Volume 2 ;Issue 2; March 2014 ; ISSN 2278 8425

Study of Customer Relationship Management (CRM) Practices in organized retail

shopping Malls at bengaluru city in India
Mayur Kumar.A*
*Assistant Professor,K.S.R.M college of Management studies, E-Mail-rohinimayur@gmail.com

Abstract

Retailing today occupies a key role in the world economy. It must be concisely and clearly
defined; retailing includes all the activities involved in selling goods or services directly to final
consumers for personal, non-business use. India retailing as seen in sprawling shopping center, multi-
stored malls and huge complexes offer shopping, entertainment and food all under one roof. In India
shopping malls are growing much more Shopping mall offers customers the possibility to be anything or
anybody they want to be, it gives them opportunity to be free and independent even if it’s just for a
passing moment. CRM is potentially a useful concept in the marketing and customer services areas of a
retail sector. CRM stands to be the survival mantra. Managing customer relationship effectively and
effectively boots customer satisfaction and retention rates. CRM involves shopping malls enabled
business processes that identify, develop, integrate and focus a business’ competencies on forging
valuable long-term relationships that deliver superior value to its customers. This study is undertaken to
identify the CRM practices on the customer satisfaction and retention in organized retail shopping malls
in Bangalore city India. The required data of study would be collected from both primary as well as
secondary sources. Liker scale was used in designing the questionnaire, A sample of 142 respondents was
taken from different malls located in bengaluru city has been selected for the reliability of the analysis.
The hypothesis has been tested by using ANOVA and Result of research as concluded the important to
enhance the CRM practices makes better to shopping at retail stores in shopping malls at Bangalore city.

Keywords: Retailing, organized retailing, Shopping Malls, Customer Relationship Management.

1. Introduction to Retailing in India: Customer Relationship Management

practices towards in Retailing:
Indian retail market is one & the
Indian’s fastest growing industries is expected to The highly demanding and
grow from us $ 350 billion to us $ 427 billion knowledgeable consumers are compelling
2010, retail is India’s largest industry accounting retailers to stock a huge product range, offer
for over 10 percent & the country’s GDP and attractive discounts in an aesthetically set up
around eight percent & employment. Retail in environment and soon all in the hope of having a
India is at the crossroads. It has paced industries loyal customer base so, customer relationship
with several players entering the market. management may be referred to as a philosophy
Retailing in India is gradually inching its way to a set of strategies, programmer and system
becoming the next boom industry. The whole which focuses on identifying and building
concept of shopping has altered in terms & loyalty with the retail outlet malls most valued
format and consumer buying behavior, ushering customers. This means that CRM will work on
in a revolution in shopping, modern retail has the principle that retailers have to chat out
entered India as seen in sprawling shopping programmes which will help them to raise their
centers, multi-storied malls and huge complexes profitability ones continuous basis though
offer shopping, entertainment and good all under building long-term relationship with their
one roof. In recent times, however more and customer’s customer Relationship management
more by retail outlets are coming up in the is a company business strategy designed to
metros and cities and the country. Many reduce cost and increase profitability by
business houses now thinking and opening up a solidifying customer loyalty. CRM practices
retail chain and their own, Spencer and co- may shift with each form. Nevertheless,
limited, Vitan industries limited pantaloon, organized retail shopping malls will benefit from
shoppers stop, Reliance malls, to name a few the resources it commits to developing its CRM
have already in the business with a big bang. practices in greater customer loyalty. Right time
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 Volume 2 ;Issue 2; March 2014 ; ISSN 2278 8425

and involves attracting (acquiring),developing campaigns and concentration on existing

