Customer Integration strategies
to improve Organization Competitiveness
Dr. A.V. Nageswara Rao1, Dr.
V. Krishna Mohan2
1Associate Professor Management, Department of Management,
College of Business and Economics,
Ambo University, Ethiopia
2Professor Marketing, Department of
Commerce & Mgmt. Studies, Andhra University, Andhra Pradesh, India
*Corresponding Author E-mail: informnagesh@gmail.com,
vaddadi_km@sify.com
The role of Customer is gaining prominence in Globalized
Competitive markets. Today the Customer is more informed, Conscious of Product
Quality and expects value for money. In view of severe Competition and Product
Variety, it has become a challenge for Organizations and Customers to take
Product Decisions. The Product life cycle have become short and Organizations
are moving ahead with New Product development plans. The Customer is
pre-occupied with product information, and development of Information
Technology (I.T) has further facilitated Secure-Payment, Product Delivery and
Speed in the market place. The present article attempts to investigate the
impact of C.R.M Strategies on Customer Integration, and the role of Customer
Integration, in improving Organization competitiveness within Indian Retail
Industry. Organization competitiveness
is taken as a composite construct of increase in Sales, increase in market
share, increase in Customer Foot-Falls and Customer Satisfaction. Survey Method
is used to collect the data from Customer Relationship Managers from Retail
Organizations operating in India. The Results have suggested key Customer
Relationship Management (C.R.M) Strategies and highlighted the role of Customer
Integration in improving Organization Competitiveness.
KEYWORDS: Customer Integration (C.I),
Retail Sector, competitiveness, Product life cycle, Customer Relationship
Management (CRM).
1. INTRODUCTION:
One of those basic concepts which is gaining prominence in the world
of Globalization is the ongoing customer-care management. In the Retail sector
context, Customer care does not only include to gain basic customer information
by using customer relationship management (CRM) practices but to gain valuable
knowledge from the changing customer product attitude and purchase behaviour.
This type of knowledge is mainly based on customer product experiences and
employee-customer encounter experiences. The Retail organizations which are
interviewed know that through Customer Integration Management practices and
implementation of their experiences ,the supply chain can be optimized and resulting customer complaints and
non-productive costs can be avoided. There are different possibilities to
integrate the customer along the product development process.
According to the interviewees it definitely makes sense to involve
the customer into the process of idea generation and product rating. Receiving
knowledge from the customer implies providing organizational knowledge,
including e.g. detailed product information or information about New product
developments, and Availability of Merchandise for the customer. When the Customer is informed about the New
product development and Availability of Product variety, he can provide
valuable input for future product development and design. To provide New
product development information for the customer, it requires a degree of trust
and Relationship management, since there is no guarantee that all the customers
are loyal and trustworthy with the same Organization.
2. LITERATURE REVIEW AND RESEARCH HYPOTHESIS:
Organization’s integration with customers refers to the mechanism
whereby they work closely with customers and viewing the latter as an important
component of supply chain Integration. (Narasimhan
and Kim, 2002). In this article, this variable also encompasses the degree of
involvement, Relationship and Influence customers have in facilitating Customer
Integration. It also measures how closely customers work with replace to seal a
deal (Narasimhan and Kim, 2002). The Regular
Follow-up with customers for feedback refers to the degree of correspondence
between replace and customers, whereby customers respond to the replace
regarding the output delivered or to be delivered to customers (Narasimhan and Kim, 2002).
Customer integration leads to special challenges for the planning,
control and monitoring of in-house processes, thus creating the necessity for
using customer controlling measures (Kleinaltenkamp
and Schweikart, 2006). From a controlling perspective, customer
integration is therefore often perceived as a cost accounting problem and as a
result has negative connotations (Kleinaltemkamp and Schweikart, 2006). Therefore, it is important to create the
awareness that customer integration supported by customer controlling leads to
an increase in service productivity. The prime strategies for enhancing
organizational competitiveness have a common assumption that current organizational dynamics
pressurize organizations to know how to deal with the complexity and the future
challenges that characterize the ever changing global markets (Ulrich, 1998).
