ATHEA MARLON RAYMOND JENYLOU

Introduction and Background of the Study

Customer relations is the company-wide process of nurturing positive
relationships with customers. Without clients, a business cannot survive. Therefore,
improving customer relationship is a must do in any organization's strategy. It
involves more than just compiling specific client data. It goes far beyond that.
Good customer relation keeps customers coming back. Bad customer relation
keeps customers away. If your customers are dissatisfied with your business services,
they will not hesitate to find another business to go to, and in the worst-case scenario,
they might even bring harm to your company's reputation. Furthermore, poor service
results in income and earnings. In the end, poor customer relations can lead to the
closure of a business. To keep as many clients as possible and boost revenue,
businesses have no choice but to continuously enhance their approach or strategy as
for the consumers needs.

In today's dynamic, changing market, customer relationship management

supported by a powerful technological solution for business management such as
Customer Relationship Management (CRM), it is essential for a business success.
(Gomez, et. al, 2021)
Also, According to Abtin & Pouramiri (2016) Customers are at the center of
companies' attention in today's competitive world, and their satisfaction is the primary
factor in gaining a competitive advantage. To gain a competitive advantage,
businesses should pay more attention to their customers' needs and meet them better
than their competitors.
As a result, the research study entitled “The Effectiveness of Enhancing
Customer Relationship of Businesses in Cuyapo, Nueva Ecija” was conducted. This
study is seen by the researchers to contribute to the growth of businesses. Especially,
those businesses that put asides the importance of enhancing customer relationship.
Businesses commonly fails or gone bankrupt because of the lack of customer
relationship.

Statement of the Problem

Generally, this study will be conducted to determine The Effectiveness of
Enhancing Customer Relationship of Businesses in Cuyapo, Nueva Ecija.
Specifically, this study sought answers for the following questions:
1.) First, the Socio-demographic profile of the respondents in terms of their:
1.1 Age, 1.2 Sex, 1.3 Type of Business, 1.4 Years in Business, and their 1.5 Gross
monthly income
2.) Followed by, What will be the effects if a business ignores the
enhancement of customer relationship?
3.) Then, What will be the effects of the enhancement of customer relationship
to the customers?
4.) Lastly, What are the effects of good customer relationship to the
businesses?

Significance of the Study

This study is significant to the following:
 To the Businesses. It gives an insight into the behavior of their customers and
modify their business operations to ensure that customers are served in the best
possible way. Determining the effectiveness of enhancing and maintaining
customer relationship will be the key to a customer’s satisfaction, which will lead
to a customer loyalty and will result to a stable growth of the business.
 To the Aspiring Entrepreneurs. Before starting a business, you need to consider
a lot of things. Such as, being passionate with what you’re doing, understanding
your own strengths, skills, and time available, and especially value your
customers. Building a good relationship with the clients will lead to a successful
business.
 To the Economic Growth. Another reason for a successful business is the
customer relation. If a business is successful, then it will result to increase in
consumer spending. In return it helps the economy sustain its expansion.
 To the Future Researchers. For their future studies, it can be the basis for a
more efficient and productive study. Future researchers will already have a
framework about the effectiveness of enhancing customer relationship in
businesses. They can use it as a guide for their research study.

Scope and Delimitation

This study focuses attention on determining the effectiveness of customer
relationship of businesses in Cuyapo, Nueva Ecija. The research study ONLY
answers the questions in the Statement of the Problem. Specifically, the effects once a
business ignores the enhancement of customer relationship, the impact of the
enhancement of customer relationship to the customers, and the significant
relationship between a good customer relationship and the success of a business. Fifty
(50) businesses in Cuyapo, Nueva Ecija are the respondents.

