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DETERMINING THE FACTORS AFFECTING

CUSTOMER RELATIONSHIP MANAGEMENT:


THE APPLIED STUDY FOR STONE AGE
UMAIR ABID

(11123030)

MBA (3 YEARS)
SAAD JAMIL IRFANI

(10108034)

BBA

Student GIFT University Gujranwala


Department of management sciences
Supervised by: Muhammad Abid Awan
Lecturer GIFT University Gujranwala
(Research Proposal of Term Paper)

Table of Content
1

Abstract.................................................................................................................. 6

Introduction.......................................................................................................... 7

2.1

Rational of Study................................................................................................ 7

2.2

Significance of Study........................................................................................... 8

2.3

Research Gap..................................................................................................... 8

2.4

Problem Statement............................................................................................... 9

2.5

Research Question............................................................................................... 9

2.6

Research Objectives............................................................................................. 9

2.7

Delimitation of Study........................................................................................... 9

Literature Review............................................................................................... 10
3.1

Information Technology...................................................................................... 11

3.2

Management Commitment................................................................................... 12

3.3

Human Resource Knowledge.......................................................................12

3.4

Organizational Culture................................................................................. 13

Conceptual Framework............................................................................................. 13
4.1

Dependent variable............................................................................................ 13

4.2

Independent variables......................................................................................... 13

4.3

Framework................................................................................................... 14

4.4

Hypothesis................................................................................................... 15

Methodology.......................................................................................................... 15
5.1

Sample Selection............................................................................................... 15

5.2

Population frame............................................................................................... 16

5.3

Unit of analysis................................................................................................. 16

5.4

Type of study................................................................................................... 16

5.5

Time horizon.................................................................................................... 16

5.6

Instrument development/selection..........................................................................16

5.7

Proposed data collection procedure........................................................................17

5.8

Proposed data analysis techniques..........................................................................17

5.9

Proposed data analysis software............................................................................ 17

Data Analysis......................................................................................................... 17
6.1

Data Cleaning & Screening..........................................................................18

6.1.1

Missing Value......................................................................................... 18

6.1.2

Outliers.................................................................................................. 18

6.1.3

Normality............................................................................................... 18

6.2

Demographic Analysis.................................................................................19

6.3

Reliability..................................................................................................... 20

6.4

Factor Analysis............................................................................................. 21

6.5

Descriptive...................................................................................................... 22

6.6

Correlation...................................................................................................... 24

6.7

Regression....................................................................................................... 25

Discussion.......................................................................................................... 27

Implication......................................................................................................... 28

Conclusion.......................................................................................................... 28

10

Appendices..................................................................................................... 29

11

References...................................................................................................... 31

List of Tables
Demographic ..19
Reliability 20
Exploratory Factor Analysis ...21
Descriptive Statistics 22
Correlation 24
Regression .25

List of Figures
Theoretical
Framework.14

List of Appendices
Questionnaire.29

List of Abbreviations
CRM

Customer Relationship Management

IT

Information Technology

MC

Management Commitment

HRK

Human Resource Knowledge

OC

Organizational Culture

SPSS

Statistical Package for the Social Sciences

EFA

Exploratory Factor Analysis

EDA

Exploratory Data Analysis

CFA

Confirmatory Factor Analysis

KMO

Kaiser-Meyer-Olkin

SD

Standard Deviation

Sample size

df

Degree of Freedom

SE

Standard Error

DETERMINING THE FACTORS AFFECTING


CUSTOMER RELATIONSHIP MANAGEMENT:
THE APPLIED STUDY FOR STONE AGE
Umair Abid, Saad Jamil Irfani
Gift University, Gujranwala, Pakistan

