ABSTRACT
The purpose of this research is to examine the effects of customer relationship management (CRM) on customer retention by agribusinesses in Aba Metropolis of Abia State. To achieve the aim of this study, fourteen agribusiness firms were randomly selected and from each firm, two staff and five customers were randomly selected. A total of 98 respondents were therefore used for the study. Data were collected from both primary and secondary sources. Primary data were collected using a well structured sets of questionnaire designed for the respondents. The data were analyzed quantitatively using descriptive statistics (means and standard deviations) and binary logit regression analyses. The results of the analyses showed that CRM strategies play major role in customer retention, and there are effective CRM strategies agribusiness firms use that are acknowledged by customers that has encouraged their retention in the various firms. More so, the results obtained showed that certain extents of these strategies of CRM were helpful in customer retention; however certain challenges facing these agribusiness firms were identified. Some socioeconomic characteristics of the customers were found as factors that could affect customer retention (p<0.05), on the contrary, the overall effect of the socioeconomic characteristics of customers and firms were found not to have any significant effect on customer retention (p<0.05). The study concludes that effective CRM strategies are valuable tools for customer retention. The incorporation of the findings of this research work in CRM strategies would serve as competitive edge to attract and retain potential customers by agribusiness firms.
Key Words – Customer Retention, Customer Relationship Management, Agribusiness Firms, Aba Metropolis
TABLE OF CONTENTS
Title Page i
Certification                                                                                              ii
Dedication                                                                                                                  iii
Acknowledgement                                                                             iv
Abstract                                                                                                           v
Table of Contents                                                                                                        vi
List of Tables                                                                                                    vii
List of Figures                                                                                 viii                         Â
CHAPTER ONE: INTRODUCTION
1.1  Background Information           –         –          –          –          –          1
1.2  Problem Statement         –      –          –          –          –          –          5
1.3  Objectives of the study  –               –          –          –          –          –          8
1.4  Hypotheses                    –     –          –          –          –          –          –          9
1.5  Justification of the study                –  –          –          –          9
1.6   Limitations of the study                                                              9
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1   Concept of Customer Relationship Management                 –          10
2.1.1 Relationship Marketing and Customer Relationship Management  12
2.1.2 Customer Relationship Management for Agribusiness    –      13
2.2 The Role of Customer Relationship Management Process in Customer Retention 16
2.3Â Â Effects of Socio-Economic Characteristics on Customer Retention 16
2.3.1 Gender of Customers                                                        16
2.3.2 Age of Customer                                                          17
2.3.3 Income Levels of Customer                                                    18
2.3.4 Educational Level of Customers                                             18
2.4 Effective CRM Strategies and Their Effects on Customer Retention  -18
2.4.1 Strategies for Customer Relationship Management Initiatives –Â Â Â Â 19
2.5 Determine the Extent to Which Effective CRM influence  Customer Retention 25
2.5.1 Effect of CRM on Customer Satisfaction           –          –          26
2.5.2 Relating CRM and Customer Loyalty  –            –          –          –          27
2.5.3 Effect of CRM on Customer Loyalty  –          –          –          –          27
2.5.4 Customer Retention      –          –           –          –          –          –          29
2.5.5 Effects of CRM on Agribusiness Firms                –          –                    30
2.6 Challenges and Benefits of using CRM in Agribusiness –Â Â Â Â Â Â Â Â Â Â Â 31
2.6.1 Benefits of CRM in Agribusiness                 –          –          –          32
2.7 Theoretical Framework               –          –          –          –          –          35
2.8 Analytical Framework                           –          –          –          –          37
2.8.1 Likert rating scale         –                –          –          –          –          –         37
2.8.2 Binary Logit Model      –   –          –          –          –          –          –          38
CHAPTER THREE: RESEARCH METHODOLOGY
3.1      Study Area                                                                                   39
3.2      Sampling procedures                                                                          39
3.3      Validity and Reliability Test Result                                                       40
3.4      Data Collection                                                                                   40
3.5      Data Analysis                                                                               41
3.6      Model Specification                                                      41
3.6.1   Likert Rating Scale                                                       41
3.6.2   Binary logit model                                                          42      Â
CHAPTER FOUR: RESULTS AND DISCUSSION
4.1 The Role of Customer Relationship Management Process in Customer Retention 46
4.2      The Effects of Socioeconomic Characteristics of Both Customers and Firms on Customer Retention                                                             47
4.2.1 Effects of Socioeconomic Characteristics of Customers on Customer Retention 47
4.2.2   The Effect of Firms Characteristics on Customer Retention     51
4.3      Effective Customer Relationship Management Strategies          54
4.4      The Extent to Which Effective CRM Can Lead to Customer Retention  55
4.5      The Effects Of CRM on Agribusiness Firms          56
4.6Â Â Â Â Â Â The Challenges of agribusiness firms in their practice of CRMÂ Â Â Â 58
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1      Summary of findings                                                       60
5.2      Conclusion                                                                                      62
5.3      Recommendations                                                                       63
REFERENCES
LIST OF TABLES
Table 4.1:   Descriptive Statistics                                                    46
Table 4.2.1: Dependent Variable Encoding                                      48
Table 4.2.2: Classification Tablea                                                                   48
Table 4.2.3: Model Summary    49
Table 4.2.4: Showing Socioeconomic Characteristics of Customers that could have Effect on Customer Retention                                                 50
Table 4.2.5: Hosmer and Lemeshow Test                                           51
Table 4.3.1: Dependent Variable Encoding                                          51
Table 4.3.2: Classification Tablea                                                   52
Table 4.3.3: Model Summary                                                   52
Table 4.3.4: Showing Socioeconomic Characteristics of Firms that could have Effect on Customer Retention                                 53
Table 4.3.5: Hosmer and Lemeshow Test                                      54
Table 4.4: Descriptive Statistics                                                             54
Table 4.5: Descriptive Statistics                                                     56
Table 4.6: Descriptive Statistics                                                        57
Table 4.7: Descriptive Statistics                                                       58