Theoretical Framework
According to Storbacka, et. al (1994) entitled “Managing Customer
Relationships for Profit: The Dynamics of Relationship Quality” stated that “In this
perspective the task of marketing is not only to establish customer relationships, but
also to maintain and enhance them in order to improve customer profitability. In the
service quality literature higher quality is assumed to lead to customer satisfaction,
which leads to customer loyalty and this drives customer profitability. The framework
highlights factors that, in addition to service quality and customer satisfaction,
influence the links between service quality and profitability.”
As stated on the study, wherein the service quality literature, says that
providing better service, enhancing and maintaining customer relationship would
increase customer satisfaction, which will then increase customer loyalty and which
will increase customer profitability. Most importantly, it will lead to a business
success.

Conceptual Framework
On the first figure, it’s the input, wherein demographic profile of the
respondents, and the statements of the problem located on. This inputs will be the
guide on how the study will flow.
On the other hand, the second figure shows the process that the researchers
will make. They will conduct an in-person interview with questionnaire and then
statistical analysis after.
 Lastly, The third figure which shows the output, on here, the researcher’s can
already determine the “Effectiveness of Enhancing Customer Relationship of
Businesses in Cuyapo, Nueva Ecija” which is the research paper itself.

Definition of Terms
These are the detailed explanations of the terms used through out the study
according to their contextual use.
 Customer Profitability – means the profit a company earns through a customer.
 Customer Relation – the company-wide process of nurturing positive
relationships with your customers.
 Customer Relationship – customer-focused business strategy that integrates sales,
marketing and customer care service in order to create and add value for the
company and its customers.
 Effectiveness – the degree to which something is successful in producing a
desired result; or success. Lastly
 Enhancement – an increase or improvement in quality.

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the related literature and studies connected with the
effectiveness of enhancing customer relationship in businesses after the thorough and
in-depth search done by the research.
The researchers already synthesized/summarized the relevant related literature
and studies. Please jump to the synthesis on CHAPTER II on the manuscripts.
Due to the high level of competition in the marketplace, each player must seek
ways to improve its level of relationship with their clientele (Kumur, et al., 2011).
Thus, Firms are beginning to embrace the concept of managing customers rather than
products as the business environment changes (Miranda & Lacap, 2014). According
to Abtin & Pouramiri (2016) Customers are at the center of companies' attention in
today's competitive world, and their satisfaction is the primary factor in gaining a
competitive advantage. The fundamental prerequisite for achieving customer
satisfaction is to fully meet or exceed their needs, wants, desires, expectations, and
willingness to purchase products. To gain a competitive advantage, businesses should
pay more attention to their customers' needs and meet them better than their
competitors. CRM advantages is divided into two primary paradigms: operational
benefits and strategic benefits. It is advisable that organizations include in their
strategic plans the CRM initiatives that they will use to ensure promotion of customer
loyalty (Kangu, et al., 2013). According to Navarro, et al. (2022) Customer
relationship management (CRM) has proved to be both a highly influential business
management strategy and a powerful business management technology solution. In
the study of Miranda & Lacap (2014) says that to further increase the satisfaction of
clients, it is an imperative for businesses to continually update their establishment
with the current trends in customer relationship management for them to build lasting
relationships with their customer, thus create profitability through loyalty in the long
run.
 PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter presents the results and the discussion of the data gathered with

regards to the demographic profile of the respondents and the questions and the

problems being stated in Chapter 1.

Refer to section 1. where it presents the demographic profile of the

respondents in terms of their age, sex, type of business, years in business, and their

monthly gross income.

Based on the Figure 4., the results shows that the most of the respondents

were female business owners comprising of 62.00 % while male business owners

comprised only at 38.00 % of the totality or they consisted of 31 and 19 in number,

respectively, out of 50 business owners.

While in figure 5, presents the Profile of the respondents in terms of Age and

shows the results of the study and found out that the most of the respondents is

ranging from age 30-39 years old which is fifteen (15) in number or 30.00% of the

totality. Then, it was followed by 40-49 years old with an amount of fourteen (14) or

28.00% in totality. Moreover, the study has received responses from respondents

aging from 20-29 years old which is eleven (11) in numbers and 50-59 years old

which is six (6) in numbers or 22.00%, and 12.00%, respectively. Lastly, business

owners aged 60 and above became the least because comprised only of 8.00 % or four

(4) respondents.

