AN INVESTIGATION OF THE IMPACT OF E-CRM ON CUSTOMER LOYALTY IN THE UK MOBILE INDUSTRY: A CASE STUDY OF VODAFONE UK

DISSERTATION By SAPHIE ALIM

Presented in partial fulfilment of the requirements for the degree of

MBA Marketing & Management

University of Wales
London School of Business and Finance

JUNE 2012

ABSTRACT
With the advent of new technologies and given the continuing change in consumers needs, companies have switched from CRM (Customer Relationship Management) to e-CRM (electronic Customer Relationship Management). The purpose of this study was to investigate the impact of e-CRM on customer loyalty in the UK mobile industry, using Vodafone as a case study. Two research problems were addressed, namely 1) What is the impact of e-CRM on customer loyalty in the UK mobile industry and 2) To what extent does e-CRM enhance customer loyalty in the UK mobile industry? This study was conducted from a qualitative research paradigm that was critically discussed to provide the reader with a better understanding of the chosen approach. Both interviews and questionnaires were used in this study. The sample exclusively consisted of university students. The findings indicated that e-CRM may improve customer loyalty through its positive impact on customer satisfaction, which was confirmed as an antecedent of customer loyalty. More importantly, the results revealed that customer satisfaction is the major influencer of customer loyalty. The key attributes of e-CRM that affect customer loyalty were explored, namely service quality, customisation, website design and contact interactivity It has also been found that e-CRM is effective at strengthening relationship with customers and promoting the development of an attractive virtual community which further enhance satisfaction. Paradoxically, the findings suggested that a number of customers remain loyal because of laziness of terminating their contract or familiarity with the network. The results clearly showed that loyalty is not always lead by satisfaction.

Keywords: relationship marketing e-CRM customer loyalty customer satisfaction service quality mobile providers

E-CRM isn't e-CRM unless it affects the customer's experience. (Feinberg and Kadam, 2002)

Table of contents

ABSTRACT ............................................................................................................................... 2 CHAPTER ONE - INTRODUCTION ..................................................................................... 10 1.1 1.2 1.3 1.4 1.5 1.6 Enquiry Overview ..................................................................................................... 10 Research Aims and Objectives .................................................................................. 11 RESEARCH QUESTIONS ....................................................................................... 13 Rationale of the study ................................................................................................ 13 SCOPE AND LIMITATIONS .................................................................................. 16 BACKGROUND OF THE STUDY .......................................................................... 17

1.8 SUMMARY ................................................................................................................. 20 CHAPTER TWO - LITERATURE REVIEW ......................................................................... 22 2.1 2.2 2.3 INTRODUCTION ..................................................................................................... 22 CONCEPTUAL CLARIFICATIONS : CRM AND E-CRM ................................... 22 DIMENSIONS OF E-CRM ....................................................................................... 28

2.4 COMPONENTS OF E-CRM ......................................................................................... 31 2.5 E-CRM FEATURES ...................................................................................................... 33 2.6 BENEFITS OF E-CRM ................................................................................................. 37 2.8 EFFECTS OF E-CRM ON CUSTOMER LOYALTY .................................................. 39

Satisfaction ....................................................................................................................... 43 Source: Adapted from: Oliver (1999), p. 13. ................................................................... 43 Fig 4. Oliver's Four-Stage Loyalty Model .................................................................... 43

2.9 SUMMARY ................................................................................................................... 45 CHAPTER THREE RESEARCH METHODOLOGY ......................................................... 46 3.1 INTRODUCTION .......................................................................................................... 46 3.2 RESEARCH AIMS AND OBJECTIVES ...................................................................... 46 3.3 RESEARCH PHILOSOPHY ......................................................................................... 47 3.4 RESEARCH APPROACH............................................................................................. 51 3.5 RESEARCH STRATEGY ............................................................................................. 53 3.5.1 Advantages and limitations of case study research ................................................. 55 3.5.2 Inappropriate alternative research strategies ........................................................... 56 3.6 DATA COLLECTION METHOD................................................................................. 57 3.6.1 Alternative data collection methods ........................................................................ 61 3.6.2 Methodological triangulation .................................................................................. 62 3.7 ETHICAL CONSIDERATIONS ................................................................................... 63 3.8 PILOT TEST .................................................................................................................. 63 3.9 STRENGTHS OF THE METHODOLOGY .................................................................. 64 3.10 WEAKNESSES OF THE METHODOLOGY ............................................................ 67 3.11 SUMMARY ................................................................................................................. 68 CHAPTER FOUR ANALYSIS AND FINDINGS ............................................................... 69

4.1 INTRODUCTION .......................................................................................................... 69 4.2 DATA ANALYTICAL METHOD: THEMATICS ANALYSIS .................................. 69 4.2.2 Strengths of thematic analysis ................................................................................. 71 4.2.2 Limitations of thematic analysis ............................................................................. 71 4.5 MAJOR THEMES ......................................................................................................... 78 4.5.1 Service quality ......................................................................................................... 78 4.5.2 Website design ........................................................................................................ 80 4.5.3 Customisation .......................................................................................................... 83 4.5.4 Contact interactivity ................................................................................................ 85 4.6.1 Trust ........................................................................................................................ 90 4.6.2 Brand loyalty ........................................................................................................... 92 4.6.3 Cross buying............................................................................................................ 94 4.6.4 Length of relationship ............................................................................................. 96 4.6 SYNTHESIS OF QUALITATIVE FINDINGS ............................................................. 98 4.7 QUANTITATIVE FINDINGS .................................................................................... 101 4.7.1 Supporting qualitative themes for the e-CRM and customer loyalty constructs... 105 4.8 SUMMARY ................................................................................................................. 105 CHAPTER FIVE - CONCLUSION AND RECOMMENDATIONS ................................... 107 5.1 INTRODUCTION ........................................................................................................ 107 5.2 EVALUATION OF FINDINGS .................................................................................. 107

5.3 INTEGRATING RESEARCH AIMS AND OBJECTIVES WITH THEORETICAL FRAMEWORK .................................................................................................................. 108 5.4 E-CRM: LINKING PRACTICE AND THEORY ....................................................... 112 5.5 CUSTOMER LOYALTY: LINKING PRACTICE AND THEORY .......................... 114 5.6 IMPLICATIONS OF THE STUDY ............................................................................ 115 5.6.1 Management and business perspective ................................................................. 116 5.6.2 Customer perspective ............................................................................................ 116 5.6.3 Researcher perspective .......................................................................................... 117 5.7 RECOMMANDATIONS ........................................................................................ 117 Minimising subscribers switching intention ................................................. 118

5.7.1

5.7.2 Extending and developing presence on social networks to increase engagement 118 5.7.3 Special rewards for the most profitable customers .............................................. 119 5.8 CONCLUSION AND FUTURE RESEARCH ............................................................ 120 5.9 SUMMARY ................................................................................................................. 121 REFERENCES ................................................................................................................... 122 APPENDIX ........................................................................................................................ 129 Appendix 1: Consent form to participate to the research study ............................................. 129 Appendix 2: Unstructured interviews questions for Vodafones staff members .................. 130 Appendix 3: Unstructured interviews questions for customers ............................................ 131 Appendix 4: Consumer Online survey via google spreadsheet on

https://docs.google.com/spreadsheet/viewform?pli=1&formkey=dGxTaDdEcmxVX1RUSDJ0 WUJoRXQ2MlE6MQ#gid=0 ................................................................................................. 132

CHAPTER ONE - INTRODUCTION

1.1

Enquiry Overview

The purpose of this research was to investigate the impact of e-CRM tools on customer loyalty, using Vodafone as a case study. E-CRM tools in the context of this research study specifically refer to the facilities offered by Vodafone through its website; for example, search capabilities, MyVodafone account, online helpdesk, e-forums (web 2.0 technologies). This research is qualitative in nature and essentially focuses on online capabilities that affect customer loyalty. This enquiry overview aims to provide the reader with an outline of what to expect from this research study. Each chapter of the study is concisely summarised so as to allow a better understanding of the contents and the purpose of this paper. The first chapter of the study opened up with a comprehensive introduction to the research. This section leads the reader into the study by providing the background and the rationale of the study. Furthermore, the aims and objectives are laid out and equally important are the research questions which the research addresses. The subsequent chapter then delves into extensive reviews of recent literature on the concepts of e-CRM and customer loyalty, and where possible, literature on customer satisfaction was also investigated. The purpose of this chapter was to build robust theoretical foundation from which the rest of the study could be based on. Chapter two ensured that the wheel is not re-invented where certain relevant subjects had previously been researched and could hence enrich this study. It presented a thorough analysis of literature review where different interpretions of authors were critically discussed. Chapter three is essentially concerned with a justification of the chosen research methodology. More importantly, this chapter attempted to rationalise the selected research path. Additionally, the research philosophy, the selected research instruments as well as the sampling methods, ethical considerations and pilot study are discussed in this chapter. The chapter also provided the reader with a full understanding of the way in which the research objectives are bridged with the direction the study takes.

Chapter four mainly focused on presenting and examining the data. In this chapter, the reader is taken through the data collection and analysis process. It is in this section that the research questions were essentially addressed. Thematic analysis, which is the selected data analysis tool for this study was justified; alternative analysis tools deemed to be inappropriate for the study was discussed therein. The study finally concluded with chapter five which proposed feasible recommendations to Vodafone concerning the way in which e-CRM can be efficiently leveraged so as to positively influence customer loyalty among its target audience. These recommendations derived from the empirical findings from this research study, discussed in the preceding chapter. Moreover, chapter five sought to evaluate the findings of this research in relation to the research questions and objectives set out at the beginning of the study.

1.2

Research Aims and Objectives

This research investigates the influence of e-CRM technology on customer loyalty, with a specific focus on the UK mobile phone industry using Vodafone as a case study. To achieve this, the impact of e-CRM on customer loyalty will be appraised from a customers perspective, on the basis of experiences with online facilities offered by Vodafone through e-CRM applications. Subscriber experiences are critical to determine the level of service in the mobile industry. Online facilities include Vodafones online helpdesk, ease of navigating the website, information quality and availability in real time, online forums, website design, search capabilities, customised products and services, online account management with Vodafones personal account, privacy and security as well as online top up and purchases. This study aims to achieve the following goals.

1. To critically review existing conceptual models and theoretical frameworks related to e-CRM and customer loyalty.

2. To assess the effectiveness of e-CRM in strengthening relationships with customers.

3. To investigate the role of e-CRM in building an attractive virtual community.

4. To recommend optimal marketing strategies to improve customer satisfaction and customer loyalty through the effective implementation of e-CRM strategy.

1.3

RESEARCH QUESTIONS

Ultimately, the quality of a research question determines the success of a research project. Porter (2005) highlighted that a very elaborate research question is a key first step toward providing a sound conceptual foundation for a research project. Kotler (2005) asserted that a well thought out question should be concise, relevant, clear, evocative and researchable. More importantly, he emphasised that the research question ensures the appropriateness of the data collected as it is key step towards generating conceptual and logistic aspects of the research plan. The purpose of this research is to critically evaluate the effectiveness of e-CRM as a means of influencing customer loyalty, using Vodafone as a case study. To achieve the research aims, it is convenient to divide the research questions into two questions. This subdivision will also push towards more conclusive results to ensure a refined outcome. 1. What is the impact of e-CRM on customer loyalty in the UK mobile industry? 2. To what extent does e-CRM enhance customer loyalty in the UK mobile industry?

1.4

Rationale of the study

Growing interest in mobile usage worldwide coupled with the advent of new technologies in the sector, have seen the global mobile phone service industry boom. In particular, the UK mobile industry has matured becoming highly competitive. Customers have a great deal of choice and it is becoming harder to differentiate products and services. Alhaiou et al. (2009, p. 78) argue the rapid development of advanced technologies has shifted competition from price and core service to value added services. This suggests that not only can customers easily switch mobile service providers owing to the many alternatives available to them, but it has also become easier for them to compare prices and services. These market trends have led mobile providers to shift emphasis away from pure product development towards a customer-focused approach. More importantly, telecommunication marketers strive to adapt to customers requirements implementing new business models and producing innovative content in an attempt to exceed expectations and encourage loyalty. Examples include new strategies and applications such as e-CRM technology to better identify customers needs, increase customer value, attract potential customers and retain existing customers.

Thus, it can be suggested that building stronger relationship with customers is essential to remain competitive and retain customers. Fluss (2010) emphasised that customer retention and customer satisfaction have become major priorities for mobile companies. As a result, the UK leading mobile providers, (such as Vodafone, T-mobile, Orange, O2 and Free) are increasingly adopting a customer-centric strategy based on electronic customer relationship management (e-CRM). Aydin and Ozer (2005, pp. 910-925) support in arguing that telecommunications companies use e-CRM as a tool for managing customer relationships and enhancing customer satisfaction and loyalty. Bergeron (2004) defines e-CRM as customer relationship management on the web that involves the use of e-mail, e-commerce activity and any other internet-based touch points which increase interactions with customers. Wang and Yang (2004) describe e-CRM technology as a process designed to help companies improve marketing efficiency, customer relationship strength and sales effectiveness. While Yaeckel et al. (2002, p.247) claim that eCRM customers use self-service tools on the web rather than let company' employees assist them directly. This suggests that customers are becoming active players in the purchase and service process. Wand and Head (2006, p. 107) suggest that: long-term relationships with customers are key to stability in an increasingly dynamic market; hence the rising importance of e-CRM technology and customer loyalty in todays business world. Many authors have highlighted that it costs up to five times more to acquire a new customer than to retain an existing one (Silverstein, 2000). This indicates that developing customer loyalty is important. In this study, customer loyalty is seen as a consequence of e-CRM performance as past literature would suggest. This is because the primary goal of e-CRM is to convert customer information into customised products and services that further increase customer satisfaction and loyalty (Almotairi, 2008). It is widely believed that e-CRM positively affects customer loyalty by promoting customer satisfaction which is one of the major goals of e-CRM (Rosenbaum & Huang, 2002). Surveys show that e-CRM has a positive impact on customer satisfaction. InfoWorld further conducted a research study that revealed 77 % of e-CRM strategies fail to meet business objectives (Apicella, 2001). Feinberg and Kadam (2002) indicated that this failure may derive from the unsuccessful implementation of e-CRM features which are believed to have a significant impact on customer satisfaction.

Noting the lack of research in the area of e-CRM and customer loyalty, Lee-Kelly et al. (2003) investigated the relationship between e-CRM performance and customer loyalty in an e-commerce (e-retail) environment. They found a positive relationship between the two variables and demonstrated the capability of e-CRM to reduce price sensitivity through an enhancement of customer loyalty. To draw from findings of past literature, little empirical research has been conducted to examine the impact of e-CRM performance on marketing performance (Rust et al., 2000). Lee-Kelly et al. (2003) reiterate that little systematic effort has been made to explore the relationship between customer relationship management and customer loyalty within an electronic business environment. Similarly, existing literature has shown that research is needed around the link between e-CRM applications and customer loyalty in a mobile service environment. The above arguments support the inference that empirical research to investigate this relationship merits attention. Therefore, an empirical study is needed to address this gap in knowledge and to gain a better understanding of the underlying consequences of e-CRM on customer loyalty. Secondly, this study attempts to improve upon prior research in determining optimal strategies to enhance customer satisfaction and customer loyalty through an effective e-CRM management system, based on a case study of Vodafone. As a result, this research should be conducted for three reasons. Firstly, based on new technologies, mobile customers are changing their behaviour and require less in terms of offline service preferring instead to engage with online service assistance through mobile company websites. As the mobile industry has moved online, e-CRM has become a core requirement. Secondly, mobile companies need to identify the best strategies to deliver superior customer service online and to interact with customers to win loyalty. This suggests that they should understand how to build an attractive virtual community that will strengthen their relationship with customers. There has been no research to date that has examined the impact of e-CRM for Vodafone. This research will help fill this gap while identifying key theoretical frameworks related to e-CRM and customer loyalty in a mobile service context. Finally, this research aims to provide mobile companies in the UK with a better understanding of their customers needs. The objective is also to assist these companies in developing effective e-CRM strategies which can best help them deliver superior customer service to retain the most valuable customers.

1.5

SCOPE AND LIMITATIONS

Romano and Fjermestad (2003, pp. 233-258) identified five major non-mutually exclusive eCRM research areas on the basis of an e-CRM meta-analysis. This classification consists of e-CRM markets, e-CRM business models, e-CRM knowledge management, e-CRM technology and e-CRM human factors. This study, however, will only concentrate on e-CRM technology. E-CRM is a broad-based concept that covers not only the analytical and operational level of practice but also the collaborative and strategic ones. This technocentric categorisation of eCRM practices is fairly complex. Consequently, because of time constraints, this study will mainly focus on the strategic aspect of e-CRM since it is considered a core customer-centric business strategy that is designed to win and keep the most valuable customers for the company. Another restriction is that data collected for this research will be limited to what is available through the Vodafone website (such as company reports, website contents) and secondary information that is publically accessible. A lack of access to internal marketing and statistical data may reduce the relevance of this study. In addition, it has been deemed necessary to exclude some groups of customers in order to conduct a more focused research and to strengthen the pertinence of the study. Accordingly, this study will concentrate only on university students between the ages of eighteen and thirty-five since they are believed to be the most significant market segment for mobile providers in the UK. On the other hand, they are said to be the heaviest users of the internet and subsequently online services (Xevelonaki, 2005). Another point worth noting is that only individuals with more than one year of experience will be considered. This will ensure that all participants have some experience with Vodafone customer service. As a result, the generalisation of these findings may be considered inconclusive or rather deficient and incomprehensive. The findings of this research study may only be applicable to the UK mobile industry and not necessarily to other countries worldwide.

Notwithstanding the above-discussed limitations, this study will help assess the effectiveness of e-CRM in strengthening relationship with customers. On the other hand, this research hopes to contribute further to the importance of e-CRM as a practical tool to increase customer satisfaction and achieve the mutual benefits between subscribers and service providers in the UK mobile industry.

1.6

BACKGROUND OF THE STUDY

The Mobile service industry has become the most promising and profitable area of telecommunication, with more than 1.7 billion subscribers worldwide and about 80% of the global population are covered by mobile networks (Fluss, 2010). Growing in mobile phone ownership has led to a shift from landline phone usage to a dependence on mobile phones. On 1 January, 1985 Vodafone initiated the first mobile phone call in the UK. This marked the birth of the UK mobile industry that revolutionised telecommunications worldwide (BBC, 2005). The UK has one of the largest mobile markets in Europe, in terms of revenue and the number of subscribers and unlike other European markets, none of the companies currently trading dominates the market (Ofcom, 2009). Furthermore, it has been suggested that the UK mobile market has almost reached saturation with 76 million subscribers in 2008. This indicates that the vast majority of individuals in the UK use mobile services to communicate (Mintel, 2008). The UK mobile phone industry is led by five main companies which all provide 3G services. These include 3 UK, Vodafone, T-mobile, O2 and Orange. According to Phelps (2001, p. 16-17), 96 percent of unhappy customers never complain. But if their problem remains unsolved they usually tell ten other customers. This suggests that poor customer service encourages negative word-of-mouth coverage that can lead to customer defection. Phelps (2001, p. 19-40) suggests three main reasons for customer defections; specifically when there is too little contact with customers, too little individual attention paid to customers and poor overall customer service. The same author asserts that improvement in these areas can reduce customer defection. As a 5 % increase in customer loyalty generates a 95 % rise in the net present value, many mobile providers are adopting a customer-centric strategy to improve retention (Fluss, 2010). From these statements, it can be inferred that it is vital for companies to retain customers by building closer relationship with them.

E-CRM has become the main web-based technology to manage relationships between companies and customers, bringing organisations and people closer than ever before. In order to improve efficiency and effectiveness while delivering products and services to customers via ICTs, many mobile service companies have started to review their strategies of building relationships with customers. They are thus initiating electronic customer relationship management strategy (Jang et al., 2006; Singala, 2008). In 2008, e-CRM was identified as a major priority amongst of business executives (Fletcher, 2008). Nowadays, relationship marketing (RM) is at the heart of mobile companies strategies as it is portrayed as the main means to strengthen relationship with customers in the long run. Cadogan (2000) underlined two factors that are crucial to the success of any relationship marketing strategy. These factors include interaction with customers as well as the reliability and availability of information. Accordingly, many mobile providers are investing in innovative technologies (-such as eCRM process-) encouraging a customer-focused strategy based on relationship marketing. Agrawal (2003) suggests that relationship marketing is about putting the customer first and delivering customised products or services. This approach which derives from RM is termed customer centricity. Customisation is achieved through e-CRM that is designed to strengthen customer centricity as illustrated in the figure 1 above. As the following figure illustrates, eCRM also helps companies synchronise business processes with back-office and front-office applications, multimedia contact centers and web capabilities (Pan and Lee, 2003).

