

 

                                   Gap # 3          

As per the expectations of customer and his or her choice serving  

 

                                       Gap # 4

Sharing the expectation information with manufacturing department for manufacturing the products and services and changing the products as per client’s needs and wants, to offer them the services as per their main requirements to compete in the market and become leader in the market.  

 

        Gap # 5

In the above figure as the Gronroos, (2001) has been given the model as discussed above that there are five gap levels and this is the main problem of the customer relationship management in the hotel industry that CRM department could not understand the gap between client’s expectations and the services and product’s qualities for offering and the hotel could not attempt the 100% targets in well manners. He also stated that if the CRM department pay its complete attention towards above model and design its strategies and policies as according to the gap model then the CRM can identify the client’s requirements in positive manners and the loyalty and satisfaction level can be raised among the clients for achieving market share and profit share as well. But there are some scholars those have been stated the solution of the above gap and they have also discussed the model in detail and gave the proper solution to the CRM department (Looy et al., 2003).

SituationProper and Reasonable solution
Gap exist because of lack of information about customer’s expectations to the managementThe management must review the employee’s skills and their training and the information and must measure the procedural impact and its importance and must check the total system and make necessary amendments and bring the change where it is necessary and for this purpose the management must hire some expertise people for proper solution.
  The gap occurs due to misperceive of employees and the staff member pass the wrong information to the services department and the services department offered the wrong services and products to the clients.Here in this gap the management must review all the weak points of communication and investigate the whole matter and must check the data entry system and must check the communication skills of staff and must review the communication system between the CRM staff member and the services booking officer and services provider staff and check their competencies and arrange courses or training sessions for all of them and make necessary amendments for improvements for achieving success in future.
This gap is because of the quality of services the clients has received the proper product and services as per his or her requirement but only the quality is of low level like the response was late, too slow, not complete, no feedback after offered and no proper solution of complaints.  In this situation again the management and the CRM department must pay their attentions towards the communication skills and towards the quality of services and its improvement mechanism and must involve the staff and customers in making decision and making it sure that the priorities and the expectations are cleared on the manufacturing department and supervisor staff must keep an eye on the staff work and they also make it sure that the clients are happy and they are perceiving the expected quality of services by negotiating with clients.

Looy et al., (2003) have been stated that while delivering the quality of services and products the staff members must take it into their considerations the all components of quality for successful achievements of business.

2.6    Gap reducing and Customer Loyalty

Bhote, (2006) has been stated that when the customer will perceived the quality of services and products as per its own choice then the satisfaction increased and the loyalty always increased because there is direct relationship between the satisfaction and loyalty, similarly the Getty and Thompson, (2007) have been stated that it is the loyalty factors that can be benefited for the organizations while making the market share and loyal people become testimonial and in this way the reference groups also come and buy products and services and the organizations can be benefited in this way as well. Whereas the Kandampully and Suhartanto, (2000) have been stated that relationship of customers with organizations, their decision making power and buying making decision, customer’s loyalty and services and product’s quality have the a major difference among all of them and the clients make a big difference, there are some customer those always buy and pay low price to buy product or service and some of them always pay their emphasis on the quality of services which includes the luxury and their privacy as well, and they do not like that others may interfere in their privacy. To create the loyalty to achieve the loyalty for achieving organizational objectives the CRM staff must pat its attention to reducing the gap between the customer’s expectations and offered quality of services and products for the successful business operations. Some scholars Reicheld and Sasser, (2003) have been stated that loyalty always enhance the sales volume and the loyalty can be built among the customers by identifying their needs and wants and then as per their demands and expectations the necessary quality of services and products can be offered to those customers for building strong and long term relationships with them in hotel industry for making more money.

2.7    Client’s attitude

According to the Schlesinger and Heskett, (2002) that in order to create the loyalty among the customer it is very important for the organizations to first identify their attitudes, because through their attitude their expectations can be identified, some women do not like if the staff members follow them and they ask them on the telephone line about tea of coffee and even then if the male staff member ask them about their schedule and those women prefer that the female staff deal with them. Jones and Sasser, (2005) have been stated that re sales and frequency of the customer are the main factors to measure the customer’s attitude and behaviour and in this way the attitude can be understand by the companies especially by the hotels in United Kingdom. Loyalty is a factor that can be created among the clients by identifying their main expectations and needs and wants and after offering them the service and products as per their needs and wants the loyalty can be created easily and in other means it is not easy to create among the clients. The Customer relationship management staff need the especial skills, competencies and abilities to identify the clients attitude to create the loyalty among them for making suitable sales and building long term basis relationships with them for achieving organizational objective in efficient manners and those trainings and policies are the actual parts of their duties and these are basically tools for them to identify their attitudes and demands and finally their attitudes towards services and products and their quality for making more money. Some scholar have been stated that the there is a gap exist between the organizations and the clients and due to this gap the organizations are suffering from the market share loss and it is easy for the organizations to reduce and minimize this gap by just identifying their attitude and their expectations for offering them suitable products and quality of services (Zeithaml, et al., 2006).

2.8    Skilled employees and Customer’s complaints handling

To handle the angry customer’s complaints it is important for the customer relationship management to understand their requirements and their problems to make proper solution of their problems and for this they need some special skills and information to handle the client’s problems and their needs first to identify and then creating the happiness and satisfaction by offering them the best and reasonable solution for loyalty (Zeithaml et al., 2006). This is customer relationship management manager’s duty to allocate proper resources which includes the trainings, competitor’s products and services complete information and the customer’s information, necessary skills and delegate the necessary authorities for solving the customer’s problem and in this way the loyalty and satisfaction can be created the only one way is that the CRM departmental attention is necessary in whole this procedure, and skilled employees can play their effective role in enhancing the customer’s loyalty and increase the profit ratio by their expertise and their skills by handling angry clients and creating loyalty among them (Helgesen, 2006). And Kim, (2005) has stated that it is the only loyalty that can be created by the skills and trained person and only the Customer relationship management department can train and equip its employees with suitable skills and proper trainings to accommodate its customers while handling their complaints and fulfilling their needs and requirements and creating happiness among them, and in this way CRM department can play its effective and efficient role in achieving main objectives of an organization. You can measure the loyalty level of customers in hotel industry while taking their feedback and their opinions and you will come to know the exact ratio of satisfied customers and you can ask them their priorities and ask them their expectations for more positive results (Gundersen et al., 2006). After selling the product or services the CRM staff can ask the customers about their experience about that service or products and in this way the CRM department can make amendment and can make change and can achieve financial objectives in good way and the market ratio can be captured at maximum level and thus the profit will be achieved maximum level, but the main factor is the skilled workers because without highly skilled worker it is not easy task (Oliver, 2002). Rather than to spent money on the CRM department the hotels management must provide the best offers, cheap offers and more decorated rooms, good services, more high quality of stuff, food, residence packages and other benefits just to create the loyalty and creating strong and long term relationship with them, but this all is possible in a situation that when the hotel’s administration provide the suitable offers of its services and products on reasonable price (Chi and Qu, 2008).

2.9    Luxury and Privacy

In hotel management the customer relationship management can play its role in creating loyalty in so many ways and some of them are discussed here like handling the client’s complaints, feedback and offering them the suitable offers and on reasonable prices and one more intrusting and beneficial thing is that the customers have two type of expectations in the hotel industry, first of all the luxury environment and second one is the privacy and the people need privacy and they like privacy, all the tourists need privacy and luxury because after whole day journey they need peace and calm in luxury and privacy environment so the CRM department can achieve this opportunity (Bowen & Shoemaker, 2008). There are some other very common and very important factors those can also participate in achieving organizational objectives especially in the hotel management sector with its CRM department which includes decoration, services offering style, staff manners, staff attitude, politeness, dealing with the customers and prompt services also can create happiness and loyalty among the clients and in this way the hotel can achieve the targets and market share in this way as well, because CRM is always responsible for capturing new clients and retaining old client as well. According to Su, (2004) that it is proved that the Luxury and the privacy are the most common factors those can play their important role in creating loyalty among customers in hotel industry and skilled workers can easily judge their priority and can offer them the suitable services and products. cleanliness, food, taste, variety of other things like food, pooling, games, grounds, cabs these all are the necessary but sales booster but the loyalty can be only built by the CRM effective policies.

2.10  Conceptual Framework of Literature Review

The researcher has designed the figure for conceptual framework of review of literature and the researcher has been explained the flow of work as explained in the below figure and researcher has explained each step in detail.

All the business organizations have their own goals and objective to achieve them the organizations do the business operation and transaction also done by the organizations. The above figure has mentioned that there is a positive impact of CRM department and its activities on the sales and the growth of the organization while contributing its staff in the business operations in achieving organizational main goals and objectives and in the growth of organization. Most of the business organizations have the same business operations and same economical objectives and goals. To achieve those business goals and objectives the business organizations it is necessary for the organizations to have clients from the target market and this proportion is called the market share and the volume of sales depends on the market share this ratio is directly proportional with the sales and profit as the researcher has explained in the above literature review. In the same market all the competitors provide the same services and products and the difference between the strategies and policies always leads the organization towards achieving organizational objectives especially in achieving market share maximum and sales volume. All organizations in the same industry trying their best to sell their services and products and for selling these products and services organizations have customer services department to develop and design the business strategies and policies and to identify the customer’s requirements. To make differentiation among the services and products the organizations can offer the variety of products and services on the behalf of high level of quality and other improving its services especially in the hospitality sector. To create the loyalty and satisfaction in order to achieve the sales targets and growth targets the organizations have the CRM department and the department is responsible for complaints handling and providing sufficient quality of services to the clients, and in hotel industry the main focus of the CRM department is always to recognize the customer’s expectations and requirements for offering them the suitable quality of services and products to achieve the targeted market share and sales and growth targets.

Chapter # 3:     Research Methodology

3.1    Introduction

The researcher has explained in detail the way of research and the methods he has adopted to conduct this research in detail and all those resources and the associated resources, sampling size, population size and primary and secondary data gathering techniques, data presentation and tools used in this research have been discussed in detail. The researcher has explained the aims and objectives of this research here in this section and all about the procedures of this research have been explained in this section. According to Soderlund, (2008) that the researcher must keep all the record of the research conducting which includes the methods, procedures, techniques and analysis tools and population and sample size as well as the main objectives of the research must be keep in record. According to the Reinartz and Kumar, (2003) that the researcher must follow a research method and keep record of all the work, due to the research method the researcher will save the resources and cost and the results are always valid and reliable when the researcher has adopted the specific way and method to conduct the research. Here in this research method the researcher has adopted the mix of qualitative and quantitative research method and selected a Case Study as tool to conduct the research because the research is associated with the academic purpose and the researcher has no such experience o research conducting and for the inexperienced person the case study tool is the better way to conduct the research and the researcher when has no time and money and for saving the time and resources the researcher must select the combination of qualitative and quantitative research methods and in the qualitative research methods the researcher must use the questionnaires for conducting the research.

3.2    Research aims and Objectives

There are the following aims and objectives of this research and all of those objectives have been discussed below one by one in detail, the researcher has explained the importance of customer relationship management in identifying organizational objectives and identification of customer’s requirements and other factors those can play its role effectively in the growth of organization. The researcher has also explained the main aims and objective of this research and has explained the relationship of sales with the loyalty and the satisfaction and the effective strategies designed by the customer relationship management and implementing these effective strategies for the positive output. Through the review of literature the researcher has discussed about the customer relationship management it is clear that there is direct relationship of sales with loyalty and satisfaction. The main research objectives and aims are given below in detail one by one

What is the relationship between the sales and the customer expectations?

What is the main relationship between the customer’s expectations and the customer relationship management department and its strategies?

How the customer relationship management can develop effective strategies for achieving organizational objectives and identify the customer’s expectations?

How the customer relationship management can reduce the gap between the customer’s expectations and the offered quality of services and products in well manners in hotel industry?

Which factors can create the main gap between the customer’s requirements and the customer relationship management?

How the CRM can reduce the gap between the different level of the gap and the factors that can minimize this gap?

What are the main benefits of customer relationship management strategies and its importance in the hotel management and the effectiveness of its policies in hotel industry?

Which factors can create more loyalty and satisfaction among the clients in the hotel industry for achieving the organizational objectives?

What are the changes and amendments are required by the selected hotel for improving the customer relationship management strategies and policies to achieve organizational objective in effective way in order to become market leader in the hotel industry in United Kingdom?

The researcher will describe the conclusion and make the positive suggestions for the selected hotel to improve the weak areas and will also describe about the opportunities and its proper way to achieve them for positive outcomes.

