Jokonya Dessertation-FINAL DRAFT (2)

8/2/2019 Jokonya Dessertation-FINAL DRAFT (2)

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APPROVAL FORM

The undersigned certify that they have supervised the student Protasius Jokonya

dissertation entitled, An investigation into the impact of Customers Relationship

Marketing Strategies on customer retention in the financial service industry. A case

study of Standard Chartered Bank, submitted in partial fulfilment of the requirements of

the Bachelor of Commerce in Marketing Management (Honours) Degree at Midlands State

University.

....

SUPERVISOR DATE

CHAIRPERSON DATE

.. ...EXTERNAL EXAMINER DATE

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Dedication.

This work is a special dedication to my mother.

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Acknowledgements.

The process of this dissertation writing is a wonderful learning experience in my academic

life which is filled with challenges and rewards. The completion of this study leads to a

new beginning and a step forward towards attaining my first degree.

First of all, I would like to express my sincere appreciation to my supervisors Mr. Chuma

and Mr Mupemhi who has guided, supported and given feedback throughout this research.

Without his continuous support and encouragement, it would have not been possible for the

completion. I also would like to express my sincere gratitude Mrs. L Evans, head of Client

Relationship department at Standard Chartered Bank Zimbabwe for her continuous efforts

in supporting this research.

Furthermore, I would like to thank all respondents from SCB staff to customer for spending

their valuable time accepting my interviews and questionnaires sharing information with

me to make the present study successful.

Finally, greatest thanks are directed to my family. Being loved supported by them

especially financially made me believe that I can do well in my research. Special thanks go

to my brothers Tafara and Mugove. To all my friends, at college I say, you are great

people.

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Abstract.

With the continuous growth of competition in the market place, understanding customers

has become more and more important method of marketing. Therefore, the purpose of this

research was to analyse the impact of the Customer Relationship Marketing (CRM)

strategies on customer retention, and to identify the CRM strategies adopted as well as to

establish the role and importance of the CRM strategies used. Based on the literature

review, the two most frequently mentioned dimensions used in evaluating customer

retention were chosen in the present study as: customer loyalty and customer satisfaction.

A descriptive research design was used, thus allowed for the collection of both qualitative

and quantitative data. A quantitative research was adopted and surveys were conducted

from both customers and bank perspective in the study. A sample size of a total of sixty six

was used. Face to face interviews and questionnaires were selected as the source of data

collection. The results show that CRM strategies have a positive impact on customer

retention as suggested by their positive effect on customer loyalty and satisfaction.

Furthermore the study offers suggestions to bank managers to strengthen their IT systems

to enhance differentiated services which can meet and exceed customers needs and

expectations leading to stronger relationships and high customer retention.

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TABLE OF CONTENTS

APPROVAL FORM ................................................................................................................................ ..i

Dedication................................................................................................................................................. ii

Acknowledgements.................................................................................................................................iii

Abstract.................................................................................................................................................... ivTABLE OF CONTENTS ..........................................................................................................................vLIST OF ACRONYMS ............................................................................................................... ...... .....vii

LIST OF TABLES ............................................................................................................ ....................viii

LIST OF FIGURES .................................................................................................................. ...... ...... ...ix

LIST OF APPENDICES ...........................................................................................................................x

CHAPTER I ....................................................................................................................................................xii

GENERAL INTRODUCTION ......................................................................................................................xii

1.0 Introduction ..........................................................................................................................................xii

1.1 Background of the Study .....................................................................................................................xii1.2 Statement of the Problem ....................................................................................................................xiv

1.3 Research Objectives ............................................................................................................................xiv

1.4 Research Questions ..............................................................................................................................xv

1.5 Significance of the Study .....................................................................................................................xv1.6 Delimitations .......................................................................................................................................xvi

1.7 Assumptions of the Study ...................................................................................................................xvi

1.8 Limitations .........................................................................................................................................xvii

1.9 Definition of Terms ...........................................................................................................................xvii10.0 Summery ..........................................................................................................................................xviii

CHAPTER II ................................................................................................................................. ...... ...... ....xix

THEORETICAL FRAMEWORK ............................................................................................................. ....xix

2.0 Introduction ..........................................................................................................................................xix

2.1 The Development of Relationship Marketing.....................................................................................xix

2.2 What Is Customer Relationship Marketing? .........................................................................................xx

2.4 Scope of Relationship Marketing .....................................................................................................xxiii

2.5 The goals of relationship marketing ........................................................................................... ...... ..xxv

2.5.2 Customer Retention........................................................................................................................xxvi2.6.1 The Six Markets Model................................................................................................................xxviiiFigure 2.1: The Six Markets Model..........................................................................................................xxviii

2.7 Customer Relationship Marketing Strategies.................................................................................xxx

2.7.1 Personalised service....................................................................................................................... xxxii

2.7.2 Service Quality..............................................................................................................................xxxii

2.7.3 Key Account Management (KAM) ..............................................................................................xxxiii

2.7.4 Service Recovery.......................................................................................................................... xxxiv

2.7.5 Total Quality Management (TQM)..............................................................................................xxxiv

2.8 Role and Importance of Customer Relationship Marketing............................................................xxxiv2.8.1 Customer Relationship Management............................................................................................. xxxv

2.8.2 Key Account Management...........................................................................................................xxxvi

2.8.3 Internal Marketing.......................................................................................................................xxxvii

2.8.4 Customer Service........................................................................................................................ xxxviii

2.8.5 Total Quality Management...........................................................................................................xxxix

2.8.6 Communication ...................................................................................................................................xl

2.9 The Impact of Customer Relationship Marketing on Customer Retention...........................................xl

2.9.1 Customer Loyalty...............................................................................................................................xlFigure 2.2: The Relationship Ladder ......................................................................................................... .....xli

2.9.2 Improvements in Customer Satisfaction..........................................................................................xlii

2.9.3 Profitability.................................................................................................................................. xliii

2.9.4 Opportunities for Value Adding Through Customisation........................................................xliv

2.9.5 Employee Satisfaction......................................................................................................................xlv

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2.10 Summary. ........................................................................................................................................xlvi

CHAPTER III .............................................................................................................................................xlviii

METHODOLOGY .................................................................................................................................. ...xlviii

3.0 Introduction .....................................................................................................................................xlviii

3.1 Research Design ...............................................................................................................................xlviii3.1.1 Descriptive Research Design ..........................................................................................................xlix

3.2 Sampling .................................................................................................................................................l3.2.1 Sampling Techniques/Approaches ......................................................................................................l

3.2.1.1 Probability Sampling ........................................................................................................................l

3.2.1.2 Non-probability Sampling ............................................................................................................ ....li

3.2.2 Population ..........................................................................................................................................lii

3.2.3 Sampling Frame .................................................................................................................................lii