1 Abstract
Establishing strong relationships with customers is the most important thing for any kind of
business. Basically organizations have understood that customers are their most important
assets and view customer relations (CR) for profitable transactions and requiring management.
CRM is a business strategy through which organizations retain and attracts the customers. The
proper implementation of this strategy will help the organizations to retain and attracts the
customers at lower cost. This research paper, tries to identify the success factors which affects
CRM system. The main purpose of this study is to determine and identify the success factors
affecting Customer Relationship Management system. To achieve these goals the research model,
four hypotheses were formulated. To collect the data for this research questionnaire are used and
also the descriptive method was used to perform the present study In hypotheses test section,
three hypotheses Information Technology, Human Resource Knowledge and Organizational
Culture were accepted and one hypothesis (Management Commitment) was rejected.
Keywords: CRM (Customer Relationship Management), Organizational Culture, Management
Commitment, Human Resource Knowledge, Information Technology.

2 Introduction
2.1 Rational of Study
In this modern era the competition is becoming large between organizations or companies day by
day. Organizations are always in search of new solutions which can help them in maintaining their
position and increasing the efficiency of their businesses. Organizations or companies around the
world started re-engineering and restructuring their business processes to cut the costs and become
more competitive and efficient.
In this regard Customer Relationship Management (CRM) has risen to the agenda of many
organizational strategies. Customer Relationship Management (CRM) is a business strategy that
attracts, elevates and retains customers. It defines all aspects of interaction and relations that a
company has with its customers; however the company is sales or service oriented. Customer
Relationship Management (CRM) is basically the most important thought of a business strategy that
helps businesses and organizations to understand the customer and also retain the customers by
winning new clients and contracts, through better customer experience, increase profitably, attract
new customer and also decrease the customer management costs.
In order to attract more customer satisfaction, first we have to identify their expectations and
requirements and then services are developed according to their requirements and expectations.
Information technology has significantly changed all business processes. Customer Relationship
Management is the most important issue for organizations because it is use to support effective
marketing, sales and services processes. With the advancement in technology, available instruments
for establishing customer relation (CR) and customer relationship management (CRM) have become
prevailing in organizations. Now customers have higher expectations than the past because they

want to purchase and to be served from different communication channels like telephone, internet
and e-mails. Basically now organizations cannot content themselves on the past strategies anymore
and also they have to adapt themselves with new techniques, market advancement and ever changing
customer requirements. The research will examine the main features or components affecting a CRM
systems success because in Stone Age Company it is believed that Customer Relationship
Management has been built on the basis of customer-organization value exchange and this mainly
emphasizes the value created in this respect. Therefore Stone Age Companys efforts for the
development of the long term Customer Relationship Management (CRM) is based on mutual value
creation as an important management goal. To achieve this, the Stone Age Company has to try to
identify the strategical factors affecting its CRM systems success and develop profitable
relationships based on optimization of customers received and perceived value through it, which
would explain the reason for which the present study is being conducted.

2.2

Significance of Study

Customer Relationship Management is a tool for an organization trough which an organization


interact with it customer from the starting when the customer purchases product or services till at the
delivery point. The main purpose of CRM is to organize the business processes that deals with
customers and involves the spreading, interpretation and collection of customer data in order to
identify the preferences of customer about the product or services which they purchased.

2.3 Research Gap


From the findings we can state that although Stone Age has implemented CRM system but the
company is facing some problems in findings the factors which have an effect in the success of their
CRM systems.

2.4 Problem Statement


The problem of our research article is to check and analyze this phenomenon to Stone Age
Company, as by personal interview they have discussed about that they are practicing CRM
strategies but they want to know what the success factors are that affects their CRM systems. So for
this purpose we have conducted our research to find out what are the success factors that are
affecting CRM systems of Stone Age Company.

2.5 Research Question

What are the success factors that affect in CRM (customer relationship management)
systems?

2.6 Research Objectives


The main objectives of our study are:

To understand the strategical factors that affecting in Customer Relationship Management

systems.
To estimate whether those factors are important in the success of CRM system.

