Serbian

Serbian Journal of Management 14 (2) (2019) 421 - 435 Journal

of
Management
[Link]

PillArs of Customer retention: An emPiriCAl study

on the influenCe of Customer sAtisfACtion,
Customer loyAlty, Customer ProfitAbility on
Customer retention

bader Almohaimmeed*

Business Administration Department, College of Business & Economics (CBE),

Qassim University, KSA, Buraydah Saudi Arabia, Qassim Region, Buraydah, Almleda.

(Received 30 October 2017; accepted 09 November 2018)

Abstract

The aim of this study is to explore relationships among five factors: customer relationship
management, customer satisfaction, customer loyalty, customer profitability, and customer retention.
The sample of the study consists of 750 managers and employees of different restaurant in Riyadh,
the capital city of Saudi Arabia. The questionnaire developed for the purpose of this study is
distributed by hand to respondents. Out of 750 questionnaires distributed, 497 are returned with a
high rate of response. The Analysis of Moment Structures (AMOS, Version 22) is used to analyze the
collected data. The findings of the study revealed a significant influence of customer relationship
management on customer satisfaction, a significant influence of customer satisfaction on both
customer loyalty and customer profitability. Therefore, the data doesn’t support the hypothesis that
customer loyalty mediates the relationship between customer satisfaction and customer profitability.
On the other hand, there are significant relationships between customer satisfaction and customer
profitability and between customer profitability and customer retention, while there is no significant
relationship between customer satisfaction and customer retention.

Keywords: customer relationship management, customer satisfaction, customer loyalty, customer

profitability, customer retention.

1. introduCtion many challenges. Examples of these

challenges include the increased levels of
Organization are striving to retain competition among organizations, the
customers in order to be able to cope with advancements in information technology, the

* Corresponding author: badermeed@[Link]

