Share:


The effect of service quality on customer satisfaction in digital age: customer satisfaction based examination of digital CRM

    Demokaan Demirel   Affiliation

Abstract

This study examines how customer-centered management systems contribute to CRM through the use of digital services. The article presents empirical evidence from an online survey of 405 people using digital services living Kocaeli province in Turkey and modelling a system of structural equations using partial least squares. 405 people have been selected by a random sampling method to ensure objectivity and scientific neutrality. Among the 405 people, 350 were found to have filled out the questionnaire completely. The study also examined the relationship between the dimensions of service quality and customer satisfaction. The results confirm that most of the dimensions of digital service quality favour the development of customer satisfaction capabilities and both the relationship the independent variables and trust, Enthusiasm, and sensitivity dimensions and customer satisfaction are positive. High customer satisfaction with digital services can lead to superior firm performance; however, companies should also gain credibility for customers and should design their products according to customer preferences.


First published online 23 February 2022

Keyword : CRM, service quality, digital services, technological capabilities, information technology, customer relationship performance

How to Cite
Demirel, D. (2022). The effect of service quality on customer satisfaction in digital age: customer satisfaction based examination of digital CRM. Journal of Business Economics and Management, 23(3), 507–531. https://doi.org/10.3846/jbem.2022.15328
Published in Issue
May 12, 2022
Abstract Views
464
PDF Downloads
541
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Banner, M. (2018). Digital presence and transformation: The growing importance of digital presence in today’s business marketplace [Business Administration Programme Thesis]. Centria University of Applied Sciences, Finland. https://www.theseus.fi/handle/10024/150998

Berman, S. (2012). Digital transformation: Opportunities to create new business models. Strategy & Leadership, 40(2), 16–24. https://doi.org/10.1108/10878571211209314

Caruana, A. (2002). Service loyalty: The effects of service quality and mediating role of customer satisfaction. European Journal of Marketing, 36(7/8), 811–828. https://doi.org/10.1108/03090560210430818

Caruana, A., Money, H. A., & Berthon, R. P. (2000). Service quality and the satisfaction – the moderating role of value. European Journal of Marketing, 34(11/12), 1338–1352. https://doi.org/10.1108/03090560010764432

Demirkan, H., & Spohrer, J. (2018). Service transformation enabled by digital: Smart machines. Journal of Service Management Research, 2, 8–11.

Fritzsche, A., & Ng, I. C. L. (2018). The language of the revolution. Journal of Service Management Research, 2, 14–16.

Heavin, C., & Power, D. J. (2018). Challenges for digital transformation towards a conceptual decision support guide for managers. Journal of Decision Systems, 27(1), 38–45. https://doi.org/10.1080/12460125.2018.1468697

Hollebeek, L. D., & Rather, R. A. (2019). Service innovativeness and tourism customer outcomes. International Journal of Contemporary Hospitality Management, 31(11), 4227–4246. https://doi.org/10.1108/IJCHM-03-2018-0256

Hollebeek, L. D., Sprott, D. E., Andreassen, T. W., Costley, C., Klaus, P., Kuppelwieser, V., Karahasanovic, A., Taguchi, T., Ul Islam, J., & Rather, R. A. (2019). Customer engagement in evolving technological environments: Synopsis and guiding propositions. European Journal of Marketing, 53(9), 2018–2023. https://doi.org/10.1108/EJM-09-2019-970

Hooper, D., Coughlan, J., & Mullen, M. (2008). Structural equation modelling: Guidelines for determining model fit. Electronic Journal of Business Research Methods, 6(1), 53–60.
https://arrow.tudublin.ie/buschmanart/2/

Hsu, T. T., Tsai, H. K., Hsieh, H. M., Wang, W. Y. (2014). Strategic orientation and new product performance: The roles of technological capability. Canadian Journal of Administrative Sciences, 31(1), 44–58. https://doi.org/10.1002/cjas.1274

Hu, H.-H., Kandampully, J., & Juwaheer, T. D. (2009). Relationships and impacts of service quality, perceived value, customer satisfaction, and image: an empirical study. The Service Industries Journal, 29(2), 111–125. https://doi.org/10.1080/02642060802292932

Huang, L. P., Lee Y. C. B., & Chen, C. C. (2019). The influence of service quality on customer satisfaction and loyalty in the B2B technology service industry. Total Quality Management & Business Excellence, 30(13), 1449–1465. https://doi.org/10.1080/14783363.2017.1372184

Islam, J. U., Shahid, S., Rasool, A., Rahman, Z., Khan, I., & Rather, A. R. (2020). Impact of Website attributes on customer engagement in the banking: A solicitation of stimulus-organism-response theory. International Journal of Bank Marketing, 38(6), 1279–1303. https://doi.org/10.1108/IJBM-12-2019-0460

