ZENITH International Journal of Business Economics & Management Research________________ ISSN 2249- 8826

ZIJBEMR, Vol.4 (5), MAY (2014)

Online available at zenithresearch.org.in

A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT: WITH

SPECIAL REFERENCE TO MAHA ELECTRONICS PRIVATE LIMITED,
BANGALORE
DR.M.THANIKAIVEL
PROF. AND HEAD,
DEPARTMENT OF COMMERCE AND MANAGEMENT,
VIVEKANANDHA COLLEGE OF ARTS AND SCIENCES FOR WOMEN (AUTONOMOUS),
ELAYAMPALAYAM,
TIRUCHENGODE,
NAMAKKAL DT, TAMIL NADU.

ABSTRACT
It is always desirable for a business to know about the degree of satisfaction of the customers.
“Customer is the King” and “he only can make you win the leadership in the Market”, and “HP
company” is carrying the same holistic approach towards the Customers‟ Satisfaction. The
objective of the study is to analyze the actual Customer Services and Customer Relationship
Management in MAHA Electronics Private Limited (An authorized service centre of HP
company). The customers‟ satisfaction is dependent on a number of reasons, but is more or less
similar through the whole industry, and pervades the „Sales‟ as well „After-sales‟ services
provided by the Company towards customers. MAHA Electronics Private Limited (MEPL) is
very keen in developing best bond with customers, and HP Company is one of those customer-
satisfaction oriented organization, which is taking care of implementing this policy. This article
is an attempt to know the CRM in the MEPL

KEY WORDS: Customer Relationship Management (CRM), Maha Electronics Pvt Ltd,
customer satisfaction.
______________________________________________________________________________

INTRODUCTION
A narrow perspective of customer relationship management is database marketing emphasizing
the promotional aspects of marketing linked to database efforts. Another narrow, yet relevant,
viewpoint is to consider CRM only as customer retention in which a variety of after marketing
tactics is used for customer bonding or staying in touch after the sale is made. Shani and
Chalasani define relationship marketing as “an integrated effort to identify, maintain, and build
up a network with individuals consumers and to continuously strengthen the network for mutual
benefit of both sides, through interactive, individualized and value-added contacts over a period
of time”. The core theme of all CRM and relationship marketing perspectives is its focus on co-
operative and collaborative relationships between the firm and its customers, and/or other
marketing actors. CRM is based on the premise that, by having a better understanding of the
customers‟ needs and desires we can keep them longer and sell more to them.CRM (customer
relationship management) is an information industry term for methodologies, software, and
usually Internet capabilities that help an enterprise manage customer relationships in an
organized way. For example, an enterprise might build a database about its customers that

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described relationships in sufficient detail so that management, salespeople, people providing

service, and perhaps the customer directly could access information, match customer needs with
product plans and offerings, remind customers of service requirements, know what other
products a customer had purchased, and so forth. The essence of the information technology
revolution and, in particular, the World Wide Web is the opportunity to build better relationships
with customers than has been previously possible in the offline world. By combining the abilities
to respond directly to customer requests and to provide the customer with a highly interactive,
customized experience, companies have a greater ability today to establish, nurture, and sustain
long-term customer relationships than ever before.
Traditionally, marketers have been trained to acquire customers, either new ones who have not
bought the product category before or those who are currently competitors‟ customers. This has
required heavy doses of mass advertising and price-oriented promotions to customers and
channel members. Today, the tone of the conversation has changed from customer acquisition to
retention. This requires a different mindset and a 3 different and new set of tools. A good thought
experiment for an executive audience is to ask them how much they spend and/or focus on
acquisition versus retention activities. CRM--Customer Relationship Management--has entered
the mainstream. Despite the uncertainty of the economy, CRM is being thrust into corporate
budgets and talked about as a critical initiative by hundreds of Fortune 1,000 and tens of
thousands of other companies. It has gone from being an important edge in the business world to
a necessary tool for survival. The notion of the customer as king or queen is once again the rule.
How you treat this is a mission-critical business issue. But, what is CRM and how does it change
the way companies do business? The changes in the world have been so dynamic and so
dramatic that the path is not necessarily all that obvious. How CRM impacts that business path is
a continuing source of debate in the world of corporate management.
Managing relationships with customers has become a critical organizational competency.
Get winning strategies for acquiring and retaining customers by leveraging the latest advanced
technologies. This course will teach you how to select the right tools for your business-- so it can
grow today--and on into the future. Lagging means lost customers, which means damage to the
bottom line. But how do you not lag when customers are moving lightning fast to demand
constant changes in the speed to complete their transactions? How do you keep your customers
when the move to another company is nothing more than a mouse click and a minute away?
CRM is the answer. Customer Relationship Management, a strategy that leverages very
advanced technologies is the way to cut to the 21st Century business chase.

