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The Mediating Role of Customers' Satisfaction on the Effect of CRM on Long-Term Customers Loyalty in the Banking Sector in the Palestinian Territory

Author

Listed:
  • Raed A. M. Iriqat
  • Mohannad A. M. Abu Daqar

Abstract

This study aims to investigate the mediating role of customers' satisfaction on the effect of customer relationship management on long-term customers' loyalty in the banking sector in the Palestinian Territory. Using advanced statistical methods. This study supports that there is a high level in implementing the CRM, customers' satisfaction, and long-term customers' loyalty. It showed that these three variables- CRM, customers' satisfaction, and long-term customers' loyalty have a significant role on the Banking sector. CRM and its dimensions, and both of customers' satisfaction, and long-term customers' loyalty are positively significant correlated. Also, finds that there is no role for customers' satisfaction as a mediator variable in enhancing the impact of CRM on long-term customers' loyalty. Moreover, based on SEM the study shows that there is a direct impact of CRM system integration and customers satisfaction on long-term customers' loyalty, whereas there is a direct impact for customers' database and CRM system integration on customers' satisfaction. The scholars find that the Palestinian local banks should pay more efforts to improve their competences to enhance the quality of service and their employees' behavior level. On the other side, they need to keep their customers database updated and to be aligned with the cutting edge technologies to provide better service for customers, which is appropriate and meet their needs by obtaining the accurate information about their preferences in order to build a strong competitive advantage that is hard to imitate, this leads to build a strong relationship with customers.

Suggested Citation

  • Raed A. M. Iriqat & Mohannad A. M. Abu Daqar, 2018. "The Mediating Role of Customers' Satisfaction on the Effect of CRM on Long-Term Customers Loyalty in the Banking Sector in the Palestinian Territory," Asian Social Science, Canadian Center of Science and Education, vol. 14(8), pages 1-76, August.
    • Handle: RePEc:ibn:assjnl:v:14:y:2018:i:8:p:76
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    References listed on IDEAS

    as
    1. Ghalib Sanjuq, 2014. "The Impact of Service Quality Delivery on Customer Satisfaction in the Banking Sector in Riyadh, Saudi Arabia," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 5(4), pages 77-84, July.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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