Volume-8, Number - 2  
Month: July - December, 2011

Intervention of Relationship Inertia and Switching Cost on CRM Dimensional Performance
Arup Kumar Baksi
Bengal Institute of Technology & Management, Santiniketan-WB

Page No. 133

Purpose/Aim : Growing penetration and investment behind Customer Relationship Management (CRM) in financial services has increased the strategic as well as managerial significance to assess its impact on consumer retention parameters. The purpose of this paper is to propose and justify a Customer Satisfaction - Customer Retention Model in a CRM ecosystem with an insight into the probable impact of moderating variables namely relationship inertia and switching cost.

Methodology/Approach : The study was carried out on the State Bank of India involving certain specific branches in southern part of West Bengal, India. Multivariate Statistical Procedures were applied which included a Double Regression Analysis and Exploratory & Confirmatory Factor Analysis followed by Structural Equation Modeling to justify the factor constructs of the proposed model.

Findings/Conclusion: The study revealed a positive link between CRM performance, Customer Satisfaction and Retention with relationship inertia and perceived switching costs significantly influencing the link between the three major variables.