2. REVIEW OF LITERATURE
With the available literature we can summarize Customer Relationship Management
(CRM) in the words of various authors as follows-
Alexandra J. Campbell, (2003)i conducted a study which objectified to proposes a conceptual
framework about the internal processes involved in creating customer knowledge competence,
which allow firms to strategically manage their CRM programs. And found that while
increasingly demanding customers have prompted many firms to implement customer
relationship management (CRM) programs, little is known about the internal processes that assist
organization-wide learning about individual customer relationships. Rhett H. Walker , Heather
Francis, (2003)ii conducted a study which objectified to the emergence of electronic markets and

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Online available at zenithresearch.org.in

associated systems have enhanced the efficiency and effectiveness by which a marketer can
establish, develop and maintain customer relationships. Also found that clearly providers must
recognize that a production driven „one-size-fits-all‟ approach to electronically enhanced service
delivery may have negative implications for an organization‟s customer relationship
management program. Managerial implications and a proposed research agenda are discussed.
Ricardo Chalmeta (2005)iii used a formal methodology for directing the process of developing
and implementing a CRM System that considers and integrates various aspects, such as defining
a customer strategy, re-engineering customer-oriented business processes, human resources
management, the computer system, management of change and continuous improvement. Şevki
Özgener, Rifat İraz, (2005)iv found the factors influencing the implementation of customer
relationship management (CRM) at small and medium-sized tourism enterprises in Cappadocia
and concluded that the most important barriers to small and medium-sized enterprises (SMEs) in
the tourism sector are inadequate supporting budgets, lack of senior management commitment to
CRM and poor communication. Chunqing Li, (2005)v studied on develop a dynamic customer
relationship management model and investigate the relationship between customer utility and
purchasing frequency by modifying the return function of the model discussed in Gönül and Shi
(1998). In this the researcher extend the analysis to consider a messaging and pricing policy
mix, and use a genetic algorithm in our empirical estimation. And they found that their model is
suitable and far superior to the one-stage model commonly used. Dynamic model gives the
optimal marketing mix strategies in different customer states and the results show that the firm
could enjoy a 22% increase in profit. Seungjeong Yang , Jongtae Rhee (2006)vi conducted a
study that focused on the needs of customers are not being addressed in a timely manner due to
a weak system that cannot immediately deal with customer requests and because of which
customer information is not administered in a systematic manner. And concludes when a
customer event arises through various channels such as the Internet, SFA or CTI, the event data
are transferred through a standardized form. Based on these data, the campaign and service is
then extracted and analyzed with the Event CRM Gateway Engine. Yichen Lin, et al.,(2006) vii
conducted a study that concentrates on Knowledge-enabled Customer Relationship Management
and demonstrates the way in which the presented model can facilitate the identification of
important factors that have key impacts on business performance in particular settings. The
results show that employees in the steel industry indicate that to provide product and service
information for customers and employees in the textile industry report that to provide customer
complaint information of customers and to share internally the best practice information can
have benefits for hard measures such as customer retention, cost savings, and market share and
for soft measures such as customer satisfaction, market leadership, customer loyalty, and
customer and employee productivity. Luis E. Mendoza, et al., (2007)viii conducted a study
which found the main goal stated in this research is to propose, justify, and validate a model
based on critical success factors (CSFs) that will constitute a guide for companies in the
implementation and diagnosis of a CRM strategy. These factors cover the three key aspects of
every CRM strategy (human factor, processes, and technology); giving a global focus and
propitiating success in the implementation of a CRM strategy. Ramendra Singh, Abraham
Koshy, (2010)ix conducted a study which focuses on empirical studies in the b2b customer value
research have focused on emerging markets, especially the BRIC countries. And thus concludes
that salesperson's customer orientation directly leads to value creation and relationship

