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IJCSMS (International Journal of Computer Science & Management Studies) Vol. 30, Issue 01 Publishing Month: September 2016 An Indexed and Referred Journal with ISSN (Online): 22315268 www.ijcsms.com IJCSMS www.ijcsms.com 10 The Impact of E-CRM and Customer Satisfaction on Customer Loyalty towards Enhancing Mobile Service in Algeria: A Customer Centric View Azeddine Amrane 1 and Abdelhakim Hetatache 2 1 Assistant Professor, Department of Economics, University of Setif 01, Algeria [email protected] 2 Assistant Professor, Department of Management, University of Setif 01, Algeria [email protected] Publishing Date: September 14, 2016 Abstract Purpose- Mobile service operators in Algeria are seeking to take up the challenge of increasing customer satisfaction and customer loyalty after two years since the first launch of 3G, in particular with a huge number of subscribers exceeds 43 million. Taking the advantage of technological tools in the management of customer relations might be a very important way to achieve the above goal. This paper aims at investigating the impact of e-CRM and customer satisfaction on customer loyalty, taking into consideration the view point of the customer. Design/Methodology: This study uses a questionnaire and statistical techniques to investigate the impact of e-CRM and customer satisfaction on customer loyalty, taking into consideration customers’ view. Findings: The results indicated that there is a positive relationship between e-CRM and customer satisfaction, the latter mediates the relationship between e-CRM and customer loyalty. Research limitations: The study was conducted on mobile service in Algeria, further research in other fields and countries are needed to generalize the findings. Also, the study takes into consideration only customer view point, so the future studies should extend discussion to company view point. Practical implication: The study found that organizations have to be more focused on e-CRM implementation, in order to enhance customer satisfaction and customer loyalty. The latter is the key to achieving sustainable and long term profitability. Originality/Value: The studies about e-CRM implementation within the Algerian mobile sector are still fewer, particularly studies on its relationship with customer satisfaction and customer loyalty. The recommendations should help the different operators to enhance e-CRM practices for better outcomes. Keywords: Electronic Customer Relationship Management, Customer satisfaction, Customer Loyalty, Impact, Mobile service. 1. Introduction Mobile service has been growing tremendously all over the world, it is evidenced by the huge number of subscribers that is because of the free market system and the ability to use this service in multi-sectors, like health, business,…etc. The enormous growth in terms of services has made the competition fierce. As a result of taking up the challenge of competition, each operator has to make its services as better as possible. Mobile Service in Algeria has taken the same path, so the subscribers’ number since year 2000 has increased tremendously. (Autorité de régulation de la poste et des télécommunications (ARPT), 2014) reported that the amount of investments by mobile operators in Algeria reached by the end of 2014: 713,724 Billion AD, with 21% of growth rate. Also it reported that the turnover of the sector reached up: 324,276 billion AD, with percentage growth of 8% in particular, after the implementation of 3G, the subscribers’ number exceeded 43 million, which almost matches the population. The huge number of subscribers and the 3G challenge brought about the use of new tools to manage the relationship with customers. The challenge relates to response to the immediate demand and higher customer base (Pan and Lee, 2003). Constant profitability at the saturation point could be kept by striving to retain the existing customers rather than looking for acquiring new ones, hence to expand the market by encouraging the

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Page 1: The Impact of E-CRM and Customer Satisfaction on Customer ...Volume30Issue01)PublishingMonthSeptember2016... · Originality/Value: The studies about e-CRM implementation within the

IJCSMS (International Journal of Computer Science & Management Studies) Vol. 30, Issue 01

Publishing Month: September 2016

An Indexed and Referred Journal with ISSN (Online): 2231–5268

www.ijcsms.com

IJCSMS

www.ijcsms.com

10

The Impact of E-CRM and Customer Satisfaction on

Customer Loyalty towards Enhancing Mobile Service in

Algeria: A Customer Centric View

Azeddine Amrane1 and Abdelhakim Hetatache2

1Assistant Professor, Department of Economics, University of Setif 01, Algeria

[email protected]

2Assistant Professor, Department of Management, University of Setif 01, Algeria

[email protected]

Publishing Date: September 14, 2016

Abstract Purpose- Mobile service operators in Algeria are seeking

to take up the challenge of increasing customer satisfaction

and customer loyalty after two years since the first launch

of 3G, in particular with a huge number of subscribers

exceeds 43 million. Taking the advantage of technological

tools in the management of customer relations might be a

very important way to achieve the above goal. This paper

aims at investigating the impact of e-CRM and customer

satisfaction on customer loyalty, taking into consideration

the view point of the customer.

