The Impact of Service Quality and Relationship Quality on Customer Loyalty in Business-to-Business Context

The main objective of this Master’s Thesis was to examine the interrelations of service quality and relationship quality (customer satisfaction, trust and commitment), and find out are they antecedents for customer loyalty in business-to-business context. Literature review revealed some research gaps concerning these focal concepts, which should be studied more closely. The theoretical basis for this research was collected for evaluating a strategic increase of customer’s perceptions of service quality and relationship quality as well as customer loyalty in business-to-business environment, and it was tested empirically in a sample of 164 corporate customers, who responded to the Internet-based survey. The measures, used in the survey, were first assessed by using confirmatory factor analysis (CFA), and then the hypothesized relationships were further verified using structural equation modeling (SEM) in LISREL 8.80. There was found support for a half of the hypothesized construct relations. The results of the research confirm the direct influence of trust and commitment on customer loyalty. Also, service quality turned out to have an indirect impact on customer loyalty through trust. No support, however, was offered for the proposed impact of customer satisfaction on loyalty in this case. The research provides managerially relevant and actionable results that may help service providers execute more specific customer relationship quality strategies that lead to higher customer loyalty.

Customer consciousness in the production process of a steel factory

The purpose of this thesis is to examine the level of customer consciousness of the production process employees in a steel factory and to investigate the methods of internal marketing in order to propose development practices to enhance the customer consciousness of the case company employees. The significance of the level of customer consciousness is discussed and practices already implemented affecting the level of customer consciousness in the company are examined. The literature review gives an insight to the role of customer consciousness in the CRM philosophy of a manufacturing company and examines the means of internal marketing in enhancing customer consciousness. In the empirical part of the study, the level and significance of customer consciousness is determined by conducting individual and focus group interviews. The interviews are also used to examine the practices that could function in enhancing the customer consciousness of the employees. Development suggestions to improve the level of customer consciousness in the production process are given based on the results. The level of customer consciousness is at a poor level in the production process and influences above all on work motivation and job satisfaction, but possibly on customer satisfaction as well. The enhancement of customer consciousness in the production process should be done e.g. by ensuring the distribution of right knowledge coherently to all of the employees, gathering large customer reference database to exploit in work and in training, using visual illustration in presenting the customer information, training proactively and letting the employees to participate in the customer oriented development activities. Customer satisfaction focused reward system can be considered.

Customer loyalty in DIY retailing in Russia: Innovative approaches for improving customer retention through technology

Customer satisfaction has been widely studied concept due to its importance on business performance. Customer satisfaction should ideally lead to customer loyalty and have a positive effect on business profitability and growth. This study investigates customer satisfaction and loyalty in the Do-It-Yourself retailing in Russian  market.  “K-rauta”  retail  chain  was  chosen  as  a  focus company for this study. Goal of the study was to investigate what creates customer satisfaction in this given market and what is the role of quality, trust and satisfaction for creating customer loyalty. The role of internet in consumer purchasing process was also investigated. Furthermore, consumer preferences towards new marketing solutions such as smart phone applications were briefly examined.

Promoting Customer Loyalty Through a Telecommunication Specific CRM Framework

The objective of this thesis is to find new methods to promote customer loyalty in the telecommunication industry. The study was made on the appointment of Tecnotree Corporation, which operates in a telecommunication software business. This thesis comprises of a theoretical section, which includes the presentation of relevant theoretical background and of an empirical section, which is mostly based on interviews and professional opinions. One of the most important aspects of customer relationship management (CRM) is building customer loyalty. Telecommunication markets are becoming saturated in an increasing number of markets. Customer acquisition is no longer a way to grow; companies need to hold on to their existing customers. Companies are always looking for new ways to avoid churning customers. These new methods are searched from recent studies and they are discussed with marketing professionals from operators. Current CRM lacks the ability to extract data efficiently from databases. Social media’s utilization is also in its early stages. It contains a lot of possibilities, but also things that can be risky for companies. In order to obtain full advantage of the new methods companies are required to invest considerable amounts of time and money to develop new systems, but not all companies are ready for the change.