2.7 Delimitation of Study


There are many factors that limit this study as while checking CRM system of Stone Age
Company. Also we will narrow down our study to check the CRM strategical factors that are
affecting in the success with only mentioned variables i.e., Information Technology,
Management Commitment, Human Resource Knowledge and Organizational Culture. On

the other hand there are many other variables which express customer relationship
management.

3 Literature Review
The basic fundamental of CRM is the philosophy of customers and marketing which in turn has
been derived from the marketing to create relationships with every person related to the
organization (Kotler, 2003). In marketing Customer Relationship Management is defined as a
communicating tool between organization and customer for the purpose of maintaining and
attracting the customers who will become the loyal and the true customers of an organization.
There are many studies that have been made to identify CRMs components. In this regard Buttle
(2004) has named four factors that having impact on Customer Relationship Management which
includes the culture of an organization, leadership and people means the human resource and also
information technology.
According to Chen the main and main key factors of Customer Relationship Management are
technology, people and processes. As a matter of fact, the four items suggested by Combe
(2004), to propel CRM are composed of leadership, culture, technology and people. Customer
Relationship Management mainly focuses on enabling organizations to provide better services to
customers through creating integrated, reliable and automatic processes which tries to cover this
great phenomenon in different ways such as processing, integration and gathering information.
According to this definition this is said that the main agenda of Customer Relationship
Management (CRM) is to increase the satisfaction between customer and organization, as well as
enhancing the benefits and elevating the efficiency in logistics, marketing, sales and services.

Basically customers are seeking benefits and expect value added from organizations more than
products.
For many organizations Customer Relationship Management became popular means it is the
most important tool which overcomes the issues of expanding markets, increased competition
and increasing customer expectations (Richard & Jones, 2008). The main objective of Customer
Relationship Management is to create organization customer oriented that increases the customer
value and long-term organizational profitability through durable relationships with customers
and realization of mutual beneficial. Over the last decade many popular brands has practices this
strategy in different ways to capture potential customers in market. A good Customer
Relationship Management (CRM) strategy is important for the brand name which helps in the
extension of a brand, while a very good CRM strategy also enhances the goodwill and also the
brand name. This strategy is mainly applied for the greater market share and further to attract
more and more customers in order to be successful & survive the in competitive market.

3.1 Information Technology


Communication and Information Technology are used as a tool in an organization to
communicate inside and outside the organization. Technology is the most important tool for an
organization to gain success in this modern era. Customer Relationship Management strategy
needs a center to store all the customer information and news. This center must have efficient
information technology that can be adjustable according to the change in environment. It most
probably contains an orderly Customer Relationship Management (CRM) strategy to
communicate with customers, retaining customers and direct dispatching means quickly sends
the information to customers.

H1: Information technology has a significant relation with CRM.

3.2 Management Commitment


Management commitment is also an important element of business strategy. Management
commitment is a style of leadership where both the manager and the subordinate jointly
participate in the establishment of work objectives. It also supports in implementation of
Customer Relationship Management (CRM) through generating an organizational environment
by involving in activities that support their commitment to customer relationship management
implementation.
H2: Management Commitment has a significant relation with CRM.

3.3 Human Resource Knowledge


Knowing your customers is the most important thing for an organization. Employees and
customer are key factors for successful customer relationship management. In this regard how
the relationship is handled is the most important thing of customer relationship management
strategy. For the success of CRM strategy knowing your customer is the most important thing.
However, only collecting customer data is not enough for an organization. By investigating
customer the organization can realize the value from their Customer Relationship Management
(CRM) strategy implementation.
The main purpose of customer relationship management (CRM) is to convert the customer
information into customized products and services that meet the preferences of customers in
order to gain customer loyalty.
H3: Human Resource Knowledge has a significant relation with CRM.

