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Available online at www.ganpatuniversity.ac.in University Journal of Research ISSN (Online) 0000–0000, ISSN (Print) 0000–0000 70 Impact of Customer Relationship Management on Customer Loyalty and Customer Retention with reference to Automobile Sector Dr. Garima Malik Assistant .Professor, Amity Buisness School, Amity Univerity, Noida-201301, India Abstract Customer Relationship management concept and its impact on customer loyalty is gaining more and more attention in present business world. Companies are focusing on retaining their loyal customers rather than gaining new. One such strategic focus is customer loyalty, which should be viewed as a “must” for automakers hoping to compete. Unlike other consumer products with more frequent replacement cycles, auto buyers often don’t return to market for three or four years or even longer. Some empirical evidence suggest that it costs significantly less to retain an existing customer than it does to acquire a new one, making loyalty especially critical in times when corporate marketing budgets are scrutinized. The main aim of this paper to evaluate the impact of CRM benefits on customers’ loyalty and retention for the benefits of enterprise and customers itself. The research was conducted though survey method and data was collected from vehicles owners. The results revealed the significant factors that lead to the customer loyalty for automobile was trust associated with on time service delivery, Promptness in handling repair work, friendliness helpfulness, arranging replacements and fulfill its obligation to customers. Keywords: Customer loyalty; customers’ retention; automobile sector; customer preference; customer satisfaction. 1. Indian Automobile Industry As per India Brand Equity Foundation (IBEF) India represents one of the world’s largest car markets (Easy availability of finance and rising income levels are encouraging the middle class population to choose from the vast range of passenger vehicles. The Indian auto industry has been

Transcript of 6.pdf

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Available online at www.ganpatuniversity.ac.in

University Journal of Research

ISSN (Online) 0000–0000, ISSN (Print) 0000–0000

70

Impact of Customer Relationship Management on Customer Loyalty

and Customer Retention with reference to Automobile Sector Dr. Garima Malik

Assistant .Professor, Amity Buisness School, Amity Univerity, Noida-201301, India

Abstract

Customer Relationship management concept and its impact on customer loyalty is gaining more

and more attention in present business world. Companies are focusing on retaining their loyal

customers rather than gaining new. One such strategic focus is customer loyalty, which should be

viewed as a “must” for automakers hoping to compete. Unlike other consumer products with more

frequent replacement cycles, auto buyers often don’t return to market for three or four years or

even longer. Some empirical evidence suggest that it costs significantly less to retain an existing

customer than it does to acquire a new one, making loyalty especially critical in times when

corporate marketing budgets are scrutinized. The main aim of this paper to evaluate the impact of

CRM benefits on customers’ loyalty and retention for the benefits of enterprise and customers

itself. The research was conducted though survey method and data was collected from vehicles

owners. The results revealed the significant factors that lead to the customer loyalty for automobile

was trust associated with on time service delivery, Promptness in handling repair work,

friendliness helpfulness, arranging replacements and fulfill its obligation to customers.

Keywords: Customer loyalty; customers’ retention; automobile sector; customer preference;

customer satisfaction.

1. Indian Automobile Industry

As per India Brand Equity Foundation (IBEF) India represents one of the world’s largest car

markets (Easy availability of finance and rising income levels are encouraging the middle class

population to choose from the vast range of passenger vehicles. The Indian auto industry has been

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recording tremendous growth over the years and has emerged as a major contributor to India’s

gross domestic product (GDP). The industry currently accounts for almost 7 per cent of the

country’s GDP and employs about 19 million people both directly and indirectly (Report of

Department of Industrial Policy and Promotion). Indian Automotive Industry growth decades

started in the 1970s. Between year 1970 and 1984 cars were considered as a luxury product;

manufacturing was licensed, expansion was restricted; there were Quantitative Restrictions (QR)

on import and tariff structure designed to restrict the market, but initially in year 2000, several

landmark policy changes like QR and 100% FDI through automotive route were introduced.

(Automotive Mission Plan, 2006-2016). In 2003, Core group on Automotive R & D (C.A.R) was

set up to identify priority areas for automotive R & D in India. Indian Auto Industry is 2nd

in Two

Wheelers, 3rd

in Small Cars and 5th

in Commercial Vehicles among the top 10 in the World.

