Department of Computer Science and Electronics
TITLE
RELATIONSHIP MANAGEMENTS IN PROJECTS AND ITS EFFECT ON MARGINS.
WITH A VIEW TO SATISFACTION, COMMITMENT AND CUSTOMER RETENTION.
IN PARTIAL FULFILLMENT OF THE AWARD OF MASTERS OF SCIENCE DEGREE
WITH FOCUS IN INTERNATIONAL PROJECT MANAGEMENT.
PREPARED BY
ADARAN AYODOTUN OLUKUNLE
SUPERVISOR
BENGT-INGE ANDERSSSON
EXAMINER
ASA LUNDKVIST
1
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
TABLE OF CONTENTS
1
1.1
1.2
1.3
2.
2.1
2.2
2.3
2.3.1.
2.4
2.4.1
2.4.2
2.5
2.6
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.8.1
3.8.2
3.9.
3.10
3.11
3.12
3.13
3.14
4.0
4.1
4.2
4.3
4.4
5.0
5.1
5.2
6.0
6.1
7.0
Acknowledgment………………………………………………………………….3
Introduction………………………………………………………………………..4
Research Problem………………………………………………………………….6
Research Significance……………………………………………………………..7
Aims And Objectives………………………………………………………………7
Literature Review………………………………………………………………….9
Relationship Management………………………………………………………...9
Organizational Perception of Relationship Management…………………………11
Customers Perception of Relationship Management……………………………..12
Customers Satisfaction and its effect on commitment…………………………….13
Differential Analysis of Customer and Organisational Perception……………….14.
Commitment –Satisfaction- Defection. Intention Interrelationships……………...14
CRM in Project Management…………………………………………………..…15
Conceptual Framework …………………………………………………………...18
Analysis Link………………………………………………………………………20
Research Methodology……………………………………………………………22.
Positivism………………………………………………………………………….22
Phenomenology……………………………………………………………………24.
Quantitative and Qualitative Research……………………………………………25
Quantitative Research……………………………………………………………..26
Qualitative Research………………………………………………………………27
Characteristics of Quantitative and Qualitative Research…………………………27
Research Methods…………………………………………………………………29
Questionnaires……………………………………………………………………..30
Structured Interview……………………………………………………………….32
Characteristics of Structured, Semi-structured and Unstructured Interviews……..34
Secondary Data……………………………………………………………………35
Triangulation ……………………………………………………………………...34
Validity and Reliability …………………………………………………………...38
Methods Applied………………………………………………………………….39
Procedures and Sampling ………………………………………………………...40
Findings & Analysis……………………………………………………………….41
Methods 1 Questionnaire………………………………………………………….41
Semi-structured Interview ………………………………………………………...44
Analysis Of The Questionnaire Results……………………………………………52
Summary of Findings………………………………………………………………55
Conclusion And Recommendation………………………………………………....58
Conclusion…………………………………………………………………………58
Recommendation…………………………………………………………………..60
Part Two……………………………………………………………………………62
Critical evaluation of the dissertation……………………………………………...62
Appendix 1…………………………………………………………………………65
Questionnaires……………………………………………………………………..65
References…………………………………………………………………………71
2
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
ACKNOWLEDGMENT
I would like to acknowledge the help received from some people in the course of doing this
program and writing this thesis. A big thank you to God Almighty for making this possible, it
is an age long ambition, my parents for always being there, my able supervisor the person of
BIA for his constructive criticism, patience in writing this thesis and to all my friends. Thanks
for everything.
3
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
1.
INTRODUCTION
Relationship management is neither a concept nor a project. Instead, it is a business
strategy that aims to understand, anticipate and manage the needs of organization current and
potential customers. Relationship management is an approach to building and maintaining
open and effective communication between an organization and it customers, whoever they
may be. It involves developing on going two-way conversation with those customers, a
relationship rather than a one-off exchange; it means keeping them and building loyalty
through involvement, quality project performance and creating a win-win situation with them.
For organizations with wide ranging appeals and fund-raising campaigns, and good
relationship management can mean thousands of dollars in donations; for others it may mean
regular customers coming back to you for Christmas cards and gifts and for others it may
mean a statutory turning into a repeat, purchaser choosing you as a supplier or service
provider instead of rival organization down the road. [3]
Relationship management involves the means, technology and capabilities, which
assists organizations in effective customer relationships. This research work tends to analyze
critically the relevance of relationship management in projects management context, a
customer satisfaction appraisal and its effect on project margins. Businesses are subjected to
stronger and more rapidly changing forces, globalization, deregulation, convergence of
industries to name a few, with ever changing market and business face, business have
rediscover that more than ever, in the face of increasing competition, mature markets and ever
demanding customer, treating existing customers well is the best source of profitable and
sustainable revenue growth, simply stated when an organization has a customer, they must do
everything within their capacity to keep them. This invariably causes revenue to increase due
to additional sales or more projects, which leads to profitable and sustainable revenue growth.
[2]
There is a wide spread of criticism of customer satisfaction measurement and the
rationale behind relationship management. Is it worth it? Does relationship management have
any effect on project margins? Is a satisfied customer going to increase margin or bring in
more revenue. Does good relationship management have any correlation with repeat purchase
4
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
or patronage, customer retention or profitability? It is logical that if customers are satisfied
with us, they will return to us. They will be less inclined to switch sides when occasion
warrant for them to request for our service or expertise, it would also follow that if customers
switched, they are not happy with our service or dissatisfied with a particular thing with our
organization, but if less customer switched, the cost of marketing or getting another business
will be reduced thereby making the organization more profitable. Almost by defection, we
would expect customer satisfaction or proper relationship management to relate to loyalty and
profitability. If good relationship management does not accomplish these, then from a
business point of view, there would be little or no point in following this thinking; it simply
shows from a face value that customer satisfaction or good relationship management is
irrelevant to business. This statement lacks face validity and does not make intuitive sense.
Why would a satisfied customer not patronize us again? Why would they not stay longer with
us? He contends that customer satisfaction is “one of the least reliable and most common
measure in use today” admits that it is not that customer satisfaction does not matter, it
matters a great deal, and it is the manner, context and priority of satisfaction in measurement
that has become the problem. [2]
Organizations are now seeking to formalize the management of customer relations.
Many organizations have appointed relationship managers whose responsibility is to act as the
interface between client and the various services provided by the organizations. Customers are
the starting points and an organization needs to deal with a high value customer managed
relationship because the cost of doing business can be reduced and customer loyalty can be
enhanced. Some organizations use the concept of key management in the same way but
whichever way an organization calls it, it still remains basic that it is all relationship
management, both with customers and employees of the organization. For this approach to be
meaningful and not just cosmetic, it is essential that the relationship manager be given
authority to manage the relationship. [3]
Customer relations should be more than progress chasing and customer care. Its primary
concern must be to plan and manage moments of truths or the encounters with customers that
occur at every stage from the placement of orders to the final delivery of the process or
services and beyond. However, before considering the full concepts of relationship
management, it is imperative to also make mention of relationship marketing which is
otherwise a precursor to relationship management because a customer must be first won over
5
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
before being managed. Relationship marketing is therefore necessary and is emerging as an
actionable framework for developing enduring long-term (and hence more profitable)
relationship with customers. Relationship management is not only beneficial to organization;
it is equally good too for the customer because it saves them some cost in looking for a
contractor or organization to handle their project any time they have something doing. But it
is only a well managed relationship or customer that could make them come back for more
patronage, when they are sure about the quality of previous projects or services handled for
them, they will be quick to make a referral or request for more service from you. Customer
satisfaction and relationship management works hand in hand, a customer must be satisfied
with the previous project you handled for them for you to be able to manage the relationship
after the project. If a satisfactory job is not done, it will be difficult to manage such a
customer. Within organizations, every department has their own operational system and
different customers, e.g. customers for purchasing and supply have a different system to sales
department and installation and commissioning engineers but they all work under the same
organization. [3]
1.1
RESEARCH PROBLEM
This is actually a problem because organisations are becoming carried away with the sharp
cutting edge business ideas that they forget all the ideas revolve round the customer and they
forget that whatever the idea they are generating, if the customers relationship is not well
managed, they are going to be useless in the long run. How well are customers relationship
management given priority in organisation, do they believe they contribute to the margin at
the end of the fiscal year, are they well treated and how does that affect their satisfaction,
commitment and loyalty. All this will be critically examined in the research. . CRM which is
Customer relationship management is the values and strategies of relationship marketing-with
particular emphasis on customer relationships –turned into practical application [3] he also
explains relationship management as the infrastructure that enables the delineation of and
increases in customer value, and the correct means by which to motivate valuable customers
to remain loyal-indeed to patronize again.
6
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
1.2
RESEARCH SIGNIFICANCE
The relevance or significance of this research is to open up organisations to ideas that are
germane to good business development. Proper relationship or customer relationship
management could be the gap that needs to be filled to make them achieve the desired result
in the margin, that is not only the sharp cutting ideas and business goals that can improve the
profit margin and standpoint of an organisation. If properly managed, it could really go a long
way in boosting the morale and account of organisation practising it and their customers as
well. The research will be of immense benefit to organisations that can improve on their
relationship management and also to large corporations that are having dwindling fortunes
with some strategic improvement in their business orientation and ideas and implementing a
good CRM strategy and it will be of benefit too to customers that work with the organisations
and corporation implementing this.
1.3
AIMS AND OBJECTIVES
This research project, a piece of work which analyzes and evaluates the relevance of
relationship management in projects and its effect on margins. Project management being the
case study for this thesis, it has given the author the theorical knowledge about what is
obtainable in projects, the risk inherent and ways to minimize those risks and at the end of the
day give a reasonable margin back to stakeholders. Based on these, the aim is to use this
research to bring out answers to how organizations can increase their margin by focusing on
relationship management, the effects it has on focusing on short run analysis of profit in
projects to rationale behind retention and customer satisfaction as a tool of better increased
profit margin for projects in the long run. It will answer various perceptions and expectations
of values behind sales, purchasing and whole project management as well as customers in
evaluating the essence as well as the benefits of relationship management to organization who
keep them well. [1]
7
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
The following are the various objectives to be considered. The first two representing a
qualitative piece of work and the last a quantitative piece of work because of the differential
and inferential analysis involved.
1.
Customer perception of relationship management
2.
Organization perception of relationship management
3.
Differential analysis of customer and organizational perception. [3]
For an organization to be successful and make a meaningful impact through
relationship management, he needs to focus on three key issues which if properly
implemented will give an improved margin for the organization and a lot of good will among
their customers:

Operational – This must be included and made a part of organizational norms and
business procedures.

Analytical – This help to analyze customer behaviour and assists in implementing
business intelligence

Collaborative – This bridges the gap between customer and organization by phone, email, sms and fax. [1]
When these three key issues are worked on, it helps the organization in customer
acquisition and retention, helps in reducing customer service costs, and makes an efficient
customer relationship within the two parties. To show that proper relationship management
will improve interactions and business with customers but not only this but improved
customer service also. To show that when a good customer relationship management is done,
it helps to acquire more customers, manage the existing ones, improve on the value of the
customer to the organization, ascertain which customer to retain and the level of priority to be
given to each customer. [1]
8
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
2.
LITERATURE REVIEW
The aim of this chapter is to analyze and review literatures relevant to relationship
management as well as the various objectives of this research work through perceptions as
viewed by customers, its impact and effects on performances from the organizational
standpoint and its relative effect on projects. At the end of the chapter, the models are
combined into a conceptual framework and the relevance of this framework to the research is
also discussed.
It is imperative to understand that the most important thing any organization undertaking a
relationship management initiative must realize is that relationship management is a way of
life and a fundamental business philosophy. Therefore undertaking it means that an
organization is committed to best practices and a belief that the customer comes first because
they are what drive the engine or vehicle of revenue in organization. This will also serve as a
precursor to understanding the logical development of a relationship management culture in
the business world today and therefore help to analyze the effect it has and could have on
project management.
