| With the high rate of competition in every market today, it has become very hard to retain customers. Thus, this paper aimed to determine the effects of credit policies to the customer retention of home appliance and furniture stores in Batangas City and in Lipa City. The data gathered were analyzed and interpreted using the percentage method, mean, frequency distribution and coefficient correlation. The research work found out that the majority of the participants offer a credit period of six months to one year; most of them set their credit limit at P50,000 and above; they always consider the capacity and character of the customer in granting credit; in collecting the amount due; the credit collection procedures often used by the participants are personal visit, oral communication, and customer’s initiative; and in case of customer delinquency, the participants often continue their collection efforts, the unpaid balance earns interest and accounts are written off. Other focal points of this paper were the dimensions of customer retention, namely: customer satisfaction and customer loyalty. Results showed that product, promotion, customer service and distribution affect customer satisfaction to a very great extent; and overall customer satisfaction, trust, customer relationship, corporate image and commitment affect customer loyalty to a very great extent. On this note, the home appliance and furniture stores in Batangas City and in Lipa City are advised to follow the proposed guidelines, which are based on the substantial findings of the study, to improve their credit policy and customer retention. |
Agamata, Franklin T. (2008). Reviewer in management advisory services. Revised Edition. Manila: GIC Enterprises Co.
Cueno, Jefferson S., Roxas, Joyce Ann P., & Christine S. Enriquez. (2010). Effectiveness of credit policies applied by furniture Stores and home appliance centers in Batangas City. Unpublished
Undergraduate Thesis. University of Batangas, Hilltop, Batangas City.
Duncan, Wymond. (2013). Customer - Centric default management: taking collections to the next level. CGI Group Inc. Journal. Retrieved from: http://www.cgi.com/sites/default/files/pdf/customer-centric-issuepaper.pdf.
Horner, Chris. (2010). Controller’s guide to managing credit, receivables & collections. Greenwich: IOMA’s Institute of Finance & Management.
Ifurueze, M. S. K. (2013). The impact of effective management of credit sales on profitability and liquidity of food and beverage industries in Nigeria. Global Journal of Management and Business
Research, 13.
Laman, Rose Marie B. & Vincent Patrick B. Laman. (2003). Money, credit and banking. Manila: GIC Enterprises and Co. Inc.
Maxham, J.G. (2000). The service recovery’s influence on customers’ satisfaction, positive word of mouth and purchase intentions. Journal of Business Research, 54, 11-24.
McNaghten, Mark & Clark Pasino. (2011). Understanding customer retention in the retail industry”.deloitte development LLC.. Retrieved from: http://www.slideshare.net/DeloitteAnalytics/understandingcustomerretentionintheretailindustry
Montenegro, Harvey B., Maranan, Kristine Mae M., and Charmaigne Kisses M. Saballa. (2010). Credit policies and collection strategies imposed by furniture and appliance centers in Batangas City. Unpublished Undergraduate Thesis. University of Batangas, Hilltop, Batangas City.
Mulumba, J. (2011). Credit policy, managerial competence, outreach and customer retention in microfinance institutions: A study of microfinance institutions in Uganda.
Oghojafor, A., Lapido, P., Ighomereho, S. & V. Odunewu. (2014). Determinants of customer satisfaction and loyalty in the nigerian telecommunications industry. British Journal of Marketing Studies, 2, 67-83.
Okpra, A. (2010). Microfinance lending in Ghana. A case study of projects in Apah.Village. Dissertation.
Ranaweera, C. and J. Prabhu. (2003). The influence of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting. International Journal of Service Industry Management, 14, 374-395.
Singh, Roopa and Imran Akhtar Khan. (2012). An approach to increase customer retention and loyalty in b2c world. International Journal of Scientific and Research Publications, 2, 1-5..
Zins, A.H. (2001). Relative attitudes and commitment in customer loyalty needs. International Journal of Service Industry Management, 12, 269-294. |