In addition, with Government’s backing and a special focus on exports of small cars, multi-utility

vehicles (MUVs), two and three wheelers and auto components, the automotive sector’s

contribution to the GDP is expected to double reaching a turnover worth US$ 145 billion in 2016,

(Automotive Mission Plan (AMP) 2006–2016). The Production of the automobiles has been

increased at a compound growth rate of 13.2 per cent. In the recent years strong demand is due to

rising incomes, increasing growth in the middle class, and the younger population will make India

one of the leading producers of automobiles. The major factors are skilled manpower and

technological advancement.

Tata Nano, which has been considered as world’s cheapest car and had been able to focus towards

the low-income market. Hero Honda and Mahindra and Mahindra have jointly planned to develop

a technology for two-wheelers which will run on natural gas.

With rising income level and bombardment of middle class and youth, India is a major market for

medium and heavy duty trucks and buses apart from the skilled labor and technology .Ford Motors

is planning for global production unit of compact cars in India, once its plant in Gujarat sets up.

Hyundai considers India as the most important market. In the future Indian automobile sector is

poised for steady growth.

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1.1 Key Statistics

The Indian automobile industry has been registered with an annual growth rate of 8.27 percent

when it was compared to August’12 as it produced 1.56 million vehicles which include passenger

vehicles, the commercial vehicles and three wheelers.

There was an inflow of USD 8,922 million in automobile sector from foreign direct investment in

between April 2000 to August 2013 that is an increasing inflow of 4.51 %, as per the data

published there has been rise in overall exports of automobiles during the period of April-

September 2013. There recorded 3.33 million production of passenger vehicle in 2012-14 and has

been expected to grow at a rate of 14 per cent annually. (Automotive Component Manufacturers'

Association of India, 2014-15) The auto industry produced a total 1.81 million vehicles, including

passenger vehicles, commercial vehicles, three wheelers and two wheelers in February 2014 as

against 1.73 million in February 2013, registering a growth of 4.41 per cent over the same month

last year. The increase continues to be on account of growth in two wheelers production. (Report

of FDI, 2015) Moreover, the overall domestic sales during April–February 2014 grew marginally

by 2.68 per cent over the same period last year. Refer to table 1

The passenger vehicles production in India is expected to reach 10 million units by 2020–21. The

industry is estimated to grow at a compound annual growth rate (CAGR) of 13 per cent during

2012–2021. In addition, the industry is projected to touch US$ 30 billion by 2020–21, according to

data from Automotive Component Manufacturers’ Association (ACMA). The cumulative foreign

direct investment (FDI) inflows into the Indian automobile industry during the period April 2000

to January 2014 was recorded at US$ 9,344 million, an increase of 4 per cent to the total FDI

inflows in terms of US$. (Report of Department of Industrial Policy and Promotion (DIPP) 2014-

15)

Table 1. Top Automobile Companies in India (Figures in Crores) 2011 ET 500 Rank Company Turnover PAT MCRP CR Assets

7 Tata Motors Ltd 123222.91 9273.62 56499.77 52209.48

21 Mahindra and Mahindra

Ltd 37026.37 3079.73 49945.17 36926.19

19 Maruti Suzuki India Ltd 38140.69 2382.37 31475.63 14762.9

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41 Hero MotoCorp Ltd. 19669.29 1927.9 40398.63 4447.22

46 Bajaj Auto Ltd. 17008.05 3454.89 46885.69 5154.96

67 Ashok Leyland Ltd. 11133.04 631.3 6653.15 6621.16

101 Sundaram Clayton Ltd. 7419.41 64.63 529.23 2428.87

110 TVS Motor Company Ltd. 6569.99 127.94 2985 1745.06

148 Eicher Motors Ltd. 5138.64 243.12 4448.27 474.14

396 Force Motors Ltd. 1574.05 58.62 730.05 583.79

Source: http://www.team-bhp.com/forum/indian-car-scene/141129-august-2013-indian-car-sales-figures-analysis.htm

The overall automobile exports grew by 6.39 per cent during April–February 2014. Passenger

vehicles, three wheelers and two wheelers registered growth at 6.44 per cent, 16.40 per cent and

5.41 per cent respectively, compared to the same period last year.