3.2.4 Sampling Errors .................................................................................................................................lii3.2.5 Sample Size ......................................................................................................................................liii

3.3 Source of Data .....................................................................................................................................liv

3.3.1 Primary Sources ................................................................................................................................liv

3.3.2 Secondary Sources ............................................................................................................................liv

3.4 Research Instruments ...........................................................................................................................liv

3.4.1 Questionnaires ...................................................................................................................................lv

3.4.2 Interview ...........................................................................................................................................lvi

3.5 Data Collection Procedure ..................................................................................................................lvii3.5.1 Pilot Study .......................................................................................................................................lvii

3.5.2 Questionnaire Distribution .............................................................................................................lviii3.5.3 How Interviews Were Conducted ..................................................................................................lviii

3.6 Data Presentation and Analysis ..........................................................................................................lviii

3.7 Summery ............................................................................................................................................ ...lix

CHAPTER 4 ....................................................................................................................................................lx

DATA PRESENTATION AND ANALYSIS.................................................................................................lx

4.0 Introduction............................................................................................................................................ lx

4.1 Questionnaire Response......................................................................................................................... lx

Table 4.1: The Questionnaire Response Rate ..................................................................................................lx4.2 Customer Relationship Marketing Strategies used by Standard Chartered Bank................................lxi

Table 4.2: Staff Responses............................................................................................................................lxii

4.3.1 Customer Loyalty. ..........................................................................................................................lxiiiFigure 4.1 ......................................................................................................................................................lxiv

Figure 4.2 ................................................................................................................................................... ....lxv

Figure 4.3 ......................................................................................................................................................lxvi

4.3.2 Satisfaction......................................................................................................................................lxvi

Figure 4.4 .....................................................................................................................................................lxvii4.4 Importance and Roles of Customer Relationship Marketing...........................................................lxviii

Figure 4.5 ....................................................................................................................................................lxviii

Figure 4.6 ......................................................................................................................................................lxix

Table 4.3: Managers Responses....................................................................................................................lxx

4.5 Persistence of Problems ....................................................................................................................lxxi

4.6 Summery............................................................................................................................................. lxxi

CHAPTER V ...............................................................................................................................................lxxii

CONCLUSIONS AND RECOMMENDATIONS...................................................................................... lxxii5.0 Introduction.......................................................................................................................................lxxii

5.1 Summary..........................................................................................................................................lxxiii5.1 Conclusions ............................................................................................................................. ...... ...lxxiii

5.1.1 Customer Relationship Marketing Strategies Adopted By SCB...................................................lxxiii

5.1.2 Impact of Customer Relationship Marketing Strategies on Customer Retention .........................lxxiv

5.1.2.1 Customer Loyalty.......................................................................................................................lxxiv

5.1.2.2 Customer Satisfaction................................................................................................................. lxxiv

5.1.3 Importance and Roles of Customer Relationship Marketing. .......................................................lxxv

5.2 Recommendations............................................................................................................................lxxvi

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5.3 Suggestion for Future Research .......................................................................................................lxxix

References ..............................................................................................................................................lxxix

Appendix A: Approval letter....................................................................................................................lxxxiv

Appendix B: Customer Questionnaire .......................................................................................................lxxxv

Appendix C: Staff Questionnaire ....................................................................................................... ....lxxxviiiAppendix D: Interview Schedule for Managers .............................................................................................xc

LIST OF ACRONYMS

CRM Customer Relationship Marketing

SCB Standard Chartered Bank

KAM Key Account Management

TQM Total Quality Management

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SME Small to Medium Enterprises

NGO Non-Governmental Organisation

NPD New Product Development

LIST OF TABLES

Table 4.1: The Questionnaire Response Rate.....................Error: Reference source not found

Table 4.2: Staff Responses.................................................. Error: Reference source not foundTable 4.3: Managers Responses.........................................Error: Reference source not found

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LIST OF FIGURES

Figure 2.1: The Six Markets Model.................................... Error: Reference source not found

Figure 2.2: The Relationship Ladder..................................Error: Reference source not found

Figure 4.1: Customers Response.......................................Error: Reference source not foundFigure 4.2: Customers Response.......................................Error: Reference source not found

Figure 4.3............................................................................Error: Reference source not found

Figure 4.4: ..........................................................................Error: Reference source not found


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LIST OF APPENDICES

Appendix A: Approval letter..............................................Error: Reference source not found

Appendix B: Customer Questionnaire................................Error: Reference source not found

Appendix C: Staff Questionnaire........................................ Error: Reference source not foundAppendix D: Interview Schedule for Managers.................Error: Reference source not found

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CHAPTER I

GENERAL INTRODUCTION

1.0 Introduction

This chapter introduces the research problem. It focuses its attention on the background of

the problem. This chapter forms the back-borne of the research itself as it states the

statement of the problem, the main research objectives and questions as well as the

background of the study, which includes a brief history of the organisation. The

significance of the study was also discussed as well as the assumptions that will be made

when carrying out this work. The researcher encountered a number of drawbacks during

the study and they were also discussed at the end of this chapter as limitations.

1.1 Background of the Study

The Standard Chartered Group was formed in 1969 through a merger of two banks; The

Standard Bank of British South Africa founded in 1863, and the Chartered Bank of India,

Australia and China, founded in 1853. Both companies were keen to capitalise on the huge

expansion of trade and to earn handsome profits to be made from financing the movement

of goods from Europe to the East and to Africa.

Standard Chartered Bank (SCB) has a history of over 150 years in banking and operates in

many of the worlds fastest growing markets with an extensive global network of over

1400 branches (including subsidiaries, associates and joint ventures) in over 50 countries in

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the Asia Pacific region, South Asia, the Middle East, Africa, the United Kingdom and the

Americas.

By 1980 forty branches were established in Zimbabwe. In 2002 saw the aggressive policies

being implemented by the Reserve Bank of Zimbabwe in the banking sector, which caused

the reduction in the number of its retail shops (Banking Halls) to only twenty-four branches

in the entire Zimbabwean market.

Standard Chartered drives over 90% of its profits from Asia, Africa and the Middle East.

Serving both consumer and wholesale banking customers world wide, the bank combines

deep local knowledge with global capability to offer a wide range of innovative products

and services as well as award-winning solutions.

Trusted across its network for its standard of governance and corporate responsibility,

Standard Chartered takes a long-term view of the consequences of its actions to ensure that

the bank builds a sustainable business through social inclusion, environmental protection,

good governance and Customer Relationship Marketing (CRM) to ensure customer

retention. The intensity of competition over the past years of operation in the banking

industry world over has been increased, Standard Chartered Bank embedded a culture of

continuous improving the way it employs work to become operationally excellent through

Customer Relationship Marketing Strategies. Relationship Marketing is a strategy of

developing strong customer loyalty and forging long-term partnership by creating satisfied

customers who will buy additional services from the firm. Therefore Standard Chartered

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must adopt strategies that entail forging long-term partnerships with customers in order to

survive.

