Chapter IV:

Research Methodology
4.1 Research Method
CRM means applying automation to existing sales, marketing, support and
channel processes as organizations attempts to improve communications,
planning, opportunity and campaign management, forecasting, problem solving,
and to share best practices. However, poorly performed activities or processes
rarely improve the quality of the outcome. The measurement of success is the
increased efficiency in sales, marketing, support and channel processes.
Brand Asausage has three main customers: Modern Outlets (HCO: High Class
Outlet), Institutional Outlets and Traditional Outlets. However the research of the
thesis will focus on the biggest customers of Brand A, which are Modern Outlets
(HCO: High Class Outlet). These High class outlets have around 60% of the total
share of the Brand A production. These are the retailers: Makro, Carrefour,
Hypermart and Giant.
The research uses the 40 / 60 Pareto theory. Focusing on the activity on the 40%
of the total Brand A customers will represent 100% of the Brand A customers. By
applying this theory, Brand A will focus on improving the CRM activity of
profitable customers only.




4.2 Research Process Schematic Diagram
Fig 3: The Research Process (Uma Sekaran, 2003)













3.
Problem
Definition
5.
Scientific
Research
Design
4.
Theoretical
Framework
1.
Observation
8.
Report
Writing

2.
Preliminary
Data
Gathering
9.
Report
Presentation
No Yes
6.
Data
Collection,
Analysis and
Interpretation
7.
Deduction
1. OBSERVATION
Here the broad area of research has to be identified. This process includes Company
visits and its Customer visits (i.e. Carrefour and other retailer). As well as other study and
examination that includes survey
2. PRELIMINARY DATA GATHERING
This step is basically done to collect and gather all essential information which are
necessary to conduct further research. The data gathered can be categorized into:
Primary Data. The primary data includes interviews with the companys staff
manager and CEO; Customers survey and observation on the products (Product
Testing)
Secondary Data. The secondary data includes companys profile, customers
data, books, magazines and internet.
3. PROBLEM DEFINITION
A Problem Definition is a crucial step since no good research can be accomplished
without a proper problem definition. In every company always some problems occur.
Reality shows always a difference between the desired condition and the actual condition.
The Problem definition is then to be analyzed later in this chapter.
4. THEORITICAL FRAMEWORK
The Theoretical Framework is the foundation on which the whole project is based. It is
the logically developed and constructed description of the framework among variables of
interest that makes up the CRM system. Here is the theoretical framework of the
research.


Fig 4: Schematic Diagram for Theoretical Framework

Independent Variable Moderating Variable Intervening Variable Dependent Variable
Notes: (Uma Sekaran, 2003)
* Independent Variable is a variable that influences what the dependent variable accounts
for
* Dependent Variable is the variable of primary interest to the study
* Moderating Variable is a variable that relies strongly on the relationship between the
dependent variable and independent variable. That is the presence of a third variable (the
moderating variable) modifies the original relationship between the dependent variables
and the independent variables.
Customer
Relationship
Changes
in behavior
of the
staff
Changes in
the CRM
system
Price
CRM
System
Delivery
Time
Products
Quality
* Intervening Variable is a variable that surfaces as a function of the independent variable
and helps in conceptualizing and explaining the influences of the independent variable on
the dependent variable.
5. SCIENTIFIC RESEARCH DESIGN
Research is very essential in order to find the needs and wants of customers. A
questionnaire will be distributed to the customers in order to analyze the needs and wants
of the customer further as well as other important factors that make a good CRM activity.
The research design is based on the method of simple statistical analysis.
6. DATA COLLECTION, ANALYSIS AND INTERPRETATION
All of the data that has been collected is compiled to become meaningful information.
Then the all the data and information is analyzed along with the research including the
questionnaires distributed to the customers of Brand A. The interpretation and evaluation
of these findings will create a recommendation for the solution of the problems of the
company.
7. DEDUCTION
This step reviews the conclusions and recommendations that have been achieved. It poses
the question, Is the research question answered?
If the question is answered with a Yes, the research should progress to the final two
steps which are report writing and report presentation.
If the answer is No, review of previous research steps should be undertaken. This is
shown by the dotted lines in Fig. 3 where any problems found that hampered the findings
of the solution should be reviewed and fixed.


4.3 Customer Information Gathering
In order to have a good and coherent view of the customers, fulfilling the needs
and wants of the customers is very essential.
According to the tri-dimensional figure (See Fig 1: The tri-dimensional Figure),
the three needs and wants of customers are delivery-time, price and quality offered by
Brand A. According to the survey done, customers emphasize heavily on getting a good
delivery-time which is defined by promptness and accuracy. While Brand A is able to
maintain a good quality for those three aspects, Brand A should narrow and focus its
resources to fulfill the most determinant needs and wants of the customers which are the
elements of delivery time.














4.4 Survey
In order to achieve reliable thesis results, a survey must be conducted to examine
the needs and wants of customers. More specifically this survey is to analyze the trends in
the relationship between CRM strategy, price, delivery-time and products quality offered
to the customers. The method used for this thesis is a simple statistical analysis.
The main objective of the survey is to investigate the customers preference of a
brand and the most essential factors in building a successful business relation with these
customers. The product attributes include price, delivery-time, product quality and
relationship (customer service provided, response time and the relation between company
and the competitors).
The method of calculation is to calculate the average point gained by combining
the four factors (price, delivery time, products quality and relationship) by Brand Aand
its competitors. It is designed to provide a diagnostic method of exploring buying
behavior and to determine the relative perceived value in different product attributes.
Other than then the main objective, the survey is also designed to find out the
overall performance of Brand A and its competitors as well as other quality that Brand A
offer to its customer.