Revising customer profitability measurement in a paper industry company

Tämän tutkimuksen tavoitteena oli selvittää, pitäisikö trimmihävikin kustannukset lisätä case yrityksen asiakaskannattavuuslaskelmaan. Trimmihävikin vaihtelua asiakkaiden välillä tutkittiin yhdellä case yrityksen tuotantolinjalla. Myös tilaustekijöiden sekä ajankohdan vaikutusta trimmihävikin määrään selvitettiin. Teoreettinen viitekehys rakennettiin asiakaskannattavuuden ja asiakassuhteiden johtamisen ympärille. Tutkimuksen empiirisessä osassa hyödynnettiin kvantitatiivista tutkimusmenetelmää ja tilastollisissa analyyseissä käytettiin laajaa aineistoa. Tulokset osoittivat, että trimmihävikin määrä vaihteli asiakkaiden kesken. Asiakkaista muodostettiin kolme klusteria. Näiden klustereiden tarkempi tutkiminen osoitti selvän yhteyden asiakkaan ostokäyttäytymisen ja trimmihävikin välillä. Lopuksi tutkimuksen tulosten hyödyntämismahdollisuuksia pohdittiin ja myös tutkimuksen rajoitukset tunnistettiin.

Multifactor Performance Study on Complex Systems for the Benefit of Management

The primary objective is to identify the critical factors that have a natural impact on the performance measurement system. It is important to make correct decisions related to measurement systems, which are based on the complex business environment. The performance measurement system is combined with a very complex non-linear factor. The Six Sigma methodology is seen as one potential approach at every organisational level. It will be linked to the performance and financial measurement as well as to the analytical thinking on which the viewpoint of management depends. The complex systems are connected to the customer relationship study. As the primary throughput can be seen in a new well-defined performance measurement structure that will also be facilitated as will an analytical multifactor system. These critical factors should also be seen as a business innovation opportunity at the same time. This master's thesis has been divided into two different theoretical parts. The empirical part consists of both action-oriented and constructive research approaches with an empirical case study. The secondary objective is to seek a competitive advantage factor with a new analytical tool and the Six Sigma thinking. Process and product capabilities will be linked to the contribution of complex system. These critical barriers will be identified by the performance measuring system. The secondary throughput can be recognised as the product and the process cost efficiencies which throughputs are achieved with an advantage of management. The performance measurement potential is related to the different productivity analysis. Productivity can be seen as one essential part of the competitive advantage factor.

Customer-Related Internal Communication in a Global Matrix Organization

The objective of the thesis was to explore the nature and characteristics of customer-related internal communication in a global industrial matrix organization during a specific customer relationship, and how it could be improved. The theoretical part of the study views the field of the concepts of intra-organizational information and knowledge sharing. The theoretical part also views the internal communications influences to customer relationships, its problematic, and the suggestions to improve internal communication in literature. The empirical part of the study was conducted with the Content Analysis and the Social Network Analysis as research methods. The data was collected by interviews and a questionnaire. Internal communication was observed first generally within the organization from the point of view of a certain business, and secondly, during a specific customer relationship at personal level and at departmental level. The results of the study describe the nature and characteristics of internal communication in the organization. The results give 13 suggestions for improving internal communication in the organization. Although the study has been done in one specific organization, it also offers insights for other organizations as well as managers to improve their internal communication.

Mobile Subscription Acquisition and Retention Costs - An Actvity-Based Model

The objective of this master’s thesis was to develop a model for mobile subscription acquisition cost, SAC, and mobile subscription retention cost, SRC, by applying activity-based cost accounting principles. The thesis was conducted as a case study for a telecommunication company operating on the Finnish telecommunication market. In addition to activity-based cost accounting there were other theories studied and applied in order to establish a theory framework for this thesis. The concepts of acquisition and retention were explored in a broader context with the concepts of customer satisfaction, loyalty and profitability and eventually customer relationship management to understand the background and meaning of the theme of this thesis. The utilization of SAC and SRC information is discussed through the theories of decision making and activity-based management. Also, the present state and future needs of SAC and SRC information usage at the case company as well as the functions of the company were examined by interviewing some members of the company personnel. With the help of these theories and methods it was aimed at finding out both the theory-based and practical factors which affect the structure of the model. During the thesis study it was confirmed that the existing SAC and SRC model of the case company should be used as the basis in developing the activity-based model. As a result the indirect costs of the old model were transformed into activities and the direct costs were continued to be allocated directly to acquisition of new subscriptions and retention of old subscriptions. The refined model will enable managing the subscription acquisition, retention and the related costs better through the activity information. During the interviews it was found out that the SAC and SRC information is also used in performance measurement and operational and strategic planning. SAC and SRC are not fully absorbed costs and it was concluded that the model serves best as a source of indicative cost information. This thesis does not include calculating costs. Instead, the refined model together with both the theory-based and interview findings concerning the utilization of the information produced by the model will serve as a framework for the possible future development aiming at completing the model.