1.2 Statement of the Problem

The current banking sector is characterised by intense competition due to many players and

also given the current harsh economic conditions in Zimbabwe, the players in the sector,

Standard Chartered Bank included, are being affected negatively by these variables. It has

thus become imperative for the company to seek the most economical and profitable

methods of retaining clients. In light of this problem, this research seeks to determine

whether or not the CRM strategies helped SCB on retaining customers to curb the

competition.

1.3 Research Objectives

To identify the CRM strategy adopted by Standard Chartered Bank.

To establish the relative importance and role of CRM strategies to the organisation.

To analyse the impact of CRM strategies on customer retention in the financial service

industry.

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1.4 Research Questions

What is the impact of CRM strategies on customer retention at SCB?

What are the CRM strategies used by SCB?

What is the importance and role of CRM strategies to the organisation?

How can SCB improve its improve its relationships with its customers to attain high

levels customer retention.

1.5 Significance of the Study

Having carried this research project, the researcher gained experience on carrying out a

detailed research hence this serve as a good foundation for future work.

The study focused on management issues and challenges and as such the recommended

solutions can be implemented without any conflict of interest or much resistance.

The research project provides information on how best can customers be delighted

through the CRM strategies.

The marketing information from the research can be used as a basis for improvements.

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Some of the loopholes in the strategies were exposed so that a course of action can be

taken.

This research project will help other students in their research work, especially those

who will be interested in the same subject.

The research project was done in partial fulfilment of the B. Com Marketing degree

hence will enable the researcher to attain his academic objective.

1.6 Delimitations

The research was conducted in Harare at Standard Chartered Bank head office at Old

Mutual Centre, Priority branch and at its largest branch, Africa Unity Square branch. The

Client Relationship department staff, the Marketing manager and some members of his

staff, Priority banking staff, Africa Unity Square branch staff as well as customers was

considered as respondents. The study undertaken covered the period from 2003 to the year

2008 with the year 2003 taken as the starting point as it is a year after most of economic

challenges unfolded in Zimbabwe which extremely needed the support of competitive

strategies like CRM.

1.7 Assumptions of the Study

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The researcher assumed that respondents were provided with accurate and right

information.

The researcher got favourable co-operation from proposed respondents. It was also

assumed that the data from respondents was adequate to deduce findings and conclusions.

The researcher assumed that the findings attained at the organisation apply to most banking

firms in Zimbabwe.

Also it was assumed that the limitations encountered did not affect negatively the validity

of the research.

1.8 Limitations

Confidentiality in the financial sector is very vital for competitive and security reasons,

therefore, some of the vital information required by the researcher was deemed confidential

by the bank, especially that of monetary figures.

1.9 Definition of Terms

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Customer Relationship Marketing is a business approach that integrates people,

processes and technology to maximise the relations of an organisation with all types of

customers.

Service quality is customers overall impressions of an organisations services in terms

of relative superiority or inferiority.

Service recovery is the actions of a service provider to mitigate and or spare the damage

to a customer that results from a providers failure to deliver a service as designed.

Total Quality management is a philosophy of management that is driven by customer

needs and expectations and touches on continual improvements in work processes

Customer Relationship Management - is a customer database management which

involves managing detailed information about an individual customers and carefully

managing customer touch points in order to maximise customer loyalty.

10.0 Summery

This chapter focused on the research topic, statement of the problem, objectives and the

significance of the study. It also focused on the definition of terms that were used in this

research.

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CHAPTER II

THEORETICAL FRAMEWORK

2.0 Introduction

One of the major developments within marketing has been the evolution from transaction

to relationship marketing. Rather than solely focussing on the 4Ps - product, price,

promotion, and place numerous companies have changed their business processes so that

they focus on the most important asset of their economical viability: their current and

potential new clients. In other words, today's companies are seeking to acquire, develop,

and retain profitable customer relationships (Peck 1999).

2.1 The Development of Relationship Marketing.

The initial research was done Berry L and Jagsheth (Berry L 1982) both of whom were

early users of the term Relationship Marketing and by marketing theorist Levitt T (1983)

who broaden the scope of marketing beyond individual transactions?

In practice Relationship Marketing originated in industrial business to business markets,

where long term contracts have been quite common for many years. According to Berry

(1982) Relationship Marketing can be applied where there are alternatives to choose from,

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when the customer makes selection decision and when there is an ongoing and periodic

desire for the product or service.

2.2 What Is Customer Relationship Marketing?

Customer Relationship Marketing is a subset of Relationship Marketing, therefore depends

with the existence of Relationship Marketing. Relationship marketing is a philosophy of

doing business, a strategic orientation that focuses on keeping and improving relationships

with current customers rather than on acquiring new customers (Berry1983). De Young B

(1998) also defined Relationship Marketing as the process of attracting, maintaining and

enhancing relationships with key people. By definition in its simplest form, Zikmund, et al,

2003 argued that Relationship Marketing is a process of how to manage an organisations

relationships with its customers. Similarly, Belch and Belch 2003 argued that the focus of

market driven companies is on developing and sustaining relationships with their

customers. This has led to a new emphasis on relationship marketing, which involves

creating, maintaining and enhancing long term relationships with individual customers as

well as other stakeholders for mutual benefit.

Customer Relationship Marketing can therefore be defined as a business approach that

integrates people, processes and technology to maximise the relations of an organisation

with all types of customers. Therefore Customer Relationship Marketing can also be

defined as a practice that encompasses all marketing activities directed towards

establishing, developing and maintaining successful customer relationships.

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The focus of Customer Relationship Marketing is on developing long term relationships

and improving corporate performance through customer loyalty and customer retention.

Egan (2001) also argued that, the true value of Customer Relationship Marketing is to

transform strategy, operational process and business functions in order to retain customers

and increase customer loyalty and profitability.

In todays competitive business environment it is important for a company to work as a

team to create and maintain successful customer relationships whilst in traditional

marketing, each sale and purchase follow an action flow that could be characterised as an

'attract exchange separate' process so that business growth and success is formed of a

continuum of independent profitable sales events (Egan, 2001). In contrast, relationship

marketing is about building long-term relationships with a network of influence markets in

order to understand and, if possible, anticipate their needs and wants to better satisfy and

retain them. It has been argued that this ultimately leads to increased market share and

profit (Buttle, 1996; Fornell, 1992; Hillier 1999; Rust, et al, 1996). Moreover, the

probability of a satisfied customer to repurchase is higher than the one of a dissatisfied one

(Reichheld, 1994). Indeed, relationships, networks, and interactions enable companies to

create a more appropriate business climate and to better satisfy the influence markets. For

most businesses the cost of acquiring a new customer is much higher than the cost of

selling more to existing customers, so companies find it more and more important to work

to improve customer satisfaction. Building constructive relationships with selected target

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audiences is more important to an organisations long term marketing success than

acquiring widespread public awareness.

