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Global Brands Store Staff as a key CRM tool and Local Customers Satisfaction and Intention to Repurchase A Case Study of UNIQLO Thailand Papassara Chaiwong PhD Chulalongkorn ID: 678339

uniqlo staff characteristics amp staff uniqlo amp characteristics communication store satisfaction intention repurchase crm service customers satisfy dissatisfy management

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Slide1

Communication Characteristics of Global Brand’s Store Staff as a key CRM tool, and Local Customers’ Satisfaction and Intention to Repurchase: A Case Study of UNIQLO Thailand

Papassara Chaiwong, Ph.D., Chulalongkorn UniversityPohnpassorn Pokpermdee, Silpakorn University

1Slide2

Communication Characteristics of Global Brand’s Store Staff as a key CRM tool, and

Local Customers’ Satisfaction and Intention to Repurchase: A Case Study of UNIQLO ThailandAGENDABackground

Literature ReviewMethodology

Data Analysis

Results & Discussion

Implication & Conclusion

2Slide3

RESEARCHBACKGROUND

STRONG & RAPID GROWTH of FAST FASHION BUSINESS in ASEANYOUNG CONSUMERS – higher purchasing power and very keen on fashion.

K E Y

Marketing

Strategy

3Slide4

RESEARCHBACKGROUND

THAILAND:

30 storesin BANGKOK alone:

19 stores

4Slide5

RESEARCHBACKGROUND

http://www.uniqlo.com/us/storestaff/important/

International Business Strategy:

Stores

Managed by

LOCALs

, for

LOCALs

STAFF as the STARS

5Slide6

RESEARCH

BACKGROUNDCULTURALFACTORSthe CRM implementation issues encompass

rather than technical ones.

In effectively running stores worldwide,

6Slide7

RESEARCH

OBJECTIVESS

M+C

R

UNIQLO (Thailand)

CRM Policy & Strategy

UNIQLO ‘s Store Staff’s

Communication Characteristics

UNIQLO Customer’s

Satisfaction &

Repurchase Intention

To investigate:

policy

and strategy

of UNIQLO (Thailand) in training

its

store

staff to be main players in

CRM

communication

characteristics of store staff

that lead to

customer satisfaction and repurchase intention.

7Slide8

LITERATUREREVIEW (1)CRM and

Interpersonal Communication

a business strategy that seamlessly integrates

every

aspect of business that touches

customer.

Ali and

Alshawi

(2004)

the overall process

of building and maintaining profitable customer relationships by

delivering superior customer value and

satisfaction

Kotler and Armstrong (2004, p. 16)

create

long-term customer loyalty

and

higher profits

POSITIVE

IMPRESSIONS

and

EXPERIENCES in

EVERY TOUCH POINT

VERBAL

and

NONVERBAL

communication

4 Key Points of Concern

in Managing

First Impression (

Pondphan

Shoeychitr

, 2013):

Physical appearance

Spirit of Hospitality

Outward Personality

Inward Personality

8Slide9

LITERATUREREVIEW (2)Service Culture

Derived from: Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2006). Services marketing: Integrating customer focus across the firm.

Management

Standard

(to external customers)

Service Culture

Training

(to internal customers)

Enabling

the promise

Making

the promise

Delivering

the

promise

cultural expressions

of a corporate members’ shared values and shared meaning reflected in both

internal

(relationship between management-employee, employee-employee) and

external

(relationship between corporate’s representatives and customers or suppliers)

interactions

.

(

Edvardsson

&

Enquist

, 2002)

(

Pisit

Pipatphokakul

, online)

9Slide10

LITERATUREREVIEW (3)

Hofstede’s Dimensions of Culture10THA: Low IndividualismJAP:

Collectivism

THA:

High > hierarchy and status orientation

JAP:

High > hierarchy,

yet believing in concept of ‘being born equal’ and ‘meritocratic’

THA:

Lowest masculinity among Asian countries.

JAP:

One of the

most masculine societies; severe competition between groups; drive for excellence

THA:

High > Face-saving, maintaining harmony values, avoiding the unexpected

JAP:

One of the

most UA; seeking for detailed facts and figures before

making decision.

THA:

Long-term, great respect for traditions, yet, small propensity to save for the future.