1.2 Role of Customer Relationship Management in Automobile Industry

Customer relationship management (CRM) is increasingly important to firms as they seek to

improve their profits through longer-term relationships with customers. In recent years, many have

invested heavily in information technology (IT) assets to better manage their interactions with

customers before, during and after purchase (Bohling et al., 2006). Yet, measurable returns from

IT investment programs rarely arise from a narrow concentration on IT alone, with the most

successful programs combining technology with the effective organization of people and their

skills (Bhardwaj, 2000; Piccoli and Ives, 2005). It follows that the greater the knowledge about

how firms successfully build and combine their technological and organizational capabilities, the

greater will be our understanding of how CRM influences performance. Although the market for

CRM software and support is strong that remains considerable skepticism on the part of business

commentators and academics as to its ultimate value to the corporation and customers (Maoz et al.,

2007). Surveys of IT executives in the business press report that CRM is an overhyped technology

(e.g. Bligh and Turk, 2004) and some academics claim the concept is fundamentally flawed

because CRM ignores the reality that many customers do not want to engage in relationships

(Dowling, 2002; Danaher et al., 2008).

Empirical studies examining the success of CRM technology have failed to alleviate this

skepticism as investigations to date span a limited range of activities (Sutton and Klein, 2003) and

are noticeably silent on the extent to which CRM investment contributes to firm performance

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(Boulding et al., 2005). A lack of clear and generalizable empirical support for the expected return

from CRM investments has important practical implications for market development and firm

profitability. It also raises questions regarding the most appropriate mix of capabilities to

effectively exploit investment in CRM Customer Relationship management is the strongest and the

most efficient approach in maintaining and creating relationships with customers. Customer

relationship management is not only important for business but also useful to create strong

personal bonding within people. Development of this type of bonding drives the business to new

levels of success.

Once this personal and emotional linkage is built, it is very easy for any organization to identify

the actual needs of customer and help them to serve them in a better way. It is a belief that more

the sophisticated strategies involved in implementing the customer relationship management, the

more strong and fruitful is the business. Most of the organizations have dedicated world class tools

for maintaining CRM systems into their workplace. Some of the efficient tools used in most of the

renowned organization are Batch Book, Sales force, etc.

Faced with the increasingly complex and competitive environment that characterizes the

automotive industry – with challenges ranging from tighter profit margins to new entrants in the

new- vehicle and aftermarket service business – original equipment manufacturers (OEMs) and

dealers are turning more aggressively to customer relationship management (CRM) to help attract

new customers, increase brand loyalty, reduce costs, increase efficiency, and maintain a

competitive advantage.

Today’s automotive consumers are increasingly well-informed and have an unprecedented level of

choice in the marketplace. Customer loyalty is no longer a given and forward-looking auto-

motive, companies have to work harder than ever to earn and retain it. To respond to high

customer expectations, companies are finding, they have to use both traditional and emerging

channels to deliver more effective, efficient, and profitable marketing, sales, and customer service.

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2. Literature Review

Reichheld and Sasser (1990) indicated that an improvement of 5 percent in customer retention

leads to an increase of 25 percent to 75 percent in profit of automobile companies. Further, Wills

(2009) reported that it costs more than five times as much to obtain a new customer than to keep an

existing one. Moreover, with loyal customers, for example, companies can increase their revenue.

First, loyal customers are less price sensitive, and the premiums of loyal customers increase 8

percent annually in the personal insurance industry (Reichheld and Teal, 1996). Second, loyal

customers are willing to purchase frequently, try the firms’ other products or services, and bring

new customers to the firms (Reichheld and Sasser, 1990). At Northwestern Mutual, the

contribution of 55 percent sales is from existing customers (Reichheld and Teal, 1996). Further the

author indicates that customer loyalty provides a foundation for a firm to examine their marketing

strategy, relationship quality improvement activities, and value creation program. Day (1969)

introduced the concept of commitment to loyalty studies, and reported that commitment to the

brand is necessary in determining the loyalty. The study seeks to develop a conceptual framework

of brand image on customer commitment and loyalty. Therefore, the purpose of study is to

evaluate how corporate brand image affects customer commitment as well as impact on loyalty in

automobile sector.

