journal of mobile technologies, knowledge & society vol...
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Journal of Mobile Technologies,Knowledge & Society
Vol. 2011(2011), ArticleID940658, 308 minipages.DOI:10.5171/2011.940658www.ibimapublishing.com
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Copyright © 2011 Amine Nehari Talet,Mazen Harbi Shawosh and Saeed A. Al-Saeed . This is an open access articledistributed under the CreativeCommons Attribution License unported3.0, which permits unrestricted use,distribution, and reproduction in anymedium, provided that original work isproperly cited.
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The Perception of CustomerRelationship Management
AdoptionCase of Mobile Companies in
Saudi Arabia
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Authors
Amine Nehari Talet,Mazen Harbi Shawoshand Saeed A. Al-Saeed
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King Fahd University ofPetroleum & Minerals,Dhahran, Saudi Arabia
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AbstractThe purpose of this study isto ascertain customersatisfaction perception ofCustomer Relationship
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Management (CRM)adoption by mobile telecomcompanies in Saudi Arabia.This study surveys morethan 440 mobile telecomcustomers to investigate
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their opinion about thequality of offered customerservices by mobile telecomcompanies and its impacton customer satisfactionand hence customer. The
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study concentrates on themain three channels usedby mobile companies toprovide customer services(customer service offices,phone operator and web
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site services). Empiricalfindings present evidencethat the quality of customerservice significantly affectcustomer satisfaction andthus customer loyalty. It is
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found that the majority ofcustomers preferred to usephone operator than officecustomer services.
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Keywords: CustomerRelationship Management(CRM), CustomerSatisfaction, Customerloyalty.
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IntroductionIn today’s globalised andborderless market, quality,productivity andsatisfaction of customers
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pose a challenge for thesurvival and growth of allfirms. These growth andsurvival demands arefurther expanded by theneed to attract and retain
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loyal customers. Themanagement recognizesthat customers are thespirit of a business and thata company’s successdepends on effectively
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managing relationshipswith them. Thus, thecustomer is the main focusfor any successful business.Business success dependson a firm’s understanding
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and meeting customers’needs and demands. Today,often, the objectivesbecome constraints forbusinesses and theiremployees when they do
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not have appropriate tools,equipment, or methods toachieve this goal. Since thelast two decades, thetelecommunications sectorhas become a vital key area
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for the economicdevelopment of nations.The telecommunicationindustry’s role in aneconomy cannot beunderemphasized. This is
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because it is the meansthrough which all dailytransactions and activitiesare undertaken. It aidsdecision making,organizing, influencing,
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activating, instructing,providing feedback,promoting interpersonaland business relationshipsas well as exchange ofinformation. All social,
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economic, political, cultural,trade and commercialactivities are undertakenusing telecommunication.One important service in aneconomy is
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telecommunication. Thenature of a country’stelecommunicationindustry affects its pace ofcommercial and domesticactivities. Due to the poor
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performance of many ofthese telecommunicationfirms, particularly in thedeveloping countries,governments have had tointervene.
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It is well known that it costsmore for organizations toattract new customerscompared to retainingexisting ones (Hsieh, 2009).Also, the role 80/20
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indicates that you make aneighty percent benefit froma twenty percent customer(Galitsky, & de la Rosa,2011). With this in mind,information technologies
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(IT) can be used toestablish strong andprofitable long-termrelationships withcustomers.
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(Babu, & Kumar, 2010;Agrawal, & Berg, 2009;Hsieh, 2009). This meansthat by creating long-termrelationship with loyalcustomers, you will ensure
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long-term success(Boohene, & Agyapong,2011; Kuusik, & Varblane,2009).
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Long- term relationshipscan be attained bydelivering the rightproducts and services tocustomers. The delivery ofthese products and services
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and the means used for thisdelivery are also important(Hsieh, 2009). Changing tocustomer-centric meansthat organizations mustbuild up ways of gathering
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data about customers andobtain the needed tools tosatisfy the desires of theircustomers (Mendoza et al.,2007). Customers'preferences and
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perceptions are changing(Agrawal, & Berg, 2009);and customers are the oneswho initiate transactions(Babu, & Kumar, 2010).Customers' awareness
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increased due to severalfactors including ITdevelopment andboundless competitionfrom all around the world(Kuusik, & Varblane, 2009).