One of the approaches promoting competitiveness is to analyze Organization’s
resources and to manage them with a strategic plan. This is the main premise of
the RBV (Resource Based View) (Barney, 1991) of the firm frame. The Barney’s
RBV is an economic theory holding that organizations can earn sustainable
returns if their superior resources are protected by appropriate mechanisms
preventing their diffusion in Global markets. It strongly suggests that it’s
the resources by which a firm gains competitive advantages. The human resources
were reasoned as a target of attention by management, viewing them as a
strategic pathway of response to promote Organization competitiveness (Prahalad, C and Hamel G, 1990)
Research Hypothesis
Ho1: C.R.M Strategies will have no significant positive effect on
Customer Integration
Ha1: C.R.M Strategies will have significant positive effect on
Customer Integration
Ho2: Customer Integration strategies will have no significant positive
effect on Organization
Competitiveness
Ha2: Customer Integration strategies will have significant positive
effect on Organization Competitiveness
2.1 Customer Relationship Management (C.R.M):
In the present Research paper we assume that Customer relationship
management is identified as the core competency and a major competitive
advantage for Organization in terms of Customer Integration. There is considerable attempt to introduce
Knowledge management concepts, systems, and tools into the organization’s Integration
practices to facilitate Customer relationship management competency, as well as
supporting processes or competencies in order to substantially improve
Organization competitiveness. The concepts and fundamentals of Customer
relationship management grew from demand on after-sales customer service. In
addition, it is based on sales transactions, encounter with Customer
expectations and intensive Customer data mining. In the process of influence of
Relationship Management and Customer orientation principles, customer
relationship management advances to adoption of value-added problem solving and
Customer centric services. The ultimate Customer relationship management
principle is to build customer loyalty, win the Trust, Confidence and maintain
lifetime patronization performing to the expectations of Customers. The
following are the Core competencies of Customer relationship management and
three levels of Customer relationship management in terms of their short v.
long-term effects, and functional applications:
a) transaction-based data processing;
b) value added customized product and services; and
c) knowledge-based customer and value driven relationship
building.
Fig1:
Hypothesis Model:
The Modern markets are spread across the Globe and Customer Relationship
in the context of Transaction – based data processing is a challenge for
Organizations. The role of Information Technology is vital in maintaining
Transaction based Data maintenance across the Globe. The Customer in the
present Dynamic Markets demands value addition and customized products matching
his Tastes and preferences . Therefore
it is a challenge for Organizations to
study, analyze the changing Tastes and preferences of Customers who are spread
across the Globe. With the evolution of Internet and Communication
Technologies, the present day Customer is knowledge based and he/she is
pre-occupied with product information through various social networks,
websites, References, promotion media etc. The Customer today expects Value
driven relationship in whatever he/she purchases and always compares his
product with competitors in various ways.
Table 1:Customer Relationship
Management Levels:
|
S.No |
First Level |
Second Level |
Third Level |
|
1 |
Communication skills |
First Level Skills |
First and Second Level |
|
2 |
Selling Skills |
Customer Marketing Research |
Customer Capital |
|
3 |
Understanding Customer Needs and Wants |
Innovation and Creativity |
Customer Loyalty |
|
4 |
Customer Grievance Handling |
Analytical skills |
Customer Life-time value |
|
5 |
Data Mining Skills |
Inter-personal skills |
Knowledge Management |
In the ever changing Globalized markets, all Organizations are
striving for implementing Customer Relationship Management strategies and
further wish to upgrade to various levels which may be drawn from strategic review
of core competencies. Each level of Customer relationship management requires
different competencies i.e. knowledge, skill and Talent. The first level
requires core competency in communication skills, selling skills, understanding
of customer needs and wants, real-time customer data access, customer grievance