The table 2, above presents the data about the type of businesses where the

respondents of this study belong. Mostly, the respondents business were

Merchandising with twenty-one (21) respondents or 42% in totality. Afterwards, it is

followed by the Service type of business which is 30% or fifteen (15) in numbers. The
one with the least response with 28% that consists of fourteen (14) respondents, that

were gathered from the Manufacturing type of businesses.

Table 3 presents the data about the years in business of the selected business

owners of Cuyapo, Nueva Ecija. More than 5 years and 1-2 years in business has

ranked the same, with a percentage of 30% and both fifteen (15) in numbers in total.

To be followed by 3-5 years in business that consists of thirteen (13) respondents or

26% in total. The one with the least response came from lower than 1 year in

business, which is at 14% or seven (7) total of responses.

Table 4 shows the results of the study and found out that most of the

respondents has P10,000 or lower monthly gross income with 40% in totality or

twenty (20) in numbers. To be followed by monthly gross income of P20,000 and

more with thirteen (13) respondents or 26% in totality. Additionally, respondents who

has monthly gross income ranging from P10,0001 - P15,999 who has ten (10)

respondents or 20% over 100%. Lastly, monthly gross income of P16,000 - P19,999

became the least with only seven (7) respondents or 14% in totality.

Lets move to section 2. Questionnaire and its Interpretation. The

following are the interpretations of the scores in determining their qualitative

descriptions.

Table 5 presents the effects once a business ignores the enhancement

of customer relationship by the selected business owners of Cuyapo, Nueva

Ecija. The statement “Decrease in sales revenue” has the highest mean of

3.14. The second highest average weighted mean was computed and

recorded in statement “Customers stopped using your company's product or

service during a certain time” while the statements “No customer-employee

relations because there’s no positive relationship with them” and “No customer

will refer your business to others” both ranked 3 having a mean of 3.04. The first

statement, “Decrease in sales revenue” favoured the article wrote by Pisova

(2021) stating that numerous studies have shown that businesses that focus

on improving their customer service/relationship perform better financially

and bring in more revenue than those who don’t, thus a possibility of

decreasing in sales revenue. Moreover, the statement “Customers stopped

using your company's product or service during a certain time” also favoured

the Customer Experience Impact Report by Oracle (2022), which says that the

two main reasons of why customers leaves the company or business are

because of rude staff and unbearably slow service, which means that there’s

a need of improvement in customer relationship. On the other hand, the fourth

statement “No customer will refer your business to others” favoured the article

wrote by Mosley (2022) stated that you need to improve customer service or

relations to boost customer referrals. While the second statement, “No

customer-employee relations because there’s no positive relationship with them”

which ranked the same with statement four, favoured the article wrote by

Wellington (2022) stating that  customer relations is the company-wide

process of nurturing positive relationships with your customers — the sum of

all customer interactions and experiences. Thus, no customer-employee

relations because there’s no positive relationship with the customer at all.

 Table 6 shows the shows effects of the enhancement of customer

relationship

to the customers by the selected business owners of Cuyapo, Nueva Ecija.

Statement number 4, “Enhanced customer employee relations” has a mean

of 3.54. While the second highest average weighted mean was computed

and recorded in statement one “Customers are satisfied with the

products/service” and the fifth statement “Improved customer loyalty” with

the mean score of 3.52. The first and fifth statement, “Customers are

satisfied with the products/service” and “Improved customer loyalty”,

respectively is supported by the study of Hayati, et. al (2020) which states that

customer relationship positively influences customer satisfaction and

cutomer loyalty, thus a satisfaction with the products or services and

improved customer loyalty is visible. On the other hand, the fourth statement,

“Enhanced customer employee relations” if there’s an enhancement of

customer relationship, threfore customer employee relations are enhanced or

improved.

The aforementioned tables conclude that enhancing customer relationship to

the business has a positive effect to the businesses and their customers.

