In the recent years, customer relationships have received considerable attention from both academics and practitioners (Berry, 1995; Gwinner et al., 1998; Palmer, 2002; Reynolds and Beatty, 1999; Amy Wong and Amrik S. Sohal, 2006). Most of the companies are struggling in attracting and maintaining profitable customer in order to create long term and valuable customer as customer relations is the important key factor for the firms to growth (Kristina Heinonen, 2014).
While in today’s environment, buying and selling through internet are the trends. Research shows that the growth for people and business involving in e-business is increasing. According to (Ho and Lin, 2010), information technology as a rapid growth field, is one of the most important
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Maintaining a long-term customer relationship between customer and company is economically more advantageous than seeking on new customers. (Liliana L. Bove Lester W. Johnson, 2000)
1.3 Research Gap
There are several gaps that can be found in existing researches. In journal of Roger Hallowell (1996) on the topic “The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study”, we found out that customer relationship was not mentioned as it can be a major factor that relates between customer satisfaction and customer loyalty with profitability of an e-business.
Most of the customer relationship investigations are carried out within large organizations and seldom of them carried out research on Small Medium Enterprise (SME) in the adoption of customer relationship management (Krasnikov et al., 2009; Lukkari, 2011). In our research, we will fill the gaps by doing research that includes customer relationship in e-business as our dependant variable while customer satisfaction and customer value as the independent variable and discovering their relationships among one
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However, compared to customer relationship in e-business, there are slightly different factors that can contribute to the building or enhancing of customer relationship. In SMEs e-business, e-CRM can be an important driver of success by improving their inherent marketing orientation and customer focus (Dibrell, Davis, & Craig, 2008; Harrigan, Ramsey, & Ibbotson, 2008; Schroder & Madeja, 2004).
In an e-business, company are required to be more focus on e-technology and website functions and that is the main platform of them using to meet and serve the customers. However, there are relatively few researchers who have examined the factors related to the formation of customer relationship in e-business.
1.6 Purpose Statement
The purpose of this research is to investigate the relationship between customer satisfactions and customer value with customer relationship in an e-business.
1.7 Research Questions
1. Does customer satisfaction have an impact on customer relationship in e-business?
2. How does the customer loyalty mediate the customer satisfaction and customer relationship?
3. Does customer value have an impact on customer relationship in
High levels of customer satisfaction will not guarantee future sales, but are more likely to result in repeat future sales than indifferent or poor customer service. Moreover, satisfied customers are more likely to try out other products/services in the firm’s range, or recommend it to friends and family. Build on customer loyalty Customer loyalty is valued highly by most businesses and can be
According to this research the customer satisfaction and service quality is vary from different sectors. If dimension are different but customer satisfaction is same for all services and products. In this report I want to draw a conclusion to point out how relationship is different in different sectors. Here we are dealing with different organization of the same sector, the customer satisfaction is depends upon the services, product quality, delivery time etc.
Customer Relationship Marketing (CRM) is more focused on what happens after a customer is acquired. The goal is to develop a long-term customer relationship that benefits both the customer and the company. This summary will discuss the purpose of customer relationship marketing, the customer’s value versus the company’s value, strategies used to implement CRM, and review companies that have successfully implemented customer relationship marketing programs.
In the present society, the development of technology has changed the way people think about the role of customer relationship management (CRM) in an organization’s marketing strategy. In the past, CRM is used by information technology companies to describe software applications in marketing, selling and other business functions (Boulding, Staelin, Ehret & Johnston, 2005, p.155; Buttle & Francis, 2004). However, companies now make efforts to build, maintain and enhance their relationship with customers (Herhausen & Schögel, 2013, pp. 1678-1700). Through providing customers with values they want, companies improve their business performance. As a result, companies now pay more attention to
This chapter describes theoretical background with key point literature relevant to the topic of the research. Furthermore the literature demonstrate issue in the field and refine the research focus by investigated views from different researchers. The key points of literature are customer relationship marketing, e-relationship, relationship quality, and customer service experience.