2.1
RELATIONSHIP MANAGEMENT
The term customer relationship management (CRM) gained widespread recognition in
the late 1990s.Various various researchers have shared views of application. It has attracted
such great attention because of the emphasis that it can give both the customer and
organization. For the organization, it is said that customer retention can enhance profitability,
it was suggested that there are benefits of lowered sales costs and increased revenues, which
are supported by the surveys done by [4]
Using the concept of relationship marketing (RM) as the basis, it is stressed that this
approach can create long-term value for customers. It explains that CRM is about
management of the lifetime value relationship with customers through the use of information
technology. “The relationship between rate of effective IT use and relationship effectiveness
would be positive” Nevertheless, technology is an enabler of the process required to turn
strategy into business results. The most significant part of CRM is human aspects- the longterm relationship between the customer and organization. [4]
9
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
According to research, “The drive for quality in products and services is apparent
worldwide and that the pursuit of customer satisfaction increasingly is becoming a corporate
goal”. Further, recent evidence suggests that quality management programs have had a
positive effect on the financial performance of organizations. This is the bases of relationship
management which according to [7] “CRM is the values and strategies of relationship
marketing-with particular emphasis on customer relationships turned into practical
application” also defines relationship management as “the infrastructure that enables the
delineation of and increases in customer value, and the correct means by which to motivate
valuable customers to remain loyal indeed, to patronize again” [3]
It is about more than simply managing customers and managing their behaviours. Customers’
relation’s management has the potential to change customer’s relationship with an
organization and increase revenues in bargain.
He also explained that the most forward thinking companies have recognized from
the past failures that CRM smacks of strategy, and thus technology alone can’t address high
profile issues such as new-customer acquisition and web based marketing. To these
organizations, CRM is much more than just a stand –alone project accounted for by a single
organization; it is a business philosophy that affects the organization at large. He also made us
to understand that there are not one but many visions for CRM success. CRM held a lot of
promise by helping organizations to get to know their customers well enough, understand
their values, their motives, which one to keep and which ones they are willing to lose and
why- and how not to overspend in the meantime. It means automating many of the business
processes and the accompanying analysis and saving precious time in bargain. In this analysis,
we are not dwelling on loosing any customer, no matter the level of importance or projects
they bring to an organization, they could be much more valuable in the referral market if they
are well managed and happy with the organization.
However keen, the discussions on CRM have been in fragments. There is no one generally
agreed approach. Different scholars have various points of view. However, this part of the
research work aims to give more in-depth insights into the concept of CRM and its perception
as well as expectations from both the organizational and customer point of view. [3]
10
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
2.2
Organizational Perception of Relationship Management
The management of long-term customer relationship, in industrial and organizational
markets should be the primary concern of marketing strategists. This requires the recognition
by managers that strategic advantage is achieved between mediums of relational interaction,
the management of the relationship cycle, rather than the product of life cycle. The
perceptions of an organization’s climate are linked to both employee satisfaction and
customer satisfaction and consequently to customer retention. Customer retention is being
increasingly viewed as an issue of strategic importance. There are several reasons for this.
First and perhaps most important, loyal customers are more profitable than newly acquired
customers. It has been suggested that as little as a five percent increase in customer retention
can increase profits by fifty percent or more. [11]
Secondly, retaining customer through close, long term, cooperative relationships can
impart a competitive advantage to the organization or supplier of service, which is
increasingly important given an ongoing trend of customers dramatically decreasing their
number of clients. Organizations who do not sustain strong relationship with their customer
base will often be the ones that are eliminated during this streamlining process. While
businesses agree that improving customer retention is important, customer still defect. One
reason is because little is known about why buyers leave suppliers. On the other hand, while
inter-firm relationship is important, the relationship between sales person and the buyer also
has strategic implications. Sales people typically represent a firm’s key interface with its
customer base, playing a critical role in the formation and maintenance of long-term buyerseller relationships through this interaction; sales people influence the customer’s perception
of the selling organization. Indeed, a customer may have greater loyalty to a sales person and
to the selling organization [7]
The high cost of sales people has already been noted, what is less often realized is
the high cost of other revenues allocated to sustaining customer relationships. In industrial
and organizational markets, buyers value personal contact and the availability of technical
advice, which reduces their perceived risks. The network of contacts between organizations is
11
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
often complex and can involve large numbers of people from different functions performing a
wide range of communication and exchange roles. Without a system to control customer
contact patters based on the strategic orientation of the organization and the potential
represented by the customer, there is no obvious danger that scarce resources are dissipated.
He also identified that whilst call frequency is often prescribed for sales and marketing staff,
rarely is such control exercised over technical, manufacturing, research and development staff
over senior general management. Some of the factors which influence the level of resource
allocation to a specific customer are under the control of the seller; others are the result of
environmental and competitive forces. The requirement is for sales and marketing managers
to identify these factors and take strategic decisions that allow key customers to be
appropriated direct appropriate levels of resources towards the defense of vital relationships.
[14]
A relationship management focused upon the analysis of individual customers in
this way will facilitate the integration of marketing and selling strategies, allowing decisions
to be made as to which customers have the potential to demand the attention of key account
managers, and which should be approached in less costly and perhaps more efficient ways. In
light of the relational development pattern suggested by here and the recommendations for
marketing and sales strategy integration suggested by the researcher, a fruitful area for
empirical observation may be the exploration of marketing and sales strategies throughout the
relational life cycle, which takes account of both the complexity of their inter-organizational
relationships and the nature and importance of intelligence gathering within that context. [9]
2.3
Customers Perception of Relationship Management
Valuing the customer has been a well-advocated concept since nearly half a century
ago .In the 1950s, some management gurus, gained high reputation for preaching the
paramount importance of customers. Yet, the irony is that CRM become aged. The rationale
towards customer relationship is as old as the merchant trade, focusing on the need of
customers. But the point is that this concept has to be changed.
Customers should no longer be treated as passive groups and assigned “to” some categories. It
is important to take the new concept and put it into action. Even though many companies
accept the new idea of treating customers as an active group, their practices are largely the
12
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
same when conducting businesses. The old problems towards customer relationship can be
found in today’s implementation of CRM. [6]
The key point is that CRM should be started from taking customers as an active
group. As pointed out earlier, only a few researchers have looked from Customers viewpoint
and hear customers’ voices to conduct their studies. Customers determine what is important.
Those factors that are important in influencing customers to buy must be the basic agenda.
This is what recruiting and retaining customers is all about. Strategy is not about beating the
competition but in serving customers better than the competition. However, selecting which
customers to serve is the starting point of business strategy while, matching customers’
capabilities to customers needs is the essence of good strategy.
2.3.1
Customers Satisfaction and its effect on commitment.
As earlier mentioned, customer satisfaction with sales person or project manager
and customer commitment to the sales person or organization are both important to the on
going maintenance of an employee-employer relationship and a buyer-seller relationship.
Given the importance of these variables, it is noteworthy that relationship-marketing studies
have not examined the simultaneous effects of customer satisfaction with the sales person and
customer commitment to the sales person. While employee turnover and organizational
behavior researchers believe that satisfaction and commitment are important in reducing
turnover, there is no consensus regarding the casualty of satisfaction and commitment. There
are basically three theoretical perspectives regarding the relationship of these constructs. The
first perspective (Perspective one) maintains that satisfaction leads to commitment. This is
empirically supported in both the organizational turnover [15] and the sales force turnover
literature. A meta-analysis in the sales literature concluded that the primary casual sequencing
is from satisfaction to commitment, not from commitment to satisfaction [16]
Another perspective (Perspective two) holds that commitment leads to satisfaction.
Some empirical studies have found support for this new [12] while others have not [16].
The final perspective (perspective three) implies no particular casualty between satisfaction
and commitment. This perspective was tested in a personal selling setting. He hypothesized a
13
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
non-recursive relationship between satisfaction and organizational commitment. However, he
found the best fitting structural model was one in which job satisfaction had a direct effect on
organizational commitment. The relationship was also supported by another researcher and.
Thus, existing empirical result that satisfaction leads to commitment. [11]
The lack of agreement regarding the casual sequencing of satisfaction and
commitment makes model development different. However, according to empirical research
in both marketing and organizational behavior, literature provides for more support for the
first perspective, which suggests that satisfaction is an antecedent to commitment. Therefore,
we assume “Buyer satisfaction with the sales person will be positively related to the buyers’
commitment to the sales person.” [15]
2.4 Differential Analysis of Customer and Organisational Perception
The customer not the organization is the business. The major focus of CRM is customer, yet
this approach only concern the ways of companies to manage customer relationships and
many of today’s organization structures do not reflect this, especially in their dealings with
customers. Customer’s priorities often differ significantly from what managers think they are.
It is believed that the longer a business has been in existence, the more likely it has lost sight
of what is important to the customer. Meeting a customer’s expectation through service
reliability is a vital element in providing service excellence. Reliability is the most important
factor in service as perceived by customers, but some managers do not perceive it. It is
believed that service reliability is the heart of service market excellence. [8]
2.4.1 Commitment –Satisfaction- Defection. Intention Interrelationships
As with the relationship between satisfaction and commitment, there is no consensus
regarding the casualty of these two constructs and defection intentions. With the help of the
three perspectives for guidance, the first perspective maintains that commitment has a direct
influence on intention to leave, whereas satisfaction has an indirect effect. This view is
empirically supported in both the organizational turnover literature [15] and the sales force
turnover. [17]
The second perspective holds that the effect of satisfaction on intention to leave is
direct, whereas, the effect of commitment in indirect. Some empirical studies found support
14
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
for this view [12] while others have not [16] the third perspective maintains that both
satisfaction and commitment contribute uniquely to intention to leave. Some empirical
support has been found for this perspective. It appears that there is considerable evidence that
commitment leads directly to intention to leave relationship. However, there is conflicting
evidence about whether satisfaction has a direct or indirect effect [16]
Given the absence of consensus in the employee turnover literature, we looked at the
relationship marketing literature for guidance. We found that commitment to the relationship
had a direct and negative effect on the customer’s intention to leave the relationship.
However, satisfaction was not examined in their model. Some research indicates that longterm customer satisfaction captures information about expectations of leaving the relationship.
Additionally, satisfaction has been found to be negatively associated with customer intentions
to defect. [17]
However, none of these studies examined the role of commitment. Consequently,
they concluded that there is a sufficient theoretical grounding to hypothesize direct, negative
paths from both satisfaction and commitment to defection intentions. Therefore, the following
hypothesis was offered: Buyer satisfaction with the sales person will be negatively related to
the defection intentions. Also, buyer’s commitment to the sales person will be negatively
related to buyers’ defection intentions.
2.4.2 CRM in Project Management
The project management profession is an emerging profession but it has been in existence
since time immemorial but the profession itself is an embodiment of all activities we do every
day. Everyday projects are managed, either for someone or for ourselves. The analysis here is,
if as an individual and we are managing our projects, the project depends on what we are
doing, either building a house, buying a car, supplying some products or distributing goods or
we are rendering services, how well we manage the projects. Financial institutions manage
projects on behalf on their customers or for themselves from time to time, every successful
planned work of man is a result of good project management and it does not exist on his own,
it exists with people who are stakeholders and partners in the particular enterprise or project
we are referring to here. We are not going to be particular about the magnitude or the extent
15
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
of the projects being managed but how good relationship management affects the overall
result is what we are trying to justify or propound for in this thesis.
Service markets have undergone major transformation in recent years likewise the
project management profession. With the introduction of new technology, among others, the
business environment has become more competitive and complicated. Many service providers
or organizations have implemented or improved their policies in order to strengthen their
relationships with customers. This is one reason why the subject matter is picked up for
analysis. There could be an improvement in organizations using cut back systems and various
economic indices to increase their margin but Customer is actually an asset if properly
managed and this will reflect positively on projects margin in the short run and organizational
balance sheet at the end of business year. In addition, the vast majority of business spending is
made by more complex categories of service. It is therefore worthwhile to take a closer look
at service industry which according to [3] are organizations established to attract and retain
customers through service.