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Online available at zenithresearch.org.in

development with customers. On the other hand, a sales orientation destroys value, although it
may lead to relationship development in the short-term. Piyawan Siriprasoetsin, et al., (2011)x
investigated the factors affecting customer relationship management (CRM) practices in Thai
academic libraries. The results of the study show that (1) CRM must be included in the library
strategic plan; (2) CRM must be a key strategy for the improvement of library service quality; (3)
library administrators must have strong leadership for achieving the effectiveness of CRM
practices in the library; (4) library staff must have good knowledge and understanding of CRM
and its link to the library service quality improvement; (5) the working cultures for CRM
effectiveness such as teamwork, cross functional work, and good communication between staff
must be encouraged and practiced in the library; and (6) technology must be fully supported for
CRM in the library. Dennis Herhausen , et al., (2012)xi conducted a study which concentrates
on understanding the consequences of customer steering is a key challenge of multichannel
customer management. The results highlight the importance of three contingency factors:
personal relationships in the current channel, learning investments into the online channel and
attitude toward the steering firm.

3. OBJECTIVES OF THE STUDY

The following are the objectives of the study
 To study the Customer Relationship Management in MAHA electronics.
 To find the level of satisfaction of customers with MAHA electronics about CRM.
 To suggest for the improving Customer Relationship Management in MAHA electronics.

4. RESEARCH METHODOLOGY
The research is the grand plan to study about satisfaction level of customers towards the
service provided by MAHA electronics.
The necessary data are collected, classified, analyzed, evaluated and presented in an effective
manner by preparing the report which states the complete details of the dissertation including
area covered and limitations undergone in this study. Bangalore is the Hi-tech city were people
are using all types of advanced technology like Laptop, Tablet, I-pod and others. So the
researcher has selected this as area of study. The data has been collected by approaching to the
customers‟ through face – to - face interaction by using technique called as Interview schedule.
The study is based on primary data. The data have been collected through interview schedule.
120 samples based on the convenient sampling technique were taken as the sample size from
Bangalore for this study.

5. CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management concepts was created with an intention to reach maximize
the customer satisfaction and to have more brand loyalty. Brand establishment is the key for
success in the market. Every firm‟s Objective is reached at this point.
Computer manufacturing and services companies are following CRM in order to
establish a good path for finding customers of their firms are being educated and following a
system of trading. It provides more opportunity and makes easy to conduct more study and
research. This study is an attempt to measure the performance of CRM in the sample company
MAHA electronics.

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The present study is measuring the CRM in the three aspects. Firstly, an attempt is
made to measure what is the level of CRM at the service point. Secondly, CRM is measured
through the customers satisfaction as it is a main factor to influence the CRM. Thirdly, some
feedbacks were collected from customers to improve CRM.

6 LEVEL OF CUSTOMER RELATIONSHIP MANAGEMENT

There are two questions raised to the respondent to know how the CRM is done with the
customers.

6.1 PERIOD OF GETTING SERVICE

It is very simple effort to measure the CRM by knowing the retention of
customers. When a company retains the customers from a very long period, it is simple to say
that it has very good CRM. In this point of view an attempt is made to know that period if
getting services from the company. The below table shows the result.

