Relating Technology Based CRM to Service Quality in the Telecommunications Industry in Arusha City, Tanzania

Aneth Herman Foya; James Kilika; Stephen Muathe

doi:doi:10.11648/j.sjbm.20150306.11

| Peer-Reviewed

Relating Technology Based CRM to Service Quality in the Telecommunications Industry in Arusha City, Tanzania

Aneth Herman Foya, James Kilika, Stephen Muathe

Published in Science Journal of Business and Management (Volume 3, Issue 6)

Received: 25 August 2015 Accepted: 15 September 2015 Published: 28 September 2015

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

Customer Relationship management concept is vital not only to service based organizations but also to manufacturing based industries. CRM enhances the ability of businesses to survive in the context of a changing business environment characterized by high competition. Theoretically, CRM has been advocated due to the role that it can play in creating, nurturing and maintaining mutual relationships between an organization and its customers. This study examined the effect of the technology based CRM on service quality in the Telecommunications industry in Arusha, Tanzania. The study used an integrated theoretical framework that conceptualized the constructs for the technology based CRM using both theories on technology and those on customer service relationship management. Four hypotheses relating the independent and dependent variables were tested. The study used a descriptive survey design that was cross sectional in nature. The population of the study consisted of diverse stakeholders within the telecommunication industry in Tanzania. Those that comprised the population included four telecommunications companies, their respective distributors and subscribers, estimated at a total of 26,514,895. A sample of 323 respondents was drawn and data obtained from each using a predetermined questionnaire that was self administered to each respondent. The data obtained from the field was analyzed by both descriptive and inferential statistics and multiple linear regression was employed to test the hypotheses. The descriptive findings of the study indicated that mobile phone companies have employed the technology based CRM systems to a good extent (Mean=4) so as to align their business activities towards delivering services to customers. The results of the hypotheses tested indicated that there was no statistically significant relationship between system automation and service quality as well as system functionality and service quality (β= -.109, p>0.05; β=-.244, p>0.05 respectively). However, the study found that there is a statistically significant relationship between system user acceptance, service quality, system integration and service quality (β=-.588; p< 0.05; β= .814, p< 0.05 respectively). The study suggested that the mobile service organizations need to invest not only in technology based CRM but also to invest in the aspect of internal marketing since it has potential to enhance the level of service quality offered by mobile phone companies. The findings of the study called on future research on technology based CRM to incorporate the aspects of individual IT users’ demographic and psychological characteristics.

Published in	Science Journal of Business and Management (Volume 3, Issue 6)
DOI	10.11648/j.sjbm.20150306.11
Page(s)	209-218
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Customer Relationship Management, Service Quality, Telecommunication Industry, Technology, Technology Based CRM

