Effectiveness Business is tough these days and

Effectiveness
of Relationship Marketing Tools With Reference To Automobile Sector

Prof. Lakshmi
Kannan                                    Mr.
E.K.M. Anoop

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Assistant
Professor                                         Post
Graduate

            Ramaiah
Institute of Management                 Ramaiah
Institute of Management

Bangalore 560054                                           Bangalore
560054

[email protected]                               [email protected]

9886651977                                                    8885482224

 

                                                                       

                                               

ABSTRACT

This paper
empirically examines the Effectiveness of Relationship Marketing Tools with
Reference to Automobile Sector. 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. So the study started with
analyzing various research papers to identify the gaps in it. The main aim of
the study was to identify the factors influencing in retaining customers
through relationship marketing tools. A structured questionnaire was prepared
to collect data about demographic information and subject of the study. Through
results we found out that there is a significant relationship maintained by
companies with their consumers which is resulting in customer loyalty and
retention.

 

I.                  
Introduction

Customer relationship marketing
(CRM) is a business process in which client relationships, customer loyalty and
brand value are built through marketing strategies and activities. CRM allows
businesses to develop long-term relationships with established and new
customers while helping streamline corporate performance. CRM incorporates
commercial and client-specific strategies via employee training, marketing
planning, relationship building and advertising.

Business is tough these days
and the economy has caused companies of all sizes to rethink when and how to
nurture their relationship with customers. While it may seem like an easy
decision to cut back on investing in customer marketing, that may not be the
wisest choice. As products and services continue to become commoditized, the
only remaining differentiator becomes the vendor-customer relationship. There
is no getting around that delighting customers and growing revenue will become
more heavily based on how well you understand their evolving needs.

 

II.               
Literature
Review

Researchers
have attempted to study the factors responsible for customer delight and
retention.

Uzzal
Kumar Borah had made an attempt to study the factors which make customers happy
and delightful which in return results in retention of customers. In this
research they found the factors involving in purchase of products. He also
projected various marketing activities carried out by manufacturers.

Siphiwe
Plaxcedes made a study to know how CRM strategies are helping automobile
companies to retain and attain higher profits from their customers and found
out that the major finding was that trust and commitment have a role to play as
they led to customer loyalty.

Gupta,
N. and Williams did study on Customer Relationship Management In Car Service
Industry With Reference To Car Dealers In Coimbatore with an objective to Study
the level of customer
relationship management pertaining to service industries, To study the
procedure followed by the dealer to ensure the customer satisfaction after
sales service and To study the effectiveness of services marketing. It is found
that With the release of high value cars with the latest technology and luxury
features, the customer’s expectations from the dealers is also increasing in
terms of service facilitation and upgraded infrastructure.

Dr.
Garima Malik did a study on, Impact of Customer Relationship Management on
Customer Loyalty and Customer Retention with reference to Automobile Sector
with an objective to analyze the effectiveness of customer relationship management
on customer satisfaction. The findings are 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.

Dibeesh
C did a study on Customer relationship management (CRM) in automobile industry.

With
an objective to explore various CRM activities conducted or initiated by
various companies.

The
study findings are that companies are more focused on availability of service
and user friendly prompt service.

 

III.            
Objectives
Of The Study

·        
To identify the
factors influencing in retaining customers through relationship marketing tools

 

·        
To determine the most influencing tool affecting
customer retention in automobile sector

 

IV.            
Scope Of The Study

The study is conducted in Rajahmundry. The time frame for
reference of the study is the third quarter of 2017.

 

V.               
Hypothesis

H0 (Null): Customer satisfaction
survey is not a significant relationship-marketing tool affecting customer
retention.

 

H1 (Alternate): Customer satisfaction survey is a significant
relationship-marketing tool affecting customer retention.

 

VI.            
Data
And Methodology

Descriptive research was adopted in carrying out this study.
However exploratory study is done initially to identify the factors that the
customers to book a hotel through online hotel booking sites. The primary data
obtained using Questionnaire. The population consists the respondents who are
already the current users of passenger cars of various companies.

Data
Collection:

Primary
Data:

Structured questionnaire was set
to obtain personal information (gender, occupation, and income group) on
respondents and then asked questions to understand the key factors that impact
on them to be a loyal consumer and retain for longer periods.

Secondary
data:

Secondary Data The secondary data is
being collected from various sources like Google, Wikipedia, research papers,
journals, articles, Newspapers, websites.

Sample design
–       Non probability sampling                 
      

Convenience Sampling

Statistical
Tool:

The
statistical tool used to do hypothesis-testing is Chi-square, used to analyse
data and to test the statistical significance of the observed association in a
cross tabulation. It assists in determining whether a systematic association
exists between two variables.

SPSS
and MS excel are used to analyze the data.

VII.         
Analysis,
Results And Discussions

Testing
the Hypothesis

H0
(Null): Customer satisfaction survey is not a significant
relationship-marketing tool affecting customer retention.

 

H1 (Alternate): Customer satisfaction
survey is a significant relationship-marketing tool affecting customer
retention.

Benifits *
Continue Crosstabulation

Count 

 

Continue

Total

yes

No

Benifits

Occasional Wishes

23

10

33

Gifts

18

0

18

Regular Feedback

39

10

49

Total

80

20

100

 

Chi-Square
Tests

 

Value

df

Asymptotic
Significance (2-sided)

Pearson Chi-Square

6.694

2

.035

Likelihood Ratio

10.007

2

.007

Linear-by-Linear Association

.798

1

.372

N of Valid Cases

100

 

 

 

Inference:

As per the hypothesis testing the null hypothesis is rejected which
means that Customer satisfaction survey is a significant relationship marketing
tool affecting customer retention because automobile companies focus on
customer satisfaction and provide better services so that customer loyalty and
retention are built.

VIII.      
Conclusion:

Customer Relationship
Marketing is a strategic know how to handle the customer relations from a
company point of view. The strategy is based how to develop, establish and
increase the relation with the customer for profitability perspective. It is
based on the knowledge of the individual customer’s need and potential, the
company makes a strategic to find out the different of the customer with other
customer to gain the customer for a long period of time. The cut across
traditional the organization structure is to force the customer in the
integration of the company activities. By the implementation of CRM is not a
small task of any organization. There is no doubt that the CRM can be major
factor that give the competitive advantage for the maximum market and customer.

 

Reference:

http://www.indianmirror.com/indian-industries/automobile.html

https://www.ibef.org/industry/india-automobiles.aspx

http://www.ispiritsolutions.com/blog-global-automotive-industry-trends-forecasts/

Marketing Management book, by
Philip Kotler and Kevin Lane Keller

http://www.ganpatuniversity.ac.in/sites/default/files/Jounrnal/6.pdf

http://ijariie.com/AdminUploadPdf/CUSTOMER_RELATIONSHIP_MANAGEMENT__CRM__IN_AUTOMOBILE_INDUSTRY_1385.pdf

https://www.pm360online.com/the-ins-and-outs-of-relationship-marketing/

https://pdfs.semanticscholar.org/8b58/84df1520ceda1c1c20f1c50d18e6e80bd21f.pdf

http://jairjp.com/MAY%202013/14%20UZZAL%20KUMAR.pdf

2018 Automobile Industry Outlook

http://www.ispiritsolutions.com/blog-global-automotive-industry-trends-forecasts/

https://www.am-online.com/news/2014/4/8/10-ways-car-dealers-can-improve-their-customer-relationship-marketing/34801/?p=2