The leadership qualities of an organization have also been as a result of the
changing nature of its approach to relationship management, which has graduated, from the
old to the new form of customer relationship management. The era of B2B which involves
dealing with customer relationship passively to a new perspective of C2B that involves
dealing with high value customer-managed relationship (dealing with customers actively). In
this system of relationship management, the customer is the starting point of relationship
development not the organization. Here, customers are king and customers take control of
relationship development while the organizations targets and concentrates on high valued
customers.
The pattern of relationship, which is in existence are many, one-to-one and became
a one network one or customer network organization. The first “one” is a customer. The word
“Network” meaning that the customer deals with a lot of suppliers whereas and the
organization needs to handle numerous relationships with their customers. [13]
The strategies of management approach in the old perspective was that of enterprise approach
with customer modification and customer differential treatments while that of the new
perspective is cooperative approach which means that existing profitable customers are vital.
This allows organizations to work hand in hand with the customer to develop an ongoing
relationship. In essence, this policy also allows organization to differentiate the profitable
16
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
groups of customers from the unprofitable ones. The corporate resources can be redirected
from the lesser value customers to group with high long-term value whereas in the past, most
organizations made service improvements on a flat basis. For example, the old system in
which managers holds no much importance or significance to how a customer responds to
services rendered or project done for them, it is of much importance now because
organizations are getting to realize how bad talk could result to dwindling fortune for an
organization that does not treat his customers well.
Organizations now provides customers with quality service with in-depth customer
management policies like quick response to complaints, better and quality project delivery
within delivery time, better claim management which in the end makes the customer happier
with the team or the organization at large thereby creating a high long-term value and
relationship. Organizations need to spend more time to understand their customers need. The
resources allocated to these customers are better enhanced to give better returns through the
customers’ involvement with the organization.
CRM application is not just focusing one-to-one relationships but also the linkages to other
parties that are involved in the project and basically the whole clientele base of the
organizational under a well-structured relationship management structure. In addition, the
linkages of customers to customers too are significant. It is pertinent to understand that when
customers are satisfied with projects handled for them, they will be glad to see the
organization move forward and join any kind of Customer forum or meeting the organization
is having. The platform of customer community can be used as a channel for strengthening
their relationships with the organizations and also for improving the services.
The focus needs to switch back to relationships with customers. It is critical to
remember that most of the customers do not forget how well they are treated on a particular
project or business transaction you had with them and your continued relationship after the
end of the project. It is a good way for organizations to have a way for feedback and also crate
a co-creative environment, which allows customers to involve more and provide useful
suggestions to how the organizations can improve on areas they need to improve on. If
customers are treated well and they leave the organization satisfied, the cost of doing business
can be reduced and customer loyalty can be enhanced. [9] Customers are part of the
organization and their support is indispensable for the organization’s future development and
sustainable growth.
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Finally, the key concept in CRM can be fully implemented in the organizational
norms, customers are the starting points and an organization needs to deal with them with a
differential manner because they are assets and an assets that is not properly managed will be
utilized in a bad way which will make it lose its value and depreciate too fast.
2.5
Conceptual Framework
“Either graphically or in a narrative form, there are things to be studied to make a good
relationship management framework.”
They also talk about the structure of research being formulated as a conceptual framework
either that describes in narrative but often in graphical format, the key factors, constructs and
variables being studied and the presumed relationship between them. Of course, whether this
relationship exists is one of the elements of the study. They conceive of this conceptual
framework as a series of intellectual `bins` containing key events and behaviors.
Therefore the framework of this dissertation, will concentrate on two models of relationship
management which is commitment and satisfaction and these models will be viewed from the
organizational and the customer’s perceptions as well as the existing relationship between the
two [13]
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Customer Perception
Of CRM
Organizations perception
of CRM
Customer Satisfaction
CRM policies &Strategies
Customer commitment
to organisation
Review
Customer Retention
Uptake of service
19
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Department of Computer Science and Electronics
2.6
Analysis Link
This conceptual framework tends to analyze the customers and organizational perception of
relationship management as well as the differential analysis of both. It aims to analyze the
relationship between the three objectives of this research work
The first objective as shown in the conceptual framework is the customer’s
perception of CRM. Perception from this point of view aims at analyzing the measure of
satisfaction customer derives from the gains of relationship management.
Customer commitment to the organization is achieved through satisfaction gained from the
CRM motive. When a customer is committed to the organization, the customer is
automatically retained by the organization.
The second objective as shown in the conceptual framework is the organizational
perception of CRM. Organizations need strategies and strategies are backed by policies,
necessary to run the organization. The aim of this policies and strategies is to gain customers
commitment to the organization, through satisfaction with the project handled by the
organization and this also led to customer retention. Organizations policies are reviewed from
time to time in a competitive and changing environment to facilitate services rendered by the
organization thereby acquire new customers as well as retain the old ones while identifying
the various stakeholders who will be involved in the uptake of the services they rendered.
The last objective is the differential analysis of customer and organizational
perception of relationship management. This has to do with how this measurement is done.
From the customer point of view, it is quantitative approach because it will involve numerical
analysis of data aimed at determining customer perception. From the organizational point of
view, it is qualitative approach because strategy and policy formulation involves an array of
techniques which seek to describe, decode, translate and otherwise come to terms with the
meaning not the frequency of certain more or less naturally occurring phenomena aimed at
enhancing customer satisfaction to the organization, commitment and therefore retention.
To really sum this all up and buttress the main theme of this research work, all the
three objectives are designed from customer satisfaction and when a customer is satisfied with
our project, organization, they will be willing to stay on with us as partner in progress which
will lead to retention and being committed to us. We operate in a varying markets where you
never know where the next project might emanate from or next business could come from, but
20
Adaran Ayodotun Olukunle
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Department of Computer Science and Electronics
the concept of CRM is not an exercise in futility, it is aimed at something, it is aimed at
gearing up the profit margin organizations have and improve on project margins. It is not by
satisfying them that brings the improved margin, but the overall effect of their continued
patronage, referral and more businesses because we handled a project well the last time.
21
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Department of Computer Science and Electronics
3.1
Research Methodology
This part of the research studies and identifies the various methods used to guide
this research work. The essence is to throw more light on the understanding and application of
management research philosophy, the study of relationship management. Methodology can be
described as a system of explicit rules and procedures upon which research is based and
against which claims of knowledge are evaluated. Methodology is important because it
provides a sense of direction for the author to complete framework as well as the methods
used. It also provides a guideline to research and gives focus and answer to the objectives.
[29]
The following two paradigms, phenomenology and positivism will be considered in this part
of the work. The research methods used (qualitative and quantitative) through secondary and
primary data will also be assessed, as well as there benefits and drawbacks summarized.
Triangulation, which is the rationale for using a multiple sources of evidence, will be assessed
including the validity and reliability tests of data. [29]
3.2
POSITIVISM
Social science understood here, as the study of human society in the wildest sense, is
a rich source of research problems. This important and sometimes controversial, branch of
science was first defined by [30] and named by Auguste Comte, the nineteenth century French
philosopher. Comte maintained, “Society could be analyzed empirically just like other
subjects of scientific enquiry and social laws and theories could be on the basis of psychology
and biology”. He based his approach on the belief that all genuine knowledge is based on
information gained by experience through the senses, and can only be developed through
further observation and experiment. He turned his back on pure reason, seeing it as a means of
speculation and metaphysical exploration.
Hence, the positivist social scientist believes that the methodological procedures of
natural science may appropriately be applied to social services and its results can be expressed
as laws or empirical generalizations similar to those developed for the natural sciences. Social
scientists can thereby achieve a clear, well-founded analysis and interpretation of social
phenomena, based on testable and verifiable data. [30]
22
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Durkheim is famous for his enquiries into the division of labour, suicide, religion
and education, as well as for his philosophical discussions on the nature of sociology. Unlike
Marx, who tended to define the moral and social aspects of humanity in terms of material
forces, Durkheim argued that society develops its own system of phenomena that produce
collectively shared norms and beliefs. These social facts as he called them, e.g. economic
organizations, laws, customs, criminality etc, exist in their own right, are external to us and
are resistant to our will as constrain and behaviour.
“The task of the sociologist…. Is to describe the essential characteristics of social facts,
demonstrate how they come into being, enter into relationship with one another act on each
other and function together to form social wholes” [19]
In order to do this, the social scientist must reject all popular conceptions of the
processes in society and look at the social world as if for the first time. Having “Delivered”
and defined social facts using scientific observation techniques, the social scientist should
seek their causes amongst other social facts rather than in other social domains such as
biology or psychology. But thus maintaining sociology as an autonomous discipline, the
social scientist may use the knowledge gained to understand the origins of and possibly
suggest the cures, various forms of social ills.
In summary, this approach looks at the society as the focus of research and through
understanding its internal laws and establishing relevant facts, we can then understand how
and why individuals behave as they do. However, not all philosophers agreed that human
society was amenable to such a disembodied analysis.
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3.2.1
Advantages of Positivism: [23]
1.
Easily comparable data
2.
Economical collection of large amount of data
3.
Greater opportunity for researchers to retain control of research process
4.
Clear theoretical focus.
3.2.2
Disadvantages of Positivism: [23]
1.
Inflexible-direction often cannot be changed once data collected has started
2.
Weak at understanding social factors
3. Often does not discover the meaning people attach to social phenomena.
3.3
PHENOMENOLOGY
The phenomenology approach to research is so called because it is based on the way
people experience social phenomena in the world in which we live. It can be contrasted with
the positivist approach which treats the social world in the way it would be approached by the
natural scientist, something with which the phenomenologist would feel uncomfortable.
Phenomenology is characterized by a focus on the meanings that research subjects attach to
social phenomena; an attempt by the researcher to understand what is happening and why it is
happening. [18] Such research would be particularly concerned with the context in which
such events were taking place. Therefore, the study of a small sample of subjects may be
more appropriate than a large number as with the positivist. Researchers in this tradition are
more likely to work with qualitative data and use a variety of methods to collect this data in
order to establish different views of phenomena [18]
The essence and the importance of this research project as suggested was and given
three reasons by him. Firstly, it enables you to make a more informed decision about your
research design, which is more than simply the methods by which data are collected and
analyzed. It is the overall configuration of a piece of research: what kind of evidence is
gathered and from where were the evidences and how such evidences is interpreted in order to
provide good answers to the basic research questions. Secondly, it will help to think about
those research approaches that would work for you and crucially, those that will not. For
24
Adaran Ayodotun Olukunle
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Department of Computer Science and Electronics
example, if you are particularly interested in understanding why something is happening
rather than being able to describe what is happening, it may be more appropriate to adopt the
phenomenological approach than the positivist. Thirdly, knowledge of the different research
traditions enables you to adapt your research designs to cater for the constraints. These may
be practical, involving, say, limited access to data. Or they may arise from lack of prior
knowledge of the subject. [18]
In this research project, the researcher intends to adopt the positivist and the
phenomelogical forms of philosophical approach because while the phenomelogical approach
is interpretive, customer perception of satisfaction can be achieved. The positivist philosophy
will be used to measure customer’s commitment to organizations.
The following are the advantages and disadvantages of phenomenology.
3.3.1
1.
Facilitates understanding of how and why.
2.
Aids researchers to be alive to changes that occur during research process.
3.
Good at understanding social processes.
3.3.2
3.4
Advantages of Phenomenology: [24]
Disadvantages of Phenomenology: [23]
1.
Data collection can be time consuming.
2.
Data analysis is difficult.
3.
Researcher has to live with the uncertainty that clears patterns may not emerge.
4.
Generally perceived as less credible by non-researchers.
Quantitative and Qualitative Research.
The type of data found depends largely on the type of data wanted as well as methods used to
collect them. The proceeding discussion about data emphasized the need for a clear definition
of the research objectives and a clear definition of the conditions and admissibility of data.
The type of data collected partly determines the methods used to analyze them in order to
develop an answer to the research problem. However, it is also the type of research approach
25
Adaran Ayodotun Olukunle
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adopted that determines the nature of the data considered to be of value. The two major
research approaches are thus labeled qualitative and quantitative.