handling skills, and data mining skills etc. The Second Level skills include
anticipating customer needs and wants from extrapolated information and
Marketing Research, customization skills with given cost budget, innovation and
creativity, problem-solving skills, analytical skills, interpersonal
communication skills, and all the skills from First Level. The Third Level
covers measuring and managing Customer capital, Customer loyalty and customer lifetime
value, customer driven process management, skills in relationship building,
best practices in customer service, collaboration, effective learning and
knowledge transfer etc., and all the skills from First and Second Levels of
Customer Relationship Management (C.R.M)
2.1.1 Strengthening CRM
Supporting processes and competencies at Three Levels:
To make Customer Relationship Management effective in practice,
supporting processes must also be strengthened simultaneously. The various
Supporting processes and competencies include Product research and development,
Production management, Supply chain management, Supplier Relationship
Management and Customer Integration. Competency development must therefore
comply with supporting processes in the specified areas. Apart from the
functional skills and domain knowledge expertise, other supporting competencies
include problem solving capacity, interpersonal communication, leadership, team
work, analytical thinking, Trouble shooting, conceptual thinking, strategic
orientation, time management, Total quality management, quality circles,
management by objectives (M.B.O) and project management etc. Organizations
needs to focus on increasing the Customer base and Customer lifetime value by
calculating average sales per customer, average profit per customer and the
frequency of continuous purchase and the duration of Customer relationship management. The Customer Loyalty index which includes
Customer retention, Customer referral programs, Customer Satisfaction index and
Customer attrition rate may be taken into consideration while designing
appropriate levels of Customer Relationship Strategies to be implemented in
Organizations. To make Customer Integration strategies effective, Customer
Service which includes Contact Frequency, response time and number of service
activities between sales needs to be efficient and effort should be made to
reach the Customer Expectations.
2.1.2 Integration of knowledge
management system (K.M.S) and customer relationship management system (C.R.M):
The integration of knowledge management and customer relationship
management must be looked at in several crucial areas. The first step should
initiate strategic planning process which includes knowledge audit and
knowledge map that would act as a reference in development of knowledge
management to support customer relationship management. This includes people
(individual competency), process (structural capital and intangible
assets),Technology(I.T), Content
(explicit knowledge),and Communication(Internal and External).In the second
step, the various knowledge management sub-systems must be evaluated and then
applied when appropriate to the Customer relationship management system in the
effort to upgrade to level three of Customer relationship management. The third
step, as part of the support for the integration of knowledge management system
and customer relationship management system, the supporting processes of
customer relationship management must also be strengthened or upgraded in order
for the entire system to be effective and conducive to respond to the dynamic
ever changing Global markets. The fourth Step focus is on knowledge-based
customer relationship management, since it is intensive and highly dependent on
talented human resource. Hence one of the crucial supporting functions of the
integration is competency development, and this function is usually charged to
the responsibility of human resource management to give requisite training to
the Staff and mould them as per the environment. In the final step,
Organizations must be monitored for performance against expectation or goal for
any newly implemented system. Hence it is pre-requisite that Organizations must
also redesign the performance management system that includes various metrics
to fit the new strategic planning and implementation. The integration takes the
form of a strategic change program comprising of various execution projects in
given timeframe, and it is a challenge for the Organizations to overcome
Resistance to change during implementation of the new systems and procedures.
