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International Review of Management and
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International Review of Management and Marketing, 2019, 9(4), 39-46.
International Review of Management and Marketing | Vol 9 • Issue 4 • 2019 39
The Impact of Consumer Buying Behavior on Customer
Relationship Management in the Banking Sector
Mohannad A. M. Abu Daqar1*, Ahmad K. A. Smoudy²
¹Department of Management and Business Administration, Doctoral School of Management and Business Administration,
Szent István University, Hungary, 2100, Pater Karoly Utca 1, Gödöllő, Hungary, ²Department of Business Administration, Palestine.
*Email: Mohannad.Abu.Daqar@phd.uni-szie.hu
Received: 09 May 2019 Accepted: 26 June 2019 DOI: https://doi.org/10.32479/irmm.8151
ABSTRACT
The main aim of this study is to investigate the impact of customer relationship management (CRM) on consumer buying behavior. The researcher used
primary data through a close-ended structured survey were distributed at banks customers in Palestine, and the second source of data is the interviews
with selective banks top management in Palestine who is dealing with CRM. The results of this research work revealed that there is a positive strong
relationship between CRM and consumer buying behavior. Consumer buying behavior explained 75.75% of the variance (R² = 0.7575, F (1,98) =
375,703, P < 0.05). The researchers found that consumers buying behavior signicantly predicted CRM. Moreover, integrated marketing communication
tools have no signicant impact on consumers buying decisions, sales promotion is the most important tool that has a consensus from the respondents
that it affects their decisions. The study recommends banks to update their CRM systems to obtain the most recent data about their customers along
with adopting the last cutting-edge technologies used in CRM systems to better analyzing the customers’ data. Furthermore, researches advice banks
to have better views about the benets of successful CRM systems within the same industry in order to obtain a comprehensive and precise system that
could gain more benets for customers in one hand, and on the other hand gain more prots for the banks by retaining the protable loyal customers.
Keywords: Customer Relationship Management, Consumer Buying Behavior, Integrated Marketing Communication
JEL Classications: M30, M31, G21
1. INTRODUCTION
A lot of studies of customer relationship management (CRM)
have been studied in order to observe its programs, how it affects
loyalty and satisfaction, how it acts as a marketing strategy and
whether it has a relationship with consumer behavior or not. Thus,
the purpose of this study is to add to the previous studies of how
CRM is related to consumer behavior.
CRM is “practices, strategies, technologies and a marketing
tool that the banks in Palestine use to manage and analyze
their customer’s interactions and data throughout the customer
lifecycle.” (Iriqat and Daqar, 2017a). While Adalikwu and
Adalikwu (2013) define CRM as a strategy that focuses on
customer behavior, which would help organizations to emerge
speedily and maintain customers in a highly competitive market
environment. Through these studies; customer behavior is one of
the main pillars that affect their CRM systems in order to meet
the customers’ needs and expectations.
On the other hand, Ekhlassi et al. (2012) used Swift (2001)
denition of CRM as an “organizational approach to understanding
and influencing on customer behavior through a meaningful
relationship in order to improve customer acquisition, retention,
loyalty and protability processes.” They reveal that CRM divided
into three main stages, which have the same concept of the customer
relationship life cycle stages mentioned above, as follows:
• Customer acquisition identifies potential customers and
builds awareness for a brand with short-term prots, requires
different marketing selling, in order to attract new customers.
This Journal is licensed under a Creative Commons Attribution 4.0 International License
Daqar and Smoudy: The Impact of Consumer Buying Behavior on Customer Relationship Management in the Banking Sector
International Review of Management and Marketing | Vol 9 • Issue 4 • 2019
40
• Customer retention: aims for a long-term relationship with
repeat purchases and high protability, uses customer service,
direct marketing, and personal selling, as communication tools
to retain customers.
• Customer development: seeks to sell more products to existing
consumers, the best marketing communication tools are
events, packaging and sales promotion.
