The Relationship between Customer Relationship Management and Using Decision to the Product Service of Customers: A Case Study in Vietnam

The results of scientific research are to carry out aimed at analyzing and defining the relationship between customer relationship management (CRM) and using decision to the product service of customers in Vietnamese service businesses. The qualitative and quantitative research methods were used and the results showed that there are 5 factors having an impact on using decision to the product service of customers as followings: Competence, Convenience perception, Requirement & feedback management, Customer service, and Tangibles. Four hundred people with 31 observed variables were surveyed targeted at determining the factors affecting using decision to the product service of customers in Vietnamese service businesses. The purposes of 3 objectives were done as followings: First, identify the factors affecting using decision to the product service of customers in Vietnamese service businesses; Second, determine the order of priority impact level of the factors affecting using decision to the product service of customers in Vietnamese service businesses; Third, propose solution groups to enhance using decision to the product service of customers in Vietnamese service businesses.


Introduction
To ensure success in today's highly competitive market environment, companies need to meet the expectation of customer.In this context, customer relationship management plays a very specific role because customers' satisfaction makes their decision based on quality service of business.Customers will continue using the service and will use more if their need is met (Bitner & Hubbert, 1994).Maintaining good relationships with existing customers and retaining loyal customers are very difficult, particularly businesses must know what to do for customers to trust and introduce new and potential customers and making customers unhappy or complaining are unavoidable.Therefore, companies are constantly investing to customer relationship management (CRM) to build customers' loyalty.Customer relationship management (CRM) today has become a factor forming a chain of complete service products.Customers are increasingly becoming more intelligent and picky, therefore, customer care before, during and after sales have beome especially important.If customer service is well done, "let your guests enjoy from the beginning to the end", they return or even introduce new customers.Customers have been interested in not only products and services but also the quality of customer care so far.
According to Yahoo Small Business Advisor (11/2015), 63% of businesses were investing more in customer care to boost sales and increase competitiveness index.In practice, it is a good and correct strategy, especially for small businesses.With all business models, whether B2B, B2C or C2C, the numbers and objects always play a role in the tremendous success of the enterprise.Therefore, the financial investment in professional customer relationships management care (CRM) is completely suitableinvestment activities.
According to a study by the Asian retail Association, retaining existingcustomers is also an important task.Findings of this organization, in the past 3 years (2012, 2013 and 2014), shows that the sales of businesses in one month mainly from existing customers (up 72.3%), and cost to sell 1 item for existing customers and fewer from 9 to 22 times than finding new customers.According to statistics from the Harvard Business School of Harvard University (2014), when the customer retention rate increased by 5%, profits would increase 25-95%.Consequently, many foreign large corporations with many forms and huge investment budget for customer relationship management (CRM) to keep the existing customers, turn new customers into loyal customers that would create pressure for Vietnam businesses right on the home market.

Relationship between Customer Satisfaction and Service Quality
Customers are now demanding products and services with higher qualities (Amiri Aghdaie et al., 2012).Service quality and customer satisfaction are two of the most important service outcomes (Gallan et al., 2013;Riasi, 2015), similarly the customer satisfaction with a product and the customer perceived quality of a product can be considered as important determinants of a good product (Riasi & Pourmiri, 2015).Service quality research in the context of developing countries is very important (Sumaedi et al., 2012) and using CRM can be helpful in order to achieve higher levels of perceived quality and customer satisfaction.
Customer satisfaction is an emotional response of customers to their experience or a product or service.Nomally, service businesses often believe that service quality is customer satisfaction and customers will continue using the service and will use more if their need is met (Bitner & Hubbert, 1994).According to (Taylor & Croin, 1992, 1995) inherited the customer service theory of Parasuraman et al. (1985) and later several of their studies and theories were also appreciated by many researchers.Taylor & Croin (1992) in Servper l model suggested that factors affecting satisfaction and using decision of the products and services customers including, Reliability, Responsiveness, Safety, Competence and Tangibles.In studies of customer service by Ajay & Valarie (1993) also stated the same opinion, but they emphasized the factors affecting using decision of the products and services customers comprising competence, convenience perception, requirement and feedback management, customer service.In the Bernd & Patricia (1997) also shared that point of view.They believed that when the concept of customer relationship management in business is mentioned, it is often interpreted as a regular communication department, serving different types of customers; including facing with demanding or irritable, angry and even rude customers.Therefore, customer service department has to carry out and complete these tasks.As Valarie & Leonard (1985) highlight the competence.Competenceis measured by the variables of "knowledge", "degree", "professional" and "service attitude".They supposed that businesses should have plans to train personnel of this department professionally and brilliantly to be able to satisfy any discerning customers.