3.3    Research method

The researcher has completely described the research method that was selected and used by the research to conduct the research, before selection of research method the researcher has keep all the aims and objectives of the research and all available resources and the cost associated with the research and its own expertise in the mind and then the research has made the research method selection. In this research as the research is completely associated with the quality based analysis and methods and for this purpose the researcher has been selected the both qualitative and quantitative research method and for achieving organizational objectives the research has been described to select the Holidays Inn hotel situated in the London United Kingdom as a research tool and the researcher has followed the case study tool, according to the Soderlund, (2008) that the researcher can achieve the organizational aims and objectives in effective and in easy way. Same the Flyvbjerg, (2006) stated that the researcher must follow the research method for achieving organizational objectives. According to the Reinartz and Kumar, (2003) have been stated that the aims and the objectives of the research always provide a way to the researcher for selecting either qualitative or quantitative methods or both of them and the researcher can also select the other resources and way of resource as on the behalf of the aims and objectives of the research. Here in this research as the research aims and objectives have been described above and as per the aims and objectives of the research the researcher has selected the qualitative research method and designed the questionnaires and designed the questions as per the aims and objective of the research, the researcher has decided to conduct the interviews of the administration staff members. And the researcher has decided to gather the primary data by conducting the semi structured type of interviews to obtain the research aims and objectives in all ways and the research method always gave a path way to the research to conduct the research according to the aims and objectives of the research. In order to gather valid and reliable primary data the researcher must conduct the semi structured interviews and designed the questionnaires effectively (Reinartz and Kumar, 2003). The researcher will use the computerized tables and paper work to record the primary data and will use the different tools like charts and tables to analyse the data for making conclusions. In order to gather valid and reliable primary data the researcher must use the specific way to collect, gather, analyse the research method (Soderlund, 2008).

3.4    Case Study

According to the Feagin et al., (2001) that the researcher can achieve the organizational objects while selecting the case study as a tool to achieve the organizational objectives while selecting the organization as a case study tool when the researcher has no experience. According to the Stakes, (2005) that the case study is the best way to conduct the research when the researcher has no back ground of research conducting and the best method of conducting the primary research is the case study tool for positive (valid and reliable) outcomes, and in the case study selection the researcher can pay its full attention on the aims and objectives of the research because in the case study selection the researcher has a chance to consider its main focus on the specific people and on the specific methods. Here in this research the researcher has been selected the case study tool as a research method due to some reasons which involves the limitations of the research, that the researcher is a student and has no enough money to spend on large number of sample size and can select more than one hotels as case study tools secondly the main important aspect of this research and limitation of this research is that the researcher do not have unlimited time or sufficient time to conduct the research on large scale, so availability of time and finance are the main two important constraints of this research. Although the customer relationship management and its effective strategies are well implemented in the selected hotel and researcher want to fulfill the criteria for obtaining the academic master degree. According to the Flyvbjerg, (2006) that the researchers can select the case study as a research tool to obtain valid and reliable results from the research, and in this research the researcher has been selected the Holiday Inn hotel due to following reasons.

This hotel has many branches in all over the world and it has customer relationship management department in operation effectively and the management has been granted the permission to the administration to conduct the research and the administration has promised to allocate the necessary resources for the researcher to continue the research.

The Holiday Inn hotel has the latest technology and the human resource management and the HR department has designed the effective strategies for training and development the career development of its employees in all the branches and the Hotel branches have effectively implemented the HR system and CRM system effectively in the branches for booking and all the branches are connected with each others.

The CRM department is most active and effective strategies for achieving organizational objectives and effective strategies and policies for doing creating the loyalty and satisfaction among the customers and for capturing the most market share and new customers from the market.

The Holiday Inn hotel has the strong strategies and effective resources to provide the necessary services at high level of quality and products to the customers which includes like swimming pools, Television lounge, common room, dining hall, meeting room, decoration, taste, recipes, auto doors auto shower, furniture and all other system like music system, telephone system, whole night services availability, pick and drop facility and other facilities have been remained always in the considerations of management and management remained always up to date about the activities of staff members. The researcher has the following questions to conduct that research and the researcher was interested in finding the answers of these questions.

3.5    Population and Sample Size

The researcher has decided to conduct the interview from the key responsible in the Hotel management and they must be about 5 people and the researcher has been decided to distribute the questionnaires among the 80 respondents which includes the males and females and their age range is in between the 18 years to 55 years and the mix of genders will be selected by the researcher, one thing is more important that the researcher has selected all the respondents on random basis. According to the Powell and Single, (2006) that the researcher must first decided about the sample size and must include the both ganders while distributing the questionnaires among them and the best way to distribute the questionnaires is randomly method.

DescriptionMale RespondentsFemale RespondentsTotal
 404080
Percentage50%50%100
Age Range18 years to 55 Years18 years to 55 Years 

According to the Macintosh & Lockshin, (2007) that researcher must have the abilities to design the effective questions and to design and distribute the questionnaires among the respondents while maintaining the quality, validity and reliability of the questions. Whereas the Powell et al., (2006) have been stated that the researcher must keep the aims and objectives in the mind while designing the open and close ended questions to find out the main and actual problem of the customers and the researcher must find out the problem of the customers and must keep all the aims and importance of CRM department in researcher mind.

3.6    Source of Primary and Secondary data

The researcher will use the books, electronics books, journals and electronics journals, magazines, newspapers and websites and reports to gather the secondary data and the other issues which are related with the importance of the customer relationship management and its role in finding out the gap between the customer’s expectations and the offered quality of services and products for gathering secondary data whereas for gathering the primary data the researcher has distributed the questionnaires and the researcher has included the mix of open ended and close ended questions in the questionnaires and the semi structured interviews were conducted by the researcher to find out the primary research.

3.6.1  Questions

Following questions were designed to get response from the respondents to gather primary data and the researcher has selected the CRM employee (key staff members) for the response. The researcher has keep in mind the importance of CRM department and its role in reducing the gap and in creating loyalty and satisfaction among the customers.

What is the role of customer relationship management in the hotel industry?

How can you define the gap between the customer’s expectations and the offered quality of services?

How do you believe that Customer relationship management can reduce this gap and can create the loyalty and satisfaction among the clients?

How do you believe that customer relationship management can play its effective role in achieving organizational objectives?

3.6.2  Questionnaire

According to the Soderlund, (2008) that the researcher can obtain the real fact if the researcher can design the open and close ended questions in the questionnaires and can design the questions according to achieve the organizational objectives. The researcher has designed the following questions

Question:         Why did you come in this hotel?

Questions:       Did you ever been here (in this hotel) before and for how long you are coming and how many times you been here?

Question:         Are you satisfied by the quality of services offered by this hotel CRM department?

Question:         Do you believe in the gap between the customer expectations and the offered quality of services and products?

Question:         Do you believe that the customer relationship management department can play its effective role for enhancing sales and growth of an organization in the hotel industry and will reduce the gap between the customer’s expectations and the offered quality of services and products?

Question:         Did you ever find the CRM staff helpful for their problem handling and in identifying their expectations to reduce the gap?

Question:         Do you believe that is there a link between the customer’s expectations and their loyalty and satisfaction?

Question:         Do you believe that loyalty and satisfaction can lead towards the re sale and can create the happiness for customers?

Question:         Which factors can play their important role in identifying their expectations and in creating more quality and happiness as compared to the other hotels?

Question:         Which one or set of priorities would you like to prefer while booking a room in Holiday Inn and common factors those can helpful in identifying their expectations as well?

Question:         Did you ever register the complaints about the gap between offered quality of services and products and their expected quality of services and products?

Question:         Did you ever receive the response from CRM department against registered complaints and did they provide you the solutions at the spot or not?

Question:         Did you ever share your feelings, loyalty and your experience about the hotel quality of services with your friends, family friends and your colleagues?

Question:         Do you believe that the price and quality can play their role in creating loyalty and satisfaction among the customer in the hotel industry?

Chapter # 4:     Data presentation and Analysis

4.1    Introduction

Here in this section the researcher has been described that the researcher has used the pie and bar charts to show the results and association of different factors has been showed in the charts, the researcher has used the percentage and ratio calculations to show the interest and dependencies of different factors on each other in effective way and has been described the relationship of different factors on each other.

4.2    Interviews

In order to gather the primary data the one main tool was to conduct the interviews of the key responsible people at Holiday Inn hotel, so for conducting the interview the researcher first of all get the permission from the head office and the manager allowed the researcher to conduct the research and the appropriate resources were allocated to the researcher by the hotel manager and one meeting was called by the manager and all the key responsible were introduced to me for all kind of help related with research. During the interview and during the distribution of questionnaires the researcher feel that the staff member including administration and customer relationship management all were very cooperative and they allowed researcher to meet with customers and they allocate me the proper resources and facilities for conducting the research. During the research the researcher gather the necessary information and one by one all the data has been presented in bar and pie charts. The following questions were asked by the researcher during the research and the appropriate results are also given here and conclusion has been presented in the end of the interviews.

Question:        What is the role of customer relationship management in the hotel industry?

Answer:

This question was asked by the researcher to know about the main responsibilities of customer relationship management in the hotel industry and then the researcher can understand the role of this department and then the recommendations and suggestions can be designed and then the questions related with customers can be amended or changed as per according to the CRM department. The manager of the department responded that the customer relationship management is responsible for the following activities in the hotel industry

To understand the client’s expectations

Find out the necessary opportunities in the market

According to client’s expectations offering them the suitable services and products

Those services and products can be offered through highly skilled staff

CRM is responsible for skilled workers

CRM is mainly responsible to measure the staff skills and make necessary arrangement to improve the necessary skills and update the skills as per improvements and change in the technology

CRM is responsible for creating strong and long term relationship with the clients and profitable relationship with the clients

Developing most appropriate CRM strategies for increasing sales volume and retaining old clients and making new clients

Question:        How can you define the gap between the customer’s expectations and the offered quality of services?

Answer:

The researcher has asked the above question to the respondents to understand the main problem and main role of customer relationship management and to understand the knowledge of CRM staff and their possible efforts for solving the problem to create more satisfaction and loyalty among the clients for increasing sales volume and growth of organization. The respondents replied that customers come on visits and for official tours from all over the world especially from America, Middle East or from Pakistan, India and Canada or from the Europe and they all stayed here for about 2 weeks for their official visits and sometimes they stay for 1 week like Government delegations they stayed here with us for more than 2 days and all these people need luxury and privacy environment and sometimes when the visitors came and stay with us they have also their own priorities. I mean that different clients from different origins have their different cultures and they have different habits and food and tastes, so it is very hard for the CRM department to offer them the services and products as per their own desires and this is the main factor to understand their requirements. For identification of their requirements CRM department need highly skilled professional staff and for this purpose they have the highly qualified and skilled staff to understand their requirement and the Holiday Inn have very good and effective software that help the CRM department to recognize their expectations, and then after the identification of their requirement the information has been passed to the concerned department for manufacturing the services and products as per the client’s requirement for creating the happiness and satisfaction among them. So this is not possible but not impossible for CRM department to understand their expectations and their main requirement and then as per their requirements the quality of services and products can be offered to the clients. Quality means the speed, feedback response, taste, ingredients, style of services, quick response and neat and cleanliness environment, matching, painting and wall paints and decoration inside and outside, beautiful environment and peace and music selection these collectively called the quality of service and products quality. So when the skilled worker could not understand the proper requirement of the client due to communication problem or due to some other reasons then it happened and the customers could not sometimes deliver his or her requirements due to culture and communication barrier in this way the gap between customer expectations and offered quality of services and products increased and the customer relationship management could not create loyalty and satisfaction among the clients effectively.

Question:        How do you believe that Customer relationship management can reduce this gap and can create the loyalty and satisfaction among the clients?

Answer:

In order to understand the effectiveness of CRM department the researcher has described this question to know about the responsibilities of this department effectively and the researcher came to know that the respondents responded that as this is the main duty of CRM department to understand the main requirements of the CRM staff members to understand the customer’s requirements and then as per their requirements the quality of services and products must be offered and in this way the CRM department can reduce this gap and ultimately the happiness and level of satisfaction will be created among the customers and the organization will achieve its financial objectives in better way. The CRM is responsible for equipping its staff as per new technology and necessary trainings and courses and new methods and procedures have been introduced to the staff members and the trainings sessions have been arranged for the staff members to achieve organizational objectives in well manners and positively the staff members can identify their requirements and for this purpose the old data of the client must be saved in the computer that will be more helpful for the CRM department to understand the main requirements of the specific client. The CRM department can consider the following factors into its consideration to reduce the gap which are given below

Fulfilling the commitments

By providing the high quality of both products and services

Fast and quick feedback

Through creating better image of brand

Offers at highly quality but low price

Taking into consideration the Luxury and privacy of clients and offered them the suitable and necessary requirements

Question:        How do you believe that customer relationship management can play its effective role in achieving organizational objectives?

