Project – Effect of customer relations responsiveness on organizational patronage. A study of MTN, Lagos state Nigeria.

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ABSTRACT

The study examined the effect of effect of customer relations responsiveness on organizational patronage using MTN, Lagos state Nigeria as case study. Four research objectives was used, namely: to examine the relationship between customer relations responsiveness and organizational patronage; to evaluate the impact of effective customer service on the loyalty and retention of customers; to assess how the speed and quality of response in customer relations influence customer satisfaction and repeat business; and to identify the role of customer relations responsiveness in enhancing the reputation and image of the organization. The target population consists of customers of MTN, Lagos, Nigeria. To select the needed samples for this study, the researcher used a total number of one hundred (100) customers of MTN, Lagos, Nigeria. The research hypotheses stated earlier was tested using Chi-Square Statistics. The study recommends that organizations should prioritize customer relations responsiveness as a key strategy in their operations. The study concluded that substantial evidence that customer relations responsiveness plays a pivotal role in organizational patronage.

CHAPTER ONE

INTRODUCTION

• Background to the Study

Customer relations responsiveness is a critical factor that influences organizational patronage. It refers to the speed and efficiency with which an organization responds to customer inquiries, complaints, or needs (Homburg, Müller, & Klarmann, 2011). The more responsive an organization is, the more likely it is to retain its customers and attract new ones. This is because customers value organizations that prioritize their needs and are quick to address their concerns (Homburg et al., 2011).

A study by Zameer, Tara, Kausar, and Mohsin (2015) found a positive correlation between customer relations responsiveness and organizational patronage. The study, which involved 384 respondents from various sectors, revealed that customers are more likely to patronize organizations that are responsive to their needs. This is because such organizations are perceived as being customer-oriented, which enhances customer satisfaction and loyalty.

Similarly, a study by Kumar, Batista, and Maull (2011) found that customer relations responsiveness significantly influences customer satisfaction, which in turn affects organizational patronage. The study, which involved 1,000 respondents from the UK service sector, revealed that customers are more likely to patronize organizations that they are satisfied with. This underscores the importance of customer relations responsiveness in enhancing customer satisfaction and, by extension, organizational patronage.

However, it is worth noting that the effect of customer relations responsiveness on organizational patronage may be moderated by other factors. For instance, a study by Homburg, Koschate, and Hoyer (2005) found that the effect of customer relations responsiveness on organizational patronage is stronger in high-involvement purchase situations than in low-involvement purchase situations. This suggests that the importance of customer relations responsiveness may vary depending on the nature of the purchase situation.

Despite the positive correlation between customer relations responsiveness and organizational patronage, some studies have found that too much responsiveness can be detrimental. For instance, a study by Dong, Evans, and Zou (2008) found that excessive responsiveness can lead to customer dissatisfaction and reduced organizational patronage. This is because excessive responsiveness can be perceived as intrusive and annoying, which can deter customers from patronizing the organization.

Furthermore, while customer relations responsiveness generally has a positive effect on organizational patronage, it is important for organizations to strike a balance. Too little responsiveness can lead to customer dissatisfaction, while too much can be perceived as intrusive. Therefore, organizations should aim to be responsive to customer needs without being overly so. Further research is needed to determine the optimal level of customer relations responsiveness.

• Statement of the Problem

The problem of customer relations responsiveness and its effect on organizational patronage is a significant issue in the business world. According to a study by Kumar and Reinartz (2012), customer relations responsiveness is a key determinant of customer loyalty and, consequently, organizational patronage. However, despite its importance, there is a lack of comprehensive understanding and empirical evidence on how customer relations responsiveness directly impacts organizational patronage.

The issue is further complicated by the fact that customer relations responsiveness is a multifaceted concept. As noted by Zeithaml, Parasuraman, and Berry (1990), it involves not only timely and accurate responses to customer inquiries but also proactive measures to anticipate and address customer needs. Therefore, the effect of customer relations responsiveness on organizational patronage may vary depending on the specific aspect of responsiveness being considered.

Another problem is the lack of consensus on the measurement of organizational patronage. While some studies, such as that by Oliver (1999), use repeat purchase behavior as a measure of patronage, others, like the study by Dick and Basu (1994), consider a combination of purchase behavior and attitudinal loyalty. This inconsistency in measurement makes it difficult to accurately assess the effect of customer relations responsiveness on organizational patronage.

