Determinants of customer loyalty factors and its impact in consumer durable white goods market in chennai city, tamilnadu a study
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Determinants of customer loyalty factors and its impact in consumer durable white goods market in chennai city, tamilnadu a study Determinants of customer loyalty factors and its impact in consumer durable white goods market in chennai city, tamilnadu a study Document Transcript

  • International Journal of Management (IJM)– 6502(Print), ISSN 0976 – 6510(Online)International Journal of Management (IJM), ISSN 0976ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)Volume 2, Number 1, Dec - Jan (2011), © IAEME IJMVolume 2, Number 1, Dec - Jan (2011), pp. 15-29© IAEME, http://www.iaeme.com/ijm.html ©IAEM EDETERMINANTS OF CUSTOMER LOYALTY FACTORS AND ITS IMPACT IN CONSUMER DURABLE WHITE GOODS MARKET IN CHENNAI CITY, TAMILNADU-A STUDY A.R.Krishnan Research Fellow, SRM School of Management SRM University, Chennai, India Email: arkrish555@yahoo.comABSTRACT This study is initiated on determinants of customer loyalty factors in consumerdurable white goods in Chennai city, Tamilnadu, India. The questionnaire is designed bythe researchers a seven item scale from strongly disagree (-3) to strongly agree (+3) toidentify variables of customer loyalty. In the present study therefore used cronbach’salpha scale as a measure of reliability. Its value is estimated 0.947. Sophisticatedstatistical model ‘Regression analysis’ has been used. The factors of deliver on promises,provides accurate brand information, value for me, good brand choice, handles criticalproblem well, consistence in service, lowest price, less transaction time, need fulfillment,rewards programs and properly settled complaints constituted the key factors of customerloyalty in white goods in Chennai city. Finally outcome of this research would be helpfulto the practitioners, planners, policy makers and academicians who are involved in theconcerned area.Keywords: Customers, Customer Loyalty, CRM.1.0 INTRODUCTION Customer Relationship Management (CRM) is about developing learningrelationships in which companies exchange personalized service for the loyalty of theircustomer. Customers convey their preferences, explicitly and implicitly, to the companythrough communications and purchasing behavior. Companies track and act upon thesepreferences with customized products and personalized service. The companyunderstanding of customer preferences is hard won over time by both the company and 15
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)Volume 2, Number 1, Dec - Jan (2011), © IAEMEthe customer. This learning relationship becomes a unique and valuable service offeredby the company and the customer’s response with loyalty and repeat business. The consumer durables industry consists of durable goods and appliances fordomestic use such as refrigerators, air conditioners and washing machines. Products thatarent consumed or quickly disposed of and can be used for several years are durablegoods also called hard goods. White goods are generally machines which perform housekeeping tasks, such ascooking, food preservation, and cleaning clothes. The consumer durable white goodsindustry is heavily influenced by various energy-saving regulations, affecting not only theappliances themselves, but the manufacturing facilities as well.1.1 Need and Importance of CRM The customer relationship approach realizes that the marketing risk is importantbut at the same time the focus is on shifting efforts solely from customer acquisition tocustomer retention as well as to ensure the optimality and equality of resources viz, timemoney and manpower. Thus the focal point of customer relationship marketing isdisciplined, holistic approach in identifying the taste and preferences on individual basisto develop and enhance relationship over the customer life. As promise and trust are the two key elements in the customer relationshipmanagement, the responsibility of the marketer does not pre-dominantly includepromising and persuading customers as passive counter parts in the market place, but it iswith the help of these promises that he can build and maintain the relationship with thecustomers. Hence is important to fulfill promises to achieve customer satisfaction,customer retention and customer base building and long term profitability. However incustomer relationship management, every customer is viewed on the terms of his lifetimevalue as equivalent to a market.1.2 CRM Objectives CRM is not a short term phenomenon. The adoption of relationship requires sheerpatience and the result bear fruit after a few years. • To develop strongest relationship with the customer by the marketers have to identify, built a data base of current and potential customers with lots of information about their needs and preferences. 16
