Mornay Roberts-Lombard

Customer retention through customer relationship management : the exploration of two-way communication and conflict handling

Organisations such as banks and short-term insurance organisations become more aware of the importance of customer relationship management (CRM) and its potential to help them acquire new customers, retain existing ones and maximise their lifetime value. A close relationship with customers will require a strong coordination between information technology (IT) and marketing departments to provide a long-term retention of selected customers. The primary objective of this study is to investigate the influence of selected independent variables, two-way communication and conflict handling on intentional customer loyalty via CRM as the intervening variable at a South African shortterm insurance organisation. Primary data were gathered using a questionnaire, with items referring to CRM, customer loyalty, two-way communication and conflict handling. The sample consisted of 254 customers in four major centres in South Africa. Data were factor-analysed. One independent variable, conflict handling exerted a statistically significant positive influence on the intervening variable (CRM), while two-way communication exerted a statistically significant negative influence on the intervening variable (CRM). The intervening variable (CRM) positively influenced the dependent variable (Customer Loyalty). If short-term insurance organisations communicate timeously and accurately, and are skilled in conflict handling, greater loyalty will be created among customers.

Validating the relationship between trust, commitment, economic and non-economic satisfaction in South African buyer-supplier relationships

Purpose The paper aims to validate the relationship between satisfaction, trust and commitment in South African business buyer–supplier relationships. Satisfaction was looked at from the dual perspective of economic and non-economic satisfaction. Design/methodology/approach A research model showing hypothesised relationships between the constructs was tested using data collected from 250 large companies in South Africa. Structural equation modelling using AMOS software was used to analyse the data. The results provide support for the distinctiveness of both economic and non-economic satisfaction and the mediating effect of trust. Findings The findings show that economic satisfaction exerts a direct influence on trust, which, in turn, has a direct influence on commitment. Trust and commitment were both found to have a positive influence on non-economic satisfaction. Research limitations/implications The tested nomological network of business relationship quality dimensions validates some of the recent findings by Ferro et al. (2016) in the South African context of buyer–supplier relationships. Originality/value The study contributes to a better understanding of satisfaction and its relationship with other relationship quality constructs, especially in the context of large companies in South Africa.

Customer Retention Strategies of Fast-Food Outlets in South Africa: A Focus on Kentucky Fried Chicken (KFC), Nando's, and Steers

The primary aim of the research was to critically analyze and evaluate the different customer retention strategies being implemented by fast-food outlets such as Kentucky Fried Chicken (KFC), Nandos, and Steers in South Africa. The fast-food industry in South Africa is experiencing numerous market-related changes, which range from intense globalization forces to heightening competition levels. The pressure on businesses today is further increased by a market where the customer acquisition rate is slowing, customer loyalty is decreasing, and sales cycles are lengthening. In such an environment, losing a valuable customer to a competitor can have a significant impact on profitability and growth. As a result, many companies have shifted their focus from customer acquisition to customer retention. The research was primarily concerned with assessing customer relationship management, relationship marketing, and communication through technology as strategies to maintain intimate relationships with customers. Personal interviews and in-depth interviews with the help of questionnaires were used to collect primary data in the research. The results indicated that KFC, Nandos, and Steers adopt similar marketing strategies or use the same concepts to manage their relationships with both internal and external customers and other stakeholders. These strategies and concepts include customer relationship management, relationship marketing, and technological means of communication.

Factors influencing Generation Y consumers’ perceptions of eWOM credibility: a study of the fast-food industry

Abstract eWOM communication is certainly one of the most influential drivers of purchase decisions. However, little knowledge is available on the factors that influence the trustworthiness and credibility of eWOM communication. To address this research gap, the study aimed to assess whether the three independent variables (homophily, authority and interestingness) have a significant positive indirect effect on eWOM credibility, as mediated by source trustworthiness. The context of the study was fast-food retailers. A cross-sectional survey was conducted and the target population included all Generation Y consumers that visited the fast-food market leaders in Gauteng province, the economic hub of South Africa. Lisrel version 8.8 was used to analyse the results obtained from a realised sample of 362 respondents and to compile the structural equation model. The findings of the study support the research hypotheses formulated and offer a theoretical contribution by enhancing knowledge of the relationships between the variables investigated as well as the factors that could influence eWOM credibility. The study also has meaning to fast-food retailers, as the model could be applied to formulate appropriate strategies and influence the online conversations and perceptions of consumers.

Exploring the relationship between trust, commitment and customer loyalty through the intervening role of customer relationship management (CRM)

The purpose of the study is to investigate customer relationship management (CRM) and its influence on customer loyalty at selected short-term insurance providers in the Gauteng province of South Africa. The target population included all South Africans who currently have a policy with at least one of the selected short-term insurance providers in the study. The convenience sampling method was applied, and a sample of 500 respondents was selected. An interview administered questionnaire was used for the gathering of data. The study indicated that a significant negative relationship existed between commitment and CRM. It was evident that no significant relationship existed between trust and CRM. The study also revealed that a strong positive relationship existed between CRM and customer loyalty at the four selected short-term insurance providers in South Africa. Strategies were also provided for ways in which the four selected short-term insurance providers can maintain and improve their relationships with their customers in order to encourage loyalty, and therefore increase profitability.