Furthermore, the role of contextual factors in moderating the effect of customer relations responsiveness on organizational patronage is not well understood. For instance, the study by Ladhari (2009) suggests that the impact of responsiveness may be stronger in high-contact service industries than in low-contact ones. However, more research is needed to confirm these findings and to explore other potential moderating factors.

The problem is also evident in the lack of practical guidelines for businesses. While the importance of customer relations responsiveness is widely recognized, there is little guidance on how businesses can improve their responsiveness to enhance organizational patronage (Homburg, Jozić, & Kuehnl, 2017).

The effect of customer relations responsiveness on organizational patronage is a complex issue that requires further research. The lack of empirical evidence, the multifaceted nature of responsiveness, inconsistencies in the measurement of patronage, the role of contextual factors, and the need for practical guidelines are all aspects of the problem that need to be addressed.

• Aim and Objectives of the Study

The aim of the study is to examine the effect of customer relations responsiveness on organizational patronage. The specific objectives of the study are:

1. To examine the relationship between customer relations responsiveness and organizational patronage.
2. To evaluate the impact of effective customer service on the loyalty and retention of customers.
3. To assess how the speed and quality of response in customer relations influence customer satisfaction and repeat business.
4. To identify the role of customer relations responsiveness in enhancing the reputation and image of the organization.

• Research Questions

The research questions are stated below:

1. What is the relationship between customer relations responsiveness and organizational patronage?
2. How does effective customer service impact the loyalty and retention of customers?
3. In what ways does the speed and quality of response in customer relations influence customer satisfaction and repeat business?
4. What role does customer relations responsiveness play in enhancing the reputation and image of the organization?

• Research Hypothesis

The hypothetical statement of the study is buttressed below:

Ho:  Customer relations responsiveness has no significant impact on organizational patronage.

H₁:  Customer relations responsiveness has significant impact on organizational patronage.

• Significance of the Study

The significance of this study lies in its potential to provide a comprehensive understanding of the impact of customer relations responsiveness on organizational patronage. In today’s competitive business environment, customer relations have become a critical factor in determining the success or failure of an organization. By examining the effect of customer relations responsiveness, this study could provide valuable insights into how organizations can improve their customer relations strategies to increase patronage.

Secondly, the study could help organizations identify areas of weakness in their customer relations responsiveness. By understanding the specific aspects of responsiveness that most significantly affect patronage, organizations can focus their efforts on improving these areas. This could lead to more effective use of resources and ultimately, increased patronage.

Thirdly, the study could contribute to the existing body of knowledge on customer relations and organizational patronage. Despite the importance of customer relations in business, there is still much to learn about the specific ways in which customer relations affect patronage. This study could fill some of these gaps and provide a more complete picture of the relationship between these two factors.

Fourthly, the findings of this study could have practical implications for organizations. If the study finds a strong link between customer relations responsiveness and patronage, organizations might be encouraged to invest more in customer relations training and development. This could lead to improved customer service, increased customer satisfaction, and ultimately, increased patronage.

Fifthly, the study could also have implications for policy makers. If the study finds that customer relations responsiveness significantly affects patronage, policy makers might consider implementing policies that encourage organizations to improve their customer relations responsiveness. This could lead to improved customer service standards across the industry.

Lastly, the study could also be significant for customers. By shedding light on the importance of customer relations responsiveness, the study could empower customers to demand better service from organizations. This could lead to improved customer experiences and increased customer satisfaction.

• Scope of the Study

The study examines the effect of customer relations responsiveness on organizational patronage. The study is limited to MTN, Lagos State, Nigeria.

• Operational Definition Terms

1. Effect: In the context of this study, ‘effect’ refers to the outcome, result, or change that occurs as a result of a particular action or set of conditions. It’s the impact or influence of one thing (in this case, customer relations responsiveness) on another (organizational patronage).
2. Customer Relations Responsiveness: This refers to the speed, efficiency, and manner in which an organization responds to customer inquiries, complaints, or needs. It’s a measure of how quickly and effectively a company can provide solutions to its customers, which can greatly influence customer satisfaction and loyalty.
3. Organizational Patronage: This term refers to the support or sponsorship that customers provide to an organization by continually using its products or services. It’s a measure of customer loyalty and can be influenced by various factors, including the quality of customer service and the responsiveness of customer relations.

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Project – Effect of customer relations responsiveness on organizational patronage. A study of MTN, Lagos state Nigeria.