References

[1]	Agyei, P. M. &Kilika J. M. (2013). The Relationship between Service Quality and Customer Loyalty in the Kenyan Mobile Telecommunication Service Industry. European Journal of Business and Management, 5 (23).
[2]	Baran, R. J., Galka, R. & Strunk, P. D. (2008) Principles of Customer Relationship Management Thomson Ltd, USA.
[3]	Berry, L. L. & Parasuraman, A. (1991). Marketing Services. New York: The Free press.
[4]	Bhatt, G. D. & Emdad, A. F. (2010). The Role of Information Communication Technology in Customer Relationship Management. Journal of Systems and Information Technology. 12 (1).
[5]	Blythe, J. (2006). Principles and Practice of Marketing. Thomson Learning.
[6]	Boone, L. E. & Kurtz, D. L. (2004). Contemporary Marketing, 11^th Edition. Thomson Learning.
[7]	Bull, C. (2003). Strategic Issues in Customers Relationship Management Implementation. Business process Management Journal, 9 (5), 592-603.
[8]	Buttle, F. (2009). Customer Relationship Management 2^nd Edition. Elsevier Limited.
[9]	Chen, I. J & Popovich, K. (2003). Understanding Customer Relationship Management (CRM): People, process and Technologies. Business Process Management Journal, 9 (5), 672-688
[10]	Curry, A. & Kkolou, E. (2004). Evaluating CRM to Contribute to TQM Improvement –a cross –case comparison. The TQM Magazine, 16 (5), 314-324.
[11]	Egan, J. (2008). Relationship Marketing, Exploring Relational Strategies in Marketing, 3^rd Edition. Pearson Educational Limited.
[12]	Fink, A. (2003). How to Ask Survey Questions. (2nd Ed). Thousand Oaks, CA: Sage.
[13]	Fink, A. (2003). The Survey Handbook. (2nd Ed). Thousand Oaks, CA: Sage.
[14]	Gabbott, M & Hogg, G. (1997). Contemporary Service Marketing Management. Brace & Company UK.
[15]	Hutt, M. D. & Speh, T. W. (2007). Business Marketing Management: B2B, 9^TH Edition. Cengage learning India private limited.
[16]	Kapoor, R., Paul, J. & Halder, B. (2011). Services Marketing. Tata McGraw Hill.
[17]	Kotler, P. & Armstrong, G. (1999). Principles of Marketing, 8^th Edition. Upper Saddle River, NJ: Prentice Hall.
[18]	Kotler, P. (2000). Marketing Management. Prentice Hall, Upper Saddle River, New Jersey.
[19]	Kotler, P. & Keller, K. (2006). Marketing Management, Pearson Prentice Hall, Upper Saddle River, NJ, USA.
[20]	Kotler, P. & Keller, K. (2008). Marketing Management, 13Ed Pearson Prentice Hall, Upper Saddle River, NJ, USA.
[21]	Kotler, P. & Armstrong, G. (2006). Principles of Marketing. 11^th Edition. Pearson Education Limited.
[22]	Kotler, P. & Armstrong, G. (2012). Principles of Marketing. 14^th Edition. Pearson Education Limited.
[23]	Kothari, C. R. (2004). Quantitative Techniques. New Delhi: Vikas Publishing House, PVT Ltd.
[24]	Leisen, B. & Vance, C. (2001). Cross- National assessment of service quality in Telecom industry: Evidence from USA and Germany. Journal of service quality 11(5), 307-317.
[25]	Lucas, R. W. (2005). Customers Service, 3^rd Edition. McGraw Hill Companies, New York, America.
[26]	MacKenzie, S. B. (2003). The Dangers of Poor Construct Conceptualization. Journal of the Academy of Marketing Science, 31(3), 323-326.
[27]	Maklan, S. & Knox, S. (2008). New Trends in Innovation and Customer Melationship Management: A Challenge for Market Mesearchers. International Journal of Market Research, Vol 50, No. 2, pp221-240.
[28]	Materu, M. B., & Diyamett, B. D. (2010). Tanzania ICT Sector Performance Review Towards Evidence-based ICT Policy and Regulation, 2 (11). Retrieved from: http://www.tanzania.go.tz/egov_uploads/documents/Vol_2_Paper_11__Tanzania_ICT_Sector_Performance_Review_2010_sw.pdf.