Design/Methodology: This study uses a questionnaire and

statistical techniques to investigate the impact of e-CRM

and customer satisfaction on customer loyalty, taking into

consideration customers’ view.

Findings: The results indicated that there is a positive

relationship between e-CRM and customer satisfaction, the

latter mediates the relationship between e-CRM and

customer loyalty.

Research limitations: The study was conducted on mobile

service in Algeria, further research in other fields and

countries are needed to generalize the findings. Also, the

study takes into consideration only customer view point, so

the future studies should extend discussion to company

view point.

Practical implication: The study found that organizations

have to be more focused on e-CRM implementation, in

order to enhance customer satisfaction and customer

loyalty. The latter is the key to achieving sustainable and

long term profitability.

Originality/Value: The studies about e-CRM

implementation within the Algerian mobile sector are still

fewer, particularly studies on its relationship with customer

satisfaction and customer loyalty. The recommendations

should help the different operators to enhance e-CRM

practices for better outcomes.

Keywords: Electronic Customer Relationship

Management, Customer satisfaction, Customer

Loyalty, Impact, Mobile service.

1. Introduction

Mobile service has been growing

tremendously all over the world, it is evidenced by

the huge number of subscribers that is because of the

free market system and the ability to use this service

in multi-sectors, like health, business,…etc. The

enormous growth in terms of services has made the

competition fierce. As a result of taking up the

challenge of competition, each operator has to make

its services as better as possible.

Mobile Service in Algeria has taken the same

path, so the subscribers’ number since year 2000 has

increased tremendously. (Autorité de régulation de la

poste et des télécommunications (ARPT), 2014)

reported that the amount of investments by mobile

operators in Algeria reached by the end of 2014:

713,724 Billion AD, with 21% of growth rate. Also it

reported that the turnover of the sector reached up:

324,276 billion AD, with percentage growth of 8% in

particular, after the implementation of 3G, the

subscribers’ number exceeded 43 million, which

almost matches the population.

The huge number of subscribers and the 3G

challenge brought about the use of new tools to

manage the relationship with customers. The

challenge relates to response to the immediate

demand and higher customer base (Pan and Lee,

2003). Constant profitability at the saturation point

could be kept by striving to retain the existing

customers rather than looking for acquiring new

ones, hence to expand the market by encouraging the

Page 2: The Impact of E-CRM and Customer Satisfaction on Customer ...Volume30Issue01)PublishingMonthSeptember2016... · Originality/Value: The studies about e-CRM implementation within the

IJCSMS (International Journal of Computer Science & Management Studies) Vol. 30, Issue 01

Publishing Month: September 2016

An Indexed and Referred Journal with ISSN (Online): 2231–5268

www.ijcsms.com

IJCSMS

www.ijcsms.com

11

potential customers (Kim, M.K., Park, M.C. & Jeong,

D.H., 2004). E-CRM implementation might be a very

important solution to this issue, as Taylor and Hunter

(2002) mentioned: maximizing customer lifetime and

building better relationships are the ultimate goals of

e-CRM products. (Xu and Walton, 2005) pointed out

that both academic researchers and vendors have

been taking an in depth importance to search in e-

CRM aria, thus seeking to increase retaining of

existing customers and acquiring new ones. Customer

loyalty programs incessantly rely on big data, which

is exploding through interaction of users with

different systems. So businesses can collect data

better than ever before, and thus understand, motivate

and engage its constituents in ways that have not ever

been possible (Paharia, 2013). Technology adoption

model in online services is assigned to be the first in

explaining customer satisfaction, the ease and

usefulness of information may affect customer

intention.

