6

Available online at www.ganpatuniversity.ac.
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University Journal of Research
ISSN (Online) 0000–0000, ISSN (Print) 0000–0000
Impact of Customer Relationship Management on Customer Loyalty

and Customer Retention with reference to Automobile Sector
Dr. Garima Malik
Assistant .Professor, Amity Buisness School, Amity Univerity, Noida-201301, India
Abstract
Customer Relationship management concept and its impact on customer loyalty is gaining more
and more attention in present business world. Companies are focusing on retaining their loyal
customers rather than gaining new. One such strategic focus is customer loyalty, which should be
viewed as a “must” for automakers hoping to compete. Unlike other consumer products with more
frequent replacement cycles, auto buyers often don’t return to market for three or four years or
even longer. Some empirical evidence suggest that it costs significantly less to retain an existing
customer than it does to acquire a new one, making loyalty especially critical in times when
corporate marketing budgets are scrutinized. The main aim of this paper to evaluate the impact of
CRM benefits on customers’ loyalty and retention for the benefits of enterprise and customers
itself. The research was conducted though survey method and data was collected from vehicles
owners. The results revealed the significant factors that lead to the customer loyalty for automobile
was trust associated with on time service delivery, Promptness in handling repair work,
friendliness helpfulness, arranging replacements and fulfill its obligation to customers.
Keywords: Customer loyalty; customers’ retention; automobile sector; customer preference;
customer satisfaction.
1. Indian Automobile Industry
As per India Brand Equity Foundation (IBEF) India represents one of the world’s largest car
markets (Easy availability of finance and rising income levels are encouraging the middle class
population to choose from the vast range of passenger vehicles. The Indian auto industry has been
70
Malik G. /University Journal of Research Vol. 01, Issue 01 & 02(2015-16) ISSN: 0000–0000
recording tremendous growth over the years and has emerged as a major contributor to India’s
gross domestic product (GDP). The industry currently accounts for almost 7 per cent of the
country’s GDP and employs about 19 million people both directly and indirectly (Report of
Department of Industrial Policy and Promotion). Indian Automotive Industry growth decades
started in the 1970s. Between year 1970 and 1984 cars were considered as a luxury product;
manufacturing was licensed, expansion was restricted; there were Quantitative Restrictions (QR)
on import and tariff structure designed to restrict the market, but initially in year 2000, several
landmark policy changes like QR and 100% FDI through automotive route were introduced.
(Automotive Mission Plan, 2006-2016). In 2003, Core group on Automotive R & D (C.A.R) was
set up to identify priority areas for automotive R & D in India. Indian Auto Industry is 2nd in Two
Wheelers, 3rd in Small Cars and 5th in Commercial Vehicles among the top 10 in the World.
In addition, with Government’s backing and a special focus on exports of small cars, multi-utility
vehicles (MUVs), two and three wheelers and auto components, the automotive sector’s
contribution to the GDP is expected to double reaching a turnover worth US$ 145 billion in 2016,
(Automotive Mission Plan (AMP) 2006–2016). The Production of the automobiles has been
increased at a compound growth rate of 13.2 per cent. In the recent years strong demand is due to
rising incomes, increasing growth in the middle class, and the younger population will make India
one of the leading producers of automobiles. The major factors are skilled manpower and
technological advancement.
Tata Nano, which has been considered as world’s cheapest car and had been able to focus towards
the low-income market. Hero Honda and Mahindra and Mahindra have jointly planned to develop
a technology for two-wheelers which will run on natural gas.
With rising income level and bombardment of middle class and youth, India is a major market for
medium and heavy duty trucks and buses apart from the skilled labor and technology .Ford Motors
is planning for global production unit of compact cars in India, once its plant in Gujarat sets up.
Hyundai considers India as the most important market. In the future Indian automobile sector is
poised for steady growth.
© University Journal of Research, 1(1 & 2), 2015-16 published by Ganpat University. All rights reserved.
Malik G. /University Journal of Research Vol. 01, Issue 01 & 02 (2015-16) ISSN: 0000–0000
1.1 Key Statistics

