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The CRM process in retail and service sector firms in Japan: Loyalty development and financial return

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  • Minami, Chieko
  • Dawson, John

Abstract

Research on customer relationship management (CRM) in general has focused on the effects of customer satisfaction with CRM, customer retention and profit management, and the effects of CRM technique on performance. Conceptually, however, a sequence of effects of CRM is expected, from CRM implementation to financial performance, but this sequence has not been explored. Whilst several definitions of CRM have been proposed, this article defines CRM as relationship-development programmes based on IT. CRM is regarded as the integration of relationship technology (i.e. data consolidating and data mining) with loyalty schemes. Survey research was conducted in Japan in the retail and service industries to test three hypotheses: (1) a firm's relationship orientation has a positive effect on CRM implementation (data warehousing, data mining, using customer data for decision making); (2) CRM implementation has a positive effect on return on equity; and (3) CRM implementation has an indirect effect on return on equity, mediated by customisation. Using a structural equation model the first hypothesis was supported, but the third hypothesis was only partially supported. In these analyses a direct effect of CRM implementation on return on equity (ROE) was supported; however, a negative impact of customisation on ROE was found.

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  • Minami, Chieko & Dawson, John, 2008. "The CRM process in retail and service sector firms in Japan: Loyalty development and financial return," Journal of Retailing and Consumer Services, Elsevier, vol. 15(5), pages 375-385.
    • Handle: RePEc:eee:joreco:v:15:y:2008:i:5:p:375-385
    DOI: 10.1016/j.jretconser.2007.09.001
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    References listed on IDEAS

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    1. Sheth, Jagdish N. & Parvatiyar, Atul, 1995. "The evolution of relationship marketing," International Business Review, Elsevier, vol. 4(4), pages 397-418.
    2. George P. Huber, 1991. "Organizational Learning: The Contributing Processes and the Literatures," Organization Science, INFORMS, vol. 2(1), pages 88-115, February.
    3. Gruen, Thomas W., 1995. "The outcome set of relationship marketing in consumer markets," International Business Review, Elsevier, vol. 4(4), pages 447-469.
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    2. Qin, Hong & Prybutok, Victor R., 2013. "A quantitative model for patient behavioral decisions in the urgent care industry," Socio-Economic Planning Sciences, Elsevier, vol. 47(1), pages 50-64.
    3. Prakash Singh & Lokesh Arora & Abdulaziz Choudhry, 2022. "Consumer Behavior in the Service Industry: An Integrative Literature Review and Research Agenda," Sustainability, MDPI, vol. 15(1), pages 1-30, December.
    4. Elisabeth Albertini & Fabienne Berger-Remy, 2019. "Intellectual Capital and Financial Performance: A Meta-Analysis and Research Agenda," Post-Print hal-02139763, HAL.
    5. Khan, Sana Akbar & Qureshi, Salman Ali & Hunjra, Ahmed Imran, 2014. "CRM Implementation: A Descriptive Study of the Service Industry in Pakistan," MPRA Paper 60788, University Library of Munich, Germany.
    6. Suhail Ahmad Bhat & Mushtaq Ahmad Darzi, 2018. "Service, People and Customer Orientation: A Capability View to CRM and Sustainable Competitive Advantage," Vision, , vol. 22(2), pages 163-173, June.

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