Quantitative and qualitative research are said to be two diametrically opposed research
approaches. They differ not only in data sought, and the subsequent methods of data analysis,
but also in their philosophical rationale.
3.5
Quantitative Research.
This describes, explains and tests relationships. It emphasizes on the examination
of cause and effect relationships. The basic feature of quantitative methods is that it always
generates numerical data. The data collected is analyzed in simple mathematical terms
involving the production of tables, charts and diagrams. [26] According to [27] the use of
quantitative data in research has its attractions: it carries with an aura of scientific
respectability because it uses numbers, presents findings in the form of graphs or tables and
conveys a sense of solidity. Only one of the key features of quantitative research is the
precision with which research designs are established at the outset of the study.
3.5.1
Advantages of Quantitative Research:
1.
The interpretation of measurements is based on measured quantities.
2.
Presentations are well organized with tables and charts in order to communicate the
findings with others.
3.
Analyzes are instant, and results can be quickly interrogated by researchers.
4.
Confidence-credibility in terms of interpretations.
3.5.2
Disadvantages of Quantitative Research:
1.
Data overload-analysis can be complex and researcher can get swamped.
2.
Technicist can have overbearing concern with technical aspects of analysis.
3.
Quality of data only as good as the method used to collect them.
4.
False promise can achieve data fix with manipulation to show significance levels
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Department of Computer Science and Electronics
3.6
Qualitative Research
According to Van Mannen [28] qualitative research can be described as “an
array of techniques which seek to describe, decode translate and otherwise come to terms with
the meaning, not the frequency of certain more or less naturally occurring phenomena in the
social world.” It is the descriptive numerical way to collect and interpret information. Even
though some of the methods used, such as interview or focus groups, are used in quantitative
research, the difference is that qualitative research involves the use of non-mathematical
procedures when interpreting and explaining the data [26]
3.6.1
Advantages of Qualitative Research
1. Data and analysis are grounded and reality based.
2. Tolerance of ambiguity and contradiction, acknowledges social existence.
3. Richness and detail of data in-depth and focused towards small-scale research.
4. Prospect of alternative explanation, draws on skill sample.
3.6.2 Disadvantages of Qualitative Research
1. Data may be unrepresentative, due to small sample.
2. There is a possibility of de-contextualing the meaning, if interpretation taken out of
context.
3.
Interpretation is bound up with the “self” of the researcher, findings more cautious
and tentative
4. There is danger of oversimplifying the explanation.
3.7
Characteristics of Quantitative and Qualitative Research
Quantitative research is typically taken to be exemplified by the social survey and
by experimental investigations. Qualitative research tends to be associated with participant
observation and unstructured, in-depth interviewing. [22]
Until the mid 1970s the tendency was to associate valid research almost exclusively with
scientific method, and with the collection and analysis of measurable data, the attributes of
27
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quantitative: “To do any research, we must be able to measure the concepts we wish to study
[25]
Qualitative approaches were given scant attention because of their inability to
conform to the condition demanded of scientific method, and tend to be regarded as rather
marginal in the researcher’s repertoire of data collection techniques. There was a clear
distinction between quantitative and qualitative research and the merits of qualitative and the
results of qualitative analysis were regarded as limited, unreliable and lacking in solidity. This
judgment relied principally on judgment on the technical adequacy of the techniques used.
It was particularly in the field of sociology, with its focus of research on the
complexities of people and the society they live in, that the appropriateness of scientific
method, developed for the study of natural sciences, was questioned. Research methods were
required which could reveal and investigate the unique complexities and ambiguities of
human subjects and their interaction in society without imposing on them an inappropriate
conceptual framework.
“Increasingly, the terms `Quantitative research ´ and `Qualitative Research´ came to signify
much more than ways of gathering data; they came to denote divergent assumptions about the
nature and purposes of research in the social sciences” [22]
Qualitative research develops significantly differences in its assumptions and
principles from those of quantitative research. This inevitably resulted in the two approaches
from those of quantitative research. This inevitably resulted in two approaches tending to
operate with divergent tenets about the nature of knowledge, particularly that of the social
world and about how knowledge could legitimately be produced. Intellectual positions in
qualitative research evolved, the main ones being phenomenology, symbolic interactionism,
Max Weber’s idea of vestehen, naturalism and ethogenics.
These all stress the importance of contextual and holistic understanding with an emphasis on
description, and a commitment to seeing through the eyes of the people being studied. The
fear that researcher may fail to do justice to the subject’s orientation to the world led to the
tendency for conceptual and theorical reasoning to be left aside, or used only in the final
stages of the research enterprise.
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[22] Presented a useful comparison of a contrasting feature of quantitative and qualitative
research. Whilst qualitative research is used to construe the attitudes, beliefs and motivations
within a subject, it can also perform a preparatory role in quantitative research. The researcher
doing a qualitative research will attempt to obtain an inside view of the phenomenon, getting
as close as possible to the subject of research in order to collect resonant, fertile data to enable
the development of a social construct through the dynamic process of research. The
quantitative researcher, on the other hand chooses to remain distant as an outsider, collecting
hard and reliable data, as reality is considered to be exoteric and static. The qualitative
approach tends to be unstructured, allowing concepts and theories to emerge, while the
quantitative approach begins with concepts and theories and test them in a rigorous, structured
fashion with the result that they are supported amended or rejected.
“This research project will contain elements of both quantitative and qualitative researches
because while customer perception of relationship management through customer
satisfaction, customer commitment to organization as well as the number of customer
retained by organization can be measured by quantitative research method,, organizational
perception of relationship management through constant review of policies and strategies
adopted can be measured by qualitative research. This will help to achieve the objective of
the research methodology adopted for this research.
3.8
Research Methods
An essential ingredient of this dissertation is to show the range of the research
method available to the researcher, to describe the nature of the different research methods
used for collecting qualitative and quantitative data and to indicate the appropriate methods
necessary for the researcher’s analysis in line with this empirical piece of work. Therefore the
following are the various research methods necessary and possibly relevant for this piece of
work.
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Department of Computer Science and Electronics
3.8.1
Questionnaires
Self-Administered interview have over the past century become a common method
of gathering information. [20] Adopts a definition of [31] as a “ general term to include all
terms of data collection in which each person is asked to respond to the same set of questions
in a predetermined order” Questionnaires can therefore be used for descriptive or explanatory
research. Descriptive research such as that undertaken using attitude and opinion
questionnaires and questionnaires on organizational practices will enable you to identify and
describe the variability in different phenomena. In contrast explanatory or analytical research
will enable you to examine and explain relationships between two variables in particular
cause and effect relationships. These two purposes have different research design
requirements [21]. The design of questionnaires differs according to how it is administered, in
particular, that amount of contacts you have with the respondents. The respondents usually
complete self –administered questionnaires. Such questionnaires are either posted to
respondents who return them by post or e-mail after completion or deliver by hand to each
respondent and collected later (delivery and collected questionnaires)
In dissertation, Self administered questionnaires will be adopted. The aim is to get customer’s
view on relationship management of an organization as well as measure their level of
satisfaction with the services rendered by the organization. The first objective of this research
is therefore achieved. The advantages and disadvantages of self-administered questionnaires
are as follows:
3.8.1.1 Advantages
1.
They provide a relatively simple and straightforward approach to the study of
attitudes, values, beliefs and motives.
2.
They may be adapted top collect generalizable information from almost from
human population.
3.
High amounts of data standardization.
4.
Often this is the only, or the easiest way of retrieving information the past history
of a large set of people.
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5.
They can be extremely efficient at providing large amounts of data, at a relatively
low cost, in a short period of time.
6.
They allow anonymity, which can encourage frankness when sensitive areas are
involved.
3.8.1.2
1.
Disadvantages
Data are affected by the characteristics of the respondents (e.g. their memory;
Knowledge; experience; motivation; and personality.
2.
Respondents won’t necessarily report their beliefs, attitudes etc, accurately (people
Responding in a way that shows them in good light).
3. Typically have a low response rate.
4.
Ambiguities in, and misunderstanding of the survey questions may not be detected.
5.
Respondents may not treat the exercise seriously, and you may not be able to
detect this.
However, it is noteworthy that advantages 5 and 5 may be disadvantages if they seduce the
researcher into using this when it may not be the most appropriate strategy to answer the
research question(s). [35]
3.8.1.3
Piloting the Questionnaire
According to [24] research instruments such as interview schedules can be modified if
certain questions appear to be ineffective, but questionnaires, particularly if used for large
surveys, are a ‘one-short’ attempt at data gathering .It is therefore essential that they are
accurate, unambiguous and simple to complete.
[36] as well as [37] explained that piloting is very essential before carrying out the
actual survey. This is because piloting is a way of filtering out the unwanted and misleading
materials from the raw questionnaire and to refined and purifies it. This makes the survey
more effective and data collected through it more valid and reliable. [38] Suggests that the
pilot sample may be roughly representative of the actual sample being targeted. If it is
difficult to get even a small sample size, the questionnaire may be piloted upon whichever
respondents are available. This means that the piloting can even be done on one’s colleagues,
friends or relatives.
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In this regard, [39] stresses that in a social research study (such as the present study),
however short of time the research may be and however scarce his resources, there is need to
find time to carry out a pilot test before administering the actual survey.
3.8.2 Structured Interview
A structured interview (sometimes known as interview schedules) refers to those
questionnaires where interviewers physically meet the respondents and ask the questions face
to face. These differ from semi-structured and in-depth interviews as there is a defined
schedule of questioned from which the interviewers should not deviate. It involves tight
control over the format of the questions and answers. In essence, the structured interview is
like a questionnaire, which is administered face to face with a respondent. The researcher has
a predetermined list of questions, to which the respondents is invited to offer limited option
responses. The tight control over wording of questions occurs and the ranges of answers that
are on offer have the advantage of ‘standardization’. Each respondent is faced with identical
questions and the range of pre-coded interview, in this respect, lends itself to the collection of
the qualitative data.
Structured interviews are often associated with social surveys where researchers are trying to
collect large volumes of data from a wide range of the respondents.. Here, we are witnessing
replacement of interviews armed with clipboards and paper questionnaires with interviews
using laptops computers to input information direct into a suitable software program. Such
computer assisted personal interviewing has an advantage of using software with built in
checks to eliminate errors in the collection of data. And it allows quick analysis of data. This
is better suitable for large budgets, large number surveys than to small scale research because
it is cost effective caused by the purchase of laptop computers.
3.8.3.
Semi- structured Interviews
[24] explained that semi structured interviews are non-standardized, are often used in
qualitative analysis. The interviewer has a list of issues and questions to be covered, but may
not deal with all of them in each interview. The order of questions may also change depending
on the direction the interviewer takes. Indeed, additional questions may be asked, including
32
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some which are not anticipated at the start of the interview, as new issues arise. Responses
will be documented by note taking or possibly by tape-recording the interview. The semistructured interviews allows for probing of views and opinions where it is desirable for
respondents to expand on their answers. This is vital when a phenomenological approach is
being taken where the objective is to explore subjective meanings that respondents ascribe to
concepts or events. Such probing may also allow for the diversion of the interview into new
pathways that, while not originally considered as part of the interview, helps towards the
meeting research objectives.
In this dissertation, semi-structured interviews will be adopted. The question line would be
directed to the organizational-structured interviews will be adopted. The question line would
be directed to the organizational perception and it will be aimed at clarifying the second
objective and understanding the policies and strategies adopted by the bank as well as the
various reviews and the reasons behind the policy reviews aimed at customer retention.
3.8.4
Unstructured Interviews
Unstructured interviews go further in the extent to which emphasis is placed on the
interviewers thoughts. The researcher’s role is to be as unobtrusive as possible to start the ball
rolling by introducing a theme or topic and then letting the interviewee develop his or her
ideas and pursue his or her train of thoughts. Unstructured like semi-interviews are on a
continuum and in practice, it is likely that ant interview will slide back and forth along the
scale. What they have in common, and what separates them from structured interviews is their
willingness to allow interviewees to use their own words and develop their own thoughts.