The Indian automobile industry has been registered with an annual growth rate of 8.27 percent
when it was compared to August’12 as it produced 1.56 million vehicles which include passenger
vehicles, the commercial vehicles and three wheelers.
There was an inflow of USD 8,922 million in automobile sector from foreign direct investment in
between April 2000 to August 2013 that is an increasing inflow of 4.51 %, as per the data
published there has been rise in overall exports of automobiles during the period of April-
September 2013. There recorded 3.33 million production of passenger vehicle in 2012-14 and has
been expected to grow at a rate of 14 per cent annually. (Automotive Component Manufacturers'
Association of India, 2014-15) The auto industry produced a total 1.81 million vehicles, including
passenger vehicles, commercial vehicles, three wheelers and two wheelers in February 2014 as
against 1.73 million in February 2013, registering a growth of 4.41 per cent over the same month
last year. The increase continues to be on account of growth in two wheelers production. (Report
of FDI, 2015) Moreover, the overall domestic sales during April–February 2014 grew marginally
by 2.68 per cent over the same period last year. Refer to table 1
The passenger vehicles production in India is expected to reach 10 million units by 2020–21. The
industry is estimated to grow at a compound annual growth rate (CAGR) of 13 per cent during
2012–2021. In addition, the industry is projected to touch US$ 30 billion by 2020–21, according to
data from Automotive Component Manufacturers’ Association (ACMA). The cumulative foreign
direct investment (FDI) inflows into the Indian automobile industry during the period April 2000
to January 2014 was recorded at US$ 9,344 million, an increase of 4 per cent to the total FDI
inflows in terms of US$. (Report of Department of Industrial Policy and Promotion (DIPP) 2014-
15)
Table 1. Top Automobile Companies in India (Figures in Crores)

2011 ET 500 Rank Company Turnover PAT MCRP CR Assets
7 Tata Motors Ltd 123222.91 9273.62 56499.77 52209.48

Mahindra and Mahindra
21 37026.37 3079.73 49945.17 36926.19
Ltd
19 Maruti Suzuki India Ltd 38140.69 2382.37 31475.63 14762.9
41 Hero MotoCorp Ltd. 19669.29 1927.9 40398.63 4447.22

46 Bajaj Auto Ltd. 17008.05 3454.89 46885.69 5154.96
67 Ashok Leyland Ltd. 11133.04 631.3 6653.15 6621.16
101 Sundaram Clayton Ltd. 7419.41 64.63 529.23 2428.87
110 TVS Motor Company Ltd. 6569.99 127.94 2985 1745.06
148 Eicher Motors Ltd. 5138.64 243.12 4448.27 474.14
396 Force Motors Ltd. 1574.05 58.62 730.05 583.79
Source: http://www.team-bhp.com/forum/indian-car-scene/141129-august-2013-indian-car-sales-figures-analysis.htm
The overall automobile exports grew by 6.39 per cent during April–February 2014. Passenger
vehicles, three wheelers and two wheelers registered growth at 6.44 per cent, 16.40 per cent and
5.41 per cent respectively, compared to the same period last year.
1.2 Role of Customer Relationship Management in Automobile Industry

