A Study On Customer Relationship Management (CRM) of Honda Two Wheeler in Erode District

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A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT (CRM) OF HONDA TWO

WHEELER IN ERODE DISTRICT
Article · July 2016
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International Journal of Innovative Research in Management Studies (IJIRMS)
ISSN (Online): 2455-7188, Impact Factor: 0.7261
Volume 1 | Issue 6 | July 2016
A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT (CRM) OF

HONDA TWO WHEELER IN ERODE DISTRICT
M.Sakthivel* M.Mohanraj** J.Shyamala***
*Research Scholar (Ph.D Department of Management Studies), K.S.R College of Arts and Science (Autonomous),
Tiruchengode, Tamil Nadu, India – 637215
**Research Scholar (Ph.D Department of Management Studies), K.S.R College of Arts and Science (Autonomous),
***Assistant Professor, Department of Business Administration, K.S.R College of Arts and Science (Autonomous),
ABSTRACT
The present article an endeavor has been made to study the customer relationship management on
Honda two wheelers in Erode district. Today’s scenario the most of the industry has been focusing
through the customer point of view while producing the product such an example for Automobile
industries etc., Most of the automobile industries are entry in the market region day to day and
how long it has been taken into the customer’s relationship in the following research. So in the
sense of Honda two wheelers should try to get the concentration of the customers in the manner of
intention to get the close relationship from the management. This study makes an attempt to find
out the customer relationship management (CRM) that made a successful in the market place able
to convince the users about the Honda two wheelers. The questionnaire was prepared through the
inputs taken from the past researches and also from the feedbacks of the pilot study. Thus the
validated final questionnaire was used to collect data from 150 respondents. The results obtained
from the data analysis show that all the relations are meaningful at the %5 of deviation using
spearman correlation test from the customer’s perspectives and the variable of understanding and
separation of customers has the most impact, and the variable of attracting and protecting of
customers has the least impact on the dependent variable. The researchers have adopted convenient
sampling technique to gather the data. The data are analyzed using the simple percentage analysis
and Chi-square. The result of this study reveals that overall satisfaction of Honda with CRM.
Key Words: CRM, Identifying, Retaining, Satisfaction, Targeting.
INTRODUCTION
A management philosophy according to which a company’s goals can be best achieved
through identification and satisfaction of the customers' stated and unstated needs and wants.
www.ijirms.com Page | 150

A preset system for an:

 Identifying
 Targeting
 Acquiring and
 Retaining the best mix of customers.
IDENTIFIED
A management should know the presence of the customer’s needs and wants in the manner
of expectation and also the management should maintain the relationship between customers until
the business in the marketing era. In these sense the organization has to identify the customers to
create good relation and satisfaction and at the same time to earn profit for the organization. First
and foremost, identification of customer plays an important role for every organization to improve
their marketing activity.
TARGETING
Management has to target the customers based on the identification. Once the customers
are identified and targeting will be effective. Targeting has to be based on focusing the particular
group of customer or an area where the needs and wants of the customers are more. Targeting
makes the effective bonding relationship with the customers.
ACQUIRING
The organization has to acquire the customer in order to satisfy the needs as they are
expected. Based on this the organization should work beyond the customer view of expectation.
Acquiring the customer will be very difficult in this present market; because the need and wants
are varying from one customer to another. According to this the organization should create an
effective relationship with the customer.
RETAINING
Retaining of the customer occurs only when the organization satisfy the needs and wants
and at the same time the organization has to create a good relationship with them based on maintain
their database. The organization should make the customer to be satisfied and they should feel that
again they have to come back for a time to purchase, which shows the retaining of the customer.
Customer relationship management helps in profiling prospects, understanding their needs,
and in building relationships with them by providing the most suitable products and enhanced

customer service. It integrates back and front office systems to create a database of customer
contacts, purchases, and technical support, among other things. This database helps the company
in presenting a unified face to its customers, and improve the quality of the relationship, while
enabling customers to manage some information on their own. Customer Relations (CR) as
profitable connections and also as opportunities requiring management. CRM is a business line of
attack which attracts, retains and elevates the patrons (Belghis Bavarsad, 2013).
Figure 1.1 The Processing Cycle for CRM
MARKETING SALES
CRM
SUPPORT ORDER
DISTRIBUTION
IMPARTANCE OF THE STUDY