Allowing interviewees to ‘speak their mind’ is a better way of discovering things about
complex issues and generally semi structure and unstructured interviews have as their aim
‘discovery’ rather than ‘checking’. They lend themselves to in-depth investigations,
particularly those that explore personal accounts of experiences and feelings.
33
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3.9
Characteristics of Structured, Semi-structured and Unstructured Interviews.
Structured
Semi Structured
Unstructured (Non directive, focused and
Information conversation
Quick to data
Slow and time consuming
Capture
data capture and analyze
Use of Random
As for semi-structured
The longer the interview, the
Opportunity and snowball sampling
more advisable it is to use
often used. In organizations,
random sampling.
targeting of key informants.
Interview schedule Interview refers to a guide
Interviewer uses aide-memoire of topic
Followed exactly
for discussion and improvises.
containing mixture of open and
closed questions interviewer
Improvises using own judgment.
Interviewer led
Sometimes interviewer-led
Non directive interview
sometimes informant-led
Easy to analyze
Quantitative part easy to analyze
Tends to positivitists
Mixture of positivists
View of knowledge
and non-positivist.
Respondent’s
Harder to ensure
anonymity
anonymity.
Usually hard to analyze
Non positivist view of knowledge
Researcher tends to know the informant.
easily guaranteed.
Table: 3.1 Sources: Adapted from [40] Cited in [24]
34
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Department of Computer Science and Electronics
3.10
Secondary Data
Secondary data includes qualitative and quantitative data. This data may be raw or compiled.
This type of data is mostly used in case study type of research, where a particular organization
is being examined. [20] Describes three types of secondary data:
3.10.1 Documentary Secondary Data:
This includes written documents like letters, memos, reports and invoices and also includes
books magazines articles, Internets etc. Documentary data can be analyzed quantitatively as
well as qualitatively.
In this dissertation, documentary secondary data will not be fully used since a particular
organization is not being examined but it will used on the questionnaire given out to a
particular organization to understand how their relationship management strategies and
policies has being able to affect the objective of this thesis which is customer relationship
management with a view to satisfaction, commitment and retention and its aggregate effect
on margin.
The problem with this data is that it requires high levels of access inside the organization
under research if we are using a case study. Unless access is available, this data can’t be
obtained. The following are the other types of secondary data:
3.10.2
Survey Secondary Data:
This includes the information from the surveys that might have been carried out specifically
for the organization under research. This data might be used to contextualize a case study
approach [41]
This will further aid the author to get information’s regarding the exact analysis on the
objective that prompted the study.
35
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
The problem here is that the date of the publication may be a few years after the surveys were
done. Also it is not possible that all the required information is obtained from only one
survey.
3.10.3 Multiple Source Secondary Data:
This data exists where different sets have been combined to form another big data set before
the user uses it. A very good example is the MINTEL Industry reports which gives
information about the retail and supermarkets industry in which the organization under
research falls [41]
3.10.3.1 Advantages of Secondary data [32]
1.
The data was already collected without the need to fund and manage its collection.
2.
The data is speedy and unobtrusive, as experienced in this research study.
3.
Secondary data can help the author to overcome time constraints and add historical
depth to this research.
4.
It provides comparative and contextual data for the research.
5.
Re-analyzing secondary data can result to unforeseen discoveries or unexpected
new discoveries.
3.10.3.2
3.11
Disadvantages of Secondary data: [32]
1.
Some of the data collected was incongruent to the research objectives.
2.
Some of the data was useless and inappropriate to the research.
3.
Sometimes the access may be difficult or costly.
4.
There was no control over the quality of the data obtained.
5.
Aggregations and definitions may be unsuitable.
Triangulation
Triangulation of research data refers to the method of checking its validity by approaching the
research question from as many different angles as possible and employing redundancy in
data collection. [42]
36
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
The word triangulation emanates from navigational practice where a number of reference
points can be used to locate an exact position [45]. The principle is that if different research
approaches lead to the same conclusions, our faith in the validity of those conclusions is
increased. [35]
Triangulation is a valuable and widely used strategy. [42] has distinguished four types of
triangulation.
Data Triangulation: The use of more than one method of data collection (e.g.) Observation,
interviews, documents.
Observe triangulation: Using more than one observer in the study.
Methodological triangulation: Combining quantitative and qualitative approaches.
Theory triangulation: Using multiple theories or perspective.
To obtain triangulation, two or more methods are going to be adopted in this research: Semistructured interview, questionnaires.
Advantages of Multi method research [34]
-
Deviant or off-quadrant dimensions of a problem may be uncovered,
leading to enriched explanation of the research problem.
-
Synthesis or integration of theories is facilitated.
-
Triangulation may serve as the critical test, by reason of its
competitiveness, for completing theories. [34]
The methods used in this dissertation are synthesized into one research methodology and they
will be used to collect data for each objective. To this extent, triangulation would have been
achieved.
37
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
3.12
Validity and Reliability
Validity can be said to be the extent to which the research findings accurately represent the
situation. In this dissertation, the methods used are identified with either of the qualitative and
the quantitative approach; hence validity of this research is context specific and cannot be
based on general phenomenon [44] It should also be feasible that the quality of design can be
judged through logical testing. Reducing the possibility of getting the answer wrong, more
attention should be paid to particular emphases on research design: reliability and validity
[33]
Validity is concerned with whether the findings are “real” what they appear to be about. What
do we mean by claiming that a piece of qualitative research is valid? This in effect has to do
with it being accurate, or correct or true.
Reliability is the consistency or the stability of a measure, such as, if it were to be repeated,
would the same result be obtained? [35] It is concerned with the findings of the research and
is one aspect of the credibility of the findings of the research and is one aspect of the
credibility of the findings [44]
3.12.1
Threats to Validity in Flexible designs
Description: The main threat to providing a valid description of what you have seen or heard
lies in the inaccuracy or incompleteness of the data. This suggests that audio or videotaping
should be carried out wherever feasible.
Interpretation: The main threat to providing a valid interpretation is that of imposing a
framework or meaning on what is happening rather than this occurring or emerging from what
you learn during your involvement with the setting.
Theory: The main threat is in not considering alternative explanations or understanding of the
phenomena you are studying. This can be countered by actively seeking data, which are not
consonant with your theory [35]
38
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
3.12.2
Threats to reliability
According to [35] there are four threats to reliability. The first is subject to error. That means
that the questionnaires completed will be totally different at different times. The second, three
maybe subject bias. This is a particular problem in organizations, which are characterized by
an authoritarian management style. Third, there may be observer error, and finally there may
be observer bias. [33]
There are several ways to test the reliability of research; such as demonstrating that you have
the detailed evidence available (for example, taped interview, transcripts and coding) and that
you have analyzed that in a systematic way that others could repeat is a key reliability test.
[43]
3.13
Methods Applied
To find out the perception of customers and organization to relationship management in
organizations, it is possible to observe how they really felt through mapping and analyzing
their customer satisfaction, commitment and therefore retention. In this dissertation,
questionnaires, semi structured interviews and perhaps secondary data shall be used to
triangulate the result. The literature on relationship management provided the basis for
developing a questionnaire for this study. The questionnaires were based on the sample
indicators of preceptors. [46] and information a sampled organization.
3.13.1
Questionnaire Design
The questionnaire was divided into three sections:
A.
Questions about customer satisfaction in organization.
B.
Question about customer commitment in organization.
C.
Questions about customer retention.
39
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
In section A, the respondents were requested to answer first if they were customer of the
organization and why they choose the organization. They were asked if they were satisfied
with their relationship managers. Respondents indicated the level of importance of statements
with responses that ranged from [1] Very low satisfaction to [5] Very high satisfaction for
relationship management by answering the questions. Secondly, the respondents were
requested to assess if they are committed to the management of the organization, the answers
were also given on a five point scale that stretched from likely [1] to very likely [5]. In this
section C, the respondents were requested to assess if the management style of he
organization has contributed to their being retained as customers. The answers were also
given on a five-point scale that stretched from not likely [1] to very likely [5].
3.14
Procedures and Sampling
The target population of customer survey was the customers with the organization. The
questionnaire will be given to a contact to be given to the relationship manager of the
organization. He/She will be required to give it to the customers who transact business with
the organization.
The target population of the management survey was all managers (ranging from relationship
managers to the group head) who worked in the organization. At least 10 managerial staffs are
going to be interviewed. The guides assigned shall pick them randomly. The guides shall be
responsible to send all feedbacks to the author. The author will also rely on secondary data
(documentary secondary data) as well as interviews. Theses will also be conducted on phone
or through the internet.
40
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
4.0
FINDINGS & ANALYSIS
In this part of the thesis work, the author aims to portray the results from the research methods
used, for example questionnaire and semi-structured interview. These results are related to the
stages in the conceptual framework. The results obtained through the research methods used
will be explained.
4.1
Methods 1: Questionnaire
The questionnaire were distributed to the customer for their response towards their suppliers
and they responded with their candid opinion on the questions which forms the core part of
the chapter and this will be used later for further analysis.
The sample of suppliers varies from onshore to offshore suppliers, big equipments, office
materials and industrial materials. About 70% of the respondents were (M.S.U) major
supplier unit and all other suppliers were treated as same regardless of their status and what
kind of group they are classified into.
The questions asked would include Satisfaction, commitment and retention. They will be
treated from the suppliers, which is the organization and the customer point of view.
About satisfaction
The Customer
Q1. Are you a customer to this supplier?
A.
Yes
B.
No
Here the customer answered yes.
Q2.
Does your organization maintain a supplier profile data bases?
A.
Yes
B.
No
The Customer answered yes to this for supplier analysis and evaluation.
41
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
Q3.
In your opinion, would you recommend your supplier to another organization?
A. Yes
B.
No
The customer responded that some that have good track record yes and others no
Q4. Are you satisfied with the relationship management of your supplier?
The scale is: Very Satisfied [5] Satisfied [4] of some satisfaction [3] of little satisfaction [2] of
no satisfaction [1] No Idea [0]
Here the customer replied that he is satisfied [4] with the relationship management of the
supplier
Q5.
Are you satisfied with their work and quality of services rendered?
The scale is Excellent [5] Good [4] Not bad [3] Poor [2] Very poor [1] No idea [0]
The customer replied Excellent [5] here since he affirmed that is the yardstick to measure if
they stay on as supplier to the organization.
Q6.
In your opinion, how would you rate your supplier’s ability to meet delivery time
and responsiveness to changes?
The scale is: Excellent [5] Good [4] Not bad [3] Poor [2] Very poor [1] No idea [0]
He responded as Good [4] here because he explained, they always check if they work within
time schedule and their responsiveness to change in the previous projects before choosing
them
ABOUT COMMITMENT
Q1. In your opinion, how has your satisfaction with your supplier helped your commitment
to them?
The scale is: Excellent [5] Good [4] Not bad [3] Poor [2] Very poor [1] No idea [0].
Here the customer responded Excellent [5] because he explained that it is the measure of the
work or services they performed, if they are satisfied with them, they are going to be
committed to them.
42
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
Q2. How would you rate your commitment to this supplier?
The scale is: Excellent [5] Good [4] Not Bad [3] Poor [2] Very poor [1] No idea [0]
He responded Good [4] to this because people are still given opportunity to submit quotation
so it is still open and the commitment is in giving them the opportunity based on their
previous track record on previous supplies and if their price is right.
Q3.
How would you rate your commitment to the supplier because you consider their CRM
Policies/strategies favourable?
The scale is: Excellent [5] Good [4] Not Bad [3] Poor [2] Very poor [1] No idea [0]
Here he responded Not bad [3] because he explained that their policy does not determine the
quality of services rendered but it helps in getting things done and subsequent relationships.
Q4. Are you committed to the supplier because you are satisfied with their services?
A. Yes
B. No
The customer responded yes to this question because he explained the reason for being
committed to a supplier is because of their good services and the can be relied on to work
with minimum supervision.
ABOUT RETENTION.
Q1. In your opinion, has your satisfaction and commitment to the supplier contributed to
Your decision to remain with the supplier?