TABLE 1
PERIOD OF USING THE SERVICES OF THE COMPANY
PURCHASING PERIOD FREQUENCY PERCENTAGE
Less than 6 months 16 13.3
Above 6 months and less than one year 31 25.8
Above 1 year and less than 3 years 58 48.3
Above 3 years and less than 5 years 12 10.0
5 years or more 3 2.5
Total 120 100.0
The above table shows that majority of (48.3%) respondents are getting services between 1 year
and 3 years. But only 2.5% of respondents are getting for more than 5 years. This minimum
number of laptops is used for very long time. From the last three years maximum number
(87.5%) of customers have been retained.

6.2 CONTINUING THE SERVICE

Continuing the service is also one of the important factor in which it is understood
that how the customers are retained by the MAHA electronics.

TABLE 2
SERVICE CONTINUATION
CONTINUING SERVICE FREQUENCY PERCENTAGE (%)
Very likely 38 31.7
Somewhat likely 35 29.2
Neutral 25 20.8
Somewhat unlikely 15 12.5
Very unlikely 7 5.8
Total 120 100.0

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Majority of the respondents 38 (31.7%) have given very positive answer to continue
the service of the MAHA electronics. 5.8% of the customers were not ready to continue their
services in MAHA electronics and 29.2% of the respondents were compelled to get services.

7. LEVEL OF SATISFACTION
Satisfying customers is a factor showing the Customer Relationship Management in an
organisation. To determine the factor influencing the satisfaction, it is an attempt to find the
relationship between socio--economic characters and level of satisfaction. To find the
satisfaction level 5 point likert‟s scale was used (Well Above Average , Above Average ,
Average , Below Average , Well Below Average ).
The result show in the below table.

TABLE: 3
LEVEL OF SATISFACTION
S. NO LEVEL OF NO. OF PERCENTAGE MEAN
SATISFACTION RESPONDENTS
1. Highly Satisfied 6 5 20.98
2. Moderately Satisfied 66 55 22.03
3. Low Satisfied 48 40 21.83
TOTAL 120 100 21.60

The above table shows that the 66 respondents are Moderately Satisfied as 55%, 48
respondents are Low Satisfied as 40% and only 6 respondents are Highly Satisfied as 5% .Mean
result shows that Moderately Satisfied in 22.03, Low Satisfied respondents are 21.83 and Highly
Satisfied respondents are 20.98

SOCIO-ECONOMIC CHARACTERISTICS AND LEVEL OF SATISFACTION

Socio-economic character influences the buying behavior and level of satisfaction.
Hence, the study makes an attempt to find the relationship between socio-economic characters
and level of satisfaction.
For which, following null hypothesis is framed.
H0: There is no relationship between socio-economic characters (Gender, Age group,
Occupation, Income level and Issue description) and Level of Satisfaction.
The above hypothesis is tested with the help of Mean, Chi-Square and Contingent
Coefficient.

The blow table shows the result

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ZIJBEMR, Vol.4 (5), MAY (2014)
Online available at zenithresearch.org.in

TABLE 4
SOCIO-ECONOMIC CHARACTERISTIC OF RESPONDENTS AND SATISFACTION: CHI-SQUARE TEST
SOCIO- LEVEL OF SATISFACTION
ECONOMIC TOTAL MEAN RESULT
CHARACTERS LOW MODERAT HIGH
GEND

Male 2 (2.3%) 52 (59.1%) 34 (38.6%) 88 (100%) 21.9659 Chi-Square test 6.6067

ER

Female 4 (12.5%) 14 (43.8%) 14 (43.8%) 32 (100%) 20.5938 Df- 2; CC 0.219

Young age 3 (3.8%) 44 (55.0%) 33 (41.3%) 80 (100.0%) 21.7750 Chi-Square test : 2.573
AGE