Rogers and Bitner (1995) quoted in Peck et al 19999, identified factors that have

contributed to the development and growth of in the importance of Customer Relationship

Marketing and these are the following:

The increasingly global and intense nature of competition.

More demanding type of customers.

Increased fragmented customer markets.

The inadequacy of quality in itself to create sustainable competitive advantage.

The influence of technology in almost all products and services.

Growth in service economies, which depend on the benefits of retaining existing

markets and / or customers.

Limitations of the traditional marketing elements.

Therefore I can conclude that, given such issues, organisations can no longer use the

traditional marketing mix elements alone, like for instance the use of product and pricing

strategies as the product differentiation tool to increase sales. The products and services are

now similar and thus the only way to attract customers is now through creating and

managing sustainable relationships with them.

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2.3 The Relationship Marketing Principle.

Customer Relationship Marketing is not about having a buddy to buddy relationship with

your customers. Customers do not want that. Customer Relationship Marketing uses the

event driven tactics of customer retention marketing, but treats marketing as a process over

time rather than single unconnected events. By moulding the marketing message and tactics

to the lifecycle of the customer the Relationship Marketing approach achieves very high

customer satisfaction and is highly profitable.

The Relationship Marketing process is usually defined as a series of stages and there are

many different names given to these stages depending on the marketing perspective and

type of business (enwikipedia.org/wiki/rm). Using the Relationship Marketing approach,

you customise programmes for individual customer groups and the stage of the process

they are going through as opposed to some forms of database marketing where everybody

would get virtually the same promotion, with perhaps a change in offer. The stage in the

customer lifecycle determines the marketing approach used with the customer.

2.4 Scope of Relationship Marketing

Relationship marketing has been strongly influenced by reengineering. According to the

reengineering theory, organisations should be structured according to complete tasks and

processes rather than functions. The marketing mix approach is too limited to provide a

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usable framework for assessing and developing customer relationships in many industries

and should be placed by an alternative model where the focus on customer and

relationships rather than markets or products.

In contrast relationship marketing is cross functional marketing. It is organized around

processes that involve all aspects of the organization. In fact, some commentators prefer to

call relationship marketing Relationship Management in recognition of the fact that it

involves much more than that which is normally included in marketing.

Christopher M, et al, (1991) claims that relationship marketing has the potential to forge a

new synthesis between quality management, customer service management and marketing.

They see marketing and customer service as inseparable.

In spite of this broad scope Relationship Marketing has not lost its marketing orientation

though. It involves the application of the marketing philosophy to all parts of the

organization. Every employee is said to be part time marketer. The way McKenna R (1991)

puts it, marketing is not a function, it is a way of doing business.marketing has to be all

pervasive, part of everyones job description from the receptionist to the board of

directors.

Because of this, I can safely remark that relationship marketing is a more pure form of

marketing than traditional marketing.

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NPV) depending on the industry. Carrol P and Reichheld (1992) dispute the calculation

they result from faulty cross-sectional analysis of data.

However according to Buchanan and Gilles (1990) the increased profitability associated

with customer retention efforts occurs because of several factors that occur once a

relationship has been established with a customer.

The cost of acquisition only occurs only at the beginning of a relationship.

Account maintenance costs decline as a percentage of total costs (or a percentage of

revenue).

Long term customers tend to be less inclined to switch, and also tend to be less

price sensitive.

Long term customers may initiate free word of mouth promotions and referrals.

Long term customers tend to be satisfied with the relationship and become loyal.

Regular customers tend to less expensive to service because they are familiar with

the process, require less education.

Increased customer retention and loyalty makes the employees jobs easier and

more satisfying. In turn happy employees' feedback into better customer satisfaction

in a virtuous circle.

In my opinion, it is clear that many studies have shown that it can cost anywhere from four

to ten times as much to acquire new customer as it does to maintain repeat buyers, therefore

Customer Relationship Marketing is viable, as it focuses its emphasis on customer retention

than customer attraction.

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2.6 Application.

Customer Relationship Marketing can be applied in an organisation with the aid of the Six

Markets Model by Christopher, Payne and Ballantyne (1991).

2.6.1 The Six Markets Model.

One of relationship marketings features is that it recognises a diversity of key markets,

which are to be considered and addressed by companies to successfully achieve their goals.

According to Christopher, et al (1991) the central market, the customer market, is

supported by five equally important markets (Figure 2.1) and to be effective and provide

value, marketers must consider all six markets. Many organisations have adopted the six

markets model to develop plans for each of their influence markets (Meldrum, 1999).

Figure 2.1: The Six Markets Model.

Source: Payne et al(1995)

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2.6.1.1 Referral Marketing - is developing and implementing a marketing plan to

stimulate referrals. This is often the most effective part of an overall marketing plan and the

best use of resources. Referral markets are a critical means of generating referrals of

business and increasing customer revenues (Peck H et al, 1999).

2.6.1.2 Marketing suppliers is aimed at ensuring a long term conflict-free relationship in

which all parties understand each others needs and exceeds each others expectations.

Such a strategy can reduce costs and improve quality.

2.6.1.3 Influence Markets involves a wide range of sub-markets including government

regulators, lobbyists, standard bodies, stockholders, bankers, venture capitalists and other

stakeholders. Campbell quoted by Peck H (1999) has provided some compelling arguments

for the need to consider the constituent groups in influence markets. He argues that

companies compete for space in an economic jungle and that to survive in this jungle a

company must win the loyalty of important groups and that it must maintain loyalty from

these groups; without this loyalty the companys space will gradually erode until it

disappears.

2.6.1.4 Customer Markets Chartered Institute of Marketing (1994) confirms that in the

views of experienced practitioners relationship building is rapidly becoming the most

powerful weapon in the professional marketers armoury and that this relationship building

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and maintenance is taking place at each level of the organization. Peck H (1999) also

argued that many organizations market both to trade customers (intermediaries) and

consumers (end users) but their relative power within the value system is likely to

determine which relationships are cultivated most assiduously.

2.6.1.5 Recruitment Markets If an organization want to attract the best people, it must

present itself to influential third parties like colleges, universities, recruitment agencies or

other employers and to the individuals themselves as the employer of first choice. But if it

wants to keep valuable employees, it must be the employer of first choice.

2.6.1.6 Internal Markets Judd (1987) quoted by Peck 1999 et al, observed that

substantive attempts to conceptualize the employees of an organization as an element of the

organisations marketing strategy were noticeably absent from the academic marketing

literature. In resent years Schlesinger and Heskett build on earlier research, emanating

initially from organizational behaviour specialists, which clearly linked the constructs of

employee satisfaction and retention to customer satisfaction and retention in service

business.