The scale is: Extremely likely [5] Likely [4] A bit likely [3] Not likely [2] Extremely
Not likely [1]
Here he responded Extremely Likely [5] because it is satisfaction that brings out the
commitment which invariably ends up in retention.
43
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
Q2. How has your expectations versus delivered quality affected your retention of
Supplier?
The scale is: Excellent [5] Good [4] Not Bad [3] Poor [2] Very poor [1] No idea [0]
He answered Excellent [5] because if their expectation is met both in quality and time frame,
it surely makes it more interesting to work with the supplier again or look forward to working
with them.
ABOUT SATISFACTION
THE SUPPLIER
Here the helped distributing the questionnaire to 10 suppliers and they assured them of their
anonymity based on their response
Q1.
Are you satisfied with your Customers?
The scale is: Very Satisfied [5] Satisfied [4] of some satisfaction [3] of little
satisfaction [2] of no satisfaction [1] No Idea [0]
Table: 4.1.1 distribution of Q1
Respondents
5
4
3
2
1
0
5
4
1
0
0
0
10
Total
Here 5 of the suppliers answered very satisfied while four answers satisfied while just one
supplier answered of some satisfaction.
Q2.
How would you rate performance of services rendered by you to your customers?
The scale is Excellent [5] Good [4] Not bad [3] Poor [2] Very poor [1] No idea [0]
Table: 4.1.2 distribution of Q2
44
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
Respondents
5
4
3
2
1
0
9
1
0
0
0
0
10
Total
Here 9 suppliers answered that their services is excellent while one answered good.
Q3.
In your opinion, how easy is it to convince a new customer or your responses to
RFQ?
The scale is: Extremely easy [5] Good [4] A bit easy [3] Not easy [2] Extremely
not easy [1]
Table: 4.1.3 distribution of Q3
Respondents
5
4
3
2
1
0
1
7
2
0
0
0
10
Total
Here 7 suppliers responded good while 1 responded excellent and two answered a bit easy to
convincing a new customer with their RFQ
Q4.
Does your organization measure and track Customer satisfaction?
A. Yes
B. No
They all responded yes here
Q5.
Does your organization keep a customer satisfaction management handover
Checklist after each project?
A. Yes
B. No
They all answered yes here to the questionnaire.
Q6.
Does your organization determine or assess customer acquisition rate using
customer satisfaction as yardstick?
45
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
A. Yes
B. No
Here 8 suppliers answered yes while 2 answered no.
Q7.
Does your organization develop more effective customer-focused strategies?
A. Yes
B. No
Here 9 answered yes while only one says No.
QUESTIONS ABOUT COMMITMENT:
THE SUPPLIER
Q1. In your opinion, how would you rate the responsiveness of customers to satisfaction
of services you rendered?
The scale is: Excellent [5] Good [4] Not Bad [3] Poor [2] Very poor [1] No idea [0]
Table: 4.1.4 distribution of Q1
Respondents
5
4
3
2
1
0
1
9
0
0
0
0
10
Total
Here one of the suppliers answered excellent to this question while the remaining 9 suppliers
answered good.
46
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
Q2. How would you rate your customer commitment to your organization?
The scale is: Excellent [5] Good [4] Not Bad [3] Poor [2] Very poor [1] No idea [0]
Table: 4.1.5 distribution of Q2
Respondents
5
4
3
2
1
0
10
0
0
0
0
0
10
Total
Here they all answered yes to the question.
Q3. In your opinion, do you think customers are committed to you because they are
satisfied with the services you rendered to them?
The scale is: Extremely likely [5] Likely [4] A bit likely [3] Not likely [2] Extremely
Not likely [1]
Table: 4.1.6 distribution of Q3
Respondents
5
4
3
2
1
0
6
4
0
0
0
0
10
Total
Here six of the suppliers answered extremely likely to this question while the remaining four
answered likely.
Q4. How would you rate the effect of CRM policies/strategies with regards to customer
commitment to your organization?
The scale is: Excellent [5] Good [4] Not Bad [3] Poor [2] Very poor [1] No idea [0]
47
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
Table: 4.1.7 distribution of Q4
Respondents
5
4
3
2
1
0
4
5
1
0
0
0
10
Total
Here four of the suppliers answered excellent and five of the suppliers says good and one
answered not bad..
QUESTIONS ABOUT RETENTION
THE SUPPLIER
Q1. In your opinion, has customer satisfaction and commitment to your organization
contributed to their decision to remain with the organization?
The scale is: Extremely likely [5] Likely [4] A bit likely [3] Not likely [2]Extremely
Not likely[1]
Table: 4.1.8 distribution of Q1
Respondents
5
4
3
2
1
0
8
2
0
0
0
0
10
Total
Here 8 suppliers answered extremely likely to this question and the remaining 2 answered
likely to the question.
Q2. How would you rate your customer satisfaction analysis to your retention ratio?
The scale is: Excellent [5] Good [4] Not Bad [3] Poor [2] Very poor [1] No idea [0]
48
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
Table: 4.1.9 distribution of Q2
Respondents
5
4
3
2
1
0
0
10
0
0
0
0
10
Total
Here the entire customers answered good
Q3. Does your organization believe customer retention is synonymous with
maximization of organization’s profit?
A. Yes
B. No
Here all the suppliers answered yes here.
Method 2
4.2
Semi-structured Interview
Interviews were conducted over the Internet and on the phone by the author.
Two relationship managers were interviewed that works in a telecommunication and oil
marketing company and the suppliers to the oil marketing company were given the
questionnaire who kindly helped in filling and replying to them two were also interviewed
which they suggested. A sample of interview can be found in the appendix of this work.
During the interview, all relevant questions were asked and all respondents offered their
answers to the author through the Internet and phone. Their answers were sorted out and
analyzed by the author at the later part of this work to buttress the point of this research work
and each question that were asked were very critical and relevant to the research work to be
able to arrive at a conclusive opinion.
49
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
QUESTIONS OF SEMI STRUCTURED INTERVIEW
The following interviews were expected to be conducted to support the methodology of
research adopted. It will be between customers and relationship managers.
QUESTION ASKED THE CUSTOMER ABOUT SATISFACTION
Q1. What is the most important aspect for you being the customer, when we are talking
about relationship customers versus supplier?
Ans.
The customer responded here that it gives them a better bargaining position with
price and they were able to choose amongst the best and invariably picks the best supplier
with the best price and a good terms and condition
Q2. How has your satisfaction with your supplier affected your relationship with them?
Ans.
Our satisfaction with the quality of work they rendered and within other stated
functions gives them an edge over other suppliers when their is a new RFQ and this actually is
the yardstick to determine if a supplier stays with us or not..
Q3. How long have you been a customer to the supplier?
Ans. Most of our suppliers are old but we take new suppliers regularly too to forestall any
disappointment but this supplier has been with us for eleven years.
Q4. How beneficial has your choosing this supplier being compared to other suppliers?
Ans. They have always been beneficial in their respective areas since they have areas they
specialise on because we always choose on expertise and track record.
50
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
QUESTIONS ASKED THE CUSTOMER ABOUT COMMITMENT
Q5.
Are you committed to the supplier and why?
Ans. We are committed to this supplier being that they know what they are doing, have a
good relationship with them and deliver on time.
Q6.
How has the strategies adopted by the supplier to make sure customers are
satisfied won over your commitment?
Ans. It has been of very good of them with their follow up on satisfaction and quick
response to any complaint and this has made us more committed to them.
QUESTIONS ASKED THE CUSTOMER ABOUT RETENTION
Q7. What would you like your supplier to do in order to guarantee your continued
relationship with them?
Ans. We don’t request much of them but total quality work, good terms and condition and
delivery on time.
QUESTIONS ASKED THE MANAGERS/SUPPLIER ABOUT SATISFACTION AND
COMMITTMENT
Q8.
How important is customer to you in this organization?
Ans. Customer is very important to us, it starts with them and ends with them, without them,
we are not in business.
Q9.
In what ways does your customer contribute to your relationship management
efforts?
Ans.
They have been able to help our effort by cooperating with us and giving us feedback
and constructive criticism in our works.
Q10. What is your biggest asset?
Ans.
Customer is our biggest asset that is why we try to satisfy them.
Q11. Do you manage your customers like valuable assets?
51
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
Ans. Yes, we manage them like valuable assets because to gain a loyal customer is much
more difficult than losing one.
Q12. To what extent have the policies and strategies contributed to customer
satisfaction?
Ans. The strategies and policies the management adopted has been of immeasurable efforts
to our customer satisfaction.
Q13. To what extents have the policies contributed to customer commitment to this
organization?
Ans. We think it has enhanced their commitment to us but without us doing our job well, the
policies will be of no use.
QUESTIONS ASKED THE MANAGERS ABOUT RETENTION
Q14.
Are your policies reviewed for customer sake towards acquisition and retention?
Ans. Yes, our policies are geared towards customer acquisition and retention with good
services and customer satisfaction.
Q15. Have the policies contributed to customer retention?
Ans.
Yes, the policies adopted to measure customer satisfaction against performed services
and products delivered have contributed to customer retention.
4.3
ANALYSIS OF THE QUESTIONNAIRE RESULTS
In this research project, the questionnaire would be analyzed from the customer’s perspective,
as well as from the supplier’s perspectives. The analysis is based on customer satisfaction,
commitment and customer retention from the two sides.
Analysis of customer perception of satisfaction
Questionnaires Q1 to Q6 treated customer satisfaction from the customer’s perspective and
the responses received from the customer shows that the customer have some form of
satisfaction with the suppliers and their relationship management, services rendered and also
quality of the work done by the suppliers, their ability to meet delivery deadlines and ability
52
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
to meet responsiveness to changes. The customer was asked to asses the quality of work
performed by the supplier and if they can recommend them to another customer which they
replied yes to since they have confidence in them and this shows that customers gain some
form of satisfaction with them and according to [49] “ the drive for quality and products
services is apparent worldwide and that the pursuit of customer satisfaction increasingly is
becoming a corporate goal.” According to [7] that is the base of relationship management.
Analysis of Customer perception on commitment
Questionnaire Q1 to Q4 which is the questionnaires on commitment for the customer asked
pertinent questions about how the satisfaction with suppliers has helped them in been
committed to them and are they committed to them based on their policies and strategies and
also if it was based on their services and the quality with which they perform it. The response
from the customer shows that majority of the suppliers to the customer still has one project or
business to do with them based on their satisfaction with their previous work and their
commitment to them were rated good being that they will be willing to use them again,
therefore this assertion supports one of the empirical research in both the marketing and
organizational behavior literatures which lends credence and maintains that satisfaction leads
to commitment which also suggests that “Buyer satisfaction with the sales person will be
positively related to the buyer’s commitment to the sales person” [7]
Analysis of Customer perception of retention
Q1 and Q2 explains the customer’s view on retention and how satisfaction and commitment
to their supplier contributed to their decision to remain with them and which shows it is a
major reason of staying with any supplier because they are satisfied with their work and also
because their expectations are met. This confirms the early hypothesis that satisfaction is an
antecedent to commitment; therefore it confirms “Buyers satisfaction with the sales person
will negatively related to the defection intentions. Also, buyers commitment to the
salesperson will be negatively related to buyer defection intentions”
53
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
Analysis of Suppliers perception of satisfaction
Q1 to Q7 asks pertinent questions about the supplier’s opinion about satisfaction with their
customer, how they would rate their performance, how easy it is for them to convince a new
customer or win a new RFQ and if their organization has a yardstick for measuring customer
satisfaction and the parameter used in doing this. The supplier responded to the satisfaction
based on their perception that if a customer is not happy with their work, they will not want to
use them so being satisfied with them is very important.
Analysis of Suppliers perception of Commitment
Q1 to Q4 explains and tries to clear the understand behind the perception of commitment from
suppliers point of view since the rate of responsiveness of customers to satisfaction of
services rendered has correlation in being committed to them and how has customer
satisfaction with them being able to help in their commitment to them. It also helps to analyze
the policies and strategies adopted whether it has any direct influence on customer’s
commitment to them since they make it their watchword to satisfy customer.