Source: Aspect communications

Fig 1. Customer centricity convergence

Customer-centricity consists of adapting products and services to customers needs while anticipating market changes. Kotler and Armstrong (2009) believe that customer centricity is concerned with disseminating, gathering and using available information about customers and competitors. Increasingly, mobile providers are adopting this strategy in an attempt to develop superior value of customer service that will further enhance customer experience and thereby customer loyalty. Consequently, e-CRM is vital for mobile service providers since they use this technology as a tool for managing their customer centric strategy that is concerned with building relationship with customers and enhancing their loyalty. This point is supported by Scullin et al. (2004) who explained that e-CRM enhances customer support systems that combine phone, fax, email and internet-based self-service applications. As these elements optimise the service and interaction, the authors deduced that they contribute to promote satisfaction and subsequently customer loyalty. Research conducted by Taylor and Hunter (2002) demonstrates a positive relationship between e-CRM, customer satisfaction and customer loyalty. In addition, other studies into e-

commerce and e-service have revealed that customer satisfaction can substantially increase word-of-mouth and repeat purchases (Schoder and Madeja, 2004). Lee-Kelly et al. (2003) confirmed that customer loyalty could be enhanced through an effective e-CRM system applied within an e-commerce environment. These results support the need to develop an eCRM technology to achieve customer loyalty. It can therefore been suggested that e-CRM is the driving force that enables the characterisation of customers that increases customer profitability creating substantial value for companies. Indeed, the benefits of applying e-CRM applications in a mobile phone environment are massive as they offer a huge opportunity for mobile providers to create innovative strategies and contents. However, mobile providers need to develop an insightful understanding of consumer buying behaviour to better retain them. Therefore, this study is intended to help mobile service providers to plan their e-CRM strategy to better meet customers requirements. By doing so, mobile providers will increase customer satisfaction and ultimately, provide subscribers with a solid rationale for repeat purchases. This study is thus significant as it is a first attempt to investigate the relationship between e-CRM and customer loyalty in the UK mobile industry, using Vodafone case study.

1.8 SUMMARY
This chapter introduced the research that is reported upon this dissertation. It provided an overview of the study, by identifying the main purpose of the study, identifying the key objectives and explaining the rationale of the investigation. Moreover, the chapter discussed the scope and limitations of the research as well as the background of this study. Chapter Two seeks to comprehensively explore existing literature on e-CRM and customer loyalty.

CHAPTER TWO - LITERATURE REVIEW

2.1

INTRODUCTION

This chapter focuses on the current research studies that have been conducted in fields related to e-CRM and customer loyalty in an e-business environment. The objective is to examine existing literature in an attempt to strengthen the data collected for the purpose of this work. Research in the area of e-CRM and customer loyalty has only recently become of great interest to researchers in the past five to seven years. The reason is two-fold 1) the emergence of advanced technologies has brought new opportunities (new channels like voice technologies) for companies. Firstly, they can easily interact with customers and offer them solutions in real time. Secondly, they can create customise products and services that accurately suits customers needs. 2) Companies have understood the value of enhancing e-CRM efficiency in order to increase customer satisfaction and encourage customer loyalty. Moreover, further relevant literature on the topic will be examined to provide a broader scope into the area of research. Thus, dimensions, components and benefits of e-CRM will be explored. Additionally, e-CRM features and implementation will be explained. Last but not least, this chapter will introduce customer loyalty, its relationship with customer satisfaction and e-CRM on the basis of existing literature.

2.2

CONCEPTUAL CLARIFICATIONS : CRM AND E-CRM

In todays fast-paced telecommunications sector, customers are becoming highly demanding and more knowledgeable requiring maximum attention. Researchers have shown that customers intend to switch providers when they are not satisfied (Chen and Chin, 2007; Khaligh et al., 2012); this will undeniably have adverse effects on customer loyalty. Firms are, therefore, shifting their focus to the customer in order to satisfy and retain them, hence the rising importance of Customer Relationship Management (CRM). As CRM has become a major challenge for many companies in this heightened competitive environment, many experts

have tried to propose the most accurate definition possible of the concept. Thus, approaches and understandings vary from one author to another. CRM emerged in the marketing area in early 1990's (Gummesson, 2002, p. 3; Hughes, 2003, p. 21). Information technology (IT) firms have a tendency to describe CRM as the software applications that automate the marketing, selling and service functions of businesses (Dyche, 2002, p. 201). This equates CRM with technology. Yaeckel et al. (2002, p. 245-246), by contrast, strongly believe that CRM is not a software product or technology. Instead, it is a process which manages interactions between a business and its customers. This is supported by Greenberg (2001, p.14) who claimed that CRM is not a technology, though. Technology is a CRM enabler. According to Bergeron (2002, p.3), CRM can be defined as The dynamic process of managing a customer-company relationship such that customers elect to continue mutually beneficial commercial exchanges and are dissuaded from participating in exchanges that are unprofitable to the company. Bergeron fundamentally described CRM as a managerial tool to increase commercial exchanges, efficiency and productivity. Nonetheless, Bergerons conception of CRM was further questioned by Alexander and Turner (2001), who professed a more economical view of the concept highlighting its profitable aspect rather than its managerial one. They believed that CRM is about delivering profitable revenue and increasing profit by evaluating what to invest in and appraising what offers the best return on resources of all types. McKenna (1991, p. 14) also gave an economical interpretation of CRM when he stated Rapid advancement in technology and the subsequent changes it brings means that firms that fail to establish a defined CRM process will be unable to claim the expertise and full range of skills needed to bring products and solutions to the market timely and cost-effectively. These definitions, however, fail to acknowledge the capability of CRM to enhance customer loyalty. It is clear from the above statements that despite their attempt to give an accurate interpretation of the CRM process, these authors do not take the importance of the customer into account. Shan and Lee (2003) asserted that the traditional CRM has limitations in supporting marketing, sale and service. They stressed that these limitations also include outside multichannel

customer interactions that combine telephone, the Internet, e-mail, fax and chat. This explains the emergence e-CRM as a new concept. Croteau and Li (2001) reiterate that the emergence of the Internet and advanced technologies has led to new opportunities for building stronger customer relationship. This is supported by Chan and Lam (2009) who postulated that internet technology has brought electronic CRM which is an enhanced version of the traditional CRM. They justified this statement by arguing that e-CRM has enabled organisations to use internet technologies to attract new customers, track their expectations, identify their needs and online behaviours and customise support and services. Dyche (2002, p.10) summarised the above interpretations well when he stated that search engines facilitate customers experience increasing interaction between businesses and customers. The mobile industry has one the most important customer churn rates in the business world as it can easily exceed 40 percent per annum (Donio et al., 2006, p. 445). The authors mentioned that mobile phone service providers are losing 2-4 percent of their subscribers every month. This is often due to increased customer defection that leads to disloyal customers and thereby millions of lost revenue and profit for mobile companies (Rigby et al., 2002). Accordingly, managing customer relationship has become a major concern for service providers in the UK mobile industry; hence the implementation of internet-based services to meet customers needs and expectations (Norton, 2007). According to Feinberg et al. (2002), the availability of the internet encourages customers to use web more frequently and to be more comfortable with online applications. They put forth that customers who are not getting involved to use web will get more involved tomorrow and those who have never made online purchase today will buy tomorrow on the internet. This is further vindicated by Young (2001, p. 45) who stated that e-CRM industry compound growth rate all over the world was 27 percent, from $5, 2 billion in 2000 to $17 billion in 2005. E-CRM therefore lies at the heart of all mobile phone business interactions, in particular customer interaction giving supervisors and business managers full access to interaction histories whatever the channel (e.g. e-mail, chatting, forums, voice). Rigby et al. (2002) reported that e-CRM has disclosed a new medium for business and marketing scope to enhance data analysis of customers behaviors, and environments for one to one marketing have been enhanced. Thus, e-CRM is vitally important for mobile phone companies as it allows them to easily

track all sales and marketing activities. They can therefore pinpoint target and customise products and services according to each customer profile (Flavian et al., 2006). Purba (2001, pp. 112-16) highlighted that one of the key duties of e-CRM is to consider how many touch points are potentially created between a business and its customers. These touch points comprise e-mail, newsgroups, chat groups, website visits and webcasts. Purba (2001, pp. 112-16) finally considered these touch points as the most important aspect of e-CRM. Rigby et al. (2002), however, contended that e-CRM is not only concerned with technology or software. They put forth that it is also about aligning business processes with customer strategies supported with software and technology whilst Rosen (2001) put forth that E-CRM is about people, processes, and technology. Romano and Fjermestad (2003, pp. 233-258) identified five major non-mutually exclusive eCRM research areas on the basis of an e-CRM meta-analysis. This classification consists of e-CRM markets, e-CRM business models, e-CRM knowledge management, e-CRM technology and e-CRM human factors. Still, there is no agreed definition for e-CRM. Whilst Dych (2002) claimed that e-CRM is the combination of software, hardware, application and management commitment, many authors use a customer-centric thinking to describe e-CRM (Norton, 2007; Korotov, 2002; Singh, 2002). Norton (2007) improved this definition when he added that e-CRM aims to enhance customer service and customer retention delivering analytical capabilities. Furthermore, Kotorov (2002) strongly believes that e-CRM is the application of Information and Communications Technology (ICT) which is designed to provide higher scale and scope of customer service. Meanwhile, Singh (2002) revealed that companies need to implement e-CRM in order to achieve effective customer service and to build stronger relationship with customers online. This is supported by Fjermestad and Romano (2003) who maintained that e-CRM improves customer service, retains profitable customers while eliminating economically invaluable ones. Scullin et al. (2004) also defined e-CRM from a marketing perspective. They postulated that although e-CRM does not change the marketing, it improves companies effectiveness through better customer service. Adebanjo (2003) further developed this definition explaining that e-CRM minimises communication costs with customers and rationalises the workflow. In addition, he mentioned that because of integration with enterprise system, the main objective of e-CRM is to enhance market segmentation, customer interaction, personalisation as well as relationship opportunities.

It is further added by Shan and Lee (2003) that e-CRM has the power to create substantial value by enabling organisations to collect, organise and segment customers information. Shan and Lee (2003) suggest that this combination of channels in all business areas is critical to increase value whereas Purba (2001, p. 112-16) contends that e-CRM is superior to CRM as it creates higher value-added. Four categories of e-CRM have been identified: strategic, operational, analytical and collaborative e-CRM. In fact, Dych (2002) and Karimi et al. (2001) classified e-CRM in two categories. Operational e-CRM which consists of customer touch up points (e-mail, telephone, direct sales). It focuses on the automation of customer-facing processes namely, marketing and customer service. Analytical e-CRM focuses on customer relationships analysis through data mining. The purpose is to understand and identify customer demographics, purchasing patterns, and other factors so as to build new business opportunities. Collaborative e-CRM is described as a portal, a partner relationship management application or a customer interaction center (Gefen and Ridings, 2002). Finally, strategic e-CRM is a core customer-centric business strategy that aims at retaining the most protable customers. Dimmitriades (2006, pp. 782-800), however, strongly believed that the primary goal of eCRM is to reduce costs while increasing incomes and profits. This author explains that the best way to achieve this goal is to encourage customers to increase their transactional dealings with the mobile service provider. According to Dimmitriades (2006, pp. 782-800), if transactions are made more convenient, useful and less expensive for the customer, he or she will be more likely to be satisfied and subsequently to remain loyal. Satisfaction is portrayed as an immediate goal of e-CRM (Research, 2001). According to Adebanjo (2003), on the other hand, many companies fail to implement e-CRM because they do not consider the functional attributes and application costs. The author emphasised that important factors are neglected. These factors comprise forward and backward architecture compatibility, configurability, cultural alignment and implementation time. This is supported by Anon (2002, p. 56) who pointed out that the technological side of e-CRM involves many seams that must be integrated carefully as there is no single software to fill this gap. Kennedy (2005, p. 64) also argued that the key issue businesses are facing while implementing e-CRM is data integration and IT architecture because companies are not considering the Web as a single channel and it is not isolated from other channels.

Therefore, it is essential for companies to consider these limitations as they can hinder eCRM effectiveness and thereby affect its impact on customer loyalty. Aligning e-CRM with organisational processes and customer value critically determines e-CRM success (Karimi et al. 2001; Corner and Hinton, 2002). This is supported by Chen and Chen (2004) who proposed that there should be a critical appraisal of business model, system architecture, integration of IT business strategy and integration of IT before e-CRM implementation. The rationale behind this is to ensure the coherence between technological innovations (e-CRM), business strategy and marketing (customer retention, customer loyalty) as e-CRM effectiveness can significantly affect the business processes within a mobile company. Darell et al. (2003) identified some of the differences between CRM and e-CRM on the basis of six major criteria. On the other hand, Pan and Lee (2003, p. 96) discussed these differences based on three main criteria. The following table is inspired from these authors. The most relevant criteria have been reported by the researcher of this study.

Criterion System interface

CRM Work with back end application through ERP system

e-CRM Design for front end application which in turn with back end application through Enterprise Resource Planning (ERP) system data ware house and data mart. In addition to telephone contact also initiated to internet e-mail wireless mobile & PDA technologies. No such requirements the browser is the customer portal to E-CRM. Highly individualized dynamic & personalized view based on purchases & preferences are possible. Each audience individually customizes the views. System is designed around customer needs.

Customer contact

Customer contact initiated through traditional means of retail store, telephone and fax Web enabled applications required a Pc client to download various applications Personalised view for different audience is not possible. Individual required programmes of changes

System overhead (client computers) Customisation and personalization of information

System modification and maintenance

System focus

Implementation is longer and management is costly because the system is situated at various locations and on several servers. System is designed around product and job function

Customer data

Data warehouse

Reduced time and cost. System implementation & expansion can be managed in one location on one server. WebHouse

- Customer information - Transaction history - Products information

- Customer information - Transaction history - Products information - Click stream - Contents information One-to-One marketing - Real time service - Two-way service - At any time - From anywhere

Customer service

Target marketing - Static service - One-way service - Time and space limits

Fig 2. A comparison between CRM and e-CRM

This distinction emphasises that e-CRM is an enhanced version of CRM. It also suggests that CRM implementation is costing and time consuming while e-CRM is very fast with less operational costs. Furthermore, it indicates the focus of e-CRM on the customer; hence the importance of investigating the link between e-CRM and customer loyalty. From the above, it is clear that CRM and e-CRM are the strategies which companies can use for building stronger relationships with customers in order to be profitable. Despite some of the differences of opinion, one aspect remains consistent: e-CRM expands the traditional CRM techniques by integrating technologies of new electronic channels, such as web and voice technologies combining them with e-business applications into the overall enterprise e-CRM strategy. From any perspective, e-CRM tends to have a positive impact on customer loyalty improving interaction with customers and thereby customer value.

2.3

DIMENSIONS OF E-CRM

Whilst Morelli et al. (2001) observed four dimensions of e-CRM which consist of personalisation, tracking and tracing, e-communication and e-knowledge, Ab Hamid and McGrath (2005) argued that there are twelve dimensions of e-CRM applications. These include integrated marketing channels, online community, rewards, customisation, information quality, ease of navigation, customer service (quality), site security, value-added services, perceived

trust and price attractiveness. Jellasi and Enders (2004), however, identified four dimensions of e-CRM namely, customer selection, customer retention, customer acquisition and customer extension. Drawn from the previous literatures and the aforementioned, seven dimensions have been deemed essential for managing customer relationship on the web. Customer service quality Customers are increasingly demanding requiring continuing help for enquiries. Therefore, online helpdesk should be able to effectively address queries. Delivering excellent customer service is vitally important in a mobile phone service context because customer service is considered a major interface between subscribers and mobile phone providers. Customer service is associated with quality and buying decisions (Scullin, et al., 2004). Customer service also comprises order fulfillment process which is concerned with delivering the right product at the right time while responding to customers enquiries. If managed properly, e-CRM can deliver efficient customer service that may lead to stronger and more intimate relationship with customers. This will further enhance their loyalty reducing customer defection.

Customer retention It is widely believed that retaining existing customers is far more profitable than acquiring new ones. In addition, knowing and understanding that customers are dissatisfied can help companies anticipate customer behaviour. The more customers leave, the more the revenue; hence the greater the loss of revenue suggesting that customer retention is the key to profitability and sustainability for companies. Customer selection Customer selection consists of customer targeting, segmenting and tracking that result in products and services customisation to meet customers expectations. E-CRM provides companies with the capability to capture and analyse customers behaviours through click streams data by tracking customers attitudes when they are navigating or purchasing online. Customisation is vital as it enables companies to accurately target valuable customers and to produce value added products considering customers needs. Moreover, customisation can

turn customers into product makers rather than simply product takers (Winer, 2001, p. 65). This is particularly important in the current mobile phone industry where customers are increasingly empowered by mobile phone providers. Customisation helps them to choose their preferred plan, mobile wifi access or phones. They can also choose their product updates and other attributes that match their tastes. Customer extension Customer extension concentrates on the optimisation of the lifetime value of the customer. Organisations expand this through e-CRM via cross-selling. For instance, the company will have the possibility to instantly identify if there is some change in customer account like address change, marital status change, and large money transfer.

Online community Customers can share information and interact easily with each other through e-CRM applications (online forums, chatting). They can also benefit from the online helpdesk service in case of any inconvenience. These experiences encourage stickiness the extent to which a company is able to keep customers use a site relatively longer and return. This contributes to enhance customer loyalty (Ab Hamid et al., 2010).

Information quality and ease of navigation Existing literature related to information systems reveals that information quality is concerned with reflection of relevancy, recentness, accuracy, sufficiency, consistency and understandability. Ease of navigation involves both the format of the content layout and ease of use of the site. When information searching and navigation are simplified on a website, it has been shown that consumers decision making efficiency enhances. Accordingly, available information on the website should be easily understandable and up-to-date. In a mobile phone environment where switching depends on only a mouse click, it is essential for companies to facilitate customers navigation so that customers will quickly access to information they need with the least effort possible.

2.4 COMPONENTS OF E-CRM

Jutla et al. (2001) identified four major components integrated in e-CRM system namely, engage, purchase, fulfil and support processes as shown in the figure below.

Engage
E-CRM

Order

Fulfil

Support

Source: Adapted from Jutla, et al., 2001

Fig 3. Key e-CRM components

Engage component Jutla et al. (2001) put forth that the engage component is the network which helps achieve the process of encouraging valuable customers to purchase a product or service. Most of the time, when a customer navigates the website looking for a specific product or service, he or she simultaneously browses engaging in exploring contents, searching, comparing, interacting, configuring, learning and asking questions.

Order component

Order component is the step where a customer selects and makes a commitment to buy a product or a service. This consists of various payment mechanisms, selections and order management mechanisms (Jutla, et al., 2001). Jutla et al. (2001) explained that customer ordering is related to enterprise resource planning (ERP), just-in-time (JIT) inventory control and other logistical and customer-focused devices. This improves customer experience and thereby customer expectations since delivery date and order status information will be more accurate for customers. Ordering process also enables customers to instantly modify their orders until the time of shipment. Fulfilment component Fulfilment is linked to managing information on product or service movement. Customers can send back products and obtain replacement in case of inconvenience (product or service failure). The critical enablers in fulfilment comprise back-end process integration, global sales governance and delivery capability worldwide (Jutla et al., 2001). The advantage of this process is two-fold 1) customers can access product availability as well as lead time. 2) The service is fully automated; this speeds up the service strengthening its effectiveness. Support component Support component is concerned with the capability of e-CRM to handle customers needs and expectations through customisation, convenience and trust. A prime example of this is self-service application that derives from this process. In fact, customers can access a wide range of information that enables them to change their personal details online and to track their orders at customer level.