The Honda two wheeler Motors market is littered over with several, leading nationalized
and global brand. Honda two wheeler Motors, despite their contradictory brands, are not well
differentiated by the consumers. This results in bitty market and perceptibly leads to a highly cut-
throat market. In Honda two wheeler Motors advertise, strong brand justice and a wide delivery
network are vital in attract customers. CRM are built over a period of time by technological
innovations, consistent high quality, aggressive advertisement and promotion and availability of
the products is another decisive success factor, as merchandise are of small value, frequently
purchased daily use items. So, there is always a chance of customer relationship switching due to
impulse buying. A deep insight of CRM adherence and happiness can help marketers retain the

existing customers and entice new ones. In this milieu, this study is undertaken to examine the
regulars brand awareness, loyalty, and satisfaction en route for Honda two wheeler Motors.
NEED FOR THE STUDY
Today public is facing a growing range of choice in the different perspective CRM. They
are making their choice based on their perceptions between customers and management due to that
improve the quality and value of the industries or organizations.
 From where did they come to know about the customers with management?
 Did they feel that the CRM is important to deliver the product of Honda?
STATEMENT OF THE PRNOBLEM
In the emerging knowledge based economy, it has become necessary to know how much
market power lies with the customer relationship management. The study of CRM is essential in
marketing planning. Public needs and preferences keep changing where brands ultimately
command public loyalty.
The realistic side of the problem is to know the acceptance level of the CRM towards the
Honda. This study will help us to understand the customer satisfaction, what problems are facing
by the public, which appropriate measures to taken to solve the problems.
The project has mainly taken up to understand the customer perception, buying motives to
ensure the “CRM is the key to success of the Honda” apart from this; it is to understand the new
opportunities in the market for the improvement of customers and sales toward the products.
OBJECTIVES OF THE STUDY
 To know the socio-economic profile of the consumers of the Honda two wheeler Motors.
 To know the pattern of usages of the Honda two wheeler Motors.
 To study the CRM towards the Honda two wheeler Motors.
 To give suggestions based on the study for the improvement of the CRM.
RESEARCH METHODOLOGY
DEFINITION OF RESEARCH
Defining of and redefining problems, formulating hypothesis or suggested solutions;
collecting, organizing and evaluating data; making deductions and reaching conclusions to
determine whether they fit hypothesis.

TYPE OF RESEARCH: DESCRIPTIVE RESEARCH

This study aims at describing the nature of respondent’s behaviour using CRM on Honda
two wheeler Motors. Therefore, this research is can be called as descriptive research. Descriptive
research includes surveys and fact finding enquires of different kinds. The major purpose of
descriptive research is description of the state of affairs as it exists at present.
SELECTION OF SAMPLE: SAMPLE METHOD
Multistage random sampling
It was collected using convenience sampling method.
Sample Size
The sample size of the study is 150.
Data collection
The study is solely based on the primary data and the source of primary data is the
questionnaire. With the help of the questionnaire distributed among the respondents, the researcher
collected the relevant information from the respondents.
Construction of questionnaire
The questionnaire was constructed based on the inputs from the relevant review of
literature. The questionnaire thus drafted was given to experts in the field of research in order to
get their suggestions. The questionnaire was again modified and then a pilot study was conducted.
In the pilot study 26 questionnaires were distributed in order to get the respondents on the
questionnaire in the areas of clarity, wholeness and relevance of the questions asked in the
questionnaire. Based on the inputs from the pilot study, the questionnaire was again fine-tuned.
The finalized questionnaire was distributed to the respondents in order to conduct the survey
research.
Framework of analysis
The data collected are fed in the SPS software (SPSS). The data are analyzed using the
SPSS programme. The data are analyzed using descriptive statistics, chi-square analysis, and ‘t’-
test, Fried man ranking. The outputs of the analysis are taken and a report is prepared in the MS
word file.

