Great KB7032 Project O I M Assignment Sample

Great KB7032 Project O I M Assignment Sample


The current world is becoming a chaotic and affects all aspect of life as customers become more severe in their needs, expectations, desires and preferences etc.

Organization constantly realizes this issue by communicating and building effective relationship with them for better improvement of service quality (Kaur et al., 2015).http://Great KB7032 Project O I M Assignment Sample

This study will investigate or collect in-depth knowledge about relationship between customer knowledge and service quality. It can be done through undertake secondary approach within which different journal articles are undertaken to develop the proper knowledge about the study.

The reason behind to select this topic is that currently organization focused hard on developing or maintaining relationship with customer knowledge is increasing day-by-day. This create problem for firm in terms to make balances on their loyalty and need satisfaction.

That’s why this study will guide the individual firms that how firm can fulfill the needs of customers and make them loyal towards brand even in this competitive market where every firm bring out something new for securing maximum customers (Giovani’s et al., 2015).http://Great KB7032 Project O I M Assignment Sample

However, the study will focus on different variables including customer knowledge, customer relationship management and service quality etc. these variables guides to reader to understand whether customer knowledge has a major role to influences customer management relationship and improve organization service quality.

So, this study proved to be effective for addressing the following research questions:-

Research Questions

  • How customer education influences organization service quality?
  • How customer education supports building of strong customer-management relationship?
  • What are the challenges that organization faced with customer knowledge?
  • What are the best possible solutions to improve service quality and ensure customer engagement with firm?

Research Objective

In order to achieve the research question responses, it is must to develop objectives in order to address study on systematic way and identify the impact of customer knowledge over the improvement of service quality of product.

However, the objective may help to understand relationship of the variables over each other.

For instances, study identify how customer knowledge improve service quality and support the development of healthy relationship with customers. In respect to gain knowledge about these variables, there is need to undertake objectives and develop better understanding about the topic.

  • Understand the concept of customer relationship management
  • Identify the impact of customer knowledge and CRM on service quality
  • Identify the challenges that organization faced with customer knowledge
  • Suggest ways to improve Customer relationship management

Understand the concept of customer relationship management

As per the understanding of Tseng (2016), customer relationship management is identified as an approach that is used to manage the interaction of the company with its current and potential customers in the target market.

The CRM adopts the data analysis in relation to the customer’s history with the company in order to improve the relationship of the business with the organizational customers by focusing on the retention of potential customers and ultimately driving the organizational ales growth in an effective manner.

On the other hand, Bhat and Darzi (2016) depicts that customer relationship management is the strategy of business that goes beyond enhancing the transaction volume.

In this manner, the main objective of customer relationship management is to enhance the organizational revenue, profitability and customer satisfaction.

That is the reason, each and every company tries to achieve the CRM and for this, they also adopt several tools, methods, and technologies along with the procedures which are important to promote the relationship with potential customers in concern of increasing the sales of the company.

In addition to the above, Wail and Wright (2016) also analyses with the help of its research study in relation to the customer relationship management that CRM is important to manage the customer relationship.

In this concern, different software collects the information from the customer touchpoints at which the customers try to exchange their information like web forms and the surveys.

After that this collected information is displayed on a single dashboard. In a similar manner, Rahimi and Kozak (2017) demonstrate that the business data is given by the CRM solutions to the organizations for helping them in offering products or services which the customers need.

Organizations are also efficient to provide better customer services and give the facility to the sales team to up-sell and cross-sell more efficiently. At the same time, Cui and Wu (2016) also defines that the CRM is good for the close deals, retain the potential customers and developing the more clear understanding as who the company’s customers are.

It is also identified that there are different components as well as some subsystems which are involved by the CRM in order to perform the operations related to customer relationship in a perfect manner. In the same way, various functions are also performed by the CRM including manufacturing the customer services, marketing and field sales etc.

These all functions related to customer relationship management involve the customer’s participation directly or indirectly with the organization so that the service quality can be ensured at a significant level.