doi: 10.5937/sjm14-15517
422 B. Almohaimmeed / SJM 14 (2) (2019) 421 - 435
emergence of total quality initiative, the achievement of increased value delivered to
evolution of network economy (Minna & the customers in addition to the reduced
Aino, 2005), the need for product costs of the organization. According to
customization (Ashraf et al., 2015), and Stojkovic and Dubricic (2012), CRM
globalization (Kangu et al., 2017). One of the philosophy refers to an iteration process of
most important variables reported by authors four activities, which are knowledge
which can be utilized as a solution to deal discovery, market planning, interaction with
with these challenges is customer customers and customer’s data analysis.
relationship management (CRM). ElKordy (2014) adds that this process
In fact, numerous authors cited different comprises the integration of sub-process,
advantages of using CRM. Examples of technology and customer orientation, which
these advantages include the enhancement of aims at enhancing the organization capability
customer loyalty, profitability and to effectively manage its profitable
satisfaction as well as organizational interactions with customers. Piroozfar and
performance (ElKordy, 2014). Navimipour Yaghini (2012) conceptualize CRM based on
and Soltani (2016) indicate that the main aim two views; the strategic view and the
of CRM systems is to increase the effective technological view. According to them, the
implementation of CRM processes, which in strategic view of CRM elucidates the
turn affects the effectiveness of their evolution of CRM concept in terms of
communications with customers. Alipour transactional and relational marketing in
and Mohammadi (2011) consider CRM as a view of the fact that CRM is a final result of
major competitive strategy which these two types of marketing, and the
organizations could use to enhance their technological view of CRM, in which
interactions with customers. Soliman (2011) organizations adopt new practices such as
found that CRM is significantly, directly and data mining, data warehousing and best
positively related to marketing performance. practices of customer interactions in order to
In their study on CRM and performance in deal with changes in business environment
the banking sector, Wachira and Were (2016) as the increased competition and the need for
come to a significant impact of CRM on products customization. Kangal (2012) cited
banks’ performance. Kangu et al. (2017) a number of CRM definitions in which the
figure out a positive impact of CRM on concept is considered as an approach steered
customer loyalty. towards customers, either through the
CRM has been defined as a method used emphasis on their lifecycles, as a relational
by organizations to manage business strategy, a market competition method, or as
relationships with their customers. The a customer-driven technology.
management of these relationships include To the best of the author knowledge, little
maintain prosperous long-term relationships studies are conducted to investigate the
with loyal and profitable customers indirect effect of CRM on customer retention
(Navimipour & Soltani, 2016). According to through customer satisfaction, customer
Ashraf et al. (2015), the concept of CRM is loyalty, and customer profitability using a
implanted in the management of customers sample of service organizations such as
relationships on the basis of the effective and restaurants. The main contribution of this
efficient flow of information, and the study can be recognized through finding the
 B. Almohaimmeed / SJM 14 (2) (2019) 421 - 435 423
relationships between customer relationship study seeks to investigate the mediation roles
management and customer satisfaction, played by customer loyalty and customer
customer satisfaction and customer loyalty, profitability.
customer satisfaction and customer
profitability, customer profitability and
customer retention, as well as customer 2. literAture review And
satisfaction and customer retention. On one hyPotheses develoPment
hand, customer relationship might results in
customer satisfaction, but customer 2.1. Customer relationship
satisfaction only is not enough to ensure management definition
customer loyalty Noor (2012), profitability
or retention. A deep review of the literature in relations
Numerous organizations observe the to definitions of CRM results in many
migration of some of their satisfied definitions as can be seen in Table 1. It was
customers to another competitor concluded that CRM represents a mean by
organizations. One important factor which an organization be in a position
considered as critical antecedent to cope with enables it to create superior value for itself
this case is customer loyalty. Even if an and for its customers through building
organization gains its customers loyalty, lasting relationships with those loyal and
some of them accord nothing in terms of profitable customers.
profitability and it may become unable to
retain those loyal customers. In a word, for 2.2. Customer relationship
an organization to achieve success, it should management dimensions
be able to take possession of its own loyal
and profitable customers in order to be able Different dimensions of CRM found in
to retain them. In fact, this scenario is the literature. Khodakarami and Chan (2014)
emerged from numerous discussions categorized customer relationship
conducted by the researcher with different management systems into three types:
managers and employees from different collaborative systems, analytical systems,
organizations. This conclusion is consistent and operational systems. Collaborative
with CRM theory which indicates that systems are used to manage the
organizations are required to retain loyal as communication process between the
well as profitable customers (Kangu et al., company and the customer, while analytical
2017). systems are used to analysis customer data.
In accordance with the contribution of this On the other hand, the operational systems
study, it tries to explore the relationship are used to enhance the efficiency of CRM
between customer relationship management processes. Bahrami et al. (2012) argue that
and customer satisfaction the relationship CRM uses customers data and can be
between customer satisfaction and customer facilitated by information technology
profitability through customer loyalty and applications. i.e., E-CRM. In terms of
the relationship between customer dimensions of CRM found in the literature,
satisfaction and customer retention through Chen and Popovich (2003) identified three
customer profitability. Consequently, the indispensable dimensions of CRM, which
424 B. Almohaimmeed / SJM 14 (2) (2019) 421 - 435

Table 1. Definitions of CRM

Author (s) CRM definition
A combination of three ingredients directed to efficient and effective building and maintaining
Chen and Popovich (2003)
of relationships with customers
A cyclic process of knowledge discovery, market planning, interaction with customers and
Stojkovic and Dubricic (2012)
customer’s data analysis.
Parvatiyar and Sheth (2001) cited A strategy used to create a value for the organization and the customer on the basis of
in Piroozfar and Yaghini (2012) organizational activities concern acquiring and retaining specific customers.
An information system utilized by the company in order to collect, store, analyze
Khodakarami and Chan (2014)
customer data to gain an expansive view of customers.
The integration of CRM processes, technologies, and organization along with customer
ElKordy (2014) orientation which enables the organization to manage its long-term profitable interactions with
its customers.
An information technology system used to manage organizations’ external relationships, i.e.,
Ashraf et al. (2015) relationships with customers, and internal relationships, i.e., relationship among the
organizational functions, in order to provide the customers with the intended value.
An approach used by organizations to manage business relationships with their loyal and
Navimipour and Soltani (2016)
profitable customers.