2. LITERATURE REVIEW
2.1. CRM
Ck (2015) used both quantitative and qualitative methods with
exploratory and descriptive studies to observe the link between
CRM and customer retention. This study noticed that one of the
advantages of CRM that it helps to know the wants of its customer
to provide them with the right service and time. Thus, it helps to
build a future relationship. Moreover, they used Baran and Galka
(2013) denition of CRM as a marketing strategy that focuses on
understanding the needs and purchasing behavior of its customers
by managing customer experiences in order to strengthen the
relationship between a company and its customers.
Thirunavukkarasu (2016) used Grönroos (2000) customer
relationship life cycle, which explains the development of
customers relations in form of a life cycle, segmented into three
stages, as follows:
• The initial stage: Includes potential customers who do not
know about the products or services of a company.
• The purchasing process introduces a contact with the company
and tries to put some expectations.
• The consumption process: During this stage, the customer
takes action and consumes products or services.
During this process the customer will bring judgments; if
customers are satised, they will repeat purchases and a customer
relationship will continue over the consumption process. As a
result, customer loyalty will exist.
Thirunavukkarasu (2016) considered Buttle and Maklan
(2015) types of CRM, which are classied into three types:
operational, strategic, and analytical, in order to know how to
deal with each stage of the life cycle. The rst type aims to
retain and win protable customers by following a customer-
centric business strategy. The second type focuses on customer-
facing business that uses customer-related data in order to
process marketing and customer services. While the nal type
transforms customer-related data into an implemented process
that enhances the effectiveness of the relationship between
both parties.
According to Srisamran and Ractham (2014) CRM could help
rms to know their customers and the type of CRM to build
strong relationships with them over a long period. To do so,
customer knowledge is required to acquire and manage. Thus,
organizations should be customer-focused. The creation of
knowledge helps the organization to improve their performance
by responding to customer’s needs at the right time with the
best quality.
Customer knowledge could be categorized into three types
according to Gebert et al. (2003) that Srisamran and Ractham
(2014) have used, as follows: Knowledge for customers; used to
transfer knowledge about products or services for customer in
order to satisfy their needs and wants. Knowledge about customers;
used to learn and acquire details about customers, their behavior,
lifestyle and other information as well to help them nd what they
want. Knowledge from customers; could be gathered through the
interaction process about products, services, market, etc., for future
improvement (Alavi and Leidner, 2001).
2.2. Relationship Marketing and Integrated Marketing
Communication (IMC)
Ekhlassi et al. (2012) study the suitable media for each
customer relationship stage (customer acquisition, retention, and
development) and found that communication was the key success
to every relationship. They used Duncan and Ouwersloot (2008)
concept of customer acquisition, in which new companies and
products should focus their marketing efforts, that is gained by
IMC and advertising, on customer acquisitions, in order to build
awareness. In conclusion, companies tend to replace traditional
marketing communication tools into the use of the Internet as a
communication tool with their customers.
Ck (2015) stated in his study that companies should shift their
marketing functions from product to customer base because people
are becoming less loyal and more conscious about the importance
of being valued. Personal marketing aims to bring the right product
to the right customer. Ck (2015) used Patel (2007) denition of
marketingmanship as “one of the skills used in personal marketing;
it is a direct, face-to-face, marketing-to-buyer inuence, which can
communicate the facts necessary for making a buying decision;
or it, can utilize the psychology of inuence to encourage the
formation of a buying decision.”
Abtin and Pouramiri (2016) reveal a concept called integrated
customer relationship management; it defines and creates
interaction with targeted consumers, it puts together all marketing
functions to establish solid relations with customers to determine
the types of relationships based on their needs and wants. Mihart
(2012) stated that the main role of marketing is to satisfy consumers
wants and not to sell what a company produces. Therefore, it is
necessary to learn about consumers’ behaviors and how marketing
mix elements could affect consumers’ decisions. The main goal
is to create the right messages to the right audiences with the
appropriate marketing channels (Kotler and Keller, 2009).
2.3. Consumer Behavior, Marketing, and Customer
Relationship
Adalikwu and Adalikwu (2013) dene consumer behavior as a
psychological process that consumers face in different situations
in order to identify their needs. It is important to decide whether to
accept or reject information about company’s products or services.
