Organisations are increasingly under pressure to meet financial and other objectives in dynamic and competitive markets, that are being driven more by services than by products. Marketing as a function needs to become more accountable with respect to the marketing investments that are made and the returns generated from these programmes, and hence to increase shareholder value. Intangible assets are comprising a growing proportion of this shareholder value, to the extent that 75% of the value of the organisation is currently made up of intangibles such as Human Equity, Brand Equity and Customer Equity. Thus the marketer needs to build the marketing-based intangible assets of Brand Equity, the inherent value of the brand, and Customer Equity, the sum of the lifetime values to the organisation of its current and future customers. To be able to monitor and manage marketing’s contribution, these assets need to be measured, and the effectiveness of marketing programmes needs to be determined ideally in financial terms, e.g. ROMI – Return on Marketing Investment. The purpose of this research study was to develop and test a framework of Customer Equity in the financial services sector, to guide marketing spend so that shareholder value is built by leveraging the marketing intangibles. Consequently, the objectives were to develop a model of Customer Equity, to calculate Customer Lifetime Value of customers in a segment, to determine the value drivers and the elasticity relation of Customer Equity, and finally to provide guidelines to organisations to improve their Customer Equity. The first area of research was in the field of Marketing metrics, the set of measures that helps organisations to understand their marketing performance. The recommendation for organisations is to develop a marketing dashboard, or range of key marketing indicators, which would include short-term performance measures, e.g. market share or customer satisfaction, as well as long-term planning measures, e.g. Brand Equity and Customer Lifetime Value. Brand Equity was then reviewed as a valuable intangible asset. Various models have been developed to explain the different sources, components and outcomes of ii Brand Equity, as it is a multidimensional construct. The measurement and valuation of Brand Equity was also researched, and its link to shareholder value. Customer Equity, an alternative market-based intangible asset that can be a driver of shareholder value, was also reviewed. The conclusion from a review of the models is that there are two schools: the Blattberg, Gupta and colleagues school, which tends to focus on internal analysis as typically used in direct marketing applications; and the Rust and colleagues school, which tends to focus externally on the customer and the competition. Both schools have something to contribute: the internal school, on accurate understanding of Customer Lifetime Value, and the external school, on the relative importance of the drivers of Customer Equity. This research also makes a contribution to the Brand Equity / Customer Equity debate, analysing similarities and differences, and developing a model to explain the trade-off between the two concepts. A combination of the two schools was used to develop a model of Customer Equity, including supply side inputs (for accurate CLTV calculations) and demand side inputs (for determining drivers and their elasticities). Using input from the databases of a financial institution, Customer Lifetime Value and Customer Equity for customers in the SME market sector were calculated. A convenience sample of 251 SME’s was interviewed on the demand side using a structured questionnaire, to develop data on the drivers of their importance and the relative performance of banks. A statistical model was then developed, using Principal Components Regression (PCR) analysis, to determine the drivers of Customer Equity, the factors influencing these and the relative sensitivities. A key contribution of this research was the development of the Probability of Defection as a measure of the dependent variable in the multiple regression. The model was tested by determining the ROI of two marketing programmes from the financial institution, to guide their marketing spend. Finally, a Customer Equity Management Process was developed to assist organisations in implementing a Customer Equity focus. / Prof. Chris Jooste

The Internet has provided marketing with many new tools and given old tools new or improved meanings. The Net poses tremendous challenges for scholars in many lines of research, from usability studies and consumer behaviour research to marketing and advertising research. Because the World Wide Web (the Web) presents a fundamentally different environment for marketing activities than traditional media, conventional marketing activities are being transformed, as they are often difficult to implement in their present form. This means that in many cases these marketing activities have to be reconstructed in forms more appropriate for the new medium. A lot of technological changes have affected the marketing environment of today. Companies must adapt to these changes in order to improve their marketing strategies. This has, among other things, resulted in an emphasis on relationship marketing. The purpose of this thesis is to explore what strategies are used in practice by companies in order to market and promote their products and services by using their Web sites as well as to build effective Customer Relationship Management (CRM). In order to fulfil the research purpose, interviews were conducted at a number of companies (medium and large), and questionnaires were mailed to various companies in the motor retail industry. The result shows that a company can use traditional as well as online marketing and promotion strategies when conducting business. This can also help companies to gain better relations with their customers. The different marketing and promotion strategies are useful for attracting new business as well as maintaining and stimulating existing relations. The research problem addressed in this study was to determine the factors that are effective in marketing and promoting of Web sites as well as the methods used in building CRM.