Answer:

The respondents responded that yes the customer relationship management can play its role in achieving organizational objectives in efficient way and in achieving financial and growth related objectives as well. The steps are given below

Research the opportunity available in the target market

Staff skills

Identification of problems

Passing information to the concerned department

Manufacturing the services and products

Offering to the customers

Review the whole process

Take the feedback from the consumer

Make amendments

Handling their complaints

Review the process again

Measure the staff abilities and skills and arrangements for trainings as per requirements

Gathering customers requirements and taking their opinion

Review the whole process and making amendments and changes as per requirement

4.3    Conclusion

As this has been described by the researcher that the CRM department in the hotel is mainly responsible for the strategies development and then implementing those strategies and policies for achieving organizational objectives by enhancement in the sales and increasing the volume of sales high by retaining the old client and capturing new clients from the market by offering suitable products and services at high quality to the customers and by creating strong and long term relationships for earning more profit from them. The gap always exist due to communication barriers and cultural barrier, and the target market based on mostly on the foreign tours and foreign delegations and they have different cultures and their habits and food taste and their priorities also differ from each other so the gap between their expectations and offered quality of services increases and the CRM department is trying its best level to minimize this gap. It is also recommended by the management that the CRM has the resources and financial budget to equip its staff to face any kind of challenge in the future and on current situation so it depends on them and they must equip their staff to remained them update and software can also be helpful in reducing the gap between the CRM department and the customers satisfaction. The customer relationship management can also play its role in creating loyalty and happiness among the customers and in this way the organizational objectives can be achieved.

4.4    Questionnaires

The following questions their answers and the analysis have been presented by the researcher in detail and each separately have been described by the researcher the researcher has use graphical representation of each response in detail and have been made the recommendations and conclusion in detail in the next chapter.

Question:        Why did you come in this hotel?

Answer:

Respondents ReasonsMaleFemaleTotal
To meet someone112
To attend a seminar213
Visit the country221840
For official visit141933
To attend marriage ceremony112
Total404080

The researcher has designed this question to understand the purpose of the customers inside the hotel because if they are just visitors then the response can affect the research and the target market of the hotel is the foreigner visitors and official visitors, anyway majority of the people responded that they are in the hotel for the official and as a tourists in the United Kingdom.

In the given both charts the researcher came to know that the majority of the respondents belongs to the tourists and the second big number is belongs to the official tourists that belongs to the business meetings and for the government delegations where as the other purposes can be neglected and the main focus of the Holiday Inn must be on the foreigner tourists and on the official visitors because their proportion showed that these two kind of group mainly stayed in the hotels. The majority of the people is 49% those belongs to the foreign tourists and they stayed at the hotel and the second major proportion is the foreigner official delegation those stayed at the hotel.

Questions:      Did you ever been here (in this hotel) before and for how long you are coming and how many times you been here?

Answer:

Respondent’s Frequency per YearMaleFemaleTotal
Never Before325
1 to 5 times a year151732
5 to 10 times111021
15 to 20 times6713
More than 20 times549
Total404080

In this question the researcher has asked the respondents about their frequency of visits in London because there are some reasons behind the visitors’ tours in London, some of the people came here for the business purpose because the main services offering sector of the world belongs to London city and from the middle east and from the all over the world (European Union Countries) official visitors came for dealing and negotiation with the official people in London and whole year the tourists from all over the world they came in London for visiting historical places and they prefer to stay in hotels and they prefer to stay in the hotel as per their requirements. So from the responses the researcher came to know that majority composed of 41% of the tourists came in London and they belongs to minimum 1 and maximum 5 times in a year, whereas the next major proportion is the 26% that people visit the London minimum 5 times and maximum for 10 times in a year, and then 16% of the tourists belong to the group those came in London for minimum 15 and maximum 20 times in a year and 11% of the people visits the London more than 20 times in a year and 6% came in London for the first time, so from the responses the researcher came to know that the opportunity is available in the market to capture more new clients from the target market and in this way the CRM department can make more benefits for the organizations.

Question:        Are you satisfied by the quality of services offered by this hotel CRM department?

Answer:

Serial #RespondentsMaleFemaleTotal
1Yes343064
2No8816
Total 404080

The researcher has asked this question to understand the level of satisfaction among the customers so that the CRM strategies and the identification of the expectations of the customers can be identified and this process can be reviewed for the effective and positive outcomes of the CRM policies. So from the respondents it is very clear that the 80% of the respondents are satisfied with the quality of services and products offered by the Holidays Inn customer relationship management. And this ratio showed that the customer relationship management is offering the high quality of services and the products to the customers and it means that the CRM department has been implemented the system to recognize their expectations and the staff members have been the necessary skills to understand their expectations in the hotel.  

Question:        Do you believe in the gap between the customer expectations and the offered quality of services and products?

Answer:

Serial #RespondentsYesNoTotal
1Male38240
2Female38240
Total 76480

From this question the respondent came to know that 95% of the respondents have believe in the gap between their expectations and the only 5% of the respondents do not have an idea about the gap existence. A significant majority have the awareness about the gap between the customer’s expectations and the offered quality of services and products to the customers.

Question:        Do you believe that the customer relationship management department can play its effective role for enhancing sales and growth of an organization in the hotel industry and will reduce the gap between the customer’s expectations and the offered quality of services and products?

Answer:

Serial #RespondentsYesNoTotal
1Male32840
2Female301040
Total 621880

The researcher wants to know about the importance of the customer relationship management and its importance towards their problem solution and the researcher wants to know about the awareness of clients regarding the CRM effectiveness in the hotel industry, the respondents showed that 77% of the respondents responded that they believe in the effectiveness of customer problem solutions and they believe that the CRM department can solve their all problems and there are only 23% of the respondents responded that they do not have knowledge about the effectiveness of CRM department.

Question:        Did you ever find the CRM staff helpful for their problem handling and in identifying their expectations to reduce the gap?

Answer:

Serial #RespondentsYesNoTotal
1Male32840
2Female301040
Total 681880

About 85% of the respondents replied that they believe in the importance of the customer relationship management and its practices towards problem solving and helpful for themselves and they have also believe in that the CRM can also reduce this gap between their expectations and perceived quality of services and products, whereas only the rest 15% did not believe in the CRM strategies or their effectiveness. There are some reasons behind this answer first of all the clients 15% which is not negligible amount may do not have some idea or they do not have the knowledge about the effectiveness about the CRM departmental activities and its advantages for them or they did not have such experience, they did not benefited by the staff members in both ways they have responded that CRM staff is no useful or helpful for them. In this situation the CRM department can pay its attention on both sides first of all the skills and the information and training of the staff members and secondly it must pay its attention towards the customers as well to gather their opinion and satisfaction level must be measured.

Question:        Do you believe that is there a link between the customer’s expectations and their loyalty and satisfaction?

Answer:

Serial #RespondentsYesNoTotal
1Male38240
2Female38240
Total 76480

As the 95% of the respondents have been responded that the customer’s expectations and their loyalty and satisfaction have a link, the 95% said that yes the link exist between their expectations and the loyalty, the main reason is that when the hotel administration will identify their expectations and their desires about the quality of the services and products then they will try their best to deliver the same quality of services and products and in this case the CRM department will automatically created the happiness and loyalty among the clients and satisfaction will be there that when the client will receive as per their own expectations and wishes then they will happy and will pay the bill by smiling and they will pay thanks as well otherwise they will become angry and they will never come again.

Question:        Do you believe that loyalty and satisfaction can lead towards the re sale and can create the happiness for customers?

Answer:

Serial #RespondentsYesNoTotal
1Male40040
2Female40040
Total 80080

100% of the respondents replied that there is no doubt and they all have believe in that loyalty and satisfaction are the factors those will lead them for re sale and become the reason of happiness among the customers and they all have believe in the satisfaction and the loyalty creating by identifying their expectations and by reducing the gap between the customer’s expectations and the offered or delivered quality of services and the products.

Question:        Which factors can play their important role in identifying their expectations and in creating more quality and happiness as compared to the other hotels?

Answer:

Serial #Important FactorsResponseTotal
1Quick response2626
2Employee attitude2248
3Commitments1260
4Offerings1878
5Brand Image280
Total 8080

The above question was designed to know about the factors those can play their important role in creating quality and creating loyalty and happiness to reduce the gap between the customer’s expectations and the offered quality of services and products so the customers have the priorities like 32% of the people believe that fast and quick response can create the quality of services and products whereas 27% of the respondents have responded that staff behaviour that includes the style, way of talking, communication and dealing is the major factors that can create quality and satisfaction among the customers, then 23% of the respondents have responded that offers which includes the low price at high level or pay for 2 nights and get i night free or book for 7 days and dinner and breakfast free same like the hotel must offer to create the quality and happiness among the customers and 15% of the respondents have replied that promises also play their important role in creating quality of services and products and happiness among the customers and there is no doubt that the keeping words and honour the promises always bring happiness and loyalty among the customers, only 3 % respondents have responded that brand image can create happiness and loyalty among the customers. As the customers have been stated that the gap can be reduced if the above mentioned factors can be involved in the process of expectations identification process by CRM department then it is possible for them.

Question:        Which one or set of priorities would you like to prefer while booking a room in Holiday Inn and common factors those can helpful in identifying their expectations as well?

Answer:

Promises, Quality of services and products, Quick response of your call, Behaviour

Respondent’s Priorities listYesNoTotal Respondents
Quick response of call701080
Promises75580
Quality of services and Products76480
Staff behaviour78280

From the above question and answer the researcher came to know about the customer’s priorities and their main factors and their expectations priorities while and before booking the room at Holiday Inn hotel in London, majority of the respondents have been responded that about first of all the customers gave the priority to the staff behaviour and after the behaviour the quality of the services and products is the priority of the customers while before booking the room at Holiday Inn and then their priority is always promises made by the hotel while marketing campaign and in the last the priority is quick response always while the customers make a booking with Holiday Inn, and the CRM department must take care of these priorities for their expectations as well.

Question:        Did you ever register the complaints about the gap between offered quality of services and products and their expected quality of services and products?

Answer:

Serial #RespondentsYesNoTotal
1Male32840
2Female281240
Total 602080

Most of the respondents have been responded in yes that they have registered their complaints against the gap and this ratio is 75% the higher ratio and only the 25% of the respondents have been responded that they never registered their any complaints against the gap regarding the quality of services and products.

Question:        Did you ever receive the response from CRM department against registered complaints and did they provide you the solutions at the spot or not?

Answer:

Serial #RespondentsYesNoTotal
1Male38240
2Female38240
Total 765480

Majority like 95% of the respondents have been responded that the CRM department has responded them and the CRM department has responded them and provide them the best option and solution of their problems, only 5% people responded that they did not received the solution of their problems and they remained angry and waited for the solution. SO THE CRM department must take care of the customer complaints handling for creating loyalty and satisfaction among the clients.

Question:        Did you ever share your feelings, loyalty and your experience about the hotel quality of services with your friends, family friends and your colleagues?

Answer:

Serial #RespondentsYesNoTotal
1Male36440
2Female38240
Total 74680

Majority of the people like 92% of the respondents have been responded that they share their experience of the travel and about their satisfaction and loyalty, quality of services and products with their colleagues and with their family members and with their family friends. Only 8% of the respondents did not share their experience with their family, friends and colleagues. It might be possible that those people do not have their social network or it might be possible that these people do not like to share their personals with the other people.

Question:        Do you believe that the price and quality can play their role in creating loyalty and satisfaction among the customer in the hotel industry?

Answer:

Serial #RespondentsYesNoTotal
1Male40040
2Female40040
Total 80080

There are two types of customer quality conscious and quality conscious, and always customers gave priority to the high quality of products at low price items and that’s why 100% of the respondents have been responded that the price and quality always play its role in creating loyalty and happiness among the customers. And all the customers have been responded in yes that it is the main desire of every customer in the world that the price of services and products must be low but the quality must be high.

4.5    Discussion/Conclusion

In the last after gathering primary data and making analysis on the data the researcher came to know that the CRM department is working at its best in the Hotel and the staff is also working and majority of the customers are happy with the staff and the policies of the Holiday Inn hotel. The researcher has designed all the above mentioned questions by keeping all the aims and objectives of the research and conducted the research and main conclusion and recommendations have been made in the next chapter. Here after conducting and making analysis on the data the researcher came to know that the gap exist between the customer’s expectations and the offered quality of services and products and the customer have the knowledge about the factors those can play their role in identifying their expectations and the customer relationship management has skilled employees and the customers are happy with the policies and strategies of the CRM department at Holiday Inn, some of the amendments are required by the CRM department in order to understand the customer’s requirements and to identify their needs and demands for achieving organizational objectives and goals. 