It seems to be very important for mobile

operators in Algeria to take into consideration the

best practices during e-CRM implementation,

through building online relationships with their

customers, so as to increase customer satisfaction and

customer loyalty.

2. Literature Review

2.1. E-CRM: The conceptual evolution of information systems

and technological transformation have shaped CRM

in recent years (Kımılog˘lu and Zaralı, 2009). Frow

and Payne (2005) pointed out that CRM refers to the

union between relationship marketing potentials and

IT in order to create long term relationships with

customers and other stakeholders so, it should

enhance the opportunities of using data and

information to understand customers and co-create

value with them, therefore, cross-functional approach

is required through information technology and

applications. The power of company to: reduce its

internal cost, improve interaction with the

environment and increase the economic profits, could

be achieved through modern system implementation,

relying on the advances in information and

communication technologies (Jamali, R. et al., 2013).

(Venturi, W.T. & Benito, O.G., 2015) mentioned that

CRM solutions seeks over time to deal with

customers’ interactions through analytical and

operational solutions. CRM applications with the

advantage of technology innovations, collect and

analyze customer patterns, interpret customer

behavior, develop a predictive model and respond

effectively with a customized communication, and

thus provide product and service value to the

individual customer (Chen and Popovich, 2003).

Furthermore, (Nguyen and Mutum, 2012) pointed

out that with the support of information technology,

CRM applications could flourish, the interactivity

seller-buyer could be stored effortlessly, and thus

these applications would help to customize products

and services exactly around customer needs. Also,

technological advances bring up the possibility to

deal with the customer individually, so as to give

company an advantage over competition.

It is wrong to think that CRM technology is

just a set of software. Furthermore, CRM technology

has to be flexible with changing customers, external

stakeholders, mobile professionals and experts in the

field. It also has the ability to integrate with any other

system seeking to provide a single view about every

customer. More importantly, it must be implemented

in a way that skills and processes could be thoroughly

shared across companywide (Buttle, 2009). The

accurate view of each customer might be a key to the

success of CRM projects so, the integration of the

different sources and linking transactions through

complex processes should help to create a customer

profile (Baran et al., 2008). Most of researchers look

at the technology as a union of strategy and

information systems to serve the customer better

(Jamali, R. et al., 2013). Hasanian, G. et al. (2015) in

their study in a malaysian company (MSC) found that

there is always a need to use information technology

in gathering data and information about customers,

because that may help to make the relationship more

succesful and profitable, companies would be able to

provide better value to their customers. Eventually

technology has a positive effect on CRM processes.

2.2. Customer Satisfaction:

Customer satisfaction refers to the summary of

customer feeling and responses after his/her

experience with products and services use (Lin &

Wang, 2006). The evaluation of multiple interactions

seems to be the main criteria that customer

satisfaction is based on (Levesque, & McDougall,

1996). The perceived performance derived by

customers leads to the evaluation of customer

satisfaction. As long as this performance matches

customer expectations, most likely the customer is

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IJCSMS (International Journal of Computer Science & Management Studies) Vol. 30, Issue 01

Publishing Month: September 2016

An Indexed and Referred Journal with ISSN (Online): 2231–5268

www.ijcsms.com

IJCSMS

www.ijcsms.com

12

satisfied (Amin, M., Isa, Z. & Fontaine, R., 2013).

Customer satisfaction is considered as the result of

marketer’s activity through different stages of

purchasing process (Rostami, A., Valmohammadi, C.

& Yousefpoor, J., 2014). Lin, H.H. & Wang, S.W.

(2006) in their study about mobile commerce in

Taiwan, adopted a customer satisfaction

conceptualization corresponding to the overall

response or feeling, that affect his/her behavior, due

to his/her experience with the provided services.

Rejo´n-Guardia (2013) pointed out that there are

two different sets of definitions to determine how to

evaluate customer satisfaction. The first set focuses

on the conceptual criterion, three approaches might

be taken: evaluation process, response, evaluation

and affective response. The second set focuses on the

referential criterion, two different views are

considered: the specific transaction view, which

refers to post-choice evaluation or current

satisfaction, and the cumulative view, which relates

to the overall experience of the user or cumulative

satisfaction.