2.2 Customer Integration:
An increase in Organization productivity can be achieved through a
systematic integration of the Customer into product development and service
delivery process. As a systematic process, the Customer Integration needs to be
consolidated by Knowledge Management (KM) and Optimization process in the
Organization. Therefore the Customer
Integration into the whole product life–cycle is vital for Organization
productivity and competitiveness (Frohlich, M.T. and
Westbrook, R., 2001). The important Customer Integration Instruments include:
Customer Innovation Circles, Customer News Groups, Customer Focus Groups,
Customer Workshops and Quality Circles, Customer purchase behavior monitoring
Surveys, Customer Clubs and Advisory Boards. The effect of Customer
integration depends to a large extent on the degree of interaction these
customer integration instruments induce.. Each tiered level of integration can
be assigned to the different customer integration instruments,(Frohlich, M.T. and Westbrook, R., 2001).Customer
observation, for example, is characterized by a low level of integration
whereas integration as co-innovator or as lead user has a high level of
customer integration (Bowersox et al ;1999).An Organization’s ability to integrate and
internalize these external resources and innovations strongly depends on the
capability of the company’s employees to accept and adapt external knowledge,
information and innovation.(Cohen; Levinthal,
1990).This construct of the so-called absorptive
capacity actually consists of three steps. First, the value of
the external resource is perceived. Next, the external resource is internalized
within the company and, last but not least, the respective resource is put to
practice within the company.(Cohen; Levinthal, 1990)
This actual utilization leads to a shifting from formerly external to internal
knowledge. The newly internal knowledge holds the potential to create synergy
effects and is essential for the generation of sustainable competitive
advantages (Freiling, 2008) . Like all strategic
changes, it requires the buy-in and support of top management. Corporate
leaders must understand the implications of Knowledge Management (KM) and
Customer Relationship Management (CRM) and the strategic impact of their
integration. Second, corporate culture may change (i.e. knowledge sharing
behaviors, collaborative activities) that requires mindful and active planning
and management. Third, the change agent or program champion is also required
and he/she is usually designated as Chief Knowledge Officer (CKO). The CKO must
understand the issues of corporate strategy, human resource management,
Information technology, Corporate culture development, Change management,
leadership, team dynamics, as well as KM and CRM, and must have the persistence
to carry the program, in spite of the various Constraints which arise during
the process. Customer Integration is an important component of Customer
Relationship Management (CRM) process that contributes to a business’s ability
to compete—developed by coordinating the Supply chain (SC) with their critical
customers (Bowersox et al., 1999). Each business
environment has its own way of defining and identifying integration factors. A
make-to-stock (MTS) firm might narrow customer integration to incorporating the
retailers, while make-to-order and assemble-to-order organizations require a
more diverse approach. The Important
Customer Integration factors include: Communication of Availability of
Merchandise to Customers, Product Demand Planning Strategies, Product Delivery
and Speed, Customer Satisfaction, Customer Relationship Management Strategies,
C.R.M. Technologies viz: Data Warehousing,
Data-Mining ,Customer Retention Strategies, Information technology Services for
Customers viz: Application Software, Product
promotion web sites, Social Networks, Secure and Reliable online payment
systems and Ease and speed of Billing process.
The various Integration types may be divided as Transaction based,
Coordination based and Collaboration based in Organizations.
Table 2: Customer Integration Type Classification:
|
S.No |
Integration type |
Applications |
|
1 |
Transaction |
Application of private e-marketplaces for realizing transaction
execution - Complete solution realizing all steps of the transaction
process - Investigation of relationships in front-end supply chain - Investigation of performance issues |
|
2 |
Coordination |
Tools facilitating planning and scheduling in transportation - Link between coordination system implementation and partner
relationships |
|
3 |
Collaboration |
- Investigation of manufacturer-retailer collaboration in
private e-marketplaces - Application of e-business tools in Vendor Managed
Inventory(VMI) and Efficient Consumer Response( ECR) practices - Application of e-commerce tools fostering collaborative demand
management |
3. RESEARCH METHODOLOGY:
The Questionnaire has been drafted and designed with consultation
with Retail Consultants, Academicians and Practicing Managers in the Retail
Sector. The Questionnaire has been modified, as suggested by the Professionals
in the Retail Sector. The Seven point Likert Scale
has been used for Constructs of Independent Variables (CRM Strategies and
Customer Integration) and Dependent Variable (Organization
Competitiveness)which is a composite construct of increase in Sales, increase in market share,
increase in Customer Foot-Falls and Customer Satisfaction. The Survey Method
and the Sampling procedures were followed similarly as in the case of (Dillman, 2000,[17]) and (Churchill,1979,[18]). The total
sample for the study is taken as four hundred and the target respondents are
Customer Relationship Managers and Staff related to Supply Chain Operations in
the Retail Sector. The target respondent managers (400) were asked to rate their Customer
Relationship Management (C.R.M) practices and Customer Integration (C.I)
practices with reference to understanding of
Organization Competitiveness in view of ever increasing competitiveness
in Retail Sector. Altogether, 150 questionnaire responses were received during
the first two months and with consistent, follow up to the remaining
“non-respondents” additional 50 completed surveys were finalized from the
Survey. Therefore the total completed surveys were 200 which are about 50% of
the actual target respondents. In order to test for the presence of
non-response bias, comparisons were made between survey answers from early
respondents (within 2 months) and late respondents. A multivariate t-test
yielded no significant mean difference between the early and late respondents
at the 0.05 significance level. Therefore it suggests that non-response bias is
negligible in the study.