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CRM becomes more andmore important toorganizations with fiercecompetition overcustomers (Mendoza et al.,2007). CRM helps
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organizations understandtheir customers'requirements, and it isconsidered a tool forimproving the competitiveadvantage (Lin et al, 2010;
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Agrawal, & Berg, 2009) andto enhance innovationcapabilities (Lin et al.,2010). CRM also helpsorganizations become moreeffective and efficient when
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dealing with customers(Beldi et al., 2010). WithCRM, organizations canincrease profitability andalso boost customer loyalty
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and satisfaction (Pezeshkiet al., 2009).Nowadays, technologyprovides businesses withsystems that can help
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companies track customerinteraction with firms andallow employees to quicklyretrieve all informationabout the customers. Thisconcept is called a
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customer relationshipmanagement (CRM) systemand if used properly, itcould enhance a company’sability to achieve theultimate goal of retaining
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customers and so gain astrategic advantage over itscompetitors.
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Literature ReviewCustomer loyalty has beenfound in literature to be acompetitive tool for manycompanies. This is even
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much more pronounced intoday’s highly globalised,industrialized andcompetitive markets. Thegrowth and survival ofcompanies depend on how
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loyal their customers are ofwhich telecommunicationis no exception. Variousstudies have been carriedout in the developedcountries regarding
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customer loyalty (Ndubusiet al, 2007; Khatibi et al.,2002; Uncles et al 2003).However, only few studieshave been carried out inthis area in the developing
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world, especially in thetelecom sub-sector.Lack of practical tools andmethodologies, whichguarantee managers a
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better consideration ofcustomer needs andexpectations, can avoid themisuse of scarce availableresources.
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The concept of the vendors-customers relationships,named “relationshipmarketing”, has evolvedfrom the idea that there is avariety of customer
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relationships ranging fromtransactional to relationaldealings. Today, mostcompanies seek to createtotal or cumulativecustomer satisfaction as
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opposed to transaction-specific customersatisfaction. Customersatisfaction and the qualityof customer service areparticularly considered
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significant in buildingtrustworthy relationshipswith customers andretaining the competitiveadvantage. As a result,customer relationship
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management (CRM)systems and customerexperience management(CEM) have become a must-have set of tools andtechniques in the past
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decade. Sophisticatedorganizations worldwiderely on specialized CRMsoftware systems toaccumulate and analyze
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customer-focusedinformation.IT is an enabler forenhanced customerrelationships in various
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ways-- it gives firms theability to deploy strategiesby customizing individualcustomer relationshipsutilizing customerdatabases, interactive and
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mass customizationtechnologies (Verhoef andDonkers, 2001).CRM was principallyevolved by marketing
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(Kotler, 1997) and wasstarted by a deep analysisof consumer behavior. Asthe concept of CRMmatures, CRM definitionsalso change to reflect
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evolutions to CRM. Some ofCRM definitions come fromtechnological perspectivewhile others come frombusiness perspective.
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CRM from BusinessPerspectiveCRM refers to activities thatmanufacturers practice forunderstanding customer
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demands and improvingcustomer satisfaction(Aggarwal, 1997). CRMinvolves acquisition,analysis and use ofknowledge about
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customers in order to sellmore goods or services andto do it more efficiently.Oracle Corporation on theother hand refers to CRM asabout knowing your
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customers better andeffectively using thatknowledge to own theirtotal experience with yourbusiness and to driverevenue growth and
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profitability. Others definesCRM as a managementapproach that involvesidentifying, attracting,developing and maintainingsuccessful customer
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relationships over time inorder to increase retentionof profitable customers(Bradshaw and Brash,2001; Massey et al., 2001).Also, Sin et al. (2005) refers
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to CRM as utilizingextensive strategies andengineering to find, obtainand cultivate advantagedcustomers, and hencemaintain long-term
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partnerships. Likewise,CRM is defined as aprocess/application thatpermits organizations togather and analyzecustomer data rapidly
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while seeking to improvecustomer loyalty viatargeted products andservices (Rigby et al.,2002).Similarly, Swift(2001) defines it as a
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process designed to collectdata related to customers,to grasp features ofcustomers and to applythose features in particularmarketing activities.
