ABSTRACT
The purpose of this research is to examine the effects of customer relationship management (CRM) on customer retention by agribusinesses in Aba Metropolis of Abia State. To achieve the aim of this study, fourteen agribusiness firms were randomly selected and from each firm, two staff and five customers were randomly selected. A total of 98 respondents were therefore used for the study. Data were collected from both primary and secondary sources. Primary data were collected using a well structured sets of questionnaire designed for the respondents. The data were analyzed quantitatively using descriptive statistics (means and standard deviations) and binary logit regression analyses. The results of the analyses showed that CRM strategies play major role in customer retention, and there are effective CRM strategies agribusiness firms use that are acknowledged by customers that has encouraged their retention in the various firms. More so, the results obtained showed that certain extents of these strategies of CRM were helpful in customer retention; however certain challenges facing these agribusiness firms were identified. Some socioeconomic characteristics of the customers were found as factors that could affect customer retention (p<0.05), on the contrary, the overall effect of the socioeconomic characteristics of customers and firms were found not to have any significant effect on customer retention (p<0.05). The study concludes that effective CRM strategies are valuable tools for customer retention. The incorporation of the findings of this research work in CRM strategies would serve as competitive edge to attract and retain potential customers by agribusiness firms.
Key Words – Customer Retention, Customer Relationship Management, Agribusiness Firms, Aba Metropolis
TABLE OF CONTENTS
Title Page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of Contents vi
List of Tables vii
List of Figures viii
CHAPTER ONE: INTRODUCTION
1.1 Background Information – – – – – 1
1.2 Problem Statement – – – – – – 5
1.3 Objectives of the study – – – – – – 8
1.4 Hypotheses – – – – – – – 9
1.5 Justification of the study – – – – 9
1.6 Limitations of the study 9
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Concept of Customer Relationship Management – 10
2.1.1 Relationship Marketing and Customer Relationship Management 12
2.1.2 Customer Relationship Management for Agribusiness – 13
2.2 The Role of Customer Relationship Management Process in Customer Retention 16
2.3 Effects of Socio-Economic Characteristics on Customer Retention 16
2.3.1 Gender of Customers 16
2.3.2 Age of Customer 17
2.3.3 Income Levels of Customer 18
2.3.4 Educational Level of Customers 18
2.4 Effective CRM Strategies and Their Effects on Customer Retention -18
2.4.1 Strategies for Customer Relationship Management Initiatives – 19
2.5 Determine the Extent to Which Effective CRM influence Customer Retention 25
2.5.1 Effect of CRM on Customer Satisfaction – – 26
2.5.2 Relating CRM and Customer Loyalty – – – – 27
2.5.3 Effect of CRM on Customer Loyalty – – – – 27
2.5.4 Customer Retention – – – – – – 29
2.5.5 Effects of CRM on Agribusiness Firms – – 30
2.6 Challenges and Benefits of using CRM in Agribusiness – 31
2.6.1 Benefits of CRM in Agribusiness – – – 32
2.7 Theoretical Framework – – – – – 35
2.8 Analytical Framework – – – – 37
2.8.1 Likert rating scale – – – – – – 37
2.8.2 Binary Logit Model – – – – – – – 38
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Study Area 39
3.2 Sampling procedures 39
3.3 Validity and Reliability Test Result 40
3.4 Data Collection 40
3.5 Data Analysis 41
3.6 Model Specification 41
3.6.1 Likert Rating Scale 41
3.6.2 Binary logit model 42
CHAPTER FOUR: RESULTS AND DISCUSSION
4.1 The Role of Customer Relationship Management Process in Customer Retention 46
4.2 The Effects of Socioeconomic Characteristics of Both Customers and Firms on Customer Retention 47
4.2.1 Effects of Socioeconomic Characteristics of Customers on Customer Retention 47
4.2.2 The Effect of Firms Characteristics on Customer Retention 51
4.3 Effective Customer Relationship Management Strategies 54
4.4 The Extent to Which Effective CRM Can Lead to Customer Retention 55
4.5 The Effects Of CRM on Agribusiness Firms 56
4.6 The Challenges of agribusiness firms in their practice of CRM 58
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of findings 60
5.2 Conclusion 62
5.3 Recommendations 63
REFERENCES
LIST OF TABLES
Table 4.1: Descriptive Statistics 46
Table 4.2.1: Dependent Variable Encoding 48
Table 4.2.2: Classification Tablea 48
Table 4.2.3: Model Summary 49
Table 4.2.4: Showing Socioeconomic Characteristics of Customers that could have Effect on Customer Retention 50
Table 4.2.5: Hosmer and Lemeshow Test 51
Table 4.3.1: Dependent Variable Encoding 51
Table 4.3.2: Classification Tablea 52
Table 4.3.3: Model Summary 52
Table 4.3.4: Showing Socioeconomic Characteristics of Firms that could have Effect on Customer Retention 53
Table 4.3.5: Hosmer and Lemeshow Test 54
Table 4.4: Descriptive Statistics 54
Table 4.5: Descriptive Statistics 56
Table 4.6: Descriptive Statistics 57
Table 4.7: Descriptive Statistics 58