[29]	Mele, C. (2007). The Synergic Relationship between TQM Marketing in Creating Customer Value. Managing Service Quality, 17 (3), 240-258.
[30]	McDaniel C. Jr., & Gates, R. (1996), Contemporary Marketing Research, 3^rd Edition. West Publishing Company, U.S.A.
[31]	McDonald, M. & Christopher, M. (2003). Marketing, a Complete Guide. Palgrave Macmillan, New York.
[32]	Mugenda, O. & Mugenda, A. (2003). Research Methods: Qualitative and Quantitative Approach, Nairobi: ACTs press.
[33]	Mkono, N. & Kapinga K. W. (2014). Telecommunication Companies in Tanzania. Retrieved from hptt://www.mkono.com/pdf/ICLG_Tanzania.
[34]	Nachmias, C. F. & Nachmias, D. (2004). Research Methods in the Social Sciences, 5^Th. Edition. London: Arnold.
[35]	Parasuraman, A., Berry, L. L., & Zeihaml, V. A. (1991). Refinement and Reassessment of the SERVQUAL Scale. Journal of Retailing, 67 (4), 420-450.
[36]	Parasuraman, A., Berry, L. L., & Zeihaml, V. A. (1988). SERVQUAL: A Multiple Item Scale for Measuring Consumer Perceptions of Service Quality. Journal of Retailing, 64(1), 12-40.
[37]	Petter, J. P. & Donnelly, J. H. Jr. (2007). Marketing Management, 8^th Edition. McGraw Hill USA.
[38]	Reinartz, W, Krafft, M. & Hoyer, D. W. (2004). The Customer Relationship Management Process; Its Measurement and Impact on Performance. Journal of Marketing Research, 41 (3), 293 – 305.
[39]	Richard J. Semeki et. al. (1995). Principles of Marketing, Canadian Edition. Thomson Canada Limited.
[40]	Richard J. E., Thirkell, P. C & Huff, S. L. (2007). The Strategic Value of CRM: A Technology Adoption Perspective. Journal of strategic Marketing 15(5), 421-439.
[41]	Salo, J. (2012). The Role of Mobile Technology in a Buyer-Supplier Relationship: A Case Study from the Steel Industry. Journal of Business & Industrial Marketing, 27(7).
[42]	Seth, N. & Deshmukh, S. G. (2004). Service Quality Models: a Review. International Journal of Quality & Reliability Management, 22 (9), 913-949.
[43]	Smith, A. D. (2010). Strategic Leveraging Total Quality and CRM Initiatives; Case Study of Service – Oriented Firms. Service Marketing Quarterly, 32(1), 1-16.
[44]	Stallings, W. (2004). Data and Computer Communications (7th). Pearson Prentice Hall. ISBN 0-13-183311-1.
[45]	Thompson, K. R., Knox S. & Maklan, S. (2009). Developing Relationship Marketing Through the Implementation of Customer Relationship Management Technology” Journal of Business and Marketing, 8(4), 58 – 66.
[46]	Travakol, M. & Dennick, R. (2011). Making Sense of Cronbach’s alfa. International Journal of Medical Education 2(5), 3-55.
[47]	Wang, Y., Po Lo, H. & Yang Y. (2004). An Integration Framework for Service Quality, Customer Value Satisfaction: Evidence from China’s Telecoms Industry. Journal of Information Systems Frontiers, 6(4), 325-340.
[48]	Xu, Y., Yen, D. C., Lin, B. & Chou, D C (2002). Adopting Customer Relationship Management Technology. Industrial Management & Data System 102 (8), 442-452.
[49]	Zineldin, M. (2005). Quality and Customer Relationship Management (CRM) as Competitive Strategy in the Swedish Banking Industry. The TQM Magazine, 17 (4), 329-344.
[50]	Zineldin, M. (2006). The Loyalty of Loyalty: CRM, Quality and Retention. Journal of Consumer Marketing, 23, 430-437.
[51]	Zhu, F. X., Wymer, W. & Chen, I. (2002). IT Based Services and Service Quality in Consumer Banking. International Journal of Service Industry Management, 13 (1), 69-90.

