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Background to the problem (highlight the key issues/symptoms that have led to the problem/opportunity arising – use point form to summarise). · Difficult for energy companies to build customer loyalty. There are multiple energy company now operating in Australian energy industry, which offer customer many choices to switch within this industry. We will focus on top 5 companies(AGL, TRU, Origin, Red, Simple) which have best reputation in this industry(Australia would gain from energy savings: global experts, 2013). Customer loyalty normally required high quality of customer service and competitive advantage. however, high similarity of energy product now causing low competitive force in this industry. How to create unique corporate image and enhance service/products quality are the main issue that energy company now facing to. · High customer switch rate between energy companies. The turnover rate of energy customer is much higher compare with other industry(Walsh, Groth and Wiedmann, 2005), which because low switch barrie and high similarity of service/products. · High product similarity. As resource industry, it is difficult to avoid product similarity(Sort et al., 2002). At the same time, it is limited for business to enhace their service quality as well. Because of resons list above, the main strategy that energy companies are using now is price leader strategy. They attract customer only rely on lower price compare with their competitors. However, the single strategy only make a vicious circle. Management have to deal with these issues and enhance competitive advantage. |
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Management decision (what is the decision management have to make that research will assist with? – in question form). What kind of strategy that our company can use to increase customer loyalty and enhance competitive advantage. |
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Research question (from a research perspective what information is required to answer the management problem?). · Main question: What can energy companies do to reduce tureover rate of customer by build customer loyalty and enhance conpetitive advantage. · Section Question 1: Why is our company have higher customer switch rate compare with other four ompanies? · Section Question 1: What should our company do to build customer loyalty. |
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(Information) Objectives (specific information required to address the research problem – must be in objective form. As a guide, minimum of three and no more than six). · To identify the market share for own company in energy industry · To determine the relationship between customer satisfaction and high turn over rate. · To understand the main factors that influence customers’ switch behaviour in energy industry. · To make sure what strategy our company can use to enhace customer loyalty and competitive advantage. |