While concerning the CRM, Badan et al. (2017) represents that customer relationship management comprises several components that are important for the organization to manage its operations related to the customer relationship.

These components include the people management, lead management, sales force automation, customer services, marketing, workflow automation business reporting and the analytics etc.

In the critical discussion of the CRM, Hussain et al. (2015) defines that while developing the customer relationship with the customers, the organization usually focuses on three steps such as identifying mutually satisfying goals among the organization and the customers, develop as well as maintain the customer rapport and develop the positive feelings within the organization and among the customers.

At the same time, Ninimour and Sultana (2016) also suggests the customer relationship management pyramid model that is quite effective for the organizations in order to retain the customers and develop a close relationship with them.

In this way, the CRM pyramid model includes some important components such as technology, marketing, sales and support, a product that is offered by the organization and at the last, the customers which are most important for any organization.

In addition, organizations have to focus on its technologies that are used within the organization so that they can take a step towards the CRM. After that, they need to concentrate on its marketing strategies, its sales department and the support system so that they can be efficient to make the promotion in regards to its products and services in an effective manner.Great KB7032 Project O I M Assignment Sample 1

(Sourced: Sultana and Ninimour (2016)

At the same time, Sultana and Ninimour (2016) defines that as per the pyramid model of CRM, organization’s next focus areas is the organizational offerings such as products and programs that are important component for any organization in developing the customer relationship and it is because customers will use the product and after that, they will set their mindset in regards of the products so it is important that the product is proper and sustainable for the customers as per their requirements.

In the end, the customers are kept in the pyramid model as they come at the end because an organization has the requirement to cross all the stages than after they can be capable to fulfill the customer’s requirement in an effective manner.

Thus, this CRM pyramid model is important for the organization in order to develop the customer relationship between the organization and the customers.

Identify the impact of customer knowledge and CRM on service quality

In regards to the CRM, Paul et al. (2016) identifies that customer knowledge and customer relationship play an important role in the quality of the service of the organization.

In this way, it can be seen that the increased knowledge of the customer is more beneficial for the organization because due to the customer knowledge, they will be capable to define the company about their products and related improvements so that companies can make the essential changes as per the customer’s feedback.

This process is also effective for companies to develop customer relationship management within the organization to build a relationship with the customers.

In oppose to this, Ngo and Nguyen (2016) also mentions that customer knowledge is good for the organizations but in limit because if the customer’s knowledge gets increased related to the organizational products, then it will impact the organization’s CRM in a negative manner.

Similarly, due to the increased knowledge, customers can raise the point on the organization’s production process and their other operations and this is not good enough for the companies and their reputations also.

In addition, it is also defined by Baldwin et al. (2017) that organizations realize that their most important assets are their customers and they also found that the increased customer satisfaction can only be attained by increasing the quality of the organizational services and their products.

That is why it is one of the major issues that how the organizations gain customer knowledge through which to initiate as well as maintain the customer relationships and to increase the service quality.

In a similar manner to above, Ninimour and Sultana (2016) also depicts that the customer knowledge always has the optimistic influence in regards of the service quality and the customer relationship management is considered as the particle intervening variable among the customer knowledge and the service quality.

In this manner, customer knowledge plays a crucial role to enhance customer relationship management however, the CRM increases the service quality and it also helps the organizations to achieve the competitive advantages in an effective manner so that they can compete within the highly competitive environment.

In this concern, Cui and Wu (2016)supports and reflects through its research study that there is a deeper relationship between the customer knowledge and the CRM as they perform simultaneously within the organization and their impacts also can be seen concurrently.

At the same time, it is also identified that the impact of customer knowledge, as well as customer relationship management, is based on the company’s perception only.

In addition, Wail and Wright (2016) describes that the customer knowledge and the CRM are both different aspects so it is important to examine both the aspects separately so that their importance can be measured in an effective manner.

In this way, while concerns about the customer knowledge, it is mentioned that the customer knowledge is one of the important organization assets which is utilized and managed by the organizations in order to achieve the competitive advantages so that they can be capable to survive in the high competition.