3.1
Dependent Variable: Organization Competitiveness
The Dependent Variable Organization
competitiveness is taken as a composite construct of increase in Sales,
increase in market share, increase in Customer Foot-Falls and Customer
Satisfaction. In the questionnaire,
the respondent managers were asked to “rate Organization competitiveness,
relative to important key Customer Relationship Management Strategies and
Customer Integration practices implemented in Retail Organizations. The Various
Independent Variables are Customer Relationship Strategies, Customer service,
Product Delivery and Speed, New product Development(N.P.D), Technology,
Outsourcing, Operations Dimensions, Customer Preference, Purchase Behaviour and
Payment Methods. These items were
measured on 7-point Likert scales with 1=”poor” to
7=”excellent”.
3.2
Independent Variables: Customer Relationship Management (C.R.M) and Customer
Integration (C.I): Customer Relationship Management (C.R.M) and
Customer Integration are taken as Independent Variables and the target
respondents were asked to rate their degree of acceptance with the following
statements. (1) Core Competencies of
C.RM. and their functional applications in the Organization (2) Designing short
and Long Term Relationships linked to Incentive and Recognition Systems with
Customers, (3) Identifying the First Level, Second Level and Third Level C.R.M
practices in Organizations (4)
Organization effort in implementing the Advanced Level of C.R.M in
Organization (5) Strengthening Support Processes and Core Competencies as part
of C.R.M Implementation (6) Integration of Knowledge Management system with
Customer Integration. Customer Integration is measured by the average response
rate in (1) Sharing New product Development with Customers, (2) Demand
forecasting through Customer buying behavior, (3) Taking Feedback on Customer
Satisfaction in terms of Customer Relationship Management strategies
implemented, (4) Implementing various levels of Customer Relationship
strategies, (5) Frequency of Customer Visits and rating Customer Services, (6)
Facilitating Downstream Customer Integration within the Organization. These
items were measured on 7-point Likert scales with
1=”strongly disagree” to 7= “strongly agree”. All the dependent and independent
variables are standardized (subtracted from the mean and then divided by the
standard deviation of the original) before interaction terms between
independent and Dependent variables, as suggested in (Aiken and West, 1991,[22]).
These ease the interpretation of results substantially. Tables 3 and 4 present
the summary statistics and Results of Multiple Regression and Factor Analysis.
The Table 3 Results and the existing Relationship between Independent
Variables and Dependent Variables may be interpreted as follows:
a) Multiple Regressions with Sales Growth as Dependent Variable: The
Independent Variables Customer Relationship Management Strategies (C.R.M),
Customer Service, Product Delivery and Speed are found to be significant at 1%
with Sales Growth as Dependent Variable. The Remaining Independent Variables
are not significant with Sales Growth as Dependent Variable.
b) Multiple Regressions with Market Share as Dependent Variable: The
Independent Variables Customer Relationship Management Strategies (C.R.M),
Customer Service, Product Delivery and Speed are found to be significant at 1%
with Market Share as Dependent Variable and the Independent Variable Sharing
New Product Development (NPD) Information is significant at 10%. . The Remaining Independent Variables are not
significant with Market share as Dependent Variable.
c) Multiple Regression with Customer Foot-Falls as Dependent Variable: The
Independent Variables Customer Relationship Management Strategies (C.R.M) ,
Customer Service, Product Delivery and Speed are found to be significant at 1%
with Customer Foot-Falls as Dependent Variable and the Independent Variable
Sharing New Product Development (NPD)Information is significant at 5%. The
Remaining Independent Variables are not significant with Customer Foot-Falls as
Dependent Variable. d) Multiple Regressions with Customer Satisfaction as
Dependent Variable. The Independent Variables Customer Relationship Management
Strategies (C.R.M) , Customer Service, Product Delivery and Speed are found to
be significant at 1% with Customer Satisfaction as Dependent Variable and the
Independent Variable Sharing New Product Development Information is significant
at 5%. The Remaining Independent Variables are not significant with Customer
Satisfaction as Dependent Variable.