3.4 Organizational Culture


Organizational culture has been describes as the shared values, principles, traditions and the
ways of doing things that influence the way organizational members act. The success of
customer relationship management (CRM) strategy is also based on the culture of an
organization. Organizational culture has accumulated from beliefs, expectations and common
values of all members. As far as customer relationship management (CRM) administration is
concerned the organizational culture is the most difficult factors to accomplish for this the
administrators have to change approach and make the personnel accept new concepts in CRM.
H4: Organizational culture has a significant relation with CRM.

4 Conceptual Framework
4.1 Dependent variable

Customer Relationship Management (CRM)

4.2 Independent variables

Information Technology (IT)


Management Commitment (MC)
Human Resource Knowledge (HRK)
Organizational Culture (OC)

4.3 Framework

Information
Technology

Management
Commitment

Human Resource
Knowledge

Organizational
Culture

+ive

+ive

+ive

+ive

Customer
Relationship
Management

4.4 Hypothesis
H1: Information Technology has significant relationship with Customer Relationship
Management (CRM)
H2: Management Commitment has significant relationship with Customer Relationship
Management (CRM)
H3: Human Resource Knowledge has significant relationship with Customer Relationship
Management (CRM)
H4: Organizational Culture has significant relationship with Customer Relationship
Management (CRM)

5 Methodology
The purpose of this section is to describe the methodology which had been carried out to
complete the work. The methodology plays a dominant role in any kind of research work.
The effectiveness of any research work depends upon the correctness and effectiveness of
the research methodology.

5.1 Sample Selection


We have five variables in which four variables are independent like, Information Technology,
Management Commitment, Human Resource Knowledge and Organizational Culture and
dependent variable is Customer Relationship Management (CRM). We will assign five (5)
question statements for each single variable and we have five (5) variables so our total questions
will be (5x5=25). We will follow 1:4 methods which mean we will take four respondents against
one question, so (4x25=100) consequently sample size for our research is 100 which we will use

for data collection Non probability convenient sampling technique is more appropriate for our
research.

5.2 Population frame


The respondents in this research are the employees and workers of Stone Age Company. Since
this research was conducted in the city of Gujranwala, we choose the Meer Shopping Centre
Gujranwala and we had visited also Crescent Bahuman Ltd. where all products of Stone Age are
produced or manufactured.

5.3 Unit of analysis


Unit analysis for our study is individuals. It includes all individuals who are the employees and
who work for Stone Age Company.

5.4 Type of study


Our study is related to causal study because we will check the effects of independent variables on
dependent variable.

5.5 Time horizon


Our study is one shot cross sectional because we have limited time of two to conduct this study.

5.6 Instrument development/selection


The instrument used for data collection will be questionnaire. In this regard we will refine
questionnaire as per local environment.

5.7 Proposed data collection procedure


We will use questionnaire to collect data from our respondents. This questionnaire will be
adapted or adopted from published study. The questionnaire with Lickert-type will be used to
check sensitivity of each variable and to collect the data.

5.8 Proposed data analysis techniques


In this portion different statistical tools are used to further assess the data that has been collected
from the respondents. With respect to our study type we will regression on this model to check
the relationship of dependant variable with the independent. The regression can be used for
prediction (including forecasting of the time-series data) inference, hypothesis testing and
modeling of casual relationship.

5.9 Proposed data analysis software


After collecting data from the respondents the next step would be done through analysis software
SPSS. Te whole process of this software would be applied after entering data into SPSS.

6 Data Analysis
We have gathered data through questionnaire. Our population frame was employees and the
customers of Stone Age Company. We have collected data and final respondents after elimination
were 50. Now we are in a position to run different analysis on the data collected. First of all, data
is needed to be screened and cleaned.