JAP:

Long-term, high rate of investment in R&D.Slide11

RESEARCHQUESTIONS

SM+CR

UNIQLO (Thailand) CRM

Policy & Strategy

UNIQLO ‘s Store Staff’s

Communication Characteristics

UNIQLO Customer’s

Satisfaction &

Repurchase Intention

What is UNIQLO’s CRM strategy in Thai society?

How does the Japanese management exploit Thai store staff as main player in CRM?

What are communication characteristics of the store staff, trained by Japanese Brand Management, that leads to

Thai customers’ satisfaction and repurchase intention?

11Slide12

RESEARCHMETHODOLOGY12

SM+C

R

UNIQLO (Thailand) CRM

Policy &

Strategy

UNIQLO ‘s Store Staff’s

Communication Characteristics

UNIQLO Customer’s

Satisfaction &

Repurchase Intention

In-depth interviews:

UNIQLO’s management

Expert in International Business Communication

Non-participatory Observation

@ UNIQLO’s 5 branches across BKK

200 questionnaires:

UNIQLO’s repeat customers

(shopping @

uniqlo

at least once a month, spending of >1000

bht

/month)

5 stores across BKK

were picked by geographical purposive sampling method.

In-depth interviews

20 voluntary respondentsSlide13

DATA

ANALYSIS13S

M+C

R

UNIQLO (Thailand) CRM

Policy &

Strategy

UNIQLO ‘s Store Staff’s

Communication Characteristics

UNIQLO Customer’s

Satisfaction &

Repurchase Intention

Content Analysis

Descriptive Statistics:

frequency, distributions, percentages, means and standard deviations

Inferential Statistics:

difference between means of independent groups:

T-Test, One-way ANOVASlide14

RESULT

DEMOGRAPHIC.DATA14Age: 18 to 30 years old (75.5%)30 to 45 years old

(18.5%)

Occupation:

employees of private companies (51%)

university students (28.5%)

business owners (13.5%)

Monthly Income:

5,000 to 15,000 baht (34.5%)

> 15,000 – 25,000 baht (27.5%)

> 45,000 baht (15.5%)

21.5% had ever visited

UNIQLO

shop

in

Japan

RFM:

83%

visited the store 1 to 2 times/month

SPENDING: >1,000 to 3,000 baht/visit (48.0%); less than 1,000 baht/visit (43.5%)

59% FemaleSlide15

RESULT

ANDDISCUSSION#RQ1&215DNACommunication Characteristics (Verbal and Non-verbal)Cleanliness

To keep every point of store area, including oneself, clean always.

Tidiness

To keep everything in order and pleasant to the eyes, dress properly.

Politeness

To communicate with courteous, respectful and considerate manners.

Energetic

To be enthusiastic, demonstrating by communicating with pleasantly loud and clear voice.

Punctuality

To provide service by the appointed time, never be late.

Briskness

Haki Haki - To express feeling of quickness, smartness and readiness to provide service, demonstrating by standing straight and being ready to move.

Hospitality

To be friendly, express willingness to provide service with sincere smiley face, and have communication empathy

Teamwork

To be able to coordinate and work in collaboration with other staff, both from the same and different store, to supportively respond to the customer’s requirement.

Correctness

To give accurate information relating to product and service to the customers in every contact point/process; and do the best to avoid mistakes in communication/actions.

Formal Training

Daily Meeting

Staff Handbook

Personal MentoringSlide16

16

Nine UNIQLO’s DNAs, initiated by the parent company in Japan, were saturated and imparted via their systematic training programs to ensure that the Thai staff could effectively communicate and build relationship with local customers to create positive moment of truth in every touch point (i.e. admission, sale area, fitting room and cashier), and eventually lead them to become loyal customers.Some specific DNAs in Japanese culture, i.e. Briskness (Haki Haki) or feeling of quickness, smartness and readiness demonstrated through manners of standing strait, stretching chest and being ready to move, could not be fully imparted, so that it could not be clearly seen in communication characteristics of the staff;

whereas, DNAs of Hospitality and Politeness were obviously expressed.

SHARED Cultural Characteristics

‘SERVICE CULTURE TRIANGLE’

Management

.

Training .

