Making customer relationship management work: evidence from the banking industry in Taiwan |
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| Authors: | Nan-Hong Lin Wen-Chun Tseng Yu-Chung Hung David C. Yen |
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| Affiliation: | 1. Department of Business Management , Tatung University , 40, Section 3, Zhongshan North Road, Taipei , 104 , Taiwan, Republic of China nhlin@ttu.edu.tw;3. Accounting Section of Office of General Affairs , National Hualien University of Education , 123, Hua-Hsi Road, Hualien , 970 , Taiwan, Republic of China;4. Department of Accounting and Information Technology , National Chung Cheng University , 168, University Road, Minhsiung , Chiayi , 621 , Taiwan, Republic of China;5. Department of DS and MIS , Miami University , 305A, Upham Hall, Oxford , OH , 45056 , USA |
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| Abstract: | Soon after becoming a WTO member, Taiwan found the internationalisation and liberalisation in the financial industry ushered its domestic banks into a new era. In response to this global trend, all its banks strove to rely on customer relationship management (CRM) to enhance customer value (CV). This study aims to probe further into the connection between CV and CRM. A series of examinations revealed that (1) both functional and social value impact customer behaviour directly and positively; (2) customer satisfaction positively and directly affects customer loyalty; (3) a positive and direct relationship exists between customer loyalty and customer behaviour; and (4) the positive and significant relationship between CV and customer behaviour can be developed through mediators such as customer satisfaction and customer loyalty. Consequently, banks should offer their customers different services, products, and marketing channels to meet their diversified needs to cultivate a win-win environment of CRM for both parties. |
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| Keywords: | customer value customer relationship management RFM model 80/20 Law |
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