2.5 E-CRM FEATURES

E-CRM features consist of e-CRM efforts to customise products, services and interaction with customers in order to encourage loyalty and increase satisfaction. These features generally involve self-service knowledge bases, automated e-mail responses, attractive web-site design, online loyalty programmes as well as personalisation of web content (Ho and Wu, 1999). Feinberg et al. (2002) reported that e-CRM features are vitally important for customer relationship management in e-business. They are widely defined as optimal website functionality or tools (Khalifa et al., 2002; Khalifa and Shen, 2005). Furthermore, Khalifa and Shen (2005) highlighted that they are essential for increasing and personalising interaction with customers. Anton and Postmus (1999) and Feinberg and Kadam (2002) developed a more customercentric e-CRM approach by identifying an extensive list of e-CRM features providing customer value. However, Feinberg and Kadams 42 e-CRM features have a limitation as they fail to accurately define e-CRM which is an ongoing changing process. In their research studies related to the relationship between customer satisfaction and e-CRM, Lu (2003) and Feinberg et al. (2002) showed that e-CRM tools determines customer experience and thereby customer loyalty. They classified these features into three major stages: prepurchase, at-purchase and post-purchase e-CRM features. They further argued that e-CRM tools reflect the companys capability to meet customers expectations within those features. Feinberg et al. (2002) concluded that e-CRM features play a leading role in the generation of overall satisfaction and loyalty of customers. Nine e-CRM features have been deemed essential for the purpose of this study which focuses on the relationship between e-CRM and customer loyalty in a mobile phone service context. They have been classified into three categories.

Pre-purchase e-CRM features

The pre-purchase phase is concerned with the customers need search for and to find accurate and reliable information about a product or a service. It comprises four features.

Web site presentation

This is concerned with the attractiveness of the website which refers to its design, wealth of information (the quality and variety of the content: pictures, images, articles), ease of use (the ergonomics), the degree of interactivity and unique services (Lee and cheung, 2002; Ho and Wu, 1999). This feature is vitally important for customer retention. Not only does it contribute to attract customers but it also helps generate repeat purchases and free word-of-mouth advertising (Khalifa and Shen, 2009). Access to information

It refers to the ease of use of the website, how it is easy for a customer to search and find information about products and services (Dotan, 2002). Ease of navigation makes it easy for customers to find the right product information and place an order much quicker (Cho and Park, 2001). Information quality

Information quality consists of streamlining organisational information and keeping it up-todate. It is also concerned with the precision and the conciseness of the content on the website. The reliability of the information is also a key criterion that is likely to affect customer evaluation and perception of the website while surfing (Cho and Park, 2001; Ho and Wu, 1999). Loyalty programme

This is a programme that enables customers to score points for every transaction made while visiting the website. These points are in turn redeemable for free gifts, coupons or cash rebates. This increases interaction with customers while facilitating browsing and access to information (Ho and Wu, 1999). 34

Search capabilities

Refined and advanced search engines enable customers to find specific information. In fact, they can specify several different criteria for quickly retrieving the accurate information. Search capabilities save customers time enhancing customer experience and subsequently customer satisfaction (Khalifa and Shen, 2005; Lee and Cheung, 2002).

At-purchase e-CRM features At-purchase e-CRM features can give customers a greater feeling of security in making their transaction online (Rattanawicha and Esichaikul, 2005). This indicates that it is important that web designers enhance ease of navigation, provide reliable information and secure way customers transactions. This stage consists of three e-CRM features. Promotions

This is related to the promotions offered to customers through purchasing process. In a fastpaced and challenging marketplace, promotions are necessary to acquire new customers (Ho and Wu, 1999). Ordering

This is concerned with purchasing and shipping options that are available to the customer. Shipping charges can have a considerable impact on customer buying behaviour, that is why this feature is essential in the e-CRM process (Khalifa and Shen, 2005).

Post-purchase e-CRM features Successful post-purchase enhances customer experience while ensuring the success of the business, especially, in the mobile phone service environment where it is deemed the most 35

important stage. As a result, each interaction with the customer (after his or her transactions) should be considered as a starting point toward building a strong relationship with customers (Durkin and Howcroft, 2003). Kotler and Armstrong (2004) stated that customer satisfaction can be described as a positive post-purchase experience. Smith and Chaffey (2005) put forth that with the advent of new technologies, companies websites have much potential and many more opportunities to increase customer satisfaction through online assistance and interaction. Therefore, companies should encourage customers to report problems and ask questions. ECRM features at this phase are critical for enhancing customers post-purchase satisfaction via one-to-one interaction and support from the online helpdesk. This stage consists of two major features which are detailed below.

Problem solving

Problem solving is about supporting customers when they need help. This assistance is generally made through online manuals, FAQs, chat area and others more interactive such as web agents. Problem solving is vital as it improves customer experience and thereby customer trust and retention (Khalifa and Shen, 2005; Lee and Cheung 2002; Cao et al., 2003). After-sales service

This related to customer support after the purchase of a product or service (warranty and return policies) (Lee and Cheung, 2002; Gefen, 2002; Cheung ang Lee, 2005). After sale service is important to enhance customer satisfaction and long-term relationship, in particular, in the mobile phone service environment. This sector requires high level of aftersales service because delivering superior customer service is the first stage to acquire new customers and retain existing ones (Cheung ang Lee, 2005).

36

2.6 BENEFITS OF E-CRM

Many authors have tried to determine e-CRM benefits (Raihan and Hamid, 2005; Rust and Lemon, 2001; Siau and Shen, 2003; Sirdeshmukh et al., 2002; Wu and Wu, 2005; Petre et al., 2006). Examples include Foss et al. (2004, p. 90) who reported that e-CRM has two major advantages. They showed that it enhances customer loyalty and increases customer profitability by reducing customer recruiting costs as well as costs of sales. Jellasi and Enders (2004), however, claimed that e-CRM can be beneficial in four ways namely, creating stronger customer relationship in a long run while reducing costs, increasing the profitability from lowprofit customers, focusing on the most valuable customers and lowering the customer defection rate. On the other hand, Romano et al. (2004) asserted that e-CRM essentially help companies to increase and improve their marketing skills. In the light of the aforementioned, they conclude that e-CRM is the latest technique used by organisations in todays business world. While Rigby et al. (2002) maintained that e-CRM benefits fully depend on every companys goals. Hellier et al. (2003) further added that the most important benefit of e-CRM is to strategically help organisations align their business process with customers needs. According to Fluss (2010), maintaining strong relationship with customers is the priority for mobile phone providers. E-CRM is the application which helps mobile companies fulfill this goal. Kennedy (2006) identified four benefits of e-CRM namely, enhanced customer interactions and relationships, managing customer touch points, personalisation and e-loyalty and source of competitive advantage. It can be argued therefore that e-CRM enables a critical appraisal of customer data which will further help companies identify which components of marketing had the most significant impact on sales and profitability. In addition, E-CRM enables one to one marketing which helps companies deliver a higher customer service through personalised approach which strengthens brand loyalty. For instance, e-responses to say thank you or to apology for any delays are often used in the mobile industry (Norton, 2007). 37

Furthermore, it has been emphasised that e-CRM enhances customer service and support as it has become possible for companies to manage customers enquiries online through rapid eresponses (direct mail and e-mail) (Scullin et al., 2002). Efficient customer service can help customise products and services that suit customers needs. In particular, customer service is improved through active personalisation of the service and messages. Moreover, it has been highlighted that personalised services can significantly improve customer relationships generating greater customer service. Additionally, customers can be assisted through enhanced call centre interaction. Customers often expect a quick and reliable service. E-CRM call centre technology also enables to improve tracking and to manage a wide range of call routine. Last but not least, e-CRM allows higher efficiency and cost reduction (Scullin et al., 2002). A successful implementation of e-CRM can eliminate administrative demands within the company giving valuable information to customers at low costs (Ahn et al., 2003). A 24-hour service can also be provided without any investment in human resources. In fact, e-CRM costs are extremely low since there is no physical intervention. An additional benefit is that all customers data can be stored in a single database which is accessible to all departments within an organization (marketing and sales, accounting and finance, human resources). It can reduce the costs involved in communicating to customers (Adebanjo, 2003, p. 38). Thus, information can be easily exchanged in an attempt to achieve common corporate goals on the basis of available statistical data. Crosby and Johnson (2002) support this when they claim that the major benefit of e-CRM is to connect all the operations in a business in an attempt to enhance customer experience. They go even deeper by explaining that e-CRM helps companies standardised the information available through multichannel management from the same strategic perspective. Therefore, e-CRM helps maintain a unified view of customers in an attempt to offer greater customer service (Scullin et al., 2002). However, the above benefits can be criticised as they do not mention that e-CRM can be a source of competitive advantage. Anon (2001) reported that e-CRM increases digital loyalty cycle. The author explained that companies use e-CRM applications and redesign their business processes to attract potential customers while retaining existing ones. E-CRM combines 38

customer database, data mining and customised products and services which can give sustainable competitive advantage. Kennedy (2006) concludes that e-CRM is a source of competitive advantage which allow customer-focused organisations to manage customer relationships and marketing decisions more efficiently and in real time. Another limitation of the aforementioned benefits is that they focus more on e-CRM benefits for the company whereas e-CRM also offers multiple advantages to the customer. Brandon and Randall (2007) support the idea that e-CRM technology is equally beneficial to the customer and the company. They identified four advantages of e-CRM for the customer, namely convenience, trust, the speed of processing and interaction. Despite some differences of opinion, one point remains consistent. E-CRM technology is profitable for both the company and the customer. On the one hand, customers receive products and services which meet their expectations. On the other hand, organisations can store the most valuable information that will help them acquire or retain high value and low-risk customers.

2.8 EFFECTS OF E-CRM ON CUSTOMER LOYALTY

This section discusses the impact of e-CRM processes on customer loyalty in a mobile phone service environment. To begin with, customer loyalty is defined, followed by a comprehensive explanation of the relationship between customer satisfaction and customer loyalty. The section concludes with an explanation of the leading role of e-CRM in customer loyalty. In todays business world, the study of customer loyalty within the mobile industry is increasing making customer retention a major priority for mobile phone providers in the UK (Fluss, 2010). Bezos (2010, p. 49) stated that If you have an unhappy customer on the Internet, he or she doesn't tell his 6 friends, he or she tells his 6,000 friends. As organisations become increasingly customer focused and driven by customer demands, the need to meet customers expectations and retain their loyalty becomes more critical. Loyalty does not only consist of 39

consumer behaviours analysis or buying habits, but the positive attitude towards the company namely, the degree of word-of-mouth (WOM) advertising (Zeithaml, 2000). Given the importance of the increased competition coupled with the degree of customer switching, mobile phone providers are investigating efficient marketing strategies that improve customer loyalty. Cost-efficiency motivation is also a key driver behind enhanced customer loyalty. Many researchers have emphasised the astonishing fact that it costs a business five times more to acquire new customer than it does to retain an existing one (Rosenberg and Czepiel, 1984; Reichheld and Sasser, 1990; Holmlund and Kock, 1996; Buttle, 1996). Furthermore, Berry (2002) reported that customer loyalty helps identify the personal nature of the commitment of customers to the brand. Berry (2002) mentioned that customer loyalty highlights the interactive nature of relationship marketing. Schlesinger and Heskett (1991) expressed that customer defection rate determines the success of a business. This suggests that customers must be satisfied for a company to achieve high performance. While Prus and Randall (1995, p. 107) argued that customer loyalty is not customer satisfaction. It is commonly believed that loyal customers have an intrinsic value to a company (Keh and Lee, 2006, p. 57). This theory is followed by Dych (2002, p.6) who asserted that reducing customer defections by even a fraction has been proved to increase profits exponentially. While Chin and Chen (2007) stated that loyalty is an excellent weapon in business, since it is not easy to determine a competitor's retention rate. Moreover, it has been highlighted that companies which maintain long-term relationships with customers are more likely to sustain their competitive advantage (Know and Walker, 2001). It is argued by (Keh and Lee, 2006) that an increase in profitability of between 25 and 85 percent can derive from a 5% enhancement in customer retention. Although attracting customers is vital, a firm would be better implementing an e-CRM strategy to improve customer loyalty (Dimmitriades (2006). This, however, does have its cynics. Meyer-Waarden (2007) question these figures given by Keh and Lee (2006), claiming they result from unreliable cross-sectional analysis. These figures are also disputed by Lysecki (2005). Based on a 40

study from Accenture, he infers that customer loyalty results in a 40% difference in revenue growth and 38% of shareholder value. Customer satisfaction is widely defined as the degree of satisfaction provided by the products or services that encourages repeat purchases. Choi and Chu (2001) suggested that satisfaction is a post-purchase evaluation of a service or a product. Dimmitriades (2006, p. 98), however, gives a traditional approach of customer satisfaction. The author reported that it is concerned with the disconfirmation paradigm of consumer satisfaction/dissatisfaction (CS/D), showing that interaction between consumers pre-purchase expectations and post-purchase evaluation is derived from CS/D. Lewis and Soureli (2006) proposed a more inclusive approach. They described customer satisfaction as the stage where customers needs and expectations regarding a product or service- are fully met or exceeded, encouraging repeat purchases and thereby brand loyalty. By contrast, some researchers follow the theory that satisfaction can be evaluated from a perspective of performance measurement. If a loyal customer is undeniably a satisfied customer, this does not imply that a satisfied customer will remain loyal (Shankar et al., 2002). Shankar et al. (2002) go even deeper when they argue that a satisfied customer is very likely to switch to competitors. Caruana (2002), however, advocates that: in due time, satisfied customers will be those that will be loyal and help the company maintain sustainable growth. Many research studies have investigated the relationship between customer loyalty and customer satisfaction emphasising satisfaction as an antecedent of loyalty literature (Caruana, 2002; Chiou, 2004). Researchers found that satisfaction is associated with diverse dimensions namely, satisfaction with employees, customer service or the company as a whole (Lewis and Soureli, 2006). Another point worth considering is the cumulative experience of a customers purchase and consumption experiences (Shankar et al., 2002). Consequently, the degree of satisfaction experienced by the customer undoubtedly impacts on loyalty. This has been demonstrated by many researchers such as Oliver (1999), Moutinho and Smith (2000), and Caruana (2002). Furthermore, Anderson and Srinivassn (2003) revealed there is a positive 41

relationship between customer satisfaction and customer loyalty in an electronic business environment. Shankar et al. (2002) expanded on Anderson and Srinivassn and Zeithaml et al. works showing that the positive link between satisfaction and loyalty is to be more effective online than offline. Zhang & Prybutok also emphasised that customer satisfaction has widely been portrayed as a fundamental determinant of long-term consumer behaviour (Zhang and Prybutok, 2005). Moreover, Van Riel et al. (2002) stressed that customer satisfaction with online support and the core service will both encourage desired behavioural purchase intentions increasing loyalty. Lee-Kelly et al. (2003) and Rust et al. summarise the above statements well claiming that customer satisfaction leads to customer loyalty as satisfaction is the first stage of the loyalty construct. Finally, Taylor et al. (2002) conceived that customer loyalty is significantly affected by customer satisfaction in an e-CRM environment while Yang and Peterson (2004) argued that loyalty is vitally important for a long-term relationship between customers and mobile phone providers. Moreover, many research studies in other self-service technologies have also proved customer satisfaction can encourage word-of-mouth, repeat visits, re-buying and loyal behaviours in an e-business context (Taylor and Hunter, 2002); hence the relevance of this research. This figure shows how satisfaction is related to loyalty.

42

Satisfaction

Cognitive Loyalty

Affective Loyalty

Conative Loyalty

Action Loyalty

Source: Adapted from: Oliver (1999), p. 13.

Fig 4. Oliver's Four-Stage Loyalty Model

Cognitive loyalty is the initial stage when customers show a clear preference for a single brand. Once they are pleased, customers will develop affection effectively moving on to the affective loyalty phase. At this stage customers adopt positive attitudes towards the

organisation. If they further continue to be satisfied with the quality of products or services, customer experience will be positively affected encouraging customers to move into the conative loyalty phase. This stage is concerned with repeat purchases, where customers often 43

feel they have to remain loyal to the brand (development of behavioral intentions). This loyalty phase is characterised by a deeper level of commitment (Hennig-Thurau et al., 2002; Janda et al., 2002). As a consequence of the aforementioned elements, this obligation to be loyal will further become willingness to purchase and to act without any particular need. This is the final phase called the action loyalty stage, where customers constantly have a greater commitment to repurchase from the same brand. This phase marks the conversion of behavioral intentions into action. Customer loyalty is portrayed as a critical factor to companies success. This is because retaining current customers has become less expensive than acquiring potential ones (Dick and Basu, 2009). Past research found that a 5 % rise in customer loyalty may generate 25-75 % profit growth. In this study, customer loyalty has been deemed to be the major consequence of e-CRM performance as past literatures support the relationship between them. This is because the primary goal of e-CRM is to convert customer information into customised products and services that will further increase customers satisfaction to keep them loyal (Almotairi, 2008). In fact, it is widely believed that e-CRM positively affects customer loyalty by promoting customer satisfaction which is one of the major goals of e-CRM (Rosenbaum & Huang, 2002). Surveys have shown that e-CRM has a positive impact on customer satisfaction. InfoWorld further conducted a research study that revealed that 77 % of e-CRM strategies fail to meet business objectives (Apicella, 2001). Feinberg and Kadam (2002) indicated that this failure may derive from unsuccessful implementation of e-CRM features which are believed to have a significant impact on customer satisfaction. These arguments support the inference that it is essential to do an empirical research to investigate this relationship inclusively. However, Fairhurst (2001) claimed that as e-CRM fully manage the interaction (type and time) with customers, it is more difficult to create intimacy with customers and this may considerably undermine consumer confidence. On the other hand, Dych (2001) highlighted that measuring e-CRM performance is challenging for organisations as there is no agreed 44

method of evaluating the return of investment of this application. The author put forth that it is difficult to accurately determine the number of potential customers reached. Freeland (2003, p.3) claimed that e-CRM can sometimes be too expensive due to the costs of hardware, software and above all staff training. Sharp (2003) reported that the limitations of e-CRM also include lack of technical support to customers, reducing field sales and services, resistance to payment services offered via the web, implementation of time and cost, lack of customer services and support, reducing the productivity and overloading of emails. However, the author argued that the main drawback of e-CRM is the automation of this system that equals to the lack of physical contact with customers. Moreover, Achrol (1991) explained that e-CRM allows greater choices of products and services for customers. As a result, it is more and more difficult for companies to differentiate themselves and to gain a sustainable competitive advantage. Fairhurst (2001, p. 78), in somewhat broader terms, has also shared this view claiming that increased competition in the marketplace encourages customer inconstancy among customers. The above arguments indicate that e-CRM effectiveness might not guarantee customers loyalty as they remain very likely to switch to competitors.

2.9 SUMMARY
This chapter was dedicated to the review and expansion of existing theoretical studies on the topic under research. The terms CRM, e-CRM and Customer loyalty were clearly and inclusively defined and various interpretations of these concepts were critically discussed and examined. Chapter Three aims to critically discuss different research approaches and data collection methods that are suitable to successfully conduct this research.

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CHAPTER THREE RESEARCH METHODOLOGY

3.1 INTRODUCTION
The previous inclusively investigated existing literature on the topic under research. The main purpose of this chapter is to provide an overview and justification of the methodology adopted for this study. This chapter also highlights research aims and critically discusses and justifies the selected research paradigm. Furthermore, the chapter examines the research approach, research strategy options and data collection methods employed. The chapter also identifies the key strengths and weaknesses of the research methodology.

3.2 RESEARCH AIMS AND OBJECTIVES

Romano and Fjermestad (2003, pp. 233-258) identified five major non-mutually exclusive eCRM research areas on the basis of an e-CRM meta-analysis. This classification consists of e-CRM markets, e-CRM business models, e-CRM knowledge management, e-CRM

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technology and e-CRM human factors. It is important to re-emphasise that this, study, however, only concentrates on e-CRM technology. The purpose of this research is to investigate the influence of e-CRM technology on customer loyalty, with a specific focus on the UK mobile phone industry using Vodafone as a case study. This research is based on four main objectives. Firstly, the study aims to critically review existing conceptual models and theoretical frameworks related to e-CRM and customer loyalty. Secondly, this research seeks to assess the effectiveness of e-CRM in strengthening relationship with customers. The following objective was to investigate the role of e-CRM in building an attractive virtual community. The last purpose of this work is to recommend optimal marketing strategies to improve customer satisfaction and customer loyalty through an effective implementation of e-CRM strategy. The aforementioned aims and objectives guide the researcher in the formulation and the choice of the design of the research methodology. It is crucial that these aims and objectives are consistent with the methodology applied so as to refine the results of this research study. To successfully meet these research objectives, a research philosophy and research strategy were adopted and multiple data collection methods were employed.