Kaplan, A. M., & Haenlein, M. (2010). Users of the World, Unite! The challenges and opportunities of Social Media. Business Horizons, 53(1), 59–68. https://doi.org/10.1016/j.bushor.2009.09.003

Karadeniz, M., & Gözüyukarı, M. (2015). TSosyal CRM Uygulayan Şirketler Tarafından Sunulan Hizmet Kalitesinin Müşteri Memnuniyeti Üzerine Etkisi [The effect of service quality provided by social CRM companies on customer satisfaction]. Marmara Üniversitesi Öneri Dergisi, 11(44), 236–256.

Kumar, V., & Reinartz, W. (2018). Customer relationship management. Springer Texts in Business and Economics. Springer-Verlag. https://doi.org/10.1007/978-3-662-55381-7

Kuo, Y.-F., Wu, C.-M., & Deng, W.-J. (2009). The relationships among service quality, perceived value, customer satisfaction, and post-purchase intention in mobile value-added services. Computers in Human Behaviour, 25(4), 887–896. https://doi.org/10.1016/j.chb.2009.03.003

Landrum, H., & Prybutok, R. V. (2004). A service quality and success model for the information service industry. European Journal of Operational Research, 156(3), 628–642. https://doi.org/10.1016/S0377-2217(03)00125-5

Laudon, J. P., & Laudon, K. C. (2017). Management information systems: Managing the digital firm. Pearson Publishing. https://www.pearson.com/uk/educators/higher-education-educators/product/Laudon-Management-Information-Systems-Managing-the-Digital-Firm-Global-Edition-15th-Edition/9781292211756.html

Lee, I. (2017). Big Data: Dimensions, evolution, impacts, and challenges. Business Horizons, 60(3), 293–303. https://doi.org/10.1016/j.bushor.2017.01.004

Loonam, J., Eaves, S., Kumar, V., & Parry, G. (2018). Towards digital transformation: Lessons learned from traditional organizations. Strategic Change, 27(2), 101–109. https://doi.org/10.1002/jsc.2185

Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business & Information Systems Engineering, 57(5), 339–343. https://doi.org/10.1007/s12599-015-0401-5

Matzner, M., & Büttgen, M.(2018). Viewpoints on the transformation process. Journal of Service Management Research, 2, 4–8.

Muther, A. (2002). Customer relationship management. Electronic Customer Care in the New Economy. Spring-Verlag. https://doi.org/10.1007/978-3-642-56222-8

Ortiz, P. M., Devece, C., & Hikkerova, L. (2019). How mobile technologies support business models: Case study-based empirical analysis. Canadian Journal of Administrative Sciences, 37(1), 95–105. https://doi.org/10.1002/cjas.1550

Pansari, A., & Kumar, V. (2017). Customer engagament: The construct, antecedents and conseguences. Journal of the Academy of Marketing Science, 45, 294–311. https://doi.org/10.1007/s11747-016-0485-6

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12–40. https://www.researchgate.net/publication/225083802_SERVQUAL_A_multiple-_Item_Scale_for_measuring_consumer_perceptions_of_service_quality

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1994). Reassessment expectations as a comparison standard in measuring service quality: Implications for further research. Journal of Marketing, 58(1), 111–124. https://doi.org/10.1177/002224299405800109

Perkin, N., & Abraham, P. (2017). Building the agile business through digital transformation (1st ed.). Kogan Page Ltd. https://www.amazon.com/Building-Business-through-Digital-Transformation/dp/0749480394

Podsakoff, P. M., Mackenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903. https://doi.org/10.1037/0021-9010.88.5.879

Rajola, F. (2003). Customer relationship management. Organizational and technological perspectives. Springer-Verlag. https://doi.org/10.1007/978-3-540-24718-0

Rather, A. R. (2018b). Exploring customers’ attitudes towards the hospitality brands in India: A social identity perspective. In M. A. Camilleri (Ed.), The branding of tourist destinations: Theoretical and empirical insights (pp. 207–231). Emerald Publishing Limited. https://doi.org/10.1108/978-1-78769-373-920181012

Rather, R. A. (2018a). Investigating the impact of customer brand identification on hospitality brand loyalty: A social identity perspective. Journal of Hospitality Marketing Management, 27(5), 487–513. https://doi.org/10.1080/19368623.2018.1404539

Rather, R. A. (2020). Customer experience and engagement in tourism destinations: The experiential marketing perspective. Journal of Travel Tourism Marketing, 37(1), 15–32. https://doi.org/10.1080/10548408.2019.1686101

