A study on Antecedents of Customer Relationship

Management in Banking Sector

V.Mohan*, Dr.V.Krishnamoorthy** and Dr.P.Karthikeyan**
*MBA Final Year, Department of Management Stdies, Kong !ngineering "ollege, Perndrai,
!rode # $%&'().!*Mail+ ,ismalmohan-gmail..om
**Assistant Professors, Department of Management Stdies, Kong !ngineering "ollege,
Perndrai, !rode # $%&'().!*Mail+ krishnamoorthydd-gmail..om.
Abstract
/he prpose of the stdy is to identify the important dimensions of .stomer relationship
Management in Banking Se.tor. /his stdy 0as .ond.ted in !rode distri.t dring the period of
1anary )'23 to May )'23. /he resear.her adopted .on,enien.e sampling method. /his stdy
identified for dimensions of .stomer relationship management. /hese are /rst, "ompeten.e,
Ser,i.e 4ality, and Ser,i.e Strategies ot of for identified dimensions, /rst has 5een highly
,ie0ed dimensions among the .stomer. /he identified dimensions 0old help the 5ank
manager to frame sita5le poli.y.
Keywords+ /rst, Ser,i.e 4ality, "ompeten.e, Ser,i.e Strategies.
1.ntroduction
/he 5anking se.tor is 5e.oming in.reasingly .ompetiti,e arond the 0orld. /his is
parti.larly tre in the area of small # medim 5siness 5anking. 6n .ase of 5anking and a.tal
and .ore prod.t 5eing offered to .stomer is homogenos. 7/roy 8effernan et al., )''&9. As a
reslt, se,eral 5anks adopting ,arios relationship marketing strategies in order to gain a
strategi. .ompetiti,e ad,antage in the market pla.e. 7Proem.a and de .astro, )''(+ /retho0an
and S.llion, 2::;, "rane and !..les, 2::%9.
<elationship marketing is .on.erned 0ith esta5lishing, maintaining and enhan.ing
relationships 0ith .stomers and other partners in an effort to sstain and impro,e an
organi=ations .stomer 5ase and profita5ility 7>ronroos, 2::3, P. :9
As a .onse?en.e, the long term relationship 5et0een a 5ank and their SM! .stomers
5rings nmeros finan.ial 5enefits to 5oth 5ank and .stomer 7Sheedy 2::;9, 0hi.h ha,e a real
e.onomi. ,ale 7Bae et al., )'')@ Yamori and Mrikkami, 2:::9. 6n the 5anking indstry, the
importan.e of relationship de,elopment and maintenan.e 0ith key .stomers has 5een
in,estigated 7Madill et al., )'')9. /o .ontine to 5e s..essfl in the .orporate se.tor, small
5anks mst in,est in the long term relationship marketing infra*str.tre to spport a .stomer
oriented approa.h 7Adamson et al., )''%9. /rst is 0idely a.kno0ledged as the most .riti.al
.omponent in the s..essfl fn.tioning of a relationship 7Ai.holson et al., )''29. Bith this 5a.k
grond the resear.her intend to measre the .stomer ,ie0s on different .omponents of "<M
implemented 5y 5ank.
!.Researcher Methodology
/he target poplation of the present stdy is 5siness .stomers in !rode distri.t. /he
resear.her adopted ?estionnaire method for .olle.ting data from the respondents. /he
?estionnaire .onsists of three important parts. /he first part of the ?estionnaire .onsists of
demographi. profile of the respondents, the se.ond part of the ?estionnaire .onsists of ,aria5les
relating to .stomer relationship management and third part of the ?estionnaire .onsists of
,aria5les relating to .stomer loyalty. /his stdy 0as .ond.ted dring the period of 1anary
)'23 to May )'23. 6n !rode distri.t, only (( pri,ate and p5li. se.tor 5anks 0ere .onsidered
for the stdy. Before .ond.tion stdy, pilot stdy 0as .arried ot. /he resear.her has re.ei,ed
only 2;) ,alid ?estionnaires from the respondents.
!.1. "b#ecti$es of the Study
/he follo0ing are the o5Ce.ti,es of the stdy,
i9 /o identify the ,arios dimensions of "<M in 5anking se.tor.
ii9 /o measre the .stomer ,ie0s on ,arios aspe.ts of .stomer relationship.
!.!. %emographic &rofile of the Respondents+
Df the 2;) respondents, !ighty t0o per.ent of the respondents 0ere male .stomers
SiEty eight per.ent of the respondents, ha,e maintain a..ont more than fi,e years, Forty eight
per.ent of the respondentFs annal in.ome is more than <s. $','''. !ighty eight per.ent of the
respondents ha,e only one a..ont, !ighty nine per.ent of the respondents hailing from A.lear
family.
'. Analysis and %iscussion+
6n order to identify the ,arios dimensions of "<M, eEploratory fa.tor analysis 0ere
administered. Prior to this, the ,alidity of data for fa.tor analysis is tested 0ith the help of
Kaiser # Meyer # Dhlin 7KMD9 measre of sampling ade?a.y and Bartletts test of spheri.ity.
6n the present stdy the KMD measre of sampling ade?a.y is '.&(: and Gero per.ent le,el of
signifi.an.e of "hi #s?are ,ale satisfy the .onditions for ,alidity of data for fa.tor analysis.
/he nm5er of ,aria5les in ea.h dimension, !igen ,ale and the per.ent of ,ariation eEplained
5y ea.h fa.tor are eEhi5ited in /a5le 2
(able 1)%imensions of CRM in Banking
Sl.
*o.
+actors
*umber of
$ariables
included
,igen $alue
&ercent of
$ariation
e-plained
Cumulati$e
percent of
$ariation
e-plained
2 /rst 3 ;.%(' 3'.&%2 3'.&%2
) "ompeten.e 3 ).)&' 2).$$: (%.(''
% "stomer Ser,i.e 3 2.32' ;.&%) $2.%%)
3 Ser,i.e 4ality ( 2.)%2 $.&32 $&.2;%
KMD Measre of sampling ade?a.y '.&(:
Bartletts /est of spher.ity 2.&;2 !%
/he important dimensions of .stomer relationship management are H/rstF and
H"ompeten.eF sin.e their !igen ,ales are ;.%(' and ).)&' respe.ti,ely. /he .stomer ser,i.e
fa.tor .onsists of for ,aria5les 0ith the per.ent of ,ariation eEplained ;.&%) per.ent. /he forth
fa.tor narrated 5y fa.tor analysis is ser,i.e ?ality. 6t .onsists of fi,e ,aria5les 0ith the per.ent
of ,arian.e eEplained 5y $.&32.
(able *o) !)Mean Score on different %imensions of CRM
Sl. *o. %imensions Mean Score
2 /rst %.&%
) "ompeten.e %.;:
% Ser,i.e 4ality %.3%
3 "stomer Ser,i.e %.2)
/he important dimensions of .stomer relationship management in 5anking se.tor
are .ompted 0ith the help of fa.tor leading to "<M. <egarding the per.eption on the
fa.tors, /rst has 5een highly ,ie0ed ,aria5le among the 5siness .stomers follo0ed 5y
"ompeten.e, Ser,i.e 4ality and "stomer Ser,i.e.
..Conclusion
/his stdy identified for dimensions of .stomer relationship management in 5anking
se.tor. /hese are /rst, "ompeten.e, Ser,i.e Strategi., and Ser,i.e 4ality. Among the
identified dimensions, /rst has 5een highly ,ie0ed ,aria5le among the .stomer. /he identified
dimensions 0old help the 5ank to frame sita5le "<M related poli.ies.
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