Payne and Zrow (2005) had developed a structured framework of customer relationship

management (CRM) which helps the better understanding of CRM and the way it enhances the

customer value and shareholder. The researchers have found out theoretical aspects of CRM, and

they have identified 3 alternative perspectives of CRM. The authors emphasized the need for a

cross-functional and process-oriented approach that places CRM at a strategic level. Oliver (1997)

indicated that customer loyalty is defined as a deeply held commitment to re-purchase a preferred

product or service in the future. With loyal customers, companies can maximize their profit

because loyal customers are willing to (1) purchase more frequently; (2) spend money on trying

new products or services; (3) recommend products and services to others; and (4) give companies

sincere suggestions (Reichheld and Sasser, 1990). Thus, loyalty links the success and profitability

of a firm (Eakuru and Mat, 2008).Customer loyalty is commonly distinguished in three approaches

including behavioral loyalty approach (Grahn, 1969) attitudinal loyalty approach (Bennett and

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Rundle-Thiele, 2002; Jacoby, 1971; Jacoby and Chestnut, 1978), and integration of attitudinal and

behavioral loyalty approach (Dick and Basu, 1994; Jacoby, 1971; Jacoby and Chestnut, 1978;

Oliver, 1997). The attitudinal loyalty helps to examine the factors of loyalty, to avoid switching

behavior (Caceres and Paparoidamis, 2007), and to predict how long customers will remain loyal

(Jacoby and Chestnut, 1978). Therefore, viewing loyalty as an attitude-behavior relationship

allows integrated investigation of antecedents and consequences of customer loyalty (Dick and

Basu, 1994). (Tim et.,al reveled for the companies to survive in today’s competitive environment;

this becomes the major objective of customer relationship management in customer retention. In

the present market conditions consumer are very important factors as the companies change their

short term and long term policies according to customer requirement. In same line, Parvatiyar and

Sheth (2001) developed the conceptual foundations of CRM by determining the literature on

relationship marketing and other streams that gives the knowledge of CRM. CRM implementation

challenges as well as CRM's potential to become a distinct discipline of marketing are also

discussed in this paper. Milovic (2012) Customer Relationship Management is a business strategy

that is based on the philosophy of "customer is king" that is customer is put in the central place.

This philosophy, with the enhancement of IT in past 20 years, has experienced a major change.

Today it is said that consumer is a dictator, according to whom the company will always adjusts its

business. The most important task of organization is to satisfy a client's needs, which ultimately

means their long-term value to the organization. This paper describes the application of CRM

strategies in several industries Thuyuyen et al., (2007) place forward the methods for booming

implementation of the CRM and to discusses barriers to CRM in e-business and therefore the m-

business. Coltmana et.al., (2011) analyzed the impact of the customer relationship management

(CRM) on a firm’s performance with the employment of hierarchical construct model has been

examined. when following the resource-based read of the firm, the strategic CRM has been

conceptualized that is associate endogenously determined operate that the organization ability to

harness and orchestrate lower order capabilities that comprise physical assets, like IT

infrastructure, and structure capabilities, like human analytics and business design. The results

have a positive and awfully important path between a superior CRM capability and the firm

performance. In turn, the superior CRM capability has been absolutely related to the human

analytics and design of business. The results recommend that the impact of IT infrastructure on the

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superior CRM capability has been indirect and absolutely mediate with the employment of human

analytics and therefore the business design.

2.1 Objectives of the Study

The main objectives of the study are as follows:-

1. To analyze the effectiveness of customer relationship management on customer satisfaction.

2. To study the impact of customer relationship management on customer retention in

automobile sector and further explore the various CRM activities conducted/initiated by

various companies.

3. Research Method and Research Instrument

The research methodology for the present study was based upon descriptive research design.

