By

Swati Singh
Assistant Professor
Institute of Technology & Science,
Ghaziabad ,
U.P.
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swatisingh)()'*g+ail.co+
an,u -a+ba
Assistant Professor
Institute of Technology & Science,
Ghaziabad ,
U.P.
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Abstract
.th IIA /onference on ar0eting in 1+erging 1cono+ies
2anuary 345, )'$$
A study of CRM and its impact on Customer Loyalty: A study National
Capital Region.
Swati Singh and Manju Lamba
617 89:;S! /usto+er :elationshi< anage+ent, -oyalty, A<<arel :etailing, /:
initiati=es.
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/usto+er loyalty has been a +a,or +ar0eting <rinci<le since long ti+e,and /usto+er
relationshi< +anage+ent is actually a tre+endous ste< forward in creating a syste+ that can
<ro=ide a +eans for retaining indi=idual loyalty> /roteau& -ee,)''$?./: is a conce<t that
enables an organization to tailor s<ecific <roducts or ser=ices to each indi=idual custo+er.9ne of
the i+<ortant facet of the /: <ractices is custo+er selecti=ity >Par=atiyar& Shetty )''$?. The
co+<any +ust therefore be selecti=e in tailoring its <rogra+s and +ar0eting efforts by
seg+enting and selecting a<<ro<riate custo+ers./: is a custo+er focused business strategy
that ai+s to increase custo+er satisfaction and custo+er loyalty by offering a +ore res<onsi=e
and custo+ized ser=ice to each custo+er.>8ilson,e.t.all )'')?. /: has direct and indirect
i+<act on custo+er satisfaction, sales, <rofit, loyalty >:ichard et all, )'')?
In recent years, +anage+ent thin0ing has shifted fro+ a focus on custo+er ac@uisition to an
understanding of the i+<ortance of retaining custo+ers and need to build u< loyalty a+ong these
custo+ers >Goodwin & Ball, )''%?.This research ai+s at studying the i+<act of custo+er
relationshi< +anage+ent initiati=es on custo+er loyalty in a<<arel retailing. A<<arel retailing is
on boo+ in India. According to AT61A:A17 )''# :etail A<<arel indeB India stood on fourth
<osition as the +ost attracti=e e+erging +ar0et for a<<arel retailers, which auto+atically attracts
the interest for research in the field. This suggests that a<<arel retailing in India is going to be
=ery co+<etiti=e in future and /: strategies can be instru+ental in winning the custo+ers.
Carious a<<arel retail stores li0e Sho<<ers Sto<, Globus, and 8estside are already tailoring
/: strategies to win the race. ;uring the course of study =arious /: initiati=es used by the
a<<arel retail stores would be studied. This would hel< in <ro=iding a co+<rehensi=e <icture of
the /: efforts being used in a<<arel retailing.
CRM implementations usually involve four specific ongoing activities: (1) focusing on key customers
(Srivastava, Shervani, and Fahey 1! "andermer#e $%%&), ($) organi'ing around CRM ((om)urg,
*orkman, and +ensen $%%%! ,angerak and "erhoef $%%-), (-) managing kno#ledge
(Stefanou,Sarmaniotis, and Stafyla $%%-), and (&) incorporating CRM )ased technology (.haskar $%%&!
Chen and Ching $%%&)/ In order to gi=e focus to our study we would ta0e into consideration the
+ar0eting initiati=es which are used in /:, considering one of the +a,or di+ensions of /:
i+<le+entations focusing around 0ey custo+ers >Sri=asta=a, Sher=ani&Dahey, $###?. a,or
+ar0eting initiati=es used in /: would be identified and their i+<act on loyalty would be
studied.
%$R%"S& "' R&S&ARC(
The +a,or ob,ecti=es of this research are as follows4
$. To identify the +a,or +ar0eting initiati=es used in /: in a<<arel retailing.
). To study the i+<act of /: intiati=es on <ositi=e word of +outh ad=ertising.
%. To study the i+<act of /: initiati=es on <rice sensiti=ity of the custo+ers.
.. To study the i+<act of /: initaiti=es on tolerance of negati=e eB<erience.
R&)&* "' L!&RA!$R&
/usto+er relationshi< +anage+ent >/:? has recently e+erged as a strategic <rocess of the
organizations. 6otler and Ar+strong define /: as Ethe o=erall <rocess of building and
+aintaining <rofitable custo+er relationshi<s by deli=ering su<erior custo+er =alue and
satisfactionF >)''., <. $(?. Gi0+und, c-eod, and Gilbert <ro=ide a +ore technology4oriented
<ers<ecti=e by defining /: as Ea business strategy that uses infor+ation technology to <ro=ide
an enter<rise with a co+<rehensi=e, reliable, and integrated =iew of its custo+er base so that all
<rocesses and custo+er interactions hel< +aintain and eB<and +utually beneficial relationshi<sF
>)''%, <. %?. In =iew of the wide =ariance a+ong /: definitions, 7i+ >)'')? atte+<ts to
<ro=ide +ore conce<tual clarity of /: by synthesizing the rele=ant +ar0eting, +anage+ent,
and IT literature to identify four 0ey areas necessary for successful /: i+<le+entation! >$?
strategy, >)? people, >%? processes, and >.? technology. It is difficult to +easure the tangible
returns on the resources which are a<<lied in <lanning, de=elo<ing, i+<le+enting and o<erating
the /: strategies >;yche, )''$?. Therefore i+<act of /: on intangible benefits such as
custo+er loyalty, ser=ice @uality, =alue enhance+ent, inno=ation of o<eration, effecti=eness of
<rocess trust and efficiency ha=e to be +easured> 6i+,e.t. all,)''%?. I+<act of /: on loyalty
gi=es a <icture that /: <lays an acti=e role in de=elo<ing loyalty. /: is actually tre+endous
ste< forward in creating a syste+ that can <ro=ide a +eans for retaining indi=idual loyalty in a
world of nearly ( billion souls >/roteau & -i )''$?.
