What Helps Organizations to Improve Their Performance - Assignment Example

Marketing research is an integral part of management and organizations look to use it as a method through which they are able to plan their future strategies. Conducting research helps companies to identify the different directions based on which their performance can be enhanced. The increase in the degree of competition has made it mandatory for all organizations whether big or small to carry out activities associated with marketing research. Marketing research used by organizations is either qualitative or quantitative depending on the purpose for which the research is done. This paper looks towards evaluating the manner in research helps organizations to improve their performance and shows the differences that exist between qualitative or quantitative research. This will help to understand the different type of research and also highlight which form of research in used in which situation. Before moving on it is imperative to understand marketing research. Marketing research is defined as the systematic and objective analysis of information related to the product so that the organization is able to take valuable decisions which will help to multiply the business objectives (Yoon & Jain, 2008). Thus research looks towards including a lot of things and based on it looks towards evaluating the performance of the organization. Qualitative research is based on understanding human behavior and looks towards determining the underlying reasons for changes in human behaviour (Luntz, 2010). Quantitative research looks towards examining the exploratory side where they look towards drawing important findings based on the statistical data which has been provided to them. The different form of research focuses on different aspects and looks towards working out the manner in which organization performance gets influenced due to different factors. A research in the direction shows that qualitative research helps companies to turn their market intelligence as it focuses on understanding human behaviour which thereby helps to understand the aspect which determines human changes (Wee, 2001). In comparison to it quantitative research focuses on finding the final result based on the data which is provided and deals with the statistical aspect which thereby doesn’t look towards understanding the manner in which the process is attained. This has made organizations use both the method of research as quantitative research helps to arrive at the final figure which they look to achieved and after the final results are determined using the qualitative results the process is determined through which the organization will able to achieve the final goals (Wee, 2001). Similarly, a research conducted in the developing country like Nigeria highlighted that the manufacturing sector looks to use both the qualitative and quantitative research as both looks to stress on different factors which thereby ensures that the final goal which is achieved is better (Mustapha, Ku & Goh, 2009). Since, both type of researches focuses on different aspect and helps the organization to be better prepared to deal with the different level of requirements through research it ensures that overall efficiency is gained and will help to improve the chances of achieving the larger picture. Another study highlights that quantitative research when compared to qualitative research is loosing relevance especially when it comes to focus groups as it helps to find the underlying human behaviour and the ways it affects the outcome of any decision making (Frank, 2008). This is primarily on the backdrop that the final figure can be achieved if the organization looks towards developing the process which will ensure that the goals are achieved. Focusing on qualitative research provides that scope through which organization laid stress on the process which finally helps to accomplish the goals of the business. A research shows that the different developments which have taken in the field of qualitative research have made organization use more in comparison to quantitative research (Mahoney, 2010). This has been backed by quantitative research which provides the rationale behind every decision and highlights the manner in which the set theory is achieved through the use of qualitative research. This will help to provide feasibility of the new option through which help to develop the required fundamentals through which the organization will be able to achieve better results. The use of qualitative and quantitative research in different directions has provided an opportunity through which organizations are able to use it based on their requirements. One of the major differences between qualitative research and quantitative research is that qualitative research focuses on objectivity and looks to examine human behaviour whereas quantitative research focuses on statistics and looks to determine the final results (Inscite Research, 2009). This thereby makes the user to use the research for different purposes. Another important difference between the two is that qualitative research is subjective and rich as it helps to presents the reason for every behaviour whereas quantitative research focuses on statistics and data and is more objective (Inscite Research, 2009). The difference between the two with regard to the behaviour results in the research being used for different purposes and looks towards evaluating the performance of organization based on different factors. Quantitative research is more structured and follows a particular pattern like in a questionnaire where it looks to gather large information from a large number of respondents so that the statistical decisions based on it is proper (Inscite Research, 2009). Qualitative research on the other hand is unstructured and looks towards jumping from one question to another depending on the situation. There is no predetermined format and looks towards understanding the human behaviour by asking same questions in different manner so that human behaviour can be better understood. This thereby helps to check the manner in which research is carried out and helps to improve the overall effectiveness as it studies the human behaviour in details and provides the required changes through which their performance can be enhanced. Qualitative research facilitates comparison with other industries as the research focuses on the qualitative aspect which thereby provides an opportunity through which the performance can be compared with other organization (Reason & Rowan, 2001). This is a difficult aspect in case of quantitative research comparison is difficult because of difference in data which reduces the value of comparison. Qualitative research is less