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CRM indexing.
Dr. Arup Kumar Baksi, Asst. Prof., DMS, BITM Prof. (Dr.) Bivraj Bhusan Parida, Professor, Dept. of Tourism Mgmt., The University of Burdwan
Review of literatures revealed that service quality has emerged as a critical factor, as service industries continue to dominate world economy, for the service providers, particularly keeping in mind the intangibility and heterogeneity aspects of services which are potential inhibitors in perceptualizing services and their quality aspects. Over the years academic researchers explored the dimensionality of service quality. Zeithaml (1985,1988, 1991), Cronnin & Taylor (1992, 1994), Gronroos (1982,1984), Leonard and Sasser (1982), Rust & Zahorick (1993), Avkiran (1994) initiated the process of identifying the dimensions of service quality and the research is still on as technology has been integrated with the service design and delivery mechanism. Integration of Technology has changed the entire perspective of service design and delivery mechanism and the subsequent perception of service quality. Researchers explored the dimensions of ASQ
Research gap identified: 1. dearth of research input in linking automated service quality (ASQ) and behavioural intention (BI). 2. lack of elaborate research to assess the effect of ZOT on ASQBI relationship. 3. dearth of research in indexing CRM performance and analysing its effect on customer satisfaction (CS) and perceived value (PV) Objectives of the study: 1. to understand the dimensionality of ASQ 2. to examine the impact of perceived ASQ on BI 3. to understand the impact of dimensions of ASQ on CS & PV 4. to identify the possible relationship between CRMI and CS & PV 5. to examine of effect of ZOT towards ASQ-BI link
Formulation of hypotheses
H1: Automated service quality comprises of two dimensions namely core and recovery. H2: Automated service quality has an impact on behavioural intention of customers. H3:Core automated service quality shares relationship with customer satisfaction and perceived value. H4:Recovery automated service quality shares relationship with customer satisfaction and perceived value. H5: Customer satisfaction and perceived value were dependent on CRM index. H6: The relationship between core automated service quality and : a) behavioural intentions; (b) satisfaction; (c) perceived value and (d) CRM-index, is significantly high above and below the ZOT level compared to within the range of ZOT. H7: The relationship between recovery automated service quality and : a) behavioural intentions; (b) satisfaction; (c) perceived value and (d) CRM-index, is significantly high above and below the ZOT level compared to within the range of ZOT.
CRMI
ASQ
CS
PV
BI
Methodology:
Industry chosen : Banking Firm chosen : State Bank of India Area of survey : Asansol, Durgapur & Bolpur Research philosophy : Interpretivism Research approach : Deductive Research strategy : Survey Time horizon : Cross-sectional Data collection method : Sampling, Questionnaire Sampling technique : Systematic Simple random Scale used : 7 point Likert scale Other scales used : Modified E-SERVQUAL (Zeithaml et al, 2005), Behavioural Intention Battery (BIB) (Zeithaml, 1996) Modified 12-item satisfaction scale (Oliver, 1980), Single-item Perceived Value scale (Yap & Sweeney, 2007) Sample size : 1560
where y is the benefit of the technology application at time t, m is the upper bound on the benefits of the application, and a and b are constants that determine the shape of the curve. Using similar logic to deduce CRM index (CRMI) with an assumption that CRMI will improve with improvement in performance of CRM components over time t, dCRMI can be represented as: CRMCP(1 CRMIt 1 ) --1
dt
CRMI
1 1 e
a CRMCP t
--2
Equation-2 represents a S-shaped logistic model where 1 is the upper-bound on the CRMI from the CRMCP performance. It is assumed that the constant a is zero since each service provider is supposed to initiate CRM induced services with a 1 negligible CRMI and hence: --3 CRMI CRMCP