From surveys used for this study, ensures that CRM system requires
customer-related data that describes customer’s daily activities,
such as age, occupation, nancial status, personal interest, and
others, to positively affect the organizational performance in terms
of consumer loyalty (Mohammed and Rashid, 2012).
Daqar and Smoudy: The Impact of Consumer Buying Behavior on Customer Relationship Management in the Banking Sector
International Review of Management and Marketing | Vol 9 • Issue 4 • 2019 41
Witek (2016) continue the study of previous factors mentioned
to examine the attitudes of consumers toward CRM in terms
of socio-demographic factors, such as age, sex, education, and
nancial status. A direct survey with 5 Likert scale was used
to determine the behaviors and attitudes of consumers and the
degree of acceptance for multiple statements. This study leads to
a positive attitude toward CRM programs, consumers were aware
of the marketing motives of running CRM programs.
Hun and Yazdanifard (2014) found other factors, such as
communication channels, impact consumer behavior. Three
factors that could affect consumer behavior, which are individual
determinant, external factors, and decision-making process.
Moreover, it is important to use traditional (ofine) and online
communication channels to satisfy the needs and wants of
customers.Shamout (2016) used theoretical information and
collected data to specically determine the impact of one type of
the communication channels, which is sales promotion tools, for
example coupons, price discount, and samples on consumer buying
behavior; which includes consumer loyalty. There were some
hypotheses about whether a relationship between promotional
tools and consumer buying behavior existed. In the end, there
was no relationship between consumer behavior and coupons.
But there is a positive relationship between price discounts and
free samples on consumer behavior (Evanschitzky et al.,2012).
2.4. CRM, Customer Loyalty and Satisfaction
According to Iriqat and Daqar (2017b) in their study, the impact of
CRM has inuencing factors, such as service quality, employee’s
behavior and customer’s database on long-term customer loyalty,
this study nds a positive relationship between both variables,
and a strong impact on employee’s behavior and loyalty; which
means if employee’s deal fair enough with consumers, they will
be satised. As a result, they will become loyal.
Velnampy and Sivesan (2012) investigate the relationship
between CRM and customer satisfaction in order to build a
mutually long-term relationship by using Primary and secondary
data from questionnaires, books, magazines, and journals. They
dened customer satisfaction as “pleasant or unpleasant feeling
caused with a comparison between imaginative function and
expectations.” In conclusion, customer relationship marketing has
an impact on customer satisfaction; a lot of money and time were
spent to maintain the infrastructure facilities. So, they fail to meet
customer’s needs with a psychological view, reduce dissatisfaction,
and increase trust among customers.
Long et al. (2013) used a quantitative approach to study the
impact of CRM dimensions, such as employee’s behavior,
customer service quality, interaction management, and relationship
development on customer satisfaction and loyalty. In the end, the
behavior of employees and relationship development inuence
and contribute most to customer satisfaction. In the end, if
customers are satised, they will become repeat purchaser and
loyal. Furthermore, Ck (2015) used the description of customer
loyalty that Rogers (2004) stated, which has two directions, the
attitudinal (emotional) and the behavioral (functional) approaches.
The rst one indicates the state of mind while the second one refers
to the willingness to act and pay. He said that behavioral customer
loyalty is more useful than attitudinal because when customers are
loyal, they will repeat purchases. Unlike the emotional approach
that does not have action.
According to Abtin and Pouramiri (2016) examine the impact of
relationship marketing, such as satisfaction, trust, communication,
competence, and management on customer loyalty enhancement.
This study used a quantitative method (survey) as an instrument
to investigate the relationship. They used Abdul-Mauhmin (2002)
concept of customer satisfaction as it “satisfaction can lead to
behaviors such as loyalty and positive word of mouth advertising.”
At last, this study proved that relationship marketing variables
have a positive impact on customer loyalty.
