Author(s): Ankur Kumar Rastogi, Hemlata, Ravindra R Kaikini, Adyar, Abhijeet Chavan,Sukhmeet Kaur and Geetika Madaan
Purpose: The main aim of the existing research is to enhance retention of customer by applying customer relationship management approach in automobile industry. Methodology: The existing study in exploratory and primary in nature. The sample size of the study was 356 customers as respondents belong to automobile industry in Delhi/NCR. The responses retrieved from structured questionnaire. Structural Equation Modelling applied to quantitively analyses the results of the current research. The seven prime latent variables selected for the study namely, “Perceived Value of customers (CPV), Image of company (CI), Service Quality (SQ), Barriers switching (SB), Satisfaction among customer (CS), Trust in customers (CT) and Retention of customer (CR).” The conceptual model is also proposed in the study. Findings: The study found that barriers switching had a considerable impact on retention of customer, whereas perceived value of customer, image of company, and service quality all have a notable impact on satisfaction among customer. Customers are more likely to stick around if they trust the credit procedure, but satisfaction of customer has no direct effect on retention of customer. Managerial Implication: These results have important implications for management, such as the need to segment customers and set sales goals in accordance with that segmentation, the importance of providing products with competitive advantages, developing tele sales as informational channels, the significance of supplying credit packages and specific initiatives to promote low-interest rates, and so on. Originality: In this study, we take a look at how likely consumers are to stick with their current auto loan provider when applying for new credit.