2.7 Customer Relationship Marketing Strategies.

Strategy is the art of creating value. It provides the intellectual frameworks, conceptual

models and governing ideas that allow a companys managers to identify opportunities for

bringing value at a profit. In this respect, strategy is the way accompany defines its

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business and links together the only two resources that really matter in todays economy,

knowledge and relationships or an organisations competitors and customers.

Relationship Marketing, unlike the traditional marketing approach which was based upon

the management of the marketing mix, instead is built upon the management of a number

of stakeholder domains. That is the six markets. The Relationship Marketing philosophy

that is now is grounded on the tenet that as long as customers and consumers continues to

perceive that they are receiving superior value from a specific source of supply, then they

will remain loyal (Peck H 1999). Whilst the conventional marketing mix elements

product, price, promotion, and place are still critical strategies they need to be augmented

by elements like people and processes which enable customer and value to be enhanced.

People are the brand hence the significant attention paid to attracting, training and

motivating employees who can share the values of the business and the project those values

at every point of customer interaction. Much has been written on the connection between

employee satisfaction and customer satisfaction and the importance of the internal market

is now generally recognised.

Processes are the way we do things. They are linked sets of activities that enable market

demand to be satisfied. Processes must be managed on a cross-functional basis because

they are integrative they are the means by which customer and consumer value is generated

and determined.

The core processes of any business include:

The new product development process.

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The order fulfilment process.

The supplier management process.

The customer management process.

Therefore some of the Customer Relationship Marketing Strategies that can be used are as

follows:

2.7.1 Personalised service.

One of the key to success in the demanding markets the way the customers are supported

and serviced. Customer service is the result of the combined impact of all the points of

contract between the firm and its customers. It is increasingly seen as a powerful

differentiator in markets where the core products is essentially the same. There is a

significant advantage to be gained for seeking out the precise requirements of individual

customers and then, wherever possible, personalising and customising the service package

(Peck H 1999).

2.7.2 Service Quality.

Service quality has been defined as customers overall impressions of an organisations

services in terms of relative superiority or inferiority (Johnston, 1995). Service quality is

commonly noted as a critical prerequisite and determinant of competitiveness for

establishing and sustaining satisfying relationships with customers. Previous studying

suggests that service quality is an important indicator of customer satisfaction (Spreng and

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Machoy, 1996). Attention to service quality can lead an organization different from other

organizations and gain a lasting competitive advantage (Morre, 1987).

It should not only meet but also exceed customer expectations and should include a

continuous improvement process (Lloyd-Walker & Cheung, 1998). Banks have realised the

importance of concentrating on building strong customer relationships through service

quality as a way to increase customer satisfaction and loyalty, and to improve their core

competence and business performance. This realisation stems from believing that service

quality is difficult for competitors to copy (Reichheld & Sasser, 1990). Customers

evaluate banks performance mainly on the basis of their personal contact and interaction

(Grnroos, 1990). Judgments are formed by comparing service expectations with the

service actually received (Bloemer et al., 1998). Financing service quality is considered a

winning strategy because it increases customer satisfaction, and maximizes a companys

profits and market share (Lee et al., 2000; Newman et al., 1998).

2.7.3 Key Account Management (KAM)

If a company keeps on acquiring customers, the quality of the customers acquired may

decline resulting in higher costs and lower revenues. There is thus a diminishing return on

acquired customers (Anderson and Mittal, 2000). Bearing this in mind, companies focuses

on their most profitable customers and keep relationship marketing a relatively

discriminated practice. This CRM strategy is called Key Account Management.

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2.7.4 Service Recovery.

Service Recovery can also be used as a strategy in Customer Relationship Marketing.

Zeithaml and Bitner (2003) defined service recovery as all the actions that an organisation

takes in response to a service failure. An effective service recovery can turn angry

frustrated customers into loyal clients and may create more goodwill than if things had

gone smoothly in the first time. Gummerson (2002) also reiterated that service recovery is

the answer to service failures that cause dissatisfactions. In every relationship disputes and

misunderstandings due to service failures are inevitable, and then service recovery is the

answer to such problems.

2.7.5 Total Quality Management (TQM).

Dale et al (2004) defined TQM as a philosophy of management that is driven by customer

needs and expectations and touches on continual improvements in work processes. TQM

focuses on customer needs, emphasises participation and teamwork amongst employees. It

seek to create a culture in which all employees strive to continuously improve the quality of

organisations products or services, customer response time and work processes.

2.8 Role and Importance of Customer Relationship Marketing.

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2.8.1 Customer Relationship Management.

Customer Relationship Management is a customer database management activity (Kotler

2000). By this definition it involves managing detailed information about an individual

customers and carefully managing customer touch points in order to maximise customer

loyalty. The Gartner Group argues that the term Customer Relationship Management

describes methodologies, software, and usually internet capabilities that help an enterprise

manage customer relationships in an organised way. Customer database is an organised

collection of comprehensive data about individual customers or prospects that is current,

accessible and actionable for such marketing purposes as lead generation, lead

qualification, and sale of a product or service or maintenance of customer relationships.

Database marketing is the process of building, maintain and using customer databases and

other databases (products, suppliers, resellers) for the purpose of containing and attracting

in a way that builds relationships with customers.

Companies that know their individual customers can customise their products, services,

offer, message, shipment method and payment method to maximise customer appeal.

Therefore the focus of Customer Relationship Management is also on best serving the

needs of each customer on a personal level rather than service the needs of target markets

as a whole (www.freeesays.com).

The database can be used to craft strategies that will meet the different customers and also

in improving service delivery. Armed with information in its customers database, a

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company can achieve much more target precision that it can under mass marketing,

segment marketing, or niche marketing, (Kotler P 2000). The company can identify small

groups of customers to receive fine-tuned marketing offers and communications. Customer

Relationship Marketing can provide analysis of customer data that can result in an

improvement in process or product. They can also achieve an improvement in marketing

process because they help enterprises identify and target their best customers. An important

question to consider is if 20 percent of customers bring in 80 percent of revenue, why not

serve that 20 percent?

The customer databases provide information for, and perform, customer segmentation

which helps marketers focus their efforts on where they will make the greatest impact on

retaining their customers.

2.8.2 Key Account Management.

One of the successful roles of Customer Relationship Marketing is customer retention

aided by key account management (KAM). A key account is a customer in business to

business market identified by the selling company as of strategic importance (Buchanan, &

Gilles, 1990). KAM is based on the Parreto Law which states that 80 percent of the total

sales volume of a business is generated by just 20 percent of the customers, therefore the

importance of identifying and retaining the best customers. Thus these customers need a lot

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of attention and there is need to develop them profitably. A number of companies adopted

this concept of KAM through Customer Relationship Marketing, for example Standard

Chartered Bank Priority Banking and Barclays Banks Prestige Banking where only the

lucrative customers are served luxuriously. For this to be achieved there is need for the

company to train its staff to be able to effectively manage the key accounts.