Tools Used in the Study

Percentage Analysis
Percentage analysis is the method to represent raw streams of data as a percentage (a part
in 100 - percent) for better understanding of collected data. It represents or summarizes the relevant
features of a set of values. This can be calculated by this formula
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦
Percentage analysis = ∗ 100
𝑇𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦
Chi-square
The chi-square test is an important test amongst the several tests of significant'. Chi
theoretical variance Square, symbolically written as  2 , is a statistical measure used in the context
of sampling analysis for comparing a variance to a.
This can be calculated using the formula
(O  E ) 2

2
 =
E
Where
O = Observed frequency.
E = Expected frequency (Pillai & Bagavathi, 1999).
SCOPE OF THE STUDY
Customer relationship management, influenced by the advertising recall, affects the
decision of the behaviour, but even at the effective level, forming positive attitude towards the
Honda two wheeler Motors that lead to buying of customer’s satisfaction. The scope of the study
is restricted to Erode districts. The project helps to know the market knowledge about the Honda
two wheeler Motors to the customers and to take feedback from the customer about the CRM
awareness.
LIMITATIONS OF THE STUDY
 Time constraints has prohibited from going deep into the subject. The information obtained
or the collection of data is limited. The study is purely academic.
 Some of the respondents do not have clear idea about the CRM towards Honda. So their
opinion may be biased.

 Some of the respondents feel it as a disturbance to answer the questionnaire in their busy
schedule.
REVIEW OF THE LITERATURE
Atul Parvatiyar (2001, 2002) in his article “Customer Relationship Management:
Emerging Practice, Process, and Discipline” he found that the CRM process framework is
proposed that builds on other relationship development process models. CRM implementation
challenges as well as CRM's potential to become a distinct discipline of marketing are also
discussed in this paper. He suggested that the CRM should not be misunderstood to simply mean
a software solution implementation project. Building relationships with customers is a
fundamental business of every enterprise, and it requires a holistic strategy and process to make it
successful.
Khalid Rababah (2011) in his article “Customer Relationship Management (CRM)
Processes from Theory to Practice: The Pre implementation Plan of CRM System” he found that
the paper recommends that for ensuring the successful adoption and implementation of any CRM
initiative, organization should understand the different levels of CRM process and the integrated
activities among the CRM processes at each level. In addition, for organizations to be successful
adopters and implementers of CRM programs/systems, they should understand the need for
business process reengineering and effective anticipation and management of the change that may
accompany any CRM initiative. He suggests a pre-implementation plan for CRM
programs/systems. Such a plan aims to initiate and communicate a customer-oriented culture
within the organization. This step emphasizes on increasing the understanding of CRM concept
and communicating and spreading the knowledge of the promising benefits of CRM
programs/systems to all parties in the organization.
Ankara (2009) in his article “Customer Relationship Management: Implementation
Process Perspective” he found that the successful implementation of CRM from process
perspective in a trans-national organization with operations in different segments of aid in
understanding transition, constraints and the implementation process of CRM in such
organizations. He suggested that the Organizations face considerable challenges in implementing
large-scale integrated systems such as ERP and CRM. Implementation of a CRM system was
identified as a critical need to align with the overall business strategy of selling solutions, instead

of products. The implementation was driven by the business users, with IT playing a facilitating
role, thereby making sure that users derive maximum value from implementation.
Mehrdad Alipour (2011) in his article” The Effect of Customer Relationship Management
(CRM) On Achieving Competitive Advantage of Manufacturing Tractor” he found that the
research was done in Truck making company of Tabriz in the form of case- study, and its purpose
was to investigate the impact of customer relationship management in order to gain the competitive
advantage in industrialized manufactures of Truck. It was done through designing four hypotheses:
improving and specializing the relationships with the customers, understanding and separation of
the customers, responding to the customers' complaints, and attracting and protecting the
customers. He is recommended to launch electronic systems for investigating the complaints,
recognize the complainant customers and turn them to satisfied customers. Another result is that
the attraction and maintenance of customers (making loyalty) is another factor for making the
competitive advantage. Therefore, it is recommended to promote cooperative plans in the
company, provide the customers with more facilities and make efficient systems for interaction
with customers.
Ogunnaike Olaleke Oluseye (2014) in his article “Customer Relationship Management
Approach and Student Satisfaction in Higher Education Marketing” he found that the student’s
willingness to recommend to others increases when the student lifecycle in the university is well
managed. It was also discovered that strong parent relationship management at the University
enhances the student’s willingness to recommend their Universities to others. He suggested that
the recommended that Universities should adopt effective customer relationship management
strategies to achieve student satisfaction.
Peter C. Verhoef (2003) in his article “Understanding the Effect of Customer Relationship
Management Efforts on Customer Retention and Customer Share Development” he found that the
investigates the differential effects of customer relationship perceptions and relationship marketing
instruments on customer retention and customer share development over time. Customer
relationship perceptions are considered evaluations of relationship strength and a supplier’s
offerings, and customer share development is the change in customer share between two periods.
He suggested that the that affective commitment and loyalty programs that provide economic
incentives positively affect both customer retention and customer share development, whereas

