CUSTOMER RELATIONSHIP MANAGEMENT

How CRM Affect the Buying Behaviour of Consumer

A Case Study of UK Retail Industry

Table of Contents

CHAPTER 1: INTRODUCTION3

Overview3

Background4

Problem Statement4

Research Question5

Objectives5

Ethical Consideration5

CHAPTER 2: LITERATURE REVIEW7

Customer Relationship Management7

Consumer Buying Behavior (CBB)8

Link between CBB and CRM8

CHAPTER 3: METHODOLOGY10

Research design10

Case Study10

Qualitative and Quantitative Design11

Data Collection Methods11

Sample12

CHAPTER 4: CONCLUSION13

Conclusion13

References14

CHAPTER 1: INTRODUCTION

Overview

Customer Relationship Management has very importance in today's business society, because it is so easy to shop around online and explore different competition in certain industries. The definition of Customer Relationship Management (CRM) is a process that involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability (Bose, 2002, Pp. 89-97). Customer relationship management allows organizations to gain insights into customers' shopping and buying behaviors.

CRM ensures that all the information is shared between the front and the back offices and hence throughout the entire organization. Krasnikov, Jayachandran, and Kumar have stated that CRM includes front-office applications that support sales, marketing, service, and the back office. Furthermore, Krasnikov and his colleagues state that CRM assists in optimal and appropriate information flow between an organization and its consumers through reciprocal communications processes. Also, they suggest that CRM enables the routing of information to appropriate employees in sales, marketing, and service components. All the customer information collected from different places (sales, marketing, or service) is stored in a centralized database in the back office (Clark and Goldsmith, 2006, p. 59). The front-office components of CRM applications assist in integrating and analyzing the data. Overall, CRM allows an organization ways to track the varying needs of customers in an efficient way and, in turn, enhance the organization's decision-making process. This research has main aim to investigate the impact of CRM on consumer buyer behaviour by using the example of Tesco. This study focuses on identifying the scope of customer relationship management and its impact on customer buying behaviour.

Background

The concept of customer relationship management and buying behaviour is not new to the business organizations. In the present business scenario, both of these concepts have become a necessary part of the businesses due to the increasing demand of these concepts in global market. Better implementation of CRM in an organization provides competitive advantage to the customers. Alongside this discussion, CRM process is an important tool to retain customers for a long period and this process is used by many companies. Different drivers are there to attract and retain customers for a long-period (Kauffman, 1996, Pp. 94-107).

Retail CRM is one such weapon that every retailer today is focused on because it is directly linked to the customer and in turn results in better sales and Return on Investment (ROI). The ROI depends on how retailers are managing their customer relationship based on their ability to aggregate, analyze, and apply a range of data sources such as Point of Sales (POS), customer information, and loyalty programs. The six major business processes for retail CRM are loyalty program management, campaign management, in-store CRM, customer analytics, master data management, ...