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Winer (2001) considersCRM a set of strategies andtools aimed at retainingcustomers over timeinstead of attracting newones. It needs some basic
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components, from adatabase to basic analysesto be developed on it, fromdecisions about customers.In fact, he considered thatone of the research
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priorities in the CRM field isthe development of metricsthat enable the managers toknow to what extent CRMprograms are working.However, Bose, (2002)
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refers to CRM as to involveacquisition, analysis anduse of knowledge aboutcustomers in order to sellmore goods or services andto do it more effectively,
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and CRM as a revolvingprocess in which firmsinteract with theircustomers therebygenerating, aggregating andanalyzing customer data
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and employing the resultsfor service and marketingactivities (Schoder andMadeja, 2004).
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In marketing literature,CRM has been placed in theoverall context ofmarketing thought andespecially that ofrelationship marketing
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strategies as “an ongoingprocess that involves thedevelopment andleveraging of marketintelligence for the purposeof building and maintaining
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a profit-maximizingportfolio of customerrelationships” (Zablah et al.,2004).
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While technology is a keyenabler, it is only a meansto an end and most authorsview CRM as a combinationof strategy and informationsystems focusing
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companys' attention oncustomers in order to servethem better (Chan, 2005).CRM is aimed at unifyingthe potential of relationship
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marketing strategies and ITto create profitable, long-term relationships withcustomers and other keystakeholders. Furthermore,CRM provides enhanced
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opportunities to use dataand information tounderstand customers andcorrelation value withthem. This requires a cross-functional integration of
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processes, people,operations and marketingcapabilities that is enabledthrough information,technology andapplications (Payne and
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Frow, 2005).Others sawCRM as a complex set ofinteractive processes thataims to achieve anoptimum balance betweencorporate investments and
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fulfilling customer needs inorder to generatemaximum profit. (Ragnar,Lutz and Walter, 2007)
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Strategically, CRM viewscustomer relationships asan investment that willcontribute to theenterprise’s bottom line.Customer relationships’
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design and managementare aimed at strengtheningan enterprise’s competitiveposition by increasingcustomers loyalty. Whilethis extends beyond the use
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of IT, IT is still an importantenabler of modern CRM(Ragnar,et al, 2007).CRM as a philosophy:authors taking up this
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approach consider CRM tobe a complex strategyinvolving all the corporateorganizing structure inorder to strengthen therelationship with the client;
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they avoid considering CRMonly as an instrument ofdata collection. So, they allagree that CRM is acorporate strategy and asystematic approach based
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on relational marketingthat has the aim to selectand manage clients in orderto optimize their value inthe long run and to,consequently, maximize
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value creation for theenterprise (Valsecchi andRangone, 2007).
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CRM from TechnologicalPerspectiveCRM can be interpreted asan integration oftechnologies and business
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processes used to satisfythe needs of a customerduring any giveninteraction. Also, CRM isbasically an enterprise-wide integration of
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technologies workingtogether such as datawarehouse, web site andintranet/extranet, phonesupport systems,accounting, sales,
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marketing and production(Bose, 2002). Nguyen et al.(2007) interpreted CRM asa process of digitizing astaff’s knowledge abouttheir customers.
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Precise customer data is anessential input to successfulCRM performance (Abbottet al., 2001) and, therefore,technology plays animportant role in CRM in
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adding to organizationintelligence (Boyle, 2004).In fact, amazing advancesin IT provide organizationswith the tools to collect,store, analyze and share
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customer information inways that greatly improvetheir capability to respondto the needs of individualcustomers and hence toattract and retain
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customers (Butler, 2000).The approach of one-to-onerelationships, customer-value analysis and masscustomization (Hart, 1995)are now part of the reality
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through unparalleledadvances in IT,transforming thetraditional approach toCRM to an integrated web-enabled approach,
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equipped by tools such ascustomer informationsystems, automation ofcustomer supportprocesses and call centers(Ghodeswar, 2001). CRM
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calls for “information-intensive strategies” whichutilize computertechnologies in establishingrelationships, improvingexisting technology and
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thoroughly linkingtechnology positioning todesired business initiatives(Harding et al. 2004).Computer technologiessuch as computer-aided
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design/manufacturing,flexible manufacturingsystems, just-in-timeproduction databases, datawarehouses, data miningand CRM software systems
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enable organizations todeliver greatercustomization with betterquality at lower cost. It alsohelps staff at all contactpoints serve customers
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better. Many customer-centric activities would beimpossible withoutappropriate technology(Leo, 2005).