are technology, processes and people. analysis such as number of customers and
Kincaid (2003) cited in Piroozfar and profitability.
Yaghini (2012) emphasizes the use of Hassan et al. (2015) identified three
information, technology, processes and components CRM: customer, relationship,
people to implement CRM. ElKordy (2014) and management. Adalikwu (2012) study
adds two dimensions, which were the CRM in terms of customer acquisition
organization of CRM activities and customer (contact rate with customer, regular
orientation. Minna and Aino (2005) assign assessment of customer profitability, and
three inescapable components of CRM from customer persuasion), customer
the technological view: the collaborative enhancement (increased sales either by
systems, the analytical systems, and the customized offers, switching barriers, or
operational systems. Boudiaf (2016) appends decreased cost of service), and customer
two dimensions, which are key customer recovery (added value in 4Ps and customized
focus and customer knowledge. Urbanskiene services). Based on the above-mentioned
et al. (2008) pinpoint four dimensions of literature, one can conclude that CRM
CRM, which were key customer focus, CRM comprise: technology, employees, processes,
organization, knowledge management, and relationships, information, and customers.
technology-based CRM. Kangal (2012)
particularizes six dimensions of CRM: 2.3 Customer relationship
customers, management, relations, management and customer satisfaction
employees, processes, and technology.
Dumitrescu and Fuciu (2009) describe of Many studies have been confirmed that
CRM aspects: front (direct relationships with the implantation of CRM processes would
customers) and back office operations (daily results in greater level of customer
functions of the organization such billing and satisfaction (Richards & Jones, 2009;
processing), business relationships with Adalikwu, 2012; Stojkovic & Dubricic,
other organizations, CRM-related data 2012; ElKordy, 2014; Khedkar, 2015; Singh
 B. Almohaimmeed / SJM 14 (2) (2019) 421 - 435 425
& Singh, 2016). In their study on the effect al., 2011; Hafeez & Muhammad, 2012).
of CRM on customer satisfaction in banking Therefore, the following hypothesis is
sector, Hassan et al. (2015) found a positive postulated:
effect of CRM on customer satisfaction. H2: customer satisfaction has a
Consequently, the following hypothesis is significant influence on customer loyalty.
suggested:
H1: CRM has a significant influence on 2.5. Customer loyalty and customer
customer satisfaction. profitability

2.4. Customer satisfaction and According to ElKordy (2014), CRM

customer loyalty theory considers customer loyalty as one of
the most significant keys that organizations
Kangu et al. (2017) defined customer could use to enhance their profitability, and
loyalty in terms of their willingness to repeat this may be due to the fact that loyalty is
purchases, referred new customers and concerned with creating superior value for
loyalty programs. Using a sample of customers (Anderson & Jacobsen, 2000). In
managers who are responsible for relation to the importance of customer
relationships with customers of 147 hotels in loyalty in wining customer profitability,
Kenya, the researchers found a significant Babatunde and Ajayi (2010) give emphasis
relationship between IT-based CRM to the influence of customer loyalty on
applications and customer loyalty. The study customer profitability. Ibojo and Asabi
concluded that the technology infrastructure (2015) cited many studies that assure the
as a main component of CRM engenders positive impact of customer satisfaction on
customer loyalty. In fact, the direct customer loyalty, which in turn improves the
relationship between CRM and customer profitability. Thompson (2005) justify
loyalty is not one of the hypotheses organizations’ efforts to gain customer
suggested by the current study. Instead of loyalty by numerous factors: increased
that, this study explores the relationship customer profitability, increased number of
between customer satisfaction and customer customers, and increased quality of products
loyalty. and services. In order to examine these
In this vein, Arokiasamy (2005) studies in Saudi settings, the following
investigated the impact of customer hypothesis is supposed:
satisfaction on customer loyalty and H3: customer loyalty has a significant
intention to switch and points out a positive impact on customer profitability.
impact of customer satisfaction on customer
loyalty, while there is no significant 2.6. Customer satisfaction and
relationship between customer satisfaction customer profitability
and intention to switch. Hence, the study
regards customer satisfaction as a major Studies conducted to explore the impact
requirement for customer loyalty. The of customer satisfaction on profitability
positive relationship between customer make clear that both variables are positively
satisfaction and customer loyalty is cited in associated. Coldwell (2001) illustrate that
many works (Bontis et al., 2007; Mohsan et satisfied customers are more profitable than
426 B. Almohaimmeed / SJM 14 (2) (2019) 421 - 435