This helps to broaden the definition of relationship management as “ the infrastructure that
enables the delineation of and increases in customer value, and the correct means by which to
motivate valuable customers to remain loyal-indeed, to patronize again” [3]
Analysis of Supplier’s perceptions on retention.
Q1 to Q3 asked questions about how customer satisfaction has been able to make them remain
with the organization which the supplier knew since if they are not satisfied with them, they
will not be committed and without being committed, they can not be retained and the more a
customer is satisfied with your work, the higher your retention ratio is and when you have a
high retention ration and your customers are happy with you, it will invariably reflect in their
organization profit and this was supported by [50] “suggested that as little as a five percent
increase in customer retention can increase profits by fifty percent or more”.
Analysis on the semi-structured interview with customer
The analysis about the questions asked the customer about satisfaction shows how important
it is for a customer to be satisfied with a supplier for onward patronage or future business, it
will just be a once off business relationship if they are not satisfied with the service or quality
54
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
of work done which will result in not being committed to and retained at the end of the day. It
shows from the response from the customer that satisfaction is a key factor in a supplier being
retained for business. This clearly states too why they could be committed to a supplier not
only because of their policies and strategies, although they agreed that their customer
relationship management could endear them to them but that will not make them commit to
them but rather the quality of their work and the retention will be based on the satisfaction
derived from services render, expected met or surpassed and quality of work done.
Analysis on questions asked the managers about satisfaction, commitment and retention
This examines why they are in business and how well they value their customer, is it of any
importance to them, and in what ways does customer contribute to relationship management
and to what extent has the policies they adopted contributed to their customer satisfaction and
retention, the manager was able to explain how important customer is to them, without them,
they are not in business and how invaluable they are to them and this shows why they adopted
customer relationship management policies, to monitor their progress, get feedback from
customer and improve on their margin through more commitment from customer and being
retained for more business at the end of the day.. The questions on if their policies were
reviewed for customer sake came up with an answer that Yes and No because they gear
everything towards customer but they improve on their policies and strategies too because
they believe in it and it will benefit them immensely at the end of the day. It will help the
organization in staying in touch with the changing environment as well as improving and
ensuring that they are one step ahead of their competitors while aiming at customer
satisfaction and commitment, combating customer defection and therefore securing customer
retention.
4.4
Summary of Findings
In this research project, the qualitative and quantitative techniques were used in the research
findings. Quantitative data was used as a mathematical representation to present the tables and
help for easier analysis of the findings. This was done in the analysis of the questionnaire
where perceptions of customers were analyzed. Qualitative research was used to explain the
use of non-mathematical procedures when interpreting and explaining and analyzing the data
findings of the quantitative techniques. [26]
55
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
A triangulation approach was adopted from the recommendations of [26] and [42], the data in
this study was collected through questionnaire and semi-structured interviews supported by
reviewing the response received from the managers. These different data collection methods
were used to provide more detailed idea as well as information about the topic under research.
The principle is that different research approaches led to the same conclusions, our faith in the
validity of those conclusions is increased. [35]
The objectives of this research project determines the boundary of this research work and in
this project, the objectives were customer perception of relationship management,
organization perception of relationship management, as well as differential analysis of
customer and organizational perception, which explains the interrelations of the two
objectives with a view of satisfaction, commitment and customer retention relationship
management
To arrive at the findings, the research methods were used against the objectives. The
questionnaire as well as the semi interviews tested the various objectives from the customer as
well as from suppliers’ point of view and according to the results; the suppliers are satisfied
with the relationship management of their customer. The result of the semi-interview also
shows a high level of customer satisfaction, which makes them still remain on the supplier’s
list, commitment and retention from the customer point of view and the suppliers too are
satisfied with the customer and this explains their commitment and invariably being retained.
Therefore, having arrived at the same inference in all the methodology used by approaching
the research questions from different angles, the objective was achieved.
From a practical aspect, the study attempted neither to test existing theory nor to develop new
research instrument. The study tried to study relationship management from the customers
and the supplier point of view with emphasis on customer satisfaction, customer commitment
as well as customer retention with a view of how interrelated they are in organizational
management and how these critical factors affects overall profit margin of projects.
The findings of this project show that strategic implications associated with understanding
and enhancing customer retention. The reason for this is that loyal customers are more
profitable than newly acquired ones [51]. Thus an effective strategy to enhance retention rates
can also impact a competitive advantage. This research indicates that suppliers or
organizations plays important role in enhancing customer retention and which invariably
56
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
increases the margin. It also indicates that the retention process is far more complex than
merely keeping customer satisfied and should address concepts such as customer commitment
and building equitable and long lasting relationships. There is constant need to review
organizational policies and strategies to enhance customer satisfaction, commitment and
therefore retention thereby enhancing competitive advantage.
Organizations particularly need to focus on developing reasonable relationships to create a
sense of commitment and satisfaction, one way to do this is to be open in communications
with the customer and not use information in an opportunistic manner.
This research study indicates that high levels of customer commitment to the organization
(directly) and satisfaction with the organization (indirectly) are important in enhancing
customer retention. If satisfaction and commitment are high, it is unlikely that the customer
will determine that the benefits associated with leaving a supplier or an organization justify
the costs involved in making such a move. Low levels of commitment make it more likely
that customers will evaluate favourably the level of benefits obtained by leaving. However,
high commitment level as well as satisfaction in the project handled for them reflects
favourable retention rate.
Management follow up and follow up on projects finished and making checklist of customer
satisfaction are ways to help build greater level of satisfaction and commitment by increasing
the quality of communication with the customers and responsiveness to request for changes or
correction or default on a finished project or supplied materials.
An important contribution of current research is the inclusion of both satisfaction and
commitment with the organization in a model that explains a large portion of variance in
customer defection intentions. When a customer is satisfied with work done or service
rendered, that does not mean they cannot defect, but satisfaction plays a plays a less role in
established customer relationship so commitment to an organization plays an increasing
important role once a relationship is established.
57
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
5
CONCLUSION AND RECOMMENDATION
5.1
Conclusion
From a practical aspect, this research study attempted to gain an insight and in depth into the
perception of customers and organizations on customer relationship management and the
effects it has on project margins. The study simply tried to identify customer as well as the
organizations perception of relationship management. It also tried to explain the differential
analysis between the customer and the organizations perceptions of relationship management.
It tries to show from the analysis that customer should be carried like a valuable assets, the
way organizations take their most valuable assets, if well managed, it has the power to turn
the scale of profit on favour of whoever managed it properly. The various findings were
analyzed separately each from the customer and organization point of view and the findings
analyzed customer satisfaction, commitment and retention from the customer and
organizations perspective as well as the interrelations needed by the organization to avoid
customer defection, thereby achieving a high level of customer retention.
Although customer satisfaction is in the eye of the beholder, common ways of monitoring
customer satisfaction do not allow suppliers to “speak their own mind “ More often than not, a
pre defined set of aspects is measured, thereby –even if advertently shaping the context within
which the suppliers expresses themselves. However, the measurement of customer
satisfaction from the customer and the organization point of view in this case was done from
the frame of the relationship that exist between the two.
Results from the responses of the customer’s perception of satisfaction with their supplier’s
shows a consistent feeling of satisfaction and its effect on relationship management. The level
of satisfaction the customer has in a supplier determines the business or projects they handle
for the customer. It has a direct correlation with the assertion that the more a customer is
satisfied with a supplier, the more business they get and this invariably reflects on their
balance sheet at the end of the year and from the authors point of view, proper customer
58
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
relationship management has benefits to both party involved both the customer and the
suppliers too and it reflects positively for both party at the end of the day.
The assertion here that to convince a new or potential customer is not too difficult but
experience has shown that, getting a new customer might not be difficult but holding on to
one is where the actual benefits stays and in the long run, it reflects on the balance sheet
because the cost of acquiring a new customer is far more expensive than keeping an old one
happy and retained.
Customer analysis of commitment to suppliers shows that most of their customers that are on
the suppliers list must have been good in managing the relationship between them and also
they must be good in their services, whether in quality or prices being competitive or
responsiveness to changes or meeting time schedule but in all, it shows that for a customer to
be committed to a supplier, their must be a very high sense of satisfaction with them. From
the customer analysis of commitment, it shows that they must be satisfied with the services of
the supplier. It also shows that customer satisfaction is a precursor to customer commitment.
Measuring the perception of customer retention with the suppliers, it can be seen that from the
analysis that form the customer perspective, customers can only be committed to suppliers if
they are satisfied with their services or work done and this can lead to the supplier being
retained due to the fact that the customer is satisfied with them. However, in this research
work, results shows a high level of customer satisfaction and commitment to the supplier and
according to the results from the questionnaire on customer retention, the customers retain the
suppliers because of their satisfaction and commitment to them while they look for key
functions like meeting and exceeding expectations the customer has for prospective suppliers.
In summary, the result of this study shows that relationship management is an essential part of
management. It also explains and identifies the various subjects of a meaningful customer
relationship management. From customer satisfaction to customer commitment and finally to
customer retention. While each of these subjects can be perceived differently between
customers and the suppliers, it also shows the interrelations between customer and the
organization perception. From a marketing perspective, both parties (customers and
59
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
organization) are very important and must be considered if a more thorough understanding of
CRM is to be gained.
Results in this project identify a high level of satisfaction amongst the customer’s suppliers. It
also indicates that as satisfaction with the organization increases, customer commitment to
organization increases. Customers are committed to the organization they do business with
because they are satisfied with the services the organization offers them and this makes them
decide to remain with them which results in retention. Organizations also reviews managerial
policies in line with customer need and perception of services rendered from time to time with
a view of enhancing their performance in the market and giving themselves a competitive
advantage over their competitors.
5.2
Recommendation
Taking the results in this dissertation into consideration, results of the questionnaire showed
that most of the respondent suppliers agreed to be satisfied with the relationship management
of the customer and vice versa and were committed to each other because of the mutual
satisfaction. However, it must be noticed that it could have been more appropriate if the
questionnaire were given to the suppliers from a different entity and has no link to their
customer whatsoever because they could respond quite independently without fear or favor
but they all promised they responded with utmost truth and their opinion on the questions.
According to the author, here are some recommendations for both organizations and
customers for successful relationship management.
1. General research survey will provide a better picture of customer and organization
perceptions.
According to the result of this study, most suppliers agreed to being satisfied with the
relationship management of their customer and committed to them because it reflects in their
being retained. This easily gives an impression that the customer or the supplier is a perfect
one and their relationship is very cordial without any problem or weakness. However, it is
noteworthy that this research survey was carried out on the suppliers that have a long time
relationship with the organization and a recent supplier could not actually claim if the
customer is going to retain their service or patronize them again. Therefore questions will
60
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
arise; how will an average customer or supplier rate satisfaction and commitment and how
will the assessment be carried out. Therefore in authors opinion, a general survey would give
a better idea of relationship management to customer about their suppliers and the relationship
between them and also the suppliers, their customer, the relationship assessment criteria.
2. Extend relationship management to Suppliers both old and new
Result from the customer retention questionnaire shows that their suppliers were retained due
to many factors not basically on their policies or strategy towards relationship management.
They assess suppliers basically on their delivery terms and ability to do what is required of
them correctly without much supervision but in the context of this research work, it is
imperative that the customer have a well focused relationship management policy for their
organization and also ways of assessing if a supplier makes the point and this will help keep
in view the good ones to be retained rather than keep everybody when their satisfaction is
okay with this work or services rendered.
3. A well-devised retention plan should be put in place
As part of a good retention plan, the suppliers should make a follow up call for each customer
they have had or did business with and have proper laid down organizational procedures to
follow up on customer satisfaction after any completed project and should make efforts to put
in place self assessment exercise for themselves after each project or supplies handled for a
customer so they can keep themselves abreast of things they need to work on and where to
build bridges and develop on in the future.