Embedding the ethos of codes of ethics into corporate South Africa: current status

Purpose This study aims to examine and describe ways that organisations in corporate South Africa try to embed ethos of corporate codes of ethics in their organisations. Design/methodology/approach The study followed a quantitative research approach. The target population was the top 500 companies operating in the corporate sector by revenue. Data were collected using a structured questionnaire from 222 company secretaries and heads/managers responsible for ethics in the companies. Findings The findings show that the majority of companies have regulations that can help promote ethics ethos. The most prevalent artefact in the area of regulation was found to be conduct of ethical audits. Training was found to be the most prevalent artefact under staff support. Research limitations/implications The study was limited to large organisations in South Africa. The findings can thus not be generalised to include small- and medium- sized businesses which make up the largest segment of all businesses in South Africa. Practical implications The research provides information that can be used to compare companies operating in different contexts on practices that help promote corporate ethics quality. It provides business managers with information that they can use to evaluate and benchmark their companies on practices that help promote the ethos of corporate codes of ethics. Originality/value The study is the first of its kind to examine how organisations go about institutionalising codes of ethics in South Africa. The findings can be used by all sectors of South African business as a point of reference in their efforts aimed at embedding the ethos of ethics in their respective organisations.

The relationship between selected vaiables and customer loyalty within the banking environment of an emerging economy

Abstract The aim of this study is to investigate the influence of two-way communication and conflict handling on perceived customer loyalty in the South African banking environment. The study was quantitative and descriptive in nature. Primary data was gathered using a closed-ended questionnaire. The sample consisted of 285 respondents. The statistical analysis that was used in the study included descriptive statistics and multiple regression analysis to test the hypotheses. Both, two-way communication and conflict handling, exerted a positive relationship on customer loyalty. It is, therefore, imperative for South African banks to listen to their customers, provide accurate information and ensure conflicting situations are resolved effectively.

The Influence of Perceived Justice on Recovery Satisfaction in the Airline Industry

ABSTRACT This study examines the influence of perceived justice on customer satisfaction with service recovery and on the future behavioral intentions of customers in the airline industry. The study uses an exploratory research design that is quantitative in nature. Questionnaires were used to collect data, and structural equation modeling was used for hypothesis testing. The study revealed that the three dimensions of perceived justice, namely interactional, distributive and procedural justice, influence satisfaction with service recovery in the South African airline industry. However, only interactional and distributive justice had a positive influence on future behavioral intention.

Customer satisfaction/delight and behavioural intentions of cell phone network customers – an emerging market perspective

This study aims to investigate the extent to which the satisfaction/delight experienced by customers of cell phone network service providers is influenced by their perceptions of the networks’ employee service delivery skills and the value that the customers derive from the networks’ offerings. In turn, the influence of the extent of their satisfaction/delight on future behavioural intention (BI) is determined.,A descripto-explanatory research design is followed and data are collected from satisfied/delighted cell phone network service provider customers using self-administered questionnaires. A total of 593 responses were suitable for analysis. An exploratory factor analysis is used to uncover the interrelationships between the items measuring the study’s constructs. Furthermore, the measurement and structural models are assessed.,Perceived employee service delivery skills (PESDS) and value significantly and positively influence customer satisfaction/delight experiences, whereas customer satisfaction/delight experiences significantly and positively influence their BIs.,The model tested confirms the hypothesised relationships between PESDS, perceived value, customer satisfaction/delight experiences and BIs of cell phone network customers. Customer satisfaction/delight experiences are linked to their two antecedents (PESDS and value) and their outcome, BI.,The findings assist cell phone network service providers in understanding how PESDS and value can foster customer delight, ultimately leading to positive BIs from customers.,This study focuses only on satisfied customers and determines the interrelationships of the extent to which they encounter customer satisfaction/delight experiences and related constructs. Few research studies, however, have examined how customer satisfaction/delight experiences relate to its antecedents and outcome.

E-service usage and satisfaction in Botswana

Purpose The purpose of this paper is to establish the level of usage of e-services (websites and e-mail) by Botswana Public Officers Medical Aid Scheme (BPOMAS) and PULA Medical Aid (PULA) customers; the level of satisfaction; perceived value; and benefits derived from the website and e-mail services. Design/methodology/approach In total, 200 BPOMAS members and 100 PULA members were sampled. Systematic sampling technique was used to select the participants. A questionnaire mainly guided by the E-S-QUAL and E-RecS-QUAL scales was designed to gain an in-depth understanding of customers’ perceptions and experiences of e-service quality. Findings It was established that there is a positive and significant relationship between the usage of e-services and benefits derived from e-services and between the usage of e-services and satisfaction. In addition, a nexus of relationship was observed between perceived value of the e-services and satisfaction. Research limitations/implications The management of healthcare services in Botswana needs to understand customers’ value perceptions of e-services and e-service quality in order to establish where to make the most of their efforts. Practical implications The managers of healthcare insurance providers should consider stepping up e-service usage and satisfaction levels, supported by client-centred training programmes, to assist clinicians deliver care to the expectation of patients. Originality/value There is an acute lack of research in the Botswana context, particularly into the link between e-service usage and satisfaction in the health insurance industry. This paper contributes to the extant literature by elucidating the nexus of relationship between e-service usage and satisfaction in Botswana.