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Faculty of Management Sciences

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    Customer relationship management as a strategic tool for customer retention at a selected ICT company in Johannesburg
    (2024) Sibisi, Christopher; Rawjee, Veena Parboo; Govender, Jeevarathnam Parthasarathy
    In the aftermath of Covid-19 and its negative impact on business and profitability, many businesses are seeking innovative solutions to curb the loss of customers. The adoption of effective customer relationship management (CRM) initiatives is on the rise in many industries in South Africa. This is primarily characterised by the fact that it is now extremely difficult to secure new business when the company continues to lose its existing business to competitors. The adoption of CRM has been profoundly successful because of its ability to synergise various units within the company to work together to achieve common goals. The goal is to provide quality customer service with the intention of achieving customer satisfaction that leads to customer retention. Through good CRM strategies, systems and processes, companies build strong organisational capabilities and competencies that enable them to create sustainable competitive advantages. This study focused on CRM as a strategic tool for customer retention at a selected Information Communication Technology company in Johannesburg. The study adopted a quantitative method to collect data on the various factors influencing the use of CRM in the organisation. The population of the study consisted of 121 employees in the company from whom the data was collected using electronic questionnaires as the data collection instrument. The study population consisted of sales, marketing, business development, outbound logistics and finance teams. These participants were selected because of their engagements with current and potential customers. The study used the Statistical Package for the Social Sciences (SPSS) version 26 software for data analysis. This software was used to produce graphs and tables to generate meaningful interpreted data. The demographic data was analysed using frequency distribution tables.
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    Customer experience and customer loyalty : an assessment of retail multichannel banking in the Durban area
    (2023) Kiliswa, Nancy Gathoni; Gathoni, Nancy
    Customer experience (CX) has received substantial attention in empirical research in the recent past. While there has been growing research interest in customer experience, few studies have examined its relationship with other concepts such as customer loyalty, customer satisfaction and service quality. This study investigates the relationship between customer experience and customer loyalty in retail banking with multiple channels of distribution. Further, the study seeks to advance research on the relationship between customer experience and customer loyalty by exploring the mediation roles of customer satisfaction and service quality in the retail banking industry in South Africa. The South African retail banking industry is increasingly competitive and regularly confronted with new entrants. Technological innovations, regulatory requirements, changing customer expectations, demographics and new non-traditional industry entrants are disrupting the banking industry. The services offered by retail banks are highly undifferentiated and hence there is a need for banks to look for other ways to compete than through differentiation of products. When one of the banks introduces a new service to the market, other banks typically follow suit quickly by imitating it. Subsequently, core services offered by all banks tend to be very similar in nature and form. In addition, customers are highly knowledgeable and selective, and they are increasingly raising their expectations in terms of the quality of services they receive from the banks. In view of this, banks therefore need to have a clear understanding of their customers’ needs and develop relevant offerings that can retain their customers. Relationship marketing is believed to be one of the ways in which banks can create long-term relationships with their customers, thereby gaining their loyalty. Specifically, focusing their efforts on creating advantageous customer experiences, essential to forming long-term loyal relationship with the customers. Thus, this study is aimed at determining the relationship between customer experience and customer loyalty. This is achieved by exploring the influence of selected constructs, namely service quality and customer satisfaction, in order to analyse the role of customer experience as a predictor of loyalty. To achieve the objectives of the study, a quantitative descriptive research approach that was cross-sectional in nature was adopted. A non-probability convenience sampling method was followed to select a sample of 500 bank customers across the Durban region in KwaZulu-Natal, South Africa. A questionnaire was developed from validated measurement scales from previous studies and a literature review. Data was collected by means of a self-administered questionnaire that was distributed physically and online to bank customers. A total of 466 responses was received from the data collection process. The Statistical Package for the Social Sciences (SPSS) 24.0 and Smart Partial Least Square (SmartPLS4) were used to analyse the data. Using data from the survey and Partial Least Squares Structural Equation Modelling (PLS-SEM), a theoretical model was created and empirically tested. This model indicates that customer loyalty can be achieved by improving customer experiences, enhancing service quality and improving customer satisfaction. The results of descriptive statistics indicated an overall mean below 2.5. The presentation then progressed to the SEM analysis, which was done in two stages. The first stage examined the measurement model. As stated, the model in this study is a reflective hierarchical model. The CX construct is a reflective-reflective HOC, and its dimensions of feeling, behavioural, sensorial, cognitive and social are the LOCs; hence, a repeated indicator approach was used to assess the measurement model. The reliability of the reflective measurement model was assessed using indicator reliability, Cronbach’s alpha and composite reliability (rho_c). The convergent validity of the constructs was examined using AVE, while the Fornell Larker technique and the heterotrait-monotrait (HTMT) ratio were used to assess the discriminant validity of the constructs. Thus, using CFA, the validity by means of convergent and discriminant validity as well as the reliability of the model were established. After the measurement model was deemed fit, the structural model was examined by means of path coefficients, variance explained (R2 ) and predictive relevance (Q2 ). The R2 results for the structural model were above 0.65 for all variables, which is considered a substantially good fit, while the Q2 the values obtained were 0.616, 0.694 and 0.712 for customer loyalty, customer satisfaction and service quality respectively. The model was found to be satisfactory for both measurement and structural models, after which relationships among variables were tested for significance. All relationships were found to be positive and significant The results show the key role of customer experience and its impact on customer loyalty and that this relationship is mediated by customer satisfaction and service quality. These findings contribute towards improving the theoretical knowledge of the influence of customer experience on loyalty, and guide retail banks in developing and implementing appropriate customer experience strategies.
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    The role of customer service training in the hospitality sector : a case of the Wild Coast Sun Hotel
    (2022-09-15) Gunpath, Seshini; Lourens, Melanie Elizabeth; Lourens, Melanie
    The purpose of the study was to determine the role of customer service training in the Hospitality industry using the Wild Coast Sun as a case study. The study aimed to add value in identifying the different types of customer service training in the Hospitality industry and serving as a benchmark for the industry. The research methodology employed in this study was a quantitative approach, which aimed to measure and describe the facts, the design used, the numbers and the statistics to reach a conclusion. In this study, the creation and design of the questionnaire went through numerous drafts, which required a considerable amount of time to improve until the final research instrument was formulated. The questionnaire for this study contained a combination of structured questions with closed-ended responses and Likert-scale statements, formulated to focus on a specific area to obtain precise data that allowed for statistical analysis. The responses were analysed using the latest version of the Statistical Package for the Social Sciences (SPSS) version 27 for Windows. The statistical breakdown was conducted in two phases, namely a descriptive statistical analysis and inferential statistics to test the hypotheses. Many significant findings developed from the comprehensive theoretical scrutiny of the statistics. Additionally, these conclusions were also substantiated by other authors and researchers who performed similar studies and whose results were contextualized for the outcomes of the current study. It was recommended that Senior and executive management create a customer-centric environment for both internal and external customers.
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    An evaluation of customer satisfaction with water service quality in the uMgungundlovu District Municipality
    (2021) Muthwa, Emmanuel Xolani; Matsiliza, Noluthando S.
    Water services are critical to the provision of safe drinking water. Access to clean water is recognised as a human right in many countries. In South Africa, the Constitution, the Water Service Act, and the National Water Act are the water legal framework. Recognizing the significance of having access to a safe and sufficient water supply has become a core business for many cities. However, as in many developing countries, South Africa is facing noteworthy challenges with water provision. These challenges are frequently characterized by intermittent water provision, low pressure, and poor water service quality. The uMgungundlovu district municipality has seen an increase in public outrage over water service quality, inevitably resulting in community reactions that are frequently the source of violent protests. Some of the issues that the communities are facing include inappropriate water access, a slow response time from the municipality, and inefficient water infrastructure. Thus, the study aimed to explore how satisfied the community in the uMgungundlovu district municipality is with the water service provision. Furthermore, this study intended to design a framework that can enhance water quality services in the uMgungundlovu district municipality. In this study, the water service quality was measured using the five dimensions (Tangibles, Reliability, Responsiveness, Assurance, and empathy) of the ServQual model coined by Parasuraman, Zeithaml, and Berry. To address the research problem and objectives, this study opted for a mixed-methods approach. This study collected qualitative data through the interview from twenty-four respondents, and quantitative data through questionnaire from 286 respondents in the uMgungundlovu district municipality. The findings of this study reveal that there is a gap in the water service quality provided by the uMgungundlovu district municipality to its customers in terms of what customers perceive and what they experience in all five dimensions of ServQual namely Tangibles, Reliability, Responsiveness, Assurance, and empathy. The study proposes a framework to enhance the water service quality in the context of the rural community. The proposed model is based on the ServQual model. Furthermore, the study recommends that uMgungundlovu district municipality should consider restructuring its customer care service, should consider updating and upgrading water equipment, and should consider modernising the water meter reading system and water statement system.