In this study the service quality from a Metropolitan Broker Division towards contracted brokers in the southern region was investigated. From the industry and competitor analyses it can be concluded that service quality has become an important factor in the financial service industry, especially in the insurance industry. It is therefore important to look at options to outperform competitors. The literature survey was aimed at improving the level of quality service to contracted brokers. Based on the information obtained through the literature study and survey, a guideline to assist a Metropolitan Broker Division to improve the level of service quality was developed. The purpose of the empirical study was to determine if the service that contracted brokers receive from the Metropolitan Broker Division is of an acceptable level. The answers from respondents were analysed and compared with findings from the literature study. Recommendations were formulated for improving the level of service quality towards contracted brokers. The empirical study results were satisfactory and informative. The positive responses identified can be utilised to strengthen the marketing strategies by Metropolitan Broker Division while attention should be given to the negative responses.

M.Com. / South Africa exists, that focuses on Customer Relationship Management and Customer Loyalty. The study investigates Customer Relationship Management and its influence on Customer Loyalty at Liberty Life in South Africa. Over the past twenty years, the importance of the services industries to the world economy has grown. In the South African economy the services sector contributed 71.4% of South Africa’s total GDP in 2006. The world economy is struggling in the aftermath of the global financial crisis. Customers are cancelling their policies as they struggle to survive the down turn in investment and credit markets. Liberty Life experiences persistency problems as customers cancel their policies. Liberty Life is required to focus on its relationship with customers to increase customer loyalty. To establish the influence of trust, commitment, two-way communication and conflict handling on Customer Relationship Management and its influence on Customer Loyalty at Liberty Life in South African, an empirical investigation was conducted. The sample consisted on 254 customers visiting the customer walk-in-centres situated in Johannesburg, Cape Town, Pretoria and Durban. The study indicated that a significant positive relationship exists between trust, commitment and conflict handling, and Customer Relationship Management at Liberty Life. The study further revealed that a significant negative relationship exists between two-way communication and Customer Relationship Management at Liberty Life. In addition, the empirical investigation revealed that there is a significant positive relationship between Customer Relationship Management and Customer Loyalty at Liberty Life in South Africa. The study provided strategies for Liberty Life to improve and maintain its relationships between the organisation and customers if Liberty Life exhibits trustworthy behaviour, shows genuine commitment to service, communicates information to customers efficiently and accurately, thereby also listening to their iii customers and handling potential and manifested conflicts skilfully. This will ultimately, contributes to Customer Loyalty, which will ensure economic prosperity for Liberty Life.

M.Comm.

D.Comm. (Marketing Management) / Repeat purchasing of newly developed products is critical for new product success and customer profit maximisation. Yet this topic has received little or no attention from the literature. Today, as profitability is being challenged from global competition, marketers of consumable industrial products (MRO) have to understand better than ever before how to effectively and efficiently manage repeat purchasing to achieve their profit maximising objectives. The study investigates industrial consumable repeat purchasing from a high involvement purchasing perspective and identifies four purchasing constructs and their variables whichimpact customer purchasing decision making. These constructs relate to pre-trial purchase, trial purchase, first repeat purchase and long term repeat purchase decision making dimensions, each containing purchase decision making factors which the marketer is able to influence. The findings reveal that customers decide which vendor to select for a trial- purchase, heavily influenced by the transactional value offered and the customer's perceived probability of transactional value satisfaction with the offer. Retaining the vendor for a first repeat purchase requires confirmation of the perceived pre purchase satisfaction likelihood with the evaluation of the purchase and consumption experience. To be retained for continued repeat purchasing and profitability maximisation over the long term, requires marketing strategies that are based on the customer's repeat purchase orientation and the firm's ability to meet the customer's rising value expectations. Such orientation consists of either transactional or relational repeat purchasing. In the transactional case, vendor preference has to be maintained from a perspective of superior transactional value and transactional value .satisfaction whereas in the relational repeat purchasing case, vendor preference requires in addition.. vendor loyalty and buyer-seller relationships for retention. The empirical study verifies these findings which lead to a repeat purchasing framework and a predictor for measuring vendor retention. As vendor retention reflects a customer's attitudinal intent towards the product/vendor entity, marketers are advised to develop favourable customer attitudes before, during and after a purchase. By implementing customer relationship management (CRM), customer value, satisfaction, loyalty and value laden buyer-seller relationships can be created to achieve sustainable repeat purchasing and enhanced stakeholdervalue

M.Comm. / The aim of this study was to prove the effectiveness of a Customer Service Index in improving customer service in a financial services environment. For this purpose, the implementation of a CSI in WesBank Corporate Finance was used as a case study. The success of this service strategy was dependent upon constant interaction with the customer in order to identify specific needs, to measure the delivery of these requirements, and to monitor the responses received from the customer base. By making comparisons between the two CSI's used, it was possible to discern a significant improvement in the ratings concerning various aspects of WesBank's service to customers, in addition to an increase in production, profitability and professionalism. The overall success of this measurement strategy was made possible by the total commitment and dedication of the entire staff of the organisation, and is clearly evidenced by the high standard of service quality which was attained, and is being maintained, through the implementation of this monitoring system.