Customer relationship management (CRM) is increasingly important to firms as they seek to
improve their profits through longer-term relationships with customers. In recent years, many have
invested heavily in information technology (IT) assets to better manage their interactions with
customers before, during and after purchase (Bohling et al., 2006). Yet, measurable returns from
IT investment programs rarely arise from a narrow concentration on IT alone, with the most
successful programs combining technology with the effective organization of people and their
skills (Bhardwaj, 2000; Piccoli and Ives, 2005). It follows that the greater the knowledge about
how firms successfully build and combine their technological and organizational capabilities, the
greater will be our understanding of how CRM influences performance. Although the market for
CRM software and support is strong that remains considerable skepticism on the part of business
commentators and academics as to its ultimate value to the corporation and customers (Maoz et al.,
2007). Surveys of IT executives in the business press report that CRM is an overhyped technology
(e.g. Bligh and Turk, 2004) and some academics claim the concept is fundamentally flawed
because CRM ignores the reality that many customers do not want to engage in relationships
(Dowling, 2002; Danaher et al., 2008).
Empirical studies examining the success of CRM technology have failed to alleviate this
skepticism as investigations to date span a limited range of activities (Sutton and Klein, 2003) and
are noticeably silent on the extent to which CRM investment contributes to firm performance
(Boulding et al., 2005). A lack of clear and generalizable empirical support for the expected return
from CRM investments has important practical implications for market development and firm
profitability. It also raises questions regarding the most appropriate mix of capabilities to
effectively exploit investment in CRM Customer Relationship management is the strongest and the
most efficient approach in maintaining and creating relationships with customers. Customer
relationship management is not only important for business but also useful to create strong
personal bonding within people. Development of this type of bonding drives the business to new
levels of success.
Once this personal and emotional linkage is built, it is very easy for any organization to identify
the actual needs of customer and help them to serve them in a better way. It is a belief that more
the sophisticated strategies involved in implementing the customer relationship management, the
more strong and fruitful is the business. Most of the organizations have dedicated world class tools
for maintaining CRM systems into their workplace. Some of the efficient tools used in most of the
renowned organization are Batch Book, Sales force, etc.
Faced with the increasingly complex and competitive environment that characterizes the
automotive industry – with challenges ranging from tighter profit margins to new entrants in the
new- vehicle and aftermarket service business – original equipment manufacturers (OEMs) and
dealers are turning more aggressively to customer relationship management (CRM) to help attract
new customers, increase brand loyalty, reduce costs, increase efficiency, and maintain a
competitive advantage.
Today’s automotive consumers are increasingly well-informed and have an unprecedented level of
choice in the marketplace. Customer loyalty is no longer a given and forward-looking auto-
motive, companies have to work harder than ever to earn and retain it. To respond to high
customer expectations, companies are finding, they have to use both traditional and emerging
channels to deliver more effective, efficient, and profitable marketing, sales, and customer service.
Malik G. /University Journal of Research Vol. 01, Issue 01 & 02 (2015-16) ISSN: 0000–0000
2. Literature Review
Reichheld and Sasser (1990) indicated that an improvement of 5 percent in customer retention
leads to an increase of 25 percent to 75 percent in profit of automobile companies. Further, Wills
(2009) reported that it costs more than five times as much to obtain a new customer than to keep an
existing one. Moreover, with loyal customers, for example, companies can increase their revenue.
First, loyal customers are less price sensitive, and the premiums of loyal customers increase 8
percent annually in the personal insurance industry (Reichheld and Teal, 1996). Second, loyal
customers are willing to purchase frequently, try the firms’ other products or services, and bring
new customers to the firms (Reichheld and Sasser, 1990). At Northwestern Mutual, the
contribution of 55 percent sales is from existing customers (Reichheld and Teal, 1996). Further the
author indicates that customer loyalty provides a foundation for a firm to examine their marketing
strategy, relationship quality improvement activities, and value creation program. Day (1969)
introduced the concept of commitment to loyalty studies, and reported that commitment to the
brand is necessary in determining the loyalty. The study seeks to develop a conceptual framework
of brand image on customer commitment and loyalty. Therefore, the purpose of study is to
evaluate how corporate brand image affects customer commitment as well as impact on loyalty in
automobile sector.
Payne and Zrow (2005) had developed a structured framework of customer relationship
management (CRM) which helps the better understanding of CRM and the way it enhances the
customer value and shareholder. The researchers have found out theoretical aspects of CRM, and
they have identified 3 alternative perspectives of CRM. The authors emphasized the need for a
cross-functional and process-oriented approach that places CRM at a strategic level. Oliver (1997)
indicated that customer loyalty is defined as a deeply held commitment to re-purchase a preferred
product or service in the future. With loyal customers, companies can maximize their profit
because loyal customers are willing to (1) purchase more frequently; (2) spend money on trying
new products or services; (3) recommend products and services to others; and (4) give companies
sincere suggestions (Reichheld and Sasser, 1990). Thus, loyalty links the success and profitability
of a firm (Eakuru and Mat, 2008).Customer loyalty is commonly distinguished in three approaches
including behavioral loyalty approach (Grahn, 1969) attitudinal loyalty approach (Bennett and
Rundle-Thiele, 2002; Jacoby, 1971; Jacoby and Chestnut, 1978), and integration of attitudinal and
behavioral loyalty approach (Dick and Basu, 1994; Jacoby, 1971; Jacoby and Chestnut, 1978;
Oliver, 1997). The attitudinal loyalty helps to examine the factors of loyalty, to avoid switching
behavior (Caceres and Paparoidamis, 2007), and to predict how long customers will remain loyal
(Jacoby and Chestnut, 1978). Therefore, viewing loyalty as an attitude-behavior relationship
allows integrated investigation of antecedents and consequences of customer loyalty (Dick and
Basu, 1994). (Tim et.,al reveled for the companies to survive in today’s competitive environment;
this becomes the major objective of customer relationship management in customer retention. In
the present market conditions consumer are very important factors as the companies change their
short term and long term policies according to customer requirement. In same line, Parvatiyar and
Sheth (2001) developed the conceptual foundations of CRM by determining the literature on
relationship marketing and other streams that gives the knowledge of CRM. CRM implementation
challenges as well as CRM's potential to become a distinct discipline of marketing are also
discussed in this paper. Milovic (2012) Customer Relationship Management is a business strategy
that is based on the philosophy of "customer is king" that is customer is put in the central place.
This philosophy, with the enhancement of IT in past 20 years, has experienced a major change.
Today it is said that consumer is a dictator, according to whom the company will always adjusts its
business. The most important task of organization is to satisfy a client's needs, which ultimately
means their long-term value to the organization. This paper describes the application of CRM
strategies in several industries Thuyuyen et al., (2007) place forward the methods for booming
implementation of the CRM and to discusses barriers to CRM in e-business and therefore the m-
business. Coltmana et.al., (2011) analyzed the impact of the customer relationship management
(CRM) on a firm’s performance with the employment of hierarchical construct model has been
examined. when following the resource-based read of the firm, the strategic CRM has been
conceptualized that is associate endogenously determined operate that the organization ability to
harness and orchestrate lower order capabilities that comprise physical assets, like IT
infrastructure, and structure capabilities, like human analytics and business design. The results
have a positive and awfully important path between a superior CRM capability and the firm
performance. In turn, the superior CRM capability has been absolutely related to the human
analytics and design of business. The results recommend that the impact of IT infrastructure on the
superior CRM capability has been indirect and absolutely mediate with the employment of human
analytics and therefore the business design.
2.1 Objectives of the Study