6.1 Data Cleaning & Screening

6.1.1 Missing Value

We have checked the data to see any missing value. There was no missing value found in the
data. It is necessary to detect the missing values because it can affect the results.
6.1.2 Outliers

After checking the missing values, we had checked the data for outliers. Outliers affect the
normality of the data, which in turn can harm the results of the inferential statistics. We have
detected the outliers from the box-plots. After detecting outliers, we deleted the extreme outliers
and treated it as missing value. Then, we replaced the missing value through SPSS 19.0 by using
its Transform function and replaced the missing values with the mean of the series.
6.1.3 Normality

Third step was to check the normality of the data. Most of the statistics tools require the data to
be normal. So it is necessary to check the normality of the data.
Normality means that the data should be normally distributed. In other words, histogram drawn
from the data should be symmetrical. Further, shape of histogram should not be too peaked or
flat.
There are various ways to check the normality of the data. Most common tools are skewness and
kurtosis. In order to be normal, the values of skewness and kurtosis should be within the range of
-1 to +1. Skewness checks that whether the histogram is symmetrical. If the value is negative it
means the data is skewed towards left and vice versa.

Kurtosis checks the peakness and flatness of the curve drawn on histogram. If value is positive, it
shows peakness in the data. Negative value represents the flatness of the curve.
Values of skewness and kurtosis for all the variables are within +/- 1. However, there is slight
deviation for few items. It is acceptable.

6.2 Demographic Analysis


Table 1
Demographic

Name
Gender
Male
Female
Age
21 to 25
26 to 30

Percentage (%)
76
24
25
58

Name
31 to 35
Income
11,000 to 25,000
26,000 to 35,000
36,000 to 45,000
45,000 onwards

Percentage (%)
17
47
41
11
1

Basically our respondents are the employees of Stone Age Company. The above table shows that
76% are males and 24% are females who filled the questionnaires that we provide and you can
see that in which age group employees are laying and also their income level is given in the
above table in percentages.

6.3 Reliability
It is necessary to check the instrument for stability and consistency. In other words instrument
should be reliable. There are various ways to check the reliability of the instrument. However, we

have calculated the reliability on the basis of inter-item consistency. From the SPSS we obtained
following results:
Table 2
Reliability
Serial no.
1
2

Variables
Information Technology
Management

Cronbachs Alpha
.731
.789

No. of Items
6
5

Commitment
Human Resource

.874

4
5

Knowledge
Organizational Culture
Customer Relationship

.890
.857

7
5

Management

According to Nulleiy (1967) value of Cronbachs alpha should be greater than 0.6 for an
instrument to be valid. In our case the value of Cronbachs alpha for all the variables (calculated
individually) is greater than 0.6. It means that there is high stability and consistency of items
measuring any variable.

6.4 Factor Analysis


Factor analysis is conducted to see if all the items measuring any variable relate to the same
concept/variable. There are two ways to compute factor analysis of the data. One is through
correlation and second is through the co-variance among all the items of single variable. It also
shows that the items are explaining the same concept. We shall only use exploratory factor
analysis (EFA). Confirmatory factor analysis (CFA) is out of scope at this level. Following
results are obtained from the SPSS 19.0:

Table 3
Exploratory Factor Analysis
S. No
1
2
3
4
5
6
7
Variance

IT
.518
.762
.617
.661
.651
.695
42.88%

MC
.687
.657
.725
.815
.815
55.14%

HRK
.623
.763
.819
.751
.830
.773
.711
57.10%

OC
.815
.770
.816
.747
.731
.761
.800
60.47%

CRM
.786
.773
.839
.808
.780
63.59%

Explained
KMO
Bartletts

.750
.000

.770
.000

.871
.000

.868
.000

.812
.000

Value of KMO should be greater than 0.6, variance explained should be greater than 40%,
component loading score for each item should be greater than 0.4 and Bartletts test should be
significant. In our case, total variance explained for information technology is 42.88%. It means
that approximately 43% variation is explained by the items measuring information technology.
Similarly, variance explained for management commitment, human resource knowledge,
organizational culture and customer relationship management is approximately 55%, 57%, 60%
and 64%.
Loading scores tell that how much a particular item explains the main variable/concept
out of 1. For example, the first item is explaining 0.518 of information technology out of 1.
Similarly, we can interpret other loading scores. Its value should be greater than 0.4. Our all
items have loading scores greater than 0.4. Some items had loading score less than 0.4, so we
deleted these items.