Williams, P. & Naumann, E. 2011, "Customer satisfaction and business performance: a firm-level analysis", The Journal of Services Marketing, vol. 25, no. 1, pp. 20-32.
Customer loyalty is crucial to the long term survival of a business, particularly in the context of electronic commerce where it becomes essential from the point of view both economic and
Many scholars believe that customer satisfaction has a crucial role in the success of a business, and is pivotal in increasing the overall profitability of the business (Kotier, 1991). Customer value is gained through the experience they receive from the goods or purchases they have obtained from a certain business. Customer value has various definitions and concepts, Holbrook (1999) stated that it is a kind of “interactive, mutual, and preferred experience”; but simply said, “the term customer value has many meanings.”
Customer satisfaction is a key ingredient to the success of any business.It is the most important factor that creates repeated customers. Some people know it but do not realize its importance. If a customer of yours is satisfied with one of your products or services, chances are this customer will purchase more of your products or services, which will increase your revenue. Therefore, in order to have your new or existing customers buy more from you, you will have to follow techniques that work. Customer satisfaction takes a very important place in Marketing. As much as you think that your marketing strategies should help you generate sales, think about how the same marketing strategies could help you achieve Customer satisfaction. There are a lot of elements involved with Customer satisfaction.
Richards, K., & Jones, E. (2008). Customer relationship management: finding value drivers. Industrial Marketing Management, 37, 120-130.
The three concepts, consumer, customer and client, have been identified in referring to the target market of any firm. No precise differentiation between the concepts of consumer and customer has been made (Gray 2007:66). Many authors use the concepts consumer and customer interchangeably without offering an explanation why one concept is preferred to the other in a particular context. Additionally, the concepts customer and client are used interchangeably by some authors. It is important to note that relationship marketing is a widely used concept of Relationship marketing does not only refer to the management of the relationships a producer and/or marketer of physical products have with customers, but is also applicable to the management of a service firm’s relationships with its clients. In addition, customer retention refers to the fact that firms, including firms providing physical products and firms providing services, maintain their existing consumers. Therefore, for the purpose or this study, the and particularly banking services, are referred to in broader or more global terms. Secondly, the narrower concept customer refers to a person who purchases a particular physical product, and therefore this concept will not be used in this study focusing on banking services. Thirdly, a client refers to a person making use of a
Gummesson (2004) describes CRM as "the values and strategies of relationship marketing with particular emphasis on customer relationships- turned into a practical application." CRM has become a necessity to successfully and profitability manage customers and a firm’s relationship with them, with the market reaching a value of approximately $11.5 billion in 2002. (Xu et al. 2002). However, despite this large spending it is estimated that 70% of CRM implementations fail. (Xu et al. 2002). There are a number of reasons for these failures, such as a failure to implement it throughout the organisation and resistance from employees. But in some cases the buyer-seller relationship does not merit a collaborative-style relationship; the customer may only require a transactional relationship. It is because of this reason than I believe that CRM does not always have to constitute the heart of B2B marketing.
According to the author, e-business is conducting business on the internet by not only buying and selling goods, but also servicing clients and collaborating with business partners by using all the human technologies.
Customer Relationships is about building a relationship of trust and convenience. A customer wants the company they are working with to be intuitive. To know their needs before they do. They want to feel respected, they need to believe you are honest and have integrity. This relationship breeds comfort and familiarity and causes the consumer to continue to do business with your company. This relationship that is built develops a personal relationship, like a friendship and it is one that the consumer cannot get from the store down the road and it is that personal touch of sincerity, of knowing their needs, of servitude that will turn them into lifelong branded customers.
Consequently, e-business and especially online shopping is crucial for retail stores. They should provide necessary infrastructure for selling their products online. By taking advantage of e-business not only they can get competitive advantage of online shopping, but the...