1 e
t
where, CRMCP1 = People dimension, CRMCP2 = Process dimension and CRMCP3 = Technology dimension
8. Satisfaction
6.75 (1.12)
0.51**
0.29**
0.41**
0.33**
0.36**
0.18*
0.28**
0.51**
0.21*
0.19*
0.49**
0.29**
0.44**
0.37** 0.33**
**Correlation significant at 0.01 level (2-tailed), *Correlation significant at 0.05 level (2-tailed)
To test the hypothesis H2- H7, composite variables were generated by obtaining the mean rating for all constructs across all the items for the desired and adequate level of service response. Zeithaml et als (1996) approach was adopted which was successfully implenmented by Yap and Sweeney (2007) in developing dummy variables to indicate the individual respondents perceptions of core and recovery automated service quality location both within and outside the ZOT. The relationship between automated service quality and outcomes across the ZOT for both core and recovery dimensions can be defined as: X = 0 + 1 (Core) + 2 (d1Core) + 3 (d2Core) + X = 0 + 1 (Recovery) + 2 (d3Recovery) + 3 (d4Recovery) +
Where, X = composite scores for behavioural intentions, satisfaction and perceived value Core=composite score for respondents perception of core dimension of automated service quality Recovery = composite score for respondents perception of recovery dimension of automated service quality d1/ d3=1, when perception of core/recovery quality is below acceptable level, 0, otherwise. d2/ d4=1, when perception of core/recovery quality is above acceptable level, 0, otherwise. 1, 2 and 3 = unstandardized regression coefficients 0 = constant in the equation = error term
In the above stated equations, the slope inside the ZOT is 1, for below the ZOT level it is 1+ 2 and for above the level of ZOT 1+ 3.
CRM is considered to be an effective integration of people process and technology which synchronizes well with the service market trinity with technology playing the role of a driver integrator. 17 CRM variables across these 3 dimensions were considered for the study. Factor analysis validated the measures used for Customer Relationship Management Index (CRMI) namely its three components people, process and technology. Exploratory factor analysis was deployed using orthogonal rotation. The reliability index was obtained as >0.70. The convergent validity was found to be >0.60 for all the items. Factor loading <.50 were discarded. The relative weight of eigenvalue (RWE) and average factor value (AFV) were obtained for calculating the CRMI.
The CRMI was calculated as: 0.34
To test Hypothesis-5, bivariate correlation was deployed to assess the relationship between customer satisfaction (CS-dependent variable) and CRM index (CRMIindependent variable). The Pearson coefficient (r) (r=.421**, p<.001) revealed a strong and positive correlation between customer satisfaction (CS) and CRM-index (CRMI) suggesting that higher the CRMI, higher will be the customer satisfaction.
Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N CS 1.000 1560 .421** .000 1560 CRMI .421** .000 1560 1.000 1560
CS
CRMI
To further asses the strength of associationship between the variables and to examine the predictive capacity of CRMI to predict customer satisfaction (CS) regression analysis was deployed.
Model Summary
R .639 R2 .408 adjusted R2 .406 f 232.116
ANOVA
sig .000
Regression coefficients
.548 t 19.619 sig. .000
Structural Equation Modeling was used to test the nomological validity of the proposed model. CFA was used to understand the dimensionality, convergence and discriminant validity for each construct. SEM and MLE was applied to estimate the CFA models. The fit-statistics were found to be acceptable. The research model holds well as the fit-indices supported adequately the model-fit to the data.
9=0.93 12-1.31
13-1.29
CRMI1
12=1.00
CRMI2
13=.91
CRMI
14=1.00 15=0.87 16=1.00
BI+
14-1.22
8=0.91 COR1
3=0.79
3=0.67 4=0.73
ASQ
7=1.00 8=0.67
CS
PV
17=0.71 10=1.00
4-1.24
COR1
9=0.71
11=0.84
BI-
15-1.19
5=0.89
5-1.10 4=0.81 6-1.27
CS1
CS2
5=0.69
CS3
6=0.67 9-1.12
PV1
PV2
7=0.71
7-1.01
8-1.17
10-1.09
11-1.01
Thank You