Abstract For First International Conference On Emerging Issues in Marketing Theory and Practice: Challenges and Prospects.

IIM Calcutta, Kolkata, India December 27 -29, 2010

Title:

CRM in Indian Retailing

Track: Relationship Marketing Track No. 9

By

Dr. Sapna Rakesh Professor Institute of Technology & Science Ghaziabad , U.P. - 201007 Mobile: + 91 9213991830 sapna.rakesh@gmail.com

Ms. Swati Singh Assistant Professor Institute of Technology & Science Ghaziabad , U.P.- 201007 Mobile: + 91 9313808861 swatisingh2620@gmail.com

ABSTRACT

CRM in Indian Retailing

Customer relationship management has emerged as the core marketing activity for the organizations operating in fierce competitive environment. Paravatiyar and Sheth (2001) defined CRM as a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for the company and the customer. The BMI India Retail Report for the third-quarter of 2010 suggests that India Retail Sector is on boom. Indian retailers are using CRM to win customers. This research would study the major CRM initiatives used by Indian retailers and customer perception towards the CRM initiatives. Key Words: Customer relationship, CRM initiatives, Retailing. Research Questions The research would address the following research questions: RQ1: What are the major CRM initiatives of Indian retailers? RQ2: What are the major objectives of these CRM initiatives? RQ3: What is customer perception towards the CRM initiatives?

Literature Review Customer Relationship management is largely discussed in literature related to relationship marketing, and data based marketing. Kotler and Armstrong define CRM as the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction (2004, p. 16). Customer relationship management (CRM) starts with in depth knowledge of customer, their habits, desires and their needs. Ganeshan (1994) points out that CRM initiatives focuses on collaborative and cooperative relationship oriented towards long term relationships. CRM is one of the most effective systems being used in order to attract and retain customers. Retailers are realizing more and more that it pays off to invest in customer relationships (DeWulf et al., 2001; Sirohi et al., 1998; Srivastava et al., 2000). According to AT KEARNEY Global Retail Development Index 2010 India was amongst the top three emerging retail market and a favorite destination for expansion of various Global Players. Indian Retailing is on boom, sector is growing and so the competition as well. The present competitive scenario has made the CRM an important tool for strategic success and winning the

customers. And therefore most of the retailers are investing huge amount in order to tailor CRM efforts to win customers in this competitive business world. The importance of studying perception has already been established in marketing literature. The process, by which individuals organize and interpret their sensory impressions in order to give meaning to their environment, is referred to as perception (Robbins, 2005).Perception is a way of coming to know an object or something (e.g., property or fact) about the object (Dretske, 1990).The relationship between perception and the various dimensions such as pricing (Lichtenstein et al1993) and promotional activities (Krishna et al 1991) service quality (Bitner, 1990), customer satisfaction (Zeithaml, 1988) has been studied by the researchers. There are several researches which have studied that there is difference in perception people of different age ( Goetz,2009), Hoffman & Fiedler (2002) and (Barrett and Behne, 2005). Kapoor A and Kulshrestha C , 2008 in their study related to buying behavior of urban women states that there is difference in perception of people of different gender . Ruback & Pandey (2006) in his study also points out that perception of different sex differs. Srivastava V and Singh S. (2008) discussed that perception of male and female differs towards various marketing activities. However researches related to customer perception in CRM is very scarce. Richa Vyas (2008) also states that there is very little study available on customer perception on customer relationship and cross selling. This has already been established in past researches that study of customer perception plays a very important role in success of various marketing activities Kotler (1980), Keller (2009), Schiffman and Kanuk (1997), Subramony M et al (2004). CRM initiatives are tailored and implemented to win customers. Consumer perception would play a great role in finding out whether CRM initiatives are able to achieve the desired results. Past researches do not talk much about customers perception towards the CRM initiatives of the retailers. Role of customer perception toward CRM initiatives may be crucial in success of CRM initiatives of the retailers. Since not much work is done in the context of CRM initiatives in retailing in India, this study will make an attempt to fill this gap. The research will be carried out with this literature background.

