Introduction

The basic aim related with this work is to study the impact of corporate social
responsibility on the relation between customer relationship management and customer
trust, in the last twenty years; there occur a big change in relationship between
organizations, societies and companies as far as the nature is concern. Researchers
specify that now it is impossible that, any firm can independently continued to act as the
entity, neglecting the involvement of the general people/customers. As far as our
knowledge and field work is concern, we believe that this type of study has not yet been
done in Pakistan; the key element of the study is that we select those organizations for the
research which have CRM and CSR in their organizations collectively. In today's
competitive world, organizations are competing with one another to gain competitive
advantage and retain their customers because to make new customers is more costly as
compare to retain old customers and, making new customers includes huge cost of
advertising (Reichheld & Sasser, 2000).
CRM system automatically becomes successful for creating the Customer Trust, if a
company makes it an internal part of its corporate strategy. If an organization wants to
generate the sound relationships with the consumers/customers then, it must be the
primary task for the organization to generate the customer trust. So, for generating the
customer trust every organization needs to make an efficient any successful strategic plan
with the interaction of customer connection, development of customer trust is based on
what customer wants and how the organization is fulfilling their requirements Marketing
practices of any successful organization must have to focus towards customer interest and
everyone of them must needs to give priority for investing in customer relationship
management (CRM) systems (Kerstetter2001; Reinartz & Kumar 2002; Winer 2001).
When we discuss the moderating role of CSR on CRM and Customer Trust link, main
thing is to identify the actions which influence to positive improvement in the
profitability as well as considering the modern rules and regulations for the business, but
every organization needs to play its role for the betterment of the environment because
“code of ethics” tells that protection of natural resources should be the relevant concern
for the established organizations as well. Organizations have to create goodwill, stable
society, and active culture movements, with environmental activities for generating the
strategic initiative (Reynard & forstater, 2002).
In our study CSR is our basic moderating element, we have to check its effect on the
relation between Customer Relationship Management and Customer Trust link. Customer
Trust is the first step towards customer loyalty so if an organization wants loyal
customer; first they have to make the customer trust they can proceed towards customer
loyalty.CRM plays a very important role in making customer trust, many researches show
that two way communication is always very useful and successful in making customer
trust.
 Literature Review

CRM

CRM was included in the world of information technology as the replacement of the
relationship marketing in late 90’s and it provides technological based customer solutions
for the relationship marketing (Parvatiyar & Sheth 2001) while delivering superior value
and satisfaction to customers and developing effective and improved customer
relationship (Kotler & Armstrong, 2004). It is widely used as an effective tool for the
collection, analysis and translating valuable information of the customer into managerial
action. (Jackson 1985). Maintaining relationship with customers is a very vital technique
in the effective and efficient allocation of resources to the important customers of the
organization (Dorsch, Michael J., Les Carlson, Mary A. Raymond & Robert Ranson,
2001) as it focuses towards creating the better relations with the customers and work for
their welfare (Tuominen & Kettunen, 2003).

Customer Trust

Customer trust is the believe of one party over another in the process of any kind of
transaction but, when you trust on someone there must be a risk factor involves which
can influence your trust in future (Deutsch 1958). Trust is completely based on
appearance of reality or situation, that situation can be related with any past incidence or
previous experience, customer trust could be based on the favorable or positive response
and it can influence negatively if any un-favorable condition occurs. In comparison with
retention strategy, making new customers cost more to an organization. (Reichheld &
Sasser, 2000), to gain competitive advantage it is essential for any company to develop a
trusting relationship. (Barney & Hansen 1994, Lane 1998, Sako 1998)
CRM and Customer Trust

CRM is the basic platform for the relationship of customers and organizations, it is
basically the way of efficient working that how efficient or productive is the organization
is for creating the customer trust, if organization is providing the quality products or
services which are currently fulfilling the testing criteria of the customers then trust
automatically appears from the customer side (Stefanou, Sarmaniotis & Stafyla 2003).
Creating customer trust is completely depended on the salespersons and management,
how they communicate with the customers, how well they are prepared to solve their
queries, and the quality of information they provide for the development of trust in
marketing relations (Beverland, 2001). Relation of trust can be influence by the efficient
management with the proper evaluation of the products, if it responds according to the
demand and needs of the customers then it would influence positively else negatively
(Reynolds & Arnold, 2000). Market based learning could be the key aspect as far as the
customer training or trust development is concern, if organization wants to generate the
trust, customer portfolio could help it a lot (Johnson & Selnes, 2004).

CSR
In current age, more than 85% organizations are directly or in-directly associated
explicitly with CSR activities (Kotler & Lee 2004; Lichtenstein, Drumwright &
Bridgette 2004), doing something for the well being of the society is the ethical
obligation for an organization over the enviornment or society for the betterment of the
conditions(Brown & Dacin 1997; Sen & Bhattacharya 2001; Varadarajan & Menon
1988). Advertising with a social paradigm is getting popularity (Drumwright, 1996).
Marketing studies have showed that CSR activities play a significant role in influencing
the outcomes related to the customers (Bhattacharya & Sen 2004). The trend towards
CSR in Pakistan is growing; many MNC's and local companies are engaged in CSR
activities (www.csrpakistan.com).
WAQAS et al
Waqas Qaiser

Adnan Mehmood

Hassan Tariq

Ammar

Section: J

Course: MBA
MID-TERM

Subject: Research Methodology

Instructor: PROF.I.HAQ

University of Central Punjab