Академический Документы
Профессиональный Документы
Культура Документы
425-430
TI Journals
ISSN:
2306-7276
Saeid Abdolmanafi
PhD, Business Administration, Assistant Professor, Payam-e Noor University
Ahmad Sarlak
Faculty Member, Department of Economics, Islamic Azad University, Arak, Iran
.
*Corresponding author: vahdati4643@yahoo.com
Keywords
Abstract
Relationship Marketing
Customer Relationship Management
Business performance
Efficient management of customer relationship is one of the most important challenges in business
competition. Organizations require some information about who are their customers, what are their
expectations and needs and how should resolve their requirements. Aim of this study is reviewing effect of
customer relationship management on relationship marketing and business performance in banks and
financial institutions in Golpayegan city. Customer relationship management were measured based on 3
criteria, internet services, customer support and marketing support. Relationship marketing was evaluated
based on 4 criteria, utility, projectability, legitimacy and reciprocity and business performance was essayed
based on 4 criteria of balanced scorecard consist of financial, customer, internal process and learning and
growth. Data were collected by three questionnaires, situation of customer relationship management
implementation and level of relationship marketing and performance evaluation and they were analyzed by
using SPSS21, AMOS20 software. Results indicated that customer support and marketing support have
influenced on relationship marketing among criteria of customer relationship management, and also
relationship marketing has impact on four criteria business performance.
1.
Introduction
An understanding of how to manage customer relationships effectively has become an important topic for both academicians and practitioners in
recent years. Organizations are realizing that customers have different economic value to the company, and they are subsequently adapting their
customer offerings and communications strategy accordingly. Thus, organizations are, in essence, moving away from product- or brand-centric
marketing toward a customer-centric approach [12]. A managerial strategy that helps organizations collect, analyze, and manage customer
related information through the use of information technology tools and techniques in order to satisfy customer needs and establish a long term
and mutually beneficial relationship [6]. CRM is the core business strategy that integrates internal processes and functions and external networks
to create and deliver value to targeted customers and, finally, increase profits [16]. The deregulation of the financial industry, the expansion of
the business area of global financial institutes, and the diversification of consumers' needs for financial services brought about intense
competition in the retail bank industry. Such keen competition made retail banks transform their resources and capabilities from being productor service-centered into customer-centered. As a customer centered IT-driven strategy, Customer relationship management (CRM) has been
increasingly adopted by corporations, including retail banks, and the firms have started to invest heavily in CRM [8]. The final goal of
conducting CRM is to enhance business performance, and therefore, businesses need an objective performance scale to enable a detailed
evaluation. The balanced scorecard (BSC) is an overall performance management system; it evaluates business performance according to the
following four perspectives: financial, customer, internal processes, and learning and growth. The BSC uses both financial and non-financial
indicators to evaluate business performance and gives enterprises an overall in-depth understanding of business operation and performance [16].
Thus, this study uses the four perspectives of the BSC to measure business performance. This study focuses on banks and financial institutions in
Golpayegan to explore the CRM influence on the RM and business performance.
2.
Review of literature
426
International Journal of Economy, Management and Social Sciences Vol(3), No (8), August, 2014.
namely, information collection, data storage, data summarization, and data display and application. Ming and Chen (2002), on the other hand,
summarized CRM actions into three major functions: Internet service, customer support, and marketing support [16].
2.2 Relationship marketing
Relationship marketing (RM) is marketing seen as relationships, networks and interaction [5]. Berry (1993) defined Relationship marketing to
Attracting, maintaining, and in multi-service organizations enhancing customer relationships [10]. For Porter (1993), RM is the process whereby
the buyer and the provider establish an effective, efficient, enjoyable, enthusiastic and ethical relationship one that is rewarding to both parties
[5].
Relationship marketing also involves:
monitoring customer satisfaction
taking action towards reduction of risk and uncertainty perceived by the client
implementing actions aiming at customer loyalty and long-term relationships
Satisfaction of customers on both short and long-term [4].
Wu and Lu (2012) proposed the model for evaluating the RM that includes (1): utility, a necessary condition for implementing further mutualinterest relations so that the customer will be willing to maintain long-term and positive relations with the original supplier [16]. (2)
projectability, defined as expectations respecting the future in the exchange linking (Projectability in relationship consists the notions of (1)
planning (2) adaptation (3) preservation of the relation (4) expectations for relations and (5) timing of exchange [1]. (3) legitimacy, which will
reduce the risk of future uncertainty [16] and (4) reciprocity, a continuing exchange relation based on mutual trust [16].