3. METHODOLOGY
3.1. Population
According to the quantitative approach, generally, the population
will include all residents in Ramallah city and nearby areas; it is
the main city in Palestine which is the center of and the place of
headquarters of the nancial institutions in Palestine. Specically,
it refers to the number of people who have Bank accounts and a
direct or non-direct relationship with Banks. While the population
of the qualitative approach will include employees of all the fteen
Banks within specic divisions, such as the Marketing and CRM.
3.2. Sample Size
Since the population in the quantitative method is mass and
basically covers all people, a randomly selected people of 100 will
ll out the questionnaire in order to analyze their buying behavior
toward Banks in later stages. Whereas in the qualitative method
two out of fteen Banks in Palestine will be interviewed in order to
investigate their relationship and its impact on customers. Z-Bank
and Bank of Palestine (BOP) have the largest market shares of
23% and 32% respectively, with a total market share of 55% will
be representatives of other Banks in Palestine.
3.3. Research Approach
This study will rely on three main approaches to observe the
relationship between CRM and consumer buying behavior, which
are the mixed method and observation that will be explained along
these lines: Quantitative method; It is a method that provides
numerical data, which can be compared and measured. In this
method, the researchers use a questionnaire for bank’s consumers
to observe their behaviors within the eld of my study. The other
method, qualitative method; Unlike the quantitative method, the
qualitative method cannot be measured; it is used to obtain more
detailed information with suggestions. This method introduces
interviews, which will be used for bank’s employees to examine
their performance toward customers. As a result, a mixed method
of quantitative and qualitative data will be used to measure the
impact of the relationship between both parties.
3.3.1. Research design
It is considered as a strategy used to collect data in a specic
manner in order to answer questions. According to my eld of
study, which will collect information by both quantitative and
Daqar and Smoudy: The Impact of Consumer Buying Behavior on Customer Relationship Management in the Banking Sector
International Review of Management and Marketing | Vol 9 • Issue 4 • 2019
42
qualitative methods about CRM and consumer buying behavior
will use an exploratory design that aims to explore the relationship
between variables.
3.3.1.1. Source of data
• BOP: Is the largest Bank in Palestine with a market share of
32%. This bank has around 1671 employees in approximately
76 branches. It has about 177 USD million total revenues
in 2016 and engaged in corporate, SME, retail, and micro
banking operations. Since it has the largest market share, in
which it deals with a large number of customers. Therefore, a
CRM is practiced in a wide range regardless of its non-existing
division. The researchers have interviewed two employees in
which they have worked in sales and customer care.
• The Z-Bank: Is the second largest Bank in Palestine with
a market share of 23%. It has 31 branches in West Bank
and Gaza Strip with around 889 employees. The Z-Bank
provides a wide range of nancial products and services for
corporations, individuals and other nancial institutions, such
as Corporate, Consumer Banking, Institutional Banking, and
Treasury services. Same as BOP, it deals with a wide range of
customers and is establishing a CRM division. The researchers
kept the name anonymous upon their requests.
3.4. Data Collection Method
3.4.1. Primary data
It will be collected for the 1st time with the aim of formulating
knowledge about the impact of consumer buying behavior of
CRM, such as interviews, questionnaires, and observation, which
will be explained along these lines.
3.4.1.1. Interviews
A structured interview used in order to study some relevant topic
related to this study without the interference of other topics. These
interviews were conducted to observe employee’s performance in
the Z-Bank, BOP. Toward customers and to determine the strength
of their relationship management. It will contain three major topics,
which are CRM, consumer behavior, and marketing procedures.
The rst topic will introduce general questions about the CRM
process in each bank and how they deal with their customers. The
second topic examined consumer buying behavior from the bank’s
perspective. Finally, researchers studied how marketing tools could
affect the relationship between the bank and customers.
3.4.1.2. Questionnaire
A close-ended structured survey used to assess the overall
behavior of consumers toward banks located in Ramallah. This
questionnaire will contain four main dimensions in order to
collect information about consumer’s overall relationship with
their selected banks. The rst dimension is the demographic. The
second dimension contains seven general questions about banks,
which could assist the rst dimension by adding more detailed
and specic information about consumer’s characteristics with
regard to this eld of study, such as the name of the bank, the
motives to select this bank, and reasons affect their choice by using
dichotomous scales (yes or no questions) and others. The third
dimension is more precise/related in order to study the relationship
and its impact on consumers. A 5 Likert scale (strongly agree to
strongly disagree) and dichotomous scale (yes or no questions)
were used. to determine to what extent people, agree or not on
specic situations. For example, consumers’ experience with their
chosen bank. This is called the CRM dimension, which contains
eight different situations. The last dimension related to the buying
behaviors of consumers with a 5 Likert scale that denes how much
satisfaction do consumers have. It identies eight general aspects
that may affect their decision-making process of selecting a bank,
which is called the behavioral information dimension.
3.4.2. Secondary data
Data from other researchers and studies related to this eld study
in the past, which is called previous literature reviews.
3.5. Conceptual Model
3.5.1. Mediator variable: IMC tools
Billboards, Online Ads, Social Media, Face-to-face selling and
sales promotion.
Conceptual model is presented in Figure 1.
4. RESULTS AND DISCUSSIONS
This section shows the results of the study hypothesis that reects
the study conceptual model along with with the data analysis
methods, and the discussion associated with each result from these
hypotheses. Moreover, this section will discuss the results of the
interviews were conducted with banks.
Figure 1: Conceptual model
Source: Own.
Daqar and Smoudy: The Impact of Consumer Buying Behavior on Customer Relationship Management in the Banking Sector
International Review of Management and Marketing | Vol 9 • Issue 4 • 2019 43
4.1. Quantitative Data Findings
H0-1: There is no empirical relationship between consumer buying
behavior and CRM
According to the rst directional hypothesis H1, a correlational and
regression tests were made to examine the validity and signicance
of the relationship between CRM and consumer buying behavior;
it was accepted with a signicance of 0.000 and indicates a direct
and strong positive relationship between both variables. Based
on the Table 1, the researchers concluded that consumer buying
behavior plays a signicant role in CRM in the operated banks
in Palestine.
H0-2: There is no empirical inuence on consumer buying behavior
and CRM
Through using R-square and ANOVA, the results of the Table 2
indicate a signicant value of 375.703 for the F-distribution with 1
and 98 df. F-test taken as the indicator to measure the signicance
of the regression, it is clearly showing that the P < 0.05, which
indicates that there is a signicant relationship exists between
the study variables (consumer buying behavior and CRM). The
independent variable can predict the dependent variable, as
R² = 0.757 which means the independents variable (consumer
buying behavior) can explain 75.75% from the variation in
the dependent variable (CRM). Moreover, multiple correlation
coefcient “R = 0.891” shows a strong positive linear relationship
between the two variables.
H0-3: IMC tools doesn’t play a signicant role in selecting banks
in Palestine.
The researchers used one sample t-test to examine H0-3 (IMC tools
doesn’t play a signicant role in selecting banks in Palestine),
with a 95% level condence, Table 3 shows that IMC tools
(mean=2.4931, SD=1.3690) were not signicantly different at P <
0.05, t = 2.02961, P = 0.112263. The results support to accept the
null hypothesis which indicates that IMC tools don’t play a role in
selecting banks in Palestine. Moreover, the above results indicate
that IMC tools have no signicant impact on consumers buying
behavior through these tools, it means that there are more effective
tools that directly affect the consumers’ decisions in choosing and
selecting a specic bank among the different banks operated in
Palestine. These results supported by other analysis when taking
the frequencies of the respondents, 30% of the respondents agreed
that sales promotions affect the consumer buying behavior while
the rest 70% see it has no signicant impact on their decisions
when choosing a bank.
Table 4 illustrates that the majority of the respondents indicate
that IMC tools haven’t that signicant impact when choosing
their banks, it merits to investigate the more effective marketing
tools that affect the consumer buying behavior, and on the side, it
is an indicator for the banks that not to consider these tools as a
source of information for their CRM systems. It was mandatory
to ask the customers in a direct way to express their impression
about their relationship with their banks, as it is one of the main
effective ways to know better the customer needs and to try to
satisfy these needs.
Question: Do you think your bank should improve its relationship
with customers?