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)Volume 2, Number 1, Dec - Jan (2011), © IAEME • To enhance the relationship with the customers on long term basis in order to ensure long term relationship marketing, do not get the customer forget about over the life time.2.0 LITERATURE REVIEW Customer relationship management managing the customers has become one ofthe central ways to make the companies’ operations more effective and profitable(Raulas, 2005). Customers should be seen as investments, because without customers acompany will not have any profits, no revenues and consequently no market value.Customers are without a question the life-blood of any organization (Gupta andLehmann, 2005). The underlying assumption of CRM is that by nurturing the existingcustomer relationships and keeping the lucrative customers satisfied and loyal it ispossible to make the business more profitable. The relationship should however benefitboth the company and the customers, so that a mutually beneficial relationship isgenerated (Raulas, 2005). Loyalty is defined as “a state of mind, a set of attitudes, beliefs, desires and so on”stone, (2000). Kotler (2008) said that delighted customers become loyal to theorganization and customer relationship management plays an important role in makingcustomers loyal. Further among the satisfied customers, completely satisfied customersonly can be a delighted one. Thus CRM has to focus on customer delight rather thansatisfaction. However, Hill and Alexander 2006, argue that misunderstanding of customerloyalty by the senior managers and marketing executives have mislead strategies forsecuring the customer loyalty and also criticized that many of them take afford to attractthe customers by giving some bribe to customers. Reliability, serviceability and energy-saving features were the attributesconsumers desired most. Brand name communicated quality to them, but was not animportant choice criterion. However, consumers were willing to pay more for an air-conditioner with a reputation for quality. It is also indicated that consumers searched forproduct information from friends and family, manufacturers websites and brochures, butnot from the Yellow Pages or through salespeople. However, dealers were highlyinfluential during the decision-making process by helping consumers to refine their 17
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)Volume 2, Number 1, Dec - Jan (2011), © IAEMEchoice criteria and choose systems that satisfied their end goals Victoria Seitz, NabilRazzouk, David Michael Wells, (2010). Raulas (2005) underlines, that regular contact is the critical factor in thedevelopment of the relationship. There is a positive effect on customer relationships if thecompany manages to keep the optimal contact with its customers. One of thecornerstones of CRM is to perform intentional, measurable and an adequate amount ofcommunication that is conducted in right time, and with the right customization andthrough the right channel. Previous research has proved that the most important reasonwhy customers switch to competitors is the lack of contact or insufficient communicationfrom the company (Raulas, 2005). In simple terms, customer loyalty from Czepiel’s (1990) perspective is a notion todescribe the end result of a relationship between the company and the customer. In orderto gain loyalty, the company can provide incentives that will increase the value for thecustomers and in that manner create buying fidelity among them (Blomqvist et al., 2000).From that point of view, a loyal customer engages the company over a long-term tosatisfy his/her needs or a part of the need (Blomqvist et al., 2000). Customer loyalty isalthough a more complex concept than that. By screening the theories, the authors havechosen to focus on three different theories: Three drivers of retention (Gustavfsson,Johansson and Roos, (2005), Relative attitude and behavior relationship (Dick and Basu,1994) and the conceptualization of customer loyalty (Dowling