The role of customer care in the development and growth of financial institutions research proposal
The role of customer care in the development
And growth of financial institutions
This paper discusses in detail the research proposal on role of customer care in the development and growth of financial institutions, specifically banking institutions. In particular, the research will focus on the effects and influences of customer care approach in marketing activities of organisations. In this research proposal, the background, context of CRM and relevant themes are presented; the partial literature review is presented as well; the design, problems, aims, and objectives are formulated; and the questions are stated.
Rationale of the study
The issue is decided to be investigated mainly because the researches regarding customer care focus on general themes. However, there are many specific topics that could be explored regarding the customer care. There is need to increase the limited knowledge regarding the implications and effects of customer care to the development and growth of banking institutions. This study proposes to focus on the management approach of the company with regards to their customer care/. The rationale of the study is to determine role that customer plays in enhancing the performance of the financial institutions.
In today’s business world, the value and importance of customers is not something that should be set aside by companies. Marketing plans and strategies would be incomplete without paying much consideration to the customers (Asch, (2001)). Customers will and should always be a part of the agenda in any marketing plan of any company. Because of the implications for profitability and growth, customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in today's ever increasing competitive environment (Leong, (1993)). Consumer behaviour has been defined as the acquisition, consumption, and disposition of products, services, time and the concepts by decision making units
Developing and nurturing a lasting relation with the customers is viewed as one of the keys towards delivering customer satisfaction that affects sales. According to Gerson (2005), there are two extreme types of customer relationship. The first one is called “always-a-share relationship”; this type of relationship is characterized by accommodating and detached transactions. This relationship also views the customers as replaceable. The second extreme relationship is called “lost-for-good relationships”. This type of relationship relies on the benefits of the products, carried by the store, to the customers; this is the only reason why the customer patronizes the store. Given this, if the customer sees that the products are no longer beneficial to them there will be no reason to continue on patronizing the store. It is also important that store managers learn to recognize customers whom relationships must be built and maintain and customers whom relationships should be discontinued. This step will allow stores to maintain its status quo.
Based from the statements given above, it can be said that customer care focuses on building relationship to be able to create customer profiles and predict buying trends. Doing so will allow the business to make necessary adjustments in their services of products so that it will become more suitable and referred by customers. In addition, knowing the customer’ preferences will give a company an edge over the competition since they will be able to develop products and service that can offer more benefits to the customers based on what they need.
This research aims on achieving the following objectives:
· Identify how customer care management affects the performance of the financial institutions
· Recognise how the company can sustain their competitive position through efficient customer care
· Examine how financial institutions can improve their relation with customers.
The study will adhere to the following queries:
- Do customer care systems reflect the buying behaviour of the customers?
- What is the most recent customer care approach used by financial institutions?
- How important is the implementation of customer care systems in organizational performance of the company?
- Is the implementation of customer care systems in marketing improved the current position of the organisations
Overview of the methodology
This study will be conducted in order to assess the role of customer care in the development and growth of financial institutions. To be able to gather the necessary data, this proposed research will utilize the descriptive method, using both qualitative and quantitative approaches. Herein, the chosen responded were randomly selected from the management of the financial institutions. The survey methods were the research instruments used for the data-gathering (Creswell, 1994).
The employees of financial and banking institutions who will be chosen in this study will accomplish a survey questionnaire to evaluate the role played by customer care as it is used by financial and banking institutions. The results of the survey will then be processed by computing the weighted mean of each survey item. The computed values were compared to the Likert scale for data interpretation. Relevant literatures will also be used to support the gathered findings.
Asch, D. (2001). Competing in the new economy. European Business Journal, 13 (3), 119-126.
Creswell, J W 1994, Research design: Qualitative and quantitative approaches, Thousand Oaks, California: Sage.
Gerson, R. (2005), customer Relationship Management: What's Wrong with it and How to Improve it. Gerson Goodson Inc.
Leong, S.M. (1993). Consumer decision making for common, repeat-purchase Products: a dual replication, J. Consumer Psychology, 2(2), pp 193-208.
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