Chapter # 5:     Conclusions and suggestions

5.1    Limitations and Conclusion

The researcher has some limitation associated with this research and the major limitations were also discussed by the researcher in the first chapter by the researcher and the researcher has explained about the overcome way, first of all the time schedule problem that the researcher has very short time to cover the research for the academic purpose and second thing is that the researcher has no such an experience to conduct the research in a professional way to overcome these problems the researcher has decided to select the case study and the hotel management has allocated the resources to the researcher and for the experience problem the researcher has selected the qualitative and quantitative research methods to conduct the research and for the valid and more reliable result the researcher has been selected about 80 respondents and for their response the researcher make it sure that the visitors are as according to the target market, while conducting the whole research the researcher has keep all the aims and objectives in the mind and then go through for the research. The management of the hotel has arranged for the tea and sitting arrangements for the researcher and the respondents. From the interview of customer relationship management department management the researcher has concluded that the customer relationship management is responsible for the customer care and for the identification of customer expectations and for the improvements of the system in order to gather customer’s data. The researcher has been concluded that according to the management the customer relationship management can also find out the actual expectations of the customers and can play its role in delivering the quality of services and products as per the client’s needs and expectations and in this way CRM departmental role can be proved that there is a deep link between the CRM activities and sales and growth of the Holiday Inn hotel in London and this is the main purpose of the research to find out the factors and CRM activities to increase the sales volume and its role in growth of hotel industry in United Kingdom while its role in reducing the gap between the customer’s expectations and the delivered quality of services and products. The researcher has found out that there is a link between the CRM department strategies and the customer’s satisfaction and the loyalty and the loyalty and satisfaction have the direct relationship with the sales and growth of the organization.

Majority of the clients have believe in that their expectations and their loyalty are attached and have a deep link with each other and if the CRM department successfully understand their expectations about the quality of services and products then they will be able to deliver the same quality of services and products and in this case the clients will become happy and the organization will successful in creating satisfaction and loyalty among the clients and the client will come again to buy the products and will hire the services from them again and in this case sales and the growth will increase.

The researcher has found out the factors those can play its role positively in the increasing the sales of the hotel while successfully creating the satisfaction and the happiness among the customers through effective CRM departmental policies and business strategies and overall its activities towards the betterment of hotel industry, the researcher came to know that there are some problems with the skilled staff workers while communicating with the clients to understand their actual problem and while dealing with them to understand their complaints and they do not have the proper authority to offer them the best alternative on the spot and this is the main problem with the CRM department that the quick response is always leads towards happiness. One thing is clear that most of the respondents have the knowledge about their expectations and they can easily understand their expectations and they can demand only for their expected quality of services and that’s why they have registered their complaint and the rest of the respondents have been responded that they never registered complaints about the quality of services and products this showed that they may do not have any complaints  and it  might be possible that CRM department have identified completely their expectations. This is very clear to all of the respondents about the gap existence between their expectations regarding the quality of the services and products and this gap is the main hindrance in achieving organizational objectives.

The researcher came to know that the CRM department and its activities at Holiday Inn need more concentrations and some factors as discussed above that need to be included in the process of identification of customer’s expectations. There are too opportunities available in the target market to capture more clients from the market and the Holidays Inn can become the market leader because most of the people have visited the London for different purposes and majority of the people came here for their different purposes minimum 5 times in a year. And this is the big target market for the hotel industry and the potential customer’s can be targeted by the CRM department for the organizational objectives and its achievements. In this way for achieving the market ratio and growth of organization the customer relationship management must design and implement the marketing strategies effectively and those strategies must be designed with the coordination with the research and development department and marketing department. The 20% is not the negligible amount and the CRM department must review the whole procedure as the researcher has described that the CRM department must consider those factors those can play role in identification the customer’s expectations which includes priority, privacy, luxury, food, taste, pick and drop facility, neat and cleanliness and decoration, fast response and decoration and more important factors like low cost but high quality of services and products must be undertaken these factors and the staff skills and especially their communication skills must be reviewed and necessary actions must be taken by the department to improve their skills and communication process between CRM department and manufacturing department for manufacturing the services and products as per client’s expectations and the performance measurement must be evaluate so that the customer’s complaints must be handle in efficient way to create happiness and satisfaction among the customers for earning more money and become the market leader.

The researcher came to know during the interview with the manager and the staff of CRM department and came to know that there are some challenges and problems faced by the department in Holiday Inn hotel and they have planned to face them successfully and they have been improved their system to minimize those threats by enhancing its threats.

All the customers have believe in the loyalty and satisfaction and they responded that trough their expectation identification the CRM department can create satisfaction and loyalty among them if they provide them the quality of services and products as per their expectations then there will be significant increase in the sales and organization will make growth and the organization will capture new more clients and old will be retained y the CRM department in this way.

Here the researcher concluded that the 77% of the customers are linked with the new technology and they have the how and know about the CRM and its effectiveness where as the remaining 23% of the customers do not have interest in the new technology either the message of the awareness about the CRM effectiveness could not reach to them. The 15% is not negligible amount of the respondents and the 85% of the respondents have believe in the advantages and helping behaviour of the CRM staff and this is the loyalty and the happiness for the customers but the remaining 15% must be taken into consideration by the CRM department and pay its full attention towards achieving the effectiveness of CRM department for these 15% by actions and making policies that why these customers have been ignored. It is clear from the respondents that promises, quick response, staff behaviour and offers and brand image can create the quality of services improve and better for creating more loyalty and satisfaction among the customers.

Majority of the respondents 92% people share their feelings, experience and quality of services and products with their family friends, friends and colleagues and probably they may recommend them the products and services as per their experience and in this way loyalty can play its role for free marketing and this reference group will make string and permanent new clients and will help in achieving satisfaction and loyalty among them.

5.2    Recommendations

The researcher came to know about the main responsibilities of the customer relationship management department in achieving organizational objectives and its main features and its role in creating happiness and satisfaction among the clients. The researcher has made some recommendations for the Holiday Inn hotel situated in the London 103-109 Southwark street London, England to get more positive results from the customer relationship management department. As according to the aims and objectives of the researcher the researcher has concluded the results after making analysis explained above and now made the suggestions for the Holiday Inn hotel to achieve its objectives while contributing the CRM departmental efforts positively, all the recommendations have been listed below

The hotel management must keep its full concentration on two types of target market number one is the foreigner tourists and second one is the official visitors those come and stayed in the United Kingdom and they pay high amount for short stay and those people expect high quality of services and products in the return of their amount, so the customer relationship management department must design the marketing plan for these two above stated targeted market to capture new clients and to hold and retain the old clients with the hotel for increasing the sales volume.

The customer relationship management must designed the marketing strategies with the coordination of other departments marketing and research and development department and after considering all those factors those can capture new and can retain old customers from the targeted market for achievement of organizational objectives.

The CRM department must review the specific skills and the software review according to the advance technology that has a great impact on the demand and expectations of the customers and the CRM department can also identified the expectations of the remaining 20% of the customers which is a major portion and the CRM department must check its communication process from top to bottom in the process of expectation identification in order to minimize the gap between the customer’s expectations and the quality of services offered to the customers in order achieve the main objectives to become market leader in hotel industry.

The researcher has suggested that the CRM must take it into consideration seriously and must design the promotional campaign and message convey policies must be affective and all other media channels used by the tourists for creating awareness among the tourists and making it sure that strategic alliance with the other business organizations is effectively conveying its message to the target people for awareness about CRM department.

CRM department must make it sure to get the feedback from them and in this way the customers will also feel that the CRM departmental staff is doing work for them and they can be benefited from them and in this way the more satisfaction and loyalty can be generated.

The CRM department must consider strictly the staff behaviour, brand image, always honour the promises made during the marketing campaign with the customers and always offer some kind of offers for the customers to attract them, to improve and increase the level of quality better and to make the customers happy and loyal with the Holiday Inn hotel.

To achieve organizational objectives the CRM department needs to pay its focus on the priorities of customers to create loyalty and satisfaction among the customers and for reducing the gap between the customer’s expectations and offered quality of services to capture more market share from the market and to earn more money from the customers.

Customer complaints handling process must be checked by the CRM department and the employee’s skills must be reviewed and they must be well equipped by all means in order to create happiness and loyalty among the clients so that they will come again to buy the products and services and sales volume will become high and organizational objectives will be achieved.

CRM department can reduce the gap between the customer expectations and offered quality of services and products to the customers by keeping in mind all those above discussed factors for identifying their expectations and for this purpose the CRM department must improve the staff skills and must keep in considerations the factors affecting priorities and expectations and increasing the quality of services and products and through the customer the free marketing opportunity can be availed.

All the customers want to buy the products at cheap price but with high quality of the products and in this way the CRM department in the Holiday Inn must design the offers to the customers and loyal customers in the seasons and loyalty card or the valued customers card guest card can be designed and a proper strategy must be designed by this department for special offers (low cost but high quality) in order to again attract these clients and in this way the old clients will also remain in contact and the new customers will also be captured by the CRM department from the market share easily and the organizational objectives can be achieved.

The hotel customer relationship management must find out the customer’s expectations and for this purpose the CRM department must update the software and must review the whole process because some important factors are missed from the software and those factors can play their important role in identification of customer’s expectations.

5.3    Further Research

There are some other factors and areas which must be taken into considerations by the CRM department in the Holiday Inn hotel for further progress and those factors can play their positive role in creating loyalty and satisfaction among the customers and in achieving organizational objectives. Which includes marketing strategies, mass marketing, hotel location and decoration of the rooms and furniture can also play their role in the achievement of organizational objectives positively.

Chapter # 6:     References and Bibliography

a.   Books and Journals

Anderson, E.W. (2005) Cross Strategy variation in customer satisfaction and retention, Marketing Letters, 24(13), pp: 412-546

Anderson, W. & Mittal, V. (2006) Strengthening the satisfaction-profit chain, Journal of Service Research, 13(9), pp: 97-234

Bennett, R. (2006) ‘Relationship formation and governance in consumer markets: transactional analysis versus the behaviourist approach’ Journal of Marketing Management, 43(9), pp: 117-256.

Bhote, K.R. (2006) Beyond Customer Satisfaction to Customer Loyalty: The Key to Greater Profitability. 1st ed. New York: AMA Management Briefing

Bowen, J. & Shoemaker, S. (2008) ‘Loyalty: a strategic commitment’ Cornell H.R.A. Quarterly, 23(13), pp: 123-145

Buttle, F. (2004) Customer Relationship Management: concepts and tools 2nd ed. Oxford:

Elsevier Butterworth-Heinemann

Caruana, A., Money, A.H. and Berthon, P.R. (2000) ‘Service quality and satisfaction-the moderation role of value’ European Journal of Marketing, 33 (9), pp: 1335-13360

Chen, I.J. & Popovich, K. (2003) ‘Understanding customer relationship management (CRM):

People, process and technology’ Business Process Management Journal, 11(12), pp. 222-777

Chi, Q. & Qu, H. (2008) ‘Examining the structural relationship of destination image, tourist satisfaction and destination loyalty: An integrated approach’ Tourism Management, 33(17), pp: 786-890

Feagin, J., Orum, A., & Sjoberg, G. (2001) A case for case study Chapel Hill, NC: University of North Carolina Press

Flyvbjerg, B. (2006) ‘Five Misunderstandings about Case Study Research’ Qualitative Inquiry, 17(7), pp: 313-562

Gefen, D. (2002) Customer loyalty in e-commerce, Journal of the Association for Information Systems, 12(9), pp: 123-167

Getty, J.M. and Thompson, K.N. (2007) ‘The relationship between quality, satisfaction, and recommending behaviour in lodging decision’ Journal of Hospitality & Leisure Marketing, 11(14), pp: 113-227

Gronroos, C. (2001) Service Management and Marketing, 3rd ed. Manchester: John Wiley &

Sons Ltd.

