Chapter 1 Overview of the Research

1.1 Introduction
Customer relationship management (CRM) is a business strategy to know customers need and behaviour in order to develop stronger relationships with them. According to Chuchuen and Chanvarasuth (2011), CRM had been brought into various types of business industrial to help gaining an insight into the behaviour and value of customer to build a relationship with their customer. It shows that CRM is crucial for every business as the customer is the most important part of the business while good customer relationships are at the heart of business success. This business strategy depends on bringing together lots of pieces of information about customers and market trends so selling and marketing product will more effective.

1.2 Why is it Important to Understand the Issue in Question?

It is important to understand the issue from our research topic because in the commercial world, the importance of retaining existing customers and expanding business is important. Besides that, it is because there are no other things to a customer then being understood.

1.3 Gaps in the Literature

In this research we found that CRM was applied in many types of business and it is important for them. CRM help business to increased sales, identify customer needs, and so on. Rababah, Haslina and Huda (2011) mentioned that the reason why an organization adopting CRM to improve the profitability by reducing costs and increasing revenues through improving customer satisfaction and loyalty is because afraid of losing the customer. Customer satisfaction and loyalty will brings profit to an organization.

1.4 Research Problem

The purpose of this study is to identify the importance of CRM throughout all the business. Other than that, the purpose of this study is to identify the CRM, what it needs to do to get more customers and reducing costs.

1.5 Context for the Research

The context for the research is the factors of CRM faced. In this context, independent variables such as customer loyalty, customer acquisition, data utilization and access, and technological experience, while dependent variable is CRM adoption.

1.6 Definitions
There are several key concepts that we want to identify from the research topic. Customer Relationship Management (CRM) is one of the marketing concepts which been use wisely in every field of business because it help building long-term and keep up customer relationship (Chat and Pisit, 2011). Ronald and Florida (2010) states that there are five specific tasks which firms need to practice to create and to use these relationships which is acquire, retain, develop, consult and convert customers.

1.7 Location of the Study

Labuan is a federal territory in East Malaysia which it is located off the coast of the state of Sabah. Labuans capital is Victoria and it is best known as an offshore financial centre offering international financial and business services which known as Labuan IBFC. So, there are plenty of businesses and services conducting in Labuan while we already select 95 companies among all those company in Labuan to help in our research.

1.8 Brief Overview if the Methodology

To complete our research, we have prepared 95 sets of questionnaire to be distributed and be filled by the 95 companies which has been chosen. After that, the questionnaire will be collect and will be analyze to get further analysis. After completed the analysis, we might clear of the CRM system which appear in the relevant company.

1.9 Expected Contribution to Knowledge

After completing this study, the member of this study will more understand the important of CRM system in a company. The member of the group will clear about this marketing theory and they might apply this knowledge or tools in their carrier in the future to help their company to acquire and retain their customers which might bring benefits to the company as they already understand the tools and knowledge about the CRM system.

1.10 Paper Outline

This research paper will consist of five chapters. Chapter 1: Introduction. In this chapter, we will discuss about the issues in the question, gaps in the literature, research problem, context of the research, definitions, location of the study, brief overview if the methodology, contribution to knowledge and lastly is the paper outline. Chapter 2: Literature Review. This chapter will be discussing the literature review regarding on our research based on the focus on our research topic which we gather all the information from text book, journals and articles. Chapter 3: Methodology This chapter we will discuss about the research instrument, specify domain of construct, reliability and validity in the research, measurement scale, we will also generate sample items, doing hypothesis development, research framework, scale and constructs, purifying the measure, pilot testing, data collection method, sample size of research, data processing, data analysis and finally we will discuss the limitation of our research. Chapter 4: Results and Discussions In chapter 4, we will discuss the descriptive analysis, do the analysis of data, factor analysis, correlation matrix, and lastly is the summary of the discussion.

Chapter 5: Conclusion, Theoretical Implications, Managerial Implications, Limitations of Research and Future Research. In this last chapter we will discuss about the conclusion regarding to the research hypothesis, research problem conclusion, implication of theory and practice, limitation of the thesis, future and finally is the revised model.