non-satisfied customers. Ibojo et al. (2013) 3. methodology of the study

found a significant relationship between
customer satisfaction and profitability. 3.1. study sample, data collection,
H3: customer satisfaction has a measurements and statistical techniques
significant impact on customer profitability.
This study uses a sample consisted of 750
2.7. Customer profitability and managers and employees working at
customer retention different types of restaurants in the capital
city of Saudi Arabia, Riyadh. The data of the
In its paper of marketing profitability, study is collected by a questionnaire
Lenskold Group (2003) characterize developed based on previous studies and
customer retention as a continuous flow of structured using a five-point Likert scale.
customer profitability. For an organization to CRM assessed using 12 items (Chen &
maintain its profitability stream, it is called Popovich, 2003; Kincaid, 2003 cited in
upon the development of strategies that Piroozfar & Yaghini, 2012; ElKordy, 2014;
better customer retention. Dubihlela and Boudiaf, 2016; Minna & Aino, 2005;
Molise-Khosa (2014) use a sample of Khodakarami & Chan, 2014), customer
managers of hotels to test the relationship satisfaction measured by 4 items (Singh &
between e-CRM, customer loyalty, customer Singh, 2016), customer loyalty evaluated by
retention, and customer profitability. Their 6 items (Kangu et al., 2017), customer
results accept the hypothesis that customer profitability measured using 4 items
profitability is significantly associated to (Pezeshki at al., 2005), and finally, customer
customer retention. Hence, the following retention estimated by 4 items (Wachira &
hypothesis is suggested: Were, 2016). Accordingly, the questionnaire
H4: customer profitability has a of the study consists of 30 items. The
significant impact on customer retention. questionnaire distributed by hand to
respondents and 497 questionnaires are
2.8. Customer satisfaction and returned complete and usable for the purpose
customer retention of statistical analysis. The Analysis of
Moment Structures (AMOS, V.22) is used to
While customer satisfaction is measured analyze the collected data.
in terms of the fulfillment of the gap between
customer expectation and customer actual 3.2. reliability and validity of the
experience, customer retention refers to the questionnaire
continuity of relationships between the
organization and the customer (Ibojo & Reliability is measured using the average
Asabi, 2015). Bowen and Chen (2001) variance extracted coefficients and validity is
underline the importance of customer measured by discriminant validity. The
satisfaction in order to ensure customer results in Table 2 show that the criteria in
retention. Subsequently, the following request for reliability and validity tests are
hypothesis is presumed: met. The values of composite reliability
H5: customer satisfaction has a ranged from 0.924 to 0.940 with values of
significant influence on customer retention. AVE from 0.694 to 0.822 as well as the
 B. Almohaimmeed / SJM 14 (2) (2019) 421 - 435 427
square root of AVE values, shown in bold indices of model fitness. Based on these
and the correlation coefficients between results, there is an acceptable fit between the
variables below these values, indicate an hypothetical model and the sample data.
acceptable level of reliability and validity.
4.2. estimates

4. dAtA AnAlysis The findings of regression weights for the

default model bring to light, as can be seen in
4.1. model fit summary Table 4 and Figure 1, a significant influence
of customer relationship management
The results of the structural modeling (CRM) on customer satisfaction (CS)
equation related to the fitness of the model (estimate=1.264, S.E.=0.115, C.R.=10.979,
shown in Table 3 underline an acceptable P<0.05), a significant influence of customer

Table 2. Reliability and validity results

Variable COR AVE CRM CS CL P CR
CRM 0.939 0.771 0.878
CS 0.933 0.742 0.442 0.861
CL .924 0.694 0.137 0.201 0.833
P 0.940 0.801 0.288 0.268 0.103 0.894
CR 0.928 0.822 0.093 0.025 0.132 0.322 0.906
Reliability measurements: COR (composite reliability) and AVE (average variance extracted), validity measurements: the square
root of AVE and correlation coefficients.

