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In the last years many organizations realized that market orientation is essential to their success. Satisfying the needs of customers, offering them products and services which meet their desires and demands, customer loyalty can increase profitability for long term. After analyzing the existing journal literature in this field we would like to em...
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... activity requires a combination of accounting and marketing skills but the result of this collaboration might be a diagram, useful to managerial decision. 3 shows that there are several ways in which companies can have profitable customers. There are customers (category 4) who can easily be served but at low cost and low prices. ...
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The research approach is to appraise the impact of electronic customer relationship management (e-CRM) on customer profitability as mediated by customer loyalty and customer retention within the hotel industry sector of South Africa, and specifically for those hoteliers along the Vaal Meander. A sample of 341 middle to senior managers at various ho...
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... The following journals were analyzed: Journal of Marketing, Journal of Public Policy & Marketing, Journal of Marketing Research, Journal of International Marketing, Harvard Business Review. 4 For example, the decision on sales price, sales range, identification and measurement on customer profitability and distribution channels(Gajić, 2017;Pete & Réka 2010), customer satisfaction(Cugini et al., 2007), supporting planning activity(Phillips & Halliday, 2008) and the like. 5 The subject of the analysis were: Accounting Horizons, Accounting, Organizations and Society, Advances in Management Accounting, Contemporary Accounting Research, Cost Management (Journal of Cost Management), International Journal of Accounting Information Systems, Journal of Accounting Research, Journal of Applied Management, Accounting Research, Journal of Information Systems, Journal of International Accounting Research, Journal of Management Accounting Research, Management Accounting, Management Accounting Quarterly, Management Accounting Research, Strategic Finance. ...
This paper presents a model of interdependence of marketing information system and accounting information system activities, with the aim of harmonizing them while identifying activities on the basis of which the goals of information support for the execution of managerial tasks are completed. The lack of effort to create such models in the past can be explained by the tendency to present individual information systems as integral and sufficient for management needs. However, the growing management informational dependence of a company implies the need for more efficient ways to create and deliver relevant information and reports. The proposed model is based on a general management concept according to which, under the contemporary business conditions, three general groups of activities are performed: research and monitoring of market requirements, creation of value for customers based on previously identified needs and customer relationship management, and customer lifecycle management. On the basis of such grouped management tasks, marketing and accounting activities and their mutual conditionality were identified and unified though the proposed model.
... The marketing costs versus benefits management has particularities according to the main objective of the company: increasing the customer portfolio, and preserving (loyalty and retention) of existing customers. According to S. Pete and I. R. Cardos [5], the first objective entails higher investments, as the cost for acquiring new costumers is significantly higher than the one for retaining existing ones, thus, the second objective is often considered more competitive, financial wise. The fact that marketing is an important activity for enterprises has caused an increase in marketing related expenditure. ...
The paper assesses empirically the relationship between marketing expenditures and sales in a highly competitive industry, namely automotive, by analyzing the marketing expending of Automobile Dacia S.A. The first part of the paper presents the state-of-the-art and discusses the studies previously conducted which focus on the structure, dynamic and the impact of marketing expenses, while the second part consists in an empirical analysis conducted on Automobile Dacia S.A. marketing spending. The results of the study show that the company managed to increase its’ market share by adopting differentiated marketing for each geographical area. Although the research revealed that the allocation percentage from sales for marketing spending is relatively low (5-6%), the analysis conducted on the cost per unit sold reveals a share of 3% on marketing spending.
... Van Raaij (2005, p.373) point out that "Most firms nowadays are using customer relationship management (CRM) systems, which will calculate the customer profitability figures on the basis of sales and service data available to the system". Moreover, Stefan and Reka (2010) stated that CRM can aid firms to determine the essential products and services to the firm's customers along with identifying the degree of communication with the customers. Thus, CRM and CPA are very imperative areas which could support companies to analyze all activities associated with their customers. ...
... Those firms that understand which customers are more profitable and which are not are "armed with valuable information needed to make successful managerial decisions to improve overall firm's profitability". Consequently, Stefan and Reka (2010) stated that companies realized that traditional cost accounting systems do not provide accurate cost information for the decision making process. Hence, ABC was designed and gained popularity, because it focuses on the activities related to the costs and assigns activity costs to products, services or customers that consume resources. ...
... The costs accumulated in terms of customers were then identified with the products, based on sales volumes by customer". After revising numerous aforementioned readings (Guerreiro et al, 2008;Smith and Dikolli, 1995;Stefan and Reka, 2010;Hansen and Mowen, 2006;Van Raaij, 2003), there are several activities related to servicing customers and these activities can be classified into four patters; purchasing, accounting http://journals.uob.edu.bh procedures, sales, and service and all of these activities are existing in the pharmaceutical industry. ...
Cost management and profitability are the backbone of every organization. Cost management is a common approach used by managers to maximize the shareholder's wealth. It is an important element of overall business success and effective management, which helps the management to accurately forecast the cost before the process. The study aimed to examine the impact of cost management practices on firm performance in the manufacturing sector. Direct material (DM), Direct Labor (DL), Operating expenses (OE), and Factory overhead (FOH) were selected as the independent variable while Return on Assets(ROA) was used as a proxy for performance i.e. dependent variable. Fifteen firms from the manufacturing sector were selected for five years from 2017 to 2021. Panel data was collected through a simple random sampling technique. Results show that direct material and direct labor has a positive significant impact on firm performance. However, operating expenses and Factory overhead were found insignificant. The study concludes that direct labor and direct material are the major cost factors to reduce the cost and a source of profit maximization.