The Pursued Benefits of Customer Loyalty Programs

Customer loyalty programs have increased in recent decades and customers are members in several loyalty programs. Loyalty programs are seen as a tool of exploiting customer relationship management with the aim of long-term, profitable customer relationships. Companies have created such a market where customers are rewarded automatically, even if they are disloyal. In addition, companies are struggling as they try to motivate customers to purchase more and make more frequent visits.

CRM system implementation for managing customer relationships in business-to-business markets

Tutkielman tavoitteena oli selvittää, kuinka CRM-järjestelmä otetaan käyttöön asiakkuuksienhallinnan tueksi yritysten välisillä markkinoilla. Tutkielma keskittyy erityisesti käyttöönoton varhaisiin vaiheisiin selvittämällä, mikä on järjestelmien rooli asiakkuudenhallinnassa ja miten ne tukevat erilaisia käyttäjätasoja, jotka työssä jaettiin strategiseksi, operatiiviseksi ja analyyttiseksi tasoksi. Lisäksi työ esittelee käyttöönottoon yleisimmin liittyviä sudenkuoppia. Tutkielma on laadullinen tutkimus ja siinä on kuvattu CRM-järjestelmän käyttöönottoon liittyviä kysymyksiä yritysten välisillä markkinoilla toimivan caseyrityksen näkökulmasta. Tutkimuksessa havaittiin, että CRM-järjestelmän onnistunut käyttöönotto vaatii mahdollisimman yksinkertaista ja helppokäyttöistä järjestelmää. Käyttöönoton ei myöskään tulisi vaatia monimutkaista koulutusta, vaikkakin koulutusten tärkeys tunnistettiin. Tutkimus osoitti, että vaikka tämänhetkiset CRM-järjestelmät keskittyvät enemmän yksityiskohtaisten asiakasanalyysien tekoon, järjestelmä voi myös palvella asiakkaisiin liittyvän tiedon yhteisenä tallennus- ja jakamispaikkana. Lisäksi tutkimuksessa todettiin, että useimmiten potentiaaliset sudenkuopat olivat luonteeltaan hyvin käytännönläheisiä, kuten järjestelmän käyttämättömyys sekä huono motivointi ja sitouttaminen.

The role of customer perspective in organizational renewal. A comparative case study of knowledge-intensive business services.

The objective of this thesis was to study organizational renewal from the customer orientation perspective. Customer orientation is divided into customer relationship management and customer knowledge, which both are important components of customer related organizational renewal capabilities. The study was conducted in knowledge intensive business service firms, which are required to renew their strategy, operations and processes constantly in order to gain and sustain competitive advantage. In the empirical research, two companies were studied, both offering services to their customers. The analysis was done in two phases; first each case was analyzed individually and then the cases were compared in a cross-case analysis. The most important finding was that customer orientation is considered important but it is not being utilized for organizational renewal in full capacity.

The key practices of customer portfolio management (CPM) process in the medical and healthcare B2B industry

The goal of this study is to deepen the understanding of the customer portfolio management process. There are many models for the process, and they are not necessarily exclusive of each other. Consequently, the inclusion of many models might even prove out to be beneficial. Other theoretical framework include the current economical situation and its propose on customer portfolio management. With an understanding of the theoretical models as a background, the empirical part of this study compares Finnish multinational medical and healthcare technology companies’ customer portfolio management practices. The empirical research was carried out with theme interviews held with 11 sales and marketing managers or directors from four different companies. The goal was to discover the most essential practices of the process steps in the companies. The result of this study is that there is a lack of systematic customer portfolio management, but most companies are aiming to improve this in the near future. The most essential practices are analysis of sales, communication level, learning, and commitment to strategy of the focal company. Special characteristics of this industry include large business networks that include customers, professional end-users, institutions, universities, researchers, and key opinion leaders. The management and analysis of this comprehensive network has been seen to be extremely important for this industry.