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Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
6.0
6.1
PART II
CRITICAL EVALUATION OF THE DESSERTATION
Introduction
The aim of this part is to evaluate the suitability of the methodology, concepts theories and
techniques applied. It also identifies particular problems faced during the course of the
research investigation and explains how they were overcome. In addition, the personal skills
developed by the author while carrying out this dissertation are evaluated.
1. In this dissertation, the conceptual framework was based on customer and organizational
perceptions of relationship management. The perceptions were viewed ad analyzed from
various perspectives in management. They were viewed from customer satisfaction,
commitment and retention. Differential analysis, which had to do with how organizations
react to changing customer needs were also analyzed. During these findings and analysis,
certain difficulties were encountered and they are outlined below:
 Inability to distribute the questionnaires randomly among few suppliers of the customer.
 Inability to assess the findings from a larger number of respondents.
 The respondents responded favourably to questions asked thereby putting the author in
a difficult position to evaluate from an impartial perspective
Evaluation of Methods applied.
The research study tried to evaluate the perception of customer and organizations towards
customer satisfaction, commitment and retention. Different methods were used to evaluate the
perspectives, they include questionnaire survey, semi structured interview and qualitative and
quantitative methods were applied in this study for different objectives and different methods.
Quantitative analysis sought to gain insight and to understand customers and organizations
perception of relationship management with respect to satisfaction, commiment and retention.
The questionnaire was solved quantitatively while a qualitative approach was adopted for the
semi-structured interview. In addition, quantitative approaches tend to relate to positivism and
seek to gather factual data and study relationship between facts and how such facts
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Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
relationship agrees with theories and findings of researches carried out previously. However,
the author encountered a few setbacks in the various methodology used particularly in the
questionnaire area where you can not be too sure of the reason for respondents answers and
how serious they took the questionnaire. And the semi- structured interview was carried out
with two respondents from the customers and organizations point of view. They both
responded well but may have been too few to have an effect on the outcome of the findings.
Study limitation
While the study helps us better to understand customer relationship management and its
effects on margin if properly managed with the various objectives as discussed from the
customer and organization s point of view. Firstly, the number of respondents used was too
small and the managers too interviewed were relatively small.
Secondly, the study was only concentrated on suppliers or particular group of suppliers
that has being with the customer long which could have had a different result if new suppliers
were used. therefore the current findings may not represent a general idea.
Thirdly, the relationship manager distributed the questionnaire to the suppliers on behalf
of the author. This may have led to it being not objective in giving out the questionnaire to the
right people.
Lastly, the semi-structure interview was carried out on two respondents from the
customers and two respondents from the organizations. This number might not represent a
true reflection of what the situation is truly is.
Implications
The important feature of this study is that it focuses on customer and organization perception
of relationship management with a view of the effect on customer satisfaction, commitment,
and retention. The inference shows the importance of the relationship management to the
organization and customers and the effect it could have on their margin if properly managed..
It shows that without satisfaction, customers cannot be committed and without customer
commitment, it is impossible to retain.
Areas for Future Research
Additional research needs to focus on providing greater understanding of the antecedents of
the customer retention processes. For example, research could examine how organizations
63
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
bring “value” to a relationship and discourage turnover. Variables such as volatility of the
environment and organizations. Finally, additional research needs to focus on other customers
and other suppliers as well as their level in satisfaction, commitment and consequently
retention by the customer.
Personal Skills development
My study and previous work experience helped me a lot in carrying out this study. In
conducting this research, it gives me good opportunity to improve myself in the following
aspects:
Communication skills: To conduct an interview or discussion successfully, it was imperative
to have a good communication with different people. In this dissertation, I learned to start
friendly conversation with strangers from various backgrounds. Furthermore, I developed
skills like sorting out main information’s from a relevant complicated conversation. At the
same time my listening skill was also improved during the process of communication.
Writing Skills: English Language is my first language for as long as I can remember, I have
always worked hard to improve on my writing skills and improve on my fluency and clarity in
discussion and writing this thesis was an additional task and looking back to the previous
work. I would say I have improved my writing skills as well as developed my skills with
vocabulary.
Time management: Time management is a key to success in project management and I
conducted this study by setting goals and deadlines for different stages. I made efforts to
finish every stage according to the schedule. This study provided a good chance for me to
improve on time management. Therefore, working under tight schedule and time limit with an
increased workload, I had to plan my time and to have achieved this gives me great
confidence.
Looking back to when I started this dissertation, I have enjoyed every bit of it. I have enjoyed
learning, researching, talking to people and sharing my ideas and experiences. Finally, I am
convinced I have acquired good and sound knowledge of time management and hope to apply
it to my future endeavours
64
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
Appendix 1
Questionnaire
QUESTIONNAIRE A
Dear Sir or Madam:
I am a MIMA student in International Project Management in Malardalen University. Here is
a questionnaire designed by me for my Masters degree thesis dissertation, analyzing customer
Perception of relationship management, with a view of customer satisfaction, commitment
and retention. By finding out your opinion, I believe that I will be able to get more useful
information for the research work and improve organization’s relationship management
means with and improve customer satisfaction yardstick thereby getting better and enhanced
services.
By taking a few minutes to fill in this questionnaire, we can build up a current picture of your
perception of the customer. Please return the completed questionnaire as soon as possible.
Your views are highly valued.
ABOUT SATISFACTION
THE CUSTOMER:
Q1. Are you a customer to this supplier?
A. Yes
B. No
Q2.
Does your organization maintain a supplier profile Data bases?
A. Yes
B. No
Q3.
In your opinion, would you recommend your supplier to another organization?
A. Yes
B. No
Q4.
Are you satisfied the with relationship management of your supplier?
65
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
The scale is: Very Satisfied [5] Satisfied [4] of some satisfaction [3] of little
satisfaction [2] of no satisfaction [1] No Idea [0]
Q5.
Are you satisfied with their work and quality of services rendered?
The scale is Excellent [5] Good [4] Not bad [3] Poor [2] Very poor [1] No idea [0]
Q6.
In your opinion, how would you rate your supplier’s ability to meet delivery time
And responsiveness to changes?
The scale is: Excellent [5] Good [4] Not bad [3] Poor [2] Very poor [1] No idea [0]
QUESTIONS ABOUT COMMITMENT:
THE CUSTOMER
Q1. In your opinion, how has your satisfaction with your supplier helped your
commitment to them?
The scale is: Excellent [5] Good [4] Not bad [3] Poor [2] Very poor [1] No idea [0].
Q2. How would you rate your commitment to this supplier?
The scale is: Excellent [5] Good [4] Not Bad [3] Poor [2] Very poor [1] No idea [0]
Q3. How would you rate your commitment to the supplier because you consider their
CRM policies/strategies favourable?
The scale is: Excellent [5] Good [4] Not Bad [3] Poor [2] Very poor [1] No idea [0]
Q4. Are you committed to the supplier because you are satisfied with their services?
C. Yes
D. No
QUESTIONS ABOUT RETENTION:
THE CUSTOMER
Q1. In your opinion, has your satisfaction and commitment to the supplier contributed to
your decision to remain with the supplier?
The scale is: Extremely likely [5] Likely [4] A bit likely [3] Not likely [2] Extremely
Not likely [1]
66
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
Q2. How has your expectations versus delivered quality affected your retention of
Supplier?
The scale is: Excellent [5] Good [4] Not Bad [3] Poor [2] Very poor [1] No idea [0]
QUESTIONNAIRE B
Dear Sir or Madam:
I am a MIMA student in International Project Management in Malardalen University. Here is
a questionnaire designed by me for my Masters degree thesis dissertation, analyzing
Supplier’s Perception of relationship management, with a view of satisfaction, commitment
and retention. By finding out your opinion, I believe that I will be able to get more useful
information for the organizations analysis and a way to improve the management of
relationship within organization with best service thereby increasing their margin.
By taking a few minutes to fill in this questionnaire, I can build up a current picture of your
perception of the customers services/satisfaction at it affects the supplier. Please return the
completed questionnaires as soon as possible. Your views will be highly valued.
THANK YOU VERY MUCH
Please tick your answers
QUESTIONS ABOUT SATISFACTION:
THE SUPPLIER
Q1.
Are you satisfied with your Customers?
The scale is: Very Satisfied [5] Satisfied [4] of some satisfaction [3] of little
satisfaction [2] of no satisfaction [1] No Idea [0]
Q2.
How would you rate performance of services rendered by you to your customers?
The scale is Excellent [5] Good [4] Not bad [3] Poor [2] Very poor [1] No idea [0]
Q3.
In your opinion, how easy is it to convince a new customer or your responses to
67
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
RFQ?
The scale is: Extremely easy [5] Good [4] A bit easy [3] Not easy [2] Extremely
not easy [1]
Q4.
Does your organization measure and track Customer satisfaction?
A Yes
B No
Q5.
Does your organization keep a customer satisfaction management handover
Checklist after each project?
A Yes
B No
Q6.
Does your organization determine or asses customer acquisition rate using
customer satisfaction as yardstick?
A Yes
B No
Q7.
Does your organization develop more effective customer-focused strategies?
A Yes
B No
QUESTIONS ABOUT COMMITMENT:
THE SUPPLIER
Q1. In your opinion, how would you rate the responsiveness of customers to satisfaction
of services you rendered?
The scale is: Excellent [5] Good [4] Not Bad [3] Poor [2] Very poor [1] No idea [0]
Q2. How would you rate your customer commitment to your organization?
The scale is: Excellent [5] Good [4] Not Bad [3] Poor [2] Very poor [1] No idea [0]
Q3. In your opinion, do you think customers are committed to you because they are
satisfied with the services you rendered to them?
The scale is: Extremely likely [5] Likely [4] A bit likely [3] Not likely [2]Extremely
Not likely [1]
Q4. How would you rate the effect of CRM policies/strategies with regards to customer
commitment to your organization?
The scale is: Excellent [5] Good [4] Not Bad [3] Poor [2] Very poor [1] No idea [0]
68
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
QUESTIONS ABOUT RETENTION
THE SUPPLIER
Q1. In your opinion, has customer satisfaction and commitment to your organization
contributed to their decision to remain with the organization?
The scale is: Extremely likely [5] Likely [4] A bit likely [3] Not likely [2] Extremely
Not likely [1]
Q2. How would you rate your customer satisfaction analysis to your retention ratio?
The scale is: Excellent [5] Good [4] Not Bad [3] Poor [2] Very poor [1] No idea [0]
Q3. Does your organization believe customer retention is synonymous with
maximization of organization’s profit?
A Yes
B No
QUESTIONS OF SEMI-STRUCTURED INTERVIEW
QUESTION ASKED THE CUSTOMER ABOUT SATISFACTION
Q1. What is the most important aspect for you being the customer, when we are talking
about relations customers versus supplier?
Q2. How has your satisfaction with your supplier affected your relationship with them?
Q3. How long have you been a customer to the supplier?
Q4. How beneficial has your choosing this supplier being compared to other suppliers?
69
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
QUESTIONS ASKED THE CUSTOMER ABOUT COMMITMENT
Q5.
Are you committed to the supplier and why?
Q6.
How has the strategies adopted by the supplier to make sure customers are
satisfied won over your commitment?
QUESTIONS ASKED THE CUSTOMER ABOUT RETENTION
Q7. What would you like your supplier to do in order to guarantee your continued
relationship with them?
QUESTIONS ASKED THE MANAGERS/SUPPLIER ABOUT
SATISFACTION AND COMMITTMENT
Q8.
How important is customer to you in this organization?
Q9.
In what ways does your customer contribute to your relationship management
efforts?
Q10. What is your biggest asset?
Q11. Do you manage your customers like valuable assets?
Q12. To what extent have the policies and strategies contributed to customer
satisfaction?
Q13. To what extent have the policies contributed to customer commitment to this
organization?
QUESTIONS ASKED THE MANAGERS ABOUT RETENTION
Q14.
Are your policies reviewed for customer sake towards acquisition and retention?
Q15.
Have the policies contributed to customer retention?
70
Adaran Ayodotun Olukunle
E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
7.0
1.
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E-Mail: aan05022@student.mdh.se
Phone: +46737826345
Department of Computer Science and Electronics
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