Gundersen, M.G., Heide, M. & Olsson, U. (2006) ‘Hotel Guest satisfaction among Business Travellers: What are the Important Factors?’ The Cornell Hotel and Restaurant Administration Quarterly, 37(12), pp: 145-457

Helgesen, O. (2006) ‘Are Loyal Customers profitable? Customer satisfaction customer action loyalty and customer profitability at the individual level’ Journal of Marketing Management, 34(17), pp: 123-323

Jones, T.O. and Sasser, E. (2005) ‘Why satisfied customer’s defects’ Harvard Business Review, 14(9), pp: 134-675

Kandampully, J. and Suhartanto, D. (2000) ‘Customer loyalty in the hotel industry: the role of customer satisfaction and image’ International Journal of Contemporary Hospitality Management, 10(9), pp: 364-252

Kim, H. (2005) ‘Developing an index of online customer satisfaction’ Journal of Financial Services Marketing, 23 (9), pp: 145-178

Looy, V., Gemmel, P. & Dierdonck, V. (2003) Services Management: An Integrated

approach, 2nd ed. London: Pearson Education Publishers

Macintosh, G. & Lockshin, L. (2007) ‘Retail relationships and loyalty: A multi-level perspective’ International Journal of Research in Marketing, 24(13), pp: 112-213

Oliver, R.L. (2001) Satisfaction: A Behavioral Perspective On The Consumer. 1st ed. Singapore: McGraw Hill

Oliver, R.L. (2002) ‘A Cognitive Model of the Antecedents and Consequences of satisfaction Decisions’ Journal of marketing Research, 22(13), pp: 324-478

Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1985) ‘A conceptual model of service quality and its implications for future research’, Journal of Marketing, 43(11), pp: 234-453

Powell R.A. & Single H.M. (2006) ‘Focus groups’ International Journal of Quality in Health Care, 27(12), pp: 113-254

Reicheld, F.F. & Sasser, W. (2003) ‘Zero defections comes to services’ Harvard Business Review, 18(12), pp: 105-111

Reinartz, W. J. & Kumar, V. (2003) ‘The impact of customer relationship characteristics on profitable lifetime duration’ Journal of Marketing, 23(7), pp: 123-453

Schneider, B. and Bowen, D.E. (2007) Understanding customer delight and outrage, Sloan Management Review, 17(11), pp: 156-289

Schlesinger, L. and Heskett, J. (2002) ‘The Service-Driven Service Company’ Harvard Business Review, 69 (15), pp: 111-240

Soderlund, M. (2008) ‘Customer satisfaction and its consequences on customer behaviour revisited: The impact of different levels of satisfaction on word-of-mouth, feedback to the supplier and loyalty’ International Journal of Service Industry Management, 15(11), pp: 113-512

Sugandhi, R.K. (2002) Customer Relationship Management. 3rd ed. New Delhi: New age

International Publishers

Zeithaml, V.A., Pasuraman, A. & Berry, L.L. (2006) Delivering Quality Service: Balancing Customer Perceptions and Expectations. 1st ed. New York: The Free Press

b.   Websites

http://www.ihg.com/holidayinn/hotels/us/en/reservation [Accessed on 13th March 2013]

http://www.ihg.com/holidayinn/hotels/us/en/reservation/rewardnights?scmisc=nav_rewardnights_hi [Accessed on 16th March 2013]

http://www.ihg.com/holidayinn/hotels/us/en/global/deals/DiscountPrograms?scmisc=nav_DiscountPrograms_hi [Accessed on 11th February 2013]

http://generallythinking.com/answers/research-methods/what-are-the-advantages-of-qualitative-research/ [Accessed 24th February 2013]

c.   Bibliography

Chi, C. and Qu, H. (2008) ‘Examining the structural relationship of destination image, tourist satisfaction and destination loyalty: An integrated approach’ Tourism Management, 29(12), pp: 624-636

Choi, T. and Chu, R. (2001) ‘Determinants of hotel guest’s satisfaction and repeat patronage in the Hong Kong hotel industry’ International Journal of Hospitality Management, 20(12), pp: 277-297

Faullent, R., Matzler, K. and Fuller, J. (2008) ‘The impact of satisfaction and image on loyalty: the case of Alpine ski resorts’ Managing Service Quality, 28(22), pp: 163-178

Gilbert, D. and Horsnell, S. (1998) ‘Customer satisfaction measurement practice in United Kingdom hotels’ Journal of Hospitality & Tourism Research, 22(14), pp: 450-464

Su, A.Y.L. (2004) ‘Customer satisfaction measurement practice in Taiwan hotels’ International Journal of Hospitality Management, 22(9), pp: 397-408

Appendices

Questionnaires

The following questionnaires were involved in the questionnaire

Question:         Why did you come in this hotel?

Questions:       Did you ever been here (in this hotel) before and for how long you are coming and how many times you been here?

Question:         Are you satisfied by the quality of services offered by this hotel CRM department?

Question:         Do you believe in the gap between the customer expectations and the offered quality of services and products?

Question:         Do you believe that the customer relationship management department can play its effective role for enhancing sales and growth of an organization in the hotel industry and will reduce the gap between the customer’s expectations and the offered quality of services and products?

Question:         Did you ever find the CRM staff helpful for their problem handling and in identifying their expectations to reduce the gap?

Question:         Do you believe that is there a link between the customer’s expectations and their loyalty and satisfaction?

Question:         Do you believe that loyalty and satisfaction can lead towards the re sale and can create the happiness for customers?

Question:         Which factors can play their important role in identifying their expectations and in creating more quality and happiness as compared to the other hotels?

Question:         Which one or set of priorities would you like to prefer while booking a room in Holiday Inn and common factors those can helpful in identifying their expectations as well?

Question:         Did you ever register the complaints about the gap between offered quality of services and products and their expected quality of services and products?

Question:         Did you ever receive the response from CRM department against registered complaints and did they provide you the solutions at the spot or not?

Question:         Did you ever share your feelings, loyalty and your experience about the hotel quality of services with your friends, family friends and your colleagues?

Question:         Do you believe that the price and quality can play their role in creating loyalty and satisfaction among the customer in the hotel industry?

Which factors can play their role in creating gap between the expectations and perceived quality of services

Introduction

1.1    Introduction

Different companies are offering their services and goods in the same market these days at different prices in the competition and it is era of high competition, whereas the customers are also looking for the best services and high quality of services and products at low prices and they do bargaining as much they can. There are some kinds of customers like price conscious, quality conscious and both price and quality conscious. Now days the customers are looking for better quality of service at reasonable prices. While in the hotel industry when customers are looking for the best deals and their preferences are different like luxury, neat and clean environment and privacy is also a major factor. In order to achieve organizational goals and objectives the business organizations are trying at their best level to create long term and good relationship with their customers for making money from them by offering them suitable and expected quality of services and products (Chen & Popovich, 2005). Similarly Sugandhi, (2004) stated that the organizations are paying their more attention on the quality of services provided to the customer instead of the other areas like manufacturing and delivering products, because they came to know that the quality of services is always appreciated by the customers and more loyalty can be generated through the quality of services. In the hotel industry the main focus of the organizations is to offer the best services to the clients and in this way the hotel industry organizations can achieve their ultimately goals and objectives effectively. The organization in the hotel industry can achieve more market share if there is no difference between the expectations and the perceived quality of services and products. Some customers are quality conscious and some are price conscious but in the hotel industry where the visitors came from abroad just for enjoyment and refreshment they need privacy, luxury, no tension and quality of services at reasonable price. So the main factors in the hotel industry are the privacy and the luxury factors and quality of services includes privacy, luxury and fast response. And it is not necessary that all the customers have the same expectations. Some visitors require only privacy and they do not bother about the luxury and some visitors need only quality of services like no disturbance, fast and quick response from hotel administration and some visitors looking for just stay they just care about their money they just bother the cheap price. In the hotel industry the main successive factor is to understand and identify the needs and wants (expectations) of customers and if the hotel administration has successfully delivered the expected quality of services and products then in such way the organization will achieve the organizational objectives in easy way. And in this way the hotel administration will be successfully increases the market share by identifying and delivering the expected quality of services and products to the clients.

1.2    Research Aims

Different customers have different priorities and demands which are called the expectations. The main aim of this research is to identify the gap of CRM activities in the United Kingdom in Hotel Industry. Basically the researcher wants to identify the effect of CRM gap on the sales and growth of organization. The researcher wants to identify the main gap which exists between the customer’s expectations and the perceived quality of services and products its role in sales and growth of the organization and its drawbacks will be also find out by the researcher. The researcher will also find out the reasons of the gap and kind of gaps those exist in an organization and its impact on the sales in hotel industry.

1.3    Research Objectives

There are following main objectives of this research

The researcher will find out the impact of gap exist in between the perceived quality of services and expected quality of services.

The researcher will also find out those factors that can increase and reduce the gap between the expectations and the perceived quality of services and products

The researcher will also disclose the role of CRM in reducing gap and role of CRM activities on the sales of organization in hotel industry.

The researcher will find out the factors those can play their role in increasing quality of services.

The researcher will find out the relationship between the quality of services and the CRM

1.4    Research Questions

The researcher has designed the following questions to achieve the above stated objectives

Is there gap exist in CRM activities?

Which factors can play their role in creating gap between the expectations and perceived quality of services?

Which factors can reduce this gap for achieving organizational objectives effectively?

What is the relationship between the gap and CRM activities?

How CRM can reduce the gap?

What are the main impacts of CRM activities on the sales and customer retention in hotel industry?

1.5    Scope of Study

In the competition and in the same industry all the hotels are offering the same products and services and it is very hard for the hotels to increase their market share. But there is a hope and positive signs are available that if the gap between the expectations of the customers and perceived quality of services and products can be identified and successfully reduced then the market share can be increased and in such a way the organization can achieve the organizational objectives successfully efficiently and effectively.

1.6    Ethical Considerations

The researcher will avoid the duplication of results and the researcher will use the proper tools and procedures in order to collect valid and reliable primary data and will use recommended tools and procedures for making analysis and interpreting them for conclusion and suggestions, the researcher will also abide by old references because with the passage of time the technology and the trends also changed and there is no such value of old references so the researcher will includes the fresh arrivals books and research reports, articles and journals as reference. The researcher will also not steel someone data and will never allow someone to steel his research data. The researcher will also keep the respondent’s details and organizational trades and secrets in personal custody and will never disclose them.

1.7    Limitation of Research

Being student the researcher has some limitations and the researcher will try to overcome these limitations, first of all the researcher has no such experience of  conducting research that’s why the researcher may face some problems and it take more time and cost. But the researcher will be directed and will get proper feedback and guidance from the respected supervisor for achieving research objectives efficiently and effectively. The researcher has limited time to complete the research and has limited financial resources, by keeping all these limitations the researcher has decided to select case study tool to complete his research well in time.  

Literature Review

2.1    Literature Review

Here in this chapter the researcher will describe and discuss the previous researches and their arguments in the favour of CRM activities in achieving organizational objective. The researcher will link the relationship among the quality of services that can be provided to the clients as per their expectations and the role of CRM department in creating happiness among the clients. The researcher will also provide rational review of literature. Customer’s needs and wants for which they pay amount (expectations) and in the perceived quality of services there is a gap and there exist direct relationship of this gap with the sales of organization (Parasuraman et al., 2001). Buttle, (2005) has also supported the above statement by saying that happiness can be created and satisfaction and loyalty can be created by reducing the gap between the offered and perceived services quality. The researcher will also discuss the arguments against the CRM activities and will focus on the role of CRM in minimizing the gap between the clients expectations and offered quality of services and products in order to increase the market share for achieving sales targets and retaining more old clients and capturing new clients by offering new offers as per client’s expectations. According to Buttle, (2005) that CRM can build the strong and long term relationship with the clients to enhance the volume of sales and revenue by just creating happiness and satisfaction among the clients by recognizing the expectations of the clients through the skilled and the well trained CRM representatives. There are so many advantages of CRM department especially in the success of business organizations the CRM department always plays its effective role (Buttle, 2005).  Business organization especially in the hospitality sectors the organizations can achieve their long terms and goals just by generating profitable relationship with the clients and minimizing the difference of their expectations regarding service quality and the commitments fulfilment.

McDonald, (2006) stated and define the CRM in these words that CRM is basically the main and central department of any organization that play its multi functional role for the success of organization in achieving company goals and objectives in short and long term, in details McDonald, (2006) also stated that the CRM also play an important role and its main functionality is to first identify the client’s problems and handle their complaints and offered them the suitable solutions as per their requirements just to provide them happiness and to repeat the sales volume in the future. In the high competition in the market the success of organization is depend on the organizational personal relationships with the entire employee’s skills and their productive level as well as relationships with the outside of the organization which includes clients, raw material suppliers, distributors and supply chain departments and all these relationships depend on the CRM strategies, so organizations must put their focus on the establishment of CRM strategies for success in future as compared to the competitors in the market. Bennett, (2001) has stated that it is only the CRM department that can identify the expectations of stakeholders and can satisfy the stakeholders to achieve success, and this is only department that strong, long term and profitable relationship with stakeholders can be established just by the effective business strategies designed and implemented by the CRM department and these strategies can be monitored and regulated with the help of other departments. Bejou et al., (2001) has been described that organizations can achieve the targets and business expansion is directly related with the client’s retention ratio, he also put focus on the complaints handling and their feedback is more essential and provide a chance to the organizations to identify their needs and can be enhanced their retention ratio and market share. Revenue has direct relationship with the happiness of customers created by the CRM business strategies and volume of sales has also direct relationship with the satisfaction level of customer which is created by the CRM business policies and efforts but one thing is common that first the CRM has to recognize the client’s priorities and needs. The CRM can also create the happiness and satisfaction by just handling client’s complaints and offering them the proper and best solution at the spot and in this way the organizations can establish long term and strong relationship with them, and organizations become successful in retaining them and these people also do the free of cost marketing for the organization and CRM employee attitude and behaviour to other people and become reference group (Anderson, 2008). Bennett, (2001) has been stated that CRM can reduce the gap between the offered and expected quality of products and the services and in this way the happiness can be created and sales repetition can be possible. When there the expectations are not meet by the offered quality of services and items then the happiness level will be very low and when there is no gap then the happiness level will be high and ultimately the company will achieve its goals (Buttle, 2005). Similarly McAlexander et al., (2001) stated that there is direct relationship exist between sales and quality of services and items. Whereas the Bhote, (2000) stated and explained in detail that only the organizational image, brand image and company reputation has positive effect on the satisfaction and loyalty of customer.  Gap model was explained by the Parasuraman et al., (2001) in this model it was clearly described bout the client’s expectations and factors that can play their role in reducing this gap and the influence of this gap on the sales and expansion of organization and the role of CRM in reducing this gap. Gap model also described the different level of gaps in a diagram and the role of CRM in reducing this gap and effects of gap in achieving company goals and objectives effectively. Gummesson, (2002) has been stated that there is a relationship between the profit and promises, commitments and values that companies make during promotional campaign so it is necessary for the companies to take care about their words and promises and fulfil all those commitments which made during campaign. Anderson and Mittal, (2002) they both have stated that client’s loyalty has a direct relationship with the expectations and perceived quality of services and items, when gap of CRM will be low then the loyalty level will be high and if the gap between the expectations and perceived values will be high then the loyalty and satisfaction will be low.

