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The Importance of “Emotional” Features in Web-Based CRM System

The Importance of “Emotional” Features in Web-Based CRM System
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Author(s): Noor Raihan Ab Hamid (Multimedia University, Malaysia) and Ali Khatibi (Multimedia University, Malaysia)
Copyright: 2007
Pages: 4
Source title: Managing Worldwide Operations and Communications with Information Technology
Source Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59904-929-8.ch104
ISBN13: 9781599049298
EISBN13: 9781466665378

Abstract

The notion of managing customer relationships would lead to better profitability has gained more attention from companies today. Companies’ CRM efforts are not only limited to the physical contact points with customers: CRM program extends even to the online channel. However, recently researchers tend to focus on the importance of managing customer experience within the CRM initiatives. Past studies claim that CRM is not just a system solution to improve marketing and selling product/services. CRM system should also enable the features that would increase customers’ emotional value toward improved customers’ experience. However, what are the “emotional features” that can be delivered in an online environment and what are the effects of those features on customer retention? Based on the literature, this study investigates the relationships between emotional features and customer retention. As such, questionnaire surveys were used to gather consumers’ perceptions toward the internet as a shopping medium. In this study, we use structural equation model to test the fitness of data to the research model and reported the path loadings of studied variables. Our findings determine that “emotional” constructs: personalization, place/track orders and online community influence customer retention. We discuss the results and suggest some directions for future research.

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