The main objectives of the study are as follows:-
1. To analyze the effectiveness of customer relationship management on customer satisfaction.
2. To study the impact of customer relationship management on customer retention in
automobile sector and further explore the various CRM activities conducted/initiated by
various companies.
3. Research Method and Research Instrument

The research methodology for the present study was based upon descriptive research design.
Stratified Non Probability Sampling method was used, which involves the sample being drawn
from that part of the population which is close to hand. The questionnaire survey technique (refer
to Annexure 1) was used to collect data. Responses were collected from 120 respondents from the
NCR (National Capital Region) of India. The choice of questions for the study include questions
on personal background; age- lowest range was 16-20 and highest was 40 and above; gender-
male/female; employment type- employed (public, private and self), student and unemployed. The
other questions were on variables used to assess automobile service performance; customer care
services Validity of the questionnaire also done to check whether the variable used to study
customer relationship management dimensions will produce consistent results (refer to Table 2).
Table 2. Validity of Questionnaire
Cronbach’s Alpha Number of items
0.745 24
3.1 Different Dimensions of CRM in Automobile Sector

To narrate the variable in different dimensions of customer relationship management in automobile
sector the factor analysis has been administered. Explanatory factor analysis is used to identify the
underlying constructs and investigate relationships among the variables. To test the suitability of
the data for factor analysis, the following steps are taken:
 The correlation matrix are computed and examined. It reveals that there are enough
correlations to go ahead with factor analysis.
 To test the sampling adequacy, Kaiser-Meyer-Olkin measure of sampling adequacy is

computed which is found to be 0.620. It indicates that sample is good enough for sampling.
The overall significance of correlation matrices is tested with Bartlett test of sphericity (Approx
Chi-square = 0.537and significant at 0.000) provided as well as support for the validity of the
factor analysis of the data set.
Table 3. KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.537
Approx. Chi-Square 80.923
Bartlett's Test of Sphericity Df 55
Sig. 0.000
Source: Primary Data
A high value of the statistics (from 0.5 to 1) indicates the appropriateness of the factor analysis
for data in hand. Here the value is 0.537 which means it is appropriate to apply factor analysis.
Figure. 1 Screen Plot of Components