and maintaining successful customer customer. C. Bhattacharjee (2006) in his book
relationships over time and building customer “Services marketing concepts planning &
loyalty through efficient and effective two-way Implementation” Classified customer
dialogues that seek to understand and influence Relationship Management (CRM) have been
customer buying behaviors and improve undertaken to give all possible information to
customer acquisition, retention, loyalty and the current and potential customer. He says to
profitability Although not entirely built on achieve CRM, a company-wide set of tools,
shopping malls CRM involves shopping malls technologies, and procedures promote the
enabled business processes that identify, relationship with the customer to increase sales
develop, integrate and focus a business’ those CRM is primarily a strategic business and
competencies on forging valuable long-term process issue, rather than a technical issue. The
relationships that deliver superior value to its author concludes CRM is very hard to be
customers. implemented throughout a company. The IT
department needs extensive infrastructure and
2. Review of Literature resources to implement customer relationship
Darshan Desai, Sabrat Sahu and Piyush management (CRM) databases successfully.
Kumar Sinha (2007) on the basis of analytical
and empirical or case research conducted a Joseph. Nunes and Xavier Dreze (2006)
random sample study of 334 executives was in their article “Your loyalty program is
selected from 29 firms in the following betraying you” highlighted creating a successful
industries: retail (n=60), telecom (n=80) and loyalty program starts with defining what should
banking (n=183) in India. They also concluded be gained from the effort. In some cases, loyalty
that. Impact of market orientation on dynamic programs create what marketers call barriers to
capability of CRM and competitive CRM exit. They say that a benefit of loyalty programs
performance may be the result and shaping the that has gained prominence in the past decade is
organizational resources that no longer match their ability to provide useful data about
the environment. These include processes like customers. Sunjay Kumarkar and Alok kumar
analysis customers, developing and delivering Sahoo (2007) in his article define “Shopping
tailored offering, providing customer service, mall: Driving Force in organized Retailing”.
orchestrating linkages, assigning accountability Advocated mall is the latest format in the
and evaluating performance. Dr. N.K. Sehgal organized retailing, a significant development
(2007) classified customer relationship has occurred in last couple of year due to change
management as abbreviation about consumers, in consumer profile and spending behavior,
marketing effectiveness, sales and market trends. increasing youth population with more
He advocated the result of a business is a purchasing power and less time is looking for
satisfied customer “in present era of cutthroat shopping a long with entertainment as one stop
competition, it is no longer enough to satisfy the option. Roulac (1994) concluded from his study
customers. The reason for this is pretty simple”. that in shopping malls, consumers can shop
If you would not take care of your customers, without the problems of any traffic congestions
your competitors definitely would”. So the firm or parking problems, or security concerns.
should keep pleasing customers and they will
keep coming back. Vandana Ahuja (2008) Objectives of the Study
analyzed CRM build long terms profitable  To identify the various categories of
relationships with chosen customers and getting Demographic factors and variables
closer to those customers with every point of impacting on CRM practices towards
contact with them. The author noted that a good organized shopping mall bengaluru city
CRM strategy aims at providing a win-win in India
platform for both the organization and the  To study the impact of Demographic
customer by paying adequate information to the factors CRM practices towards
process of adoption by focusing on options organized shopping mall bengaluru city
available to customers’ adequate promotion in India
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CRM practices in shopping malls

Determinant
 Consumer promotional tool
Gender  Customer services at malls
Age
 Activities of shopping Mall employees
Education
Income  Data mining
 Mall presentation
 Loyalty programs
 Customer satisfaction and retention

3. Research Methodology

In order to accomplish the objective of the sample of 150 But received 142 customers
study to collect data for this research study, both respondents of shopping mall in April 2013.
primary and secondary sources were used. The data was collected tying a survey and
Secondary data collected through the researcher- interpretation through to check the reliability of
reviewed articles related to research objective the data cronbach alpha test was applied in order
that appeared in the scholarly literature, key to find out the most preferable CRM practices
journals, reports, magazines and proceeding shopping malls view point Sample percentage
were systematically scanned for articles related method and one –way ANOVA analysis was
to the research topic. Primary data collected applied. All the analysis was carried out by
through an empirical investigation, online SPSS 16.0
survey was conducted, using a structure
questionnaire. RESEARCH HYPOTHESES

Present study consists and the H1: There will be significant variance in opinion
questionnaire two parts. Part-I questionnaire on CRM practices towards organized shopping
measures the distribution of participants on the mall among the Gender group
bases demographic characteristics and part-II
questionnaire measures CRM practices at H2: There will be significant variance in opinion
shopping mall on a five point scale ranging from on CRM practices towards organized shopping
(i) strongly disagree to (5) “strongly agree” mall among the Age group
Sample was collected on the basis of non-
probabilistic convenience sampling method. H3: There will be significant variance in opinion
The population in this study comprise of on CRM practices towards organized shopping
customer who loves shopping malls at mall among the Education
Bangalore. It is decided to choose in order to
collect the data a through online survey H4: There will be significant variance in opinion
structured questionnaire was farmed on CRM practices towards organized shopping
Questionnaires were distributed amongst the mall among the Income

International Journal on Global Business Management and Research

 Volume 2 ;Issue 2; March 2014 ; ISSN 2278 8425

Table: 1 Demographic Representation of the respondents

Demographics Number of respondents Valid Percentage

A) Gender
Male 85 59.9
Female 57 40.1
B) Age
17-25 46 32.4
26-35 47 33.1
36-45 28 19.7
46-60 13 9.2
Above 60 8 5.6
C) Education
Undergraduate 15 10.6
Graduate 57 40.1
Postgraduate 70 49.3
D) Monthly Income
Less than 10000 8 5.6
10000 - 20000 36 25.4
20001 - 30000 41 28.9
30001 - 40000 23 16.2
40001 - 50000 20 14.1
142 100.0
Total

4. Analysis and interpretation –

Demographic Profile sample.