Answer: The majority of respondents (76%) clearly state that banks
should improve their relationship with the customer to discover
their needs in order to fulll these needs by tailoring their strategies
and products to be aligned with customers real needs.
4.2. Qualitative Data Findings
After interviewing two banks with the largest market share in
Palestine of approximately a total of 55%, we have pointed out
some thematic and comparative analyses between both of them
regarding the CRM, consumer behavior, and IMC dimensions.
4.2.1. CRM
First of all, the CRM dimension, which contains eight major
questions. Generally, most of these questions required comparative
analyses due to the differences among Banks’ strategies and
procedures. The rst question, which is the general denition
of CRM in each Bank was identied differently; the Z-Bank
describes it as a unit that is related to customers proles by having
full and updated information on customers, such as accounts,
work, personal life and behaviors, in a way that enables the Bank
to create, maintain and improve their relationship with them,
Table 1: Correlation coefcients between consumer
buying behavior and CRM
Dimensions 1 2
CRM 1 0.891**
Consumer buying behavior 0.891** 1
**Correlation is signicant at the 0.01 level, Source: Own, CRM: Customer relationship
management
Table 2: R-square and ANOVA for customer relationship management econometric model
Model Sum of squares df Mean square F Sig R R square
Regression 48.766 1 48.766 375.703 0.000 b
Residual 12.720 98 0.130 0.891 a 0.7575
Total 61.487 99
a. Dependent variable: CRM, b. Source: Own
Table 3: The results of one Sample t-test of integrated marketing communication tools
Dimension Mean Std. deviation Mean Differences t-value P-value
Integrated marketing communication tools 2.4931 1.3690 1.5067 2.02961 0.112263
Source: Own
Daqar and Smoudy: The Impact of Consumer Buying Behavior on Customer Relationship Management in the Banking Sector
International Review of Management and Marketing | Vol 9 • Issue 4 • 2019
44
while BOP denes it as customer services that meet consumers’
needs and keep contact with them through many transactions,
including, but not limited to opening accounts and depositing.
This let us realize that the rst Bank has an actual CRM unit and
works well in gathering data about its customers in order to know
how to communicate and deal with customers. According to the
second question, what is the most important in CRM; acquiring
new customers or retaining current customers? The researchers
used a thematic analysis since they have the same point of view
towards the importance of acquiring new customers or keeping the
existing ones; both of them prefer the two ways. But, acquiring
new customers will cost more. So, they depend on satisfying the
old customers. When customers are satised, they will favorably
talk to others about their experience and the quality of services
offered. The third question that focuses on the purpose of CRM
implementation used a comparative method among Banks; the
main purpose for the Z-Bank is to satisfy customers by providing
services continually since they are considered the main asset.
On the other hand, BOP seeks to achieve a win-win relationship
strategy. Therefore, it is not a customer-centric approach in
the BOP. The fourth question which compares the difference
between online and ofine customers considered comparative;
the Z-Bank adds value to their perceived ofine services. Hence,
a positive relationship with online customers would occur. But
offline customers may be more important than online ones
because it adds respect and accurate transactions. According to
the BOP, usually ofine customers are harder to deal with than
online ones, because you have a face-to-face relationship. So,
customer service providers must be aware of their attitudes and
behavior towards customers and should pay more attention to
their body language and appearance. As a result, some Banks
may prefer ofine customers as they see them more important
and not hard to deal with and vice versa. The fth question: How
Banks obtain knowledge about their customers? A comparative
method was used to distinguish between the way each Bank obtain
knowledge about customers depending on the procedures they
follow; the Z-Bank starts to collect information about customers
at the beginning of a relationship, and then they begin to update
and expand the information through banking transactions. This is
especially done for Elite and Premium customers. BOP does not
have a separate system containing information for all customers.
