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The Role of Relational Mediators in the CRM-Performance Link: Evidence from Indian Retail Banks

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  • Chandrasekaran Padmavathy

    (Department of Marketing, Vellore Institute of Technology, Vellore, Tamil Nadu, India)

Abstract

CRM literature has considered the role of relationship quality (satisfaction, trust and commitment), but its respective effects on relationship maintenance (retention) and relationship development (cross-buying) are unnoticed. This research proposes an integrated model of CRM and investigates its impact on relationship quality, relationship maintenance, and relationship development. Specifically, it examines the effect of CRM on satisfaction, trust, retention and cross-buying. The results indicate significant and positive effect of CRM on satisfaction; satisfaction has a positive effect on trust, retention and cross-buying, and trust positively influences retention. Satisfaction plays a mediating role in the relationship between CRM and its outcomes. The results imply bank managers to focus on satisfying customers primarily to maintain and develop customer relationships.

Suggested Citation

  • Chandrasekaran Padmavathy, 2013. "The Role of Relational Mediators in the CRM-Performance Link: Evidence from Indian Retail Banks," International Journal of Customer Relationship Marketing and Management (IJCRMM), IGI Global, vol. 4(2), pages 21-35, April.
    • Handle: RePEc:igg:jcrmm0:v:4:y:2013:i:2:p:21-35
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