direct mailings influence customer share development. However, the effect of these variables is
rather small. The results also indicate that firms can use the same strategies to affect both customer
retention and customer share development.
RESULTS AND DISCUSSION
PERCENTGE ANALYSIS
Table: 1- PERSONAL INFORMATION FROM THE RESPONDENTS
Gender
Male 96(64%) Female 54(36%)
Age (in years)
18-25 42(28%) 26-35 48(32%) 36-40 39(26%) 41 and above 21(14%)
Marital Status
Married 54(36%) Unmarried 96(54%)
Educational Qualification
Up to 10th 24(16%) Up to 12th 33(22%) UG 57(38%) PG and above 36(24%)
Occupation
Farmer 21(14%) Employee 15(10%) Professional 15(10%)
Business 24(16%) House wife 5(3.3%) Student 70(46.7%)
Family income (per annum in lakhs)
Below 2 30(20%) 2-4 66(44%) 4-6 33(22%) Above 6 21(14%)
Place of residence
Urban 72(48%) Semi-urban 42(28%) Rural 36(24%)
INTERPERTATION
From above table 1 shows that the 64% majority of the respondents are male in gender
would preferred to Honda two wheelers, 26-35 (32%) majority of the respondents are age group
of people are preferred to Honda two wheelers, 54% majority of the respondents are unmarried in
marital status are preferred to Honda two wheelers, UG 57(38%) majority of the respondents are
used Honda two wheelers in educational qualification , 46.7% majority of the respondents are
students Occupation had preferred Honda two wheelers, 44% majority of the respondents are 2-4
lakhs of the family income per annum, 48% majority of the respondents are urban people are used
Honda two wheelers.
Table: 2-GENERAL INFORMATION FROM THE RESPONDENTS

Factors influencing customer relationship to buy Honda
Price 48(32%) Free service 42(28%) Appearance39 (26%) Resale value 21(14%)
Do you like the design of Honda bikes?
Excellent 29(19.33%) Good 57(38%) Satisfying 42 (28%)
Poor 22(14.66%)
Are you comfortable with time period taken for service?
Less than 1 day 67(44.67%) Less than 2 days 54(36%) Less than 1 week 12(8%)
More than a week 17(11.33%)
Overall satisfaction of Honda with CRM
HS 13(8.67%) S 86(57.33%) N 40 (26.67%) DS 7 (4.67%)
HDS 4(2.67%)
Mode of payment do you prefer from banking sector
Very good 27(18%) Good 35(23.37%) Moderate 42 (28%)
Low 46 (30.67%)
Do you think about the price of spare parts?
Very high 19(12.67%) High 35(23.33%) Economy 40(26.67%)
Low 56(37.33%)
INTERPERTATION
From the above table 2 shows that the 32% majority of the respondents are influencing
customer relationship to buy Honda through price and followed by the others, 38% of the
respondents are said that the design of Honda bikes are good, 44.67% of the respondents preferred
less than 1 day with time period taken for service, 57.33% majority of the respondents are satisfied
overall, 30.67% majority of the respondents are prefer low service, 37.33% majority of the
respondents are said that the price of spare parts are low.

