Managerial Implications Of The Research Marketing Essay

664 words (3 pages) Essay

1st Jan 1970 Marketing Reference this

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8.3 Managerial Implications of the Research

The research observed the trends of consumer liking and its implications for the Indian banks. The findings of the dissertation have a number ofmanagerialimplications for customer relationship management by banksthat contribute to liking. The banks can make their marketing strategies on the basis of results the research as it highlight the significant factors which influence customers liking.

Significantly, a number of managerial implications come from this research but two major areas are customer education and problem management. The  customer education that banks should incorporate into their relationship marketing practice as educating customers has an direct impact on liking. Banks should also try to promote customer involvement in the education process (Prahalad and Ramaswamy, 2000).  The education process can be made more effective by understanding the main ‘gaps’ in a client’s knowledge. Burton (2002), suggests that as the level of understanding increases, customers will only have to be provided with the information required. This will eliminate the need for in-depth educational discussions.  Such knowledge would lead to a more accurate judgment, which will result in better advice being offered to the client.

The second is problem management that bank management should resolve and also to enhance job satisfaction level of employees.  The increase in job satisfaction positively affects customer satisfaction as well as service quality that contribute in liking.  Problem management was found not dealt well by the Indian banks for both customers and employees. This finding suggests that service organizations need to develop strategies, specific to customer needs. It makes them more involved with the customer in finding out the solution. 

Colgate and Norris, (2001) state service organizations, have very little guidance, when dealing with dissatisfied customers. The management can develop improved strategies for dealing with customer’s problems by applying a deeper understanding of how customers’ affective commitment changes their attitude towards the organization.

By establishing good relationship with customers, banks can increase their profits (Ndubisi et al., 2007). Bejou et al. (1996) suggest the quality of the relationship between the customer and service-provider is an important pre-requisite to a successful long-term relationship. Ndubisi et al. (2007) point out that, to guarantee quality in relationships, banks must give and keep promises and allow customer participation. They must understand the needs of the customers and then accordingly customise their products and services.

As the dissertation highlights the significance of trust and commitment in acquiring and keeping loyal customers, the banks should try to earn customers’ trust and commitment. Banks can earn customers’ trust and build quality relationships with them through proactive and reactive ways of handling conflicts, namely: solving conflicts before they are apparent; discussing the customer’s problems; and avoiding potential conflicts (Ndubisi et al., 2007).

There are a lot of advantages linked with customer loyalty, including profitability (Ndubisi, 2003) and cost reduction. Customer loyalty increases profits and can reduce the business operating cost five to sixfold (Rosenberg and Czepiel, 1983). Loyal customers also attract new customers by positive word of mouth about a service provider (Ndubisi, 2003).

In view of the above, banks should conduct extensive research to develop and implement programs that strengthen the emotional attachment between the customer and the bank.  The market research is used to understand the nature of a customers’ emotional bond to a company (Rust et al., 2000).

8.3 Managerial Implications of the Research

The research observed the trends of consumer liking and its implications for the Indian banks. The findings of the dissertation have a number ofmanagerialimplications for customer relationship management by banksthat contribute to liking. The banks can make their marketing strategies on the basis of results the research as it highlight the significant factors which influence customers liking.

Significantly, a number of managerial implications come from this research but two major areas are customer education and problem management. The  customer education that banks should incorporate into their relationship marketing practice as educating customers has an direct impact on liking. Banks should also try to promote customer involvement in the education process (Prahalad and Ramaswamy, 2000).  The education process can be made more effective by understanding the main ‘gaps’ in a client’s knowledge. Burton (2002), suggests that as the level of understanding increases, customers will only have to be provided with the information required. This will eliminate the need for in-depth educational discussions.  Such knowledge would lead to a more accurate judgment, which will result in better advice being offered to the client.

The second is problem management that bank management should resolve and also to enhance job satisfaction level of employees.  The increase in job satisfaction positively affects customer satisfaction as well as service quality that contribute in liking.  Problem management was found not dealt well by the Indian banks for both customers and employees. This finding suggests that service organizations need to develop strategies, specific to customer needs. It makes them more involved with the customer in finding out the solution. 

Colgate and Norris, (2001) state service organizations, have very little guidance, when dealing with dissatisfied customers. The management can develop improved strategies for dealing with customer’s problems by applying a deeper understanding of how customers’ affective commitment changes their attitude towards the organization.

By establishing good relationship with customers, banks can increase their profits (Ndubisi et al., 2007). Bejou et al. (1996) suggest the quality of the relationship between the customer and service-provider is an important pre-requisite to a successful long-term relationship. Ndubisi et al. (2007) point out that, to guarantee quality in relationships, banks must give and keep promises and allow customer participation. They must understand the needs of the customers and then accordingly customise their products and services.

As the dissertation highlights the significance of trust and commitment in acquiring and keeping loyal customers, the banks should try to earn customers’ trust and commitment. Banks can earn customers’ trust and build quality relationships with them through proactive and reactive ways of handling conflicts, namely: solving conflicts before they are apparent; discussing the customer’s problems; and avoiding potential conflicts (Ndubisi et al., 2007).

There are a lot of advantages linked with customer loyalty, including profitability (Ndubisi, 2003) and cost reduction. Customer loyalty increases profits and can reduce the business operating cost five to sixfold (Rosenberg and Czepiel, 1983). Loyal customers also attract new customers by positive word of mouth about a service provider (Ndubisi, 2003).

In view of the above, banks should conduct extensive research to develop and implement programs that strengthen the emotional attachment between the customer and the bank.  The market research is used to understand the nature of a customers’ emotional bond to a company (Rust et al., 2000).

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