Table 3. Model fit summary

Indices Criterion Value Result
CMIN/DF Less than 2-5 1.752 Accepted
GFI More than 0.90 0.974 Accepted
AGFI More than 0.90 0.922 Accepted
RMR Less than 0.1 0.041 Accepted
CFI More than 0.90 0.989 Accepted
TLI More than 0.90 0.978 Accepted
RMSEA Less than 0.08 0.06 Accepted
Note: CMIN/DF: the minimum discrepancy (Chi-square/degrees of freedom), GFI: Goodness of Fit Index,
AGFI: Adjusted Goodness of Fit Index, RMR: root mean square residual, CFI: The comparative fit index,
TLI: The Tucker-Lewis coefficient, RMSEA: root mean square error of approximation.

Table 4. Estimates of the default model

Path Estimate S.E. C.R. P
CRM CS 1.264 0.115 10.979 ***
CS CL 0.626 0.137 4.580 ***
CL P 1.508 0.010 14.884 ***
P CR 1.134 0.032 7.603 ***
CS P 1.134 0.032 5.760 ***
P CR 0.412 0.003 13.90 ***
CS CR 0.029 0.014 2.046 0.41
*** The regression weight for the variable is significantly different from zero at 0.05 level.
428 B. Almohaimmeed / SJM 14 (2) (2019) 421 - 435

Figure 1. The structural equation model (SEM) 1

satisfaction (CS) on customer loyalty (CL) relationship between customer satisfaction