A total number 142 respondent participated in

the survey the demographic characteristics the Almost 49.3 percent were postgraduate,
respondent (Table1) shows that the sample 40.1percent post graduate are reported that
consisted, majority of respondents percent 59.9 education level play more significant dominant
of male and 40.1 percent female respectively. to give preferences and exportations shopping
The respondents were mostly between the age malls at Bangalore in India. Most of the
26-35 years age group with 33.1percent and in respondents belong to the income groups of Rs
the age group of 36-45 years 19.7 percent this (10,000- 20,000) 25.4 percent and (30001,-
shows the majority of the respondents were in 40000) 16.2 percent the sample mostly
the group of middle age persons shows much for represents the middle class income preferred to
more influencing to come for shopping malls at visits shopping
Bangalore.

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Table: 2
One –way ANOVA test for significant difference between gender on the variable of CRM practices
towards organized shopping mall

Sum of Mean
N Mean Squares df Square F Sig.
Consumer Between Groups
.066 1 .066 .190 .663
promotional 142
Within Groups 85 3.4882 48.475 139 .349
Total 56 3.4439 48.542 140
Customer Between Groups 142 3.4706 .093 1 .093 .219 .640
Services
Within Groups 85 3.5521 58.973 139 .424
Total 56 3.6046 59.066 140
Activities of Between Groups 142 3.5729 .364 1 .364 .831 .364
shopping
Mall Within Groups 85 3.4617 60.873 139 .438
employees Total
56 3.5655 61.237 140

Data mining Between Groups 142 3.5029 .293 1 .293 .380 .539
Within Groups 85 3.3221 107.203 139 .771
Total 56 3.4152 107.495 140
Mall Between Groups 142 3.3590 .006 1 .006 .012 .912
presentation
Within Groups 85 3.8422 70.007 139 .504
Total 56 3.8557 70.013 140
Loyalty Between Groups 142 3.8475 .038 1 .038 .078 .781
programs
Within Groups 85 3.6338 67.940 139 .489
Total 56 3.6674 67.978 140
Customer Between Groups 142 3.6472 .936 1 .936 1.830 .178
satisfaction
and Within Groups 85 3.8196 71.087 139 .511
retention Total
56 3.9861 72.023 140

From this ANOVA table 2 The Analysis of shopping Mall employees, Data mining, Mall
Variance test is applied to test for significant presentation, Loyalty programs, Customer
difference among the different gender for each satisfaction and retention–do not differ
influencing factor separately. The results of the significantly among the respondents of the
ANOVA are given in the above table. It is found different age groups. Hence, the null hypothesis
from the results of ANOVA that influencing with respect to all the six influencing factors is
CRM practices factors Consumer promotional accepted.
tool, Customer services at malls, Activities of

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Table: 3 One –way ANOVA test for significant difference age on the variable of CRM practices towards
organized shopping mall

Sum of Mean
Squares Df Square F Sig.
Consumer Between Groups .663 4 .166 .474 .755
promotional
Within Groups 47.913 137 .350
Total 48.575 141
Customer Between Groups 2.627 4 .657 1.587 .181
Services
Within Groups 56.688 137 .414
Total 59.316 141
Activities of Between Groups .816 4 .204 .461 .764
shopping
Within Groups 60.672 137 .443
Mall
Total
employees 61.488 141

Data mining Between Groups 3.261 4 .815 1.072 .373

Within Groups 104.234 137 .761
Total 107.496 141
Mall Between Groups .926 4 .232 .457 .767
presentation
Within Groups 69.441 137 .507
Total 70.368 141
Loyalty Between Groups 1.133 4 .283 .579 .678
programs
Within Groups 67.001 137 .489
Total 68.134 141
Customer Between Groups .205 4 .051 .098 .983
satisfaction
Within Groups 71.926 137 .525
and
Total
retention 72.132 141

From this ANOVA table 3 the Analysis of mining, Mall presentation, Loyalty programs,
Variance test is applied to test for significant Customer satisfaction and retention do not differ
difference among the different age groups for significantly among the respondents of the
each influencing CRM practices factor different age groups. Hence, the null hypothesis
separately. The results of the ANOVA are given with respect to all the six influencing factors is
in the above table. It is found from the results of accepted.
ANOVA that influencing factors Consumer
promotional tool, Customer services at malls,
Activities of shopping Mall employees, Data