CHI-SQUARE TEST
AGE Commitment Level Cross tabulation
Commitment Level
Age Highly Highly Total

Satisfied Neutral Dissatisfied
satisfied Dissatisfied
15-25 Count 5 12 0 3 3 23
Expected
5.1 14.1 1.7 .9 1.2 23.0
Count
26-30 Count 15 43 7 3 2 70
Expected
15.4 42.9 5.1 2.8 3.7 70.0
Count
31-35 Count 7 9 2 0 2 20
Expected
4.4 12.3 1.5 .8 1.1 20.0
Count
36-40 Count 1 14 1 0 0 16
Expected
3.5 9.8 1.2 .6 .9 16.0
Count
41& Count 5 14 1 0 1 21
above Expected
4.6 12.9 1.5 .8 1.1 21.0
Count
Total Count 33 92 11 6 8 150
Expected
33.0 92.0 11.0 6.0 8.0 150.0
Count

Null Hypothesis (H0):

There is no significant relationship between overall satisfactions of Honda with CRM.
Alternative Hypothesis (H1):
There is a significant relationship between Age and overall satisfaction of Honda with CRM.
CHI-SQUARE TESTS
Degree of
Pearson Chi-Square Value Asymp. Sig. (2-sided)
freedom
Pearson Chi-Square 21.273 16 .168

Likelihood Ratio 23.889 16 .092
Linear-by-Linear Association 1.900 1 .168
N of Valid Cases 150
17 cells (25.6.0%) have expected count less than 5. The minimum expected count is .64.
Interpretation:
From the above analysis the calculated value is less than tabular value. So that null hypothesis
is rejected. So there is a significant relationship between Age and overall satisfaction of Honda
with CRM.
CONCLUSION
The study of CRM is essential in marketing planning. Customer needs and preferences
keep changing where relationship has been built ultimately command CRM loyalty.
The realistic side of the problem is to know the acceptance level of the CRM towards the
product. This study will help us to understand the customer relationship, what problems are facing
by the customers, which appropriate measures to taken to solve the problems.
The article has mainly taken up to understand the CRM, buying motives to ensure the
“CRM is the key to success of the management” apart from this; it is to understand the new
opportunities in the market for the improvement of customers and sales toward the products.
REFERENCE
1. Alipour, M. (2011). The Effect Of Customer Relationship Management (CRM)
OnAchieving Competitive Advantage Of Manufacturing Tractor. Global Journal of
Management and Business Research , XI (V), 26-36.

2. Ankara. (2009). Customer Relationship Management:Implementation Process Perspective.

Acta Polytechnica Hungarica , 6 (4), 83-99.
3. Bavarsad, B. ( 2013). Studying the Factors Affecting the Customer Relations Management
(CRM) in Marun Petrochemical Company. Interdisciplinary Journal of contemporary
research in business , 4 (11), 845-857.
4. Oluseye, O. O. (2014). Customer Relationship Management Approachand Student
Satisfaction in Higher EducationMarketing. Journal of Competitiveness , 6 (3), 49-62.
5. Parvatiyar, A. (2001, 2002). Customer Relationship Management:Emerging Practice,
Process, and Discipline. Journal of Economic and Social Research , 3 (2), 1-34.
6. Pillai, R. S., & Bagavathi. (1999). Statistics theory and practice (1st edition ed.). Delhi:
S.Chand and company ltd.
7. Rababah, K. (2011). Customer Relationship Management (CRM) Processesfrom Theory
to Practice: The Pre-implementation Plan of CRM System. International Journal of e-
Education, e-Business, e-Management and e-Learning , 1 (1), 22-28.
8. Verhoef, P. (2003). Understanding the Effect of Customer Relationship Management
Efforts on Customer Retention and Customer Share Development. Journal of Marketing ,
67, 30-45.
*****
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See discussions, stats, and author profiles for this publication at: https://www.researchgate.

A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT (CRM) OF HONDA TWO

Article · July 2016

The user has requested enhancement of the downloaded file.

A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT (CRM) OF

www.ijirms.com Page | 150

A preset system for an:

www.ijirms.com Page | 151

IMPARTANCE OF THE STUDY

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www.ijirms.com Page | 153

TYPE OF RESEARCH: DESCRIPTIVE RESEARCH

www.ijirms.com Page | 154

Tools Used in the Study

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Table: 2-GENERAL INFORMATION FROM THE RESPONDENTS

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Age Highly Highly Total

Total Count 33 92 11 6 8 150

www.ijirms.com Page | 160

Null Hypothesis (H0):

Pearson Chi-Square 21.273 16 .168

www.ijirms.com Page | 161

2. Ankara. (2009). Customer Relationship Management:Implementation Process Perspective.

www.ijirms.com Page | 162

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