They have a system that allows access from employees within
their eld of work. The sixth question: how banks deal with
customers complaints? this question uses a comparative analysis
to compare customer complaints in each Bank. The rst Bank
has special units called “customer experience” and “complaints
management” who handle and solve customer complaints. BOP
has a box specially designed for complaints. If customers are not
satised during the communication process with employees, they
put their complaints in this box and there is one who is responsible
to check the complaints and solve them. The seventh question:
What is the usage of CRM in Banks? Since mostly all Banks
have the same viewpoint regarding CRM as a tool to convince
customers of services and understand their needs, which eventually
could affect the way consumers act towards the bank, researchers
have used a thematic method in this question. Researchers have
not used the thematic neither comparative method in the nal
question of this section. The eighth question: How you evaluate
your current relationship with your customers through your
employees and products? BOP offers the right services, which
includes commitment, consistency, reliability, friendly staff, and
any other positive attitudes toward customers, while the other
Bank refused to provide information.
4.2.2. Consumer buying behavior
A thematic method was used in the rst question to describe the
strategy of customer-focus in the media conducted of both banks;
the Z-Bank uses a customer-centric approach by targeting their
customers in the media conducted. All of these have enhanced
customer experience with Banks’ products and maintained the
relationship with them. BOP has additional step mentioned during
the interview, which is the pretest of any advertisement before
executing the real one. Researchers also used the thematic method
in the second and third questions regarding the relationship with
customers and its effect on them; generally all Banks, including
the interviewed Banks have the same perception, they believe that
good, trusted and direct relationship with customers will lead to
satisfaction and loyalty and absolutely will change their intentions
in a positive way toward the Bank. Each Bank has its own strategies
and activities toward inuencing customers in a positive way. Thus,
a comparative analysis was made for this question. The Z-Bank
depends on the wide range of products and services offered that
meet customers’ needs, such as the expanded branches and improved
electronic banking section, whereas BOP focuses on donations and
social responsibility activities to retain their customers.
4.2.3. IMC tools
Question one: The effect of marketing activities and campaigns on
Banks performance? Usually marketing activities and campaigns
conducted for customers as mentioned before, which will
somewhat affect the performance of Banks and alter consumers
perception. For example, the credit card spending campaign with
cash back rewards and housing loans campaigns will positively
change their behavior over time and increase their usage. Thus, a
thematic analysis was used for the rst question.
Question two: What are the banks view about marketing
campaigns? Mostly all Banks consider marketing campaigns
as one of the other strategies to enhance the relationship with
customers and attract new ones. Therefore, researchers used the
same method in question one. Also, Banks view these campaigns as
insufcient but believe they are important tools for attracting new
customers, in addition to other services that could inuence them.
Question three: How banks consider marketing activities? The
following questions in addition to question number seven have
Table 4: Frequencies percentage of integrated marketing
communication tools variable
Integrated marketing communication tools Yes (%) No (%)
Social media 16 84
Face-to-face selling 26 74
Billboards 26 74
Online ads 29 71
Sales promotion 30 70
Source: Own
Daqar and Smoudy: The Impact of Consumer Buying Behavior on Customer Relationship Management in the Banking Sector
International Review of Management and Marketing | Vol 9 • Issue 4 • 2019 45
applied a comparative method regarding the marketing tools as
an intermediary factor; the Z-Bank consider marketing activities
as a tool that emphasizes loyalty and credibility. Conversely, BOP
views it as an intermediary factor and the main communication
tool with customers. The next question which is “What are the best
and most marketing tools used to communicate your customers?”
was not answered by the Z-Bank. But, answered by BOP; the most
attractive and used marketing tools are Billboards, radio, and social
media. So, generally, there is no comparative or thematic analysis.
The nal question in this section, which is considering the value
added from these marketing activities, adds value to the Z-Bank
indirectly and strengthen the relationship with customers. Actually,
it promotes an existed products and services that would let people’s
life easier and solve their problems; housing loans is such an
example of the added value in their lives. According to the BOP,
they did not answer it directly. Thus, there is no answer to it.
Eventually, researchers have asked them an additional question to
compare the behavior from two points of view when customers
are not satised; from customers and Banks as well. The Z-Bank
takes actions to correct any dissatisfaction reasons by continuous
improvement. There is a specialized unit called “customer
experience” that handles such problems and apply corrective
actions, while the BOP depends on the situation that leads them
to be dissatised. If possible, they take some actions that could be
controllable to satisfy their customers and solve their problems.