Clients Level of Satisfaction/ Happiness  Clients Level of Loyalty created due to satisfaction  
Organizational Achievements    

 

Identification of Clients Expectations   Reduce the difference between Expectations and Perceived Quality of services and products      
Sales Repetition   Reference Group   Revenue increment    Market Share Increases   More sales volume and Revenue and Profit   Business Expansion  

 

The above diagram shows that clients happiness and satisfaction is directly linked with the expectations and values for which the clients are willing to pay amount to buy the product and to overcome their problems and CRM is responsible for recognizing this kind of expectations and when there will be no gap between these expectations and perceived quality and values then automatically happiness will be come in the clients and this happiness will leads them towards satisfaction and this kind of satisfaction will leads them towards loyalty and when the loyalty is there in the client then the client will repeat the sales and will come again and again for shopping and for hiring services from the same company and secondly the testimonial will become the reference group and they will tell their friends, family members and family friends about their satisfaction and in such a way the market share will be gained by the company and in such situation the company will achieve the targets.  On business performance there is always a relationship exist between the loyalty and satisfaction of clients that always start from the expectations (Buttle, 2005). CRM can play its effective role in creating the loyalty among the clients (Evan and Laskin, 2000). Whereas Looy et al., (2005) stated that due to low value, low quality of services and products always disappointed the clients so the organizations must pay their attention towards the quality rather than to put their focus on the CRM welfare and trainings and skills, the organizations must pay their full attention towards employees welfare because there exist a strong link between staff productive attitude and business performance.

2.2    Literature review Frame of reference

 

2.3    Explanation

The above diagram shows the flow of review of literature as the researcher has discussed in detail about the gap between the expectations and the perceived qualities and values of services and products. The researcher has showed all the flow of work in the above diagram. As a result the researcher came to know that every customer has some needs and wants for which they pay the organizations to solve their problems and to overcome their thirst. The customer’s have their own needs and demand which we called their expectations and to overcome their needs and wants the customers came and pay money to buy the products and hire the services for solving their problems and after buying the products or hiring services and after using them if the results are according to their expectations then the customer will become happy and they will become loyal with the company and next time in the future the customer will come again to buy the products and will let his or her friends, family, colleagues and family friends about the results and they will also start to buy products or hire the services from the organization and in such a way the organization can make progress by enhancing the market share. One thing is also important that some clients have the complaints about some specific products then in such a way the CRM can also handle client’s problem and solve them in such a way the loyalty and market share can be enhanced. The research showed and proved that the difference between the perceived and the expected values, characteristics and quality of products and services also play an important role in creating loyalty and market share and this factor can also play an important role in achieving sales targets and business performance can be improved and CRM can also play its role in minimizing this gap. CRM can also minimize and after identifying the expectations of the clients it will be easy for the organization to offer services and product as per client’s expectations and in this way resources and time can be saved.

Research Methodology

3.1    Methodology

In this chapter number three the researcher will also explain about the research method that which tools and methods will be selected by the researcher to complete and conduct this research according to the main aims and objectives of this research to achieve the research objectives. According to the Engel et al., (2001) that to actually structure the research to collect the secondary and primary data in a good way, to get good results according to the aims and objectives of this research the researcher use research method, and in this way the results also recorded by the researcher. Here the researcher has selected the Blakemore hotel as case study tool because the CRM department is already in operation in this hotel and hotel has all the infra structure and the administration has responded me positively and allowed the researcher to conduct the research and the administration will allocate the necessary resources. Case study tool is the best research method to conduct the research to get most reliable primary data on which the researcher can make recommendations (Kitzinger, 2000).  The researcher will use quantitative and qualitative both research techniques to conduct the research.

3.2    Population

In this research the researcher will select the CRM staff and the customers and the researcher will select the key post employees and potential clients and will distribute questionnaires among them for gathering primary data the researcher will analyse the data and will reach to the conclusion for making recommendations and suggestions.

3.3    Sampling Size

According to the Sugandhi, (2004) stated that the researcher can choose research method according to the nature and the problem of the research and in the sampling method the researcher has choice among them, which includes random, stratified, quota, snowball, judgement and systematic sampling size. Here in this research the researcher has decided to select the customers randomly and the range of their will be 19 years old to 55 years old and both gender will be included in the sampling size and total number of sample will be about 80.

3.4    Primary data source

Morgan, (2000) stated that researcher must distribute the questionnaires among the samples and must select the customers and staff members in order to disclose the actual nature of research problem and to find out the actual solution. Focus group is also the basic source of primary data but in medical research the focus group is the most strong and effective way to collect primary data (Powell & Single, 2000). The researcher will also conduct the interview to collect the primary data.

3.4.1  Interview

Open and close ended questions will be included in the interview by the researcher and the researcher will design the questionnaires in such a way to disclose the actual nature of the problem and the most reliable and valid data will be gathered in this way, the researcher will conduct the interview of managers, CRM manager, employees and to the potential customers, and the researcher will also distribute the questionnaires among the clients and will just ask some questions from the staff members and will get their responses and opinion to make it sure the effectiveness of CRM in reducing the gap and in order to achieve the organizational objectives in well manners. Interview is basically two way communication and the respondents and the interviewer they both can communicate at the same time and without bias the respondents gave his or her opinion and suggestions to the researcher (Saunders et al., 2010).

3.5    Secondary data source

Yin, (2001) has been stated that there are different source of secondary data gathering and a researcher can select more than one source to collect secondary data which includes website, electronic books, journals, electronics journals, articles, annual reports and research papers. The researcher will use college library, hotel website, different books, electronics books, journals and articles and annual reports on the CRM subject and will gather the secondary data according to the aims and objectives of this research.

3.6    Case Study Tool

Due to limitation of the research the one important limitation is the limited time and the researcher has no research conducting experience so the best way to overcome this limitation is that the researchers select an organization as case study tool which is best way to conduct the research in effective way and results of case study tool are also valid and reliable. Case study tool is the best and reliable source to conduct the research for unexperienced researcher (Goddard & Melville, 2006).

3.7    Scope of Research

Now in every market all the competitors have the same technology and procedures and all are trying to make more money by utilizing minimum amount of money or investment. Especially in the sector of hospitality the client’s priorities and the expectations plays important role in retaining them and the organization that has CRM in operation and has reduced the difference between the needs, wants and expectations of the clients and the perceived quality of services with the expected services then the company can enhance the market share figure.

Data Presentation and Analysis

4.1    Data Presentations

The researcher will present the data in the form of tables and pie charts will be used by the researcher to make analysis, the researcher will use the sheets with table diagrams on the sheets and will also use the spread sheet to record the results and data. The researcher will use the arrangements of rows and columns just to make it sure that data will not be duplicated and in this way the validity and the reliability will remain reliable and valid.

4.2    Data Analysis Tools

The researcher first of all record the results after conducting the research and after completing the interviews and the responses of the respondents will be recorded on computer in electronic sheets and on paper form tables and after that by using necessary skills the researcher will use pie and bar charts to show the different relationships among the different variables and factors and to show the ratios and dependability of other factors on each other.

4.3    Expected Findings

The researcher has expected to find out the results in the form of positive role of CRM in reducing and minimizing the gap between the offered and expected quality and value of both services and products just to enhance the market share and obtaining financial goals and objectives which is the main objective of this research. the researcher has expect to know the factors those can participate in enhancing and reducing the gap and researcher will also find out those factors those can play their role in identifying client’s expectations and their priorities from different angles. In this section the researcher will also describe the role of CRM in reducing the gap.

4.4    Data Reliability and Validity

Constancy and steadiness always referred to as data reliability. In this section the researcher will also discuss about the tools and skills which will be used by the researcher to conduct the research and the researcher can rely on the data results.

Project Planning

5.1    Project Planning

In this chapter the researcher will discuss the all steps which will be involved in the research process.

5.2    Budget and Time Schedule

5.2.1  Financial Resources

The following table shows the description and relevant cost for each activity.

S. #DescriptionTotal Cost (£)
1Travel Expenses300
2Entertainment650
3Software, documentations950
4Miscellaneous expenses1100

5.2.2  Time Schedule

History and IssueX         
Research ObjectivesXX        
Literature ReviewXXX       
Conducting Primary Data  XXX     
Time Schedule in Weeks12345678910
Data Presentation    X     
Analysis     X    
Conclusion     XX   
Recommendations      XX  
Contingency Plan (If Required)        XX

5.3    Contingency Plan

As per supervisor instructions and to remove errors the researcher will use the last two weeks to make amendments in the project.

Conclusion

6.1    Limitations and conclusions

The researcher will discuss the limitations of this research which includes time and financial resources, as the researcher is the student so it is not possible for him to conduct the research on a large scale to overcome this limitation the researcher has selected case study tool, secondly the researcher has no research conducting techniques so the researcher has selected the case study tool and being student all the cost will be beared by the researcher and some resources will be allocated by the selected hotel. The researcher will join the theories and the results obtained after making analysis on the results and in the light of both literature review and data obtained by the research the researcher will make conclusion that which factors can play their role in reducing the gap and the researcher will make conclusion according to the objectives of the research.

6.2    Positive Recommendations

In this section the researcher will also make some suggestions and recommendations after pointing out the weak areas and problems in the system and after taking feedback the researcher will make recommendations and suggestions for the betterment of the selected hotel to achieve its organizational objectives in well manners. 

6.3    Further Research Areas

In this section the researcher will also find out those areas that will be disclosed by the researcher in the result of respondent’s opinions and responses. The researcher will also point out those areas that can be taken under research by the organizations to achieve organisational objective more in efficient form.

References and Bibliography

a.   Books and Journals

Anderson, E.W. and Mittal, V. (2002) ‘Strengthening the satisfaction-profit chain’ Journal of

Service Research, 11, (15) pp. 20-213

Anderson, E.W. (2008) ‘Cross Strategy variation in customer satisfaction and retention’

Marketing Letters, 11, (15) pp.32-245

Bejou, D., Ennuw, C. and Palmer, A. (2001) ‘Trust, ethics and relationship satisfaction’

Journalof Bank Marketing, 9, (11) pp.34-247

Bennett, R. (2001) ‘Relationship formation and governance in consumer markets: Transactional

analysis versus the behaviourist approach’ Journal of Marketing Management, 6, (21) pp. 113-

234.

Bhote, K.R (2000) Beyond Customer Satisfaction to Customer Loyalty. 3rd ed. New York: AMA

Management Briefing

Buttle, F. (2005) Customer Relationship Management: concepts and tools, 1st ed. Oxford:

Elsevier Butterworth-Heinemann

Chen, I.J. and Popovich, K. (2005) ‘Understanding customer relationship management (CRM):

People, process and technology’ Business Process Management Journal, 11, (12) pp. 234-345

Engel, J.F., Blackwell, R.D. & Miniard, P.W. (2001) Consumer Behaviour, 2nd ed. London: Dryden Press

Evans, J. R. and Laskin, R. L. (2000) ‘The relationship marketing process: A conceptualization

and application’ Industrial Marketing Management, 14, (11) pp.123-321

Goddard, W. and Melville, S. (2006) Research Methodology: An Introduction 2nd ed. Lansdowne: Juta and Company Ltd

Gummesson, E. (2002) ‘Broadening and Specifying Relationship Marketing’ Asia-Australia

Marketing Journal, 11, (17) pp. 12-198

Kitzinger, J. (2000) ‘Introducing focus groups’ British Medical Journal, 14, (15) pp. 123-213

Looy, B.V., Gemmel, P. & Dierdonck, A. (2005) Services Management: An integrated

Approach, 2nd ed. Essex: Pearson Education Limited

McDonald, L. (2006) Customer Relationship Management – An Overview [online]Available at

<http://www.brillianceweb.com/betterwebdesign/tips_48.aspx&gt; [Accessed 14 December 2012]

Morgan, D.L. (2000) Focus groups as qualitative research, 3rd ed. London: Sage Publications

Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (2001) ‘A conceptual model of service

quality and its implications for future research’ Journal of Marketing, 35, (12) pp.112-198

Powell R.A. and Single H.M. (2000) ‘Focus groups’ International Journal of Quality in Health Care, 11, (12) pp. 212-344

Saunders, M., Lewis, P. and Thornhill, A. (2010) Research Methods for Business Students 4th ed. Essex: Pearson Education

Sugandhi, R.K. (2004) Customer Relationship Management. 3rd ed. New Delhi: New age

International Publishers

Yin, R. (2000) Case study research: Design and methods.2nd ed. CA: Sage Publishing

b.   Websites

www.blakemore.org.uk [Accessed on 3rd December 2012]

c.   Bibliography

Denzin, N.K. and Lincoln, Y.S. (1998) Collecting and Interpreting Qualitative Materials London: Sage Publications

Ehrenberg, A.S.C. (2000) ‘Repeat Buying: facts, theory and applications’ Journal of Empirical Generalizations in Marketing Science, 5, (2) pp.299-600

Etzel, M.J., Walker, B.J. & Stanton, W.J. (1997) Marketing International Edition. 2nd ed. USA: The McGraw-Hill Companies Inc.