et al., 2003). Loyalty programme, quality is important for relationship quality; however, effortsto assure personal interaction quality with customers are needed to improve relationshipquality as well as customer loyalty (Patrick Vesel, Vesna Zabkar, 2010).3.0 STATEMENT OF THE PROBLEM: The factors determining customer loyalty have been brought to light by marketingresearch. But this information still is far away for some producers engaging in theproductions and services. Consequently producers are unable to exploit this informationfor their success. However white goods in Chennai are one of most competitive segmentsand also pointed out this competition will create more challenging environment inmaintaining their market share. This encouraged the researchers to do this research. 18
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)Volume 2, Number 1, Dec - Jan (2011), © IAEME4.0 OBJECTIVES OF THE STUDY: 1. To examine key factors of customer loyalty in consumer durable white goods in Chennai city 2. To determine the factors of customer loyalty in leading consumer durable markets of Chennai city 3. To suggest certain measures in order to improve the customer loyalty in leading brands of white goods.5.0 RESEARCH DESIGN AND STRATEGY:5.1 Period of study This research was conducted from October to December 2010.5.2 Sampling strategy The study was conducted for 1050 respondents using convenient sampling, nonprobability method.5.3 Data sources The study was complied with the help of primary data. Primary data werecollected through questionnaire survey. Secondary sources were collected from journals,magazines, and hand books.5.4 Measures: The questionnaire was administered to 1050 respondents in the city of Chennai.Based on the literatures and experts advice questionnaire is designed. In the questionnairea seven point likert’s summated rating scale from strongly disagree (-3) to strongly agree(+3) was adopted to identify the variables of customers loyalty.5.5 Statistical Tools used In the present study, we analyzed our data by employing regression model. Forthe study entire analysis is done by personal computer. A well known statistical packageof Statistical Package for Social Sciences (SPSS) 13.0 versions was used in order toanalyze the data.6.0 ANALYSIS AND THEIR FINDINGS: To identify the potential underlying dimensions of the customer loyalty of thedurable white goods respondents are used in the present section. Responses of the 19
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)Volume 2, Number 1, Dec - Jan (2011), © IAEMEvariable are subjected to regression model method. Before applying regression model,testing of the reliability of the scale is very much important as it shows to which a scaleprocedures consistent result if measurements are made repeatedly. In this section,researches therefore, used cronbach’s Alpha scale as a measure of reliability. Its value isestimated to be 0.849 for Audio brands, 0.891 for Washing machine, 0.922 for Airconditioner, and 0.836 for refrigerator of customer loyalty variables. If we compare ourreliability value with the standard value alpha of 0.6 advocated by Cronbach’s (1951), amore accurate recommendations Nunnally & Bernstein(1994) or with the standard valueof 0.6 as recommended by Bagozzi & Yi’s (1988) researchers find that the scales used byus are highly reliable for regression model.6.1 Regression Model On Customer Loyalty An in depth study of loyalty would not be complete without the identification ofthe key indicators of customers loyalty. Assuming the existence of linear relationshipbetween the independent variables and dependent variable, multiple regression analysishas done between the level customer loyalty of the different predictor variables of loyaltyand overall loyalty of the service.6.1.1 Regression model on Customer Loyalty Audio Brands. This study attempted to develop a model to analyze loyalty of audio brands.Stepwise regression analysis of loyalty (Y) is performed with the variables X1- Deliveron promises; X2- Provides accurate brand information , X3- Value for me; X4- Goodbrand choice; X5- Handles critical problem well; X6- Consistence in service; X7- Lowestprice; X8- Less transaction time; X9- Need fulfillment;X10- Rewards programs, X11-Properly settled complaints for the audio brands. 20
