Fig 3: The Research Process (Uma Sekaran, 2003). 3. Problem. Definition. 5.
Scientific. Research. Design. 4. Theoretical. Framework. 1. Observation. 8.
Report.
Chapter IV: Research Methodology 4.1 Research Method •
CRM means applying automation to existing sales, marketing, support and channel processes as organizations attempts to improve communications, planning, opportunity and campaign management, forecasting, problem solving, and to share best practices. However, poorly performed activities or processes rarely improve the quality of the outcome. The measurement of success is the increased efficiency in sales, marketing, support and channel processes.
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Brand A sausage has three main customers: Modern Outlets (HCO: High Class Outlet), Institutional Outlets and Traditional Outlets. However the research of the thesis will focus on the biggest customers of Brand A, which are Modern Outlets (HCO: High Class Outlet). These High class outlets have around 60% of the total share of the Brand A production. These are the retailers: Makro, Carrefour, Hypermart and Giant.
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The research uses the 40 / 60 Pareto theory. Focusing on the activity on the 40% of the total Brand A customers will represent 100% of the Brand A customers. By applying this theory, Brand A will focus on improving the CRM activity of profitable customers only.
4.2 Research Process Schematic Diagram Fig 3: The Research Process (Uma Sekaran, 2003)
1. Observation 3. Problem Definition
4. Theoretical Framework
2. Preliminary Data Gathering
5. Scientific Research Design
6. Data Collection, Analysis and Interpretation
7. Deduction
No
Yes
8. Report Writing
9. Report Presentation
1. OBSERVATION Here the broad area of research has to be identified. This process includes Company visits and its Customer visits (i.e. Carrefour and other retailer). As well as other study and examination that includes survey 2. PRELIMINARY DATA GATHERING This step is basically done to collect and gather all essential information which are necessary to conduct further research. The data gathered can be categorized into: •
Primary Data. The primary data includes interviews with the company’s staff manager and CEO; Customers survey and observation on the products (Product Testing)
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Secondary Data. The secondary data includes company’s profile, customer’s data, books, magazines and internet.
3. PROBLEM DEFINITION A Problem Definition is a crucial step since no good research can be accomplished without a proper problem definition. In every company always some problems occur. Reality shows always a difference between the desired condition and the actual condition. The Problem definition is then to be analyzed later in this chapter. 4. THEORITICAL FRAMEWORK The Theoretical Framework is the foundation on which the whole project is based. It is the logically developed and constructed description of the framework among variables of interest that makes up the CRM system. Here is the theoretical framework of the research.
Fig 4: Schematic Diagram for Theoretical Framework Price
Products Quality Changes in behavior of the staff
Delivery Time
CRM System
Customer Relationship
Changes in the CRM system
Independent Variable Moderating Variable Intervening Variable Dependent Variable Notes: (Uma Sekaran, 2003) * Independent Variable is a variable that influences what the dependent variable accounts for * Dependent Variable is the variable of primary interest to the study * Moderating Variable is a variable that relies strongly on the relationship between the dependent variable and independent variable. That is the presence of a third variable (the moderating variable) modifies the original relationship between the dependent variables and the independent variables.
* Intervening Variable is a variable that surfaces as a function of the independent variable and helps in conceptualizing and explaining the influences of the independent variable on the dependent variable. 5. SCIENTIFIC RESEARCH DESIGN Research is very essential in order to find the needs and wants of customers. A questionnaire will be distributed to the customers in order to analyze the needs and wants of the customer further as well as other important factors that make a good CRM activity. The research design is based on the method of simple statistical analysis. 6. DATA COLLECTION, ANALYSIS AND INTERPRETATION All of the data that has been collected is compiled to become meaningful information. Then the all the data and information is analyzed along with the research including the questionnaires distributed to the customers of Brand A. The interpretation and evaluation of these findings will create a recommendation for the solution of the problems of the company. 7. DEDUCTION This step reviews the conclusions and recommendations that have been achieved. It poses the question, “Is the research question answered?” If the question is answered with a ‘Yes’, the research should progress to the final two steps which are report writing and report presentation. If the answer is ’No’, review of previous research steps should be undertaken. This is shown by the dotted lines in Fig. 3 where any problems found that hampered the findings of the solution should be reviewed and fixed.
4.3 Customer Information Gathering In order to have a good and coherent view of the customers, fulfilling the needs and wants of the customers is very essential. According to the tri-dimensional figure (See Fig 1: The tri-dimensional Figure), the three needs and wants of customers are delivery-time, price and quality offered by Brand A. According to the survey done, customers emphasize heavily on getting a good delivery-time which is defined by promptness and accuracy. While Brand A is able to maintain a good quality for those three aspects, Brand A should narrow and focus its resources to fulfill the most determinant needs and wants of the customers which are the elements of delivery time.
4.4 Survey In order to achieve reliable thesis results, a survey must be conducted to examine the needs and wants of customers. More specifically this survey is to analyze the trends in the relatio nship between CRM strategy, price, delivery-time and products quality offered to the customers. The method used for this thesis is a simple statistical analysis. The main objective of the survey is to investigate the customer’s preference of a brand and the most essential factors in building a successful business relation with these customers. The product attributes include price, delivery-time, product quality and relationship (customer service provided, response time and the relation between company and the competitors). The method of calculation is to calculate the average point gained by combining the four factors (price, delivery time, products quality and relationship) by Brand A and its competitors. It is designed to provide a diagnostic method of exploring buying behavior and to determine the relative perceived value in different product attributes. Other than then the main objective, the survey is also designed to find out the overall performance of Brand A and its competitors as well as other qua lity that Brand A offer to its customer.
