Abstract
This paper develops a reliable and valid CRM (Customer relationship management) scale regarding the Indian telecom sector. A review of literature on CRM was followed by depth interview and questionnaire survey. The exploratory factor analysis is performed with the first half of the data to identify the major CRM dimensions based on which authors have proposed a construct, which is confirmed through confirmatory factor analysis and validated through Structural equation modelling by using the other half of the data. The covariance model shows CRM in Indian telecom sector as a multidimensional construct comprising of factors namely competitiveness and reliability, support feature, relationship quality, transmission quality, technological edge and reputation. The structural model validates the previously extracted factors along with their indicators. The findings of this study validate the belief that CRM is a multidimensional construct and serves as a critical success factor for business performance. The proposed scale helps to identify issues that contribute to CRM in Indian telecom sector and formulating strategies accordingly, resulting in efficient (in terms of cost) and effective (outcomes) CRM practices.
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