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)Volume 2, Number 1, Dec - Jan (2011), © IAEME Table 1.1 Regression Model-Loyalty-Audio BrandsModel R R Square Adjusted R Square Std. Error of the Estimate1 .776a .602 .596 .227 bANOVAModel Sum of Squares df Mean Square F Sig.1 Regression 65.335 11 5.940 114.994 .001a Residual 43.283 838 .052 Total 108.618 849 aCoefficients Un standardized Standardized Coefficients Coefficients t Sig.Model B Std. Error Beta (Constant) 2.799 .055 51.149 .000 Deliver on promises -.054 .010 -.143 -5.250 .001 Provides accurate brand information -.065 .014 -.159 -4.480 .001 Value for me -.017 .013 -.040 -1.335 .182 Good brand choice -.108 .015 -.222 -7.298 .001 Handles critical problem well -.031 .012 -.085 -2.643 .008 Consistence in service -.011 .010 -.033 -1.118 .264 Lowest price .028 .011 .081 2.639 .008 Less transaction time -.085 .012 -.239 -7.395 .001 Need fulfillment -.036 .012 -.093 -3.132 .002 Rewards programs -.048 .012 -.146 -4.075 .001 Properly settled complaints .004 .010 .014 .408 .683a. Dependent Variable: overall audio loyaltySource: Field Survey 2010 level of significance (0.05%) The R value (0.776) indicates the multiple correlation coefficients between all theentered independent variables and dependent variables. The R square value in the modelsummary table shows the portion of the variance accounted for by the independentvariables that is approximately 60% of variance in loyalty is accounted for by. TheANOVA table indicates the p-level to be 0.001.This indicates that the model isstatistically significant at a confidence level of 99.999. The P-level indicates thesignificance of the F value. Also note that t- tests significance of individual independentvariables indicate that Deliver on promises; Provides accurate brand information ;Goodbrand choice; Handles critical problem well, Lowest price, Less transaction time, Needfulfillment, Rewards programs for the audio brands are the independent variables arestatistically significant in the model. The standardized coefficients Beta column, gives the 21
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)Volume 2, Number 1, Dec - Jan (2011), © IAEMEcoefficients of independent variables in the regression equation including all the predictorvariables. Customer Loyalty Y = -0.143 x1-0.159 x2 -0.040 x3 -0.222 x4 -0.085 x5 -0.033 x6+0.081 x7 -0.239 x8 -.093 x9 -0.146 x10 +0.014 x11 (1.1)6.1.2 Regression model on Customer Loyalty Washing machine Brands. This study attempted to develop a model to analyze loyalty of washing machinebrands. Enter method regression analysis of loyalty (Y) is performed with the variablesX1- Deliver on promises; X2- Provides accurate brand information , X3- Value for me;X4- Good brand choice; X5- Handles critical problem well; X6- Consistence inservice;X7- Lowest price;X8- Less transaction time; X9- Need fulfillment;X10- Rewardsprograms,X11- Properly settled complaints for the washing machine brands. Table 1.2 Regression Model-Loyalty-Washing machine Brands Model R R Square Adjusted R Square Std. Error of the Estimate 1 .842a .710 .706 .206 b ANOVA Model Sum of Squares df Mean Square F Sig. 1 Regression 93.595 11 8.509 199.637 .000a Residual 38.273 898 .043 Total 131.868 909 Coefficientsa Unstandardized Standardized Coefficients Coefficients Model B Std. Error Beta t Sig. (Constant) 3.141 .054 57.991 .000 Deli Deliver on promises -.042 .011 -.103 -3.963 .001 Provides accurate brand - -.181 .012 -.400 .001 information 14.588 Value for me -.066 .013 -.134 -5.031 .001 Good brand choice -.039 .012 -.081 -3.306 .001 Handles critical problem well .020 .011 .054 1.824 .069 Consistence in service -.036 .008 -.101 -4.386 .001 Lowest price -.014 .008 -.037 -1.662 .097 Less transaction time -.070 .010 -.177 -6.752 .001 Need fulfillment -.018 .014 -.041 -1.297 .195 Rewards programs -.033 .012 -.097 -2.759 .006 Properly settled complaints -.009 .011 -.027 -.841 .401 a. Dependent Variable: overall washing machine loyaltySource: Survey 2010 level of significance (0.05%), 22