Visual customer segmentation and behavior analysis : a SOM-based approach

Ett ämne som väckt intresse både inom industrin och forskningen är hantering av kundförhållanden (CRM, eng. Customer Relationship Management), dvs. en kundorienterad affärsstrategi där företagen från att ha varit produktorienterade väljer att bli mera kundcentrerade. Numera kan kundernas beteende och aktiviteter lätt registreras och sparas med hjälp av integrerade affärssystem (ERP, eng. Enterprise Resource Planning) och datalager (DW, eng. Data Warehousing). Kunder med olika preferenser och köpbeteende skapar sin egen ”signatur” i synnerhet via användningen av kundkort, vilket möjliggör mångsidig modellering av kundernas köpbeteende. För att få en översikt av kundernas köpbeteende och deras lönsamhet, används ofta kundsegmentering som en metod för att indela kunderna i grupper utgående från deras likheter. De mest använda metoderna för kundsegmentering är analytiska modeller konstruerade för en viss tidsperiod. Dessa modeller beaktar inte att kundernas beteende kan förändras med tiden. I föreliggande avhandling skapas en holistisk översikt av kundernas karaktär och köpbeteende som utöver de konventionella segmenteringsmodellerna även beaktar dynamiken i köpbeteendet. Dynamiken i en kundsegmenteringsmodell innefattar förändringar i segmentens struktur och innehåll, samt förändringen av individuella kunders tillhörighet i ett segment (s.k migrationsanalyser). Vardera förändringen modelleras, analyseras och exemplifieras med visuella datautvinningstekniker, främst med självorganiserande kartor (SOM, eng. Self-Organizing Maps) och självorganiserande tidskartor (SOTM), en vidareutveckling av SOM. Visualiseringen anteciperas underlätta tolkningen av identifierade mönster och göra processen med kunskapsöverföring mellan den som gör analysen och beslutsfattaren smidigare. Asiakkuudenhallinta (CRM) eli organisaation muuttaminen tuotepainotteisesta asiakaskeskeiseksi on herättänyt mielenkiintoa niin yliopisto- kuin yritysmaailmassakin. Asiakkaiden käyttäytymistä ja toimintaa pystytään nykyään helposti tallentamaan ja varastoimaan toiminnanohjausjärjestelmien ja tietovarastojen avulla; asiakkaat jättävät jatkuvasti piirteistään ja ostokäyttäytymisestään kertovia tietojälkiä, joita voidaan analysoida. On tavallista, että asiakkaat poikkeavat toisistaan eri tavoin, ja heidän mieltymyksensä kuten myös ostokäyttäytymisensä saattavat olla hyvinkin erilaisia. Asiakaskäyttäytymisen monimuotoisuuteen ja tuottavuuteen paneuduttaessa käytetäänkin laajalti asiakassegmentointia eli asiakkaiden jakamista ryhmiin samankaltaisuuden perusteella. Perinteiset asiakassegmentoinnin ratkaisut ovat usein yksittäisiä analyyttisia malleja, jotka on tehty tietyn aikajakson perusteella. Tämän vuoksi ne monesti jättävät huomioimatta sen, että asiakkaiden käyttäytyminen saattaa ajan kuluessa muuttua. Tässä väitöskirjassa pyritäänkin tarjoamaan holistinen kuva asiakkaiden ominaisuuksista ja ostokäyttäytymisestä tarkastelemalla kahta muutosvoimaa tiettyyn aikarajaukseen perustuvien perinteisten segmentointimallien lisäksi. Nämä kaksi asiakassegmentointimallin dynamiikkaa ovat muutokset segmenttien rakenteessa ja muutokset yksittäisten asiakkaiden kuulumisessa ryhmään. Ensimmäistä dynamiikkaa lähestytään ajallisen asiakassegmentoinnin avulla, jossa visualisoidaan ajan kuluessa tapahtuvat muutokset segmenttien rakenteissa ja profiileissa. Toista dynamiikkaa taas lähestytään käyttäen nk. segmenttisiirtymien analyysia, jossa visuaalisin keinoin tunnistetaan samantyyppisesti segmentistä toiseen vaihtavat asiakkaat. Visualisoinnin tehtävänä on tukea havaittujen kaavojen tulkitsemista sekä helpottaa tiedonsiirtoa analysoijan ja päättäjien välillä. Visuaalisia tiedonlouhintamenetelmiä, kuten itseorganisoivia karttoja ja niiden laajennuksia, käytetään osoittamaan näiden menetelmien hyödyllisyys sekä asiakkuudenhallinnassa yleisesti että erityisesti asiakassegmentoinnissa.