Value of KMO should also be greater than 0.6 in order to include a variable in the
research. If the value falls below this level, the variable is excluded from the research. In our
case, all the values are greater than 0.6. Lastly, results of Bartletts test should also be significant.
Otherwise, variables having insignificant value of Bartletts test are also excluded. Results of
Bartletts test showed that results are significant and all variables are included for the purpose of
the research.

6.5 Descriptive
After data cleaning and screening, we are in a position to get our variables from the items. For
this purpose, we had transformed the items into representing variable. SPSS 19.0 provides a
function to transform and compute variable.
After computing the variables, we had applied descriptive statistics tools on the computed
variables and obtained following results:
Table 4
Descriptive Statistics
Variable
IT
MC
HRK
OC
CRM

N
100
100
100
100
100

Minimum

Maximu

Mean

S.D

Skewness

Kuartasis

2.50
2.60
2.43
2.57
2.40

m
4.33
4.60
4.29
4.71
5.00

3.4700
3.5180
3.5171
3.6914
3.6320

.39239
.45137
.52313
.53287
.59745

-.661
.262
-.410
-.227
.025

.725
-.274
-.577
-.410
-.373

Our sample size was 100. Mean represents the average level. It is calculated by summing
up all values and dividing it by total respondents. Standard deviation tells about the spread of the
data. It is the square root of average of squared deviations from mean.

Average level of information technology (IT) is 3.4700 with a standard deviation of


0.39239. Similarly, management commitment (MC), human resource knowledge (HRK),
organizational culture (OC) and customer relationship management (CRM) level at 3.5180,
3.5171, 3.6914 and 3.6320 with the standard deviation of 0.45937, 0.52313, 0.532687 and
0.59745 respectively.

6.6 Correlation
Correlation tells us about the relationship between two variables. It tells us about the intensity
and direction of the relationship between the variables. Intensity is assessed through the
magnitude and direction is judged by the sign.
Table 5
Correlation

IT
MC
HRK
OC
CRM
Note: * Correlation is significant at p-value < 0.05
** Correlation is significant at p-value < 0.01

Table 4 represents the correlation between the variables. The correlation between
Information Technology and Customer Relationship Management is weakly positive, r (99)
=0.349, p < 0.01, which is considered as large effect size according to Cohen (1988). It means
that if information technology increases (IT), customer relationship management (CRM) also
increases. The result of this relationship will be applicable on the population 99% times.

Secondly, the relationship between Management Commitment (MC) and Customer


Relationship (CRM) Management is insignificant. According to this we cannot take any decision
on the basis of the relationship between Management Commitment and Customer Relationship
Management. The result cannot be applicable on the population because of its insignificance.
Thirdly, correlation represents that there is weak positive relationship between the Human
Resource Knowledge (HRK) and Customer Relationship Management (CRM), r (99) = 0.443, p
> 0.01. This means that if the knowledge of the employees of Stone Age Company increases the
customer relationship management also increases. Similarly all the other computed variables
shows positive relationship among them as computed above and all are significant at 0.01.

6.7 Regression
Regression analysis is conducted to predict the dependent variable through independent
variable(s). It also tells how much the dependent variable will change by changing one unit of
independent variable(s).
We have tried to predict the Customer Relationship Management by using Information
Technology, Management Commitment, Human Resource Knowledge and Organizational
Culture as predictors. Before applying any analysis main assumption of multi-co linearity has
been checked and it showed mild relation between the predictors. In order to develop regression
equation, we had run multiple regression analysis on SPSS 19.0 and obtained following results:
Table 6
Multiple Regression analysis summaries for information technology, management commitment,
human resource knowledge and organizational culture predicting customer relationship
management.

