Usage of Customer Profitability Management Tools on the Textile Market of Bosnia and Herzegovina

Abstract

The modern market puts new demands on companies in terms of customer segmentation and relations with them. Companies facing the pressure of globalisation must adopt new views in the domain of adaptation of all functions in the company, which have a trend of integration, including the function of marketing and that of accounting. One of the results of the integration of company functions is, among others, the concept of customer profitability management. The subject of this paper is analysis of the profitability management tools of domestic companies operating on the textile market of Bosnia and Herzegovina. The aim of the paper is to point out the necessity of applying customer profitability management tools as one of the ways that companies adapt better to changes that occur on the textile market of Bosnia and Herzegovina. The methods used in this paper are analysis, synthesis, and generalisation in the part related to the literature review. Statistical methods are used for analysis of data collected on the basis of research conducted on a simple random sample of domestic companies operating on the textile market of Bosnia and Herzegovina.