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TelecommunicationsSector in Saudi ArabiaMobile communicationsmarkets can be divided bythe type of services
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provided and by thetelecommunicationsnetworks used for`production into the sub-markets for cellularradiotelephony, paging,
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trunked mobile radioaccess and satellite servicesand networks (Gerpott,1998, Knauer, 1998).
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Saudi Arabiantelecommunications sectoris considered one of thebiggest in the Middle Eastand North Africa (MENA)region. Saudi Arabia has
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four mobiletelecommunicationcompanies. They are, SaudiTelecommunicationCompany (STC), Mobily,Zain and Bravo. Saudi
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ArabiaTelecommunicationsReport (2011), publishedby Business MonitorInternational, shows thatthe number of mobile
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phone subscribers in 2008was 35,593,000subscriptions, compared to44,800,000 subscriptions in2009. The report alsoforecasts the number of
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mobile subscriptions forthe next five years, where itis expected to reach around60,349,000 subscriptions in2015. The report alsoprovides the market share
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of each mobile company inthe Kingdom. STC's marketshare for the 3rd quarter of2010 is around 43%,Mobily's share is 41%, Zainwith market share of
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around 15%, and Bravoonly contributes with 5% tothe Saudi mobile marketshare.
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The telecom market inSaudi Arabia is growingrapidly. In fact, mobilecompanies’ revenues havebeen increasing as acumulative average rate of
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15% annually, growingfrom SR 19.8 billion (US$5.28 billion) in 2001 to SR52.5 billion (US $14 billion)in 2009. Mobile servicesrevenues represent about
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77% of the total telecommarket revenues in SaudiArabia.
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HistorySaudi Arabia privatizedtelecom section in 1998.Then later in 2001, Saudigovernment, in preparation
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for opening the telecommarket for competition,established the regulationauthority for the telecomsector market and called itCommunication and
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Information TechnologyCommission (CITC). SaudiArabia opened its telecommarket for competition in2005. The second mobiletelecom service provider,
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Etihad Etisalat (Mobily),was licensed to work inSaudi Arabia. Two yearslater, the third mobilecompany Zain was licensed.Telecom section in Saudi
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Arabia consists of threedistinctive services: fixedtelephone service, mobilephone service and internetservices.
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Mobile SectorMobile customers havegrown from less than 20million customers in 2005to 42 million customers in
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2009 representing a 43%annual growth. In 2007only (when the 3rd mobileservice started), a total of8.72 million customerswere added to the market
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which represents thelargest growth in one yearthroughout Saudi telecomhistory. The total numberof mobile subscriptionsgrew to around 53.3 million
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by end of Q1 2011, withpenetration stood at 191%.Prepaid subscriptionsconstitute the majority(87%) of all mobilesubscriptions, in line with
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the trend in other similarmarkets around the world.(CITC 2011)
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Fixed Line SectorFixed telephone lines havegrown on a steady basisfrom 3.2 million lines in2001 to 4.52 million in
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2011 in which 3.34 millionlines (73 %) are residentiallines. This represents ahousehold teledensity ofaround 67%, while thepopulation teledensity is
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around 15.9% or 159telephone lines for every1000 inhabitants. (CITC2011)
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Internet ServicesOn the other hand, internetusers in Saudi Arabia haveincreased from just 1million in 2001 to nearly 13
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million in 2011. Thisrepresents a cumulativeaverage growth rate ofabout 33% per year.Internet penetration isestimated at 46% of
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population in 2011. Thisrapid growth of the numberof users is attributed todramatic declining incomputer prices, internetaccess prices in addition to
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increased awareness of thepublic and the increase oflocal contents in Arabiclanguage and theavailability of eServices
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such as E-Banking. (CITC2011).