2.3. Customer Loyalty:

Customer Loyalty can be defined as a state of

mind, interpreted by attitudes, such that customer

makes the decision either to retain the relationship or

end it up. Making customer loyal means preventing

him to switch to the other competitors, but not all of

customers, therefore company should segment its

market according to the potential profitability

(Zineldin, 2006).The main purpose of loyalty

programs is increasing profitability (Uncles, M.D.,

Dowling, G.R. & Hammond, K., 2002). Loyalty

strategies seek to create durable relationships with

customers that might lead them to deal with any

problems they face with product or service, rather

than switching to competitors. Hence, these strategies

seek to build a loyalty hierarchy for the customer,

where his relationship with company has to be

improved from being a customer to be a collaborator

and then to be an advocate (Duffy, 1998) . It is not

clear that customer satisfaction creates more

business, companies must exceed that to look for

ways to retain customers, as a result three benefits

could be achieved: reducing the cost of customer

acquisition due to the low level of defection,

customers would be less price sensitive because of

long standing and increasing response to buy a

greater variety of products and services (Gould,

1995). Lin & Wang (2006) pointed out that customer

loyalty in mobile commerce is related to Customer

advantageous attitude interpreted in repurchasing

actions. The integration of behavioral and attitudinal

approaches constructs the theory of loyalty (Kim,

M.K et al., 2004). Customers who belong to their

company psycologically and behaviorally, and

interpret that in different positive acts as word of

mouth and repurchase frequency, are loyal to the

brand (Veloutson, C. & McAlonan, A., 2012).

Multifactors may determine customer loyalty:

trust, transaction or relationship, positive emotional

attachment and commitment to the brand (Pitta et al.;

2006). Three distinctive approaches are designed in

general to measure customer loyalty: behavioral,

attitudinal and composite approach; Behavioral

measurements consider consistent and repetitious

purchases, attitudinal measures consider

psychological and emotional attachment, and

composite measures, by which loyalty is measured by

both frequency of purchases and customer attitudes

toward the relationship (Bown, J.T. & Chen, S.L.,

2001).

Understanding how to develop customer loyalty

creates leading knowledge to discover better methods

of segmenting customers through each stage, within

the process and management strategy, that adapts to

the relationship needs of the different levels of

customer loyalty (McMullan, R. & Gilmore, A.,

2008). It is very important to distinguish between

attitudinally and non-attitudinally loyal customers

because that indicates the percentage rate of

customers who are likely going to change company,

as well as those who are likely to stay for longer

periods. Moreover, behavioral loyalty doesn’t explain

the causes of loyalty (Donio, J., Massari, P &

Passiante, G., 2006).

3. Research Model and Hypotheses.

Figure 01 explains the correlation between e-

CRM, customer satisfaction and customer loyalty.

The purpose of the study is to understand the impact

of e-CRM and customer satisfaction on customer

loyalty, as well as how customer satisfaction could be

a mediator between E-CRM and customer loyalty.

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IJCSMS (International Journal of Computer Science & Management Studies) Vol. 30, Issue 01

Publishing Month: September 2016

An Indexed and Referred Journal with ISSN (Online): 2231–5268

www.ijcsms.com

IJCSMS

www.ijcsms.com

13

Figure 1: Research Model

CRM refers to the strategic process that used to

increase interaction between a company and its

customers, maximize life time value for both parties

and maximize customer satisfaction (Sanchez &

Sanchez; 2005). Fink, L., Zeevi, A. & Te'eni, D.

(2008) suggested that customers and companies have

different objectives for using online tools that have

been designed primarily to satisfy either customers or

organizations’ needs, but not both. The organization

seeks to get as much information as possible from its

customers, and thus increases its data base and

customer knowledge. Customers also want to extract

as much information as possible about their company

in particular, the informational services.

We propose this hypothesis:

H1. The perceived e-CRM will have a positive effect

on customer loyalty.