The importance of KAM seems to be growing in importance as a tool to retain customers,

particularly in the organisational market sector of the marketing environment. McDonald,

Rogers and Woodburn quoted in Beamish K (2001), basing on the components of customer

retention management, highlighted on how do you continue to satisfy customers in this

changing environment. They formulated a table which provides with an insight into the

issues driving customers and perhaps a company can respond to them directly through their

customer relationship strategy. Beamish (2001) went on to say that it is essential when

pursuing relationships and indeed managing relationships that organisations have a good

understanding of each other.

2.8.3 Internal Marketing.

Employee satisfaction and retention is directly linked to customer satisfaction and retention

in service business (Schlesinger & Heskett, 1991 in Peck et al 1999). Hence the importance

of internal marketing an offspring of Customer Relationship Marketing, which is an

approach by a service firm to effectively train and motivate its customer contact employees

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and all the supporting service people to work as a team to provide customer satisfaction

(Kotler P & Armstrong 2000). This will in turn lead to customer retention.

Payne (1995) went on to say that Internal Marketing is also used to internally sell strategic

initiative and objective. Internal Marketing often forms part of the quality and service

initiatives with the objectives of getting everyone in the organisation oriented towards the

same direction, to develop awareness of internal and external customers and to foster a

team spirit within business units. To this research this will be to develop and maintain

relationships that will lead to the growth of the business through customer retention.

2.8.4 Customer Service.

Customer Relationship Marketing plays a role of overseeing the provision of effective

customer service. Customer service encompasses all points of contact between a supplier

and a buyer and includes tangible as well as intangible elements (Christopher et al 1991).

Customer service is the service provided in support of a companys core products

(Zeithaml V & Bitner M 2003). They went on to say that quality customer service is

essential to build customer relationships and that it should not be confused by the service

provided for sale by accompany. Maintaining effective customer service helps to build and

maintain customers relationship that is the key success in e-commerce (Kotler, 2003). The

customer pays for the service provided by the company but customer service is not paid

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for. Customer service help customers in a number of ways which includes, answering

questions, taking orders, dealing with billing issues and handling complaints leading high

levels of satisfaction and retention.

2.8.5 Total Quality Management.

Total Quality Management (TQM) is an organisation wide approach to improve the quality

of all the organisations processes, products and services (Kotler P 2000). John Lindgren

quoted by Kotler (2000) said TQM is the commitment by all departments to the strategic

goals of achieving quality. It is also the role Customer Relationship Marketing to keep the

quality of service delivery high through TQM to make sure its key customers are satisfied.

Standard Chartered Bank implemented TQM courtesy of Customer Relationship Marketing

by encouraging its departments, through rewarding them for improving the quality of their

own operations with the goal of improving the quality of the overall product or service.

Continuous improvement in quality means that the customer will continue to be part of the

organisation since each he or she visits the company, he or she will experience something

new and will not be bored by the service. The general principle of TQM is important if an

organisation is to have excellent customer relationships. It emphasise on continuous

improvement thus allowing the customer to get satisfaction each time they receive services

or products from the company.

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2.8.6 Communication

Another role of Customer Relationship Marketing is to enhance effective communication

within and outside the organisation knowledge transfer to clients and developing client

relationships are intertwined, and the success of each depends largely on how customer

contact is structured and managed (Dawson, 1999). He went on to say that knowledge

transfer is pivotal in adding value to clients.

For a successful Customer Relationship Marketing there is need for effective

communication. The customer must be able to contact the organisation, to return a product,

to contact technical support and to communicate with human customer service

representatives.

2.9 The Impact of Customer Relationship Marketing on Customer Retention.

2.9.1 Customer Loyalty.

To achieve customer loyalty is highly challenging, as it looks at all customer groups that

are involved in the relationship marketing process. Beamish (2000) highlighted that in

order for CRM to be truly implemented and part of the business culture, it focuses on all

customer groups. Relationship building is a long term process, and in order for customer

loyalty to be achieved, there are a number of key identifiable stages that the relationship

moves through. Payne developed he called the relationship ladder of customer loyalty

shown below.

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Figure 2.2: The Relationship Ladder

Source: Payne et al (1995)

Advocate

Supporter

Client

Customer

Prospect

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The ladder highlights the process from targeting the customer, to adoption, to developing

the relationship from customer to long term client. From here it is then essential to

encourage them to become both a support and advocate of the company, in order that they

can become marketing tools, not only retaining them, but also using them to grow the

market. The key objective of CRM in this context therefore will be to actually switch the

power base of loyalty to a more long term relationship and indeed partnership which is the

highest level of customer retention.

Newman et al. (1998) also indicated that an increase of only 5 per cent in customer loyalty

would lift profitability about 2585 per cent.

2.9.2 Improvements in Customer Satisfaction.

Customer satisfaction depends on the products perceived performance relative to a buyers

expectations. Customer satisfaction is the extent to which a products perceived

performance matches a buyers expectations (Kotler P, 2000). Adrian Payne established the

link between customer satisfaction and relation strength. He concluded that customer

satisfaction is only one dimension in increasing relationship strength.

Customer Relationship Marketing leads to customer satisfaction since all the organisational

activities will be directed the overall customer satisfaction. Customer Relationship

Marketing aim to delight customers by promising only what the company can deliver, then

delivering more than it promised through customised products and services.

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Bain & Co maintained that one of the key elements of business success and profitability is

customer satisfaction, the more satisfied the customer, the more durable the relationship,

and the longer this lasts, the more money the company stands to make (Buchanan and

Gilles 1990). Furthermore, Zairi (2000) found that satisfied customers possibly share their

experiences with five or six people while dissatisfied clients might inform another ten.

We can see the importance of not just finding customers but of keeping them, satisfying

them and growing with them as well. Customer Relationship Marketing is oriented toward

the long term, this means that companies must aim high if they want to hold on to their

customers. Highly satisfied customers produce several benefits it the company, they are

less price sensitive and they talk favourably to others about the company and its products

and remain loyal a longer period that are high customer retention levels.

2.9.3 Profitability.

It is indeed the time that big databases are expensive to develop and maintain different

organisations like Wal Mat have spent literally hundreds of millions of dollars on their

technology to develop and maintain their database. In most marketing texts, it is known

that acquiring customers is much more expensive than keeping them. Many studies have

shown that it can cost anywhere from 4 to 10 times as much times to acquire a new

profitable customer as which does to maintain repeat buyers. These statistics are one of the

driving forces behind the move to Customer Relationship Marketing, which is more

profitable.