Cite This Article

Plain Text BibTeX RIS

APA Style

Aneth Herman Foya, James Kilika, Stephen Muathe. (2015). Relating Technology Based CRM to Service Quality in the Telecommunications Industry in Arusha City, Tanzania. Science Journal of Business and Management, 3(6), 209-218. https://doi.org/10.11648/j.sjbm.20150306.11

Copy | Download

ACS Style

Aneth Herman Foya; James Kilika; Stephen Muathe. Relating Technology Based CRM to Service Quality in the Telecommunications Industry in Arusha City, Tanzania. Sci. J. Bus. Manag. 2015, 3(6), 209-218. doi: 10.11648/j.sjbm.20150306.11

Copy | Download

AMA Style

Aneth Herman Foya, James Kilika, Stephen Muathe. Relating Technology Based CRM to Service Quality in the Telecommunications Industry in Arusha City, Tanzania. Sci J Bus Manag. 2015;3(6):209-218. doi: 10.11648/j.sjbm.20150306.11

Copy | Download

@article{10.11648/j.sjbm.20150306.11,
  author = {Aneth Herman Foya and James Kilika and Stephen Muathe},
  title = {Relating Technology Based CRM to Service Quality in the Telecommunications Industry in Arusha City, Tanzania},
  journal = {Science Journal of Business and Management},
  volume = {3},
  number = {6},
  pages = {209-218},
  doi = {10.11648/j.sjbm.20150306.11},
  url = {https://doi.org/10.11648/j.sjbm.20150306.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20150306.11},
  abstract = {Customer Relationship management concept is vital not only to service based organizations but also to manufacturing based industries. CRM enhances the ability of businesses to survive in the context of a changing business environment characterized by high competition. Theoretically, CRM has been advocated due to the role that it can play in creating, nurturing and maintaining mutual relationships between an organization and its customers. This study examined the effect of the technology based CRM on service quality in the Telecommunications industry in Arusha, Tanzania. The study used an integrated theoretical framework that conceptualized the constructs for the technology based CRM using both theories on technology and those on customer service relationship management. Four hypotheses relating the independent and dependent variables were tested. The study used a descriptive survey design that was cross sectional in nature. The population of the study consisted of diverse stakeholders within the telecommunication industry in Tanzania. Those that comprised the population included four telecommunications companies, their respective distributors and subscribers, estimated at a total of 26,514,895. A sample of 323 respondents was drawn and data obtained from each using a predetermined questionnaire that was self administered to each respondent. The data obtained from the field was analyzed by both descriptive and inferential statistics and multiple linear regression was employed to test the hypotheses. The descriptive findings of the study indicated that mobile phone companies have employed the technology based CRM systems to a good extent (Mean=4) so as to align their business activities towards delivering services to customers. The results of the hypotheses tested indicated that there was no statistically significant relationship between system automation and service quality as well as system functionality and service quality (β= -.109, p>0.05; β=-.244, p>0.05 respectively). However, the study found that there is a statistically significant relationship between system user acceptance, service quality, system integration and service quality (β=-.588; p respectively). The study suggested that the mobile service organizations need to invest not only in technology based CRM but also to invest in the aspect of internal marketing since it has potential to enhance the level of service quality offered by mobile phone companies. The findings of the study called on future research on technology based CRM to incorporate the aspects of individual IT users’ demographic and psychological characteristics.},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Relating Technology Based CRM to Service Quality in the Telecommunications Industry in Arusha City, Tanzania
AU  - Aneth Herman Foya
AU  - James Kilika
AU  - Stephen Muathe
Y1  - 2015/09/28
PY  - 2015
N1  - https://doi.org/10.11648/j.sjbm.20150306.11
DO  - 10.11648/j.sjbm.20150306.11
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 209
EP  - 218
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20150306.11
AB  - Customer Relationship management concept is vital not only to service based organizations but also to manufacturing based industries. CRM enhances the ability of businesses to survive in the context of a changing business environment characterized by high competition. Theoretically, CRM has been advocated due to the role that it can play in creating, nurturing and maintaining mutual relationships between an organization and its customers. This study examined the effect of the technology based CRM on service quality in the Telecommunications industry in Arusha, Tanzania. The study used an integrated theoretical framework that conceptualized the constructs for the technology based CRM using both theories on technology and those on customer service relationship management. Four hypotheses relating the independent and dependent variables were tested. The study used a descriptive survey design that was cross sectional in nature. The population of the study consisted of diverse stakeholders within the telecommunication industry in Tanzania. Those that comprised the population included four telecommunications companies, their respective distributors and subscribers, estimated at a total of 26,514,895. A sample of 323 respondents was drawn and data obtained from each using a predetermined questionnaire that was self administered to each respondent. The data obtained from the field was analyzed by both descriptive and inferential statistics and multiple linear regression was employed to test the hypotheses. The descriptive findings of the study indicated that mobile phone companies have employed the technology based CRM systems to a good extent (Mean=4) so as to align their business activities towards delivering services to customers. The results of the hypotheses tested indicated that there was no statistically significant relationship between system automation and service quality as well as system functionality and service quality (β= -.109, p>0.05; β=-.244, p>0.05 respectively). However, the study found that there is a statistically significant relationship between system user acceptance, service quality, system integration and service quality (β=-.588; p respectively). The study suggested that the mobile service organizations need to invest not only in technology based CRM but also to invest in the aspect of internal marketing since it has potential to enhance the level of service quality offered by mobile phone companies. The findings of the study called on future research on technology based CRM to incorporate the aspects of individual IT users’ demographic and psychological characteristics.
VL  - 3
IS  - 6
ER  -

Copy | Download

Author Information

Aneth Herman Foya

Department of Marketing, St. Augustine University, Arusha, Tanzania
James Kilika

Department of Business Administration, Kenyatta University, Nairobi, Kenya
Stephen Muathe

Department of Business Administration, Kenyatta University, Nairobi, Kenya

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Aneth Herman Foya, James Kilika, Stephen Muathe. (2015). Relating Technology Based CRM to Service Quality in the Telecommunications Industry in Arusha City, Tanzania. Science Journal of Business and Management, 3(6), 209-218. https://doi.org/10.11648/j.sjbm.20150306.11

Copy | Download

ACS Style

Aneth Herman Foya; James Kilika; Stephen Muathe. Relating Technology Based CRM to Service Quality in the Telecommunications Industry in Arusha City, Tanzania. Sci. J. Bus. Manag. 2015, 3(6), 209-218. doi: 10.11648/j.sjbm.20150306.11

Copy | Download

AMA Style

Aneth Herman Foya, James Kilika, Stephen Muathe. Relating Technology Based CRM to Service Quality in the Telecommunications Industry in Arusha City, Tanzania. Sci J Bus Manag. 2015;3(6):209-218. doi: 10.11648/j.sjbm.20150306.11