Table 3: Results of Multiple Regression Analysis
|
Independent Variables |
Dependent Variable(Organization Competitiveness) |
|||
|
Sales Growth |
Market Share |
Customer Foot-Falls |
Customer Satisfaction |
|
|
CRM Strategies |
0.267* |
0.361* |
0.385* |
0.321* |
|
Customer Service |
0.285* |
0.325* |
0.278* |
0.291* |
|
Product Delivery and
Speed |
0.278* |
0.264* |
0.150* |
0.312* |
|
Sharing New Product
Development (NPD) information |
0.157 |
0.165*** |
0.180** |
0.192** |
|
Technology Dimension |
-0.115 |
-0.043 |
0.074 |
-0.045 |
|
Out Sourcing Dimension |
0.015 |
-0.006 |
-0.008 |
-0.007 |
|
Operations Dimension |
0.012 |
-0.014 |
0.082 |
-0.005 |
|
Customer Preferences |
0.014 |
0.05 |
0.124*** |
0.128*** |
|
Customer purchase
behaviour |
0.023 |
0.08 |
0.136*** |
-0.065 |
|
Payment Methods |
0.006 |
0.02 |
0.165 |
0.152 |
*Denotes significant at
1%, **Denotes significant at 5%, *** Denotes significant at 10%
Table 4: Results of Factor Analysis
|
S.No |
Factors |
Loadings |
Communalities |
|
1 |
CRM Strategies |
0.824 |
0.893 |
|
2 |
Customer Service |
0.812 |
0.892 |
|
3 |
Product Delivery and
Speed |
0.833 |
0.904 |
|
4 |
Sharing New Product
Development (NPD) information |
0.792 |
0.864 |
|
5 |
Technology Dimension |
0.801 |
0.885 |
|
6 |
Out Sourcing Dimension |
0.792 |
0.875 |
|
7 |
Operations Dimension |
0.782 |
0.891 |
|
8 |
Customer Preferences |
0.785 |
0.892 |
|
9 |
Customer purchase
Behaviour |
0.803 |
0.883 |
|
10 |
Payment Methods |
0.793 |
0.875 |
From Table 4, the Results of the ten Factors and their respective
Loadings and Communalities exhibit the contribution of each factor in terms of
Organization Competitiveness. The three important factors CRM Strategies,
Customer Service, Product Delivery and speed with their respective scores
exhibit inter-relationship in terms of Organization Competitiveness
4. ANALYSIS AND RESULTS:
The Hypotheses related to the Research study
and the model is presented in Fig. 1. and the Variables Customer Relationship
Management (C.R.M) Strategies, Customer Integration (C.I) and Organization Competitiveness
were tested using multiple regression procedure with contingency effects (Aiken
and West, 1991). The results for Independent Variables C.R.M Strategies,
Customer Integration and Dependent Variable Organization Competitiveness are presented
in Table 3, and the Model Results denoted significance at 1%, 5% and 10%
respectively. Table 4, exhibits the
results of Ten Factors with their respective loadings and communalities. The three
important factors CRM Strategies, Customer Service, Product Delivery and speed
with their respective scores were found to exhibit significant
inter-relationship in terms of Organization Competitiveness.
5. DISCUSSION
AND MANAGERIAL IMPLICATIONS:
In the present Research study, we have
investigated the impact of Customer Relationship Management (C.R.M) and Customer Integration on achieving Organization Competitivenesss.
Organization competitiveness in Indian Retail Sector is taken as a composite
construct of increase in Sales, increase
in market share, increase in Customer Foot-Falls and Customer Satisfaction.