Rather, R. A., & Hollebeek, D. L. (2019). Exploring and validating social identification and social exchange-based drivers of hospital customer loyalty. International Journal of Contemporary Hospitality Management, 31(3), 1432–1451. https://doi.org/10.1108/IJCHM-10-2017-0627

Rather, R. A., Tehseen, S., Itoo, H. M., & Parrey, H. S. (2019a). Customer brand identification, affective commitment. customer satisfaction and brand trust as antecedents of customer behavioral intention of loyalty: An empirical study in the hospitality sector. Journal of Global Scholars of Marketing Science, 29(2), 196–217. https://doi.org/10.1080/21639159.2019.1577694

Rather, R. A., & Camilleri, M. A. (2019). The effects of service quality and customer-brand value congruity on hospitality brand loyalty. Anatolia: An International Journal of Tourism and Hospitality Research, 30(4), 547–559. https://doi.org/10.1080/13032917.2019.1650289

Rather, R. A., & Hollebeek, L. D. (2020). Experiential marketing for tourism destinations. In S. K. Dixit, The Routledge handbook of tourism experience management and marketing (1st ed.). Routledge Publications. https://doi.org/10.4324/9780429203916-24

Rather, R. A., Hollebeek, L., D., & Islam, J. U. (2019b). Tourism-based customer engagement: The construct, antecedents, and consequences. The Service Industries Journal, 39(7–8), 519–540. https://doi.org/10.1080/02642069.2019.1570154

Rather, R. A., Najar, A. H., & Jaziri, D. (2020). Destination branding in tourism: Insights from social identification, attachment, and experience theories. Anatolia, 31(2), 229–243. https://doi.org/10.1080/13032917.2020.1747223

Rather, R. A., Tehseen, S., & Parrey, S. H. (2018). Promoting customer brand engagement and brand loyalty through customer brand identification and value congruity. Spanish Journal of Marketing, 22(3), 319–337. https://doi.org/10.1108/SJME-06-2018-0030

Raza, A., Rather, R. A., Iqbal, K. M., & Bhutta, U. S. (2020). An assessment of corporate social responsibility on customer company identification and loyalty in banking industry: A PLS-SEM analysis. Management Research Review, 43(11), 1337–1370. https://doi.org/10.1108/MRR-08-2019-0341

Roach, D., Jonesi R., Ryman, J., & Ryman, H. (2018). Enhancing innovatiness: The role of dynamic marketing capabilities. Canadian Journal of Administrative Sciences, 35(4), 563–576. https://doi.org/10.1002/cjas.1473

Robinson, S. (1999). Measuring service quality: Current thinking and future requirements. Marketing Intelligence Planning, 17(1), 21–32. https://doi.org/10.1108/02634509910253777

Saarikko, T., Ulrik, H. Westergren, & Blomquist, T. (2017). The internet of things: Are you ready for what’s coming. Business Horizons, 60(5), 667–676. https://doi.org/10.1016/j.bushor.2017.05.010

Sahut, M. J., Dana, L. P., & Laroche, M. (2019). Digital innovations, impacts on marketing, value chain and business models: An introduction. Canadian Journal of Administrative Sciences, 37(1), 61–67. https://doi.org/10.1002/cjas.1558

Schermelleh-Engel, K., Moosbrugger, H., & Müller, H. (2003). Evaluating the fit of structural equation models: Tests of significance and descriptive goodness-of-fit measures. Methods of Psychological Research Online, 8(2), 23–74.

Seijts, H. G., & Gandz, J.(2018). Transformational change and leader character. Business Horizons, 61(2), 239–249. https://doi.org/10.1016/j.bushor.2017.11.005

Seth, N., Deskmukh, G. S., & Vrat, P. (2005). Service quality models: A review. International Journal of Quality Reliability Management, 22(9), 913–949. https://doi.org/10.1108/02656710510625211

Shams, G., Rehman, M. A., Samad, S., & Rather, R. (2020). The impact of the magnitude of service failure and complaint handling on satisfaction and brand credibility in the banking industry. Journal of Financial Services Marketing, 25, 25–34. https://doi.org/10.1057/s41264-020-00070-0

Tam, M. L. J. (2004). Customer satisfaction, service quality, and perceived value: An integrative model. Journal of Marketing Management, 20(7–8), 897–917. https://doi.org/10.1362/0267257041838719

Trainor, K. J., Andzulis, J. M., Rapp, A., & Agnihotri, R. (2014). Social media technology usage and customer relationship performance: Capabilities based examination of social CRM. Journal of Business Research, 67(6), 1201–1208. https://doi.org/10.1016/j.jbusres.2013.05.002