Copy | Download

@article{10.11648/j.sjbm.20150306.11,
  author = {Aneth Herman Foya and James Kilika and Stephen Muathe},
  title = {Relating Technology Based CRM to Service Quality in the Telecommunications Industry in Arusha City, Tanzania},
  journal = {Science Journal of Business and Management},
  volume = {3},
  number = {6},
  pages = {209-218},
  doi = {10.11648/j.sjbm.20150306.11},
  url = {https://doi.org/10.11648/j.sjbm.20150306.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20150306.11},
  abstract = {Customer Relationship management concept is vital not only to service based organizations but also to manufacturing based industries. CRM enhances the ability of businesses to survive in the context of a changing business environment characterized by high competition. Theoretically, CRM has been advocated due to the role that it can play in creating, nurturing and maintaining mutual relationships between an organization and its customers. This study examined the effect of the technology based CRM on service quality in the Telecommunications industry in Arusha, Tanzania. The study used an integrated theoretical framework that conceptualized the constructs for the technology based CRM using both theories on technology and those on customer service relationship management. Four hypotheses relating the independent and dependent variables were tested. The study used a descriptive survey design that was cross sectional in nature. The population of the study consisted of diverse stakeholders within the telecommunication industry in Tanzania. Those that comprised the population included four telecommunications companies, their respective distributors and subscribers, estimated at a total of 26,514,895. A sample of 323 respondents was drawn and data obtained from each using a predetermined questionnaire that was self administered to each respondent. The data obtained from the field was analyzed by both descriptive and inferential statistics and multiple linear regression was employed to test the hypotheses. The descriptive findings of the study indicated that mobile phone companies have employed the technology based CRM systems to a good extent (Mean=4) so as to align their business activities towards delivering services to customers. The results of the hypotheses tested indicated that there was no statistically significant relationship between system automation and service quality as well as system functionality and service quality (β= -.109, p>0.05; β=-.244, p>0.05 respectively). However, the study found that there is a statistically significant relationship between system user acceptance, service quality, system integration and service quality (β=-.588; p respectively). The study suggested that the mobile service organizations need to invest not only in technology based CRM but also to invest in the aspect of internal marketing since it has potential to enhance the level of service quality offered by mobile phone companies. The findings of the study called on future research on technology based CRM to incorporate the aspects of individual IT users’ demographic and psychological characteristics.},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Relating Technology Based CRM to Service Quality in the Telecommunications Industry in Arusha City, Tanzania
AU  - Aneth Herman Foya
AU  - James Kilika
AU  - Stephen Muathe
Y1  - 2015/09/28
PY  - 2015
N1  - https://doi.org/10.11648/j.sjbm.20150306.11
DO  - 10.11648/j.sjbm.20150306.11
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 209
EP  - 218
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20150306.11
AB  - Customer Relationship management concept is vital not only to service based organizations but also to manufacturing based industries. CRM enhances the ability of businesses to survive in the context of a changing business environment characterized by high competition. Theoretically, CRM has been advocated due to the role that it can play in creating, nurturing and maintaining mutual relationships between an organization and its customers. This study examined the effect of the technology based CRM on service quality in the Telecommunications industry in Arusha, Tanzania. The study used an integrated theoretical framework that conceptualized the constructs for the technology based CRM using both theories on technology and those on customer service relationship management. Four hypotheses relating the independent and dependent variables were tested. The study used a descriptive survey design that was cross sectional in nature. The population of the study consisted of diverse stakeholders within the telecommunication industry in Tanzania. Those that comprised the population included four telecommunications companies, their respective distributors and subscribers, estimated at a total of 26,514,895. A sample of 323 respondents was drawn and data obtained from each using a predetermined questionnaire that was self administered to each respondent. The data obtained from the field was analyzed by both descriptive and inferential statistics and multiple linear regression was employed to test the hypotheses. The descriptive findings of the study indicated that mobile phone companies have employed the technology based CRM systems to a good extent (Mean=4) so as to align their business activities towards delivering services to customers. The results of the hypotheses tested indicated that there was no statistically significant relationship between system automation and service quality as well as system functionality and service quality (β= -.109, p>0.05; β=-.244, p>0.05 respectively). However, the study found that there is a statistically significant relationship between system user acceptance, service quality, system integration and service quality (β=-.588; p respectively). The study suggested that the mobile service organizations need to invest not only in technology based CRM but also to invest in the aspect of internal marketing since it has potential to enhance the level of service quality offered by mobile phone companies. The findings of the study called on future research on technology based CRM to incorporate the aspects of individual IT users’ demographic and psychological characteristics.
VL  - 3
IS  - 6
ER  -

Copy | Download