Stratified Non Probability Sampling method was used, which involves the sample being drawn

from that part of the population which is close to hand. The questionnaire survey technique (refer

to Annexure 1) was used to collect data. Responses were collected from 120 respondents from the

NCR (National Capital Region) of India. The choice of questions for the study include questions

on personal background; age- lowest range was 16-20 and highest was 40 and above; gender-

male/female; employment type- employed (public, private and self), student and unemployed. The

other questions were on variables used to assess automobile service performance; customer care

services Validity of the questionnaire also done to check whether the variable used to study

customer relationship management dimensions will produce consistent results (refer to Table 2).

Table 2. Validity of Questionnaire Cronbach’s Alpha Number of items

0.745 24

3.1 Different Dimensions of CRM in Automobile Sector

To narrate the variable in different dimensions of customer relationship management in automobile

sector the factor analysis has been administered. Explanatory factor analysis is used to identify the

underlying constructs and investigate relationships among the variables. To test the suitability of

the data for factor analysis, the following steps are taken:

The correlation matrix are computed and examined. It reveals that there are enough

correlations to go ahead with factor analysis.

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To test the sampling adequacy, Kaiser-Meyer-Olkin measure of sampling adequacy is

computed which is found to be 0.620. It indicates that sample is good enough for sampling.

The overall significance of correlation matrices is tested with Bartlett test of sphericity (Approx

Chi-square = 0.537and significant at 0.000) provided as well as support for the validity of the

factor analysis of the data set.

Table 3. KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.537

Bartlett's Test of Sphericity

Approx. Chi-Square 80.923

Df 55

Sig. 0.000

Source: Primary Data

A high value of the statistics (from 0.5 to 1) indicates the appropriateness of the factor analysis

for data in hand. Here the value is 0.537 which means it is appropriate to apply factor analysis.

Figure. 1 Screen Plot of Components

Figure 1 clearly depicts that Eigen values and component (factor) number according to the order of

extraction. This plot is used to determine the optimal number of factors to be retained in the final

solution. Here are 4 components having Eigen value above 1.

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Table 4. Rotated Component Matrix

Statements

Component

1 2 3 4

Quality work performed 0.582 0.197 -0.179 -0.261

Comfort 0.171 -0.209 -0.354 0.462

Willingness to satisfy you -0.312 -0.294 -0.481 0.040

Friendliness helpfulness -0.029 0.606 0.343 0.248

Convenient hrs of timing 0.112 -0.188 0.594 0.043

Availability appointment 0.691 0.023 -0.071 0.316

Receiving 0.709 -0.194 0.282 0.127

Promptness -0.170 0.025 0.633 0.003

Arranging replacements 0.076 0.112 0.106 0.773

Cleanliness 0.208 0.537 -0.062 -0.342

On time delivery -0.074 0.771 -0.149 0.012

Note: Extraction method: Principal component analysis, Rotation method: Varimax with Kaiser Normalization,

Rotation converged in 7 iterations.

The rotated component matrix table 4 had shown that customers’ convenience, delivery of services,

showing confidence and promptness of services being offered by the service providers in

automobile sector. The Rotated variables mentioned below have factors loading of 0.6 or above.

Factor 1 - Availability of Services: This factor has been loaded by two variables availability of

appointment (0.691) and receiving (0.709). It’s clearly shows that customers are concerned about

the availability of their vehicle services at any point of time.

Factor 2 - User Friendly: This factor has been uploaded by two variables –friendliness (.606) and

on time delivery (.771) and cleanliness (.537). Under the CRM benefits now a days companies also

offered the online service booking facility, pick and drop facility for retaining their loyal

customers.

Factor 3 - Prompt Services: This factor has been uploaded by only one variable is promptness of

the services offered by service provider and convenient hour. CRM system saves time and cost of

the customers, through this system, customers expect prompt service from the service provider.

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Factor 4 - Replacements: This factor has been uploaded by only one variable is promptness of the

services offered by arranging replacement for the auto parts etc.

Table 5. One-Sample Test

Test Value = 0

T Df

Si

H01: Customer

satisfaction has

no association

with customer

retention.