reliable compared to quantitative research because quantitative research can be validated and tested again and again (Reason & Rowan, 2001). The test will show similar result as the test is based on some model and using the same data the result will be similar. Qualitative research on the other hand uses human behaviour which is different on every occassion so using the same situation might provide different results. This reduces the reliability of the research as getting different results creates doubt over the findings form the research and cannot be validated for all situation (Reason & Rowan, 2001). Quantitative research also provides the option of compressing the final results to a fewer option and is entirely due to the fact that the data can be compressed and area which is of importance can be used to gauge the results (Reason & Rowan, 2001). This is not possible in case of qualitative research as the entire research has to focus on understanding human behaviour and in no way things can be left as it will make it difficult to understand human behaviour and complicate the entire matter. This will also make it difficult to understand the human behaviour as using shortcuts or omitting certain aspect of human behaviour will provide an incorrect understanding of human behaviour. The paper thereby shows that qualitative research and quantitative research provides different benefits to the organization. Organizations based on their requirements look to choose one method over the other and looks towards ensuring that the research method which has been used provides corrective results. This paper thereby evaluating the manner in research helps organizations to improve their performance and shows the differences that exist between qualitative or quantitative research. This helps to understand the different type of research and also highlight which form of research in used in which situation and will thereby improve the chances of improving the performance of the organization. References Frank, L. 2008. Focus Group Research in American Politics. Voices of Victory, 1, Retrieved on April 7, 2013 from http://www.pollingreport.com Inscite Research. 2009. The Market Research Resource Kit for Small Business Owners. Retrieved on April 7, 2013 from http://www.insciteresearch.com Luntz, F. 2010. Qualitative Research Analysis. Retrieved on April 7, 2013 http://goliath.ecnext.com/coms2/gi_0199-6494016/Bridging-the-gap-between-research.html Mustapha, U., Ku, H. and Goh, S. 2009. Research Design for Investigation of Nigeria Manufacturing Management, Journal of Rough Sets and Knowledge Technology. 5589 (2), Retrieved on April 7, 2013 from http://www.springerlink.org Mahoney, J. 2010. World Politics. The New Methodology of Qualitative Research, 62 (1), Retrieved on April 7, 2013 from http://www.projectmuse.com Wee, T. 2001. The use of marketing research and intelligence in strategic planning: key issues and future trends. Marketing Intelligence and Planning, 19 (4), Retrieved on April 7, 2013 from http://www.emeraldinsight.com Yoon, C. and Jain, A. 2008. How to conduct marketing research for information products and services. Retrieved on April 7, 2013 from http://www.ev-114859-201-1-DO_TOPIC.html Part B Customer value has become an important component for marketers as intensifying competition has stressed the importance of building healthy customer relation so that they can be retained (Coltman, 2007). The era has come when superior customer satisfaction leads towards competitive advantage and a weapon which will help to retain customers and ensure long term profits for the business (La and Kandampully, 2004). This has increased the importance of retaining customers so that they remain loyal to the brand and will have a positive impact on the performance of the organization. This paper evaluates the linkage between customer retention and profitability for organizations. In addition to it the paper also evaluates the manner in which different type of loyalties can be achieved and the manner in which the loyalty of customers can be measured. This will thereby help to develop strategies through which the business will be able to use its resources and maximize the chances of delivering better performances. Organizations develop strategies to attract customers so that they can take different advantage and prolong their business. Organizations have diverted their attention to maximizing customer value as it will help to deliver better performances on a sustained basis (Gummesson, 2002). The process also entails the restructuring of the firm’s process and operations which helps to deliver superior customers value and acts as a differentiator from the competitors (Cravens and Piercy, 2009). Studies conducted in the direction highlights that customer value helps to create a positive impact as it leads towards increased satisfaction and thereby provides an opportunity through which they are able to have a pool of loyal customers (Ulaga and Eggert, 2006). One of the ways which determines the customer loyalty towards a product or brand is by determining the manner in which a customer looks to purchase the same products and services again and again. This is determined by the percentage of customer share which looks to repeat their purchase again and again. This is determined by the transaction and relationship value which the customers receive based on the perception of the customer towards the product or services (Athanassopoulos, 2000). This is measured when the customer perceives that the value which they have received is more than the actual money that has been paid for the product or services. This is determined based on the customers demand and preference for a product or services which helps to determine the utility that the customers get from consuming the product or services. The more the utility for the customer the higher will be the satisfaction level of the customers which will be demonstrated through repeat purchases for the same product or services. The satisfaction level of the customers is largely measured through the repeated purchase that the customer is involved in. This will have a direct effect on the profitability of the organization as having loyal customers who purchases the same product again and again will help the marketers to focus on other segment of the targeted customers. This will also reduce the cost of attracting the same customers. To be able to retain customers and ensure repeat purchases the organization has to regularly develop their core products by adding different benefits and features so that the marginal utility for the customer increases every time the customer purchases the product (Lindgreen and Wynstra, 2005). This will arouse the required curiosity which will make the customer