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)Volume 2, Number 1, Dec - Jan (2011), © IAEME The R value (0.842) indicates the multiple correlation coefficients between all theentered independent variables and dependent variables. The R square value in the modelsummary table shows the portion of the variance accounted for by the independentvariables that is approximately 71% of variance in loyalty is accounted for by. TheANOVA table indicates the p-level to be 0.001.This indicates that the model isstatistically significant at a confidence level of 99.999. The P-level indicates thesignificance of the F value. Also note that t- tests significance of individual independentvariables indicate that Deliver on promises; Provides accurate brand information , Valuefor me; Good brand choice; Consistence in service; Less transaction time; Rewardsprograms, Properly settled complaints are the independent variables are statisticallysignificant in the model. The standardized coefficients Beta column, gives thecoefficients of independent variables in the regression equation including all the predictorvariables. Customer Loyalty Y = -0.103 x1 -0.400 x2 -0.134 x3 -0.081 x4 +.054 x5 -0.101 x6 -0.037 x7 -0.177 x8 -0.041 x9 -0.097 x10 -0.027 x11. (1.2)6.1.3 Regression model on Customer Loyalty -Air conditioner Brands. This study attempted to develop a model to analyze loyalty of air conditionerbrands. Enter method regression analysis of loyalty (Y) is performed with the variablesX1- Deliver on promises; X2- Provides accurate brand information , X3- Value for me;X4- Good brand choice; X5- Handles critical problem well; X6- Consistence inservice;X7- Lowest price;X8- Less transaction time; X9- Need fulfillment;X10- Rewardsprograms,X11- Properly settled complaints for the air conditioner brands. 23
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)Volume 2, Number 1, Dec - Jan (2011), © IAEME Table 1.3 Regression Model-Loyalty-Air conditionner BrandsModel R R Square Adjusted R Square Std. Error of the Estimate1 .865a .748 .745 .213 b ANOVA Model Sum of Squares df Mean Square F Sig.1 Regression 107.297 11 9.754 215.344 .001a Residual 36.146 798 .045 Total 143.443 809 Coefficientsa Unstandardized Standardized Coefficients Coefficients Std.Model B Error Beta t Sig. (Constant) 2.706 .048 56.926 .001 Deliver on promises -.046 .009 -.115 -5.070 .001 Provides accurate brand information -.016 .014 -.040 -1.149 .251 Value for me -.017 .014 -.036 -1.199 .231 Good brand choice -.029 .003 -.158 -8.332 .001 Handles critical problem well .024 .011 .061 2.299 .022 Consistence in service -.076 .010 -.189 -7.683 .001 Lowest price .031 .011 .074 2.794 .005 Less transaction time -.009 .011 -.022 -.845 .399 Need fulfillment -.022 .012 -.054 -1.847 .065 Rewards programs -.212 .014 -.615 -15.648 .001 Properly settled complaints -.013 .012 -.036 -1.121 .263a. Dependent Variable: overall ac loyaltySource: Survey 2010 level of significance (0.05%) The R value (0.865) indicates the multiple correlation coefficients between all theentered independent variables and dependent variables. The R square value in the modelsummary table shows the portion of the variance accounted for by the independentvariables that is approximately 75% of variance in loyalty is accounted for by. TheANOVA table indicates the p-level to be 0.001. This indicates that the model isstatistically significant at a confidence level of 99.999. The P-level indicates thesignificance of the F value. Also note that t- tests significance of individual independentvariables indicates that deliver on promises, good brand choice, consistence in service,lowest price, rewards programs are the independent variables are statistically significantin the model. The standardized coefficients Beta column, gives the coefficients ofindependent variables in the regression equation including all the predictor variables. 24
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)Volume 2, Number 1, Dec - Jan (2011), © IAEME Customer Loyalty Y = -0.115 x1 -0.040 x2 -0.036 x3-0.158 x4+0.061 x5-0.189 x6+0.074x7-0.022 x8 -0.054 x9 -0.615 x10 -0.036 x11 (1.3)6.1.4 Regression model on Customer Loyalty -Refrigerator Brands. This study attempted to develop a model to analyze loyalty of audio brands.Stepwise regression analysis of loyalty (Y) is performed with the variables X1- Deliveron promises; X2- Provides accurate brand information , X3- Value for me; X4- Goodbrand choice; X5- Handles critical problem well; X6- Consistence in service; X7- Lowestprice; X8- Less transaction time; X9- Need fulfillment;X10- Rewards programs,X11-Properly settled complaints for the refrigerator brands. Table 1.4 Regression Model-Loyalty-Refrigerator BrandsModel SummaryModel R R Square Adjusted R Square Std. Error of the Estimate a1 .820 .673 .669 .192 b ANOVA MeanModel Sum of Squares df Square F Sig.1 Regression 71.369 11 6.488 175.262 .001a Residual 34.724 938 .037 Total 106.094 949 Coefficientsa Unstandardized Standardized Coefficients