Moderating Role of Demographics on the Relationship between Customer Relationship Management and Satisfaction of Commercial Banks’ Account Holders in Kenya
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2018, Vol 8, Issue 5
Abstract
Customer relationship management (CRM) in the banking sector is concerned with maintenance and optimization of long lasting valuable relationships with customers. Globally, CRM has been applied in the banking sector to enhance customer satisfaction which increases competitiveness, customer retention, loyalty and profitability. The greatest challenge in the banking industry is maintaining relationships with customers of different age sets, gender and income levels which impact negatively on customer satisfaction and performance. The objective of this study was to establish the moderating effect of demographics (age, gender, income level) on the relationship between CRM and satisfaction of commercial banks account holders in Kenya. The target population was 28,324,334 account holders from commercial banks in Kenya out of which a sample of 400 respondents was used. The study used both descriptive and explanatory research design. Primary data was collected using multi-stage sampling technique. For data analysis, stepwise multiple linear regression was used. This study established a significant and positive moderating relationship explaining; age (R2 =56.9%), gender (R2 =62.3%) and income level (54.6%) variation in satisfaction of account holders. This study concluded that age, gender and income have a positive and statistically significant moderating effect on the relationship between CRM and satisfaction of account holders in Kenya. Based on the findings, this study recommends that commercial banks should develop CRM strategies that minimize account holder dissatisfaction and maximize satisfaction with their services based on age, gender and income level. The study further suggests that similar studies be carried out in other service industries to further validate the study proposition.
Authors and Affiliations
Rael Nkatha Mwirigi, Samuel Maina, Dr. Linda Kimencu
Keywords
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- EP ID EP562745
- DOI 10.6007/IJARBSS/v8-i5/4170
- Views 41
- Downloads 0
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