Abstract
The aim of this study is to explore relationships among five factors: customer relationship management, customer satisfaction, customer loyalty, customer profitability, and customer retention. The sample of the study consists of 750 managers and employees of different restaurant in Riyadh, the capital city of Saudi Arabia. The questionnaire developed for the purpose of this study is distributed by hand to respondents. Out of 750 questionnaires distributed, 497 are returned with a high rate of response. The Analysis of Moment Structures (AMOS, Version 22) is used to analyze the collected data. The findings of the study revealed a significant influence of customer relationship management on customer satisfaction, a significant influence of customer satisfaction on both customer loyalty and customer profitability. Therefore, the data doesn't support the hypothesis that customer loyalty mediates the relationship between customer satisfaction and customer profitability. On the other hand, there are significant relationships between customer satisfaction and customer profitability and between customer profitability and customer retention, while there is no significant relationship between customer satisfaction and customer retention.
Highlights
The aim of this study is to explore relationships among five factors: customer relationship management, customer satisfaction, customer loyalty, customer profitability, and customer retention
One of the most important variables reported by authors which can be utilized as a solution to deal with these challenges is customer relationship management (CRM)
The strategic view of CRM elucidates the evolution of CRM concept in terms of transactional and relational marketing in view of the fact that CRM is a final result of these two types of marketing, and the technological view of CRM, in which organizations adopt new practices such as data mining, data warehousing and best practices of customer interactions in order to deal with changes in business environment as the increased competition and the need for products customization
Summary
It was concluded that CRM represents a mean by which an organization be in a position enables it to create superior value for itself and for its customers through building lasting relationships with those loyal and profitable customers
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