Variables

S.E

t-value

Sig

Hypothesis

Constant

.096

.670

.143

.887

No

IT

.366

.137

2.675

.009

Hypothesis
Supported

MC

.073

.114

.645

.521

Not Supported

HRK

.321

.113

2.851

.005

Supported

OC

.238

.111

2.133

.036

Supported

Note: R2 = .301; Adjusted R2 = .271; F (4, 95) = 10.204, p < .001


Table 6 shows the results from a multiple linear regression. Overall model is significant,
F (4, 95) = 10.204, p < 0.001. So, we can apply these results to the population. We can predict
the level of customer relationship management using information technology, management
commitment, human resource knowledge and organizational culture. The equation developed for
predicting employee poaching is as follows:
CRM = .096 +.366 *IT + .073 *MC+.321*HRK + .238*OC
From the above equation, it can be inference that if the level of Information Technology
will increase by 1 unit, Customer Relationship Management will increase by .366 units. In other
words by increasing information technology, customer relationship management will be
increased. Secondly, by increasing the management commitment by 1 unit, the level of customer
relationship management will be increased by .073. However, the result of management
commitment is insignificant. But we had included it because the overall model is significant, F
(4, 95) = 10.204, p < 0.001. Further, by excluding this variable, results will be changed. So, it is
not reasonable to exclude this variable.

7 Discussion
As mentioned earlier that CRM system is very important and its practical implication involves
complex structure to be followed. This study suggests that information technology has a
positively impact on customer relationship management. It means if information technology is
acceptable among the employees then the customer relationship management system becomes
easy for the employees of the organization.
On the other hand Management Commitment has negative impact on Customer Relationship
Management system which makes us to conclude that commitment of the management is very
important factor for the Customer Relationship Management system. Management should
therefore maintain their commitment with organization in such a way that they can trust their
organization whole heartedly. This study shows that Management Commitment of Stone Age
Company employees have negative impact on Customer Relationship Management system. It
shows that personals who fills the questionnaire doesn`t have trust on Stone Age Company up to
extent that they can accept the CRM system of Stone Age . This may happen because every
individual has its own preference about the CRM system.
Human Resource Knowledge has positive impact on Customer Relationship Management
system. This shows that employees of Stone Age Company has better knowledge about the
human resource (HR) and hence can accept the CRM system.
While talking about Organizational culture of Stone Age Company it also have positive affect
and there are more chances that they will accept the CRM system of Stone Age Company. It is
because the organizational culture of Stone Age Company is more friendly and not the autocratic
culture.

8 Implication
Our study has many implications for the companies and organizations that are using CRM
systems. First of all this study will help Stone Age Company to know about the success factors of
their CRM system. This study would suggest Stone Age Company that they have to build good
management commitment in their organization to get more success in CRM system.
Whereas they can know about the success factors which are affecting CRM system but there are
also many other factors which can affect in the success of CRM system implementation, which
may be neglected in this study.

9 Conclusion
This study provides an insight how the Information Technology, Management Commitment,
Human Resource Knowledge and Organizational Culture affects the Customer Relationship
Management (CRM) system of Stone Age Company. Data had been gathered from different
individuals who are basically the employees of Stone Age Company, through questionnaires.
After careful analysis we reached at a conclusion that information technology, human resource
knowledge and organizational culture positively affect in the success of customer relationship
management system of Stone Age Company. The results are consistent with previous studies.
However, relationships between management commitment and customer relationship
management system are not significant.

10 Appendices
Questionnaire
We are students of MBA and BBA in GIFT University Gujranwala and doing research on
DETERMINING FACTORS AFFECTING IN IMPLICATION CUSTOMER RELATIONSHIP
MANAGEMENT: THE APPLIED STUDY FOR STONE AGE for which the questionnaire is being
distributed to collect the empirical data. Therefore, you are kindly requested to fill this questionnaire. The
information provided will be kept confidential and will be used for academic purpose only. It will take 1520 min to complete the questionnaire. Thank you in anticipation
(Strongly Disagree=1, Strongly Agree=5)
Information Technology: The branch of engineering that deals with the use of computers and

telecommunications to retrieve and store and transmit information.


