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Impact Of Customer Relationship Management On Air Asia

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Customer relationship management has demonstrated a significant impact on the relationship development between customers and organization. There is a close connection between customers’ perceived relationship quality, satisfaction, and customer loyalty which could lead to organization profitability. The rapid advent of internet and the recognition to meet customer expectations effectively suggests the growing popularity of electronic customer relationship management (e-CRM) as an important business strategy to manage long term customer relationship. Many organizations are making the initiatives to use online channels to engage customers in their products or services.
It is estimated that 20.1 million of the total population of Malaysia are …show more content…

This strategy can also maximize the value to all AirAsia's key business relationships, understand the demands and travel patterns of customers, develop and reinforce a consistent experience for customers, improve management effectiveness, refine strategic planning, swift responsiveness to challenges, efficient allocation of resources as well as save overall cost. This new marketing strategy also provided a new perspective for AirAsia to build new customer relationship, retain existing ones and enhance their value with Air Asia. Customer loyalty can contribute to customer profitability (Clark 1997). Hence, it is imperative to investigate the influence of e-CRM on customer loyalty so that AirAsia can make more informed decision on the investment of e-CRM activities which will hopefully increase their profitability in the highly competitive market through establishing good customer …show more content…

• Does the perceived customer relationship quality affect the customer loyalty?

1.4 RESEARCH OBJECTIVE
• To investigate the relationship between the marketing efforts of electronic customer relationship management and perceived customer relationship quality.
• To investigate the relationship between perceived customer relationship quality and customer loyalty.

1.5 SIGNIFICANCE OF STUDY
• Reinforces and refines the body of knowledge E-CRM relating to customer loyalty in airlines industry.
• Provide information to management in decision making on whether or not to invest in various types of e-CRM marketing

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