CoefficientsModel B Std. Error Beta t Sig. (Constant) 2.403 .046 52.091 .000 Deliver on promises -.091 .009 -.250 -10.593 .001 Provides accurate brand information -.009 .010 -.024 -.871 .384 Value for me -.038 .010 -.100 -3.959 .001 Good brand choice -.032 .008 -.089 -3.916 .001 Handles critical problem well -.092 .010 -.238 -9.196 .001 Consistence in service .062 .008 .182 7.767 .001 Lowest price .070 .007 .222 9.534 .001 Less transaction time -.080 .009 -.220 -8.661 .001 Need fulfillment .041 .012 .094 3.470 .001 Rewards programs -.142 .009 -.477 -15.759 .001 Properly settled complaints -.014 .009 -.041 -1.481 .139a. Dependent Variable: overall ref loyaltySource: Survey 2010 level of significance (0.05%) 25
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)Volume 2, Number 1, Dec - Jan (2011), © IAEME The R value (0.820) indicates the multiple correlation coefficients between all theentered independent variables and dependent variables. The R square value in the modelsummary table shows the portion of the variance accounted for by the independentvariables that is approximately 67% of variance in loyalty is accounted for by. TheANOVA table indicates the p-level to be 0.001.This indicates that the model isstatistically significant at a confidence level of 99.999. The P-level indicates thesignificance of the F value. Also note that t- tests significance of individual independentvariables indicates that Deliver on promises, Value for me, Good brand choice, Handlescritical problem well, Consistence in service, lowest price, less transaction time, Needfulfillment, Rewards programs are the independent variables are statistically significantin the model. The standardized coefficients Beta column, gives the coefficients ofindependent variables in the regression equation including all the predictor variables. Customer Loyalty Y = -0.250 x1- 0.024 x2 -0.100 x3 -0.089 x4 -0.238 x5 +0.182 x6+0.222 x7 -0.220 x8 +0.094 x9 -0.477 x10 -0.041 x11. (1.4)Table shows the Mean and Standard Deviation of dependent variable Customer Loyalty Table 1.5 Dependent variable Mean Std deviation value Loyalty –White goods value Audio brands 34.22 17.351 Washing machine 37.54 16.341 Air conditioner 32.98 19.437 Refrigerator 39.50 14.433Findings on Customer Loyalty –Regression model1. It is inferred that from the regression model on loyalty of audio brands deliver on promises, provides accurate brand information, good brand choice, handles critical problem well, lowest price, less transaction time, need fulfillment, rewards programs for the audio brands are the independent variables are statistically significant. These factors have positive impact on customer loyalty and, value for me, consistence in service, properly settled complaints are the factors have negative impact on customer loyalty.2. It is inferred that from the regression model on loyalty of washing machine brands deliver on promises, provides accurate brand information , value for me, good brand choice, consistence in service, less transaction time, rewards programs, properly settled complaints are the independent variables are statistically significant. These 26
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)Volume 2, Number 1, Dec - Jan (2011), © IAEME factors have positive impact on customer loyalty and handles critical problem well, lowest price, need fulfillment, properly settled complaints are factors have negative impact on customer loyalty.3. It is inferred that from the regression model on loyalty of air conditioner brands deliver on promises, good brand choice, consistence in service, lowest price, rewards programs are the independent variables are statistically significant. These factors have positive impact on customer loyalty and provide accurate brand information, value for me, handles critical problem well, less transaction time, need fulfillment, and properly settled complaints are factors have negative impact on customer loyalty.4. It is inferred that from the regression model on loyalty deliver on promises, value for me, good brand choice, handles critical problem well, consistence in service, lowest price, less transaction time, need fulfillment, rewards programs are the independent variables are statistically significant. These factors have positive impact on customer loyalty and provide accurate brand information; properly settled complaints are factors have negative impact on customer satisfaction.7.0 SUGGESTIONS AND