(estimate=0.626, S.E.=0.137, C.R.=4.580, and customer profitability. Finally, to assess
P<0.05), a significant influence of customer the mediating role of customer profitability
loyalty (CL) on profitability (P) in the relationship between customer
(estimate=1.508, S.E.=0.010, C.R.=14.884, satisfaction and customer retention. Using a
P<0.05), and a significant influence of sample consists of 500 managers and
profitability (P) on customer retention (CR) employees working at different types of
(estimate=1.134, S.E.=0.032, C.R.=7.603, restaurants in the capital city of Saudi
P<0.05). On the part of CS and CR, the Arabia, Riyadh. The results point out that
results found a non-significant between these customer relationship management is
variables (estimate=-0.029, S.E.=0.014, significantly related to customer satisfaction.
C.R.=2.046, P=0.410). That is, hypothesis 1 is accepted.
The current data doesn’t support the
second hypothesis which assumes that
5. disCussion customer loyalty mediates the relationship
between customer satisfaction and
The aims of this study are fourfold. First, profitability since there is a significant
to investigate the influence of customer relationship between customer satisfaction
relationship management on customer and customer loyalty, a significant
satisfaction. Second, to explore the relationship between customer loyalty and
mediating role of customer loyalty in the profitability, and a significant relationship
1 e: Error
 B. Almohaimmeed / SJM 14 (2) (2019) 421 - 435 429
between customer satisfaction and customer. Additionally, low percent of loyal
profitability. That is to say, customer customers, i.e., 20 percent contributes a high
satisfaction is significantly related to percent, e.g., 80 percent of organization’s
customer profitability, either directly or revenue.
indirectly. The mediating role of customer In his work on the relationship between
profitability in the relationship between customer relationship management and
customer satisfaction and customer retention marketing performance, Soliman (2011)
as suggested in hypothesis fails to be indicates that most of the CRM concepts,
accepted, since there is a significant i.e., process, strategy, philosophy,
relationship between customer satisfaction technology, and ability are ground on the
and profitability, a significant relationship establishment of profitable long-term
between profitability and customer retention, relationships with customers on the basis of
while there is no relationship between its ability to adopt in a continuous manner to
customer satisfaction and customer every customer in order to retain him or her.
retention. Table 5. Explained the summary In relation to customer loyalty, Minna and
of hypotheses testing results Aino (2005) identified creating customer
The results of the current study show a loyalty as a major process of CRM. In the
direct relationship between customer same context, Soliman (2011) defined CRM
relationship management and customer as an approach used to understand customers
satisfaction, a direct relationship customer behaviors in order to increase their loyalty.
satisfaction and customer profitability, and Kangu et al. (2017) detects a positive
indirect relationship between customer influence of CRM as measured by
satisfaction and customer retention. On the technology infrastructure on customer
strength of these results, one can conclude loyalty. Minna and Aino (2005) mention a
that organizations pay more attention to main theme of CRM philosophy which is to
customer relationship management in order build and maintain long-term relationships
to ensure their customers satisfied. From with profitable customers.
managers and employees of organizations All in all, Jha (2008 cited in Wachira and
under study, organizations direct their efforts Were, 2016) think of customer retention as
to satisfy loyal and profitable customers. The an ultimate outcome of CRM. Babatunde
results found a positive linkage between and Ajayi (2010) find out that CRM is
customer satisfaction and both customer positively affects customer profitability.
loyalty and customer profitability. Noor (2012) views customer satisfaction and
However, organizations do not consider loyalty as intangible components of e-CRM
customer retention seriously in the absence performance, and regard customer retention
of their profitability. In other words, as a tangible aspect of e-CRM performance.
organizations take three main considerations Richards and Jones (2009) list several
into their account to guarantee their customer benefits of CRM based on the results of
retention: customer satisfaction, customer previous studies; enhanced customer
loyalty and customer profitability. Singh and satisfaction. In relation to the direct impact
Singh (2016) reported that the cost of of CRM on customer satisfaction, Singh and
satisfying one customer is less seven times Singh (2016) name enhanced customer
than the cost required to attract a new satisfaction as a main advantage of CRM.
430 B. Almohaimmeed / SJM 14 (2) (2019) 421 - 435

Table 5. Summary of hypotheses testing results

Hypothesis Result
H1 Customer relationship management is significantly related to customer satisfaction Supported
H2 Customer loyalty mediates the relationship between customer satisfaction and customer profitability Rejected
H3 Customer profitability mediates the relationship between customer satisfaction and customer retention Supported

Richards and Jones (2009) state that the 6.2. limitations and future research
enhanced customer satisfaction is one of the
most common benefits of CRM. Khedkar Despite the importance of the results
(2015) found appositive and significant found by the current study, it still limited to
effect of CRM on customer satisfaction the sample of the study which consists of
which in turn affects customer loyalty. managers and employees of restaurants only.
Despite the significant and direct impact of Researchers are called to use the same
customer satisfaction on customer loyalty as constructs in different organizations from
this study find. different sizes. Another limitation of the
study relates to the model of the study, where
the direct or indirect relationships between
6. ConClusions customer relationship management on one
side and customer loyalty, customer
6.1. recommendations profitability, and customer retention on the
other side. It is recommended to explore the
CRM results in satisfied customers, which relationship between these variables in the
in turn indirectly affects customer retention. future. For example, further studies are
The direct relationship is between customer needed to investigate the relationship
satisfaction and customer loyalty and between CRM and customer loyalty, either
customer profitability. Therefore, directly or indirectly through customer
organizations are required to undertake satisfaction. The generalization of the results
practices directed to attract profitable should be carefully applied, since the study is
customers and take into their consideration kept within bounds of restaurants in the
how to retain those customers. Examples of capital city, Riyadh. Moreover, the study
methods employed this goal is to create measured customer satisfaction from
loyalty programs, training programs managers’ and employees’ viewpoints.
designed to equip the organizational staff Future study should measure customer
with knowledge and skills related to create satisfaction from customers’ perspectives.
long-term profitable relationships with Based on Garrido-Moreno et al.’s (2014)
customers. results, two variables are necessary to ensure
Babatunde and Ajayi (2010), in their study the success of CRM, which are
on CRM in banking sector recommend banks organizational commitment and knowledge
to invest more in employee training in order to management. Figure 2 shows a suggested
ensure an effective and efficient use of CRM. model that researchers should consider in
In agreement with Kangu et al. (2017), the their future studies.
presents study hold the view that organizations
ought to adapt to technology advancements in
order to increase their customers loyalty.
 B. Almohaimmeed / SJM 14 (2) (2019) 421 - 435 431