Standard

RESULT

AND

DISCUSSION

#RQ1&2Slide17

RESULTANDDISCUSSION#317

  Level of Satisfaction* (n=200)

Rank

#

UNIQLO’s DNA and

its

reflected Communication Characteristics

3

POLITENESS

 

 

 

 

3.1 Staff

used polite language with tone of voice ‘

ka

/

krub

’.

4.34

0.69

1*

 

3.2 Staff

communicated with proper tonality while providing service.

4.31

0.71

2*

7

HOSPITALITY

 

 

 

 

7.1 Staff were friendly and had sincere smiley face.

4.31

0.73

3*

 

7.4 Staff attentively listened to your problem with supportive facial expression.

3.97

0.78

21*

9

CORRECTNESS

 

 

 

 

9.5 Staff were able to give advice on how to choose clothes that suited you.

3.69

0.78

22*

1.00 – 1.80 = strongly dissatisfy; >1.80 – 2.60 = dissatisfy;

>

2.60 -3.40 = neither satisfy nor dissatisfy ;

>

3.40 – 4.20= satisfy ; > 4.20-5.00 = strongly satisfy

THAI Cultural Characteristics

SATISFACTIONSlide18

RESULTANDDISCUSSION

#318Test for differences between means from separate groups of subjects: Statistically different at

significance level of 0.05:

sex

(female >

male)

age group

(18 to 30 years old > 45 to 60 years

old)

range

of income

(lower income > higher income

)

whereas

, mean scores of satisfaction rated by customers who

had ever

and

had never

visited UNIQLO’s shop in Japan were

not statistically different.

THAI Cultural

Characteristics

SATISFACTIONSlide19

RESULTANDDISCUSSION#419

  

Level of

Agreement*

(n=200)

Rank

#

Factors affected

Repurchase Intention

1

Product

4.24

0.65

1

2

Place (location)

4.21

0.63

2

3

Promotion (sales promotion)

3.99

0.75

3

4

People (store staff)

3.96

0.68

4

5

Price

3.95

0.70

5

6

Process (Product Arrangement)

3.93

0.72

6

7

Physical Evidence (e.g. ambience, decoration, signage)

3.93

0.75

7

1.00 – 1.80 = strongly dissatisfy; >1.80 – 2.60 = dissatisfy;

>

2.60 -3.40 = neither satisfy nor dissatisfy ;

>

3.40 – 4.20= satisfy ; > 4.20-5.00 = strongly satisfy

REPURCHASE INTENTIONSlide20

RESULTANDDISCUSSION#320

  

Level of

Agreement*

(n=200)

Rank

#

Factors affected

Repurchase Intention

1

Staff had

spirit of hospitality

, giving you warm welcome and sincere smiley face.

4.20

0.73

1

2

Staff

politely and gently

communicated with you.

4.20

0.78

2

3

Staff expressed

feeling of enthusiasm and quickness

while providing service

4.16

0.81

3

4

Staff effectively coordinated with one another in service delivery.

4.06

0.78

5

5

Staff had good product knowledge and were able to provide accurate information.

4.04

0.77

6

6

Overall:

Staff had good personality.

4.03

0.68

7

7

Overall:

Staff made your shopping experience at UNIQLO awesome.

4.11

0.77

4

1.00 – 1.80 = strongly dissatisfy; >1.80 – 2.60 = dissatisfy;

>

2.60 -3.40 = neither satisfy nor dissatisfy ;

>

3.40 – 4.20= satisfy ; > 4.20-5.00 = strongly satisfy

THAI Cultural Characteristics

REPURCHASE INTENTIONSlide21

IMPLICATION

ANDCONCLUSION21Cultural SIMILARITY & SPECIFICITYGAP between Japanese management and Thai staff. To

catch the UNIQLO’s DNAs, good demonstration and examples from the management were consistently needed.

To

empower local staff to effectively connect with local customers, the management should develop

healthy

relationship >> not too stressful

with them. The more the staff feel

sense of belonging

, the more they will be with

the

company and are willing to be trained to become effective brand representatives. Slide22

22Slide23

Communication Characteristics of Global Brand’s Store Staff as a key CRM tool, and Local Customers’ Satisfaction and Intention to Repurchase: A Case Study of UNIQLO Thailand

Papassara Chaiwong, Ph.D., Chulalongkorn UniversityPohnpassorn Pokpermdee, Silpakorn University

23