Managing customer relationships. Case: Reasons for Avotakka's customer defection

The purpose of this study is to describe and analyse customer relationships and to separately look at the roles of different elements affecting relationship longevity. The research is based on logic that by understanding relationships deeply, also customer defection can be better understood. The study aims to find out reasons, based on the relationship elements, causing customer defection. The idea is that this study would be able to show what reasons lead to defection and hereby other customer defections could be prevented. Literature review explores theories of customer relationship management and switching behaviour. It describes different levels and elements of customer relationships and also shortly introduces their influence on profitability. The theoretical part of the study is basically a literature review, which purpose is to make the empirical part of the study more understandable and to provide tools such as analysing techniques for accomplishing the empirical research. The case company is A-Lehdet and especially Avotakka and its customers. The theoretical framework for the research was made based on the knowledge gained from literature review. Empirical part was built on the framework so, that customer defection process was divided into three stages: initial-, exit and post-dissolution stages. Avotakka’s former subscribers were sent questionnaires and the results were analysed by quantitative statistical methods. Also a small qualitative research was done before actual quantitative research by interviewing former subscribers and selling people. Results of the study showed that the initial stage of the relationship significantly affects the outcome of the switching process and that competition and customer perceived quality were affecting customer defections. Two different defector profiles were also created.fi=Kokotekstiversiota ei ole saatavissa.|en=Fulltext not available.|sv=Fulltext ej tillgänglig