Home   >   CSC-OpenAccess Library   >    Manuscript Information
CRM Implementation in Indian Telecom Industry – Evaluating the Effectiveness of Mobile Service Providers Using Data Envelopment Analysis
Vani Haridasan, Shanthi Venkatesh
Pages - 110 - 127     |    Revised - 01-09-2011     |    Published - 05-10-2011
Volume - 2   Issue - 3    |    Publication Date - September / October 2011  Table of Contents
MORE INFORMATION
KEYWORDS
Data Envelopment Analysis, CRM, Relative Efficiency, Effectiveness, Loyalty, Frontier Analysis
ABSTRACT
With the liberalization and internationalization in telecommunication, service quality has become an important means of differentiation and path to achieve business success. Such differentiation based on service quality is seen as a key source of competitiveness for many Indian firms and hence have implications for leadership in such organizations. Faced with a growing market and increasing competition, companies in the telecom business are adopting to new technological imperatives in order to outperform their competitors. These companies adapt continuously to the dynamic environment so as to survive competition. The emphasis here lies in identifying critical value adding processes and redesigning them to become customer centric. One such approach in the adoption of an IT to move towards customers is the Customer Relationship Management (CRM). The Indian Mobile Service Providers are using CRM extensively to identify the needs of the customers and stretching out ways and means to satisfy them. In this context, it is absolutely essential to study the effectiveness of the CRM being practiced by the mobile service providers. This study specifically analyses the extent to which CRM is being practiced by the mobile service providers, and identifies the effect of the service quality of the mobile service providers on the Customer Loyalty. As CRM focuses on being customer centric, it becomes essential to measure the effectiveness of CRM in terms of the degree to which the customers are advocates of the mobile service provider as well as to measure the degree to which they participate in the cross selling and up selling of the various products and services of the provider. To evaluate the effectiveness, there are lots of quantitative techniques available and some work in this area has already been done. But there is a dearth of literature focusing on the relative efficiency. One advanced operations research technique which evaluates the relative efficiency is the Frontier Analysis or Data Envelopment Analysis (DEA). This paper attempts to use Data Envelopment Analysis to assess the effectiveness of Mobile Service Providers, specifically a set of the providers offering services in Chennai, Tamil Nadu, India. The research has identified a set of input and output parameters for each Service Provider, from which the efficient frontiers (DMUs) are determined. The relative efficiency of the Service Providers are measured with respect to the efficient frontier and then analyzed. Detailed recommendations are set forth, for appropriate interventions to address the specific gaps identified through the gaps analysis. The analysis further provides useful information and opens up new avenues for future research.
CITED BY (29)  
1 Saadi, M., Manzoor, R., Toor, W. T., Wijayasekara, S. K., Masood, F., & Wuttisittikulkij, L. (2020). A Comparative Study of Customer Preferences for Telecommunication Technologies in Pakistan. Engineering Journal, 24(3), 129-136.
2 Almarshad, M., Al-Nawafah, S., & Tahrawi, M. (2020). The role of customer relationship management success factors on enhancing the mental image of telecommunications companies in Jordan. Management Science Letters, 10(15), 3155-3206.
3 Srivastava, S. K., Chandra, B., & Srivastava, P. (2019). The impact of knowledge management and data mining on CRM in the service industry. In Nanoelectronics, Circuits and Communication Systems (pp. 37-52). Springer, Singapore.
4 Kumar, P., & Sharma, G. (2019). An integrated approach for performance measurement of Indian telecom service providers. International Journal of Mobile Communications, 17(2), 157-173.
5 Belwal, R., & Amireh, M. (2018). Service quality and attitudinal loyalty: Consumers’ perception of two major telecommunication companies in Oman. Arab Economic and Business Journal, 13(2), 197-208.
6 Sianipar, E., Sucherly, H., Kaltum, U., & Oesman, Y. M. (2018). Customer Relationship Management to Customer Value & Customer Loyalty of Fixed Broadband: Study Case on Fixed Broadband Company in Indonesia. Management, 6(6), 444-453.
7 Dabab, M., & Anderson, T. (2018). Benchmarking Cellular Technical Efficiency Using Data Envelopment Analysis. In Proceedings of the International Annual Conference of the American Society for Engineering Management. (pp. 1-10). American Society for Engineering Management (ASEM).
8 Shrivastava, P., Sahoo, L., & Pandey, M. (2018). Architecture for the Strategy-Planning Techniques Using Big Data Analytics. In Smart Computing and Informatics (pp. 649-657). Springer, Singapore.
9 Saha, L., & Sahoo, L. (2018, May). Adaptation of Spectral Clustering in Telecommunication Industry for Customer Relationship Management. In 2018 2nd International Conference on Electronics, Materials Engineering & Nano-Technology (IEMENTech) (pp. 1-6). IEEE.
10 Wali, A. F. (2018). Customer Relationship Management and Marketing Effectiveness: A Comparative Consumer Study. Paradigm, 22(2), 101-124.
11 Karimi-Ghartemani, S., Shekarchizadeh, A., & Khani, N. (2018). A Data Envelopment Analysis Method for Evaluating Performance of Customer Relationship Management. Iranian Journal of Management Studies, 11(4).
12 Saha, L., Sahoo, L., & Routray, S. K. (2017). Survey on CRM analytics in telecommunication industry. International Journal of Computer Trends and Technology (IJCTT), 45(1), 21-27.
13 Iriqat, R. A., & Daqar, A. (2017). The role of customer relationship management on enhancing the customers’ satisfaction in the banks in Palestine. Modern Applied Science, 11(12), 84-91.
14 Püvi, R. (2017). Introduction of customer relationship management in the direction of a business customer on the example of Peetri Puit OÜ (Doctoral dissertation, University of Tartu).