Confidence

level: 95%g. (2-

tailed)

Mean

Difference

95% Confidence Interval

of the Difference

Lower Upper

Customer Satisfaction and

preference of second

purchase

46.256 319 .000 2.388 2.29 2.49

Satisfaction has strong association with customer retention (repetitive purchase).

According to the above table, we can conclude that the significance level or the p value is less than

0.5 so we will reject the null hypothesis in favor of alternative hypothesis which is customer

Satisfaction and loyalty: Table- 6 highlights the relationship between the satisfaction of the

respondents and they recommended the vehicle and service to their friends or relatives for

purchasing.

Table 6. satisfaction * recommend to others

Parameters Recommend to others Total

Yes no

highly satisfied 43 19 62

satisfied 39 12 51

neutral 2 1 3

least satisfied 2 1 3

dissatisfied 0 1 1

Total 86 34 120

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Above Table shows that 82(43 highly satisfied and 39 satisfied) of 120 customers recommend the

product or service to others. This infers that satisfaction leads to loyalty (spread of positive word of

mouth).

4. Multiple Regression Analysis

To identify whether different dimensions of CRM has strong impact on customer loyalty, multiple

regression was used.

Table 8. Contribution of variables in the dimensions of trust dependent variable: customer loyalty scores (y)

Independent Variable Unstandardized Co-

efficient

Standard

Error

Standardized Co-

efficient

t-Value Significant

Constant (y) 1.634 0.256 - 5.130 0.000

On time service delivery

(Promises ) (X1)

0.531 0.078 0.502 6.841 0.000

Promptness in handling

repair work (X2)

0.062 0.056 0.082 1.112 0.268

Note: Multiple R 0.514, F-Value 24.590: d.f (2,137) p < 0.05: and R2 = 0.264

Source: Primary Data

The above Table explains contribution of trust dimensions of customer relationship management to

customer Loyalty.

Y = 1.634 + 0.531 (X1) + 0.62 (X2) Where Y is the estimated customer Loyalty Score.

The above equation revealed the variables of trust and on time service delivery, consistent in

providing services. On an average, if the perception score of trust changes by 1 unit, there will be

0.531 unit increase in customer loyalty, other variable being remain constant similarly the multiple

R of 0.514 revealed that there exist the relationship of 51 percent between trust and customer

loyalty. Similarly R2 indicates 0.264 change in trust explained and variation of 26 percent in

customer loyalty. The relative importance of variables in predicting trust can be determined by

comparing beta co-efficient. Values of Beta are 0.502, 0.082 respectively for customers work

promises are reliable, and consistent in providing services. This shows that among all aspect of

trust, on time service delivery and Promptness in handling repair work had most powerful impact

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on customer loyalty. It has been noticed from the above analysis that for further designing

customer retention programme for trust and on time delivery could play major role for retaining

the customers.

Table 9. Contribution of variable in the dimensions of caring. Dependent variable: Customer Loyalty Score (Y)

Independent Variable Un Standardized

Co-efficient

Standard

Error

Standardized Co-

efficient

t-Value Significant

Constant 1.307 0.303 - 0.4309 0.000

Friendliness helpfulness

(Quickly handling customer

query)

0.093 0.051 0.132 1.838 0.068

Arranging replacements 0.016 0.033 0.034 0.498 0.620

Fulfill its obligation to

customer

0.600 0.072 0.582 8.296 0.000

Note: Multiple R 0.633, F value 30.291; d.f (3.136): P < 0.05: and R2 0.401

Source: Primary Data

Y = 1.307 + 0.093 (X1) + 0.016 (X2) + 0.600 (X3) Where Y is the estimated customer loyalty score.

The above equation shows the impact of the variable of, Friendliness helpfulness, arranging

replacements full fills its obligation to customers. On an average, if perception score of caring on

an average changes by 1 unit, there will be 0.093 units. Increasing in customer loyalty, similarly

the multiple R of 0.633. Shows that there exist the relationships of 63 percent between caring and

customer loyalty. Similarly R2 0.401 of exhibits that the variable of caring explained a variation of

40 percent in customer loyalty. The relative importance of variable in predicting. Caring can be

determined by comparing standardized regression co-efficient (beta Co-efficient). Values of beta

are 0.093, 0.016, and 0.600 respectively for Friendliness helpfulness, arranging replacements full

fills its obligation to customers. This shows that among all aspects Friendliness helpfulness

(Quickly handling customer query), arranging replacements and Fulfill its obligation to customer

had powerful impact on customer loyalty.