purchase the same product again and again and help to develop a pool of loyal customers. Another important aspect which will help to determine the customer loyalty is through the creation of customer value (Ham, 2003). This will translate into increases sales for the business even when the organization is not spending heavily on marketing of their products. This will translate into customers who will purchase the same product and will look towards developing value for the customers so that they feel satisfied. The organization while looking to do so also have to understand the intention of the people related to repeat purchase. This will help to determine the different factors which have relevance on determining the repeat purchase for the customers and will also identify the different reasons which has made customer purchase the same products or services (Joo and Sohn, 2006). The effect will be positive as it will enable the organization to multiply profitability as using it as a measure the organization will be able to work on the fundamentals through which profits maximizes and customers are retained. Organizations also take help of customer satisfaction index which looks to evaluate the different factors which corresponds to higher degree of customer satisfaction (Woo and Ennew, 2004). The index looks to evaluate the different alternatives and factors which will help to find out the different factors which accumulates towards the overall satisfaction level of customers. Conducting a research based on those factors provides a direction for the management as based on it the management can look towards developing a pool of loyal customers. Identification of the factors which have relevance on customer satisfaction will provide an opportunity through which the organization can develop strategies to attract customers and retain them for longer period of time. This will also help to reduce cost and will provide an opportunity through which overall measure of customer satisfaction increases. Organizations also look towards finding out the different mechanism which will help to enhance the satisfaction level of customers because it helps to reduce the cost of acquisition of new customers; develops a stream through which the business will be able to earn guaranteed profits over a longer period of time; customers tend to increase their purchases which will thereby have a direct relationship on revenues and ensure that it grows; retained customers might also attract other customers as retained customers will spread positive things about the organization and help to earn new customer; and retaining customer ensures that the customers become less price sensitive which will even ensure that the business is able to generate same revenue or higher even when the cost goes up. Thus, the different factors contribute towards the increase in the proposition of business to improve their overall efficiency and make the organization rely heavily on attracting and retaining customers. This is determined based on the customers demand and preference for a product or services which helps to determine the utility that the customers get from consuming the product or services. The more the utility for the customer the higher will be the satisfaction level of the customers which will be demonstrated through repeat purchases for the same product or services. This has resulted in determining different methods through which customer’s satisfaction can be measured and looks towards examining the overall strategy through which organization can gain. Organizations are also found to take different research in this direction which looks towards using questionnaire so that the overall satisfaction level of customers can be understood. Questionnaire is more structured and follows a particular pattern like in a questionnaire where it looks to gather large information from a large number of respondents so that the statistical decisions based on it is proper (Inscite Research, 2009). This thereby helps to check the manner in which research is carried out and helps to improve the overall effectiveness as it studies the human behaviour in details and provides the required changes through which their performance can be enhanced. This provides the organization with the direction through which customer loyalty is better understood and helps to develop strategies which will increase the manner in customer value is enhanced. This paper highlights the linkage between customer retention and profitability for organizations and the different strategies that organization use to determine the satisfaction level of customers. In addition to it the paper also evaluates the manner in which different type of loyalties can be achieved and the manner in which the loyalty of customers can be measured. This will thereby help to develop strategies through which the business will be able to use its resources and maximize the chances of delivering better performances. This has increased the importance of retaining customers so that they remain loyal to the brand and will have a positive impact on the performance of the organization. References Athanassopoulos, A. D. 2000. Customer Satisfaction Cues to Support Market Segmentation and Explain Switching Behavior. Journal of Business Research, 47, 191-207. Coltman, T. 2007. Why build a customer relationship management capability?. Journal of Strategic Information Systems, 16, 301-320 Cravens, D. W. & Piercy, N. F. 2009. Strategic marketing. 9th ed. New York: McGraw-Hill Gummesson, E. 2002. Practical value of adequate marketing management theory. European Journal of Marketing, 36, 325-349 Ham, C. L. 2003. Analyzing the Value of Service Quality Management: Gaining Competitive Advantage. International Journal of Value-Based Management, 16, 131-152. Inscite Research. 2009. The Market Research Resource Kit for Small Business Owners. Retrieved on April 7, 2013 from http://www.insciteresearch.com Joo, Y. G.. & Sohn, S. Y. 2006. Structural equation model for effective CRM of digital content industry. Expert Systems with Applications, XXX, 1-9. La, K.V. & Kandampully, F. 2004. Market oriented learning and customer value enhancement through service recovery management. Managing Service Quality, 14, 390-401 Lindgreen, A. & Wynstra, F. 2005. Value in business markets: What do we know? Where are we going?. Industrial Marketing Management, 34, 732-748. Ulaga, W. & Eggert, A. 2006. Relationship value and relationship quality – Broadening the nomological network of business-to-business relationships. European Journal of Marketing, 40, 311-327 Woo, K. S. & Ennew, C. T. 2004. Business-to-business relationship quality-An IMP interaction-based conceptualization and measurement. European Journal of Marketing, 38, 1252-1271. Read More