Additionally, the researchers intentionally asked if there are other
IMC tools were not mentioned in this study that has more impact
and effect at customers; unsurprisingly they indicate that the word
of mouth is the most effective marketing tool in Palestine in this
industry, the researchers intentionally didn’t include this tool in
the study model to nd if the other most commonly used methods
are effective in banking industry in Palestine.
5. CONCLUSION
Eventually, the researchers conclude the main results of this
research work, it is revealed that there is a positive strong
relationship between consumer buying behavior and CRM.
Consumer Buying Behavior predicts the variance in CRM
system of the banks. Besides, the most common used IMC tools
(billboards, online ads, social media, face-to-face selling, and
sales promotion) have no signicant impact on consumers buying
decisions, sales promotion is the most important tool that has a
consensus among all the respondents which affects their buying
decisions. Word of mouth is more effective than other tools
from the interviewees point of view, this tool wasn’t mentioned
intentionally in the study model in order to nd the effect of other
marketing tools, and on the other side the researchers have a
previous customer insight view about the most effective marketing
channels for the banks in Palestine, word of mouth still one of the
most effective tools.
It was clear that Banks in Palestine haven’t a comprehensive
CRM application according to the interviews and the respondent’s
answers, in addition to, Banks have different views about CRM and
how to capture the value of applying effective CRM applications
according to other pioneer organizations best practice in this
industry and how they succeeded in building a compatible CRM
application that helps them to extract the best strategies, and
practices to meet the customer needs and nding the best methods
to retain them.
Likewise, some banks have specialized units to handle all types of
customer complaints, these are specialized units called “complaint
units” with an authority matrix that have the capacity to handle and
solve all types of customers complaints without passing through
the administration bureaucracy regime; this procedure gave banks
more competitiveness than others as they gain more experience
and nd the best practice to handle and solve customers complaints
and problems.
6. LIMITATIONS, RECOMMENDATIONS,
AND FURTHER RESEARCH
The researchers faced minor challenges in acquiring the primary
data, as well as the logistician efforts spent to gather the data.
Starting from the questionnaire which was distributed only to
100 customers of the Banks in Palestine, especially in Ramallah
and nearby areas; while the researchers plan to obtain the highest
number of participants in this study. On the other side, this
research was conducted only in two representative Banks with a
total market share of 55%. Most of the representative Banks do
not have CRM divisions. Consumers have different behaviors and
their relationship with Banks depends on their personal experience.
Therefore, a complexity to discover the relationship between CRM
and consumer buying behavior would occur.
The researchers recommend banks to highly invest in CRM
systems to obtain and understand the main aim of CRM systems
in the banking industry and how it is applied in other banks
locally and globally; through the best practice of these pioneer
banks. The most signicant part when applying CRM system is
to nd how best this system will be aligned with customers needs
and their practices, customers always expect the most effective
performance of their banks to meet their needs within the most
available channels within a reasonable cost model. Banks need
to investigate for the best marketing tool to reach their customer
in an effective way, it will reduce the cost to either acquire new
customer or retaining customers, the study shows that integrated
marketing tools were not signicant according to the respondents
answers, while banks shows that social media is the best method;
on the other side respondents have a consensus by 30% that sales
promotion is the best attracting method that affects their purchasing
behavior. So, banks need to reduce the gap between the customers’
view and the banks’ view.
Researchers will continue their research work, as there is a motive
to discover the gap about the most effective IMC tool which has
the most inuence and impact for both sides, the customers and
the banks. Additionally, it merits to pay attention and investigate
deeply for the pioneers who succeeded in applying efcient CRM
systems in this banking industry, and how these examples motivate
Daqar and Smoudy: The Impact of Consumer Buying Behavior on Customer Relationship Management in the Banking Sector
International Review of Management and Marketing | Vol 9 • Issue 4 • 2019
46
and encourage others to apply such techniques, procedures,
systems, and practices to gain more benets when applying such
CRM system.
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