3.3 RESEARCH PHILOSOPHY

Many authors have tried to define research philosophy in recent years (Galliers, 1991; Latu 2007; Collis and Hussey, 2009; Sekeran and Bougie, 2010). Saunders et al. (2009) stated that research philosophy is the development of the research background, research knowledge as well as its nature. Cohen, Manion and Morrison (2000), improves this statement on the basis of research paradigm definition. They put forth that research philosophy is the broad framework, which consists of variety of beliefs, perceptions and understanding of various factors (theories and practices) that are employed to carry out research projects. These factors 47

include individuals perceptions and interpretations of things as well as his mental model. This is further supported by Gliner and Morgan (2000, p. 17) who asserted that research paradigm is a way of thinking about and conducting a research. It is not strictly a methodology, but more of a philosophy that guides how the research is to be conducted. Easter-by-Smith et al. (2006) elaborate this rationale in highlighting that research philosophy can be portrayed as an accurate procedure, that includes several steps which enable the researcher to explore the relationship between the research objectives and the research questions. The research philosophy is crucial in any research process as it can help the researcher refine and choose the appropriate research methods to be applied in a study while clarifying the overall research strategy to be used. Sekeran and Bougie (2010) pointed out that research philosophy enables the researcher to examine various methods and methodologies and avoid improper use and inaccurate work by identifying the weaknesses of selected approaches at an early stage. Latu (2007) completes this by adding that it may also enable the researcher to be creative while either choosing or adapting methods that were previously outside his or her experience. As discussed by Collis and Hussey (2009) and Easter-by-Smith et al. (2006), there are mainly two types of paradigm to understand the reality, namely positivism (led by scientists) and interpretivism (led by constructivists and anti-positivists). According to Cooper and Schindler (2006), the concept of positivism is closely linked to objectivism. They asserted that this philosophical approach is based on scientific knowledge which is considered the true knowledge of the world perceived through senses (the observable phenomenon). In fact, scientists provide their views to evaluate social world on the basis of objectivity instead of subjectivity (Hatch and Cunliffe, 2006). According to this paradigm, researchers own beliefs have no value to influence the outcome of the research study. Easter-by-Smith et al. (2006) follow this theory by supporting that positivism is mainly concerned with the observations and experiments to collect appropriate numeric data. Interpretivists, by contrast, are attuned to the belief that the core of understanding is learning what individuals make of the world around them. Interpretivism, as the Social 48

Constructionism, puts greater emphasis on individuals beliefs and viewpoints and how people interpret what they encounter (Eriksson and Kovalainen, 2008). Under this paradigm based on subjectivity, the focal point is how people assign values to events or objects and the meaning that they attribute to them (Kasi, 2009). Interpretive constructionist researchers advocate that human beings make sense of situations based upon their individual experience, memories and expectations (Denzin and Lincoln, 2003). They maintain that all knowledge is relative to the knower that is why they aim to work alongside others in order to draw meaning of individuals realities from their own experiences (Denzin and Lincoln, 2003, p. 96). This suggests that meaning is constructed and (over time) continuously re-constructed through experience resulting in many differing interpretations. Accordingly, this variety of interpretations creates a social reality in which people act. This research study is conducted from an interpretivist perspective because the study involves generating an interpretive understanding of social actions, in particular, customers psychology, their behaviours towards products and services. There is a significant human interpretation and perception included in this investigation of the extent to which e-CRM influences customer loyalty in the UK mobile industry, using Vodafone as a case study. The impact of e-CRM on customer loyalty is examined from customers perspective; that means on the basis of customers experience with online facilities offered by Vodafone through eCRM technology. Another argument for interpretivism is that the term customer loyalty is closely related to customers experience and how they act (if they repurchase or not). In this study, customer loyalty is also concerned with the level of service delivered by Vodafone as it determines customer loyalty. This research seeks to analyse the impact of e-CRM on customer loyalty on the basis of how customers perceive the level of service online, that is, customer satisfaction. In other words, this assessment is mainly based on subjectivity, that is, individuals experience, viewpoints and perceptions. This kind of research highlights how individuals make sense of the world and how they construct and manage their social worlds through their actions and interpretations of that world. As a result, this research study attempts to develop an understanding of how meaning is developed through human interactions. 49

Daymon and Holloway (2002) confirm that the interpretivist approach allows the researcher to better conceptualise the reality from the perspective of those involved. They added that interpretive research has primarily employed qualitative methods because these enable investigators to get closer to the individuals they are studying and become involved directly with target participants. This argument supports the inference that the interpretivist paradigm is the most suitable for this research. As claimed by Hatch and Cunliffe (2006), positivists emphasise the importance of an objective scientific method that mirrors the research processes used in the natural sciences. In addition to assuming that reality is stable, they collect facts and analyse quantitative data using statistically valid techniques to produce quantifiable and generalisable conclusions. In this study, however, the researchers objective is not to obtain generalisable results but to examine and understand humans beliefs, conceptions and perceptions of the world in a specific context. Interpretivists contend that reality is contextually bounded and subsequently, constructed intersubjectively through multiple meanings and understandings developed experientially and socially. Accordingly, one could infer that adopting a positivist approach for this study would be inappropriate considering the subjectivity of the topic under research; hence the relevance of an interpretivist approach. This approach supports that there are multiple realities. In this research, the way in which one individual perceives the quality of the service online may invariably differ from the way another may view it. There are two main disadvantages of adopting a positivist approach. Firstly, as positivism considers that everything can be measured and calculated, it tends to be inflexible. As a result, positivists see things as they are and tend to disregard unexplained phenomena (humans beliefs, experience and feelings). The second limitation is that positivism is deemed very weak at understanding social interactions and observing individuals behaviours. Consequently, it is harder to discover the meanings people attach to social phenomena by using this philosophy.

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Instead, in dealing with the interpretation of individuals perception of e-CRM effectiveness, the researcher must focus on peoples interactions with the company, their preferred communication channel and their opinion on the service quality and the online facilities offered as a whole. This also requires a deep understanding of individuals thinking and behaviours (on the web) that positivism cannot provide whilst interpretivism is recognised for its capability of understanding social process. For these reasons, positivism is not applicable in this research as it fails to consider the whole human experience. In terms of the limitations of interpretivism, there are three distinct disadvantages. Firslty, data collection can be time consuming. Also, data analysis can also be difficult; as a result, the researcher must expect to face some uncertainties during the research process. Last but not least, the interpretive method can be a drawback because the sampling size is smaller. A small sample can be deemed unreliable by some researchers as it only represents a very small portion of a huge population. Therefore, care should be taken while using this paradigm in order to ensure reliable results.

3.4 RESEARCH APPROACH

The logic of any research process is closely related to its use of theory. The theory employed in a research study may or may not be made explicit in the research design (Saunders et al., 2009). Two major methods of theory construction have been identified, namely deductive and inductive. Deductive theory reflects the most common view of the nature of the relationship between theory and research. The researcher, on the basis of what is known about a specific area infers one or several assumptions that must further be subject to empirical scrutiny (Bryman and Bell, 2011, p. 9). In a deductive stance, the researcher develops a theory as well as hypotheses and designs a research strategy to verify the validity of these underlying assumptions. On the other hand, the inductive approach considers theory as the outcome of a

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research study. In other words, the inductive method consists of drawing generalisable inferences out of observation (Bryman and Bell, 2003, p. 12). Saunders et al. (2009) put forth that it is necessary to combine these two research approaches with the different research philosophies. The deductive approach is commonly associated with positivism whereas inductive theory owes more to interpretivism (Bryman and Bell, 2011). Therefore, based on the philosophical approach of this research (interpretivism), an inductive method is accepted as appropriate. Additionally, Daymon and Holloway (2002) highlighted that qualitative methods are usually most appropriate for an interpretive approach, such as in this research study. In applying the inductive approach, Bryman and Bell (2007) reported that the researcher usually uses a grounded theory approach to data analysis and thereby generates theory. The inductive approach is subsequently considered as highly effective in coaxing emergent theory from data. The inductive stance also helps the researcher achieve this studys research objectives and gain a better understanding of individuals feelings, preferences and viewpoints about the level of service delivered through e-CRM tools to enhance customer satisfaction and loyalty. In terms of reliability, the research method of this study requires that a sample of Vodafones staff is interviewed in order to better understand Vodafones e-CRM strategy and its expectations on how to enhance customer loyalty through this strategy. This study also necessitates the interview of a sample of individuals (Vodafones subscribers) who have more than a year experience as a Vodafones subscriber. This ensures that all respondents have some knowledge and experience in mobile phone service usage. This consequently suggests that they are able to clearly evaluate Vodafone performance in terms of delivering service on the web. This collection of primary data is crucial in this study as it naturally determines the understanding of individuals evaluations of e-CRM and of customer behaviour in relation to this process. The nature of this data collection is exploratory and the intention is to probe into the viewpoint of these people about e-CRM effectiveness and what is currently done through this process to boost customer satisfaction and enhance customer loyalty. 52

Hence, the validity of this research relies on the ability to factor in and consider the humans interpretation that constitutes the fundamental basis of the findings of this study. These arguments support the inference that inductive reasoning is the most appropriate approach for this study.

3.5 RESEARCH STRATEGY

A research strategy is commonly defined as a plan of action that guides the study directing the researchers efforts to conduct that research. It also allows the investigator to carry out the research consistently rather than haphazardly (Stake, 1995). Determining a suitable research strategy is the fundamental basis of any research process for two reasons. Firstly, it enables the researcher to ensure the success of the study is in line with the research aims and objectives as well as the research questions. Secondly, it helps the author of the study to choose the most appropriate method for retrieving data. The research design considered most appropriate for this study is the case study research method. Case study research strategy is more suitable as it allows a more focused investigation in context. Case studies enable a research problem to be deeply probed and examined within a specific context, providing relevant understanding of the subject under investigation (McDonough and McDonough, 1997; Yin, 2003; Tellis and Winston, 1997). The present study aims to bring an in-depth understanding of a particular phenomenon rather than to allow the generalisability of the findings. Case study is an ideal methodology when a holistic, in-depth examination is required (Feagin, Orum and Sjoberg, 1991). Whilst statistical methods (experimental research designs) observe patterns in data at the macro level on the basis of the frequency of occurrence of the phenomena being identified, case studies observe the data at the micro level. In essence, case studies are designed to explore and case study as a research strategy aims to investigate contemporary real-life phenomenon -using inclusive contextual analysis of a limited number of events or conditions- and their relationships. Stake (1995) supports this point when he 53

argues that whether the research study is experimental or quasi-experimental, the data collection and analysis methods are believed to be hiding some details. Case studies, on the other hand, are portrayed as those bringing out the details from the viewpoint of the respondents by using multiple sources of data (Stake, 1995). Yin (1984) identified four case study designs namely, single-case design, multiple-case design, holistic and embedded designs. This research focuses on using a single case design as the study aims to provide an in-depth understanding of Vodafones e-CRM and a detail analysis of Vodafones customer loyalty. However, this method requires careful investigation in order to minimise misrepresentation. Furthermore, Yin (2003, p.23) reported that a case study research is as an empirical inquiry which observes a contemporary phenomenon within its real-life context; when the boundaries between phenomenon and context are not readily evident; and in which various sources of evidence are employed. This indicates that a case study is a unique way of investigating any natural phenomenon which exists in a set of data (George and Bennett, 2004, p. 13). Nonetheless, it is contended that because a case study is such a narrow field, its findings cannot be generalised to fit an entire question and that they illustrate only one narrow example. On the other hand, it is widely argued that a case study provides more realistic responses than an exclusively statistical survey. Although it is valid to conduct case study research designs, these should be associated with more general statistical processes. A prime example of this is that a statistical survey might show how much time people spend talking on mobile phones while a case study of a limited number of carefully chosen participants will determine and help understand why this is so. McDonough and McDonough (1997) suggested two types of case studies, namely interpretive and evaluative. Whilst Stake (1995) identified three different types of case studies namely, intrinsic, instrumental and collective, Yin (1993) proposed three others: exploratory, explanatory, and descriptive. Descriptive cases require a descriptive theory to be developed before starting the project. Explanatory case studies may be used for doing causal investigations while exploratory cases are often portrayed as a prelude to social research. 54

Exploratory case studies aim to examine any phenomenon in the data which serves as a point of interest to the researcher. For the purposes of the subject under research, namely the impact of e-CRM on customer loyalty, an exploratory case study is hence deemed most appropriate.

3.5.1 Advantages and limitations of case study research

There are a number of advantages in employing a case study research method. Firstly, the analysis of the data is most often conducted within the context of its use (Yin, 2003). To explore the extent to which customers behaviours are affected, the researcher must interview the customers to understand how they evaluate Vodafones online service. This evaluation includes online helpdesk, the quality of the service, ease of use of the website as well as information access and quality. This approach would contrast with experimental research, which deliberately isolates a phenomenon from its context, focusing on a limited number of variables (Zaidah, 2003). Another point worth noting is case studies flexibility. Whilst a pure statistical survey attempts to valid or disprove a hypothesis, a case study, instead, might introduce new and unexpected results during its course leading to new directions in the research process. Experimental research is therefore rejected as a suitable strategy for this study (Gerring, 2006). The second argument for using a case study research design is that the detailed qualitative accounts it usually provides not only enable to explore or describe data in a real-life environment, but they also help capture the complexities of real-life situations which may not be explained through experimental or survey research. It is accepted that case study research designs are subjected of some limitations that are noteworthy. A common criticism of case study approach is its dependency on one narrow example that makes its findings difficult to be generalised to fit an entire question. In fact, generalisation becomes harder since it is difficult to find similar cases with similar data that can be analysed in a statistically meaningful way. Case studies are also criticised for lacking 55

scientific rigour. Yin (1984, p.21) argued that the case study researcher is used to allow equivocal evidence or biased views to influence the direction of the findings and conclusions. Tellis (1997) also questioned the reliability of a case study method advocating that the case study method is microscopic owing to the limited sampling cases it uses. This is, however, contradicted by Hamel et al. (1993) who maintained that parameter establishment and objective setting of the research are far more significant in case study research design than a large sample size.
3.5.2 Inappropriate alternative research strategies

There are several alternative research strategies which could be implemented to conduct a research study, namely case study research, experimental research and ethnographic research which are further discussed. Experimental research can be defined as a collection of research designs that use manipulation and controlled testing to identify, understand and explain causal processes. This method is very often employed when the researcher intends to make cause-and-effect statements (Yin, 1994). In fact, the researcher considers options in the light of fairly well-defined cause-and-effect relationships. Commonly, one or several variables are identified to determine their effect on a dependent variable. This method involves both advantages and drawbacks. The main advantage of experimental design is that it provides the experimenter the ability to determine the cause and effect of a study. One major drawback of experimental method is that researches are normally conducted in laboratory and it is impossible to generalise results to external settings (McDonough and McDonough, 1997). Therefore, experimental research is inappropriate for investigating the impact of e-CRM on customer loyalty as the participants in this study must be observed and examined in their natural environment. Scholz and Tietje (2002, p. 19) reported that ethnography is the work of describing a culture. The author asserted that the aim of ethnographic research is to understand another way of life from the native point of view. Although this approach is typically used by 56

anthropologists to study exotic cultures and primitive societies, Gerring (2006) and Flyvbierg (2006) put forth that it is effective in helping an ethnographer understand how other people see their experience. Gerring (2006) stresses, however, that rather than studying people, ethnography means learning from people (p. 16). This indicates that ethnographic research is concerned with the subject of consumer behaviour. Subjects are studied in the ordinary context of daily life. An ethnographer is commonly required to spend a considerable period of time living with the subjects of the study so as to gain first-hand experience observing their lives (Spradley, 1979). Ethnographic research is considered inappropriate for this research owing to its limited breadth. The purpose of this study relies on information from a wide scope of participants whilst ethnographers usually study only one specific culture or group of people. Finally, even though the case study research method has been subjected to scrutiny and criticism at various times, this approach, nonetheless, has been acknowledged as a reliable methodology when executed with due care and precaution.

3.6 DATA COLLECTION METHOD

This research study took on a two-phase approach. The first phase of the primary data collection for this study was achieved through the use of questionnaires. Bell (1999) defined a questionnaire as a series of written questions for which individuals has to provide the answers. This method is widely portrayed as a structured technique for collecting primary data. Whilst authors such as Kervin (1999) propose a very narrow definition of questionnaires -whereby the respondent answering the questions actually records his or her own answers-, De Vaus (1996) considers a questionnaire in a much wider context, namely as a method in which a wide variety of people is asked to answer the same set of questions. Questionnaires include two types of questions namely, open-ended questions and closedended questions. Gill and Johnson (2001) reported that open-ended questions have the advantage of offering various responses that help capture the flavour of respondents 57

answers, while not influencing the outcome of the question by pre-defining possible answers. On the other hand, closed-ended questions consist of questions that offer limited range of potential answers. For the purposes of this research, people were invited to complete an online questionnaire on a program called googlespreadsheet (Appendix 2). The criteria used to source respondents were such that only people who would be able to provide useful insight for the topic under research participated. Furthermore, this criterion fits the typical Vodafone target consumer. The sample for this study consisted of fifty respondents, students exclusively, who completed the questionnaires set out on googlespreadsheets

(https://docs.google.com/spreadsheet/viewform?pli=1&formkey=dGxTaDdEcmxVX1RUSD J0WUJoRXQ2MlE6MQ#gid=0). The respondents were active users of the internet and eservices. The participants fell within the age group of 18-35 year old consumers. Using this segment of consumers for this study was suitable because this age group is a significant target market for the UK mobile phone services providers (Xevelonaki, 2005). They represent young users who handle typical mobile phone service activity namely, SMS, chatting, games and other services related to new technologies. In this research, university students were chosen as the sample of the study for various reasons. Firstly, it is widely believed that students share similar characteristics, economic ability, and consumption behaviour. Furthermore, Dimmitriades (2006) reported that university students were the heaviest users of mobile phone services followed by high school students and non-student adults. Adopting students as survey sample is subsequently deemed more applicable to online transactions (Zineldin, 2006). Secondly, a recent study of the use of mobile services revealed that consumers in the 18-35 year age group (specifically students) used mobile phones 71% more than the average for all age groups (Venkatesh and Davis, 2000). They heavily use the internet for communication and commercial transactions and are a representative suitable sample for the topic under research. Another point worth mentioning is that university students are considerably involved in a challenging modern education which includes m-learning, e-learning and distance learning. They are thus more qualified in having 58

significant experience with different types of e-commerce, e-services and websites (Aydin and Ozer, 2005). Customers experience is critical to determine the level of the services in mobile phone service industry. In this study, people with more than one year of experience were selected. The requirement to choose only those with more than a year experience was vitally important to ensure that all respondents had some knowledge and experience in mobile phone service usage so that they were capable of clearly and precisely answering the questionnaire. This enables the researcher to determine Vodafone performance in terms of delivering service on the web and thereby to evaluate the impact of e-CRM on customer satisfaction and loyalty within a mobile phone service environment. Questionnaires were used in this research to help the researcher quickly and easily quantified questionnaires results. Moreover, questionnaires can be analysed more objectively than other methods of data collection. However, in this method, the answers are often difficult to assess and tend to vary in clarity and depth. Furthermore, it is widely argued that questionnaires are inappropriate to understand individuals way of thinking, that is, their feelings, behaviours and changes of emotions. As this research aims to understand peoples viewpoints on Vodafones online service, care should be taken when applying the survey method.

The second phase of the primary data collection for this research study was completed through one on one in-depth interview (Appendix 3). McNamara (1999) reported that interviews are particularly useful for accessing the story behind a respondents experiences. The interviewer can pursue detailed information around the topic. Interviews may be useful as follow-up to certain participants to questionnaires (McNamara, 1999). Before conducting the interviews, a consent form was completed by all participants (Appendix 1). The sample of this research study consists of two main groups of respondents, namely Vodafones staff and their customers. The viewpoints of both service providers and customers enriched the discussion strengthening research validity and refining the outcome of the study (Appendix 2 and 3). 59

Eight professionals within Vodafones Marketing department, and more specifically, within the CRM division of the mobile company were interviewed. These interviews clarified which e-CRM tools are more commonly used to retain the most valuable customers. Furthermore, twelve respondents from the consumer group that were part of phase one of this data collection were interviewed. Face-to-face interviews were conducted to increase the reliability and validity of the findings. Questions were designed to be flexible and it was considered suitable to limit the number of interviews to twelve to ensure a depth of understanding was obtained. The interviews were standardised and the questions were openended. Fisher (2004) defined semi-structured interviews as a common qualitative research technique, with the sequencing of questions varying according to the circumstances and progress of each interview. The researcher has a list of questions or fairly specic topics to be covered, often referred to as an interview guide. An interview guide enables the interviewer to gather standardised data from all interviewees, and adjust or revise questions as new ideas arise following an interview (Daymon and Holloway, 2002). Unstructured interviewing tends to be very similar in character to a conversation. In both cases, the interview process is exible. Also, the emphasis is on how the interviewee frames and understands issues and eventsthat is, what the interviewee views as important in explaining and understanding events, patterns, and forms of behaviour. Nevertheless, unstructured interviews are deemed more appropriate for this research study which highlights the impact of e-CRM on customer loyalty. Daymon and Holloway (2002) reported that researchers who are concerned that the use of even the most rudimentary interview guide will not allow genuine access to the world views of respondents are likely to opt for an unstructured interview. The techniques employed in this research to ensure that the data were carefully gathered involved recording, note-taking and transcribing the interview data (Silverman, 2005; Daynon and Holloway, 2002; Chisnall, 2001). The interviews were recorded in mp3-quality audio. Recording helped capture the exact wording of interviewees while note-taking during 60

interviews were used to record respondents non-verbal communication. Furthermore, notetaking after interviews facilitated reflection over key points. The rationale for conducting interviews is that the interpretation of qualitative data requires understanding different participants viewpoints. Despite being inefficient for reaching a large number of people or fulfilling for numeric information or summary statistics, in-depth interviews are useful in collecting the views of different respondents depending on individual perspectives. Interviews are particularly ideal for gaining greater insight into the respondents motivations and attitudes towards their responses to their replies to the questionnaire (in phase one) and specifically towards e-CRM effectiveness and customer loyalty. However, in-depth interviews have their limitations. For instance, the interviewers can affect the data if they are not consistent. Furthermore, interviewing is time consuming and it is widely argued that people feel uncomfortable being watched; hence, they may perform differently when being observed and this may slightly affect the validity of results.

3.6.1 Alternative data collection methods

There are a number of alternative data collection methods that were deemed to be inappropriate for this research study. One such method is the use of focus groups. Morgan and Krueger (1993) defined focus groups as a technique of group interviewing in which the interaction between the moderator and the group, as well as the interaction between group members, helps obtain information and insights in response to carefully designed questions. Focus groups are more applicable for situations whereby the researcher wants to have a group discussion examining a specific topic to gain deeper understanding in a cost efficient manner. For the purposes of this research, focus groups were deemed unsuitable for several reasons. Firstly, it is crucial that the viewpoint of each participant be clearly heard and understood. Focus groups often allow groupthink to occur. In fact, members do not express their personal opinions and comply with a common view or conform to a particular group member 61

or leader. Secondly, in-depth one-on-one interviews are considered more efficient than focus groups in this research because the researcher is able to cover more ground interviewing one individual versus a group.

3.6.2 Methodological triangulation

Combining interviews, questionnaires and documentation techniques bolsters the reliability and the validity providing breadth and depth in e-CRM technology area. Thus, this study uses Methodological triangulation which involves using more than one method to collect data, such as interviews, observations, questionnaires, and documents. Whilst Altrichter et al. (2008) maintain that triangulation gives a more in-depth and balanced picture of the situation, ODonoghue and Punch (2003, p. 27) argue that triangulation is a method of cross-checking data from multiple sources to search for regularities in the research data. Triangulation helps the author ensure the validity of research findings through the use of interviews, questionnaires and documentation. It is a means of overcoming the limitations and biases which can arise from the use of only one of the methods mentioned earlier (Lincoln and Guba, 2000; Cobb, 2000; Dzurec and Abraham, 1993). Accordingly, the researcher has chosen to begin her research with a questionnaire. However, methodological triangulation is subject to some constraints. Polit and Hungler (1995) identified that the differences in epistemologic stance may result in conflict about the research design and that the increased expense of multi-method research may have a sizeable adverse effect on triangulation. They further suggested that researcher expertise may be limited in terms of triangulation. Fielding and Fielding (1986) argued that some researchers combine qualitative and quantitative approaches in the same study in an attempt to offset the weakness of one with the strength of the other. However, Morse (1991) advocated that the accuracy of data from one approach may not necessarily minimise the inaccuracies of the other. 62

3.7 ETHICAL CONSIDERATIONS

It is necessary to adhere to ethical norms in research for several reasons. According to Resnik (2010) ethical standards promote the objectives of research namely, knowledge, truth, and avoidance of error. Those include prohibitions against fabricating; falsifying, or misrepresenting research data. Furthermore, values such as confidentiality, mutual trust and accountability of the part of the researcher are essential for the success of this research study. It was therefore considered important to ensure that individuals were fully aware of the nature the research as well as its implications. Respondents in this research were required to give consent to participate to the study. They were also informed in advance of their right to withdraw from the study at any point of the questionnaire or interview without any consequence. Additionally, information obtained during interviews and questionnaires has been kept confidential to prevent any harm to the parties involved. Participants were also able to freely review their interview transcripts. Moreover, given the sensitivity of the information and the competitive environment of the UK mobile industry, the author ensured that all information and questions used in this research will be exclusively employed for the purposes of this study. Finally, participants were informed that all personal and organisational information would be treated anonymously.

3.8 PILOT TEST

The purpose of conducting pre-testing in this research was firstly to ensure that the questions in the questionnaire were fully understood by the participants and there are no problems with the wording and understanding. Teijlingen and Hundley (2001) support this practise by highlighting that Pilot studies are essential for a good study design. Although conducting a pilot study does not guarantee success in the main study, it does increase the likelihood. The pilot test was therefore sent to five participants so as to test the suitability and the clarity of the questions. The questionnaire is an important raw data collection tool in this research study. Subsequently, the pilot test played a key role in ensuring that as much information as possible could be collected through the questionnaires. Feedback from the pilot test was integrated to 63

the finalisation of the questionnaire prior to full administration.

3.9 STRENGTHS OF THE METHODOLOGY

One of the key advantages of this research is that subtleties and intricacies about the topic under research have been found and this is not possible through quantitative or positivist approaches. As noted by Anderson (2010), the data based on human experience that is obtained is powerful and sometimes more compelling than quantitative data. The methodology of this research focused on gaining rich and in-depth data drawn from reality as what individuals perceive it to be. Strong reliability and validity are two of the main strengths of this methodology. Bryman (2004) stated that the term validity is concerned with the integrity of findings and conclusions which derives from high quality research. Furthermore, Krippendorff (2004) emphasised that validity determines the quality of the research outcome and leads to the research being accepted as true. As regards the validity in qualitative or interpretive research, Maxwell (1992) pointed out that interpretive validity reflects how well the researcher faithfully and objectively re-transcribes the respondents meaning of events and their different views and behaviours as opposed to interpretations that are purely based on the researchers perspective. This suggests that interpretive validity is about the precision in interpreting respondents way of thinking and the degree to which their viewpoints, thoughts, intentions, feelings and experiences are clearly understood by the researcher. Therefore, interpretive validity is intrinsically a matter of conclusions drawn from the participants words and actions in the situations under study (Maxwell, 1992). Lincoln and Guba (1985) proposed evaluative criteria for assessing qualitative research and suggested trustworthiness as a critical criterion. They postulated that the trustworthiness of a research is essential in evaluating its worth. Bryman (2004) expanded on Lincoln and Gubas work highlighting that each aspect of trustworthiness has a parallel with quantitative research criteria. For instance, 1) credibility, a confidence in the truth of the findings, is 64

widely portrayed as similar to internal validity, 2) transferability, showing the generalisability of the results, links to external validity, 3) dependability, showing the consistency of the findings as well as their applicability in other contexts, reflects reliability and 4) confirmability, the context to which the results of a research study are shaped by the participants and not researcher bias, parallels objectivity. These evaluative criteria were applied in this study and are described below. Credibility: In qualitative research, credibility is about ensuring that the data speak to the findings Lincoln and Guba (1985). In this research, the author offered rich, thick description concerning the setting, procedures and interactions. A prime example of this is the detailed data recorded from interviews which are referred to in Chapter 4 (Analysis and findings). Furthermore, the author ensured transcripts of all nine in-depth one-on-one interviews conducted. This enabled respondents to consult both the transcriptions and interpretations of the study. The participants could consequently confirm or reverse the credibility of the information and narrative account (Lincoln and Guba, 1985). Richardson (2000) put forth that a good qualitative research study should show sufficient raw data as to strengthen credibility which is often associated with internal validity (Bryman, 2004). Transferability: Lincoln and Guba (1985) associate transferability with generalisability or external validity of the research results to other contexts (settings, populations and circumstances). Generalisability appears to be an area of methodological limitation since qualitative research generally involves the in-depth study of a small group of individuals sharing a number of characteristics. As a result, findings tend to be restricted to the contextual uniqueness and significance of the aspect of social world being investigated (Bryman, 2004; Maxwell, 1992 Lincoln and Guba, 1985). Subsequently, in terms of extrapolation of the results in this research, the author mentioned that these findings may only be applicable to The UK mobile industry and not to other mobile markets worldwide. Nonetheless, Lincoln and Guba (1985) claimed that the thick description and detailed data, generated from a qualitative research, provide other investigators with what they refer to as a database for deciding on the potential transferability of the results to other settings.

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 Dependability: In the light of this concepts similarity to reliability in quantitative research, Lincoln and Guba (1985) postulated that it has to do with the establishment of a studys merit. Consistent with their proposal that researchers adopt an auditing approach and ensure that complete records are kept of all phases of the research process, the author of this research applied their theory. Thus, 1) participant validation was used for research findings precision (Krippendorff, 2004). The final analysis of findings was accessible to key participants who were invited to send their feedback on both the analysis and the interpretation of the data collected. This process provided confirmation that the interpretations and conclusions were valid and exact. Furthermore, 2) peer review, discussion of the research process, interpretations and conclusions with researchers or students who were familiar with the research and situation, provided useful feedback bolstering research validity and reliability. As part of the research process, the author was also assisted by a supervisor, a Research Methodology lecturer. Finally, regarding 3) the selection of the research participants, the author chose individuals in respect of the criteria mentioned in the data collection method section. For example, customers with more than one year of experience as a Vodafones subscriber were selected. The requirement to choose only those with more than a year experience was crucial to ensure that all respondents had some knowledge and experience in mobile phone service usage so that they were capable of clearly and precisely answering the questions. Also, the professional of Vodafone is renowned and very knowledgeable; he has also worked in the UK mobile industry for 15 years and is acknowledged as expert in the area of the topic under research. As a consequence, the data gained from theses approaches was very likely to be accurate and reliable which, in turn, further reinforced the dependability and reliability of this research. Confirmability: Lincoln and Guba (1985) hypothesised that the findings of a research should be shaped by the participants bias, not the researchers one. In this study, the author ensured that confirmability was ensured by participants validation, as discussed previously in this section. The following strategies were employed to bolster validity in this research. 66

 Methodological triangulation: Different data collection techniques were employed to answer similar questions. In this study, the researcher opted for multiple methods approach, using in-depth interviews, questionnaires as well as documentation to enable the comparison and cross-checking of results while increasing the robustness of this research. A multiple methods approach provided a clearer and deeper understanding of the evidence, thereby enabling a more rich and productive discussion. This approach has also significantly enhanced the validity of the researchs findings (Silverman, 2000; Krippendorff, 2004; Richardson, 2000). Fairness: This term describes how well the research faithfully re-transcribes different views among members of the social setting (Lincoln and Guba, 1985; Lincoln, 1995). As noted earlier, interviews were audio recorded and then honestly re-transcribed on a Word file format. Transcriptions were made available to all participants. The author hence confirmed that the transcriptions, results and conclusions fairly represented respondents viewpoints in this social setting and thereby strengthen the trustworthiness of the research. In sum, the stringent application of proven and widely accepted research methodologies namely, in data collection methods and analysis, has produced a robust research study that can confidently meet the conventional academic and professional benchmarks of validity and reliability in qualitative research.

3.10 WEAKNESSES OF THE METHODOLOGY

Notwithstanding the above discussed strengths, this methodology includes several limitations. Reliability and validity of the methodology are often questioned as the individual skills of the researcher play such a leading role in the data analysis. Mathie and Carnozzi (2005, p. 15) further highlighted that data is collected from a few cases or individuals, which means that findings cannot be generalised to the larger population. Also, the subjective nature of this research (interpretivist approach) gives rise to a greater level of difficulty in terms of validity and rigour of the research. It is also important to note that scale of the research was 67

limited. Without this constraint, the participants contributions would have been fuller and the findings more in-depth, in line with the authors initial aspirations. Additionally, the data collection method (one-on-one interviews) had its own limitations, as mentioned previously. Although its advantages included gaining access to core feelings and thoughts of people and accessing deep information, it required considerable effort, time and labour, particularly in transcription. Interviews being interrupted was another weakness of this methodology. Furthermore, all respondents were very busy with limited time available and these pressures sometimes affected their concentration and the natural flows of interviews. Finally, time management and maintaining timetables were also other issues as the author maintained full-time employment while conducting the study. This made it complicated to keep on schedule.

3.11 SUMMARY
The focus of this chapter was the research methodology used in this research study. Data collection methods were evaluated in relation to the research aims and objectives of this study. The different techniques employed were justified; the rationale for each method was explained in relation to the purposes of this research. Furthermore, the research philosophy, approach, strategy, data collection method, the ethical considerations as well as the strengths and limitations of the methodology were critically discussed. Chapter Four aims to critically discuss the analysis and findings of the study that will allow the author to make suitable recommendations.

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CHAPTER FOUR ANALYSIS AND FINDINGS

4.1 INTRODUCTION
The previous chapter discussed different aspects of the research methodology adopted for the research understudy. The groundwork done by the preceding chapters have considerably contributed to enrich the analysis of this chapter. This chapter thoroughly examines the data collected in an attempt to critically discuss the findings that derive from the analysis and the synthesis of the amassed data. Given the exploratory nature of this study, it was deemed appropriate by the author to adopt a mixed method design for data analysis. In order to bolster the validity of this research, to explore the how and explain the why of the findings, both qualitative and quantitative approaches have subsequently been combined (Bryman, 2004; Creswell, 2003). This chapter outlines the selection of data analytic method justifying its choice and highlighting the limitations of thematic analysis. The chapter classifies the emerged evidence in major and permeated themes by encoding qualitative data collected. The thematic framework examines the qualitative information emerged from the unstructured interviews followed by closed-ended questionnaires. The data gathered is further used to explore the impact of e-CRM on customer loyalty at Vodafone.

4.2 DATA ANALYTICAL METHOD: THEMATICS ANALYSIS

The selected method of data analysis for this research study is Thematic Analysis. The Thematic Analysis framework as stated by Silverman (1993) involves searching through data collected to identify any recurrent themes and patterns of living and behaviour. A theme is a cluster of connected categories that convey similar meanings and usually emerging from the inductive analytic process which derives from the qualitative paradigm (Boyatzis, 1998). Aronson (1994) emphasises that the essence of thematic analysis is based on the classification of similar themes and codes gathered from the data retrieved. Accordingly, Gomm (2008, p. 69

57) describes thematic analysis as a process for encoding qualitative information. This may be a list of themes; a complex model with themes, indicators, and qualifications that are causally linked. On the other hand, Luborsky (1994) argues that themes are concerned with values, beliefs and sentiments used by participants whilst Braun and Clarke (2006) claim that a theme identifies the relevance of the data collected in relation to the research questions and objectives. The aforementioned themes may be primarily generated inductively from the raw data or deductively from theory and prior research. But for the purposes of this research, themes were generated inductively emerging from the raw data retrieved from questionnaires and indepth interviews conducted. The above mentioned interpretations of thematic analysis offered a deeper understanding of this method highlighting the richness of the data collected. Thematic analysis was deemed the most appropriate for this study as it is a flexible data analytical method for qualitative analysis. It was ideally suitable for organising and summarising the findings from a large, diverse body of research. In addition, it can handle both qualitative and quantitative findings, that is, positivist and interpretivist paradigms (Lewis and Ritchie, 2003). This means it can be applied in almost all circumstances. This flexibility can potentially provide an all-inclusive explanation of data that could be neglected or excluded by alternative analytical methods. The form of pattern recognition within the data classifies the emerging themes in different categories for analysis and synthesis. Denscombe (2002) put forth that thematic analysis is arguably well suited to the social sciences providing credence to the understanding of themes. These themes summarise the key patterns of the topic under research (Gomm, 2008). It also enables the dissemination of data collected and findings (Silverman, 1993). Furthermore, thematic analysis facilitates the examination of the collected data which are invariably unstructured (Bryman, 2001). The researcher moves back and forth between new concepts and the data, whereby themes are generated through inductive approach and verified through deduction. Also, the amassed data can be examined by the researcher objectively at the analytical table (Tuckett, 2005). 70

Moreover, social action is brought about by investigation on peoples interpretation of events around them and their experiences. Yin (2003) postulates that the thematic analysis method is widely used because its exploratory nature enables the researcher to explore individuals experiences and perceptions of the world. Last but not least, thematic analysis is highly inductive; this allows the researcher to use the wide range of information in an effective manner, strengthening the accuracy of the findings (Grbich, 2007).

4.2.2 Strengths of thematic analysis

In addition to being one of the easiest methods of analysis, this method is portrayed as the most accessible to researchers with limited knowledge of qualitative research. Thematic analysis emphasises unanticipated insights from the data collected allowing social and psychological interpretations of data. The pertinence of this technique for this research lies primarily in the fact that varying social backgrounds are taken into consideration to explore individuals ways of thinking. This enables the researcher to refine the data analysis and thereby bolster the reliability and validity of the findings. Moreover, thematic analysis allows the researcher to easily understand individuals experiences, perceptions and interpretations of the world. Thus, thematic analysis lends itself as a suitable method of analysis in investigating the impact of e-CRM on customer loyalty in the UK mobile industry, using Vodafone as a case study.

4.2.2 Limitations of thematic analysis

As stated by Braun and Clarke (2006) thematic analysis includes several drawbacks. One such disadvantage with thematic analysis is that it can be overwhelming for the researcher to filter through the plethora of raw data and identity themes in a systematic manner. Another limitation lies in the flexibility of thematic analysis which is associated with a lack of transparency (Britten et al., 2002). It can be hard for the reader to be sure how and at what stage 71

themes were identified. One may wonder if the review would have looked different if an entirely a priori, theoretically-driven approach had been employed instead of an inductive approach in which themes derive from the process of analysis.

4.3 INAPPROPRIATE ALTERNATIVE METHODS OF ANALYSIS Thematic analysis was deemed the most appropriate method of analysing the data for the present study; this was decided after careful examination of the range of qualitative data analysis methods available to the researcher. Thematic analysis addresses the concerns of this study with the most suitable approach as opposed to discourse analysis, content analysis or grounded theory for instance. Thematic analysis was also found to be more explanatory than content analysis as it seeks to understand and explain why rather than just know the data and show what. Content analysis can also be criticised for being too reductive and for putting more emphasis on those phenomena that are amenable to being counted rather than those that are relevant interpretively. For example, whilst content analysis is effective for determining how often a customer uses or requires the online service, it is not as efficient to identify the importance of the quality of this service in shaping customers behaviours and their experience with the provider. As discussed by previous researchers (Brown and Yule, 1983; Candlin, 1997; Leavy, 2007), discourse analysis is essentially concerned with the analysis of language in use whilst thematic analysis primarily put emphasis on structures of interpretations. Alba-Juez (2009) highlighted that discourse analysis is often associated with conversational analysis by some researchers in addition to being largely intuitive and reflective. The author also stressed that discourse analysis consists of the way in which people speak to others. Discourse analysis focuses on speech performance as a reflection of a specific state of mind, whereas this research study requires other external social factors to be considered in analysing the data.