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According to Peck et al (1999) it is customers that generate profits not products. Products

create costs but customers create profit. One of the key tenets of Customer Relationship

Marketing is that ideally the firm should only seek high intensity relationships with those

customers who are, or who have the ability to become high performing clients in terms of

profitability. The Parreto Law us not only that 80 percent of the total sales volume of a

business is generated by just 20 percent of the customers, but the likelihood is that 80

percent of the total costs of servicing all the customers will be caused by only 20 percent of

the customer (but probably not the same 20 percent) this means Customer Relationship

Marketing reduces costs by servicing not everyone, hence increase profits. A profit making

organisation is able to retain its customers for longer period of time than a loss making

organisation.

2.9.4 Opportunities for Value Adding Through Customisation.

High intensity customer relationships are based upon long-term collaboration and

interaction. These types of relationships are really partnerships and alliances and they work

best when customers seek tailored solutions for their own specific buying problems. In

other words, the customer and the supplier organise the advantages to be gained through

closer relationships.

In industrial marketing, these collaborations often extend to strategic alliances and joint

ventures. There will be recognition of the mutual benefits of linking each others value

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chains, in sharing resources, knowledge bases and capabilities to achieve agreed strategic

goals. A noticeable example of such a scenario is a strategic alliance formed between Delta

Beverages and Zimglass. This was as a result of Deltas demand for tailored packaging

empty bottles for their numerous kinds of beverages.

In consumer markets the opportunities where standard products are subsequently

personalised and marketing communication tailored, particularly through direct mail and

database marketing leads to customer profitability and high customer loyalty hence higher

customer retention.

2.9.5 Employee Satisfaction.

Customer Relationship Marketing has an element of Internal Marketing Orientation as

suggested by Kotler P (2000) that a dissatisfied employee is a terrorist to the organisation.

The logic behind internal marketing is, by satisfying the needs of internal groups of the

customers an organisation must be in abetter position to deliver quality desired to satisfy an

external group of customers towards retention.

On the other hand Bain & Co. (Buchanan et al, 1990) suggested a strong link between

employee satisfaction and Customer Relationship Marketing from another perspective.

They maintain that Customer Relationship Marketing will lead higher employee

satisfaction as employees find their job much easier dealing with satisfied customers rather

than dissatisfied customers. As a result employees will tend to stay longer with the

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company. High retention of the right calibre of employees creates a stable and experienced

labour force that delivers higher service quality at lower cost. This leads to higher customer

retention and of course increased profitability (Buchanan, 1990). The advantages of long

term employees are that they are able to form personal relationships with customers, and

understand their needs, and possibly are able to pre-empt dissatisfied customers leaving the

company.

Therefore employee satisfaction is advantageous to the organisation as the quality of

service is determined mostly by the employees' morale in terms of moods and attitudes. All

employees are part of the process which connects with the customer at the point of sale,

employees remain the key to success at these service encounters or the moment of truth

(Carizon 1987 quoted by Buchanan, 1990). The extent to which the organisation can

motivate and satisfy its personnel will influence its ability to offer quality service to their

customers leading to satisfied customers and customer retention. Hence the importance of a

motivated workforce.

2.10 Summary.

It is to my discovery that the shift to Customer Relationship Marketing , though many of

todays marketing practices have evolved due to increasing technology, the marketing

environment still centres around the traditional four Ps of marketing that are Product, Price,

Promotion And Place. However, in order to remain competitive companies must create a

unique set of those four Ps which appeal each individual customer and sets them apart from

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their competitors. Target marketing is no longer an efficient use of marketing efforts

because a great deal of resources can be lost to uninterested individuals while in the process

of trying to capture potential customers. Because of the potential loss resources there is

now a movement away from targets markets to specific individual customers. What is now

required is Customer Oriented Relationship Marketing.

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CHAPTER III

METHODOLOGY

3.0 Introduction

This section explains how the research was carried out. It looks at the research design and

instruments that were used for collection of data. In other words the researcher is going to

discuss different methods used in gathering data and research designs for this study which

entailed the effectiveness of customer relationship marketing strategies at Standard

Chartered Bank. The researcher used sources of data such as primary sources, which are

personal interviews and questionnaires. The instruments used are important so as to ensure

their validity and reliability.

3.1 Research Design

A research design is a master plan specifying the methods and procedures for collecting

and analysing the needed information (Zikmund, 1994). Borg and Gall (1989:324) also

defined research design as, a process of creating an empirical test to support or refute a

knowledge claim. Therefore, the research design provides a blue print for reacting to the

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objectives of the research hence gives a framework for the research plan of action (Smith,

1996). In this research study, case study and descriptive research design were used.

Murimba and Moyo (1987:14) defined case study research design as the intensive

investigation into aspects of an individual, a social unit, or a small portion of the

community in an effort to gain deeper insight about these. In this regard, the researcher

therefore focused on Standard Chartered Bank Group using this design on intensive

investigation into the impact of CRM strategies on organisations performance.

3.1.1 Descriptive Research Design

The researcher conducted in-depth surveys through open interviews and questionnaires

with the small number of the intended target respondents to investigate the impact and

effectiveness of CRM strategies employed by SCB. Descriptive research design provides

answers to questions such as who, what, when, where and how of topic under study,

(Kotler, 1997). It is concerned with the conditions or relationships that exist, opinions that

are held processes that are going on and effects that are evident (Best and Khan 1993:105).

The method was chosen because the data solicited is not static, how the market

environment reacts to the effect of CRM strategies may not be the same in future.

Descriptive research thus allowed for the collection of both qualitative and quantitative

data, therefore, some statistical techniques were used to summarise the information.

Through descriptive research, the researcher was also able to use both primary and

secondary data, which could not have been utilised if exploratory research had been used.

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3.2 Sampling

The researcher used both probability and non-probability sampling techniques. Goddard

and Nelville (2005) quoted by Collins et al (2000) defined a sample as a finite part of a

statistical population whose properties are studied to gain information about the whole. A

sample is a part of the whole or a sub-set of measurements drawn form a population

(Collins et al 2000:149). A sample then is a selected group of elements from a defined

population.

3.2.1 Sampling Techniques/Approaches

Sampling theory distinguishes between two basic sampling approaches: probability or

random sampling and non-probability sampling of which both approaches were used in this

research study. Sampling approaches are also referred to as sampling procedures, sampling

methods or sampling plans.

3.2.1.1 Probability Sampling

Probability sampling or random sampling refers to a procedure whereby each person

(element) has an equal chance of being chosen in the sample. Gilbert (1993:71) refers to an

equal chance as a known, non-zero chance of selection. In other words, random selection

takes place when each element in the population has an equal, independent chance of being

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selected for the sample (De Vos 1998:193. The researcher selected elements from the

population basing on some form of random procedure. The most commonly used

probability sampling methods are simple random, systematic, stratified random and cluster

sampling methods. The researcher then used simple random sampling to collect data from

floor workers, which included tellers. It entails that each element of the sampling frame has

an equal chance of being included in the sample, (De Vos 1998:195). However, the method

has a limitation of that, it relies on the availability of a complete population list, (sampling

frame) but was utilised because it allowed the researcher to project sample results to the

target population free from sampling bias.

