CRM: conceptualization and scale development

Abstract

PurposeTo develop a reliable and valid measuring scale for customer relationship management (CRM).Design/methodology/approachA series of studies were conducted for the development and validation of multiple measures for the dimensions of CRM. Once the dimensions of CRM were identified, data from study 1 (n=150 business executives attending a part‐time MBA program) were used to select items based on factor analysis. Then, confirmatory factor analyses was used on data obtained from a mail survey of Hong Kong financial firms in study 2 (n=215) to examine factor structure, as well as to provide evidence of dimensionality, scale reliability and validity. Finally, in study 3, data from 276 business executives attending a seminar on CRM were used to test the scale generalizability of CRM measures in various industries.FindingsA reliable and valid scale was developed to measure the four dimensions of CRM: key customer focus, CRM organization, knowledge management and technology‐based CRM.Research limitations/implicationsSince this study was conducted in Hong Kong only, the generalizability of the CRM scale has to be tested in other countries. In addition, cross‐sectional data were used in this study. Future studies should collect time‐series data for the testing of the causal relationship between CRM and business performance.Practical implicationsThe findings validate the long‐held belief that CRM is a critical success factor for business performance. Firms wishing to improve their relationships with customers need constantly to monitor their behavioral and internal processes. The proposed scale in this study could be used as a diagnostic tool to identity areas where specific improvements are needed, and to pinpoint aspects of the firm's CRM that require work.Originality/valueThis is the first study to provide a comprehensive, psychometrically sound, and operationally valid measure of a firm's CRM.

Quality of services as a determinant of customer satisfaction in the hotel industry

“…S druge strane, CRM je usmeren na upravljanje, fokusirajući se na napore menadžmen-ta za privlačenje, održavanje i unapređenje odnosa sa potrošačima. Treće, marketing odnosa obuhvata ne samo odnos prodavca i kupaca, hotela i gosta, nego i izgradnju odnosa sa svim zainteresovanim stranama, kao što su dobavljači, zaposleni, klijenti, vlada i sl., dok marketing odnosa sa potrošačima je više posvećeni izgradnji odnosa sa ključnim klijentima (Sin et al, 2005).…”

CRM: A Conceptual Framework of Enablers and Perspectives

“…In addition, while we observe that there has been an increase in the attention paid to CRM by practitioners and academics, to date no systematic attempt has been made to develop a valid measure of it, or to assess its influence on business performance through common perspectives and the major enablers (Nevin 1995;Sin, Tse et al 2005). In this part of study, attempted highlight important parts that support related issues to the prepositions and conceptual framework.…”

“…Internal marketing, where human resources and marketing interface, instills in employees the greatest significance of service-mindedness and customer orientation. Four significant internal marketing processes include market training and education, internal communication, reward systems, and employee involvement (Sin, Tse et al 2005). …”

“…Additionally, (Crosby and Johnson 2001;Ryals and Knox 2001;Day and Van den Bulte 2002;Kalustian, Lombardi et al 2002;Sin, Tse et al 2005;Daghfous and Barkhi 2009).and also, the successful CRM is addressing and predicated four major areas, including strategy, people, technology, and process (Fox and Stead 2001;Chen and Popovich 2003), and when these four elements work as whole can create a superior customer relation and business performance (Day 2003).…”

The dark side of customer relationship management: Exploring the underlying reasons for pitfalls, exploitation and unfairness

“…33 Whereas some regard this as stemming from confusion about what constitutes CRM, and note that it creates a signifi cant problem for adopting CRM, 70,71 others view the attempts to cover CRM defi nitions as refl ecting the multifaceted nature of the scheme itself. 27,72 The lack of a universally accepted defi nition of CRM has caused inconsistency in how academics defi ne the concept, and even more inconsistency in how practitioners apply the concept. 2 This is a major reason for the unfair use of CRM, as fi rms have misinterpreted the ' essence ' of CRM.…”