Figure 1 clearly depicts that Eigen values and component (factor) number according to the order of
extraction. This plot is used to determine the optimal number of factors to be retained in the final
solution. Here are 4 components having Eigen value above 1.
Table 4. Rotated Component Matrix

Component
Statements 1 2 3 4
Quality work performed 0.582 0.197 -0.179 -0.261
Comfort 0.171 -0.209 -0.354 0.462
Willingness to satisfy you -0.312 -0.294 -0.481 0.040
Friendliness helpfulness -0.029 0.606 0.343 0.248
Convenient hrs of timing 0.112 -0.188 0.594 0.043
Availability appointment 0.691 0.023 -0.071 0.316
Receiving 0.709 -0.194 0.282 0.127
Promptness -0.170 0.025 0.633 0.003
Arranging replacements 0.076 0.112 0.106 0.773
Cleanliness 0.208 0.537 -0.062 -0.342
On time delivery -0.074 0.771 -0.149 0.012
Note: Extraction method: Principal component analysis, Rotation method: Varimax with Kaiser Normalization,
Rotation converged in 7 iterations.
The rotated component matrix table 4 had shown that customers’ convenience, delivery of services,
showing confidence and promptness of services being offered by the service providers in
automobile sector. The Rotated variables mentioned below have factors loading of 0.6 or above.
Factor 1 - Availability of Services: This factor has been loaded by two variables availability of
appointment (0.691) and receiving (0.709). It’s clearly shows that customers are concerned about
the availability of their vehicle services at any point of time.
Factor 2 - User Friendly: This factor has been uploaded by two variables –friendliness (.606) and
on time delivery (.771) and cleanliness (.537). Under the CRM benefits now a days companies also
offered the online service booking facility, pick and drop facility for retaining their loyal
customers.
Factor 3 - Prompt Services: This factor has been uploaded by only one variable is promptness of
the services offered by service provider and convenient hour. CRM system saves time and cost of
the customers, through this system, customers expect prompt service from the service provider.
Factor 4 - Replacements: This factor has been uploaded by only one variable is promptness of the
services offered by arranging replacement for the auto parts etc.
Table 5. One-Sample Test

Test Value = 0
T Df Si Mean 95% Confidence Interval
H01: Customer Difference of the Difference
satisfaction has Lower Upper
no association
with customer
retention.
Confidence
level: 95%g. (2-
tailed)
Customer Satisfaction and 46.256 319 .000 2.388 2.29 2.49
preference of second
purchase
Satisfaction has strong association with customer retention (repetitive purchase).
According to the above table, we can conclude that the significance level or the p value is less than
0.5 so we will reject the null hypothesis in favor of alternative hypothesis which is customer
Satisfaction and loyalty: Table- 6 highlights the relationship between the satisfaction of the
respondents and they recommended the vehicle and service to their friends or relatives for
purchasing.
Table 6. satisfaction * recommend to others