1

2
3
4

SD

Neutral

SA

My organization pays much attention to our


customers needs using hi-tech facilities to
Improve customer satisfaction.
We provide accurate information to our
customers using a blend of IT.
In my organization, we have a comprehensive
database of our customers information.
My organization disseminates information to
our customers through e-mail to reduce
customer waiting time.
We communicate with our customers with
telephones to meet their urgent requests and
needs.
Information technology has enhanced service
delivery in my organization.

Management Commitment: Direct participation by the highest level executives in a specific and

critically important aspect or program of an organization


7

In my firm top level management takes interest to


know the preferences of employees
8 My firm management takes interest in every
activity
9 My firm management provides training programs
when needed
1 Management of our firm takes care of health all the
0 employees
11 Management of our company took sessions with the
customers to know about their preferences

SD

Neutral

SA

Human Resource knowledge: The process of hiring and developing employees so that they become more
valuable to the organization.
SD
D
Neutral
A
SA
1 A large number of people are involved in HR
1
2
3
4
5
2 planning in firm.
1
1
2
3
4
5
3 Firm adopts selectivity in hiring.
1 Firm has incentive practices which really
4 recognize people who contribute the most to
1
2
3
4
5

firm.
1
5
1
6
1
7
1
8

Firm uses performance based appraisal.


Extensive training programs are provided for
employees in firm.

Firm forms focused groups to solve problems.


Employees are often asked by their supervisors
to participate in decisions.

Organizational Culture: is the collective behavior of humans who are part of an organization
1
9
2
0
2
1
2
2
2
3
2
4
2
5

My organization's structure is hierarchal in


nature.
My organization has a current mission plan for
everyone to view
Our organization is good at fulfilling their
mission
My organization's culture follows the
company's mission
My organization's culture is developed by top
management
I feel that my organization values my opinion
My organization shares information with others
who should know

SD

Neutral

SA

SA

CRM: It is a process of communicating between customer and organization.


SD
D
Neutral
2 In our firm, creating a long-term relation with
1
2
3
6 customer is one of CRM goals
2 Our firm has comprehensive databases for
7 customer information, and this data is base of
1
2
3
2
8

CRM
In our firm, resources are designated in way
that benefits of main customers are provided

2
9
3
0

In our firm, customer-orientation has become a


culture
Our firm has a clear and vivid guideline in the
field of CRM

Gender:
o
o

Male
Female

Age (Years):
o
o
o
o
o

under 20
21 to 25
26 to 30
30 to 35
40 to onward

Income Level (Rs):


o
o
o
o
o

Under 10000
11000 to 25000
26000 to 35000
36000 to 45000
46000 to onward

11 References
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Elsevier.
C. Bull, (2003). Strategic Issues in Customer Relationship Management (CRM) Implementation.
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Combe, C. (2004). Assessing Customer Relationship Management Strategies for Creating
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4-14.
Ferrel OC, Hartline DM (2005). Marketing Strategy, 3ed, Ohio: Thomson.
Gebert, H., Geib, M., Kolbe, L. M. and Brenner, W. (2003) Knowledge-Enabled Customer
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Gibbert, M., Leibold, M. and Probst, G. (2002) Five Styles of Customer Knowledge
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Greenberg, P. (2001), CRM at the Speed of Light: Capturing and Keeping Customers in Internet
Real Time, Osborne/McGraw-Hill, Berkeley, California.
Gronroos, C. (2000). Service Management And Marketing: A Customer Relationship
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Kotler, P. (2003). Marketing Management. 7nd ed. Englewood Cliffs, NJ: Prentice-Hall.
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