Social customer relationship management and differentiation strategy affecting banking performance effectiveness

Abstract

This research aims to develop structural equation modelling1 of variables that affect the banking performance effectiveness of Thai Commercial Bank branches in the financial service sector by gathering quantitative data. The population of the study covers all 2,068 Thai Commercial Bank branches in Bangkok, Thailand (as of 31 July 2012). This research defined the Thai banks for data collection using stratified sampling (first step) and simple sampling (second step). Brimary data were collected using a self-administered survey of 65 managers and 185 marketing officers. Data were analysed using Confirmatory Factor Analysis (CFA) and Structural Equation Modelling (SEM). It was found that significant relationships existed between social customer relationship management (social CRM) and differentiation strategy and banking performance effectiveness. The key success factors of social CRM were found to have direct influence on banking performance effectiveness (p<0.01) and indirectly through the mediation of differentiation strategy (p<0.001). © 2013 Academic Journals Inc.