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Broadband Service
A. Fixed Broadbandsubscriptions including the(DSL) subscriptions, FixedWireless (Wimax)
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subscriptions and otherfixed lines have grown toaround 2.13 millionssubscriptions at the end of9M 2011. The FixedBroadband penetration
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rate stood at around 30.6 %of household at the end of9M 2011.The liberalization of thetelecom sector and the
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resulting competition in themarket has led toremarkable benefits for theSaudi economy at large andfor the consumers inparticular, such as better
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quality services, improvedcustomer care, moreconsumer choices andlower prices. While the costof living index continued torise in the last few years
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due to increased prices ofmost of its components, theprices progressivelydecreased (CITC 2011).
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B. Mobile Broadband Thetotal subscriptions tomobile broadband reached11.5 million at the end of9M 2011, representing apenetration of 40.5% of the
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population. The mobilebroadband marketcontinues to gainmomentum in the Kingdomand is becoming anincreasingly exciting
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market. One of the keyreasons for this growth isthe fact that due tocompetition and the hugeexpansion of the smartphones which enable
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customers for varieties ofdata packages. Becomingeasier to access via mobiledevices such as smartphones, mobile networksare also improving as 3.5G
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(HSPA) continues to bedeployed and wirelessbroadband technologies(4G) emerge over the nextfew years. (CITC 2011).
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Improving CustomerServices in Saudi MarketSince the start ofcompetition in 2005,customers of telecom
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services in Saudi noticedgreat improvement in thelevel of services providedby Saudi Telecom Company(STC). STC also workedhard to improve its
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customer services level tocompete in the market.Because STC inherited mostof its employees from thegovernmental sector, it wasvery challenging to change
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its culture from agovernment style to aprofit- orientedorganization. The companyhad to go over severalstrategic shifts to
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incorporate customersatisfaction into its internalculture. Yet, our studyshows that there is more todo to improve customersatisfaction.
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Research Methodology
SampleA questionnaire wasdistributed to 600
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individuals and alsopublished online. For thehard copy questionnaire, acover letter explaining thepurpose of the study wasenclosed. For the online
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version, the letter wasplaced in the first page ofthe questionnaire. Out ofthe distributed ones, 90were received; 80 of thembeing usable in addition to
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361 completed onlinesurveys out of 480 onlineattempts. The total numberof usable questionnaires foranalysis is 441 surveys.
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Data CollectionWe accept the fact that notall relevant variables can bestudied simultaneouslyand/or controlled precisely.
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We also understand thatour assumption may allowus to notice some relevanceand may also prevent usfrom noticing others.
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In order to confirm thatselected variables for thisstudy are relevant torespondents (mobiletelecom customers in SaudiArabia), a pilot study has
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been conducted beforefinalizing the questionnaire.The final developedquestionnaire is dividedinto four parts. The first
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part contains demographicquestions such as gender,age and education level.The second part containsgeneral information aboutrespondent’s mobile
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service usage. The thirdpart measures respondent’susage and satisfactionabout mobile services aswell as customer servicechannels. The last part
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assesses overall customersatisfaction and loyalty.Some of these variables areselected from previousstudies.
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The constructs in thequestionnaire use a fivepoint Likert-type scalewhere 1=strongly agree,and 5 strongly disagree.
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Reliability AnalysisThe construct is testedagainst the scale reliabilityfunction on SPSS 19.0 usingthe Cronbach’s Alpha in
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order to evaluate theinternal consistency of thestudies constructs.Cronbach’s Alphacoefficient value for thefirst construct is 0.898 and
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for the second construct is0.806. Both valuesexceeded 0.7 suggested byNunnally (1975). Thecoefficient values suggestthat both constructs are
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internally consistent andreliable.
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Research Variables
Customer SatisfactionConstruct
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a) IndependentVariablesTo compute the firstindependent variable,respondents were asked to
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express their opinion onthe following factors usinga five point scale:• The ease and speed ofgetting connected to the
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support phone operator(X1).• The level of operatorattitude (X2).