Over the past few decades, customer satisfaction, customer retention and policies and procedures to sustain the above mentioned, have earned great amount of lip service. The importance of satisfied customer percentage have been emphasized by theories even longer before the best advised companies have done so. It is only recently, on the eve of the Soccer World cup 2010 that the issue has been narrowed down to truly hard relationships and one hard question: “Will the guest visiting the hospitality establishment frequent the hotel?” Two vital financial catalysts were used as basis for customer retention. The first is that of old customer’s costs much less than acquisition of new ones and the profit generated from the retained customer must therefore handsomely exceed the harvest reaped from the new clientele. Retaining customers have become an intangible asset in the sense that their value demonstrates the return that is won by successful efforts to satisfy the customers so greatly that they and their custom literally and figuratively stays with you. South Africa has lured even the loneliest traveller to the scenic beauty that is cradled by the country and its surroundings. When taking the former into consideration, South African businesses have enjoyed an increased appreciation and application of Business Management and its accompanying principles. The hospitality industry should therefore embrace the business management principles with specific emphasis on Total Quality Management (TQM); providing managers with the capacity to think strategically about the organisation, its business position, how it can gain sustainable competitive advantage and how its business management strategy can be implemented and executed successfully. The latter forms the basis for ensuring the smooth running of operations and ultimately, ensuring guests have a wonderful experience at the particular establishment. There is a strong belief that lodging facilities in the Garden Route area has experienced low customer retention due to a lack of comprehensive implementation of Total Quality Management principles which impedes on the establishments to reach their optimum profit levels. It is for this reason that this thesis will argue the importance of the systematic client retention as a strategic mandate in today’s service markets. Commercial reality demand long and lasting relationships that are beneficial to both the hospitality related establishment and their customers. The hypothesis used is the application of Total Quality Management as a Business Management Strategy which will facilitate customer retention in hospitality related industries such as hotels situated in the Garden Route area. Research shows that service expectations of customers and potential customers have escalated. Hospitality businesses found that implementation of quality processes to be a vital competitive component. However, many hotels are still struggling to reach a real understanding of what is meant by TQM. The research data indicates that 93 percent of hotels in the Garden Route do not follow a TQM program although all the hotels were familiar with the concept. This might be the reason why most hotels neglect customer retention activities. The literature reviewed in chapter two considers the customer retention activities evaluated in the questionnaire as important to retain guests. Hotels in the Garden Route do not perform these activities to the extent of success. Hotel managers thus know what to do in order to retain guests but the problem is quite simple, they do not always implement the necessary strategies.

The research study was conducted to cover the Buffalo City Municipality (BCM) retail industry with direct emphasis on the supermarket industry. The research problem is as a result of the retail businesses in the BCM that continue to consider that if they have large data warehouses with masses of customer information, they have all what it takes to run a profitable business. Their failure to understand the organizational implications of moving towards a customer-centric approach often results in high costs from bad customer service and handling of customer complaints. The main problem was stated and sub-problems introduced from the main problem to address them by way of qualitative and quantitative research. Related literature was reviewed on Redefining the Customer, Customer Satisfaction and Customer Relationship Management and a Customer Management Model was proposed. During empirical survey, a questionnaire based on literature reviewed was designed for the survey. A pilot study was conducted to identify and rectify problems and shortcomings relating to the questionnaire. The pilot study indicated that the data likely to be collected will address the main and sub-problems of the research. A total of thirty five questionnaires which contained closed-ended and open-ended questions were distributed to the population sample as selected. Results of the study were critically analysed and interpreted quantitatively and qualitatively by means of tables and discussion for the development of an Integrated Model for managing customers. The analysis of the study which was based on the literature reviewed and the findings from the empirical survey were concluded to present a solution to the problem. In view of the shortcomings identified by the literature review and integration thereof with the results of the empirical study, an Integrated Customer Management Model was developed.

South African vehicle manufacturers are under immense competition from vehicle manufactures from India and China. The global financial crises also put these organisations under intense pressure and this resulted in these organisations having to start seeing the need to focus on issues that affect customer retention. The way that business is done in the 21st Century is forcing organisations to implement strategies that are geared towards increasing customer retention and growing the business. Organisations need to build relationships with their customers with the hope that these customers will in turn extend their stay with the organisation when an opportunity to replace their vehicles arises or keep on servicing with them. In order to establish a good relationship with customers, organisations need to understand customer expectations by being customer orientated and by providing customers with value. The primary objective of this study is to improve customer retention for a selected vehicle manufacturer after the warranty and service plans have expired, by investigating the relationship between customer service quality, customer loyalty, and customer retention. The results obtained from the 64 respondents who participated in the survey revealed that although all the above-mentioned variables play a role in increasing customer retention, customer service quality exerts the most influence. The study also highlights areas that should be improved, as well as recommendations on how to improve them. Recommendations for future research are also provided.