In recent years, +anage+ent thin0ing has shifted fro+ a focus on custo+er ac@uisition to an
understanding of the i+<ortance of retaining custo+ers and need to build u< loyalty a+ong these
custo+ers >Goodwin & Ball, )''%?. Two for+s of loyalty eBistH beha=ioral and attitudinal
>Ditzgibbon& 8hite, )''.?. Beha=ioral loyalty eBists when a consu+er re<eatedly <urchases a
<roduct or ser=ice, but does not necessarily ha=e a fa=orable attitude towards the brand, ;odd, 2.
>)'')?. This +ay be due to con=enience, habit or because the barriers to change are too great.
Attitudinal loyalty is defined by 2acoby, 2. and /hestnut, :. >$#5&? as IThe consu+erJs
<redis<osition towards a brand as a function of <sychological <rocesses. This includes attitudinal
<reference and co++it+ent towards the brand.J attitudinal loyalty has been found to result in
lower <rice sensiti=ity, 7oo, B., ;onthu, A. and -ee, S. >)'''? +eaning incenti=es are generally
not needed to generate re<urchase. Attitudinal loyalty also incor<orates a strong <ositi=e attitude,
which is li0ely to result in word of +outh >89? ad=ertising, with custo+er ac@uisition
benefits.
/usto+er relationshi< +anage+ent >/:? is a strategic <rocess of the organization, and it
influences business acti=ities, it also influences loyalty. Galbreath, 2. >$##&? <ro<oses that /:
refers to the! Iacti=ities an enter<rise <erfor+s to identify, select, ac@uire, de=elo<, and retain
increasingly loyal and <rofitable custo+ersJ. This i+<lies that /: +ay ha=e an i+<act on all
business acti=ities and is not a one ti+e strategy by the organization rather a long ter+ strategic
<rocess which would re@uire long ter+ co++it+ent and o<erational efficiency of the fir+.
/uthbertson & -ane >)''%? <osits that /: clearly has the <otential to hel< strengthen loyalty
and build <rofitability, though it can be =ery eB<ensi=e to i+<le+ent. /: techni@ues allow the
retailer to focus on de=elo<ing custo+er <rofitability, rather than aggregate <rofitability. This
allows for a +ore targeted use of +ar0eting and o<erational resources. Durther+ore, loyal and
<rofitable custo+er acti=ity can be trac0ed to facilitate continually rele=ant retail de=elo<+ent.
Thus, /: acti=ities can be =ery effecti=e in enhancing custo+er loyalty for <rofit.
Ditzgibbon& 8hite, )''. states that it is interesting that /: increases custo+er satisfaction
which de+onstrates i+<ro=ed relationshi<s with custo+ers and therefore <ossibly greater
loyalty.
M&!("#"L"+,
Since, the ob,ecti=e of the study is to study the /: initiati=es and efforts used in a<<arel
retailing and its i+<act on custo+er loyalty, following research +ethodology would be used!
#ata collection! Both <ri+ary and secondary data would be collected. In order to find out the
+a,or recent /: initiati=es used in a<<arel retailing, secondary data would be collected it
through internet, +agazines, ,ournals and articles. The +a,or a<<arel retail stores in Aational
/a<ital :egion >A/:? would be selected for the <ur<ose of data collection, the uni=erse of the
study would be the custo+ers who =isit these a<<arel stores in A/:. The data would be
collected by retail interce<tion +ethod. A sa+<le of %'' res<ondents would be ta0en on the basis
of rando+ sa+<ling. Structured @uestionnaire would be fra+ed on which the res<onses of the
res<ondents would be ta0en for the study. The @uestionnaire would be get filled in by the
custo+ers of those a<<arel retail stores which ado<t the /: initiati=es to reach their custo+ers.
#ata analysis! Dor data analysis of this research we will use different statistical tools li0e
fre@uency table, :eliability test, Calidity test for this research. To see i+<act relationshi< will be
seen in =arious constructs with the hel< of correlations and other tools . All these tools will be
ad+inistered through SPSS $5.'.
MA-"R R&S$L!S
The <a<er would delineate!
The +a,or /: initiati=es underta0en by the a<<arel :etailers.
The research would be able to ascertain whether /: initiati=es ha=e i+<act on -oyalty
or not.
The <a<er would see relationshi< between /: initiati=es and <rice sensiti=ity.
The research would be able to ascertain whether /: initiati=es ha=e i+<act on
tolerance of negati=e eB<eriences.
MANA+&RAL M%LCA!"NS
This research would be able to find out the +a,or /: initiati=es ta0en by the a<<arel retailers.
This study will establish that whether /: initiati=es ha=e a relationshi< with custo+er loyalty.
It will gi=e insight on how the /: initiati=es should be tailored in order to create custo+er
loyalty. This <a<er will gi=e insight on how effecti=e /: initiati=es are in a<<arel retailing.
This <a<er is eB<ected to hel< the acade+icians, researchers, students and <ractitioners interested
in the study of /: and -oyalty.
R&'&R&NC&S
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