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• Knowledge of operator(X3).• The speed of operator inproviding problemsolution (X4).
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• The follow up action onunresolved problems(X5).• The ease of sitenavigation (X6).
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• The responsiveness ofweb site (X7).• The site availability andproblem free (X8).
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• The ease and speed ofreaching one of officecustomer support staff(X9).
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• Knowledge of officesupport staff(X10).• How good the office staffin following up problems
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that need further action(X11).• How serious andprofessional the service
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provider is in handlingcomplaints (X12).• Responsiveness of theservice provider tocomplaints (X13).
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• Speed of resolvingreportedissues/problems (X14).• Overall staff goodknowledge about
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reportedissues/problems (X15).An aggregate score forperceived service qualitywas computed from the
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above 15 factors andlabeled as XServQual forconsequent analysts.
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b) Dependent VariableThe dependent variable ofthis construct is overallsatisfaction with mobileservice provider.
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Customer LoyaltyConstruct
a) IndependentVariables
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• Overall satisfaction withcustomer call center (X1).• Overall satisfaction withcustomer service Office(X2).
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• How service providerstrives to gain highcustomer satisfaction(X3)
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• Overall satisfaction withthis service provider (X4)An aggregate score forcustomer satisfaction wascomputed based on the
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above 4factors and labeledas XOverallSatis forconsequent analysts.
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b) Dependent VariableThe dependent variable ofthis construct is customerloyalty to their mobileservice provider.
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Research Results andDiscussion
In this part of the analysis,we discuss demographic
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information of therespondents. Table no. 1shows that about 89.3% aremales. Ages ranged frombelow 18 to 64 years where40% are between 25 and
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34 years old and 39% arebetween 18-24 years old.14% of participants’ agesare between 35 and 44years old. From educationalperspective, more than
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66% of participants hold BSdegree. 16% hold highereducation degree and15.9% hold high schooldegree. On the other hand,
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90% of participants areSaudi citizens.
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Table 1: DemographicDetails
Please See Table 1 in FullPDF Version
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Participant’s MobileCarrier DistributionAs detailed in table 2,among participants, 61%are customers of Saudi
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Telecom Company,whereas 32.8% are Mobilycustomers. Zain customersare estimated at 6.12% ofparticipants. Thisdistribution suggests that
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STC serves about 61% ofmobile customers in SaudiArabia, Mobily serves about33% of customers in SaudiArabia and Zain serves therest. From plan type
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perspective, among STCparticipated customers,77.3% are postpaid plancustomers and the rest areprepaid plan customers.Mobile customers in
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contrast consist of 72.4%postpaid customers and therest are prepaid. As to Zaincustomers, there are 52%postpaid while 48% areprepaid. Telecom
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companies regard postpaidcustomers as long-termrelationship customers,whereas prepaid customersas short term ones.However, prepaid
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customers yield highestprofits due to the nature ofprepaid plan prices wherethey tend to be moreexpensive with expirydates. Companies fight to
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attract postpaid customersas they provide stable andpredictable income sourcefor companies. On the otherhand, Communications andInformation Technology
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Commission (IITC) - Saudicommunications authority-allows customers totransfer their mobileservice numbers to any ofthe two mobile telecom
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companies in the SaudiMarket. It is worthmentioning that the surveyshows that customers torecent establishedcompanies have prepaid
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plans compared to well-established companies. Forinstance, 77.3% of STCcustomers whoparticipated in the survey
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were postpaid compared to51.9% of Zain customers.
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Table 2: Participant’sMobile Carriers
Please See Table 2 in FullPDF Version
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Participants GeographicalDistributionSurvey participants aredistributed across majorSaudi Arabian regions.
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Table 3 shows about 47%per cent are from centralregion where countrycapital, Riyadh, is situated.40% are from easternregion and 7.5% from the
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western region. The rest isdifferent places includingpeople currently out ofSaudi Arabia such asstudents.