More specifically, we examined the effects of Customer Relationship Management
(C.R.M) strategies and Customer Integration on various dimensions of
Organization competitiveness. Our results confirmed the positive impact of
Customer Relationship Management (C.R.M) and Customer Integration on
Organization Competitiveness in Indian Retail Sector. Customer integration (CI)
has been established to be an enabler for the effective continuation of a
business process and its growth. Several past and recent studies have been
supporting the importance of CI for the overall improvement of Organization
performance (Bowersox and Monash,
1989; Lee and Billington 1992; Jammernegg
and Kischka, 2005; Forme et
al, 2007; Zhao et al, 2008, Payne and Frow,
2004).Customer Integration(C.I)-related studies as they appear in literature
are either directed at the performance evaluation of an already implemented
integration process (Zhao et al., 2008; Chow et al, 2008; Forme
et al., 2007), or advocacy of the integration process (Jacob, 2006; Vickery et
al., 2003)—with both founded on an opinion-based survey of Customer
Relationship and Supply Chain (SC)
managers. Outside these two trends, (Perona
and Nicola, 2004; Jammernegg and Kischka,
2005) examined the ongoing integration processes between two firms and finally
recommended the inclusion of new attributes for the continuation and
improvement of the integration process. In consistent with the above research
studies and findings the Results in this study have indicated the main effects
and strong impact of Customer Relationship Management (C.R.M) strategies and
Customer Integration(C.I) on achieving Organization competitiveness in Indian
Retail Sector. In the present context,
the Indian Retail Sector is experiencing fierce competition from foreign
Retailers and ever changing Customer taste and preferences. The Customer unlike
ever before is ever demanding and product conscious while exhibiting Purchase
behavior. Information Technology (I.T)
and modern electronic devices has further equipped Customer with unlimited
product choice and speed in product delivery and service. (Chow et al, 2008)
confirmed that customer satisfaction can be the result of Organization
competency achievements, in terms of quality, service, operations, distribution
and design effectiveness—supporting the statement that the customer integration
process leads to increased customer satisfaction
6. CONCLUSION AND FUTURE RESEARCH:
The findings in the present Research Study has further highlighted the
role of Customer Relationship Management (C.R.M) strategies and Customer
Integration in achieving Organization competitiveness.
The Research
further supports the existing literature on Customer Integration (C.I) as contributed
by various eminent Authors and Academicians.
The Research study specifically highlights role of C.R.M Strategies and
Customer Integration in improving Organization competitiveness which is taken
as a composite construct of increase in Sales, increase in market share,
increase in Customer Foot-Falls and Customer Satisfaction. The Research
findings have made very significant recommendations to Indian Retail Sector
which are in the process of implementing various C.R.M Levels (First, Second,
Third Levels) to improve Customer Integration process. Therefore based on the
Research results, it may be stated that Customer Relationship Management
(C.R.M) strategies has significant positive effect on Customer Integration
(Ha1) and Customer Integration strategies has significant positive effect on
Organization Competitiveness (Ha2). The Hypothesis Ha1, Ha2 are accepted while
the Hypothesis Ho1, Ho2 are Rejected . The limitations to the study are that we
could include Customer Relationship Management and Customer Integration
mechanisms as a empirical data collection, since data collection in Indian
Retail Industry is a challenging task and the Target respondents could spend
limited time to respond to the Questionnaire content. The present Research on
Customer Relationship Management and Customer Integration can be extended in
various ways in future to examine its effects on Organization
competitiveness. The Indian Retail
Sector is all set to experience severe competition from Domestic and Foreign
Retailers and it is important for Retail Organizations to implement state of
the art Customer Relationship Management and Customer Integration strategies to
operate and survive in dynamic competitive markets. The Indian Retail Sector is
characterized by various influential variables viz: Talent pool availability, increasing Customer
base for Retail Sector, rising purchasing power, Infrastructure support and
Resource availability, New Retail Policy 2013 and favourable
demographics. The Indian Retail Organizations, with all the support of Retail
Associations and Retail Consultancies needs to gear up to meet the future
challenges and competition from foreign retailers. The Research findings in terms of the
importance of Customer Relationship Management Strategies and Customer
Integration Strategies may further facilitate the Indian Retail sector in
enhancing the scale and quality of operations.
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Received on 22.05.2014 Modified on 28.08.2014
Accepted on 11.09.2014 © A&V Publication all right reserved
Asian J. Management 5(4): Oct.-
Dec., 2014 page 394-400