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Likewise, grounded theory was deemed unsuitable for this research study. The essence of grounded theory as argued by Glaser and Strauss (1967) consists of a set of steps whose careful execution is thought to ensure a good theory as the outcome. According to Holloway and Todres (2003), the effectiveness of a theory can be assessed through the process by which a theory is constructed. Generating theory is not the objective of this research study which, instead, aims to examine individuals experiences in a specific context. Grounded theory is, therefore, extraneous as an analysis tool in this study. Thematic analysis is, hence, the most appropriate technique for the purpose of this research study which seeks to investigate the impact of e-CRM on customer loyalty in the UK mobile industry. The other qualitative methods of data analysis were either incompatible with the research methods and objectives or the data collection techniques.

4.4 CATEGORISING THE THEMES The plethora of data collected during the research process made for a challenging collation of results. Consistent with the thematic analysis philosophy, the social context and varying backgrounds of the respondents were considered throughout the process of data analysis. Boyatzis (1998) expands this point, when filtering through the data, it was imperative to be sensitive to the different backgrounds of individuals, events and situations in the entire analysis. All interviews were transcribed to ensure the reliability and validity of the findings. In investigating the impact of e-CRM on customer loyalty, unsurprisingly, the greatest challenge lay in identifying the emerging themes. The diversity of respondents and the varied contexts enriched responses and thereby the analysis. Luborskys (1994) concept of worksheet was applied and this enabled the identification of key patterns as well as key words and phrases that were useful for the analysis. Recurring themes and strong assertions were considered crucial for interpretation and synthesis. Provision was made to record the frequency of key words or phrases employed and which participant used them. When the amassed data

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was categorised as major and permeated themes, the entire transcript was carefully reviewed by the researcher to ensure a systematic categorisation of themes. Interviewing Vodafones customers and staff members gave insight and subjective substantiation on how e-CRM technology influences customer loyalty and the importance of these two concepts. Key concepts were constructed on the basis of evidence collected from the interviews. By conceptualising and grouping similar ideas in different categories, the most valuable information was retrieved. A coding strategy, in line with the exploratory nature of this research, was used to bolster the validity of the findings. The compositions of the major and permeated themes are represented in tabular format below.

Major Themes

Perceived benefits

Keywords empathy, com-

Service quality

The level of service may in- Satisfaction,

crease trust and customer loyal- plaints, enquiries, online agents, ty improving customer satisfac- helpdesk, after sales service, tion customer service, good experience, level of service, help, online facilities, effective, support, solutions, convenience, responsiveness, assitance

Website design and reliability

Attractiveness of the website Attractive

appearance,

trust,

and reliability of information ease of navigation, information that attract new customers and quality, searching capabilities, help retain existing ones fast, convenience, engagement, online helpdesk, availability, virtual community, access,

clear presentation, concise

Customisation

Personalised products and ser- Satisfaction, vices that meet customers needs,

understanding loyalty,

expectations,

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needs and help retain the most communication profitable ones

patterns,

re-

quirements, consistency, purchase recommendations

Contact interactivity

Increases customer value and Interaction, thereby customer satisfaction

communication,

involvement, account management, knowledge, autonomy, level of contact, participation, forums, chats, better understanding

Fig 5. Major themes from in-depth interviews

Permeated Themes

Perceived benefits

Key issues

Trust

Enhances customer experience Reliability, loyalty, satisfaction, and encourages positive behav- customer service, strong relaiours towards the brand tionship, confidence, appropriate response, experience

Brand loyalty

Brand loyalty encourages free Trust, reliability, loyalty, relaadvertising through word-of- tionship, satisfaction, impulse mouth that results in repeat purchase, reputation, switching, purchases expectations, services, word-ofmouth

Cross buying

May increase customer satisfac- New services, additional sertion vices, variety, more choice, attractive products and services, customisation

Length of relationship

Increases

customer

loyalty, Trust, relationship, satisfaction,

strengthen the relationship with reliability, loyal, brand the provider and reduces bad mouth

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Fig 6. Permeated themes

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Website design

Customisatio n

Service quality

Contact interactivity

e-CRM

CUSTOMER

Brand loyalty

LOYALTY

Trust

Cross buying

Length of relationship

Fig 7. Emerging themes relating to customer loyalty 77

Emerged themes for e-CRM and customer loyalty The information collected from the in-depth interviews provided the researcher with valuable insight into the topic under research and the prevailing attitudes towards this Vodafones online facilities. After coding these interviews, a memo was written which was further entered into spreadsheets and categorised according to similarities so that themes could easily be identified. Staff responses were used to determine e-CRM constructs while the customers responses were employed to determine customer loyalty constructs. The themes are discussed below.

4.5 MAJOR THEMES

4.5.1 Service quality

Service quality refers to a customers' perception of how well a service meets or exceeds their expectations. Service quality is essentially judged by customers, and not by organisations. This distinction is critical because it forces service providers to evaluate their service quality from customers perspective. When asked about the key dimensions of online relationship marketing, a Vodafones staff member, CRM Marketing Manager, stated that service quality is the most important one as it improves customer satisfaction while increasing customer loyalty. He stressed that: The delivery of a high service standards at all times is one of the most important and challenging tasks that any mobile service provider faces. More importantly, it can be a source of competitive advantage. A seamless online service for our customers is critical to maintain and develop our relations with our customers, as well as increasing engagement with our customers.

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As described by the participant, offering superior service quality online to customers is vitally important as subscribers are increasingly using online as a preferred communication method for self-care and account management. Providing superior service quality can also ensure the long-term success of the entire company as a good customer service enhances customer satisfaction and helps retain the most valuable customers. When asked about the main reason that makes the participant remain loyal to Vodafone, the answer was: The level of service delivered by Vodafone encourages me to remain loyal as it increases my satisfaction and thereby my loyalty to the provider. When I talk about the level of service I mean the quality of service, it is really important because it consists of the online facilities which are functional and helpful, convenience, delivering real-time operational responsiveness and effective support. These factors really reinforce the reliability of the service. The level of service (service quality) which includes convenience and effective support is essential to improve customer satisfaction, increase customer loyalty and enhance customer experience. The organisation must provide sufficient facilities and excellent customer service to satisfy customers and encourage their loyalty. The quote indicates that the responsiveness of the mobile service provider to customers needs and its ability to deliver superior service quality in real time have a positive impact on the perceived quality of the service. This may positively affect customer loyalty and satisfaction. Therefore, the organisation must provide self-care facilities online that enable customers to source answers to any queries that might arise. Another participant replied: What keeps me relying on Vodafone services is the ability of Vodafone to assist or help me online when I have problems with my bills or my phone, the online service is quicker, no need to go anywhere to get information or help. Vodafone after sales service is fairly good and helpful. Sometimes the service is a little bit slower, but in general it never takes more than two days to get solutions. 79

Delivering an effective after sales service is necessary as a strong after sales service can positively affect customers experience with the mobile service provider. In fact, the faster the service, the more satisfied the customers will be. It is important to find appropriate solutions promptly because a slow service can lead to dissatisfaction whereas an efficient service can increase satisfaction encouraging customer loyalty. Moreover, evidence has shown that is much easier to keep a satisfied customer than it is to find a new one. Another respondent stressed that not only does service quality encourage loyalty, but it also slows the customer churn rate. I am quite satisfied with Vodafones online service. Queries are responded to swiftly and in my opinion in a structured manner. If the service provided by the online agents is not good, I can easily switch to another provider to get a better service. As long as I am satisfied, there is no reason for me to leave and I think it is the same for any other subscriber. A high level of service quality increases customer satisfaction lowering dissatisfaction and switching behaviours. Responding to customers queries as efficiently as possible is crucial to retain them. That is why the organisation must understand customers lifestyle, communication needs and wishes to provide products and services that meet customers expectations. Identifying customers needs will provide the company with valuable insight which the provider can use to continuously review its range of products and services and adapt it to customers requirements.

4.5.2 Website design

Several customers consistently expressed the view that the attractiveness of the website as well as the reliability of information are essential for retaining customers and attracting potential ones. It has been highlighted that ease of navigation, searching capabilities and online helpdesk are key drivers behind increased customer loyalty. In fact, they noticeably improve

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customer satisfaction as they offer subscribers greater convenience and autonomy. A customer stated: When I have a problem with my contract Id rather log on my Vodafone account to find solutions through forums and chats online. I usually contact the online helpdesk which is available 24 hours a day because the service much faster and more effective. Vodafone website is helpful for searching information as well. The website is clear and information is accurate and concise. I consider the quality and ease of use of the website to be simply an added value, as specified above my loyalty to Vodafone strengthened mainly due to the quality of the network. Search capabilities, ease of use of the site, information quality and online helpdesk are key dimensions of e-CRM that can enhance customer satisfaction and positively affect customer loyalty. Chats and forums are also useful as they allow customers to share their experiences and to discuss different issues so that they can help one another. The participant also emphasised the importance of receiving a timely and convenient service. As explained by the respondent, convenience and service effectiveness are major characteristics of a good service quality. The organisation should, therefore, ensure consistent service quality in order to maximise customer value and avoid inefficiencies. This may help the company optimise customer loyalty while increasing customer satisfaction. The e-CRM Manager Senior of Vodafone said: Roughly three-quarters of our customers have done some research online prior to purchasing a contract, and by making sure the right information is readily available before the POS (Point of Sale), we facilitate a speedy acquisition process. The provision of online capabilities directly increases the Net Promoter Score (NPS) of our customers, this is the number of customers who would recommend Vodafone. Vodafone has ramped up its customer engagement online in the past 3 years, introducing new, interactive features on our own website.

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Information quality is also one of the major attributes of e-CRM. It appears to be vital as customers increasingly do research online to compare prices before making their purchase decision. It is thus essential that the organisation provides reliable information on its website. The reliability of information is one of the key dimensions of e-CRM as it can potentially affect customers buying behaviours and thereby their loyalty. Online capabilities increase the NPS, that is, a key metric that a company can gather for all its markets globally and which gives it some indication about customer satisfaction. Khalifa and Shen (2005) found that NPS is highly effective in facilitating word-of-mouth. That is why organisations should ensure they provide accurate and up-to-date information online. On the same context another participant expressed that: Their website is a well-designed and user-friendly site that looks appealing to me. I think it is tremendous tool for customer satisfaction and customer loyalty. I visit Vodafone website about five times a week to have an idea on each and every deal proposed by the mobile service provider. Vodafone website is useful as it allows more interaction and communication with other customers and the online helpdesk, this leads to better understanding and indeed stronger relationship with the provider. Website presentation and user friendliness creates a comfortable atmosphere which improves customer satisfaction. This suggests that website attractiveness has a positive impact on customer loyalty. Interactivity is also perceived as useful as it allows customers to share relevant information and strengthens the relationship between the company and its customers. They can receive recommendations regarding other purchases by other subscribers with similar communication patterns or mobile phones preferences. This cultivates customers enabling them to choose plans or mobile phones that exactly suit their needs. On the other hand, some customers emphasised that although Vodafone website enhances their satisfaction, it is the overall service that really determines their loyalty to the company. When asked if online tools influence her loyalty, a customer claimed:

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To some extend yes, but again going back to my previous answers, what has really reinforced my loyalty to Vodafone over the years has essentially been the quality of the Network, when I say quality I am talking about the service as a whole. Despite being essential for increasing service quality and customer satisfaction, online tools are not the main reason that makes some customers remain loyal. Some customers maintained that their loyalty to Vodafone is mainly due to the quality of the whole network which consists of network access, network daily operation and balancing as well as products quality and the level of service (face to face service, service through CRM and online service through eCRM).

4.5.3 Customisation

Customisation can be defined as the extent to which a mobile phone service provider can recognise a customer and then identify and tailor the choice of products, services, and shopping experience for that customer. By personalising its website, the service provider can increase customer satisfaction and, as a result, customer loyalty. When asked about their level of satisfaction with Vodafone online services, participants pointed out that Vodafone propose products and services that suit their needs. Products and services provided generally match my requirements; that is why I am satisfied with Vodafone service. Sometimes I need to change my contract because I use more sms than calls and they always have the perfect plan for me. I changed my contract five times because I wanted something cheap and consistent with my communication patterns. When I log on my Vodafone account I find a selection of new offers, I never have time to search, so its really good for me. Another participant enthusiastically added:

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I often receive new offers in my email box from Vodafone that are really targeted, this shows they understand my needs and they are very progressive about meeting my expectations. This special attention that happens regularly is one of the reasons that make me remain loyal to this provider despite aggressive competition and even greater price pressures in the UK mobile industry Purchase recommendations may prove a key component of customisation as it improves perceived service quality, customer satisfaction, customer trust and ultimately customer loyalty toward a mobile service provider. The analysis of findings indicates that customising offerings substantially increase customer value. A number of participants stressed that receiving targeted offers is an indication that progress and efforts are being made on understanding their needs and meeting their expectations. On the same context, some customers mentioned that customisation makes them feel unique and a little bit more important. The interviews show that customisation interacts with the effects of customer satisfaction and perceived service quality on loyalty. This supports the inference that the higher the level of customisation, the greater the loyalty of customers. When asked to what extent Vodafone website affects customer loyalty, the Marketing Manager CRM BtoB Junior of Vodafone pointed out that: It is vital to provide targeted offerings online that suit customers needs in order to increase customer value because relationship marketing is not only about building long-term relationship with customers, it is also about delivering products and services that meet customers needs to continuously satisfy them. The interviews showed that customisation is a viable instrument for relationship marketing and especially, for e-CRM. Its efficacy may prove critical to maintaining customer trust and increasing customer satisfaction as they are the main keys to encouraging customer loyalty. The results revealed that mobile service providers can use service customisation as an effective instrument for achieving not only higher loyalty and trust, but also stronger relationship with customers. 84

The e-CRM Marketing Manager junior of Vodafone stressed: We offer a customised online ordering service that makes it easy to buy or upgrade without even walking into a Vodafone store. That is why we value CTM, that is, Customer Touchpoint Management, to improve customer experience and subsequently customer relationships. CTM also helps us analyse customers behaviours in our website. By improving customer experience through customised products and services on the website, we can boost our sales and market shares while improving both customer loyalty and advocacy. The interviews revealed that not only may customisation improve online customer experience, but it can also ensure the sustainability and the success of a company, both in terms of market shares and sales. A positive experience with a mobile service provider may prove a driving force for enhancing relationship with customers. Customer experience and relationship are key determinants of customer loyalty. That is why customisation is crucial in a mobile service context where meeting customers needs and retaining the valuable ones is a core requirement.

4.5.4 Contact interactivity

Interaction and communication are key components in driving customer loyaly and customer satisfaction and online environment. Customers are becoming curious, they want to participate to transactions; they want to fully understand what service or product they purchase; they need to feel more involved. The level of contact with customers and their involvement in the companys activities are proved to be effective at increasing customer value and thereby customer loyalty. The Senior Manager in Investor Relations at Vodafone describes contact interactivity as: The availability and effectiveness of customer service through online tools and the degree to which two-way communication with customers is facilitated. It can also be seen as the dynamic nature of the commitment and engagement that occur between a provider and its cus85

tomers on its website. A seamless online service for our customers is critical to maintain and develop our relations with our customers, as well as increasing their engagement. Maintaining a high level of contact by encouraging two-way communication with customers is effective for developing relationship with customers, commitment and engagement. Commitment and engagement are key attributes that contribute to customer loyalty. The nature of the relationship between a company and its customers can also determine customer loyalty. That is why online capabilities remain an effective and a necessary means to strengthen relationship with customers while encouraging their loyalty. When asked how important is the role of Vodafone website in building an attractive virtual community, a Vodafones Marketing and Communication Assistant highlighted that it creates contact interactivity which is expected to have a major impact on customer loyalty. Contact interactivity is crucial; it is one of the most important benefits of our site as it allows our customers to share experiences about the online products and services. The aftersale support provided through online forums and tutorial videos ensures that any customer issues are resolved quickly and efficiently. The eForum has been a helpful tool in building a virtual community that is knowledgeable and willing to provide ad hoc support. The outcome of contact interactivity is perceived as meaningful in an e-CRM context. An interesting attribute that emerged from the interviews with Vodafones staff was the ability of e-CRM to create a virtual community. Virtual community is formed around forums and chats provide an opportunity for customers to help one another with common issues and allow users to crowd-source answers to their queries from the virtual community. It is therefore essential that organisations encourage discussion forum as it gives customers the ability to exchange information and compare products; it can also increase customer satisfaction. By facilitating this informational exchange among customers through chats and forums, the provider can further improve e-loyalty among its customers. Some customers may be loyal because they value the input of other community members, and others may remain loyal because they enjoy the process of providing such input to the virtual community. 86

On the other hand, when asked about how useful chats and forums were, the general consensus of the participants was considerably contradictory to what had been stated by Vodafones staff concerning their objectives. Although I never use chats and forum I know they can be enormous of help and I can use them if I really need help or I dont find solutions in FAQ. I can get suitable information about my account, Vodafone new deals or even my bonuses. Vodafone website helps me better understand the breakdown of my bills. Additionally, it provides a search tool that enables me to locate products very quickly. I also receive emails sometimes for very useful information. It is apparent that although chats and forums are seen as an information and experience sharing platform, most of customers do not really use them. Nonetheless, a considerable number of respondents deemed chats and forums very useful for finding relevant information and assisting them on any issue regarding their mobile phone or plan. Furthermore, it was generally felt that chats and forums acted as a product review platform as opposed to them being a marketing (loyalty) tool intended to create a virtual community. Forums and chats are essential as part of website interactivity and communication among customers themselves but also between customers and the company. It is to be noted that customers feel more confident when they know exactly how to find the most accurate information possible and where to look for this information. Finding the right information at the right time may increase customer satisfaction. Forums, chats and FAQ are key components of e-CRM that may enhance satisfaction of customers encouraging them to remain engaged. Another participant added: Vodafone website is very interactive and dynamic although it does not have a specific tool that makes products comparison much easier. And if I need to change my Vodafones customer plan to under grade my monthly amount I can simply do it myself, I feel more involved since I participate more to my plans selection.

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Account management also contributes to enhancing interaction and customer involvement. In fact, it allows more autonomy to customers who can choose their plan themselves. This autonomy may increase customer knowledge providing them with a better understanding of products and services offerings. By managing their Vodafone account, customers can participate, they can feel more connected with the organisation and involved in its business. Involvement can increase customer value creating stronger relationship with the company. Evidence has shown that if customers feel involved, they are more likely to remain engaged and loyal.