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Table 3: ParticipantsGeographicalDistribution
Please See Table 3 in FullPDF Version
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Customers Preference ofService Channels Providedby Mobile CompaniesTable 4 shows customer’spreferences of available
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channels to requestservices and/or modifyservices. More than70% ofcustomers across the entiremobile companies callcompany operator for
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service- related issues orrequests. Also, 40% of STCcustomers, 44% of Mobilycustomers and only 14% ofZain customers call into theautomated service to get
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desired service. About 41%of STC customers, 44% ofMobily customers and 48%of Zain customers usecompany web site to getdesired service.
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Percentages of customersusing different channels arequite similar across allcompanies except in Zainself-service.
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Table 4: CustomersLoyalty and Satisfaction
Please See Table 4 in FullPDF Version
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Mobile CompaniesPerformanceAs seen in our study,providing quality customerservice leads to customer
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satisfaction. Satisfaction inturn leads to customerloyalty. In other words,quality customer serviceleads to customer loyaltyand hopefully customer
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retention. CustomerRelationship Management(CRM) plays a vital role ininteracting with customers.Ten questions are includedto measure customers’
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satisfaction and loyalty. Thefollowing table shows theaverage rates for eachcompany from customersatisfaction and loyaltyperspectives. Table 4 shows
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customer satisfaction andcustomer loyalty for thethree mobile telecomcompanies in Saudi Arabia.Numbers are generated byassigning a 5 scale
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measure-- 5 for stronglyagree, 4 for agree, 3 forneutral, 2 for disagree and1 for strongly disagree. Allcustomer evaluation scoresare added together for each
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factor and then divided bythe number of participantsof each company to getaverage customerresponses for eachcompany. Standard
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deviation is calculated forboth indicators and all havereasonable variation.Mobily, for instance, scoresa higher average customersatisfaction rate (3.52 out
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of 5) and also a highcustomer loyalty rate aswell (3.4 out of 5). Zaincomes in the secondposition with 3.8 out of 5for customer satisfaction
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and 3.23 out of 5 forcustomer loyalty. STCcomes in the last positionwith 2.66 out of 5 forcustomer satisfaction and
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2.41 out of 5 for customerloyalty.To measure customerperception aboutcompanies CRM
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performance (table 5), wedeveloped a formula tocalculate average customerevaluation for CRMimplementation in eachmobile telecom company
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based on the last questionin our survey (How do youevaluate the overallcustomer relationshipmanagement carried out byyour mobile service
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provider?). This questionhas 3 choice-answer--excellent, fair and poor.Each of the threecompanies got 3 points foreach excellent rating, 2 for
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each fair rating and 1 foreach poor rating. We thenadded ratings for eachcompany and then dividedthe total points by thenumber of participants for
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each company andrepresented the ration inpercentage value in thetable. Standard deviation iscalculated to ensurereasonable variation. Also,
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table no. 5 showspercentages of customers’ratings for each mobiletelecom company. Forinstance, 50% of Mobilycustomers rated Mobily as
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excellent in CRM whereasonly 11.9% of STCcustomers rated it asexcellent in CRM.
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Table 5: CustomersOverall Rating for CRM
Please See Table 5 in FullPDF Version
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Conclusion
The results for this studyshow that perceived qualityof service for customerservice channels offered by
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mobile telecom companiesin Saudi Arabia yield themost influence to customersatisfaction. Furthermore,we have seen thatimprovement of such
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customer service providesthe highest customersatisfaction in return. CRMcertainly plays a major rolein providing requiredinformation to customers
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through phone in a timelymanner and helps to trackcustomer concerns tomaximize satisfactionlevels. Also, improvingcustomer services should
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lead to customer loyalty.Since customer loyalty isinfluenced by customersatisfaction variation, thereare other factors that mightaffect customer loyalty
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beyond customersatisfaction factor. Thismight be an interestingsubject to address infurther studies. A furtherstudy needs to be carried
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out to investigate rootcauses according to serviceprovider perspective suchas CRM implementation,internal processes andrelated factors. Also, it
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might be interesting to findout the reason why wouldMobily for instanceoutperform STC who hasbeen in the market formuch longer time and with
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much more capabilities andyet, in a few years Mobilywas able to capture aconsiderable percentage ofmarket share.
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ReferencesAbbott, J., Stone, M. &Buttle, F. (2001). “CustomerRelationship Managementin Practice – a Qualitative
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