Figure 2. Suggested model for future research

СтубовИ задржавања потрошача: ЕмпИрИјСка

СтудИја о утИцају задовољСтва, лојалноСтИ И
профИтабИлноСтИ потрошача на њИхово
задржавањЕ

bader Almohaimmeed
Извод

Циљ ове студије је истражити односе између пет фактора: управљање односима са
потрошачима, задовољство потрошача, лојалност потрошача, профитабилност и задржавање
потрошача. Узорак студије чини 750 менаџера и запослених у различитим ресторанима у
Ријаду, главном граду Саудијске Арабије. Упитник састављен за потребе ове студије ручно се
делио испитаницима. Од 750 подељених упитника, 497 је враћено се исправним одговорима,
што чини високу стопу добијених одговора. Анализа тренутних структура (АМОС, верзија 22)
коришћена је за анализу прикупљених података. Резултати ове студије открили значај утицаја
управљања односима са потрошачима на задовољство потрошача, као и значајан утицај
задовољства потрошача на лојалност и на профитабилност потрошача. Стога, подаци не
подржавају хипотезу да лојалност потрошача посредује у односу између задовољства и
профитабилности потрошача. Са друге стране, постоје значајни односи између задовољства и
профитабилности потрошача и између профитабилности и задржавања потрошача, док не
постоји значајна веза између задовољства и задржавања потрошача.

Кључне речи: управљање односима са потрошачима, задовољство потрошача, лојалност

потрошача, профитабилност потрошача, задржавање потрошача.
432 B. Almohaimmeed / SJM 14 (2) (2019) 421 - 435
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APPendiX

Questionnaire (Likert scale five point)

CRM
1. I feel CRM strategies is mainly concerned with the consumers interests.
2. I feel secured & satisfied with CRM strategies of the retail outlet.
3. Business is better with CRM rather than without.
4. I think time has come to make use of CRM extensively in retail
5. CRM leads to improve the customer base in retail.
6. I am feeling safe in the transaction
7. This restaurant presents the innovative services
8. This restaurant contacts with me and informs me about new campaigns and services
9. The personnel of this restaurant are sincere, helpful and kind.
10. The personnel of this restaurant understand my demands quickly and fulfil them immediately.
11. The personnel of this restaurant use an easy-to-understand language while giving service.
12. At this restaurant, all the news regarding the customer is collected regularly.
Customer satisfaction
1. I am satisfied with the performance of the employees
2. I am satisfied with the overall services range offered by the retailer.
3. I am satisfied with the overall service quality offered by the retailer.
4. The products and services offered by this restaurant meet my needs.
Customer loyalty
1. I intend to continue using services from this retail outlet for a long time
2. I am willing to say positive things about this retail outlet to other people.
3. I recommend to my friends and colleagues to visit & purchase through the same retail outlet as I do
4. This restaurant has a positive image
5. I will go on using the same restaurant
6. This restaurant is a leading restaurant in the industry
Customer profitability
1. Good value for the price paid
2. The cost is very acceptable
3. Supposing I were in the area again, I would go to this restaurant.
4. I received the service in shortly time
Customer retention
1. I plan to continue my relationship with this restaurant in future.
2. I would encourage friends and relatives to go to this restaurant.
3. I have said positive things about my restaurant to others.
4. I consider my restaurant as my first choice.
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