Beruflich Dokumente
Kultur Dokumente
By
Prasanga A.W.R.P.S
An Integrated Research Project submitted to the Sri Lanka Institute of Marketing in partial
fulfilment of the requirements for the Postgraduate Diploma in Marketing
Prasanga AWRPS
Registration Number
0000017969
Criteria
Allocated
Marks
Awarded
Marks
10
10
15
10
Methodology of perspective
5
5.1
Conceptual framework
15
5.2
Operationalisation
10
10
Total
10
100
Special Remarks:
Signature of Examiner
By
Prasanga A.W.R.P.S
0000017969
This is to certify that I have examined and supervised the above integrated research project
and have found that it is complete and satisfactory in all respects and that all revisions
required by the evaluation/examination committee have been made.
TABLE OF CONTENT
1. Background of the company.......8
2. Background of the problem....9
2.1 Problem statement......11
3. The significance of the exploration of the problem.... 12
4. The objective of the research... 14
5. Brief literature review......16
5.1. Customer Retention...16
5.1.1 Relationship marketing and customer loyalty.........17
5.1.2. Relationship Marketing and Customer Satisfaction.......17
5.1.3. Relationship Marketing and Customer Trust ....18
5.1.4 Customer Satisfaction, Customer Trust and Customer Loyalty.18
5.1.5 Customer loyalty influences customer retention.........19
6. Methodology perspective.20
6.1. Operationalization.21
7. The approach to data collection....22
7.1. Quantitative design22
7.2. Primary data......22
7.3. Secondary data..22
7.4. Sampling design22
7.4.1. Research population...22
7.4.2. Sampling techniques..23
7.4.3. Sampling size.....23
7.5. Research instruments.23
7.6. Method of data analysis.....24
8. Delimitations of the study... 25
9. References... 26
LIST OF FIGURES
1. Customer satisfaction index rating . 10
2. Credit card usage limit.12
LIST OF TABLES
1. Hypothesis testing .. 15
2. Methodology framework. 20
3. Operationalization customer retention.....21
CUSTOMERS
2260,
26%
6290,
74%
Charted
Accountants
IESL Engineers
Source: internal annual portfolio report of NTB plc (primary card holders)
CHARTED ACCOUNTANTS
600
400
200
0
2013
2014
New Customers
2015
Discontinued Customers
Source: internal annual portfolio report of NTB plc (primary card holders)
CHARTED ACCOUNTANTS
600
400
200
0
2013
2014
New Customers
2015
Discontinued Customers
Source: internal annual portfolio report of NTB plc (primary card holders)
Figure No. 1
So to keep the position and dominate the market share, it is important to track the customer
feedbacks and take appropriate actions to develop business. Be the best one is not the hardest
part, but keeping the position as it is, the hardest. Customer retention is a series of activities
and/or strategies aimed at keeping customers from defecting to their competitors.
This research study is mainly focused to find out the factors which are affecting to the decline
of customer retention level of Amex Card of Nations Trust Bank. The satisfaction of the
customer is directly affected to the Customer Loyalty and it leads to customer retention in the
period of the service economy, improving the service quality has always been considered as
one of the effective ways to improve customer satisfaction.
10
11
Going by Central Bank of Sri Lanka data, however, there is an observable upward trend. As
of September 2015, there are 1,115,299 active credit cards in use. Of these, 31,289 are accepted
only locally, while 1,084,010 (over 97%) are accepted globally.
As well as, professional customer segments demand better quality service from banks; it has
bested the competition among various credit card issuers particularly those private sectors.
Therefore, this study found outs will helpful to find out factors caused to the decline of retention
of product and ways to maintain it without dropping of existing customers.
13
Hypothesis
H1
H2
H3
H4
H5
H6
14
H2
RELATIONAL
MARKETING
TACTICS
H3
CUSTOMER
SATISFACTION
H1
CUSTOMER TRUST
H4
CUSTOMER
LOYALTY
H5
Table No. 1
Relationship Marketing and Customer Loyalty: Do Customer Satisfaction and Customer Trust Really Serve as
Intervening Variables? Mohamad Rizan1, Ari Warokka2 and Dewi Listyawati
15
16
18
More than half of bank customers believe that having a relationship of trust with their
financial institution is more important than getting the best value for money according to the
study of Coulter and Coulter (2003). It describes that when the customers have trust on the
services and products of a company, then it will lead them towards loyalty (Ribbink, Liljander,
and Streukens, 2004).
Get closer than ever to your customers. So close that you tell them what they need well
before they realize it themselves (Steve Jobs).
We see our customers as invited guests to a party, and we are the hosts. Its our job every
day to make every important aspect of the customer experience a little bit better. Jeff Bezos
The role of trust is a crucial one (Harris and Goode, 2004). It affirms that customer loyalty
begins with trust. Based on those prior findings, the hypothesize the relation between customer
trust and customer loyalty can be mentioned as follows,
19
6. Methodology of Perspective
Survey method will be used for this study using questionnaire as data collection instrument.
The questionnaire will be adapted from scales already used for previous studies in the literature.
Systematic sampling technique used to select the individuals from membership directory data
collection was done through telephonic questionnaire survey.
Table No. 2
The framework above shows proposed framework to serve as foundation of this study. The
purpose of this study is to examine how above mention factors affect to customer retention of
Nations Trust bank American Express card.
20
6.1. Operationalization
Operationalization of customer retention
Table No.3
21
systematic sampling has been chosen in order to select professionals which is the respondents
in this study. , systematic sampling is one of the probabilities sampling, which researcher first
randomly picks the first item or subject from the population. Then, the researcher will select
each not subject from the list.
The sample has been selected from the charted accountants and IESL engineers who have
obtained their memberships after 2006, stratified sampling and the sample compromised 150
individuals from each segment 75, who have obtained card facility regardless existing or cancel
the facility. When choosing the sample researcher will select every 3rd individual systematically
along with membership nos issued after 2006 because each individual in the population has
an equal likelihood or chance to be chosen.
23
24
25
9. References
Sekaran, U. and Bougie, R. (2009). Research Methods for Business: A Skill Building
Approach. A John Wiley and Sons, Ltd, Publication
Sekaran, U. and R. Bougie (2010). Research methods for business: A skill building approach.
Wiley, London.
Aydin, S., & zer, G. (2005). The analysis of antecedents of customer loyalty in the Turkish
mobile telecommunication market. European Journal of Marketing, 39(7/8), 910-925.
Blery, E., Batistatos, N., Papastratou, E., Perifanos, I., Remoundaki, G., & Retsina, M.
(2009). Service quality and customer retention in mobile telephony. Journal of Targeting,
Measurement and Analysis for Marketing, 17(1), 27-37.
Ismail, I., Haron, H., Ibrahim, D. N., & Isa, S. M. (2006). Service quality, client satisfaction
and loyalty towards audit firms: Perceptions of Malaysian public listed companies.
Managerial Auditing Journal, 21(7), 738-756.
Grnroos, C. (2004). The relationship marketing process: communication, interaction,
dialogue, value. Journal of Business & Industrial Marketing, 19(2), 99-113.
Kotler, P., Keller, K. L., Koshy, A., & Jha, M. (2009). Marketing management: A South
Asian perspective (13th ed.). New Delhi, DL: Pearson Prentice Hall.
Liu, Y., Li, Y., Tao, L., & Wang, Y. (2008). Relationship stability, trust and relational risk in
marketing channels: Evidence from China. Industrial Marketing Management, 37(4), 432446.
Mark N.K. Saunders. (2009). Research Methods for Business Students (5th Edition). Prentice
Hall.
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