2.3 Business performance
Business performance is an overall concept used to display the final result of the operation activities of an organization; it is also an index for
evaluating the level of project [16]. Robert Kaplan of Harvard University and David Norton, an American management consultant, have
proposed the balanced scorecard as a means to evaluate corporate performance from four different perspectives:
the financial perspective, the internal process perspective, the customer perspective, and the learning and growth perspective [9].
1- The financial perspective indicates whether the transformation of a strategy leads to improved economic success. Thus, the financial measures
assume a double role. On one hand, they define the financial performance a strategy is expected to achieve. On the other hand, they are the
endpoint of cause and effect relationships referring to the other BSC perspectives.
2-The customer perspective defines the customer/market segments in which the business competes. By means of appropriate strategic objectives,
measure, targets and initiatives the customer value proposition is represented in the customer perspective through which the firm/business unit
wants to achieve a competitive advantage in the envisaged market segments.
3- The internal process perspective identifies those internal business processes that enable the firm to meet the expectations of customers in the
target markets and those of the shareholders.
4- Finally, the learning and growth perspective describes the infrastructure necessary for the achievement of the objectives of the other three
perspectives. In this case, the most important areas are qualification, motivation and goal orientation of employees, and information systems [3].
3.
Research background
[12] under the title The Customer Relationship Management Process: Its Measurement and Impact on Performance. This paper aims to
examined was: (1) to conceptualize and operationalize the process of CRM implementation, (2) to determine whether the implementation of
CRM processes is positively linked to performance, and (3) to identify some key moderators of the relationship between CRM processes and
performance. The first key outcome is a theoretically sound CRM process measure that outlines three key stages: initiation, maintenance, and
termination. The second key result is that the implementation of CRM processes has a moderately positive association with both perceptual and
objective company performance.
[13] have done a research about customer relationship management: conceptualization and scale development. The purpose of this study was
development of reliability and validity criteria for customer relationship management and also reviewing its effect on performance of HongKong bank branches. It was considered four components for customer relationship management that consist of key customer focus, customer
relationship management organization, technology-based customer relationship management and knowledge management, and it was examined
its relationship with business performance include marketing (trust and customer satisfaction) and financial performance (return on investment
and return on sales). Findings were done by using data 215 Hong-Kong financial firms and its clear that there is positive relationship between
customer relationship management and business performance and also between customer relationship management and marketing performance
(trust and customer satisfaction) and financial performance (return on investment and return on sales).
[2] were done study about priority in customer relationship management, its effect for competitive advantage and performance. In this study,
customer-relating capability was reviewed in three related components: 1. Orientation 2. Configuration 3. Information. In this study, it was given
customer-relating capability influenced on situational advantages in comparison with competitors by firm competitive strategy. Relative
performance of company was reviewed in three components: investment increasing, customer maintain and corporate profitability. Also
balanced variables of this study are rate of personalized potential, competition severity, consumed marketing against industrial ones.
[13] were examined a study about effect of relationship marketing orientation on business performance on service-based economy. In this study,
it was examined relationships marketing orientation include six components: 1. Trust 2. linkage 3. Communications 4. common values 5.
Empathy 6. reciprocity.
427
Investigating The Impact Of customer relationship management On Relationship marketing and Business Performance
International Journal of Economy, Management and Social Sciences Vol(3), No (8), August, 2014.
Business performance was reviewed in four factors: investment increasing, market share, return on investment and customer maintenance. This
study was done among 279 service firm in Hong-Kong and finally, its clear that there is positive relationship between relationship marketing
orientation and business performance.
[7] Under the title The impact of customer relationship marketing on the firm performance: a Spanish case. The purpose of this research is to
produce some evidence of the association between customer relationship marketing strategies and the market and economic performance of the
firm. The findings suggest that the effect of attraction and loyalty programs is greater on market performance than on economic performance.
Furthermore, the results show that attracting customers through a good service quality and reaching a good position in the market have greater
impact on economic results than loyalty.
[16] Under the title The relationship between CRM, RM, and business performance: A study of the hotel industry in Taiwan. This study aims
to investigate the implementation of customer relationship management (CRM) and its effect on relationship marketing (RM) and business
performance, through an analysis of the hotel industry in Taiwan. This study determined that implementing CRM strategies will have a
significant and positive influence on RM effects, thus furthering the influence on business performance, and that the most advantageous CRM
strategies differ for hotels and B&Bs.