In the views of Rahimi and Kozak (2017), it is always important for the organizations to provide the proper value for managing the customer knowledge efficiently and it is important for attaining the higher performance in the service quality.

That is why, organizations have the requirement to capture, acquire, share and apply the identified customer knowledge in an effective manner so that they can work to improve their CRM that will be beneficial for them to achieve a high level of service quality in its products and services.

Identify the challenges that organization faced with customer knowledge

The study is already proven that Customer knowledge do impact service quality of firm. This is clearly justified with the above study which stated that customer knowledge about the product, price and quality standards guide the organization to bring improvement and support firm to maintain the relationship for longer period of time (Al-Tit, 2015).http://Great KB7032 Project O I M Assignment Sample

But, the study majorly shows the positive side about customer knowledge not mentions challenges which firm faced when they found more educated customers. This section discusses about challenges that organization faced with the customers and their knowledge.

According to Zhang and Cole (2016), customer loyalty is largely depend upon the organization acts as if business consider needs, expectations of customer then their loyalty is maintained but with the availability of best services by other competitor, customer does not think once before switching of their loyalty.

So, the customer satisfaction can’t be considered as fixed for particular customer. However, the increasing awareness also makes it challenging for organization to deal with diverse customer who have different needs and wants.

So, in that case, to satisfy each and every customer tends to be tedious task for business. That’s why; management usually struggles with intense competition which pushes them to change their strategies on timely manner.

In favor to this study, Rahimi and Kozak (2017) found that customers education become critical point for organization as now every individual has their views or needs and they easily sent their expectations through use of technology such as online platform within which firm always get challenged what need to incorporate.

That’s why, diverse in views or opinion sometimes affect adversely firm services and it result to firm failure in market. This study can be proved with the help of food sector.

Likewise, previously people are more obsessed with junk food and ignore their health but with the growing issue related to health. People become more conscious and demand for the healthy and nutritional food items. Because of this, now food firm need to mention each ingredients and fat, calorie percentage over packet. If it is not mentioned on packet then customer does not ready to buy (Kairi et al., 2017).http://Great KB7032 Project O I M Assignment Sample

Similarly, there are various big restaurant chains such as Mc-Donald, Pizza Hut which now indulge to give new shape to their existing food item by making them nutritional or healthy for people.

For this, they incorporated veggies and fat-free products. After that only customer ready to consume such products so that’s why, it is stated that customer awareness and knowledge push pressure on firm to think innovative and bring new in their offerings.

The firm which moves as per the changes can sustain for longer duration in this competitive environment otherwise, various firm struggles to retain its customers and their loyalty.

In contrary to this study, Felix (2015) outlined that SMEs such as small, medium sized firm struggled majorly on the part of satisfying customer by solving their queries.

It is fact that current customer group can’t simply buy anything without having a knowledge about the usage, features and safety standards of product. In that case, it become challenging for small firm to bring changes in their services quality as per the customer demand due to availability of less capital and limited human resources. This affects their potential to move as per the changes.

Thus, this study clearly signified that small or medium majorly get influenced with the increasing customer knowledge. In support to this study, Helmuth (2016) also mentioned that customer-management relationship can be improved only when customer get proper awareness about the service quality.

However, the customer-management relationship is largely dependent upon the organization acts and customer needs and wants. So, with the failure on satisfy or fulfill any needs or expectations, firm get lost the customer engagement.

Thus, it is important for firms to perform each step from product plan to production and delivery process need to take appropriately by considering several factors such as social, environmental or economical etc. then only firm can able to address the challenges which is increasing with customer knowledge.

Suggest ways to improve Customer relationship management

The problem analysis clearly signified that now no customer wants to attach with any particular or specific firm for longer duration. It can be stated that customer engagement is diminishing day-by-day.

The customer engagement theory can help organization to find way to procure the loyalty of individual customers for longer duration of time.Great KB7032 Project O I M Assignment Sample 2

(Sources: Jiang and Zhang, 2016)

The model of customer engagement presented different stages within which customer engagement get enhanced.