Parameters Recommend to others Total
Yes no
highly satisfied 43 19 62
satisfied 39 12 51
neutral 2 1 3
least satisfied 2 1 3
dissatisfied 0 1 1
Total 86 34 120
Above Table shows that 82(43 highly satisfied and 39 satisfied) of 120 customers recommend the
product or service to others. This infers that satisfaction leads to loyalty (spread of positive word of
mouth).
4. Multiple Regression Analysis
To identify whether different dimensions of CRM has strong impact on customer loyalty, multiple
regression was used.
Table 8. Contribution of variables in the dimensions of trust dependent variable: customer loyalty scores (y)
Independent Variable Unstandardized Co- Standard Standardized Co- t-Value Significant
efficient Error efficient
Constant (y) 1.634 0.256 - 5.130 0.000
On time service delivery 0.531 0.078 0.502 6.841 0.000
(Promises ) (X1)
Promptness in handling 0.062 0.056 0.082 1.112 0.268
repair work (X2)
Note: Multiple R 0.514, F-Value 24.590: d.f (2,137) p < 0.05: and R2 = 0.264
The above Table explains contribution of trust dimensions of customer relationship management to
customer Loyalty.
Y = 1.634 + 0.531 (X1) + 0.62 (X2) Where Y is the estimated customer Loyalty Score.
The above equation revealed the variables of trust and on time service delivery, consistent in
providing services. On an average, if the perception score of trust changes by 1 unit, there will be
0.531 unit increase in customer loyalty, other variable being remain constant similarly the multiple
R of 0.514 revealed that there exist the relationship of 51 percent between trust and customer
loyalty. Similarly R2 indicates 0.264 change in trust explained and variation of 26 percent in
customer loyalty. The relative importance of variables in predicting trust can be determined by
comparing beta co-efficient. Values of Beta are 0.502, 0.082 respectively for customers work
promises are reliable, and consistent in providing services. This shows that among all aspect of
trust, on time service delivery and Promptness in handling repair work had most powerful impact
on customer loyalty. It has been noticed from the above analysis that for further designing
customer retention programme for trust and on time delivery could play major role for retaining
the customers.
Table 9. Contribution of variable in the dimensions of caring. Dependent variable: Customer Loyalty Score (Y)
Independent Variable Un Standardized Standard Standardized Co- t-Value Significant
Co-efficient Error efficient
Constant 1.307 0.303 - 0.4309 0.000

Friendliness helpfulness 0.093 0.051 0.132 1.838 0.068
(Quickly handling customer
query)
Arranging replacements 0.016 0.033 0.034 0.498 0.620
Fulfill its obligation to 0.600 0.072 0.582 8.296 0.000
customer
Note: Multiple R 0.633, F value 30.291; d.f (3.136): P < 0.05: and R2 0.401
Y = 1.307 + 0.093 (X1) + 0.016 (X2) + 0.600 (X3) Where Y is the estimated customer loyalty score.
The above equation shows the impact of the variable of, Friendliness helpfulness, arranging
replacements full fills its obligation to customers. On an average, if perception score of caring on
an average changes by 1 unit, there will be 0.093 units. Increasing in customer loyalty, similarly
the multiple R of 0.633. Shows that there exist the relationships of 63 percent between caring and
customer loyalty. Similarly R2 0.401 of exhibits that the variable of caring explained a variation of
40 percent in customer loyalty. The relative importance of variable in predicting. Caring can be
determined by comparing standardized regression co-efficient (beta Co-efficient). Values of beta
are 0.093, 0.016, and 0.600 respectively for Friendliness helpfulness, arranging replacements full
fills its obligation to customers. This shows that among all aspects Friendliness helpfulness
(Quickly handling customer query), arranging replacements and Fulfill its obligation to customer
had powerful impact on customer loyalty.
5. Findings
This paper has drawn attention on the impact of different dimensions of customer relationship
management to customer loyalty. From the analysis, it is concluded that customer works and
promises are reliable. Automobile service provider fulfills its obligation to customer, are offering
advice on how to invest the predominant variable which will increase customer loyalty. So the
automobile sector needs to focus more attention in the above stated variables, thereby increasing
customer loyalty.
94.2% of the customers are in the satisfaction and above satisfaction level. The customers are
satisfied with the company’s services and hence they will be loyal customers and will be retained.
This indicates that satisfaction leads to customer loyalty and retention. Crosstab results show that
satisfied customers are retained as they would go for the second purchase of the product Crosstab
results show that satisfied customers recommend the product or service to others that is they spread
a positive word of mouth. According to customers, breakdown of charges are not explained to
them and the paper work is not completed in time so the companies need to improve on the above
mentioned attributes. Most of the service representatives are courteous and knowledgeable but
when it comes to call handling there is difference of opinion among respondents 31 percent are
strongly agree that there is quick call handling where as 30 percent disagree on quick call handling,
so call handling should be quick rather than keeping customers on hold or make them waiting for
long.
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Annexure-I (Questionnaire)
Respondent name
Address
Contact Numbers
Email Id
Gender And Age
1. Rate from 1 to 5 on the basis of preference the following services 1 being highly preferred
and 5 being least preferred
Services 1 2 3 4 5
Free after sales service
Test drive
Free training
2. What type of CRM services do you avail?

