IDEAS home Printed from https://ideas.repec.org/a/eme/mrrpps/v39y2016i8p854-878.html
   My bibliography  Save this article

The effect of CRM implementation on pharmaceutical industry’s profitability

Author

Listed:
  • Nedra Bahri-Ammari
  • Khalid S. Soliman

Abstract

Purpose - The aim of this study is examine customer relationship management (CRM) effect on enhancing customer satisfaction and on improving customer retention. In this study, the impact of CRM on loyalty in the pharmaceutical sector in Tunisia is studied. Service quality perception, customer satisfaction, loyalty, retention and firm profitability have been tested as independent variables. This study highlights the importance of CRM and service quality perception in maintaining a sustainable and profitable relationship with customers. Design/methodology/approach - A survey research design was used to collect data. In total, 221 respondents from 5 pharmaceutical companies in Tunisia were involved in the study. Exploratory and confirmatory analyses were adopted to examine the effect of CRM technology on profitability. Structural equation modeling was used to validate results. Findings - The results show that there are significant relationships between CRM and quality perception, satisfaction and loyalty. However, there are no significant relationships either between CRM and retention or between CRM and profitability. Research limitations/implications - Fitting CRM scale with the context of the study and the number of the survey companies was the limitation of this research. Practical implications - This study provides significant results to practitioners to understand the role of establishing a CRM strategy and to understand the selected factors affecting customer satisfaction and retention as well. Originality/value - This study was conducted in Tunisia to contribute to enrich literature in the implementation of information technology and customer satisfaction.

Suggested Citation

  • Nedra Bahri-Ammari & Khalid S. Soliman, 2016. "The effect of CRM implementation on pharmaceutical industry’s profitability," Management Research Review, Emerald Group Publishing Limited, vol. 39(8), pages 854-878, August.
    • Handle: RePEc:eme:mrrpps:v:39:y:2016:i:8:p:854-878
    DOI: 10.1108/MRR-11-2014-0258
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/MRR-11-2014-0258/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/MRR-11-2014-0258/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/MRR-11-2014-0258?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muneer M. Abbad & Ibrahim Hussien Musa Magboul & Faten Jaber & Wasfi Alrawabdeh, 2022. "User Antecedents, CRM Implementation, and Impact on Customer Outcomes in the Jordanian Service Industry," International Journal of Customer Relationship Marketing and Management (IJCRMM), IGI Global, vol. 13(1), pages 1-24, January.
    2. Bahri-Ammari, Nedra & Bilgihan, Anil, 2017. "The effects of distributive, procedural, and interactional justice on customer retention: An empirical investigation in the mobile telecom industry in Tunisia," Journal of Retailing and Consumer Services, Elsevier, vol. 37(C), pages 89-100.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:mrrpps:v:39:y:2016:i:8:p:854-878. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.