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SYNOPSIS ON

RETENTION OF CUSTOMERS AND ITS EFFECT ON


FINANCIAL PERFORMANCE

Submitted By:

Amna Hamid

Research Supervisor:

Miss Farhat

Submitted To:

Miss Manal Tallat

Head Department of Accounting and Finance

KINNAIRD COLLEGE FOR WOMEN, LHR.


BROAD PROBLEM AREA:
The research area focuses on “Marketing”. This area has been chosen because in today’s
world Marketing is considered as a basic foundation for an organization’s success.

The agenda of research is to conduct research on SHEZAN INTERNATIONAL LIMITED


that how Shezan can be an Ideal Organization, What are the steps that Shezan International
Limited has to take to groom it? How that it can have a great come back in the market by
which it can grab the attention of customers.

PROBLEM IDENTIFICATION:
The most essential part of an organization is its Customer Relation Managers, who plays an
important role in the promotion of any organization. It has been observed that from the past
few years the customers of SHEZAN INTERNATIONAL LIMITED are switching very
rapidly to other companies and they have many complaints regarding the Shezan products
quality, ambience and customer service.

PROBLEM STATEMENT:
Research questions will give a direction to conduct the research:

1: What is the impact of quality, customer service, and ambience on customer retention of
Shezan?

2: How retention of customers improves the Financial Performance?

3: How much advertisement can play its role to improve the volume of sale?

LITERATURE REVIEW:
This paper seeks the role played by thequality and customer service in the process of
retention of customers.According to Study conducted by Thorsten- Henning and Alexander
Klee customer satisfaction along with quality have a strong impact on customer retention. He
says customer retention will follow if the customer is satisfied with the quality and service of
the employees.

According to Sharad Borle customers will switch from one store to another if the
product assortment is reduced. The researcher has found out the product assortment plays a
vital role in the stores increased sales. The study is on overall sales of the stored and does not
focus on only one product. The lesser product assortment has a negative impact on the sales.
This study empirically examines the customer retention and financial performance of Shezan
International limited.Financial performance is driven by productivity, market performance,
work system improvement, and product quality. From a practical perspective it is suggested
that quality related initiatives do have significant effect as many studies have shown. (For
example Handricks and Singhal (2009)

The advertisement helps to focus the organization to achieve its different marketing goals and
meet the targets by fighting against the challenges (Michael, Hart, 2007).
The organizations mainly focus to change the consumer behavior for increasing the sale
volume as well as their profitability. There can be many factors which help to influence them
but the advertising activity is most of all preferred. Its different strategies can be used to
increase the outcome level by increasing the level of consumer’s satisfaction. It helps to
introduce the products or services in much enhanced way by highlighting the main
characteristics (Danesi, Marcel, 2004).

THEORETICAL FRAMEWORK:

Now we came to know that there are various factors/variables by which Shezan
International’s sales are declined over the past few years.

 AMBIENCE

 QUALITY

 PAKAGING

 PERCEPTION

 SERVICE

 TIMINGS

 CUSTOMERS

 PRICES

Out of these there will be three variables as independent variables.

 AMBIENCE
 QUALITY

 CUTOMER SERVICE

And dependent variable is

“CUSTOMER RETENTION”

METHODOLOGY:
 PRIMARY AND SECONDARY DATA:

The primary and secondary information gathered through

• Direct observation
• Interviews
• Questionnaires
• Focus group
• Newspapers
• Internet,etc

REFERENCES:
• Thorsten Hennig-Thurau and Alexander Klee, “The Impact of Customer
Satisfaction Relationship Quality on Customer Retention.” Vol. 14(8):737–764
(December 1997)

• Sharad Borle, Marketing Science, “The Effect of Product Assortment changes on


Customer Retention.” Vol. 24, No. 4, Fall 2005, pp. 616–622