 E-CRM
 Tele-customer service
3. What activities company does to maintain continuous relation with you?

 Loyalty program
 Bonus card
 Annual offers
 Club invitations
4. Rate the Benefits of CRM

Benefits Strongly Agree Neutral Disagree Strongly
agree disagree
CRM activities
saves time
CRM activities
reduces cost
CRM activities
helps in better
decision making
Cross selling
5. In thinking about your most recent experience with [COMPANY], was the quality of
customer service you received:
 Very poor
 Somewhat unsatisfactory
 About average
 Very satisfactory
 Superior
6. The following questions pertaining the customer service representative with whom you
spoke recently.
The customer service Strongly Agree Neutral Disagree Strongly

representative was: agree disagree
Very courteous
Handled my call quickly
Very knowledgeable
7. On your most recent service visit, how would you rate the service department on the following
areas?
Highly Satisfied Neutral Least satisfied Dissatisfied
satisfied
Quality of work
performed
Avoiding inconvenience
Made you feel
comfortable
Willingness to go out of
their way to satisfy you
Friendliness and
helpfulness of cashiers
Having convenient
hours for service
Ease of obtaining an
appointment
Quickly acknowledging
your arrival
Promptness in handling
repair work
Arranging replacement
Clean, comfortable
waiting area
On time delivery
8. Did the following things occur on your most recent service visit?
Statements Yes No
You were explained the work to be performed before hand

You were explained the work performed and the breakdown of the
charges
You were informed when your car was ready
The paperwork was completed and waiting for you when you arrived
9. Would you recommend the product to others?

 Yes
 No
10. Would you prefer the same company or the product for your second purchase?
 Yes
 No
11. How satisfied are you with the service?

 Highly satisfied
 Satisfied
 Neutral
 Least satisfied

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Available online at www.ganpatuniversity.ac.

University Journal of Research

ISSN (Online) 0000–0000, ISSN (Print) 0000–0000

Impact of Customer Relationship Management on Customer Loyalty

1. Indian Automobile Industry

1.1 Key Statistics

Table 1. Top Automobile Companies in India (Figures in Crores)

7 Tata Motors Ltd 123222.91 9273.62 56499.77 52209.48

41 Hero MotoCorp Ltd. 19669.29 1927.9 40398.63 4447.22

1.2 Role of Customer Relationship Management in Automobile Industry

2.1 Objectives of the Study

3. Research Method and Research Instrument

3.1 Different Dimensions of CRM in Automobile Sector

 To test the sampling adequacy, Kaiser-Meyer-Olkin measure of sampling adequacy is

Figure. 1 Screen Plot of Components

Table 4. Rotated Component Matrix

Table 5. One-Sample Test

Table 6. satisfaction * recommend to others

4. Multiple Regression Analysis

Constant 1.307 0.303 - 0.4309 0.000

Bennett, R. & Rundle-Thiele, S., (2002). A comparison of attitudinal loyalty measurement

Bharadwaj, A.S. (2000). A Resource-Based perspective on information technology capability and

Piccoli, G (2005). IT-Dependent Strategic Initiatives and Sustained Competitive Advantage: A

Report of the Committee on Compilation of FDI in India. Reserve Bank of India.(2014-15).

Report of Department of Industrial Policy and Promotion on Automobile sector (2014-15)

Hall, New Delhi

Tim R. Coltmana, Timothy M, Devinney.B, and David F. Midgley. C (2011). Customer

2. What type of CRM services do you avail?

3. What activities company does to maintain continuous relation with you?

4. Rate the Benefits of CRM

The customer service Strongly Agree Neutral Disagree Strongly

You were explained the work to be performed before hand

9. Would you recommend the product to others?

11. How satisfied are you with the service?

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