CRM/e-CRM Effects on Banks Performance and Customer-Bank Relationship Quality

CRM/e-CRM Effects on Banks Performance and Customer-Bank Relationship Quality

Abbas Al-Refaie (Department of Industrial Engineering, The University of Jordan, Amman, Jordan), Mohammad D. AL Tahat (Department of Industrial Engineering, The University of Jordan, Amman, Jordan) and Nour Bata (Department of Industrial Engineering, The University of Jordan, Amman, Jordan)
Copyright: © 2014 |Pages: 19
DOI: 10.4018/ijeis.2014040104
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Abstract

This research aims at examining the effects of customer relationship management (CRM) and electronic CRM (e-CRM) on banks performance in Jordan using structural equation modelling. Two structural models, I, and II are developed. Fourteen reputable Jordanian banks are selected. Results of Model I show that: (1) internet service function and customer support have significant influence on relationship management (RM), (2) marketing support function has insignificant influence on RM, which indicates, and (3) RM has positive influence on business performance; learning and growth, customer satisfaction, internal process, and financial perspective. Results of Model II reveal that: (1) the e-CRM significantly influences customer based-service attributes, (2) the e-CRM directly related with relationship quality (RQ), and indirectly affects RQ through customer based-service attributes, (3) RQ significantly influences customer lifetime value (CLV). In conclusions, although Jordanian banks should direct more marketing support to enable customer communicate with banks using e-CRM in a fast, easy and efficient way.
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Conceptual Framework

In order to assess the effectiveness of CRM/e-CRM implementation in Jordanian banking sector, two models; II, and I are proposed and their corresponding relationships will be examined:

  • Model I: The effect of implementing CRM on business performance

    • 1.

      Customer Relationship Management: Assisted by technology and information, CRM integrates internal and external activities of banks to develop positive and interactive customer relationships and achieve banks’ goals (Amrit, 2001). In this research, CRM actions are divided into three major functions: internet service, customer support, and marketing support (Ming and Chen, 2002). Table 1 displays the measures of CRM functions efficiency;

Table 1.
Measures of CRM functions efficiency
ItemMeasure
Internet Service Function (ISF)Online registration
Internet phone
Online real-time human response service
E-mail reply
Search engine
Customer support function (CSF)Reservation management
Customer profile management
Customer type analysis
Firm information query
Assisting internal operations
Marketing support function (MSF)Product/ service
New product/ service
Market research and analysis
Product/ service promotion

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