Gronroos, C. (1984) ‘A service quality model and its marketing implications’ European Journal

of Marketing, 18, (1) pp.30-50

Gronroos, C. (1994) ‘From Marketing Mix to Relationship Marketing: Towards a Paradigm

Shift in Marketing’ Management Decision, 32, (2) pp.2-30

Morgan, R.M. and Shelby D. H. (1994) ‘The Commitment-Trust Theory of Relationship

Marketing’ Journal of Marketing, 58, (1) pp.22-40

Implications for women in leadership positions of Inequalities regimes in organizations

1.      Introduction

In order to understand the implications for women at leadership position of Inequalities regimes in organizations we need to understand the inequalities first, basically it is the difference between employees in control and power over the resources, decisions taken by management at work placement, promotion, wages, reward, equal opportunities to all employees, job security and respect in achieving organizational goals (Aker, 2006). In organizations inequalities are different, equalities can be found in very few organizations and in job security and employee’s benefits equality may occur in some organizations. There is always discriminations on the bases of race, colour, sex, region, religion (Acker, 2000).

There are two basically implications for women in leadership positions of Inequalities regimes in organizations

1.         Individualized wage settings (that produce the inequality)

2.         Wage setting system (It is necessary to investigate the wage setting system)

Acker, (2006) has been stated that almost all inequality regimes can be found in all organizations including processes, actions and inter related practices. He also stated that different inequalities can be presented in different organizations, he also given preference to the class and race are the most two prominent factors beside the gender she also highlighted the other factors like sexual preferences at the work placement beyond the class, race and gender. It is assumed that heterosexuality is the organizational practices and processes can disturb the organizational work (Glass, 2004). Women are scare in leadership positions because of inequality regimes including race, gender and class, in most of the organizations white men and women from dominant racial group are at top positions (Davis, 1981). The relations at supervisory level can be affected because of race and gender leadership behaviour with subordinator always has an impact of inequality. It has been observed that the white man at top positions do not focus and listen the women at leadership positions due to (colour difference) race and class difference and ignore them in meetings and devalue women excluding white women at leadership position. In some organization women employees are supposed to sexually attract customers. Basically Acker has conducted the research with the aims to understand the power and work relations in an organization (Aker, 2006).

Ackers has defined the inequality as disparities among the participants in the following areas

Opportunities

Respect

Wages

Job security and rewards

Resources allocations

Assigning tasks

Power/ authority and decision making sharing

Inequality in the politics, culture, society and history has strong link inequalities regimes in organizations (Collins, 1995).

2.      Analysis

The main base of inequality in an organization is the Class rather than the sex, religion, wage and race. One more basis of inequalities is the difference between accessing and controlling resources in an organization in achieving organizational objectives. But the class is main important because the CEO (national) in an organization always lead and command the rest of the employees from different countries (Brown, et al., 2003).

2.1      Gender and Race

Lower level jobs are always done by women and men always manage them, most women are doing job such as clerks, customer care services, personal assistance and secretary, although in some organizations women are doing job at managerial level (Charles & David, 2004).

The disturbance in the organization is always started from women, women always started to disturb men at work. Race is another base of inequality in the organization. Race means the region, particular group, particular belief and culture (Burawoy, 1979).

2.2      Wage and Power difference

With the height of hierarchy salary varies in organization. Top most person (CEO) always earned more than the staff members, whereas in the organizations white men always earn more as compared to other nationals even if he or she is doing job in bottom level. Professional associations and labour unions can play their important role in minimizing this variation (Ely & Debra, 2000). Same as in salary variation there is also variation in the powers and that is connected with the height of hierarchy but professional associations and labour unions can play their important role in minimizing this variation. Race and sex are always very important in giving power and authority in an organization all the managers do not have same powers and authorities, so this is the class difference (Acker, 1991). Even then if the men and women are the manager in an organization there will be a wage difference, power difference and authority difference. First of all the main reason of inequality is the nature of work at an organization (Enarson, 1984). As the managerial work is carried out by the white people and they do not have the children responsibilities and other work at home, they just need to go office given directions to the subordinators and get heavy salaries, whereas women worker at low level has no flexibility they are responsible to look after their home and family members. There is an unjustified wag gap exist among the gender type, at the same level women are earning low wages as compared to men wages (Glass, 2004). Similarly skilled men are earning high wags as compared to skilled women at the same level in an organization. So this gender difference wage gap also creating inequality at work placement. Similarly it has been observed that women workers at managerial level do not credited whereas the men managers always credited by their performance. Some scholars have stated that from some organizations the middle management level has removed to create equality among men and women at job particularly in wage area (Brown, et al., 2003).

2.3      Supervisory Practices

Basically the first implication of for women at leadership position in inequality regime organization is the supervisory practices, because the relations between supervisor and subordinator can be influenced because of race and gender. Leader’s attitude with its subordinators may be different as compared to job nature requirement because of race and gender and can lead to inequality (Charles & David, 2004). Women working at low level and earn low wages as compared to top level managerial and they need to do more work as compared to their managers so this difference of wages and work load create inequality among men and women (Acker, 1989). Job descriptions always associated with the task and nature of job and the wages rates are as according to the responsibilities. Women jobs are related with the lower wages and most of the sexy women doing job in organizations as secretary level or at clerical level, whereas at the same position men wages are high as compared to women as the same level.

According to Ackers (2006) that at the work placement when men and women interact with each other, they involve in class, gender and race inequalities and they made different assumptions about their wages. Inequalities created by the interaction practices are complex to document. Employers believed that women workers must be pretty and sexually attractive to attract the customers to increase the sales volume (Ely & Debra, 2000). Inequalities can be controlled by maintaining the authority and power among managers, by reducing the gap between wage differences (Brown, et al., 2003). Management should start reward system to control the racial and gender difference and punishment system should be introduced for non compliance with rules and regulation (Acker, 1991). Bureaucratic system should be finished and power must be maintained among all managers as per their task nature to access and control the resources in achieving organizational objectives.

3.      Conclusion

These are class practices and the top level managers manage and control the workers by dividing work and allocating resources and set the wages as per the skills and competencies and job nature. Some scholars stated that race and gender have impact in wage setting and supervisory practices and create inequality at work placement and lead class to the unfair wage settings (Collinson & Jeff, 1996). The organizations must consider the fair wage process in order to reduce the inequality. The difference among the wage rate between men and women has been increased that produced the inequalities in organizations. To reduce the inequality the managers must reward the high performance employees with more wages for more productivity (Aker, 2006). The bases and practices those produces the inequalities in organizations have been discussed above in details and the implications for women at leadership level in inequality regime organizations have been discussed. The organizations need to review their supervisory practices and wage gap existed among men and women worker in the organizations to reduce the inequalities from organizations for more productivity. Equality can be produced by reducing the inequalities in wages, retirement benefits and in medical allowance. Whereas in order to reduce the labour cost the organizations need to do downsizing and using outsourcing for more productivity and efficiency, in this way inequalities can be reduced. Organizations must compliance with the equal employment opportunity laws to create equality in the work placement.

4.      References and bibliography

a.        Books and Journals

Acker, J. (1989) Doing comparable worth: Gender, class and pay equity. Philadelphia: Temple University Press

Acker, J. (1990) Hierarchies, jobs, and bodies: A theory of gendered organizations, Gender & Society, 11(12), pp: 52- 123

Acker, J. (1991) Thinking about wages: The gendered wage gap in Swedish banks, Gender & Society, 12(13), pp: 382-390

Acker, J. (2000) Revisiting class: Thinking from gender, race and organizations. Social Politics, 12(6), pp: 23-56

Adkins, L. (1995) Gendered work, 1st ed. London: Open University Press

Barker, J. R. (1993) Tightening the iron cage: Concertive control in self-managing teams,

Administrative Science Quarterly, 23(25), pp: 72-98

Brown, M. K., Carnoy, M., Currie, E., Duster, T., Oppenheimer, D. B., Shultz, M. M. & Wellman, D. (2003) White-washing race: The myth of a color-blind society, 1st ed.Berkeley: University of California Press

Burawoy, M. (1979) Manufacturing consent. 1st ed. Chicago: University of Chicago Press

Charles, M. & David, B. G. (2004) Occupational ghettos: The worldwide segregation of women and men. 1st ed. CA: Stanford University Press

Cockburn, C. (1991) In the way of women: Men’s resistance to sex equality in organizations, 1st ed. NY: ILR Press

Collins, P. H. (1995) Comment on West and Fenstermaker. Gender & Society, 11(9), pp: 73-84

Collinson, D. L. & Jeff, H. (1996) Men as managers, managers as men, 1st ed. London: Sage Publishers

Davis, A. Y. (1981) Women, race & class, 1st ed. New York: Vintage Publishers

Ely, R. J. & Debra, E. M. (2000) Advancing gender equity in organizations: The challenge and importance of maintaining a gender narrative. Organization, 12(13), pp: 323-334

Enarson, E. (1984) Woods-working women: Sexual integration in the U.S. Forest Service. 1st ed. AL: University of Alabama Press

Glass, J. (2004) Blessing or curse? Work-family policies and mother’s wage growth over time, Work and Occupations, 14(21), pp: 34-76

B.        Websites

Aker, J. (2006) Inequality Regimes: Gender, Class, and Race in Organizations. Gender &amp; Society. [online] 5(20). pp: 23-46. Available from <http://www.sagepub.com/oswcondensed/study/articles/05/Acker.pdf&gt; [Accessed on 2nd November 2014]

C.        Bibliography

Featherstone, L. (2004) Selling women short: The landmark battle for workers’ rights at Wal-Mart. New York: Basic Books

Fenstermaker, S. & Candace, W. (2002) Doing gender, doing difference: Inequality, power and institutional change, 1st ed.  New York: Routledge Publishers

plan for the collection of primary and secondary data for a given business

In this assignment discuss about type of data, a methodology of gathering data from various sources, arranging them according to a system to get useful information which leads to take better decisions. Analysing data and information is very important to take efficient and effective business decisions. This will help the management to understand the industry status, can be a value addition tool and introduce new processors, rules and regulation to increase quality, quantity and productivity. Organisations use technology to arrange data and to get information according to their requirement (Yu & Chen, 2011). According to the scenario is about Halford group a product, service and expertise provider of motor, bicycle, and great getaway that means a transportation facilitator according to customers’ requirement. Halford has more than 402 superstores, 34 compact stores, 31 metro compact stores and 261 auto centres across in the United Kingdom and in the Republic of Ireland. They have introduced a Bike hut as a showcase to promote their bike brands. Where they want to increase their customer satisfaction level and need to clarify the feedback of the market about their products (Asoff, 2009).

Create a plan for the collection of primary and secondary data for a given business

Data are statistics, details, verses, photographs, charts, images and etc. There are two types of data, such as quantitative data and qualitative data (Austin, et al., 2007). Quantitative data means where data gathered from surveys, questionnaires, trials and etc. these data are much in number format. Qualitative data’s are that has recorded in detail. It is very important to collect both types of data to get a great output. Primary data can be collected by interviews, research, or by observations. But for the given scenario it is important to gather customer feedback therefore interviews are important. The Even Halfords Group can use their site, e-commerce link as a resource to collect data by adding a short questionnaire. Secondary data are records which exist currently. Plan to collect primary data and secondary data for the given situation are, quick questionnaires, informal interviews, telephone surveys, observing the customers, analyse the previous company details, use the web site to get feedback from customers and etc (Barker, 2010).

Source: http://analyticalconsulting.info/services/

1.2   Present the survey methodology and sampling frame used

Survey methodology is a tool that uses to gather data from a specific segment. In this scenario it is important to gather information mainly from cyclists about their requirements, their liking and dis-likings value additions, knowledge about the product, ideas to improve the invention and etc (Bryman & Bell, 2008). The survey question list can be made out of closed questions and open questions. Surveys can be conducted mainly in two ways that is interviews and questionnaires. This is also can be done by qualitative assessment or as a quantitative design methodology. On the other hand there are two sampling types, as probability and non probability sampling. Probability and non probability sampling has different techniques of sampling (Curran, et al., 2011). For example probability sampling has simple random sampling method, cluster sampling, stratified sampling method and systematic sampling method. Where non probability sampling has snowball sample method, quota sampling and judgmental sample method. In this case it is appropriate to use questionnaires containing both open ended and close ended questions. And non probability sampling technique can be use as the sampling frame (Craig, 2010).