[15] was examined customer relationship management and marketing performance and they concluded that there is a weak relationship between
marketing performance and customer relationship management in Iran Banking Industry. On the other hand, results indicated not only banks
were not familiarity with technology-based customer relationship management, but also they were considering less logic about customer
relationship management. Variables of knowledge management and technology-based customer relationship management have lower average
related to other variables of CRM, i.e. key customer and customer relationship management organization and this subject indicated that banks
have not optimal situation in these two dimensions related to other dimensions. Other variables have higher average than theoretical dimensions
average such as services quality and trust dimensions and they are in more optimal place.
4.
Research hypotheses
H1a. Implementing Internet services in the CRM system will have influence on the RM .
H1b. Implementing customer support in the CRM system will have influence on the RM
H1c. Implementing marketing support in the CRM system will have influence on the RM .
H2a. RM has influence on the financial aspect of business performance.
H2b. RM has influence on the customer aspect of business performance.
H2c. RM has influence on the internal process aspect of business performance.
H2d. RM has influence on the learning and growth aspect of business performance.
Business performance
RM
CRM
Financial
Utility
Internet service
Projectability
Customer
legitimacy
Customer support
reciprocity
Internal process
Marketing support
Learning and
growth
Figure1. Conceptual model [16]
5.
Methodology
Descriptive studies involves collecting data in order to test hypotheses and answer questions concerning the current status of the subject(s) of a
study. Typical descriptive studies are concerned with the assessment of attitudes, opinions, demographic information, conditions, and
procedures. In this study the researcher chose the analytical descriptive method using an applied manner.
5.1 Sample
The population of the study is the whole of the banks and financial institutions in Golpayegan city. Focus on managers and Employees. 300
questionnaires distributed as a sample of the study, only 250 questionnaires returned.
5.2 Study Tools and Data Collection
The data collection, manners analysis and programs used in the current study are based on two sources:
428
International Journal of Economy, Management and Social Sciences Vol(3), No (8), August, 2014.
1. Secondary sources: books, journals, articles, thesis to write the theoretical framework of the study.
2. Primary source: the questionnaire that was designed to reflect the study objectives and questions. In this study, both primary and secondary
data were used. Data for the model collected via questionnaire. This questionnaire was adapted from the survey questionnaire [16]. The
questionnaire instrument sections are as follows:
Demographic variables: The demographic information was collected with closed-ended questions, through (4) variables.
Cause & effect factors: this section measured the cause and effect factors of 8 variables such as: Internet service function thorough (3) items,
Customer support function thorough (3) items, Marketing support thorough (3) items, Relationship Marketing thorough (9)items, Financial
thorough (4) items, Customer thorough (4) items, Learning and growth thorough (4) items, Internal process thorough (3) items. Point Likert
scale was used to measure the variables of the mode.
No. Dimension
Internet service
Customer support
Marketing support
Relationship
marketing
Financial
Customer
International process
Learning ang growth
Number Of Items
3
3
3
9
4
4
4
3
Coefficient
0.898
0.888
0.929
0.762
0.863
0.87
0.905
0.896
No.
1
Variable
Age
Class
Less than 30 years
Frequency
56
Percentage
22.4
30-40 years
109
43.6
41-50 years
69
27.6
16
6.4
250
100.0
Male
209
83.6
Female
41
16.4
250
100
Total
2
Gender
Total
Educational Level
diploma
71
28.4
Associate Degree
59
23.6
B.A
93
37.2
M.A
27
10.8
Total
4
marital status
Total
250
100
single
37
14.8
married
213
85.2
250
100
429
Investigating The Impact Of customer relationship management On Relationship marketing and Business Performance
International Journal of Economy, Management and Social Sciences Vol(3), No (8), August, 2014.
Hypothesis
Variables Relation
p -value
Test Result
H1a
0.168
0.217
rejected
1.031
supported
0.288
supported
H2a
Relationship marketing
Financial perspective
1.048
supported
H2b
Relationship marketing
Customer perspective.
0.913
supported
H2c
Relationship marketing
Internal process perspective
0.472
supported
H2d
Relationship marketing
Learning and growth
perspective.
1.239
supported
H1b
H1c
Internet service
Estimate Value
Customer support
0.168
Marketing support
0.288
1.031
Relationship marketing
1.048
Financial
Customer
0.913
0.472
1.239
Internal process
430
International Journal of Economy, Management and Social Sciences Vol(3), No (8), August, 2014.