Reach: – It includes to identifying what clients wants. This helps organization to bring changes or develop their offering accordingly.

Acquire: – This stage helps organization to identify whether client is interested on product or service of firm then only it start shaping thing as per the client.

Contract:- This area happen when client is interested on firm product and service then management start contracting with individuals by identifying their requirement and make changes accordingly.

Retain:- this step include those customers which somewhere develop faith on firm and ready to try the offerings. in this stage, firm is ready to make changes for retaining the customers toward their brand.

Nurture:- This is the final stage within which quality service is provided to customer through offer them additional incentives. For instances, firm usually provide discount offers and additional service to retain customer for longer duration.

This nurturing stage is important one to influences the purchasing power of individual.

Thus, these stage may help firm to improve its customer engagement through make them fully aware and allows them to perceive positive about brand.

Other than that, Kalian nan and Anjou (2015) suggested that firm need to develop their offering in such a way that every segment customer can relate to and ready to become loyal.

This can only possible when firm address large suggestions or queries of people and accordingly discuss the big leading firm and develop their services accordingly. Otherwise, merger and acquisition is another valuable suggestion to current business entities which faced challenge to bring changes on frequent manner.

Likewise, Mona et al. (2018) defined that merger and acquisition process boosts the firm strength and capability to offer wide services at a same time and able to improve the quality as per demands.

This becomes possible as merger or acquisition support firm in term to improve the financial, technical and human resources capabilities. It gives rise to uplift of customer satisfaction through offer what they want or expect from firm.

At the same time, Hanif et al. (2015) stated that outsourcing service strategy also proved to be effective solution to improve customer service as it would be worthy to hire those firms which is already expertise on particular service or technology.

Then it contributes positive results on product or service delivery. The outsourcing strategy also helps to get the best services on affordable price with high quality standards. Then this source helps the firm to influences the larger audiences on successful manner.

Thus, these suggestions can help firm to improve the service quality and achieve the healthy customer-management relationship.


From the above discussion, it is concluded that customer knowledge has a positive influence over service quality and CRM is considered as a partial intervening variable between customer knowledge and service quality.

This is because if customer aware about the offerings then it able to presents the expectations and needs which somewhere result on developing strong relationship between customer and management.

In respect to gain CRM, firm made major inputs such as use of social-site to make customer aware and involve various offers and schemes that support the achievement of customer perception on positive manner.

Based on this study, it can be stated that customer knowledge about firm tends to enhance the CRM which in turn, increases service quality and provides competitive advantages

In addition to this study, the finding also presented that customer knowledge is not only bring positivity for firm but it also affect firm on various ways. The major one is that differences on customer view or opinion and preferences of service quality put pressure on firm to bring changes.

This area influences the firm productivity as frequent demand on changes give rise to the problem of high capital investment on technology and human resources. Thus, this area does not prove worthy for firm existences.

That’s why, it is recommended to focus more on merger and outsourcing strategies to fulfill the customer service quality need and requirement.


After analyzing the whole of the study, it is important for the organization to focus on its operations related to its customer relationship and the quality of the product so that organizations can be capable to attract more customers and retain them for the long time duration.

In this manner, some important recommendations and the suggestions are given below:

  • In concern of developing the customer relationship, it is recommended that organizations need to focus on its communication strategies as theses strategies are the key to any good relationship and it is one of the important ways to develop the customer relationship.
  • At the same time, to improve the quality of services, the TQM (Total Quality Management) is also suggested so that the organization can focus on the quality of its services in an effective manner.
  • Moreover, the feedback is also a good technique to develop a deep relationship between the organization and the customers because when organizations ask for feedback to its customers, they feel valued for the organizations and they become a loyal customers of the organization.
  • In the end, it is also recommended to the organization that if they want to improve their relationship with the customers, it is important for them to provide them effective customer support so that they can make their customer more satisfied with their services and force them to show their loyalty towards the brand.


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