RECOMMENDATIONS TO THEMARKETERS 1. The marketers must consider taking measure to make consumer durable whitegoods customer more customers friendly. There being a strong association betweensatisfaction and loyalty, the decision makers must take advantages of this and try tostrengthen the relationship between loyalty and retention too. 2. It is found that the CRM practices in the consumer durable white goods are stillin its infancy, yet to get a firm foothold. Consequently, the impact of CRM on retentionof customers is also weak. The industry has to move beyond the level of satisfaction andstrive to create loyalty by adopting appropriate strategies like cross selling, up sellingwhich will have a positive impact on retention 3. It is observed from the findings; customers are highly dissatisfied with loyaltyprograms of audio, washing machine and refrigerator brands. Audio brands marketersmay concentrate more on improving loyalty programs like, buy back offers, promotionalschemes, personalized greetings, reminder of spouse wedding days offer gifts. Washing 27
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)Volume 2, Number 1, Dec - Jan (2011), © IAEMEmachine brands marketers may concentrate more on loyalty programs by special offers,new schemes. Air conditioner brands marketers may concentrate more on loyaltyprograms like, service enhancement by offering more number of years extended AMC.REFERENCES:1. Ather, S.M & Nimalathasan, B, (2009). “Factor Analysis: Nature, Mechanism & Uses in Social and Management Researches”, Journal of the Institute of Cost of Management Accountant of Bangladesh, XXXVII (2), 12-17.2. Bagozzi, R.P., & Yi, Y(1988). “On the Evaluation of Structural equation Models”, Journal of Academy of Marketing Science, 16(1), 74-95.3. Butscher, Stephan A, (1998), “Customer Clubs and Loyalty Programmes: A Practical-guide” Publisher: Aldershot, Gower.4. Cronbach,L.J, (1951),”Coefficient Alpha and the Internal Structures of Tests”, Psychometrica, 6(3), 297-334.5. Darrel K.Radarigby , Fredrick F. Reich held and Phil Schefter (2002)- Avoid the four perils of CRM, Harvard Business review.6. Dowling, G. R, and Uncles, M. (1997), Do Customer Loyalty Programs Really Work? Sloan Management Review, Vol. 38, Issue. 4; p. 71 (12 pages)7. Field, A (2000), “Discovering statistics using SPSS for Windows, London: Sage publications.8. Gupta, S. and Lehmann, D.R..,(2005), “Managing Customers as Investments, The Strategic Value of Customers in the Long Run, Wharton School Publishing.9. Gustavfsson, A., Johansson,M.D., and Roos, I. (2005). ”The Effects of Customer Satisfaction, Relationship Commitment Dimensions, and Triggers on Customer Retention”, Journal of Marketing, Vol. 69.10. Hill. N and Allexander J (2006). “The Hand book of customer Satisfaction and Loyalty Measurement”, 3ed, Hampshire:Gower Publishing Limited.11. Kotler, p., Armstrong G., Wong, V and Saunders, J (2008), “Principles of Marketing”, 5th ed London, Library of congress.12. Lancaster, G. and Reynolds,P, (2004).”Marketing Creative Print & Design (Wales)”, Ebbw Vale.13. Madhavilatha K., (2004) Analytical CRM, ICFAI press. 28
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)Volume 2, Number 1, Dec - Jan (2011), © IAEME14. Nunnally, J.C & Bernstein (1994), “Ira Psychometrics Theory”, New York, Tata McGraw Hill Ltd, New Delhi.15. Patrick Vesel, Vesna Zabkar, (2010) "Relationship quality evaluation in retailers relationships with consumers", European Journal of Marketing, Vol. 44 Issue: 9/10, pp.1334 – 1365.16. Pitta, D.A. (1998). “Marketing one-one-one and its Dependence on Knowledge discovery in Databases”, The Journal of Consumer Marketing, Vol. 15. No 5, pp. 468-48017. Satyanarayana Chary, et al (2003)., CRM & SCM- The New Business Strategies, Prestige journal of Management and research, Indore.18. Shajahan S (2006), “Relationship Marketing”, Tata McGraw-Hill Publishing Company LTd, New Delhi.19. S.M.Jha (1998) Services marketing, Himalaya Publishing House, New Delhi20. Sudhir Zutshi (July-September 2003) “Relationship Marketing, A real market conditions”, JIMS 8M.21. Muncy, J.A., (1983), “An Investigation of Two Dimensional Conceptual Brand Loyalty”, Ph.D., Thesis, Texas Tech University.22. Victoria Seitz, Nabil Razzouk, David Michael Wells, (2010). "The Importance of Brand Equity on Purchasing Consumer Durables: An Analysis of Home Air- conditioning systems", Journal of Consumer Marketing, Vol. 27 Issue: 3, pp.236 – 242. 29