While several assumptions show that high level of

customer satisfaction is strongly correlated with

customer loyalty, other trials have been conducted to

measure customer loyalty independently (Lee, J. et

al., 2001). Rostami, A., Valmohammadi, C. &

Yousefpoor, J. (2014) pointed out that the good

experience of a customer with a company would be

interpreted in a positive word of mouth, conversely,

the bad experience will probably lead customers to

cut the relationship and reveal negative word of

mouth, as a result, satisfied customer will likely

repeat purchase. Bown, J.T. & Chen, S.L. (2001) in

their study about hotel industry mentioned that minor

changes in customer satisfaction may lead to

substantial changes in customer loyalty, so managers

should have very satisfied customers. Lin, H.H. &

Wang, S.W. (2006) found that customer loyalty is

affected by perceived value, trust, habit and customer

satisfaction. Customer satisfaction has a crucial

intervening role in the relationship of perceived value

and trust with customer loyalty. Within mobile

sector, perceived value and trust are built through

service technology, due to the nature of the service

itself, so if technology achieves high quality,

customer must perceive that value and trust their

operator. Rejo´n-Guardia (2013) in his study about

the banking sector found that achieving greater

customer satisfaction would be possible through the

integration of electronic banking into multichannel

strategies, consequently, it gives new rise to the

relationship with customer, seeking to satisfy their

needs, and gives them the opportunity to use new

channels to get access to information any time and

from any location.

We propose this hypothesis:

H2. Customer satisfaction mediates the relationship

between e-CRM and customer loyalty.

E-CRM Customer

Loyalty Hypothesis 01

Mediating Effect

Hypothesis 02

Customer

Satisfaction

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IJCSMS (International Journal of Computer Science & Management Studies) Vol. 30, Issue 01

Publishing Month: September 2016

An Indexed and Referred Journal with ISSN (Online): 2231–5268

www.ijcsms.com

IJCSMS

www.ijcsms.com

14

4. Research method

4.1. Measures Development:

The initial model has been tested, first by deeper

interviews with experts from the studied companies

to ensure the external validity, and secondly by an

extensive literature review. Customer satisfaction and

customer loyalty variables are shown clearly in table

I, e-CRM elements and items are based primarily on

the interviews with the experts to understand the

items that measure e-CRM in the Algerian mobile

market.

We developed a self-answer questionnaire containing

all the resulting items, the constructs are shown in the

appendix. Also questionnaire was discussed with

experts in statistics so, they recommended minor

rectifications.

4.2. Sample and Data Collection:

As mentioned before, this study takes into account

customer’s view point; accordingly a questionnaire

was prepared and distributed throughout the Algerian

territory in 2015. Eight states were chosen, 600

questionnaires were distributed and 514 were useful.

Table II includes Gender, Age, Education level, Job,

number of technological devices.

Table I: Constructs and Items

Constructs Variables References

E-CRM Customer engagement: Company should focus on

customer engagement through electronic tools in

order to build last and long term relationship, thus

achieving customer loyalty.

Chen and Popovich (2003), Frow

and Payne (2005), Kımılog˘lu and

Zaralı, (2009), Jamali, R. et al.,

(2013).

Customer interaction: Company should focus on the

exchange of information and points of view with its

customers and co-create value through electronic

tools.

Service Technology: The operator should improve

the provided services, by enhancing the quality of

technology, so as to improve commitment and trust

of its customers, and thus creates value for them.

Customer

satisfaction Current Satisfaction: post-choice evaluation or

satisfaction with the transaction.

Cumulative satisfaction: the overall experience of the

user with products or services.

(Rejo´n-Guardia, 2013), (Lin, H.H.

& Wang, S.W., 2006), (Rostami, A.,

Valmohammadi, C. & Yousefpoor,

J., 2014)

Customer

Loyalty

Behavioral Loyalty: frequency of purchases.

Attitudinal Loyalty: psychological and emotional

attachment to the company, interpreted with a

positive word of mouth.

Lin & Wang (2006), (Kim, M.K et

al., 2004), (Veloutson, C. &

McAlonan, A., 2012).