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Virtual community

Purchase recommendations

E-CRM tools Service quality Website design Customisation Contact interactivity

Timely responsiveness

Search capabilities

irtual community Fig 8. E-CRM Defined Through Practice

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4.6 PERMEATED THEMES

4.6.1 Trust

It is widely recognised that key drivers of customer loyalty are often led by recent experiences, or by perceptions of others experiences, especially where product or service reliability is at issue. Reliability and customer experience are therefore the essential basic components in building customer confidence or trust, that is, the strategic driver of customer satisfaction and engagement online. Like respect, trust must be earned by companies. When asked how Vodafones online services affect his loyalty to the mobile provider, the participant replied: It gives me confidence in the network since I can find reliable information on the website at any time, in addition to the ongoing assistance through the online helpdesk available around the clock. The interviews suggest that information quality tends to increase customer trust. Trust is a factor that may be a significant influencer in the perception of service quality by customers. A recurring theme from the findings is reliability of information and service (online assistance). With this in mind, it would hence make sense that organisations ensure the dissemination of reliable and high quality of information on their website as it may boost customer confidence. This also constitutes an important tool for promoting superior service quality and customer value. Another participant said:

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When I lost my phone they replaced my sim card and it was sent to me in two days. They told me less than 48 hours and it wasnt more than this. Most of the times they fulfil their obligation that is why I would fairly say that Vodafone service is reliable. Timely service is one of the key dimensions of e-CRM. The interviews indicate that it is the strongest determinant of service quality across all services, irrespective of the industrial sector or size of the company. The reliability and speed of the service provided are vitally important as they increase service efficiency and perceived quality of the service. The analysis of the findings shows that service quality is the key driver of customer satisfaction and the most influencing attribute of customer loyalty. Another participant enthusiastically added: With all the issues I had with my plan the service was reliable and efficient, my queries and inquiries were properly dealt with thats why Ive been a Vodafone customer for quite some time now. Indeed, all this has resulted in a strong relationship with them, you know, it creates a very special kind of trust. To be honest, I had a good experience with Vodafone online service although I sometimes prefer speaking to a customer service agent directly. This participant emphasised the importance of service reliability and efficiency in customer service. This interview shows that giving appropriate and timely responses to customers is a core requirement for mobile service providers as they improve not only customer satisfaction and trust, but also the entire customer experience. It is also apparent that these attributes have a positive impact on the perceived quality of the service and the relationship with the company. When asked whether she thinks that online helpdesk strengthen relationship with customers, the Vodafones Junior Marketing Executive answered: Online helpdesk and online tools allow positive interactions between the business and customers. In addition, online helpdesk can promote positive experiences and encourage positive

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feelings and trust in the service and products we provide. Trust is vital in the mobile industry due to increased competition. This participant pointed out that online capabilities may increase interactivity and enhance customers experiences on the website. Customer experience is a key indicator of customer satisfaction which can significantly affect customer loyalty. A number of respondents consider that positive interactions and feelings are critical to sustaining trust in a highly competitive environment.
4.6.2 Brand loyalty

Brand loyalty generates good word-of-mouth, that is, customer intention to recommend the offerings to others positively. It is a key driver of customer loyalty that considerably impact on customer satisfaction and the perceived quality of a product or service. The Internal Communications Manager of Vodafone defined brand loyalty as: Customers favourable attitude toward the service provider. It encourages customers to recommend our products and services, to repurchase or to consider the new offerings. The loyalty of customers to the brand is positively related to their word-of-mouth behaviour. A satisfied customer is more likely to recommend products and services to his/her family and friends, especially in a mobile service environment where people are considerably influenced by their relatives provider. That is why it is important for organisations to retain customers so that they can improve their reputation and lower customer churn rate. When asked whether she would describe herself as a loyal customer, a participant replied: I would indeed describe myself as a loyal customer; I appreciate the overall service including the quality of the network as well as the loyalty of Vodafone to its customers (great rewards for continuous use of their services through enhanced deals etc), excellent customer service. This undeniably improves my overall satisfaction with Vodafone services.

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Excellent customer service is a key driver of customer satisfaction. The interviews show that superior customer service lies in issues such as perceived quality, timeliness, reliability, consistency and convenience. Findings also indicate that subscribers attach great importance to what they named the loyalty of Vodafone to its customers. Special offers such as rewards, bonuses and discounts are proved to be effective at retaining customers and enhancing their satisfaction. Such critical determinants may strengthen the relationship between customers and the mobile service provider. Another respondent stated: I used to be very reluctant when it comes to online transactions in general, but now I feel more confident using online services. This positive experience with Vodafone online service has strengthened my conviction that I shouldnt switch to another mobile phone service provider. Online capabilities may positively affect customer attitude towards the brand. Customer experience can be a critical determinant of customer loyalty as it encourages favourable behaviours. The interview with this respondent emphasised how experience and customer satisfaction are positively related. The interviews also suggest that customer satisfaction tend to have a positive impact on customer loyalty. On the same context, a customer claimed that although online tools might reinforce his satisfaction by improving service quality, it is not the reason why he considers himself loyal to Vodafone. I really like the web design and the easy navigation of Vodafone because it allows me to get as quick as possible suitable information but I cannot say that it is the reason why I am loyal to Vodafone. I think online tools dont really affect my loyalty you know, I am loyal just because I am used to their services but they are likely to reinforce my satisfaction a little bit, for example by monitoring requests and offering some online advantages, useful information and competitive prices.

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All participants recognise that Vodafone website (its presentation, online capabilities and convenience) slightly improves their satisfaction. The findings also revealed that online tools positively affect the perceived quality of products and services. However, a number of respondents maintained that Vodafone website does not affect their loyalty. Most of them supported that they remain loyal either because they are used to Vodafone services or they have been using Vodafone for a while and they are lazy. Many customers admitted that they are too lazy to send registered letters to terminate their contracts and switch to another provider. This suggests that e-CRM technology does not influence customer loyalty directly despite being an effective tool for improving customer satisfaction.
4.6.3 Cross buying

The interviews showed that cross buying is one of the most important dimensions of e-CRM that directly impacts on customer satisfaction and to some extent on customer loyalty given the variety of choices it offers to customers. It is noteworthy that these choices are tailored to the specific needs of every customer. When questioned on her loyalty to Vodafone, a customer stated: My loyalty to Vodafone is also due to other related services that increase my satisfaction. They regularly advertise other services that may suit my needs. I took insurance after one year contract with them. At the beginning I wasnt really interested in having insurance for my mobile phone but now I find it very useful as this mobile is very expensive. It is apparent that this respondent considers additional products and services as a supporting tool of customer satisfaction. Furthermore, a number of customers expressed that additional offerings also contribute to their satisfaction as they give them more alternatives and profitable deals. One can infer that cross selling can potentially affect customer loyalty in a positive way. The findings suggest that cross selling and customer loyalty are positively related. Another customer added:

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I do think that Vodafone website affects my loyalty as it carries a wide selection of products to choose from, I think this website is customised to my needs, I can buy other services or products, even those I didnt expect, I can also discover other services that might be very useful. Recently, I purchased insurance separately and I got problems. Vodafone helped me terminate my contract and proposed me a better insurance which was significantly less expensive. Every business management must recognise the reality that there is a continuous change in customer expectations and demands. It is therefore the responsibility of the organisation as a provider to offer a wide variety of alternative products and services to increase customers buying intentions and thereby develop their loyalty. This participants experience shows that not only can cross buying give additional alternatives, but it also increases customer satisfaction. This interview also revealed that customisation and cross buying are key components of e-CRM that considerably influence customers loyalty and commitment to the company. One can thus infer that the ability of a company to focus on its customers needs and meet their requirements is vital as it may potentially ensure the success of the company in the long run. When asked whether online relationship marketing helps in retaining customers, a Vodafones Marketing Assistant replied: Online relationship marketing is profitable for Vodafone as it can promote cross-selling. This involves selling different types of products and services over the changing lifetime needs of the customer. Cross-selling may enhance the breadth of the relationship with customers through added-value products and service offerings that increase the value of a customers patronage and further fulfils his/her current and future needs. E-CRM may prove vital in promoting cross selling and strengthening relationship with customers. The Vodafones staff member also highlighted the importance of cross selling in increasing customer value, giving more choices to customers and helping the company meets their expectations. More importantly, the interview indicates that cross-selling is not only meant to retain customers or increase their satisfaction, but to also add value to the relationship with customers, such that the value appeals to customers emotions. 95

4.6.4 Length of relationship

Several customers consistently expressed the idea that the nature of their relationship with the mobile service provider encourages their loyalty. It has been highlighted that using a network for a long time influence customers behaviour in a positive way as their confidence and loyalty to the mobile service provider are likely to increase. According to one participant: Using a network for a long period of time encourages loyalty and reliability to the mobile service provider as the entire service reinforces trust and relationship with the company. Trust and reliability are key attributes of customer loyalty; they are built over time. Earning and maintaining customers confidence reinforces relationship with the organisation over time. The findings revealed that length of relationship considerably affects customer loyalty. When asked if he thinks he has a strong relationship with his provider, the participant replied: I believe I have a strong relationship with Vodafone, the loyalty has been mutual so far and I have benefited from the great deals offered to me by the firm. Every year when they notice that my contract is ending they call me two weeks before to offer me a better plan which is less expensive but more advantageous for me as I am a student. This makes me feel so special. A number of participants stressed the importance of Vodafones loyalty to its customers, stating that it is what reinforces their relationship with the mobile service provider. The findings showed that trust improves over time through profitable offers enhancing the connection between the company and its customers. Another customer added:

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I am not likely to switch to another provider as Ive been using Vodafone services for five years now, you know, when you are used to a brand, you tend to remain loyal; this is due to the relationship; it is also a question of familiarity and experience. Participants pointed out that familiarity encourages their loyalty towards the brand. The interviews indicate that customers loyalty is positively related to the length of the relationship with the mobile service provider: the longer their relationship with the provider, the greater their loyalty. When asked how effective is online relationship marketing in building long-term relationship with customers at Vodafone, one employee of Vodafone replied: A comprehensive online experience has become a basic expectation of our customers in the past 5 years. Our website is expected to proactively cultivate our relationship with our subscribers. We generally send to customers reminders about making purchases from our website (like top up, new plans), it is especially when their credit is almost finished or their guarantee is almost expired. Many users are more comfortable online and others are less so, but as a company we position ourselves to cater to both sets in order to strengthen our relationship with our customer base. Long term relationship with customers is another key component of customer loyalty and and building and maintaining this relationship is one of the major purposes of e-CRM. Positive and strong relationship with customers may prove vital to ensure customers engagement and loyalty. The interviews revealed that purchase recommendations play a leading role in enhancing the nature of the relationship between the mobile service provider and its subscribers. By sending reminders and purchase recommendations to customers, organisations can extend customers engagement beyond the end of their current plans while reinforcing their relationship with these customers.

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Customer satisfaction
Customer loyalty Trust Brand loyalty Length of relationship Cross-selling Contact interactivity

Quality

Additional products and services

Relationship

Fig 9. Customer Loyalty Defined through Practice

4.6 SYNTHESIS OF QUALITATIVE FINDINGS

The key findings highlighted so far addressed the key dimensions of e-CRM and showed how they affect customer loyalty. These findings are correlated to the proposed theoretical models and accordingly discuss how e-CRM tools affect customer loyalty. The key findings include: a) e-CRM is a key strategic driver of customer satisfaction as it significantly enhances service quality and thereby customer value and b) Customisation and online capabilities are strategic as they considerably improve perceived service quality and trust c) Forums and chats are said to be enormous of help but they are not widely used. Critical to the understanding of the re98

sults, these two findings are related to the extent literature which highlights the importance of the role of customisation and online tools in improving satisfaction and increasing loyalty. With continuous change in customers needs and increased competition in the UK mobile industry, effective management of e-CRM in any business has become a core requirement. There were several permeated themes that emerged for customer loyalty construct. Trust is built through information quality and service quality, that is, timely responses to customers queries and reliable service. The findings revealed that they are the most influencing attributes of customer satisfaction which is the major dimension of customer loyalty. Brand loyalty is positively related to word-of-mouth. Organisations must provide superior customer service that encourages customers to recommend their products and services and to remain loyal. The loyalty of a company to its customers may also prove vital as it increases customer value. Cross selling is the third component of customer loyalty. Additional offers are proved to be effective at retaining customers and improving their satisfaction. Cross selling and customer loyalty are positively related. The findings indicate that cross-selling is not only meant to retain customers or increase their satisfaction, but to also add value to the relationship with customers. The fourth component of customer loyalty is length of relationship. The interviews showed that it positively influences perceived quality of the service and customer loyalty. Length of relationship was also proved to be critical at strengthening the relationship between the mobile service provider and its customers. However, the results also indicated that although online capabilities improve customer satisfaction, they do not affect the loyalty of some customers directly. This suggests that some customers may remain loyal for other reasons apart from the online service or capabilities. Their loyalty may be due to length of relationship, familiarity with the network or simply laziness. In any case, e-CRM dimensions are proved to be positively correlated with customer loyalty components. If the above mentioned dimensions are well managed, customers should be satisfied and this may encourage their loyalty.

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Customisation

Online capabilities E-CRM

Timely responsiveness

Website design
Increased perceived quality

Contact interactiviy

Superior service quality

Enhanced relationship

Customer satisfaction
Lower customer churn rate/Positive WOM

CUSTOMER LOYALTY

Fig 10. E-CRM attributes that influence customer loyalty Key components of e-CRM that affect customer loyalty

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The drivers of e-CRM clearly influence customer loyalty. When combined, a strategy that supports e-CRM and customer loyalty is formed and contributes to increase customer satisfaction and reinforce relationship with customers.

4.7 QUANTITATIVE FINDINGS

The questionnaires which aimed at investigating the impact of e-CRM on customer loyalty were conducted from 15th may to 30th may 2012 on docs.google.com:

https://docs.google.com/spreadsheet/viewform?formkey=dGxTaDdEcmxVX1RUSDJ0WUJo RXQ2MlE6MQ#gid=0. The questionnaire was developed by the researcher and was distributed through electronic basis to all participants. There were 32 questions utilising a Likert scale response scheme (1= Strongly agree to 4= Strongly disagree). The respondents needed between 12 and 15 minutes to fully complete the questionnaire. The responses were all confidential. The closed ended questionnaires addressed eight major topical areas, namely service quality, website design, customisation, contact interactivity, trust, brand loyalty, cross-buying and length of relationship. These areas were deemed the main keys to improving customer satisfaction and influencing customer loyalty on the basis of the qualitative findings.

Service quality
Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree

Fig 11.

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Website design
Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree

Fig 12.

Customisation
Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree

Fig 13.

Contact interaction
Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree

Fig 14.

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Trust
Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree

Fig 15.

Brand loyalty
Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree

Fig 16.

Cross buying
Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree

Fig 17. 103

Length of relationship
Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree

Fig 18. Each of the charts above illustrates customers view on the eight major dimensions of e-CRM and customer loyalty. More importantly, four charts represent the significant components of e-CRM that impact on customer loyalty, namely service quality, website design, customisation and contact interactivity. Customers strongly agreed that the above mentioned components are vitally important to enhance customer satisfaction and encourage customer loyalty. They believed that service quality is the most vital attribute of customer loyalty as it determines customer satisfaction and reinforces relationship with the mobile service provider. Around 82% of the customers strongly agreed to the leading role played by customisation in promoting customer value, increasing trust and strengthening relationship with the provider.

Whilst 60% of the customers strongly agreed to the importance of online capabilities in improving their loyalty, 25% of the respondents somewhat disagreed to that. These 25 percenters claimed that although online tools significantly improve customer satisfaction, they do not directly affect their loyalty. These customers maintained that their loyalty was rather due to the length of relationship, laziness to terminate their contract and the quality of the network including face to face services. Around 62% of the participants expressed that contact interactivity enhances their satisfaction while reinforcing their commitment and engagement to Vodafone. Most customers strongly agreed that trust is essential to reinforce relationship. They also stressed that trust significantly influence their loyalty to Vodafone. Length of relationship, cross-buying and brand loyalty were also statistically proved as critical for encouraging 104

and increasing customer loyalty. Interestingly, the eight components that derived from the quantitative results are consistent with the qualitative analysis and the e-CRM and customer loyalty constructs.

4.7.1 Supporting qualitative themes for the e-CRM and customer loyalty constructs

This section discusses the outcomes of the closed ended questionnaires and the in-depth interviews as explored through the e-CRM and customer loyalty theoretical models. It highlights the dimensions of e-CRM technology that drives customer loyalty. The purpose of this study is not to explain or demonstrate cause-and-effect correlations but rather to explore how e-CRM technology can be positioned and implemented to enhance customer satisfaction and, ultimately, customer loyalty. When combined, e-CRM and customer loyalty drive a companys success; the findings revealed that if managed properly, e-CRM may increase customer value through virtual community and stronger relationship with customers. The e-CRM construct is valid based upon the results of the case study. An effective management of e-CRM may prove vital in maintaining relationship with customers, encouraging greater customer loyalty and rapid increase in revenue growth. Consequently, the eCRM drivers, namely website design, customisation, contact interaction and service quality are the main keys to improving customer loyalty.

4.8 SUMMARY
The purpose of this chapter was to provide a detailed account of recurrent themes amongst participants regarding their view on the dimensions of e-CRM that affect customer loyalty within Vodafone. Justification was also provided as to why other methods were deemed unsuitable while thematic analysis was found the most appropriate approach. Thematic analysis was thoroughly explained and the recurrent themes were categorised into major and permeated themes. Additionally, this chapter presented the qualitative and quantitative findings de105

rived from in-depth interviews and questionnaires. The next chapter seeks to provide the conclusions drawn from the findings of the research and will propose several recommendations that Vodafone may implement based on the results of this study. Moreover, the chapter will suggest areas for further research in this field.

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CHAPTER FIVE - CONCLUSION AND RECOMMENDATIONS

5.1 INTRODUCTION
The previous chapter was essentially focused on the analysis of data collected from participants in the study. The results were critically analysed and reviewed within the thematic analysis framework. This final chapter is an attempt to present the major outcomes of this investigation and to draw conclusions based on the findings and the research aims. This chapter also aims to suggest viable and practical recommendations that Vodafone can implement so as to reinforce its e-CRM strategy which is concerned with reinforcing relationship with customers, building an attractive virtual community and improving customer loyalty as defined in the objectives of this research study. This process will finally lead to the consideration of the implication of this study as well as directions for future research in the same field.

5.2 EVALUATION OF FINDINGS

The purpose of this research was to investigate how e-CRM strategy affects customer loyalty in the UK mobile industry, using Vodafone as a case study. This study identified and examined the key drivers of e-CRM and customer loyalty. It also explored the major attributes of e-CRM that influence customer loyalty. Three key findings emerged from this investigation. E-CRM improves customer loyalty through its positive impact on customer satisfaction. E-CRM is effective at strengthening relationship with customers. E-CRM promotes the development of an attractive virtual community.

E-CRM is a holistic concept that needs to be viewed from different angles. One critical aspect of this strategic technology is that not only it increases the level of the service, customer satisfaction, trust and loyalty, but it also improves customer value through customisation and107

website interactivity. The two-way communication encouraged by contact interactivity in an e-CRM strategy plays a leading role in promoting customers involvement and commitment. This was proved to be considerably effective at increasing customer engagement. The current dynamic market environment shows continuous change in customers expectations; that is why consistent service quality and contact interaction are essential to maintain relationship with customers and make them remain loyal. Furthermore, contact interaction considerably encourages the development of a virtual community. However, despite the importance of contact interaction, a number of customers expressed that they use chats and forums in very few cases. This suggests the virtual community is not as strong as it was expected by the company. Therefore, the company in this case, Vodafone needs to implement strategies to encourage customers to participate more to chats and forums. Building an effective virtual community may prove critical in reinforcing relationships, encouraging new purchases and promote information sharing and brand loyalty. In any case, the findings indicate that virtual community as well as strong relationship with customers are key drivers of customer loyalty that may considerably impact on customer loyalty. The results conclude that these two attributes are almost as important as customisation, trust, website design, service quality, length of relationship, brand loyalty and cross-buying in increasing satisfaction and encouraging loyalty.

5.3 INTEGRATING RESEARCH AIMS AND OBJECTIVES WITH THEORETICAL FRAMEWORK

It is critical to link the objectives of the research with the theoretical framework as it will present an insight into how well the research questions have been addressed. Two research questions were laid out at the beginning of the study: 1) What is the impact of e-CRM on customer loyalty in the UK mobile industry? 2) To what extent does e-CRM enhance customer loyalty in the UK mobile industry? Qualitative and quantitative findings together with theory will be linked to the research aims. The research aims have been previously discussed theoretically in the literature review and in practice the participants comments are analysed 108

using Vodafone as a case study. The overall analysis of the results will present a holistic approach to the study. In an attempt to integrate empirical data with theoretical framework, the aims and objectives are discussed below: Objective One: To critically review existing conceptual models and theoretical frameworks related to e-CRM and customer loyalty. From the literature reviewed, e-CRM positively affects customer loyalty by promoting customer satisfaction which is one of the major goals of e-CRM (Rosenbaum & Huang, 2002) and customer satisfaction leads to customer loyalty as satisfaction is the first stage of the loyalty construct (Lee-Kelly et al., 2003). E-CRM has become a core strategy in todays business world, and especially in the UK mobile industry. It is consider as the one of the most effective strategy to retain customers and to increase satisfaction as it puts the customer first. Vodafone case study has confirmed the above statement showing that marketing leaders are increasingly concerned about understanding customers lifestyle and communication needs and wishes in order to tailor their products and services. The rationale behind this is to meet customers expectations and encourage loyalty. This is consistent with e-CRM theoretical model described by Jutla et al. (2001). They explained that e-CRM components, namely engage and support components, are concerned with the capability of e-CRM to handle customers needs and expectations through customisation, convenience and trust. They also highlighted that these components are highly effective at encouraging valuable customers to purchase products or services and increasing satisfaction service quality. From the interpretation of qualitative and quantitative data collected, it is clear that e-CRM is a vital communication and retention tool for companies; online capabilities have also been proved important for customers as they can access updates, information on billing and price plans. Moreover, companies provide self-care facilities through e-CRM in order to allow them to source answers to any queries that might arise. An effective e-CRM strategy improves customers engagement and commitment to the organisation while reducing switching intentions. Consequently, e-CRM improves customer satisfaction and customer experience that in turn increase customer loyalty while strengthening relationship with customers. This 109

confirms that satisfaction is an antecedent of customer loyalty as explained in the literature review.