3.2.1.2 Non-probability Sampling

It is where data is collected from a population that is accessible to you and one may only

generate about the characteristics of that part of the population (Murimba and Moyo, 1987).

Non-probability sampling was used in this research study because probability sampling was

extremely expensive for collection of data from customers, Standard Chartered Banks

customer base is very broad and extensive for probability samples. Then the non-

probability sampling technique used was convenience or accidental sampling.

With convenience sampling technique, the researcher selected those customers he was able

to access easily until the sample reached the desired size. However, though the technique

was easy and cheaper to use it introduces serious bias, because certain elements in the

population may be over-presented or under-presented.

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3.2.2 Population

A population is the entire group of persons or set of objects and events the researcher wants

to study (Collins et al 2000:147). A Population contains all the variables of interest to the

researcher, it is sometimes referred to as target population or universe. In this study,

identification of the target population was necessary so as to provide a base from which

sample units and sample size were deduced. The population that the researcher in this

research study would reach is defined as the accessible population or study population,

(Brink 1996:132). It was highly improbable that the researcher would be able to locate all

Standard Chartered Banks customers and employees. The researcher then planned to

generalise the findings to this accessible population and not to the entire population

customers and staff.

3.2.3 Sampling Frame

It is a comprehensive list of all the units or elements in the target population (Collins et al

2000:150). In this regard, the sampling frame included all Standard Chartered Bank

employees and customers in the whole Harare community. This is where the researcher

drew a sample from.

3.2.4 Sampling Errors

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Sampling errors refers to the difference between population parameters and sample

statistics (Gilbert 1993:69). Using the sample surveys involved some unavoidable errors,

systematic errors in particular.

Systematic error resulted from non-responses, self-selected bias and response bias. In

trying to rectify the problem of non-response errors, the researcher distributed the

questionnaires to various respondents personally. The researcher constantly contacted and

reminded the researcher through personal visits and telephones the respondents to complete

the questionnaires, after which the researcher personally collected the distributed

questionnaire. The questionnaire working was also made easier to comprehend, with some

closed questions which are easy to answer.

3.2.5 Sample Size

The sample size refers to the number of elements in a sample. As the sample increases (to a

point) the accuracy of the findings increases. As the size of the population increases,

progressively smaller proportion of subjects can be selected. In this research, the sample

size consisted of six manager, six supervisors, twenty employees and thirty customers,

bringing to a total of sixty six.

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3.3 Source of Data

3.3.1 Primary Sources

This information collected at the original source. In this research the information collected

consisted of findings obtained through original sources, which are interviews with

managers and questionnaire responses from customers and staff members.

3.3.2 Secondary Sources

Secondary data is Information taken from a source that was not involved in the original

investigation secondary sources of data consisted of materials that come from someone

other than the original source. Because secondary data is always someone elses

interpretation of primary data, therefore secondary data must be carefully cross checked for

accuracy. In this study the researcher made use of company profiles and documents and

customer relationship marketing journals text books as well as other researchers reports.

These had a relative advantage of efficient time utilisation and use of less financial

resources.

3.4 Research Instruments

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Data was collected using physical distribution of questionnaires, observations and

interviews.

3.4.1 Questionnaires

A questionnaire is a printed document that contains instructions and statements that are

compiled to obtain answers from respondents. According to Cole (1996), it is a document

containing designed to solicit information appropriate for analysis. The questionnaire

differs from interview schedules or interview guides, because respondents fill in the

questionnaire without the researchers assistance. This is known as a self-administered

questionnaire.

In this study, the researcher used self-administered questionnaires to solicit information

from customers and non-management staff of Standard Chartered. This enabled the

respondents to fill in the questionnaires at their own times. This also means that the

respondents had to think and evaluate their responses.

Both structured and unstructured questionnaires were used to collect primary data from

SCB employees and customers. While structure (closed) questions would help in saving

respondents time, unstructured (open-ended) questionnaires ensured that respondents

feelings would not be limited.

The questionnaires were preferred by the researcher because the interviewer bias was

eliminated since the questionnaires were filled in the absence of the researcher.

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Standardised questions and response format of the questionnaires ensured that every

participant responded in identical stimuli and this facilitated easy results presentation,

analysis and discussion of findings. Also, questionnaires did not require the respondents to

leave their job and attend to them so there was no problem with management as no working

time was wasted.

However, questionnaires had its set backs which includes that, some respondents took their

time to respond to the questionnaires hence delay the analysis of data. The questionnaires

did not allow the researcher to ask follow-up questions to probe a particular answer. And

also some shop floor workers did not understand the terms used in the questionnaires,

hence the researcher had to follow-up for explanations.

3.4.2 Interview

An interview, as a data-collection method was used in this research, there was personal

contact and interactions between the researcher and the interviewees. The personal contact

was used to pursue in-depth information about the CRM strategies adopted and their impact

to Standard Chartered operations. Open-ended questions were asked during such interview

such that much of the information collected from the interview was qualitative.

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The reason why interviews were used is because they are flexible, they provide the

researcher with detailed and fresh information the researcher have predicted or anticipated.

They also involved dialogue between interviewer and respondents, unclear questions were

clarified. Personal contact allowed the research to establish rapport and even personal

relationship, with respondents hence helping the researcher build future career prospects.

3.5 Data Collection Procedure

According to Kotler (1996), data collection procedure entails how the primary and

secondary data was collected.

3.5.1 Pilot Study

Bell (1995) described a pilot study as the one where the researcher tests how long it takes

the recipients to complete them check that all questions and instruments are clear and it

enables you to remove any items which do not yield usable data. The researcher distributed

three questionnaires to customers and the bank staff for the purpose of pilot study. The

respondents had problems in understanding the CRM terms. Therefore, the researcher had

to explain the terms.

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3.5.2 Questionnaire Distribution

The researcher physically distributed the questionnaires in person by hand to respondents

who had been conveniently elected. Firstly, the questionnaires were distributed to

customers, then to non-management staff at Standard Chartered Bank. Questionnaires were

collected after five days, however, it took ten days to collect all the questionnaires for

results, presentation and analysis.

3.5.3 How Interviews Were Conducted

Managers were contacted for appointment bookings for face to face direct interview.

Having given an appointment slot, the researcher would conduct the interview within time

limits using interview questions guidelines. The time limits ranged from 15 to 20 minutes.

All respondents were recorded on the interview question papers.

3.6 Data Presentation and Analysis

Marshall and Rossman (1999) explain that qualitative data analysis focuses on data in the

form of words. They stated that qualitative data analysis is concerning of three flows of

activity: data reduction, data display and conclusion drawing/verification. Data reduction

activity involves the process of selecting, focusing, simplifying, abstracting and

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transf

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