Middle age 3(8.6%) 18 (51.4%) 14 (40.0%) 85 (100.0%) 21.3143 degrees of freedom : 4

Old age 0 (.0%) 4(80.0%) 1(20.0%) 5(100.0%) 20.8000 CC:0.145
Employee 0 (0.0%) 18 (66.7%) 9 (33.3%) 27 (100.0%) 21.5926 Chi-Square test: 11.126
Business 2 (6.7%) 17 (56.7%) 11 (36.7%) 30 (100.0%) 21.2667 degrees of freedom: 10
Student 3 (10.0%) 14 (46.7%) 13 (43.3) 30 (100.0%) 21.5000 CC: 0.291
OCCUPATION

House wife 1 (14.3%) 5 (71.4%) 1 (14.3%) 7 (100.0%) 19.4286

Professiona 0 (0.0%) 12 (48.0%) 14 (52.0%) 25 (100.0%) 22.6800
l
job 0 (0.0%) 0 (0.0%) 1 (100.0%) 1 (100.0%) 23.0000
Seeking
Low 3 (13.6%) 12 (54.5%) 7 (31.8%) 22 (100.0%) 20.7727 Chi-Square test: 12.034
Income degrees of freedom: 4
DESCRIPTIO INCOME

Middle 1 (1.1%) 47 (54.0%) 39 (44.8%) 87 (100.0%) 22.0575 CC: 0.302

High 2 (18.2%) 7 (63.6%) 2 (18.2%) 11 (100.0%) 19.6364
Income
Battery 2 (4.4%) 27 (60.0%) 16 (35.6%) 45 (100.0%) 21.1111 Chi-Square test: 2.953
Functionin 4 (7.3%) 29 (52.7%) 22 (40.0%) 55 (100.0%) 21.6364 degrees of freedom: 6
g CC 0.155
ISSUE

Installation 0 (0.0%) 8 (53.3%) 7 (46.7%) 15 (100.0%) 22.4667

Inspection 0 (0.0%) 2 (40.0%) 3 (60.0%) 5 (100.0%) 23.0000
N

Total 6 (5.0%) 66 (55.0%) 48 (40.0%) 120 21.6000

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The above table shows that 4 female respondents (12.5%) are satisfied very less and 52(59.1%)
male respondents are Moderately Satisfied. Calculated Chi-Square value, 2 (6.6067) is greater
than table value (5.991). Hence the null hypothesis is rejected. It is clear that there is a little
relationship between gender and level of satisfaction. Contingent Coefficient (0.219) is also
accepting the Chi-square result that there is a relationship but it is not at a greater level. From the
mean table the male respondents (21.9659) are Highly Satisfied than female respondents.
3 (3.8%) of the respondents were low satisfied in between the young age and 3 (8.6%) of the
respondents between the middle age. In young age, 44 (55.0%) were moderately satisfied.
Highly satisfied respondent were in young age, 33 (41.3%).Calculated Chi-Square value, 2
(2.573) is much lesser than the table (9.488).Hence the null hypothesis is accepted. It is clear that
there is no relationship between age and level of satisfaction from the calculated value.
Contingency Coefficient value (0.145) is also showing that than, there is no relationship between
age and level of satisfaction. From the mean value it is clear that the respondent in the age
between young age respondents (21.7750) are highly satisfied.
18 (66.7%) of Employees were Moderately Satisfied , 17(56.7%) of Business people were also
Moderately Satisfied ,14 (46.7%) of Student were also Moderately Satisfied , 5 (71.4%) of
House wife were Moderately Satisfied , Professional people of 14 (52.0%) were Highly Satisfied
and 1(100.0%) under searching for job category were Highly Satisfied. Since the calculated Chi-
square value (11.126) is lesser than the table value (18.31). Hence the null hypothesis is accepted
that there is no relationship between the occupation and level of satisfaction. Contingency
Coefficient (0.291) is also accepting the Chi-Square result that there is no relationship. The mean
value reveals that the respondent who search for job were 23.000 is greater than other,
Employees have 21.5926 in next mean level, and then House wife respondents were 19.4286 in
lower level than other group.
the respondent from the low income, 12 (54.5%) were moderately satisfied, respondent
from the moderate income group 47 (54.0%) were also moderately satisfied and the respondent
from the income of high income group 7 (63.6%) were also moderately satisfied. It is clear that
all types of respondents under the different income were only moderately satisfied. By the
calculated Chi-square value (12.034) is greater than the table value (9.49). Hence the null
hypothesis is rejected. It is clear that there is a relationship between income and level of
satisfaction. Contingency Coefficient (0.302) is also accepting the Chi-Square result that there
is a relationship. The Mean value of moderate income is (22.06) is greater than other group. It
shows that they are satisfied much. High income group people are satisfied less (19.64).

