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
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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