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5. Findings

This paper has drawn attention on the impact of different dimensions of customer relationship

management to customer loyalty. From the analysis, it is concluded that customer works and

promises are reliable. Automobile service provider fulfills its obligation to customer, are offering

advice on how to invest the predominant variable which will increase customer loyalty. So the

automobile sector needs to focus more attention in the above stated variables, thereby increasing

customer loyalty.

94.2% of the customers are in the satisfaction and above satisfaction level. The customers are

satisfied with the company’s services and hence they will be loyal customers and will be retained.

This indicates that satisfaction leads to customer loyalty and retention. Crosstab results show that

satisfied customers are retained as they would go for the second purchase of the product Crosstab

results show that satisfied customers recommend the product or service to others that is they spread

a positive word of mouth. According to customers, breakdown of charges are not explained to

them and the paper work is not completed in time so the companies need to improve on the above

mentioned attributes. Most of the service representatives are courteous and knowledgeable but

when it comes to call handling there is difference of opinion among respondents 31 percent are

strongly agree that there is quick call handling where as 30 percent disagree on quick call handling,

so call handling should be quick rather than keeping customers on hold or make them waiting for

long.

6. References

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Bharadwaj, A.S. (2000). A Resource-Based perspective on information technology capability and

firm performance: An Empirical Investigation. MIS Quarterly, 24(1), 169-196.

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Bligh, P., and Turk, D., (2004) CRM Unplugged: Releasing CRM's Strategic Value Hoboken,

New Jersey, USA.

Boulding, W., Staelin, R., Ehret, M., and Johnston, W., (2005) A Customer Relationship

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Marketing 69(4), 155-166.

Bohling, T., Bowman, D., LaValle, S., Mittal, V., Narayandas, D., Ramani, G., and Varadarajan,

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Annexure-I (Questionnaire)

Respondent name

Address

Contact Numbers

Email Id

Gender And Age

1. Rate from 1 to 5 on the basis of preference the following services 1 being highly preferred

and 5 being least preferred

Services 1 2 3 4 5

Free after sales service

Test drive

Free training

2. What type of CRM services do you avail?

E-CRM

Tele-customer service

3. What activities company does to maintain continuous relation with you?

Loyalty program

Bonus card

Annual offers

Club invitations

4. Rate the Benefits of CRM

Benefits Strongly

agree

Agree Neutral Disagree Strongly

disagree

CRM activities

saves time

CRM activities

reduces cost

CRM activities

helps in better

decision making

Cross selling

5. In thinking about your most recent experience with [COMPANY], was the quality of

customer service you received:

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Very poor

Somewhat unsatisfactory

About average

Very satisfactory

Superior

6. The following questions pertaining the customer service representative with whom you

spoke recently.

The customer service

representative was:

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Very courteous

Handled my call quickly

Very knowledgeable

7. On your most recent service visit, how would you rate the service department on the following

areas?

Highly

satisfied

Satisfied Neutral Least satisfied Dissatisfied

Quality of work

performed

Avoiding inconvenience

Made you feel

comfortable

Willingness to go out of

their way to satisfy you

Friendliness and

helpfulness of cashiers

Having convenient

hours for service

Ease of obtaining an

appointment

Quickly acknowledging

your arrival

Promptness in handling

repair work

Arranging replacement

Clean, comfortable

waiting area

On time delivery

8. Did the following things occur on your most recent service visit?

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9. Would you recommend the product to others?

Yes

No

10. Would you prefer the same company or the product for your second purchase?

Yes

No

11. How satisfied are you with the service?

Highly satisfied

Satisfied

Neutral

Least satisfied

Statements

Yes No

You were explained the work to be performed before hand

You were explained the work performed and the breakdown of the

charges

You were informed when your car was ready

The paperwork was completed and waiting for you when you arrived