The Factors Affecting Using Decision of the Products and Services Customers
According to Eugen & Barbara (1996) added if customer relationship management is good, it deeply understands and meets customer needs, giving them affection, trust, limiting complaints.However, when customers complain, they must know how to listen, solve problems logically.The staff does not be afraid and uncomfortable to deal with customers' complaints; they have to thank customers for their choice of business products and services.Customers are really interested and want products and services better then they openly speak out their thoughts.No business is perfect; therefore, espressing appreciation and market demand of customers' feedback is the key to build good and long-term relationships with the customers and (Kordupleski el al., 1993) also pointed out and affirmed that requirement and feedback management is considered especially valued.In reality, the authors demonstrated in many enterprise organizations, the spirit of working in the business, customer service or call center is low, the customer service staff will feel discouraged and in concerned, the resulting business will decline.Therefore, the construction of a staff who loves their work, they will laugh with customers at each call or contact naturally that makes the whole process improve.There are many theories, such as behavioral theory of (Chann, 2001;John, 2002;Ajzen & Fishbein, 1975); Theory of Planned Behaviour of Ajen (1985); Reasonable action theory of Brown (1988) and the results of Laitamaki & Raymond (1997) also mentioned the above issued.
It can be concluded that the factors affecting using decision to the product service of customers Vietnamese businesses focus primarily on the following factors: Competence, Convenience Perception, Requirement and feedback Management, Customer service, and Tangibles.
(1) Convenience Perception is the value perception of usefulness, comfort, ease and convenient that the supplier gives the customers.These values are intangible value to help arouse the interest and attention of others (Kordupleski et al., 1993).
(2) Customer service is a process to provide the service to customers before, during and after a purchase, such as counseling, referrals, support experience or trial, reimbursement, maintenance, warranty or troubleshoot incidents that may occur in order to limit the damage to its lowest level for the client Philip Kotler (2011).Customer service is also commonly known as the cultural business of many organizations (Boulding, 1997).
(3) Requirement and feedback Management is a process for receiving feedback, collecting information; relieving the anger of customers; analyzing and assessing the impact of complaints so that identify measures in order to convince customers (Ajay & Valarie, 1993).Requirement and feedback Management is a try to outdo in wits that the customers are winners (Bernd & Patricia, 1997).
(4) Tangibles are the set of elements as tangible evidence of physical material, equipment, people and information materials, service personnel costume, support equipment for the provision of services (Cronin & Taylor, 1992, 1995).
( 5) Competence refers to qualifications to perform the service, the ability to manifest when serving staff with customer contact employees directly performing services, research capabilities to capture information related need for customer service.In other words, the assurance of qualifications, the attitudes of staff and their ability create trust and confidence in clients.The spirit and enthusiasm of the staff is always ready to serve will ensure rapid implementation and quality (Cronin & Taylor, 1992, 1995)

Research Model
Based on the results of scientific research approach above, we summarized the CRM frame model comprising five independent variables and one dependent variable (see Figure 1.).

Hypothesis
H1: "Competence" affects using decision to the product service of customers in Vietnamese service businesses.H2: "Convenience Perception" affects using decision to the product service of customers in Vietnamese service businesses.
H3: "Requirement and feedback management" affects using decision to the product service of customers in Vietnamese service businesses.H4: "Customer Service" affects using decision to the product service of customers in Vietnamese service businesses.
H5: "Tangibles" affects using decision to the product service of customers in Vietnamese service businesses.

Methods of Research
The two major research methods, qualitative and quantitative research are focused, specifically; the research process has three stages.
Stage 1, Based on theory and the related results mentioned the above, qualitative research method was used for group discussing and leading expert consultating to select the variables and observed variable groups.
Stage 2, Based on the factors affecting using decision to the product service of customers in Vietnamese service businesses, survey questionnaires were designed for getting the feedback from 400 buyers in HCMC and Hanoi.The research model includes 5 scales, 31 observed variables (questionnaires), using 5-point Likert scale (Likert scale with a 5-point), Distance value = (Maximum -Minimum) / n = (5 -1) / 5 = 0.8: 1. Completely disagree; 2. Disagree; 3. No opinion / Normal; 4. Agree; 5. Totally agree.Survey results were entered SPSS 20.0 and Cronbach's Alpha coefficient was used to test reliability of the scale.
Stage 3, after testing the reliability using Cronbach's alpha coefficient, Exploratory Factor Analysis-EFA was analyzed to shrink and summarize the data of the scale.This method is based on extraction ratio factor (Eigenvalue), under which only those factors having ration (Eigenvalue) greater than 1 will be kept, those smaller than one will not show information better than origin variable because after standardizing, each original variance is 1.The method of extracting the main components (Principal components) and original method of factor rotation (Varimax Procedure) were used to minimize the number of variables that have large coefficients for the same factor, which increases explaining the factors.The above results are used to analyze multiple linear regression aimed at testing the assumptions of the model, in which consider the impact level of factors using decision to the product serviceof customers in Vietnamese service businesses.The statistical results show that the sex ratio of those surveyed is not too different.However, ages, educational level of those surveyed are difference.Overall, the results of research are normal for the respondents in this study are diversified and random.Statistical results showed that banks and retaile businesses are the enterprises that loyal customers to choose the most (over 20%), the most are banks with 25.7%; Beauty and Health care and other businesses are not regularly used, accounted for a very low (under 10%) in which Beauty and Health care is 6.0 %.Customers know mainly through newspapers, magazines, TV, sales promotion activities, activities of propaganda and acquaintances.Newspapers, magazines are the information channel with the highest proportion of 20.6%, whereas the lowest is through communication and charity activities with 13.8%.In fact, Vietnamese business charity activities are poor.According to statistical results, most customers are quite loyal to enterprises, most of them have used the product service of the business from 1 to 3 years (53%) and the number of users of products and services in a year up to 5 to 6 times, accounted for 51.5% and using products over 6 times, accounted for 21.8%.They are very high percentage that expressed the loyalty of the customer to the enterprises.The average results of the scales are rather low that the average value is from 2:23 to 3:51.The lowest in the scale is "customer service" with variables ranging from 2:23 to 3:22.It can be seen that customers do not really appreciate the enthusiastic interest of the staff, the support and gratitude from business that demonstrates customer relationship management in Vietnamese service businessesis weak.This is a common drawback of Vietnamese service businesses.