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IJCSMS (International Journal of Computer Science & Management Studies) Vol. 30, Issue 01

Publishing Month: September 2016

An Indexed and Referred Journal with ISSN (Online): 2231–5268

www.ijcsms.com

IJCSMS

www.ijcsms.com

15

Table II: Demographic Characteristics of the Respondents

Variable Type Percentage

Favorite Operator

DJEZZY 33.9

MOBILIS 33.3

OOREDOO 32.9

Payment Type

Prepaid 75.1

Postpaid 18.1

Both 6.8

Technological devices

No device 9.7

One device 62.1

Two devices 18.9

Three devices 9.3

Gender Male 65.4

Female 34.6

Age

Less than 25 41.6

Between 25 et 35 35.4

Between 36 et 50 17.5

More than 50 5.3

Education Level

No level 2.3

Primary 2.5

Elementary 11.5

High school 22.2

University 61.5

Status Married 59.5

Single 40.5

Job Occupation

Businessman 18.3

Civil Servant 32.1

Employee 15.6

Student 23.0

Jobless 11.1

4.3. Reliability and Validity Constructs:

This research is based on the literature review of

each dependent variable, and both literature and

interviews inform the independent variable.

Customer satisfaction was divided into two

dimensions: Current satisfaction (S1 to S3),

Cumulative satisfaction (S4 to S6). Customer Loyalty

was divided into two dimensions as well: Attitudinal

loyalty (L1 to L5) and Behavioral Loyalty (L6 to L8).

E-CRM was divided into three dimensions: Customer

engagement: (E 01 to E05), Customer interaction

(E06 to E10) and service technology (E11 to E15).

Table III illustrates the results of reliability and

validity tests. Cronbach (α) was calculated to ensure

the internal validity. Item to total correlation was also

calculated to ensure the convergent validity. The

survey items met the requirement of reliability and

validity.

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IJCSMS (International Journal of Computer Science & Management Studies) Vol. 30, Issue 01

Publishing Month: September 2016

An Indexed and Referred Journal with ISSN (Online): 2231–5268

www.ijcsms.com

IJCSMS

www.ijcsms.com

16

Table III: Reliability Results for Each Variable

Construct Items Convergent Validity

(Corrected Item-Total

Correlation

Reliability

(Cronbach’s

α)

E-CRM Customer

Engagement

E 01 to E

05

0.768; 0.780; 0.782;

0.736; 0.687

0.899

0.957 Customer

interaction

E 06 to E

10

0.747; 0.775; 0.801;

0.752; 0.695

0.901

Service

technology

E 11 to E

15

0.701; 0.756; 0.767;

0.716; 0.666

0.884

Customer

satisfaction

Current

satisfaction

S 01 to S

03

0.780; 0.786; 0.792 0.891

0.913 Cumulative

satisfaction

S 04 to S

06

0.733; 0.724; 0.566 0.818

Customer

Loyalty

Attitudinal loyalty L 1 to L 5 0.790; 0.849; 0.840;

0.851; 0.799

0.935

0.943

Behavioral loyalty L 6 to L 8 0.674; 0.779; 0.745 0.858

5. Analysis and results

5.1. The basic model: The relationship between e-

CRM and customer loyalty. In order to evaluate the

correlation between the two variables, Pearson’s

coefficient was calculated. Table VI shows the

correlation matrix for all variables.

Table IV: Correlation matrix for all variables

Customer

engagement

Customer

interaction

Service

technology

E-CRM

Customer

Satisfaction

0.649** 0.634** .655** 0.687**

Customer Loyalty 0.836** 0.845** 0.830** 0.889**

Note: Correlation is significant at the 0.01 level (2-tailed).

The total correlation between E-CRM and

customer loyalty was 0.889. The correlations

between e-CRM components (Customer engagement,

Customer interaction and service technology) and

customer Loyalty were: 0.836, 0.845 and 0.830

respectively.

With the resulting correlation coefficient and the

significant level (P<0.01), e-CRM had significantly

positive relationship with customer loyalty.

The regression analysis for e-CRM regarding

Customer loyalty. The significant correlation

between e-CRM and customer loyalty should be

ensured through multiple regression analysis. The

linear relationship between forecast and valid

variables is indicated in the table V.

