CONSEQUENCES OF CRM CAPABILITIES DIMENSIONS ON CUSTOMER SATISFACTION AND MARKET EFFECTIVENESS

In today’s business environment the main challenge for companies is gaining and maintaining a competitive advantage. A potential source of competitive advantage is customer relationship management (CRM) capabilities. The main contribution of this paper is that we proposed and tested a research model that includes one antecedent and two consequences of CRM capabilities dimensions - customer interaction management (CIM) capability, customer relationship upgrading (CRU) capability and customer win-back (CWB) capability. In this study, we use data from a sample of 102 firms acting in B2B and B2C settings in Romania to investigate how customer relationship orientation (CRO) influences the three dimensions of CRM capabilities, and furthermore, how these dimensions determine customer satisfaction and market effectiveness - two performance outcomes. Our results reveal that CRO has a direct effect on these CRM capabilities. Critically, we found that only CIM capability and CWB capability drives customer satisfaction, while market effectiveness is driven by CRU capability. This paper also discusses the implication of this study, presents managerial implications and the limitations of this research, and provides avenues for further research.