Hypothesis Hypothesis 1 - There is no difference in the perception of male and female towards the CRM initiatives of retailers. Hypothesis 2 - There is no difference in the perception of consumers of different age towards the CRM initiatives of retailers. Methodology For the purpose of this study those Indian retailers would be studied which are tailoring and implementing CRM efforts. In order to study major CRM initiatives of Indian retailers data would be collected from newspapers, magazines, articles. The officials and managers of the selected company will be interviewed for in depth knowledge about the CRM initiatives. The interview would aim at finding out the objectives of various CRM initiatives. In order to study the consumer perception towards the various CRM initiatives a structured questionnaire would be framed. The consumers of Delhi and NCR would form the population of this study. The responses of 500 customers would be taken on the questionnaire. In order to study the perception of males and females towards CRM initiatives, 250 customers would be male and rest of them would be female. In order to analyze the perception of consumers of different age the data would be collected from people of different age group viz- 15-25 years, 2535 Years, 35- 45 years and more than 45 years. Data will be subjected to statistical analysis such as descriptive statistical analysis and frequency distribution. Data would be also tested for reliability. In order to study the difference between perceptions of consumers of different gender Students t- test would be applied which would help in the testing of first hypothesis. In order to test the second hypothesis and study perception of consumers of different age group ANOVA will be used. All analysis would be carried out by SPSS 16.0. Results The results as outcome of this study would help in understanding of following aspects CRM in Indian retailing:

The research would depict in detail what are the various CRM initiatives being carried out by Indian retailers. The study will reveal major focus and objectives of CRM initiatives. The research would also be able to study the consumer perception towards the CRM initiatives.

Contribution of Research This research would give a holistic picture about the CRM initiatives being carried out in Indian retailing. The paper would discuss about various CRM initiatives their purpose for which they are being implemented. The study of consumer perception towards CRM initiatives will bring forth consumer psychology about CRM initiatives. This paper is expected to help the academicians, researchers, students and practitioners interested in the study of Customer Relationship Management.

Key References DeWulf, K., Odekerken-Schro der, G., Iacobucci, D., (2001) Investments in consumer relationships: a cross-country and cross-industry exploration. Journal of Marketing Vol 65 (4), pp 3350. 2. Dretske, F. (1990). Seeing, believing, and knowing. In D. Osherson, S.M. Kosslyn, & J. Hollerback (Eds.), Visual Cognition and Action: An Invitation to Cognitive Science (pp. 129-148). Cambridge, Massachusetts: MIT Press. 3. Bitner, M.J. (1990) Evaluating the service encounters: The effects of physical surrounding and employee reactions, Journal of Marketing, 54:2, 69-82. 4. Vyas .R. (2008) A Study of Customers Perception of Cross Selling: Using A Grounded Theory Approach IIMB Management Review, June 5. Krishna, A, Currim I S, and Shoemaker R W, (1991), Consumer Perceptions of Promotional Activity, Journal of Marketing, Vol 55, No 2, pp 4-16. 6. Zeithaml, V.A. (1988) Consumer perceptions of price, quality and value: a means-end model and synthesis of evidence, Journal of Marketing, 52:3, 2-20. 7. Subramony M, Beehr T and Johnson C.M, (2004) Employee And Customer Perceptions Of Service Quality In An Indian Firm Applied Psychology: An International Review, Vol 53 (2), 311327 8. Srivastava V and Singh .S. (2008) "A comparative Study of Mall Shopping Behavior of Men and Women In Age group of 18 - 26 years: With Special Reference To NCR" Proceeding OF National Seminar on Marketing Innovations For Reaching Consumers organized by ITS Mohan Nagar, Ghaziabad. 9. AT KEARNEY (2010) Global Retail Development Index- 2010 viewed 21 June 2010 http://www.atkearney.com/index.php/Publications/the-2009-global-retaildevelopment-index.html.
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