Accuracy and quality of customer cost information depend on the selection and execution of a contemporary strategy to cost accounting and administration that is responsive to fierce competition between economic units and incorporates resource consumption accounting. RCA, the latest generation of cost accounting and contemporary management software, enables managers to make informed choices and establish effective plans. This research intends to illustrate the influence of resource consumption accounting in rationalizing customer costs in the bags / Hilla facility by lowering product prices, detecting idle energy, and identifying the factory's best customers. In the Al-Hilla / Al-Hilla / Al-Hilla plant, a case-study technique was applied. Through this process, an evaluation of the laboratory's actual expenses and the application of resource consumption accounting are made using the laboratory's existing data for the year 2018. The research concluded that the effectiveness of customer cost analysis is contingent on the technique used and that accounting for resource consumption is one of the most effective and accurate methods for cost rationalization. The resource consumption accounting highlights the economic unit is resources, the entwined relationships between them, and their optimum usage. Furthermore, it finds idle (untapped) energy and eliminates it from goods and services to minimize prices. Thus, the researcher's most significant suggestions affirm that enough attention is given to the application of resource consumption, accounting for their contribution to attaining this aim.
This study aims to clarify the conceptual framework for customer profitability analysis based on the activity-based costing approach and its reality within the telecommunications sector in Algeria. The study was carried out using the descriptive and the analytical method applied to a sample of 72 employees including accountants, managers and customer service officials from mobile phone companies in the southeastern states of Algeria (El Oued, Ouargla, and Biskra) in the year 2020. The statistical program SPSS 24 was used in measuring and testing the hypotheses of the study. A high degree of awareness of the importance of conducting a customer profitability analysis was reached. Furthermore, the activity-based costing approach has contributed to a fair estimation of costs according to different customer tiers. However, this was met with a number of challenges. Institutions active in the telecommunications sector must work to bypass them in order to achieve the customer satisfaction.
CRM has been gaining popularity in all business sector organisations. It is playing key role in reshaping and
regulating the traditional business practices across globe. CRM being customer-centric strategy attracts heavy
investments to strengthen the customer relationships. However, not all organisations are able to reap
benefits due to various reasons. One of the reasons is not having clear understanding of CRM, its
effectiveness or implications. Many organisations incorrectly perceive CRM to be a standalone technological
investment. Focussing only on CRM technology and its usage in enhancing customer relations has obvious
limitations as the umbrella of CRM concept is exceptionally wide in reach. It is considered to be driven by
combination of resources like People, Process and Technology. This research focuses on effectiveness of
CRM beyond technology implementation from organisational standpoint in dealing with customers. Four
dimensions are identified that result in CRM effectiveness at an enterprise-wide level i.e. Customer Selection
Orientation, Business Cycle Orientation, Cross-Functional Integration, and Dual Value Creation. This study
involves questionnaire survey of 35 IT Services Firms in Pune. Data collected is analysed using Binomial
test in SPSS. Results confirm these dimensions to be positively triggering CRM effectiveness in Reality and
further providing substantial base for better understanding of CRM concept. This research implies that
closely following the CRM effectiveness approach will potentially help organisations in monitoring their
CRM activity, improving CRM effectiveness and would also provide considerable room for curbing CRM
failure possibilities.
Keywords: Customer Relationship Management, CRM Effectiveness, Customer Selection Orientation, Dual
Value Creation, Cross-Functional Integration, Business Cycle Orientation, CRM Software, CRM Failure
Günümüz dünyası her alanda olduğu gibi ekonomik, sosyal ve siyasal alanlarda da bir yenilenme, değişim ve dönüşüm süreci yaşamaktadır. Böyle bir süreçte işletmelerin rekabet avantajı yakalamak için müşteri odaklı stratejileri tercih ettikleri görülmektedir. Rekabet avantajı sağlamak için kullanılan klasik yönetim ve yönetim muhasebesi anlayışlarının yetersiz kalması stratejik yönetim ve stratejik yönetim muhasebesi anlayışlarının oluşmasına zemin oluşturmuştur. Müşteri odaklı stratejileri tercih eden işletmelerin hedefleri uzun vadede müşteri tatmini ve karlılık olmaktadır. Ancak işletmelerin bu noktada dikkat etmesi gereken, bütün müşterilerin katma değer oluşturmamasıdır. Bu yüzden müşterilerin veya müşteri gruplarının satış, kar veya kazançlarının belirlenmesine ihtiyaç duyulmuştur. Bu ihtiyaç sonucunda yeni bir yönetim muhasebesi aracı olan müşteri muhasebesi kavramı ortaya çıkmıştır. Bu çalışmanın amacı müşteri muhasebesini, sürecini ve stratejik yönetime sağlayacağı bilgileri ayrıntılı bir şekilde açıklamaktır.
