Customer relationship management: examining the central proposition in the online context

This paper presents a summary of a doctoral dissertation investigating the application of customer relationship management (CRM) theory to the online context. The major finding of this study was to confirm that the central proposition of CRM theory is supported in the online context—that is, while the operational context influences the extent to which effective service enhances the relationships between a firm and its customers, and their resulting perceptions of customer loyalty; there is general support for a mediating relationship in which effective service will enhance the quality of the relationship between a firm and its customer, and increase loyalty perceptions from the customer. The study has also revealed that the service delivery channel has a significant and differential affect on the central proposition and the interactions of the key relationship marketing constructs. Perceptions of financial risk were not observed to significantly affect either service quality or relationship quality perceptions.