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IJCSMS (International Journal of Computer Science & Management Studies) Vol. 30, Issue 01

Publishing Month: September 2016

An Indexed and Referred Journal with ISSN (Online): 2231–5268

www.ijcsms.com

IJCSMS

www.ijcsms.com

17

Table V: The Multiple Regression Analysis for E-CRM on Customer Loyalty

Customer Loyalty

Variables β SE Beta T-Value P-Value

E-CRM Constant 0.025 0.077 .322 .747

Customer

engagement 0.262 0.045 0.252 5.792 .000

Customer interaction 0.390 0.041 0.378 9.432 .000

Service technology 0.337 0.042 0.316 8.087 .000

Adjusted R² 0.791

Note: significant at 0.05.

β Value, Beta value, t-value and others achieved

positive levels. The beta values were: 0.252, 0.378

and 0.316 respectively. The model was as follows:

Y = 0.025 + 0.262X1−1 + 0.390X1−2 +0.337X1−3 (Where: X1−1 is customer engagement,

X1−2 is customer interaction and X1−3 is service

technology). The adjusted R² was 0.791, which

explains a higher level of loyalty change.

Consequently, the research supports the positive

hypothesis, indicating that e-CRM will have a

positive effect on customer loyalty in the mobile

sector in Algeria.

The Mediating Effect of Customer

Satisfaction:

The correlation between E-CRM and customer

satisfaction as indicated in table IV was strongly

positive. The simple regression analysis for e-CRM

and customer satisfaction on customer loyalty is

shown in table VI. The multiple regression analysis

for e-CRM and customer satisfaction on customer

loyalty is shown in table VII.

Table VI: The Simple Regression Analysis for E-CRM on Customer Satisfaction and Customer Loyalty

Customer Loyalty

Variables β SE Beta T-Value P-Value

Customer

Loyalty

Constant 0.023 0.077

0.889 0.297 0.767

E-CRM 0.988

0.023 43.881 0.000*

Adjusted R² 0.791

Customer

satisfaction

Constant 0.841 0.119

0.687 7.072 0.000*

E-CRM 0.742 0.035 21.303 0.000*

Adjusted R² 0.470

Note: significant at *p<0.05

Table VII: The Multiple Regression Analysis for E-CRM and Customer Satisfaction on Customer Loyalty

Variables Customer Loyalty

β SE Beta T-Value P-

Value

Constant -

0.143

0.077

-1.869 .062

E-CRM 0.841 0.030 0.757 28.507 .000

Customer

Satisfaction

0.198 0.027 0.192 7.243 .000

Adjusted R² 0.810

Note: significant at *p<0.05

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The results indicated that β value, Beta value, t-value

and all other values got positive levels. The

standardized coefficient of effect for e-CRM on

customer satisfaction was 0.687. The standardized

coefficient for e-CRM on customer loyalty was

0.889. The standardized coefficient for e-CRM and

customer satisfaction on customer loyalty was: 0.757

and 0.192. Figure 2 illustrates the mediating effect of

customer satisfaction.

Figure 2: The Mediating Effect of Customer Satisfaction

The path coefficient for e-CRM on customer

loyalty decreased from 0.889 to 0.757, showing that

customer satisfaction had partial mediating effect on

e-CRM and customer loyalty. Furthermore, this

means that e-CRM will affect first customer

satisfaction, which in turn will affect customer

loyalty.

6. Discussion

This research is an exploratory investigation of the

relationship between e-CRM and customer loyalty on

one hand and the mediating effect of customer

satisfaction on the other hand. Two hypotheses were

developed to look into the two kinds of relationships.

The relationship between e-CRM and customer

loyalty was based on the impact of the different

constructs of e-CRM on customer loyalty, where

customer engagement, customer interaction and

service technology had positive and strong

relationships with customer loyalty within the mobile

sector in Algeria. Each operator should take into

consideration the advantage of the different

technological tools to build lasting and long term

relationships with its customers, particularly with the

increasing challenge after 3G launch. Customer

engagement through different technological channels

might increase customer loyalty, because it increases

the power of the relationship and inserts customers

within shareholder’s group, and thus creates value for

them. Customer interaction also must be very

important to understand customer needs, in particular

through social media and phone calls. Service

technology has a positive relationship with customer

loyalty, where the different operators provide

technological services therefore, the quality must be

higher so as to increase customer trust and

commitment, through repeating the purchases.