Source: Author

1.3   Design a questionnaire for a given business problem

Dear Valued Customer,

We Halfords group as the leader in cycles retailing market always looking forward to give more that our client expects. We have introduced “Bikehut Stores” where you can easily reach and access premium bike brands. To enhance more customer oriented service we would like to ask few questions.

Many thanks in advance for your precious time taken to fill the below questionnaire

Looking forward to provide better service in future

Best regards,

——————–

Manager,

Halfords Group

Name: – …………………………

Address: -………………………….

Age:-…………………………..

Gender: Male £ Female £

Are you happy to deal with Halfords: Yes £ No £

If your answer is no please specify: – ………………………………………………………

Are you aware of the new store chain called “Bikehut”: Yes £ No £

Do you think the price of this product is reasonable: Yes £ No £

If your answer is no, please state why? …………………………………….

Do you recommend our products to another person: Yes £ No £

Your ideas are very important to us to provide an extravagantly personalised service and products to you. Please comment:

……………………………………………………………………………………………

Please use the envelope attached to send your valued ideas.

2.1   Relate information for decision making by summarising data using representative values

Total Response is = 225

Product use age according to the gender

Male – 150 Female – 75

Happy to deal with Halfords

Yes: (217)

No: (8)

Awareness of the “Bikehut” stores

Yes: (185)

No: (40)

Overall quality of the product

1 (4)

2 (23)

3 (68)

4 (120)

5 (10)

Overall satisfaction of the product

1 (2)

2 (32)

3 (89)

4 (79)

5 (23)

Service in the Bikehut

1 (0)

2 (93)

3 (102)

4 (23)

5 (7)

After sales services

1 (3)

2 (42)

3 (88)

4 (80)

5 (12)

Compared to other suppliers our product and services

1 (0)

2 (17)

3 (107)

4 (75)

5 (26)

Price is reasonable

Yes (157)

No (68)

Product recommendations

Yes (210)

No (15)

(1-Unsatisfied, 2-Good, 3-Very Good, 4-Satisfied, 5-Exceed expectation)

2.2   Analyse the results draw valid conclusions in a business context.

Total Response is = 225

Product use age according to the gender

Male 150, Female 75

Male 66.67%

Female 33.33%

Happy to deal with Halfords

Yes (217) 96.44%

No (8) 3.56%

Awareness of the “Bikehut” stores

Yes (185) 82.22%

No (40) 17.78%

Overall quality of the product

1 (4) 1.78%

2 (23) 10.22%

3 (68) 30.22%

4 (120) 53.33%

5 (10) 4.44%

Overall satisfaction of the product

1 (2) 0.89%

2 (32) 14.22%

3 (89) 39.56%

4 (79) 35.11%

5 (23) 10.22%

Service in the Bikehut

1 (0) 0%

2 (93) 41.33%

3 (102) 45.33%

4 (23) 10.22%

5 (7) 3.11%

After sales services

1 (3) 1.33%

2 (42) 18.67%

3 (88) 39.11%

4 (80) 35.56%

5 (12) 5.33%

Compared to other suppliers our product and services

1(0) 0%

2 (17) 7.56%

3 (107) 47.56%

4 (75) 33.33%

5 (26) 11.56%

Price is reasonable

Yes (157) 69.78%

No (68) 30.22%

Product recommendations

Yes (210) 93.33%

No (15) 6.67%

The customer base is at 66.67% of males and 33.33% female. The company should look forward to encourage more females to use the product. When advertising focus to touch famine market too.

96.44% customers are happy to deal with the establishment, 82.22% customer base is aware of the new store chain. 98% of customers are satisfied about the product quality, where 99% are overall satisfied about the product. 100% customers are happy about the service provided at “Bikehut”. 97% of customers are delighted about after sales services. 70% of clients say that the product price is reasonable. 93.33% of customers will help to bring business by recommending the product to others. This is a free advertising for the company. When considering the overall information the company is performing well. Customers are satisfied with the establishment and as well as the product and the service (Daniel & Ward, 2009).

2.3   Analyse data using measures of dispersion into inform a given business scenario.

Measures of dispersion means when scattering data how the statistics are comparable individually (Dubois & Gadde, 2007), there are three ways to measure dispersion, namely as the range, the semi interquartile range (SIR) and variance / standard deviation. In range dispersion uses the lowest value and the highest value in the given data set and the difference is taken as ranges (Thorpe & Lowe, 2006).

1

2

3

4

5

Overall quality of the product

4          1.78%

23        10.22%

68        30.22%

120      53.33%

10        4.44%

Overall satisfaction of the product

2          0.89%

32        14.22%

89        39.56%

79        35.11%

23        10.22%

Service in the Bikehut

0          0.00%

93        41.33%

102      45.33%

23        10.22%

7          3.11%

After sales services

3          1.33%

42        18.67%

88        39.11%

80        35.56%

12        5.33%

Compared to other suppliers our product and services

0          0.00%

17        7.56%

107      47.56%

75        33.33%

26        11.56%

Question

Highest Value

Lowest Value

The Range

Overall quality of the product

Highest Value 120

Lowest Value  4         

The Range       116

Overall satisfaction of the product

Highest Value 89

Lowest Value  2

The Range       87

Service in the Bikehut

Highest Value 102

Lowest Value  0

The Range       102

After sales services

Highest Value 88

Lowest Value  3

The Range       85

Compared to other suppliers our product and services

Highest Value 107

Lowest Value  0

The Range       107

Semi interquartile range (SIR) = (Q3-Q1) /2

Overall quality of the product

Q3                   68

Q1                   4

Q3-Q1             64

(Q3-Q1)/2       32

Overall satisfaction of the product

Q3                   89

Q1                   2

Q3-Q1             87

(Q3-Q1)/2       43.5

Service in the Bikehut

Q3                   102

Q1                   0

Q3-Q1             102

(Q3-Q1)/2       51

After sales services

Q3                   88

Q1                   3

Q3-Q1             85

(Q3-Q1)/2       42.5

Compared to other suppliers our product and services

Q3                   107

Q1                   0

Q3-Q1             107

(Q3-Q1)/2       53.5

Standard Deviation

Overall quality of the product

4

23

68

120

10

Std. Div:         49

Overall satisfaction of the product

2

32

89

79

23

Std. Div:         37

Service in the Bikehut

0

93

102

23

7

Std. Div:         49

After sales services

3

42

88

80

12

Std. Div:         39

Compared to other suppliers our product and services

0

17

107

75

26

Std. Div:         44

2.4   Explain how quartiles, percentiles and the correlation coefficient are used to draw useful conclusions in a business context.

Quartile use to separate data in two quarters. Percentiles are where the observed data are similar or larger than the percentile figure. The correlation coefficient is the tool that uses to interpret the linear relationship between two variables (Fensel & Bussler, 2011).

1

2

3

4

5

Overall quality of the product

4

23

68

120

10

Overall satisfaction of the product

2

32

89

79

23

Service in the Bikehut

0

93

102

23

7

After sales services

3

42

88

80

12

Compared to other suppliers our product and services

0

17

107

75

26

QUARTILE

0

1

2

3

4

4

10

23

68

120

2

23

32

79

89

0

7

23

93

102

3

12

42

80

88

0

17

26

75

107

Correlation coefficient

Overall quality of the product

4

23

68

120

10

Overall satisfaction of the product

2

32

89

79

23

87%

Service in the Bikehut

0

93

102

23

7

After sales services

3

42

88

80

12

62%

Overall quality of the product

4

23

68

120

10

Compared to other suppliers our product and services

0

17

107

75

26

78%

3.1   Produce graphs using spread-sheets and draw valid conclusions based on the information derived

Main customer sector can be identified from the above chart.

This graph will indicate the satisfaction level of customers.

This graph shows the correlations of the overall product and quality satisfaction.

3.2   Create trend lines in spread-sheet graphs to assist in forecasting for specified business information

The customers are highly satisfied about the overall quality of the product but it is important to improve product satisfaction and after sales services (Kuhn, 2004).

Quartile forecast.

Almost every purchaser likes to deal with the company.

More than 50% of the clients agree that the product price is reasonable. Therefore no need to do price change

Has to advertise more about “Bikehut” for customer awareness

3.4   Produce a formal business report

Subject: The customer satisfaction and “Bikehut” awareness survey

To: The Management

From: The Market Research Team

Date: 12th March 2014

This is about the awareness and a satisfaction survey about our products and services. In addition to that verify the new outlet chain status. As per the management request our team conducted a questionnaire survey and interview to collect the required data (Rapoza, 2011). We have got 225 feedback forms from customers.

According to the collected data after sampling and analysing them, we recognise that the males are using our product greater than the females. Overall the customers are happy to deal with our establishment. 185 customers out of 225 were aware about the “Bikehut” store. 70% of clients are pleased with our product prices. As per the information our products quality and services satisfies customers where the company has built a very good reputation. Therefore we have a 93% of word of mouth promotion via the satisfied customers. Conferring as per the data gathered the organisation performs incredibly well than the industry competitors.

We recommend that the after sales service should improve.

Most of the feedback has rated very well, but the organisational goal should be to give an extravagantly personalised service to get more rates on exceeding expectation.

The customer service manager is responsible to introduce customer oriented training (Curran, et al., 2011).

It is the human resource manager’s duty to implement appreciation programme and reward the employees as a motivation factor (Asoff, 2009). Production has to innovated appropriate cycle designs for females. Advertising team should attract feminine market and promote “Bikehut” stores as well as Halfords products

4.1   Use appropriate information processing tools

Information processing tools are the processors and tangible and non tangible equipment that use to arrange data, such as database, servers, computers, transmitters, ATMs’ as well as Software, methodologies, internet, networks, websites and etc (Austin, et al., 2007). By using the correct methods and equipment the organisation can be benefited. The output will be accurate to take effective and efficient decisions. In an organisation, budgets, project plans, cash flow statements, investment appraisals are used as information tools (Yu & Chen, 2011).

Source: Author

Prepare a project plan for an activity and determine the critical path

4.3   Use financial tools for decision making.

To evaluate a project in the main financial tool which use as a decision making technique is calculated net present value (NPV) and internal rate of return (IRR). Organisation invests in projects expecting an upright return in long time span. By using NPV the management can decide the surplus or the shortage of the cash flow (Bryman & Bell, 2008). IRR calculation mainly considers about the discount rate only. The discount rate may change over the time period. Therefore the IRR rate will also change accordingly. Using the internal rate of return is not rational to evaluate a project (Barker, 2010).

Discount Rate

12%

Period              Sum

0                      (50,000.00)

1                      12,000.00

2                      15,000.00

3                      15,000.00

4                      18,000.00

5                      10,000.00

NPV                462.49

IRR                 12.371%

4.4   Explain the results of NPV and IRR

Since this has a positive NPV, it is worth to invest in this project. It will recover the initial investment and can earn a better return. Net present value is the difference that occurs when evaluating the project market value and its cost. In addition to the NPV the internal rate of return (IRR) is 12.37%. When the internal rate of return is higher than the discount percentage then it will indicate a continuation of the project. Though investors calculate net present value and internal rate of return, they mainly consider on the net present value (Craig, 2010).

5.     References and Bibliography

Asoff, M. (2009) Rich Web Applications -The Business Benefits of Web-enabled Application Development, 3rd ed. London: McGraw Hills

Austin, D., Barbir, A. & Garg, S. (2007) “Web services architecture requirements.” [Accessed on 18 May 2014] <available at: http://www.w3.org/TR/2002/WD-wsa-reqs-20020429&gt;

Barker, A. (2010) Paradigms, 7th ed. New York: Harper Collins

Bryman, A. & Bell, E. (2008) Business Research Methods, 7th ed. Oxford: University Press

Craig, M. (2010) “Changing paradigms: managed learning environments and Web 2.0.” Campus-Wide Information Systems, 11(32), pp: 17-77

Curran, K., Murray, M. & Christian, M. (2011) “Taking the information to the public through Library 2.0” Library Hi Tech, 17(33), pp: 151-267

Daniel, E. & Ward, M. (2009) “Exploring the role of third parties in inter-organizational Web service adoption” The Journal of Enterprise Information Management, 13(45), pp: 10-67

Dubois, A. & Gadde, L. (2007) “Systematic combining: an adductive approach to case research,” Journal of Business Research, 12(35), pp: 113-178

Fensel, D. & Bussler, C. (2011) “The Web service modelling framework.” Electronic Commerce Research and Applications, 15(26), pp: 113-187

Kuhn, T. S. (2004) The Structure of Scientific Revolutions, 6th ed. Chicago: Chicago University Press

Rapoza, J. (2011) “IT Planners: 5 Steps to Next Generation Web Applications.” eWeek, 27(45), pp: 145-178

Thorpe, R. & Lowe, A. (2006) Management Research: an Introduction, 9th ed. London: Sage Publications

Yu, S. & Chen, R. (2011) “Web Services: XML-based system integrated techniques.” The Electronic Library, 27(66), pp: 198-278