FICHE DE LECTURE

--------------------------------------------------------------------------------

ARTICLE : The Impact of Customer Relationship Management on Customer

REVUE : European Journal of Business and Management

ANNEE : 2014

AUTEUR : Zakaria Ahmad Mohmmad Azzam

MOTS CLES : CRM, Customer Satisfaction, Banking Industry, Services Marketing, Jordan.

TERRAIN : Jordanian banks in Amman city.

QUESTIONS DE RECHERCHE :

To what extent do Jordanian banks apply the concept of CRM?

What are the main elements of CRM that can achieve customer satisfaction in the banking industry in
Jordan?

What is the relationship between CRM and customer satisfaction in the banking industry in Jordan?

HYPOTHESE CENTRALE DE RECHERCHE :

Ho: There is no statistical significant relationship between customer relationship management and
customer satisfaction in banking industry in Jordan.

HYPOTHESES DERIVEES DE RECHERCHE :

Ho1: There is no statistical significant relationship between services quality and customer satisfaction
in banking industry in Jordan .

Ho2: There is no statistical significant relationship between customer database availability and
customer satisfaction in banking industry in Jordan .

Ho3: There is no statistical significant relationship between availability of solving customer problems
service and customer satisfaction in banking industry in Jordan .

Ho4: There is no statistical significant relationship between behavior of bank employees and customer
satisfaction in banking industry in Jordan.

1
Ho5: There is no statistical significant relationship between physical environment and customer
satisfaction in banking industry in Jordan.

Ho6: There is no statistical significant relationship between social network interaction and customer
satisfaction in banking industry in Jordan .

THEORIES MOBILISEES:

* (Long, et.al.2013) Major critical elements of CRM are interaction management, relationship
development, customer service , employees’ behavior and physical environment.

* (Zakaria Ahmad Mohmmad Azzam 2014 ) As can be seen CRM elements, as an independent
variables represented on the left side of the model with six main elements i,e services quality,
learning customer needs and complaints, producing solutions peculiar to customer, behavior of bank
employees, physical environment of the bank and social network capabilities of the bank. On the right
side of the model the dependent variable is represented by customer satisfaction.

CONCEPTS MOBILISES :

*Customer Relationship Management :

- (Ismail & et. al, 2007, p.16; Jayachandran & et. al,., 2005) the concept‘’ Customer Relationship
Management’’ (CRM) has been brought to attention in late nineties, especially among the academics
and partitions. The new concept has directed attention towards various vital aspects, including the
necessity of direct relationship between customers and markets, the important of keeping current
customer, as well as the inevitability building long-term relationships with customers instead of the
customer-oriented transaction method in order to augment the profitable of the institutions,
especially in today’s increasingly competitive economy .

- ( Swift, 2000 ) defined CRM as a method of understanding the customer behavior through intense
communication with him/her to improve the performance which is represent in attracting the
customer, keeping him/ her and increasing his/ her loyalty and profitability.

- ( Stone & Findlay, 2001) defined CRM as the organization carrying out a lot of information about the
customer from various resource and keeping it in order to divide the territories, analyze and reuse.

- (Fross & Stone, 2001 ) defined CRM as the company use of its abilities in the field of research
methodology, technology e-commerce in order to manage customer relationships.

- (Parvatiyar & Sheth, 2002 ) mentioned that CRM is a comprehensive strategy that includes the
process of acquiring certain customers, keeping them and cooperating with them to create a
distinguished value for both the company and the customer. This strategy requires integrating the
functions of marketing, sales, customer’s service and exposition chain so as to achieve the highest
competence and efficiency in delivering value to the customer.

- ( Payne & Frow, 2005) defined CRM as a strategic method related to creating a distinguished value
for the contributors through improving good relationships with the main customer’s categories, as it
(CRM) seeks to unify the strategies of marketing using relationships and information technology to
create profitable, long-term relations with customer and other parties. This value is created through
providing good chances to use data information to understand customers and provide them with

2
value. Consequently, this requires the integration of customers, individuals and marketing abilities,
which happens through information, technology and applications.

- (Kumar & Reinartz, 2006) agree with the above definition that CRM is merely a strategic process by
which the institution’s more profitable customers are chosen, and interactions between this
institution and these customers is determined, in order to achieve the goal of maximizing the or the
present and future values for customers.

- (Ramaseshan, 2006) defined CRM from the employment point of view as a process of achieving a
continuous dialogue with each customer or their own, using all the available means to know the
quantitative expected response of that customer as a result of practicing marketing activities to the
degree that maximize the general profitability of the organization.