Reliability Analysis
4.2.1 The Tesing of Cronbach's Alpha The results show that the scale has a high accuracy with Cronbach's alpha coefficient > 0.7 and the correlation coefficients of the total variables measuring factors meet the allowed standard (> 0.3), the only scale "Convenience Perception" of "STT 6-This business pays attention of utilities for customers in transaction or in the meantime such as free wifi, water, magazines etc" should be eliminated "because correlation coefficients of total variable is 0.281 <0.3.After rejecting, the all variables are acceptable.The results of EFA-Exploratory Factor Analysis in the above table shows the total variance extracted is greater than 50% 66 439%, this means that the deduction factors would explain 66.439% for model, the remaining of 33.561% will be explained by other factors.Extraction ratio factor (Eigenvalue) is greater than 1that should be retained.Through EFA-Exploratory Factor Analysis, the scale "convenience perception", observed variables "STT4-this business has good 24/7 hotline services" Factor Loading < 0.55 should have been excluded from the model.After reentering running the EFA, the model was fully consistent with the data, calculated into 5 groups of factors which may be use these results for a multiple regression analysis.

Analysis of Multiple Linear Regressions
Methods of regression analysis is the study of the influence degree of one or more independent variables to one dependent variable to predict outcome variables based on the known values of the explaining variables.To measure the impact on using decision to product service of customers, analysis and multiple linear regression are used to test the hypotheses of models with 5-element group which is independent variables to measure the impact level of factors affecting on using decision to product service of customers.The study results show that the influence degree of these factors reflected multiple regression coefficients.To compare the effects of the factors, regression coefficients standardized are used for this coefficient does not depend scale.Thus, using the regression equation was standardized to analyze the extent of factors influence the using decision to product service of customers.The test results have value F = 132 519 Sig.= 0.000 <0.05 shows the building model is consistent with the data set and the variables included in the model are related to the dependent variable.Generally, regression analysis with selected reliability is 99%, corresponding to the selected variables are statistically significant at the p <0.01; Results showed that all variables are satisfying demand.Verification of conformity of the model showed multicollinearity phenomenon does not violate (VIF <10).Results of regression analysis showed that the factors influencing the using decision to product service of customers and the degree of priority as follows: (1) "Tangibles": β = 0.397; (2) "Requirement and Feedback β = 0.319; (3) "Customer Service", β = 0.302; (4) "Competence": β = 0.264; ( 5) "Convenience Perception", β = 0.159.The regression equation has the following form: Y = 0,397X1+0,319X2+0,302X3+0,264X4+0,159X5.In conclusion, there is a close relationship between the "Relationship Management Customer Care" and using decision to service products of customers.Results of this research are the basis of the recommendations proposing solutions to improve using decision to service products of customers.

Conclusion
CRM has been a key element of the modern marketing in recent years.All around the world companies in different sizes have been trying to utilize CRM system to help them with their competitive businesses.On the other hand because of rigorous competition, not only acquiring new customer is becoming difficult but also holding existing customer is a quite challenging task.
The results of this study showed that there are five factors involving using decision to service products of customers in Vietnamese service business and the impact degree of each factor is different, in order respectively: "Tangibles", "Requirement and feedback Management", "Customer Service", "Competence" and "Convenience Perception".
From the empirical analysis what has been stated above, we can know there is a close relationship among the factors of variables "relationship management customers" and decision to service products of customers in Vietnamese service business.

Figure
Figure 1.Research model

Table 1 .
Statistical results

Table 2 .
The information channels that customers know

Table 3 .
Service using frequency

Table 6 .
Exploratory factor analysis

Table 7 .
Exploratory factor analysis

Table 8 .
Summary model

Table 10 .
Factors affecting the using decision to service productof customers