Lastly, Table 7 shows the effects of good customer relationship to a

business according to the businesses of Cuyapo, Nueva Ecija. The statement

“Receives good feedback from customers” has the highest mean of 3.74 which

supports the study of Hassa, et. al (2015) which states that the good customer

relationship management has significant effect on the customer satisfaction and both
variables have positive relation. Then it was followed by 3.54 that is recorded in the

statement “No customer will stop using your company’s products/service” that

favoured the article wrote by Plaksij (2022) which states that giving better service,

engaging with your customers properly and paying attention to complaints are the

things that classifies good customer relationship, therefore the business will decrease

customer churn or customers will not stop using your products and services.

Moreover, among the ten statements, the 8th statement, “Increase in gross income”,

ranked 3 which having a mean of 3.52 which supports the article, Why It’s Important

To Build Customer Relationships (2022) which states that building a good customer

relationships is important because some of the benefits are increased in sales and

reduce customer attrition, technically when there’s an increase in sales and reduce on

customer attrition means increase on the income receives by a business.

Therefore, a business that has a good customer relationship proved to

have beneficial effects in the businesses particularly in the selected business

owners of Cuyapo, Nueva Ecija.

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

This chapter presents the summary and findings, conclusion of the results and

the recommendations of the researchers.

Summary

The research study was conducted for the purpose of determining the

effectiveness of enhancing customer relationship to the selected businesses of

Cuyapo, Nueva Ecija. Descriptive Research or method under Non-experimental

Applied Research was utilized in this study and a self-made survey questionnaire was
the main tool in data gathering which was done through in-person interview with

questionnaire with a total of 50 respondents.

Findings

Based on the results gathered from the data, the results are:

1. The respondents were mostly female business owners of Cuyapo, Nueva Ecija.

Owners aging from 30-39 years old have a greater number in the totality than

those who aged from 20-29, 40-49, 50-59 and 60 and above. Most of the

owners has merchandising type of business rather than service and

manufacturing type of business. Additionally, most of the owner’s response

were more than 5 years and 1-2 years in business which has the same amount

of response, which also had a greater number in totality rather than 3-5 years

and lower than 1 year in business. Furthermore, results found out that most of

the respondents has P10,000 or lower monthly gross income compared to

monthly gross income ranging from P10,001 - P15,999, P16,000 - P19,999,

and More than P20,000.

2. Mostly, the effects to a business once they ignored the enhancement of

customer relationship were decrease in sales revenue because businesses

that don’t focus on improving their customer relationship doesn’t bring

in more revenue thus decreasing sales revenue were visible. Moreover,

customers may stopped using their company's product or service

during a certain time which is clearly because of the inefficiency of the

customer and business relationship and which needs an improvement

or enhancement. Additionally, no customers will refer your business to

 others and no customer-employee relations because there’s no positive

relationship with them.

3. Enhanced customer-employee relations, improved customer loyalty, and

customer is satisfied with the service or products are the major effects or

impacts of the enhancement of customer relationship to the customers.

4. On the other hand, receives good feedback from customers, no customer will

stop using your company's product or service, and increase in gross income is

the major effects of good customer relationship to a business according to the

respondents.

Conclusions

The findings of the study have led the researchers to come up with the

following conclusions:

1. Mostly, the business owners were female and aged from 30-39 years old. They

mostly have merchandising type of business and already in business for 1-2

years and more than 5 years, which also has a monthly gross income lower

than P10,000;

2. The effects once a business ignores enhancement of customer relationship, and

the effects of enhancing customer relationship to the business, and effects of

good customer relationship to a business varies depend on them which may be

influenced by several factors and

3. Enhancing customer relationship is unquestionably effective to a business

success.

Recommendations
 The researchers were able to construct the following recommendations

because of the conclusions that were formulated:

1. Future researchers should also include the factors that affects the respondents

answer or response.

2. Future researchers should also include the several inefficiencies of enhancing

customer relationship.

3. Future researchers can focus also focus on the effectiveness or benefits of

enhancing customer relationship not just in terms of the business and customer

but also the whole community.

4. Businesses should properly engage with their customers and continuously

improve the relationship with them. Learn how to get along and cater their

needs at all times, because it will led your business to a success.