27 (60.0%) respondents has battery problem were moderately satisfied, 29 (52.7%) respondents
faced the improper functioning as their problem were moderately satisfied. 2 (40.0%)
respondents were moderately satisfied in installation and replacement and 3 (60.0%) of
respondents were highly satisfied in Inspection. Calculated Chi-Square value (2.953) is lesser
than the table value (11.07). Hence the null hypothesis is accepted. Hence there is no relationship
between the issue description and level of satisfaction. Contingency Coefficient (0.155) is also
accepting the Chi-Square result that there is no relationship between them.

8. SCOPE OF IMPROVEMENT
This is the very important factor in which determines the area to be improved in
customer‟s point of view can be understood.

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TABLE 4.18
SCOPE OF IMPROVEMENT
IMPROVEMENT FREQUENCY PERCENTAGE (%)
Price 41 34.2
Quality 37 30.8
Timely Service 42 35.0
Total 120 100.0

From the above table 42 (35.0%) of the customers the timely service from MAHA
electronics and 34.2% reveals that price is high than other centers and 30.8% of the respondents
says that quality in the service should be maintained.

9. CONCLUSION
This is an attempt to study the CRM in a service sector. The MAHA electronics is a
popular company for computer services in the Bangaluru. This article tried to measure the CRM
in the company. It is hoped that the result from the study could be useful for the further
development in the Customer relationship in the company and other companies in relating to the
same industry. The CRM is the important criteria in the service sector. All the companies in the
sector are focusing on the development of CRM. In the contemporary world, the CRM is
identified, measured and improved in various innovative methods. It becomes inevitable in the
modern era for the service sector.

REFERENCE

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Alexandra J. Campbell , 2003. “Creating customer knowledge competence: managing customer relationship
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8501(03)00011-7. Industrial Marketing Management, Volume 32, Issue 5, July 2003, Pages 375-383

ii
Rhett H. Walker , Heather Francis , 2003

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Systems”. Australasian Marketing Journal (AMJ), Volume 11, Issue 2, 2003, Pages 23-33.

iii
Ricardo Chalmeta , 2005 . “Methodology for customer relationship management”, Received 9 June 2005. Revised
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Pages 1015-1024iii

iv
Şevki Özgener , Rifat İraz , 2005. “Customer relationship management in small–medium enterprises: The case of
Turkish tourism industry”, Received 7 February 2005. Accepted 15 June 2005. Tourism Management, Volume 27,
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Chunqing Li, Yinfeng Xu , Hongyi Li.2005 “An empirical study of dynamic customer relationship management” ,
Available online 16 February 2005. http://dx.doi.org/10.1016/j.jretconser.2005.01.003

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vi
Seungjeong Yang , Jongtae Rhee , (2006) “Study of the wireless/wire integration CRM Gateway for the effective
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vii
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viii
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ix
Ramendra Singh, Abraham Koshy.2012 “Does salesperson's customer orientation create value in B2B
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xi
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65