ISSN: 2222-6990
Open access
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.
Bela, J., Cipova, E., Demjan, V. (2014). Current trends in area of Satisfaction of bank clients in the Zech Republic and Slovakia. Transformation Business and Economics, 13 (33), 219-234.
Carter, T. (2010). The challenge of managers keeping customers. International Management Review, 6(2), 20-27.
Central Bank of Kenya. (2014). Annual Economic Report. Central Bank of Kenya www.centralbank.go.ke.
Chen, J. I., & Popovich, K. (2003). Understanding customer relationship management: People, processes and technology. Business Process Management Journal, 9(5), 672-688.
Christopher, M., Payne, A., & Ballantyne, D. (1991). Relationship marketing: Bringing quality, customer service and marketing together. Butterworth- Heinemann, Oxford.
Cooper, D. R., & Schindler, P. S. (2003). Business research methods, 8th Ed. New Delhi: Tata McGraw-Hill Publishing Company Ltd.
Dewan, M., & Mahajan, S. (2014). Customer satisfaction and moderating effect of demographics in public sector banks. Journal of Business and Management, 16 (3), 29-35.
Elanian, H. (2003). Staff Perception of Service Quality in Egyptian Commercial Banks. An Internal and External Perspective. Loughbrough University.
Evanschitzky, H., & Wunderlich, M. (2006). An examination of moderator effects in the four-stage loyalty model. Journal of Service Research, 8(4), 330-345.
Fonseca, J. R. (2014). E-banking Culture: Acomparison of EU 27 countries and Portuguese case in EU 27 retail banking context. Journal of Retailing & Consumer Services, 21 (5), 708-7016.
Gay, L. R. (1981). Educational Research: Competencies for Analysis and Application. Columbus, Charles E. Merrill Publications.
Gupta, A., Dev, S. (2012).Client satisfaction in Indian banks: An empirical study. Management Research Review, 35 (7), 617-7016)
Gupta, S. P. (2005). Statistical Methods. New Delhi: Sultan Chand & Sons Educational Publishers.
Kombo, F. (2016). How demographic factors determine banking satisfaction; Zech and Kenyan case study. Actual Problems of Economics, 9(183).
Kombo, F. (2015). Factors for customer satisfaction and customer dissatisfaction in commercial banks. Mediterrenean Journal of Social Sciences, 6(4), 584-589.
Kothari, C. R. (2009). Research Methodology: Methods and techniques. New Delhi: New Age International.
Krishna, M. V., & Anaandavel, V. C. (2014). Does customer relationship management improve customer satisfaction and customer loyalty in retail banking? Saiom Journal of Commerce Management, 1, 8.
Malhotra, N., Hall, J., Shaw, M., & Oppenheim, P. (2002). Marketing Research: An Applied Orientation. Prentice-Hall:Sydney.
Mihelis, G., Grigoroudis, E., Siskos, Y., Politis, Y., & Malanrakis, Y. (1998). Customer Satisfaction measurement in the private bank sector. European Journal of Operational Research, 130(2), 347-360.
Narteh, B., & Kuada, J. J. (2013). Customer satisfaction with retail banking services in Ghana. Thunderbird International Review, 56(4), 353-371.
Oyewole, P. (2001). Consumer’s Socio-demographic Characteristics and Satisfaction with Service in the Airline Industry. Services Markets Quarterly, Binghamton, 23, 155.(2), 61.
Payne, A., & Frow, P. (2008). Managing the co-creation of value. Journal of the Academy Marketing Science 36, 89-96.
Ranaweera, C., McDougall, G., & Bansal, H. (2005).A model of online customer behavior during the initial transaction : moderating effect of customer characteristics. Journal of the Academy of Marketing Science, 22(3), 247-269.
Sin, L. Y. M., Tse, A. C. B., & Yim, F. H. K. (2005). Customer relationship marketing: Conceptualization and scale development. European Journal of Marketing, 39(11/12), 1264 – 1290.
Thuo, J. K. (2011). Customer relationship management and competitiveness of commercial banks in Kenya. PhD Thesis, University of Nairobi.
Terpestra, M., Kuijlen, T., Sijtsma, K. (2014). How to develop a customer satisfaction scale with optimal construct validity. Quality and Qu
In-Text Citation: (Mwirigi, Maina, & Kimencu, 2018)
To Cite this Article: Mwirigi, R. N., Maina, S., & Kimencu, L. (2018). Moderating Role of Demographics on the Relationship between Customer Relationship Management and Satisfaction of Commercial Banks’ Account Holders in Kenya. International Journal of Academic Research in Business and Social Sciences, 8(5), 680–698.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode