Antecedents of Customer Satisfaction: An E-Crm Framework

Abstract

ABSTRACT : This study explores the antecedents of customer satisfaction in an Electronic Customer Relationship Management (e-CRM) framework. We suggest that customer satisfaction in e-CRM framework comes from four antecedents: perceived service quality, perceived sense of community, perceived price fairness, and perceived customer orientation. These four antecedents have positive effect on customer satisfaction. We also suggest that customer satisfaction has a positive effect on customer loyalty. To measure and study consumer satisfaction researchers use the satisfaction and expectation confirmation theory (ECT). ECT theory's states that customer expectations are directly related to performance, if expectations are too high performance may fall short. The satisfaction of the customer is gained through disconfirmation, negative disconfirmation leads to dissatisfaction while positive disconfirmation leads to satisfaction. Customer satisfaction leads to customer loyalty. When a customer is satisfied with their purchase they will continue to buy and become loyal customers to the business.INTRODUCTIONCompanies exist to create customer value. A satisfied customer buys more, is more committed to the company and is more profitable over the lifetime (Anton, 1996). Customer satisfaction and customer commitment are the most valuable assets for businesses (Anderson, 2011). Establishing long-term relationships with customers helps create a community of loyal customers for firms. According to Anderson (1994) the purpose of the relationships is to work together in ways that would create value to both parties. Creating and maintaining relationships is of great importance to both buyers and suppliers in online commerce. Sustained relationships help retain existing customers and help increase the customer base. The combined effect is the sustainability and growth of the revenue stream.Online firms focus on the technology aspect of electronic customer relationship management (e-CRM) while ignoring the customer perspective. E-CRM technology can only be implemented by developing a deeper understanding of behavioral aspects of relationship management. Understanding how customers perceive about different aspects of relation is more important that the relationship management technology. Satisfied customers buy more and are more loyal and committed to the company (Raihan & Hamid, 2005).Satisfaction is a customer's evaluation of the pre and post purchase experience of their experiences with an e-business. It is a customer's perspective based on expectation and then subsequent post purchase experience. Satisfaction is higher when the actual experience exceeds the expectation. If customer expectations are not meet, they will feel dissatisfied and would more likely be less loyal to the ebusiness (Anderson, 2011). This study examines some of the important antecedents of customer satisfaction.The expectation-confirmation theory (ECT) suggests satisfaction is the key motivating factor for continued purchase of product or service (Oliver, 1980). Expectation of product or service performance is linked to the satisfaction from the product or service. The majority of previous studies consider satisfaction to be an effective response to an expectancy confirmation involving a cognitive process (Oliver, 1997). Satisfaction should be evaluated as positive, indifferent, or negative feeling towards the experience with product or service.PROPOSITIONSWe propose a customer's perspective of e-CRM framework. We have the following five propositions:Proposition 1: Perceived service quality positively affects customer satisfaction Proposition 2: Perceived sense of community has a positive effect on customer satisfaction.Proposition 3: Perceived price fairness has a positive effect on customer satisfaction.Proposition 4: Perceived customer orientation of the firm has a positive effect on customer satisfaction. …