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Table 4 One –way ANOVA test for significant difference education on the variable of CRM
practices towards organized shopping mall

Mean
Sum of Squares df Square F Sig.
Consumer Between Groups .214 2 .107 .308 .735
promotional Within Groups 48.361 139 .348
Total 48.575 141
Customer Between Groups .115 2 .058 .135 .874
Services Within Groups 59.201 139 .426
Total 59.316 141
Activities of Between Groups .097 2 .048 .110 .896
shopping Within Groups 61.391 139 .442
Mall Total
employees 61.488 141

Data mining Between Groups 6.319 2 3.160 4.341 .015

Within Groups 101.176 139 .728
Total 107.496 141
Mall Between Groups 2.656 2 1.328 2.726 .069
presentation Within Groups 67.712 139 .487
Total 70.368 141
Loyalty Between Groups .296 2 .148 .303 .739
programs Within Groups 67.838 139 .488
Total 68.134 141
Customer Between Groups 2.521 2 1.261 2.517 .084
satisfaction Within Groups 69.610 139 .501
and retention Total
72.132 141

From this ANOVA table 4, it is observed that Some factor data mining which is significant
the sig calculated are .735, .874, .896, .015.069, hence, the hypothesis formulated is accepted and
.739, .084 for all the influencing CRM practices it is inferred that there is no significant
factors which are greater than the significant (P difference among the different educational
> 0.05) and so it is not significant. qualification of the respondents on the
influencing CRM practices factors in shopping
malls in Bangalore city.

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Table 5 . One –way ANOVA test for significant difference Income on the variable of CRM practices
towards organized shopping mall

Sum of
Squares df Mean Square F Sig.
Consumer Between Groups 1.888 5 .378 1.100 .363
promotional Within Groups 46.688 136 .343
Total 48.575 141
Customer Between Groups 1.089 5 .218 .509 .769
Services Within Groups 58.226 136 .428
Total 59.316 141
Activities of Between Groups 2.822 5 .564 1.308 .264
shopping Mall Within Groups 58.666 136 .431
employees Total 61.488 141
Data mining Between Groups 3.429 5 .686 .896 .486
Within Groups 104.067 136 .765
Total 107.496 141
Mall Between Groups 3.515 5 .703 1.430 .217
presentation Within Groups 66.853 136 .492
Total 70.368 141
Loyalty Between Groups 3.351 5 .670 1.407 .226
programs Within Groups 64.783 136 .476
Total 68.134 141
Customer Between Groups 3.873 5 .775 1.543 .180
satisfaction and Within Groups 68.259 136 .502
retention Total
72.132 141

From this ANOVA table 5 , it is observed that factors which are greater than the significant (P
the sig calculated are for all the influencing .363, > 0.05) Hence, they are insignificant and so the
.769, .264, .486, .217, .226, .180,CRM practices above stated null hypothesis has been accepted
Table: 6

NO. Hypotheses Results Tools

H1 There will be significant variance in opinion on CRM practices reject ANOVA
towards organized shopping mall among the Gender group one way

H2 There will be significant variance in opinion on CRM practices reject ANOVA

towards organized shopping mall among the Age group one way
H3 There will be significant variance in opinion on CRM practices reject ANOVA
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Table: 6

towards organized shopping mall among the Education one way

H4 There will be significant variance in opinion on CRM practices reject ANOVA

towards organized shopping mall among the Education one way

5.Conclusion data mining: The art and science of

The CRM practices is important customer relationship management.
variables in the success of the shopping mall.. Industrial Management & Data Systems,
The study has identified the variables
influencing customer satisfaction. It can be 100(5), 245-246.
understood consumer promotional tool, Darshan,D. Sarbrat, S & Piyush,K.S(2007):
customer services at malls and high variance in “The role of Dynamic capability and
explaining towards services offered by mall information technology in customer
retailers at shopping mall at Bangalore. The relationship management: a study of
retailers should see in implementing the Indian companies” Vikalpa, Vol.32,
Activities of shopping mall employees and No.4, pp.45-60.
loyalty programs variables for enhanced Devesh, M, Madhurima, D., Kalyan Kumar &
satisfying to go for shopping to build a long- Gautam Sinha(2007): “Customer
term relationship with services provided by mall Relationship Management (CRM) in
retailer by customers. Shopping malls retailers context of food Marketing – A Fuzzy
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