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Chapter 2: Literature review 2.

1 Introduction: In this chapter the research was upon the critical review of the literature based on the importance of customer relationship management to increase customer loyalty in the UK fast food sector. In addition to support the literature review the researcher will focus upon the conceptual framework of CRM and customer loyalty, customer satisfaction, the benefits of customer relationship management in fast food industry, customer loyalty programs, bridging the gap between the customer and the company and finally measuring the level of customer satisfaction in UK fast food sector. 2.2Conceptual framework: he customer relationship management and customer loyalty is considered to be too important determinants towards the achievement of customer satisfaction and to gain leading position in the fast food industries. !ccording to the previous researchers it is observed that customer satisfaction is the outcome of customer"s perception of the value received in the transactional relationship. In this stage the value e#pected from the transaction are relationship with the competing organisation is compared with the value e$uals perceived service $uality of the organisation. It is important to recognise and anticipate customer"s needs and re$uirements in order to achieve customer satisfaction. !ccording to Barskey and Nash(2 !" he fast food organisations which are rapidly understand the customer"s needs can make greater profits than those which fail to understand and satisfy the needs and re$uirements of the customers. It is important for the organisation to develop and manage a good customer relationship management with all the related parties. It is also observed by the researchers that the customer relationship management is the understanding the nature of the e#change between customer and supplier and managing it in an efficient manner. he e#change includes monetary considerations between the customer and the suppliers. %owever it also focuses upon the communication process. he challenge to also play organisations used to optimise communications between parties to ensure profitable relationship. In addition to the customer relationship management is also considered as one of the prime determinants for many fast food organisations in order to retain their e#isting customers and to manage the organisation in a cost&effective manner. Moreover it is also identified by the researchers that CRM is the concept of identifying the customer"s needs,

understanding and influence customers purchase process through ongoing communication strategies and to act, retain and satisfying the customer"s. In addition to develop customer loyalty it is important to focus upon the customers and monitoring their buying behaviour and attitude towards the products and services of the organisation. !s a result it improves the profitability and the revenue of the organisation. !ccording to #otler and #eller(2 $" it is observed that customer relationship management enables organisation to provide e#cellent real&time customer service through the effective use of individual account information. In this stage it is essential for the organisation to investigate customer's needs, build a relationship with both e#isting and potential customers which will have to satisfy the customer"s needs (%ootman& 2 $".

2.! Customer relationship mana'ement: !ccording to Lemon and (eithaml (2 1" the customer relationship management be

defined as the process of identification, establishing, maintaining and if necessary terminating their relationship with the business related parties such as the customers and their stakeholders at a profit. In this stage it is possible to satisfy the re$uirements of all the related parties. Moreover it is also stated by #umar (2 )" that the customer relationship management can be defined as the customer focused business model that entails one&to&one marketing, relationship marketing, real time marketing, customer intimacy and a variety of other terms. he efficient application of customer relationship management enables the organisation to establish relationship with the customers on an individual basis and use the information gathered to treat the customer"s in differentiated manner in accordance with their needs and necessities. !ccording to *wift(2 1" there are some significant benefits of customer relationship management. he researcher also stated that the benefits of customer relationship management can be found in the following areas( )evelop customer range in a cost&effective way( follow&up and marketing. Retaining e#isting customers( here is no need to recruit many customers to preserve a steady volume of business as the number of long&term customers will enhance to increase and conse$uently the need of recruiting many customers will decrease. he Company can operate in a cost&

efficient manner while recruiting customers since the saving to be made on mailing, contract,

Reduction in cost of service( In this stage the cost regarding selling a reduced owing to the e#isting customers are usually more responsive. Moreover with better knowledge of channels and distributor the relations become more effective, as well as the cost of marketing campaigns is reduced. Customer profitability( he customer profitability will get higher since the customer wallet share increases, there are increases in our selling, cross selling and former *ts and more diverse comes with higher customer satisfaction among customers. Customer loyalty and retention( he customer retention increases since customers are he

associated with the company and stay longer, by more and buy more fre$uently. result of the customer loyalty increases as well. 2.) Customer loyalty pro'rams:

customers also more often takes initiatives, which increases the bonding relationship, and as a

!t present in competitive business environment the customers has myriad choices and few switching costs more, loyalty could from the organisation point of view decrease cost and increase revenue. !ccording to +liver(1,,,+ customer loyalty can be defined as a deeply held commitment to re buy or patronise a profound products or services consistently steadily in the future thereby causing repeated the same brand on same brand set parties, despite situational influences and marketing efforts having the potential to cause switching behaviour. In this stage it is observed that the customer loyalty and customer retention are related with each other that leads towards the customer loyalty. It brand is a promise and meeting that e#pectation creates satisfaction. !ccording to Curasi and #lennedy (2 2" the loyal customers are of five types. It includes the ,risoner, the detached lowliest, the ,rotestant loyalist, the satisfied lowliest and finally the !postles. In this stage it is observed that an ideal customer is the !postle full acts as a brand ambassador on behalf of of the products and services and go out of his way to convert other customers. Customer loyalty is enhanced through increasing customer satisfaction and by improving brand e$uity, live the and trust, which affects customers purchase process based on the customer relationship management performance (-an' et al& 2 )". In addition to Ball et al.&(2 $" stated that customisation of delivery or the functional e$uity of products and services as well as the service personalisation also increases the customer loyalty.

2.. Customer satisfaction: Customer satisfaction is considered to be the essential determining in the modern business world. It is not possible for the organisation to achieve overall ob-ective without satisfying their customers. Customer relationship management and customer loyalty enhances the customer satisfaction level of the organisation. !ccording to /ones and *asser (2 11" it is observed that most of the organisations are ensuring with diligence and strategic marketing in order to achieve the organisational goals. he e#perience of the product and services gain by customers through the e#plosive response can be identified as the measurement of customer satisfaction. It is also observed by the researchers that the emotional activities of customer which is a significant impact upon the buying behaviour in relation with the product and services can be defined as the customer service. It results in the perception and beliefs of the customers towards the $uality of the re$uired product and services. herefore the $uality of product and services along with the efficient use of customer relationship management are considered to be the key determinant in order to influence the level of customer satisfaction in the organisation that give rise to customer loyalty.