- (Zablah & el.al, 2004 ) demonstrated that there are five points of view for CRM. The points of view
are the process, the strategy, the philosophy, and the technology.

- ( Hisham, Soliman,2011) “CRM is the activity which is interested in the main customers of the
organization, in the efficiency of organization and in the customer knowledge management, with the
aim of enhancing the effectiveness of the organization decisions related to customers, leading,
therefore, to the improvement of the marketing performance in particular and the organizational
performance in general."

---------> writers have not reached an agreement on the concept of CRM.

* Satisfaction and loyalty :

- Bowen and Chen (2001) argue that having satisfied customers is not sufficient. This is because
customer satisfaction needs to have direct impact on customer satisfaction and loyalty.

- Sivadas and BarkerPrewitt (2000) stress that there is a rising recognition that the last objective of
customer satisfaction measurement should be customer loyalty.

* Interaction Management:

- According to the Brown and Gulycz ( 2002), if an organization willing to make a stable relationship
with its customers, there are different ways to have an interaction with them including interaction
along touch points and distribution channels.

- (Prahalad and Ramaswamy, 2001) The main purpose is to find out how and when the customers
would like to interact with the organization .

* Relationship Development :

- According to Ford (1980), the study of relationship development primarily involves research into
structure and processing of the relationship between customer and supplier.

- Hakansson and Snehota(1995) argue that the relationship development process an interaction
where connections have been developed between two parties.

* Quality of Services : According to Gee et al.(2008) in an attempt to understand the factors that
induce customer satisfaction , the concept of service quality is increasingly common in the literature.

3
Studies show that service quality has a positive effect on consumer satisfaction and also has
significant relationship with customer satisfaction and loyalty , and profitability of the firms.

* Behaviors of the Employees :

- (Zakaria Ahmad Mohmmad Azzam 2014 ) An Employee that conforms with organization behavior
and value is likely to strengthen the connection between the customer and the firm.

- According to the works of Hanley (2008 ) and Coulter ( 2002 ) , the effect of positive employees
behavior could be increasing speed of response to customer and ensure employees are friendly and
respectful to customer which enhance customer satisfaction toward the services provided.

* Physical Environment : (Zakaria Ahmad Mohmmad Azzam 2014 ) Every customer is expecting that
each bank is taking into consideration the importance of physical environment which is represented
by decorations, aisles, waiting areas, Air conditioning, lightening, and other facilities that are available
for customer convenience. where the core service is intangible issue to attract and convince
customers it is necessary to concentrate on physical issues which can satisfy them.

* Customer Relationship Management In The Banking Industry :

- (Sendogdu, 2006) There are four important stages of following customer relationship management
strategy in the banks. The first step is the stage of ‘’planning, targeting’’. It necessary to make a
documented strategy stating how customer relationships are wanted to be directed. The second step.
‘’design’’, allows preparing the prime designs supporting the bank strategy. A lot of banks ignore this
step, but it is important for coordination and thus success. The third step is ‘’building’’. At this stage,
projects for changing are started. The fourth step is ‘’ running and developing the programmes ‘’.
When the first projects for start to give fruits, it should not be thought that the work is over . it is
necessary to place the change in the enterprise, to develop the activity and make the strategy more
certain.

- Bohling et al. (2006) develop a number of criteria to implement CRM successfully in different area of
industry such as : manufacturing, communication, financial and others.

APPROCHE METHODOLOGIQUE :

* descriptive + pilot test + questionnaire self administered with 2 main parts ( demographic variables /
elements of customer relationship management and its impact on customer satisfaction based on
Likert).

* A randomly selected customer of different banks operating in Amman city was the sample of the
study. A total of 600 questionnaires were self administered distributed to the sample which was
randomly selected. Only 526 usable survey forms returned by respondents (87.5 % response rate).

* Scale Reliabilities : To find out the degree of effect between the dependant variable (customer
satisfaction) and independent variable (CRM elements; service quality, customer database, solving
customer problems and complaints, employee’s behavior, physical environment and social network
interaction), correlation and regression analysis is done (Gronbanch’s Alpha / R²). For this purpose
SPSS program is used.

CONCLUSION / QUESTIONS OUVERTES: Solving customer problems and complaints is the most
influential factor, followed by service qualityand banks employees behavior are the most influential

4
factors responsible for customer satisfaction. The least influential factor responsible for customer
satisfaction is social network interaction.