Customer knowledge processing in maintenance business: case study

The purpose of the study is to examine and increase knowledge on customer knowledge processing in B2B context from sales perspective. Further objectives include identifying possible inhibiting and enabling factors in each phase of the process. The theoretical framework is based on customer knowledge management literature. The study is a qualitative study, in which the research method utilized is a case study. The empirical part was implemented in a case company by conducting in-depth interviews with the company’s value-selling champions located internationally. Context was maintenance business. Altogether 17 interviews were conducted. The empirical findings indicate that customer knowledge processing has not been clearly defined within the maintenance business line. Main inhibiting factors in acquiring customer knowledge are lack of time and vast amount of customer knowledge received. Enabling factors recognized are good customer relationships and sales representatives’ communication skills. Internal dissemination of knowledge is mainly inhibited by lack of time and restrictions in customer relationship management systems. Enabling factors are composition of the sales team and updated customer knowledge. Inhibiting utilization is lack of goals to utilize the customer knowledge and a low quality of the knowledge. Moreover, customer knowledge is not systematically updated nor analysed. Management of customer knowledge is based on the CRM system. As implications of the study, it is suggested for the case company to define customer knowledge processing in order to support maintenance business process.

Asiakasarvon selvittäminen ja palvelukonseptin kehittäminen muovialan pk-yrityksessä

Kahden yrityksen väliset transaktiot perustuvat pohjimmiltaan asiakkaan kokemaan arvoon, eli siihen, mitä hyötyjä asiakas kokee saavansa suhteessa niihin kustannuksiin, jotka se joutuu uhraamaan ne saavuttaakseen. Tämän arvon tulee parantaa asiakkaan asemaa suhteessa sen omaan kilpailutilanteeseen ja asiakkaisiin. Arvo voi muodostua tarjooman hinnoittelusta, mutta muita asiakasarvon ulottuvuuksia voivat olla muun muassa laatutekijät sekä asiakassuhteen ja toimittajan imagon vaikutukset. Tämän tutkimuksen tavoitteena on selvittää, mitkä ulottuvuuden muodostavat asiakkaan kokeman arvon case-yrityksen toimialalla sen urakoitsija- ja jälleenmyyjäasiakkailleen segmenteissä. Lisäksi analysoidaan, kuinka tuotantoon keskittyneen yrityksen tulisi kehittää palvelukonseptiaan luodakseen lisäarvoa kyseisille segmenteille ja saavuttaakseen siten kilpailuetua markkinoilla. Tutkimus on tapaustutkimus, jonka tärkeimpänä aineistonkeruumenetelmänä toimivat 17 nykyisten, entisten ja potentiaalisten asiakkaiden teemahaastattelua. Tulokset osoittavat, että toimiala on haastava lisäpalveluiden kannalta, koska ne eivät ole sille tyypillisiä. Asiakkaiden näyttää olevan erityisen vaikea tunnistaa palveluita, joista ne olisivat valmiita maksamaan. Tämä johtaa tilanteeseen, jossa asiakasuskollisuus ei ole erityisen korkea, vaan etenkin jälleenmyyjäasiakkaat ostavat tuotteet pääosin hintaan perustuen. Selkeän lisäarvopalvelukonseptin luominen voikin parantaa asiakasuskollisuutta ja sitä kautta asiakkaan elinkaaren arvoa, mikä voi rikkoa markkinoiden perinteisiä toimintamalleja case-yrityksen eduksi.