Objective Two: To assess the effectiveness of e-CRM in strengthening relationship with customers.

The literature review showed that customer centricity has become critical in relationship marketing and especially, in an e-CRM context. The findings revealed that most customers are choosing online as preferred communication and account management. The results also indicated that given the rising interest for online capabilities in the UK mobile industry, marketing managers are implementing strategies through e-CRM to increase customers involvement and build long-term relationship with them. An interview with a member of Vodafones staff has proved that roughly 78% of customers manage their account online through My Vodafone. This online facility implemented by the Vodafone helps them manage their bills and view information on new plans and other offerings. The results proved that managing their account themselves increase customers involvement. It has been shown that the more they participate, the stronger their relationship with their provider.

This investigation demonstrated that customers feel higher valued when they participate and a number of respondents admitted that managing their account themselves is likely to reinforce their relationship with Vodafone. The findings also showed that customisation reinforces the relationship between subscribers and mobile providers. Vodafones managers recognised that the relationship with customers is paramount, and e-CRM is a very efficient way to manage these relations for both parties. Furthermore, customers expressed that Vodafones loyalty to its subscribers also strengthens their relationship with the mobile provider. E-CRM is, therefore, a useful tool that not only increases customer value, but also significantly improves the nature of the relationship between customers and providers. In fact, e-CRM has become the main web-based technology that properly manages relationships between companies and customers bringing them closer than ever before (Jang et al., 2006; Singala, 2008).

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Objective Three: To investigate the role of e-CRM in building an attractive virtual community. The results indicate that forums and chats are effective at building a virtual community that is knowledgeable and willing to provide ad hoc support. The e-forum implemented by Vodafone enables customers to help each other with common issues and share useful information; users can also crowd-source answers to their queries from the virtual community. The findings showed that virtual community is effective at encouraging website interactivity. Lack of interactivity is a problem for a majority of websites, especially in the mobile industry. They are often hard to navigate, provide insufcient product information, and answer inquiries via e-mail only after a delay of a day or two. According to Salvati (1999, p. 6), mobile service providers will not be able to gain substantial market share and customer trust until they muster the full measure of dedication needed to achieve and capitalise upon electronic interactivity. This supports the inference that e-CRM is a vital tool that promotes contact interactivity and helps increase customer value. In fact, most of the time, when a customer navigates a website looking for a specific information regarding a product or a service, he or she simultaneously browses engaging in exploring contents, searching, comparing, interacting, configuring, learning and asking questions. As a result, forums and chats are efficient for marketing executives to manage both personal and business customer information. For customers, it is clear that these online capabilities provide them with better understanding of products and services. E-CRM plays, therefore, a leading role in building an attractive virtual community. The analysis of the outcomes also revealed that increasing interaction through a virtual community reinforces trust and commitment. These results confirm the importance of virtual community stated in the literature review. These advantages of virtual community make it appealing to customers to visit the site again in the future and to recommend it to their relatives. Notwithstanding the benefits of virtual community, a number of customers expressed the view that they rarely or never use forums and chats preferring instead to directly contact online agents. 111

5.4 E-CRM: LINKING PRACTICE AND THEORY

The four fold critical drivers of an e-CRM strategy are: a) service quality; b) website design; c) customisation; d) contact interactivity. These components are consistent with e-CRM dimensions proposed by Jellasi and Enders (2004), namely cutomer service quality, online community, information quality, customer retention and customer selection. E-CRM does not only focus on providing online capabilities and enhancing service quality, but it also concentrates on increasing customer value and strengthening the relationship with customers through its features. As stated by Choi and Chu (2001), satisfaction is a post-purchase evaluation of a service or a product that is subsequently critical in the purchase decision making and encouraging customer loyalty. The major e-CRM features that contribute to these purposes are website presentation, access to information, information quality and search capabilities that are part of pre-purchase; promotions and dynamic pricing from at-purchase features and after sales service from post-purchase features. The figure below illustrates the complete dynamic picture linking the theory with the e-CRM constructs.

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Customer satisfaction
Engage component
Jutla et al. (2001)

Support component
Jutla et al. (2001)

E-CRM technology
Service quality

Virtual community

Website design Customisation Contact interactivity

Trust

Pre-purchase e-CRM features

Feinberg et al. (2002)

At-purchase e-CRM features

Feinberg et al. (2002)

Post-purchase e-CRM features

Feinberg et al. (2002)

Brand loyalty

Relationship

Fig 19. E-CRM Construct linking Practice and Theory

A successful e-CRM strategy must contain the aforementioned elements. Vodafone case study has shown how virtual community, brand loyalty, customisation and website attractiveness enhanced perceived service quality, the nature of the relationship with customers, in113

volvement and trust. These attributes of e-CRM and customer loyalty may prove vital for increasing customer satisfaction and engagement.

5.5 CUSTOMER LOYALTY: LINKING PRACTICE AND THEORY

From the literature reviewed, customer loyalty thrives when cognitive, conative and affective stages of loyalty are completed (Oliver, 1999). Chin and Chen (2007) added that these three phases encourage customers to remain loyal. They also postulated that this positive attitude towards the brand will further become willingness to purchase without particular needs or to recommend products and services to others (WOM). This final stage is the phase when customers constantly have a greater commitment to repurchase from the same brand. This phase marks the conversion of behavioural intentions into action. The interviews and questionnaires confirmed these theoretical statements. However, other attributes of customer loyalty emerged. These attributes include trust, cross buying, length of relationship and brand loyalty that may prove crucial in promoting customer loyalty, especially in a mobile service environment. In fact, several customers expressed that trust and additional services positively affect their loyalty while others stressed that length of relationship considerably affect their satisfaction and thereby their loyalty. The findings support this inference that satisfaction is an antecedent of customer loyalty (Caruana, 2002; Chiou, 2004) as argued in the literature review. The figure below shows how customer loyalty is affected by its attributes which contribute to a companys success both in terms of revenue growth and market share.

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Conative loyalty
Olivier (1999)

Conative loyalty
Olivier (1999)

Customer Loyalty
Trust Brand loyalty Cross buying

Affective loyalty
Oliver (1999)

Length of relationship

Word-ofmouth/Action
Zeithaml (2000)

Customer satisfaction
Choi and Chu (2001)

Fig 20. Customer Loyalty Construct linking Practice and Theory

5.6 IMPLICATIONS OF THE STUDY

The essence of this section delves into the underlying consequences of the above outcomes of this research. It is essential to evaluate direct and indirect consequences in relation to the 115

business and its strategic objectives when research is conducted. The potential impact of the study on the customers might also be examined. It is vitally important that the management strives to understand the motivating factors behind these research results as they might provide the business with better understanding of its customers needs. The results of this study have some implications for companies that use E-CRM as part of their marketing strategy and especially, Vodafone and its customers. These implications will be explained in greater detail.

5.6.1 Management and business perspective

Marketing managers will now have a model that has been explored on the basis of real case study. Exploring what actually works through a field study approach provides confirmation of theories and strategies that have successfully been applied. This study provides mobile companies with a framework to build their specific e-CRM strategy. It also offers marketing managers the opportunity to contribute to the overall relationship marketing strategy of their company. Furthermore, these findings may be useful for marketing managers when attempting to attract new customers or to retain the most profitable ones. The challenge for marketing managers is that e-CRM programs offer most benefit when integrated throughout the enterprise. Yet, in achieving new levels of e-CRM integration marketing managers must rely on changeable components (human and technological) for efficient delivery of customer relationships. Finally, the use of self-care facilities has considerably reduced the number of incoming calls into Vodafone UKs call centres. This suggests that online capabilities, and more specifically e-CRM enables companies to save time and effort as call centres are generally time consuming.

5.6.2 Customer perspective

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By offering customised online ordering services, mobile providers make it easier for customers to buy or upgrade without walking into stores. Furthermore, e-CRM allows subscribers to receive a service at any time (24 hours a day). With cross-selling and customisation, customers can find products and services that exactly suit their needs. They can also educate themselves and help each other through web 2.0 technologies implemented by companies to encourage information sharing and increase satisfaction.

5.6.3 Researcher perspective

To draw on findings of the existing literature, little research studies have been conducted to examine the impact of e-CRM performance on marketing performance (Rust et al., 2000). Similarly, little systematic effort has been made to explore the relationship between customer relationship management and customer loyalty within an electronic business environment in the UK mobile industry (Lee-Kelly et al., 2003). This study gave a comprehensive understanding of the main e-CRM factors that encourage customer loyalty and drive customer satisfaction. This investigation will therefore provide researchers with better understanding of e-CRM and customer loyalty constructs so that they can apply them in another country or industry.

5.7 RECOMMANDATIONS
In this section, the fourth objective, which was to recommend optimal marketing strategies to improve customer satisfaction and customer loyalty through an effective implementation of e-CRM strategy, is critically addressed. With due cognisance of the above discussion, there are practical solutions that Vodafone and other mobile companies in the UK can implement so as to fully leverage both existing and potential benefits of e-CRM tools.

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5.7.1 Minimising subscribers switching intention

In the UK mobile industry, there are four major service providers, namely Vodafone, O2, Orange and T-mobile. However, due to the mobile markets growth rate and increasing numbers of subscribers that reach almost 7 million the UK mobile market is reaching its maturity. Therefore, acquiring new customers is costly and harder in terms of marketing for mobile service providers. Bearing in mind this tight situation, service providers need to focus more in retaining existing customers by improving customer satisfaction and loyalty. In other words, mobile providers should minimise their subscribers switching intention. The findings showed that those who are dissatisfied do not hesitate to switch to competitors. Moreover, the Internet is huge and the search for alternative mobile service providers is merely a mouseclick away. Therefore, it is more critical now than ever for mobile companies to improve and customer satisfaction in order to retain an edge and influence customers loyalty. To achieve this objective, marketing managers should offer more promotions to customers. For instance, they can increase online promotions such as cheap plans which provide free sms for students or new smartphones with interest or not payable on a monthly basis. Marketing managers can also implement loyalty programs (which is a major component of pre-purchase and at-purchase e-CRM features) as proposed by Ho and Wu (1999). Loyalty programs can allow customers to score points for every transaction made while visiting the providers website. These points may be in turn redeemable for free gifts, coupons or cash rebates. This may enable organisations to avoid switching behaviours and help them increase customer satisfaction and commitment. Implementing such strategies is likely to enhance customer perceived service quality.

5.7.2 Extending and developing presence on social networks to increase engagement

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As shown in the e-CRM construct (fig. ), engagement is one of the main components of eCRM that affects customer loyalty. Therefore, increasing customer engagement may result in enhanced customer loyalty. In view of all this, the after-sale support Vodafone can provide through online forums, tutorial videos and blogs in an attempt to ensure that any customer issues are resolved quickly and thoroughly. Resolving customers queries improves customer satisfaction that in turn can positively affect customers engagement. Blogs and videos appear to be more visited by young people than chats and forums on a specific website. Social media has taken an ever-increasing role in helping companies attract and retain customers over 5 past years. At the present time, there is a heavy presence of companies running their own YouTube channel; Vodafone must continue to encourage this audience (which mainly consists of young people) to upload its contents (videos). The Vodafone channel can be advertised through Vodafone website or emails can be sent to customers to encourage them visit the new channel. However, marketing and communication teams must be careful not to bombard customers with irrelevant emails. There is a trend towards using social media in lieu of emails in some instances. Therefore, the channel can be advertised even through Vodafone Facebook page or Twitter. In fact, active online customer engagement can be effective at encouraging customer loyalty and driving satisfaction. Vodafone must therefore continue monitor the level of engagement it gets online from its customers as well as the number of online followers through like on Facebook and tweets on tweeter. Social media may prove instrumental in improving customer experience and thereby customer satisfaction. The importance of the online relationship between Vodafone and its customers is widely recognised and using integrated communications across the social media landscape may encourage loyalty while reinforcing the customer engagement. Latest promotions and giveaways can exclusively be offered through these channels (YouTube, Facebook and Twitter) to generate and spread buzz about special offers as well as new products or services.

5.7.3 Special rewards for the most profitable customers

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The findings indicate that customers appreciate the loyalty of Vodafone to its subscribers. Therefore, rewarding the most valuable customers is likely to enhance perceived service quality and thereby customer satisfaction. The results also showed that a satisfied customer tend to build trust and become committed to the brand, and thus is more likely to return. This suggests that offering special rewards to relevant customers can positively affect customer loyalty. Rewards can be offered on the basis of bonuses in terms of air time or SMS provided that the customer completes an online questionnaire (a maximum of 5 questions that address how to enhance customers satisfaction). This may not only help mobile companies to identify and understand customers needs, but also to increase their value by offering them bonuses. The rationale behind this is to increase satisfaction while improving engagement and loyalty. By doing so, rewards can play a crucial role in developing e-CRM strategy that leads to customer loyalty. Moreover, mobile companies can also offer alternative plans to their most valuable customers by sending them personalised emails with special offers that can only be accessible to these customers. This may improve customers satisfaction encouraging them to renew their contracts.

5.8 CONCLUSION AND FUTURE RESEARCH

This study has demonstrated that customer loyalty can be improved when used within an Internet context. The findings reinforce the need to develop RM, as it can lead to greater customer loyalty for ``pure-clicks retailers as well as physical retailers. To sum, this study provided some important insights into the influence of e-CRM tools on customer loyalty. In addition, the findings are consistent with previous empirical studies and existing literature in terms of the importance of e-CRM nowadays and its impact on customer satisfaction and loyalty. Although this study has some relevant findings on the effect of eCRM on customer loyalty, this study also include several limitations. From a methodological point of view, data in this research were obtained from university students. It would be useful to obtain a broader sample of participants in the future studies. Furthermore, this study is concerned about the impact of e-CRM on customer loyalty in the UK mobile industry. 120

Replicating and extending this study in other regions and countries, other services or other eCRM research areas (e-CRM markets, e-CRM business models, e-CRM knowledge management and e-CRM human factors). This study, only focused on e-CRM technology.

5.9 SUMMARY
Chapter five drew from the entire study, to conclude the research into the impact of e-CRM on customer loyalty in the UK mobile industry. The core purpose of this chapter was to synthesise the findings of the research and transpose them into relevant information which can be profitable to Vodafone and potentially other mobile service companies in the UK. The research aims and objectives were reviewed to ensure that they were addressed and that the research questions have been answered. Finally, the chapter suggested some recommendations to the management; it also proposed direction for further research on the topic understudy.

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APPENDIX

Appendix 1: Consent form to participate to the research study

I understand that I have been invited to participate in a survey conducted in fulfillment of the requirement for the award of Master in Business Administration (MBA) in the University of Wales. This questionnaire activity forms part of Saphie Alim's required coursework toward an MBA Marketing/Management degree. My agreement is based on the understanding that this research study investigates the impact of e-CRM on customer loyalty in the UK mobile industry, using Vodafone as a case study. I have been given some general information about this academic research and the types of questions I can expect to answer. I understand that the questionnaire will be conducted on the internet and that it will take approximately 20 minutes of my time to fully complete it. It is my understanding that my participation in this survey is entirely voluntary and that I am free to decline to participate, without consequence, at any time prior to or at any point during the activity. I understand that any information I provide will be kept confidential, used only for the purposes of this project, and will not be used in any way that can identify me. All survey/questionnaire responses, notes, and records will be kept in a secured environment. This study has been conducted under the direction of Dr Wilson Ozuem, the research supervisor. In case of any further information please feel free to contact him at the following email address: wozuem@lsbf.org.uk. Thank you for your anticipated co-operation. Yours faithfully, Saphie ALIM Yes, I hereby consent

voluntarily

and offer to take part in this study. No, I do not consent

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Appendix 2: Unstructured interviews questions for Vodafones staff members

1. 2. 3. 4. 5. 6. 7. 8. 9.

What do you think about Relationship Marketing at Vodafone? How often does your company communicate through emails? Does online Relationship Marketing help in retaining customers? How? How would you describe Vodafones online relationship marketing strategy? To what extent does Vodafone website affect customer loyalty? How critical is online service for Vodafone? What do you think about companies that do not provide online services? To what extent providing Vodafone online facilities improve customer satisfaction? How important is the role of Vodafone website in building an attractive virtual community? 10. How effective is online relationship marketing in building long-term relationship with customers at Vodafone? 11. What are the most effective online tools to attract customers and encourage their loyalty? 12. What are the key dimensions of online relationship marketing? 13. Do you think that providing online helpdesk strengthen relationship with customers? 14. Do you have any other comments or suggestions about the usage of online relationship marketing for enhancing customer loyalty?

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Appendix 3: Unstructured interviews questions for customers

1. 2. 3. 4.

What do you know about Vodafone website? Do you have a Vodafone account? How often do you log on? How often do you visit Vodafone website? What do you think about Vodafone website (information availability, quality and ease of navigation)? Does it provide you all the information you need? Does it provide you all the help you need? 5. When you have a problem do you contact Vodafone? How? 6. How often do you interact with Vodafones online helpdesk? 7. What do you think about Vodafone online service? Would you define Vodafones online service as quick and effective? Why? 8. Are you satisfied by Vodafone online service? Why? 9. Describe a situation where you have been really satisfied by the online service. 10. What can you tell me about Vodafones chats and forums? Do you use Vodafones online chats and forums to interact with other customers? 11. Have you ever recommended or encouraged other customers to switch to Vodafone? 12. Would you define yourself as a loyal customer of Vodafone? Why? 13. What is the main reason that makes you remain loyal to Vodafone? 14. How does Vodafones website affect your loyalty to this provider? (presentation of the website, search capabilities) 15. How does Vodafones online service affect your loyalty to this provider? 16. Do you think that interacting with Vodafone online agents strengthen your relationship with this provider? Why? 17. Do you think that you have a strong relationship with Vodafone? Why? 18. Do these online tools enhance your loyalty to Vodafone? Why? 19. How would you evaluate Vodafones after sales service?

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Appendix 4: Consumer Online survey via google spreadsheet on https://docs.google.com/spreadsheet/viewform?pli=1&formkey=dGxTaDdEcm xVX1RUSDJ0WUJoRXQ2MlE6MQ#gid=0

No.

Questions

Strongly Agree

Somewhat Agree

Somewhat Disagree

Strongly Disagree

1.

Service quality

Vodafone website gives appropriate responses to my complaints and enquiries. Vodafone website provides a good after-sales service. Vodafone website provides adequate FAQ services. Vodafone website responds to my complaints and enquiries promptly. Vodafone online service quality considerably influences my loyalty. I am satisfied with my experience on Vodafone website (website presentation, search capabilities, online service and facilities) Vodafone online service positively affects my satisfaction.

2.

Customisation

The products and services offered online by Vodafone meet my needs.

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The products and services offered online by Vodafone exceed my expectations. Vodafone proposed me products and services that are fully in line with my buying behaviours and communication patterns. Vodafone makes me feel unique.

Length of relationship
3.

and trust

I am confident that the products and services offered by Vodafone are of the highest quality. Interacting with Vodafone online service agents strengthen my relationship with this provider. I have been using Vodafone for a long time.

Contact interactivity

4. I have a Vodafone account. My Vodafone account is useful as I can manage my plan and mobile services on my own way. I feel more involved thanks to my personal account. Interaction with online helpdesk makes me feel more involved.

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5.

Brand loyalty and cross buying

I would recommend Vodafone website to my friends and relatives. I intend to continue using Vodafone website for my enquiries. I never intended to change mobile phone provider. I am unlikely to consider switching to another mobile phone website. I visit Vodafone website more frequently than other mobile phone websites. I am interested in buying additional products and services from Vodafone as I am satisfied with the ones I currently have.

6.

Website design and reliability

Vodafone website has an attractive appearance. Vodafone website is easy to use. Vodafone website is always up an accessible. Information quality is reliable. The attractiveness of the website encourages me to re-visit Vodafone web pages. The website provides sufficient facilities for searching prod-

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ucts/services. Web pages load quickly on Vodafone website. The information s ear c h i n g s ys te m o n Vo d a f o ne website is fast and convenient.

135

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