The purpose of this paper is to investigate the mediating role of customer satisfaction (CS) in the electronic-customer relationship management (e-CRM) and customer’s loyalty (CL) relationship, using data from the customers of one of the largest retail banks in Kenya.
Using survey mode, the study was administered to 90 samples (of which 78 were returned and usable), with data analysed using exploratory factor analysis to determine scale validity, and path analysis and multiple regression modelling to test hypotheses.
This study revealed that the interaction between e-CRM transaction features and CS was statistically significant and predicted CL, however, the interaction did not significantly account for more variance than just e-CRM features and CS. The path analysis revealed a lack of potential significant mediation effects of CS on the relationship between e-CRM and CL.
Although this research may have sampling limitations and also that the model fit is confined in a single bank/service industry, the estimated model was reasonable enough and has the potential of being repeated in future studies.
The principle contribution of the present research is it supplies unique learning to bank managers and scholars alike through conceptualising and subsequently empirically verifying the path e-CRM and e-loyalty via CS, and that CS does not mediate the relationship between the aforementioned constructs. By investigating the e-CRM practices of an existing case study, it provides insights of the issue and compare to literature, therefore supplying a thorough and detailed analysis to understand the phenomenon under investigation valuable for banking sector.