Customer satisfaction also mediates partially the

relationship between e-CRM and customer loyalty.

The results indicated that e-CRM had a strong effect

on customer satisfaction, where the use of online

tools increases positive feelings and responses from

the customer, and thus it increases customer

satisfaction in most cases, which in turn increases

customer loyalty.

In the case of Algeria, there is still ambiguity in

terms of CRM and customer loyalty. Customer is not

yet considered as the most valuable asset, although

each operator adopted a CRM department in its

structure, however serving customers needs much

more improvement in terms of tools and ways. Also

the problem of preferences and fair competition leads

companies to take into consideration other factors,

which might affect their CRM strategies as political

issues and bureaucracy.

E-CRM

Customer satisfaction

Customer loyalty

0.757 (t=28.507)

0.687

(t=21.303)

0.192

(t=7.243)

E-CRM Customer loyalty

0.889 (t=43.881)

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7. Conclusion

The research used a questionnaire to evaluate the

impact of e-CRM and customer satisfaction on

customer loyalty. The different segments of

subscribers in the Algerian mobile market were

targeted in order to enhance the reliability of tests.

The results showed that e-CRM had positive and

strong relationship with customer loyalty across all

components so, mobile operators should take into

consideration the advantage of the technologies they

have to enhance customer engagement, customer

interaction and service technology. Also, customer

satisfaction had mediating effect within this

relationship, as mentioned in the previous studies

(Rostami, A., Valmohammadi, C. & Yousefpoor, J.,

2014; Bown, J.T. & Chen, S.L., 2001; Lin, H.H. &

Wang, Y.S., 2006).

The obtained results shows the impact of E-CRM

and customer satisfaction on customer loyalty from a

customer centric view, so further research should be

conducted in the future to evaluate the relationship

from enterprise view. Also increasing the sample size

might bring better results and thus better

understanding of the relationship.

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Appendix: Questionnaire Items

1. Strongly disagree 2. Somewhat disagree 3. Neutral 4. Somewhat agree 5. Strongly agree

Variable Code Question

Items measuring E-CRM

Customer engagement

E1 My service provider focuses on building online relationships

with me

E2 I prefer to get services online rather than direct contact with the

service provider

E3 I widely use the internet to keep track of my service provider’s

news

E4 The web site of my service provider contains the needed

information any time.

E5 My service provider encourages me to get services through the

internet

Customer interaction

E6 Customer space in my operator’s web site increases my

commitment.

E7 I frequently use social media to interact with my service

provider.

E8 I am interested in customer space within the web site of my

service provider

E9 It is easy to contact customer service

E10 Customer service is in touch with me frequently

Service technology

E11 The network of my service provider performs with a high

quality

E12 3G technology is enhancing my relationship with the service

provider

E13 Providing services in my service provider’s agencies is faster.

E14 I use SMS to get different services

E15 It is easier to use the electronic ways to get services

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Items measuring customer satisfaction

Current satisfaction

S01 The provided services match my previous expectation

S02 My current service provider is the best future choice

S03 Customer service focuses on customers

Cumulative satisfaction

S04 My decision to choose the current service provider was the best

one.

S05 I had a good experience through the period I spent with my

current service provider

S06 I am totally satisfied with my service provider

Items measuring customer loyalty

Attitudinal loyalty

L01 I am literally ready to be loyal to my service provider,

whatever the circumstances.

L02 I would recommend that the others should switch to my service

provider

L03 I motivate my relatives to buy the services of my operator

L04 I would like to keep the relationship with my service provider

for the following years.

L05 I tell the others good things about my service provider

Behavioral loyalty

L06 I give the priority to my service provider for extra services

L07 I would like to continue with my service provider even if its

prices become higher than the others’ prices

L08 The utilities I get from my service provider make me ready to

pay higher prices.