6. Conclusion
In trade world, it was focus on customer relationship management concept. Although in past customer servicing were in lower degree in
organizations, todays organizations are considered their customers in center of all activities, and they are revised marketing strategies and their
sales based on them. Whatever its changing in todays, its expanding authority to customer. CRM have more importance in servicing
organizations such as banks, transportation industry, medicine services, insurance, hotels, etc. Since customer take account part of addressed
service in servicing process, it should considered strategies to personalize these services for each customer. Development of each CRM system
are very complex that it was required a subtle planning, modeling and execution to recognize and analyze main advantages. In this study, we
apply banks and financial institutions as goal of study to review effect of CRM on relationship marketing and business performance. Findings
indicated that administration of CRM strategies have a positive and meaningful effect on relationship marketing, and then it leads to increase
effect on business performance. Results indicated that execution of customer support and marketing support in CRM strategies in banks and
financial institutions have positive and meaningful impact on relationship marketing that it was confirmed in [16]. Moreover, relationship
marketing have positive impact on four aspects of business performance in banks and financial institutions. This result, positive and meaningful
impact on relationship marketing on business performance, was confirmed in [13], [7] and [16]. Therefore, except type of investment in banking
industry, higher impact of relationship marketing lead to impact of higher business performance.
References
[1] Chien, C.S., Moutinho, L. .(2000). "The external contingency and internal characteristic of relationship marketing". Journal of Marketing
Management 16 (5), 8395
[2] Day, G.S., Van den Bulte, C. (2002" Superiority in Customer Relationship Management: Consequences for competitive advantage and
performance", Cambridge, MA: Marketing Science Institute
[3] Figge, F.,Hahn, T., Schaltegger, S. & Wagner, M. (2002): "The Sustainability Balanced Scorecard - Linking Sustainability Management to
Business Strategy", Business Strategy and the Environment, (forthcoming)
[4] Fotea, I, Fotea, S, Poli, E, (2011), Applying Relationship Marketing Principles Based On Customers Satisfaction Research In a Direct
Marketing Company Inromania, international journal of business and management studies, Vol 3, No 2,pp 109-119.
[5] Gummesson , E. (1994), "Making relationship marketing operational", International Journal of Service Industry Management, Vol. 5, No.5,
pp.5-20.
[6] Hung, S. Y., Hung, W. H., Tsai, C. A & Jiang, S. C., (2010), Critical factors of hospital adoption on CRM system: organizational and
information system perspectives, Decision Support System Journal 48, pp.592-603.
[7] Izquierdo. C.C, Cillan. J.G, Gutierrez. S.S, The impact of customer relationship marketing on the firm performance : a Spanish case,
Journal of Services Marketing 2005; 19: 234-244.
[8] Kim, H. S., Kim, Y. G & Park, C. W., (2010), Integration of firms resource and capability to implement enterprise CRM: A case study of a
retail bank in Korea, Decision Suport Systems 48, pp. 313-322.
[9] Martinsons, M., Davison, R., Tse, D.(1999). The balanced scorecard: a foundation for the strategic management of information systems,
Decision Support Systems,NO. 25, p.71-88.
[10] Palmatier, Robert. w ,(2008), Relationship Marketing, Printed in the United States of America, Published by Marketing Science Institute,
1000 Massachusetts Ave.,Cambridg.
[11] Parvatiyar, A., & Sheth, J. N. (2001). Customer relationship management: Emerging practice, process, and discipline. Journal of
Economic and Social Research, 3(2), 134.
[12] Reinartz, W., Krafft, M., & Hoyer, W.D. (2004). The CRM Process: Its Measurement and Impact on Performance. Journal of Marketing
Research, vol. 41, no. 3, pp. 293-313.
[13] Sin, L.Y .M., Tse, A .C .B., & Yim, F .H .K. (2005). CRM conceptualization and scale development", International of Journal of
Marketing, 39(11/12), 1264-1290.
[14] Sin, L.Y.M, Tse, A.C.B, Yau, O.H.M., Chow, R.P.M, Lee, J.S.Y. and Lau, L.B.Y. 2005, "Relationship marketing orientation : scale
development and cross_ culture validation", Journal of Business Research, Vol.58, pp.185-194 .
[15] Taherpour Kalantari, H., Tayebi tolo, A,. (1389), Relationship between Customer Relationship Management and Performance," Journal of
Business Management Perspective, No. 1, pp. 122-109.
[16] Wu, sh., Lung Lu,. Ch (2012), The relationship between CRM, RM, and business performance: A study of the hotel industry in Taiwan
International Journal of Hospitality Management , vol. 31, pp. 276285.