The Role of IT in Customer Management
In the contemporary society, customer management has been viewed as the prime area that most companies do much research on to get the right people to take of their wealth. Various factors determine what the consumers consume. Taste and preferences, age, the quality and the general societal beliefs have been spotted as some of the determinants of the consumer behavior towards the choice they make on a good. The decision to buy or not to buy any good or services always rests in the discretion of the consumers. It is a practice that the production department of every company tries to give much attention to as ways and means through which the customers could be lured into getting the products first hand for them (Dholakia, 2012). In the quest for the consumer attention into their products, there are various ways in which companies strategize on the means and ways in which they are deemed to bring on board the advent of sales of their goods to the customers.
In the recent developments, information technology has been seen to favor the adventure of luring customer to their products. This paper looks into the integral role that the information technology has brought with the advent of consumer management. It examines the very core changes that the IT has managed to make the customer service aspect of companies to blossom. Additionally, a closer look at the pros and cons of the use of technology in making the consumers love the product and services given by the various manufacturers. The big question is, is a computer an excellent tool for changing the consumer behavior towards an individual product or service and enhanced management of the same (Hawknis, Mothersbaugh, & Mookerjee, 2011).
The research questions
- What is the relationship between technologies based customer service and the performance of the company regarding sales volume?
- What is the performance of the computer by consumer needs research, the product branding and the quality of services to the consumers?
- Is there any correlation between brand management of a company and the advancement in technology of the same company?
These three research questions are very critical in trying to look into the role of informatics in enhancing the consumer behavior towards certain management structure. The questions are quite measurable and try to give a concise diction to the exhaustive research.
The research objectives
From the above research question, the following research objectives could be derived.
- To investigate the relationship between the technology-based customer service and the sales volume of a company
- To gauge the significance of information technology in the lens of the three performance matrices; consumer needs research, the product branding and the quality of services to the consumers
- To find out the correlation between brand management of a company and the advancement in technology of the same company
Customer’s service has been one of the most crucial areas of management that most businesses have dwelt on. There are various means and ways in which consumer behavior can be perceived. According to Phillip Kotler, the patterns with which the customers buy a product is dependent upon various factors. One of them is the quality of service that the companies give to the consumers. Secondly, the level of satisfaction that they derive from the product or service at hand gives the company the much-needed advantage to get the whole project running. Information technology has enabled the advent of consumer behavior to be enhanced a great deal (King, 2010). One of the areas that have been mentioned as being influenced by the IT is the marketing research. Even as the business analysts do the environmental analysis, it is important to obey the times and find cost effective ways that the consumers are deemed to be reached efficiently. Through the use of technology-based research, many companies have used the latest development in technology to do their survey. For example, the use of the Internet-based questionnaires has been at the helm of relief even as most of the marketers get their audience through the utilization of the electronic platform (Lempka, & Stallard, 2013).
Additionally, in the analysis of the taste and the preferences of various parties at hand, it is very critical to note that the companies have used various statistical techniques that are electronically based on putting about the accurate results. The business innovations have made entirely possible to receive and analysis the data on the target market in real time. The enterprise resource planning has helped many companies to design a cost-effective strategy that would help them get most customer base at the same time give much attention to the well-being of the customers. Through the serious statistical packages that are on the electronic platform such as the regression analysis, the correlation analysis among others has made it easier for many companies to have a large competitive advantage. This notion has been supported by the fact that technology has brought in globalization that is seen to have compromised the whole scenario of impediments regarding geographical barriers (Mellott, D2014).
Technology has enabled the direct contact with the customers in real time and at all time with the client’s services that work for 24 hours. This has boosted the turnover on the clientele base that the companies have at hand. Additionally, in the service delivery, electronic systems have been very instrumental in making sure that the company knows the exact tastes and preference of the consumers. The real advent comes when the customer is asked a series of questions via the electronic platform and from them, given the right choice of product that they want. Marketing and advertising of various products have become quite easier and cheap. This has been enabled by the use of internet, which in this case gives a much higher gain to the companies that are well connected via the electronic systems (Princiotta, 2011). A survey done by the Deloitte and tush company, shows that 80% of those who advertise through the internet platform stand to gain 90% of their investment in marketing while those who use the conventional method stand to gain only 45% or lower. From the connotation above, it is evident that the IT has been used by many companies to influence the consumer behavior towards their advantage (Samli, 2015).
In this study, the population used was the regular customers that shop normally and those that shop online. This population was from an age group of 15year and 45 years. The population was chosen because it is this age that most of the people embrace technology. Furthermore, the research study design used was survey design. Questionnaires were sent to these individual online. The data collected was analyzed through a series of research tools. The sampling plan used was the random sampling technique. The statistical research methods used were the regression analysis, the correlation analysis and the descriptive statistics. The following results and analysis were derived from the study.
Results and analysis
For the research objective 1, a correlation analysis was done to discern the relationship between sales volumes and the input place regarding the technology-based customer service research. From our results, we found that the correlation coefficient for that effect was 0.9587. This figure is a dashing figure and it is close to 1. It simply means therefore that there is a positive correlation between the internet-based customer service and the sales volume of every month. It also means that as the company increases its advent of marketing using the electronic platform, the sales are likely to increase exponentially. The exponential growth is brought out by the awareness of the product to the consumers using the internet platform. The tyranny of numbers works in this case because the company is embracing the technological advancement that makes it have a strategic and competitive advantage over other businesses.
On the research objective 2, a regression analysis was done to know how performance can be perceived through the lens of consumer needs research, the product branding and the quality of services to the consumers. The technological performance was the dependent variable while the independent variables were consumer needs research, the product branding and the quality of services to the customers. The regression equation brought out was:
Y = 521 + 45.2×1 + 421×2 + 45.897×3
From the results above, the coefficients of the independent variables are all positive. This means that as the technological advancement increases, the customer needs research (x1) becomes more efficient 45.2 times. The product brand(x2) gets boosted by 421 times. This also happens to the quality of services. From this connotation, it only means that the technological advancements if put to proper use can be an excellent tool for making sure that the consumer behavior is lured towards getting the predetermined products and services of the company (Dholakia, 2012). Additionally, the use of technology is very vital in boosting the reputational stance of a company since it brings on board the aspect of product branding to a great advent. This notion has also been handled by the third research question on the brand management correlation with the technological input for the firm. The correlation coefficient here was 0.978 which co notated a high correlation stance. It only means that as the brand management is being enhanced, the whole scenario of technology is very critical in making sure that this comes true.
From the analyzed data above, it is evident that technology is an essential tool in influencing various stances of consumer service. Since it is a tool for positive development in companies that have tried and tested it, I recommend the company to embrace in gaining a competitive advantage over other businesses and hence gaining more sales through positive influence of the consumer behavior (Unhelkar, 2006).
Technology has been proven to play an integral role in the enhancement and the importance of the consumer behavior among very many institutions. The various fields in which they have been used are; brand management, production and advertising and market research among others. It is now very imperative that most companies embrace it and gain the competitive advantage that comes with it.
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