15 Masson, S., Jain, R., Ganesh, N. M., & George, S. A. (2016). Operational efficiency and service delivery performance. Benchmarking: An International Journal.
16 Oredegbe, A. A. (2016). Efficiency and productivity analysis of deregulated telecommunications industries: a comparative study of the cases of Canada and Nigeria (Doctoral dissertation, University of Southern Queensland).
17 Le, T. T. N. (2016). Customer relationship management at FPT Telecom Company (Doctoral dissertation, Hanoi National University).
18 Krishnakumar, P., & Rashmi, K. R. Service Quality Dimensions in Mobile Telecommunication Sector.
19 Rashmi, K. R., & Krishnakumar, P. (2015). DETERMINANTS OF CUSTOMER LOYALTY IN INDIAN MOBILE TELECOM SECTOR-A CONCEPTUAL ANALYSIS. Asia Pacific Journal of Research Vol: I. Issue XXXII.
20 Mahajan, M. (2015). Study of customer satisfaction of corporate customers of telecom service operators (Doctoral dissertation, Tilak Maharashtra Vidyapeeth).
21 Yadav, K., Shashank, T., & Divekar, R. (2015). Impact of technological changes in telecom sector in India. Indian Journal of Science and Technology, 8(S4), 194-199.
22 Prasad, K. S., & Mishra, S. (2014). The relationship between customer demographics and brand loyalty in the Indian telecom sector: an empirical study. International Journal of Customer Relationship Marketing and Management (IJCRMM), 5(4), 38-57.
23 Prasad, K. S., & Mishra, S. (2014). From communication to conversation: How Tata DoCoMo used social media as an effective CRM tool. International Journal of Online Marketing (IJOM), 4(4), 52-64.
24 Rajeswari, S. (2014). Internal and Interactive Marketing Practices of BSNL in Promotion of Fixed Broadband Services (DSL) (Doctoral dissertation).
25 Prasad, K. S., & Mishra, S. (2014). A study to explore relationships between customer demographics and brand loyalty in the Indian telecom sector. International Journal of Customer Relationship Marketing and Management (IJCRMM), 5(3), 1-13.
26 Arora, M. E. E. R. A. (2013). Role of Service Quality in Customer Relationship Management: An Empirical Study of Indian Telecom Industry. Research and Development (IJSMMRD), 3(2), 87-94.
27 Zuhyle, S., & Gunaratne, R. L. (2013). Customer Lifecycle Management practices in the telecom sector in Sri Lanka and Bangladesh: Supply side perspective.
28 Uusma, S. (2013). Principles of comprehensive sales management on the example of Elisa Eesti AS business customer unit (Doctoral dissertation, University of Tartu).
29 Chinje, N. B. (2013). Customer Relationship Management (CRM) Implementation within the Banking and Mobile Telephony Sectors of Nigeria and South Africa (Doctoral dissertation, University of the Witwatersrand, Faculty of Commerce, Law and Management, Graduate School of Business Administration).
1 Google Scholar 
2 CiteSeerX 
3 refSeek 
4 Scribd 
5 SlideShare 
6 PdfSR 
AGASISTI, T. AND BIANCO, A.D. (2006),“Data envelopment analysis to the Italian university system: theoretical issues and policy implications”, International Journal of Business Performance Management, Vol. 8, No. 4, pp.344–367.
AHIRE, S L; GOLHAR, D Y AND WALLER, M A (1996),”Development and Validation of TQM Implementation Constructs”, Decision Sciences, 27(1), 23-56.
ANATILIY, G.G. (2007),”Using the DEA in efficiency management in industry”, International Journal of Productivity and Quality Management, Vol. 2, No. 2, pp.241–262.
ANITA SETH, K MOMAYA, AND H M GUPTA, "Managing the Customer Perceived
BERRY, L. (1987), “Big ideas in services marketing”, The Journal of Services Marketing, 1(1), pp. 5 - 9.
BERRY, L.L. & PARASURAMAN, A. (1991), “Marketing Services: Competing through Quality” (New York, Free Press).
BERRY, L.L. & PARASURAMAN, A.(1992), “Prescriptions for a service quality revolution in America”, Organisational Dynamics, Spring, pp. 5 - 15.
BERRY, L.L., PARASURAMAN, A. & ZEITHAML, V.A. (1988), “The service quality puzzle”, Business Horizon, September - October, 31(5), pp. 35- 43.
BERRY, L.L., ZEITHAML, V.A. & PARASURAMAN, A. (1990), “Five imperatives for improving service quality”, Sloan Management Review, Summer, 31(4), pp. 29 - 38.
BERRY, LEONARD (1995) “Relationship Marketing of Services- Growing Interest, Emerging Perspectives” Journal of the Academy of Marketing Science, 23 (4), pp. 236-245.
BIRGIT LEISEN, CHARLES VANCE, (2001) "Cross-national assessment of service quality in the telecommunication industry: evidence from the USA and Germany", Managing Service Quality, Vol. 11 Iss: 5, pp.307 - 317
BLATTBERG, R. C. AND DEIGHTON, J. (1996), “Managing Marketing by the Customer Equity Criterion”, Harvard Business Review, Jul-Aug, 74, pp. 136- 44
BLOEMER, J., RUYTER, K., AND WETZELS, M. (1999), “Linking Perceived Service Quality and Service Loyalty: a Multi-dimensional Perspective”, European Journal of Marketing, Vol. 33 No. 11/12, pp. 1082-1106.
CALHOUN, J. (2003),”Relative efficiencies of institutions of higher learning”, 14 October, University of Georgia, Available at: www.arches.uga.edu/calhounj/personal/deadisagg.pdf.
CARMAN, J.M. (1990), “Consumer perceptions of service quality: an assessment of the SERVQUAL dimensions”, Journal of Retailing, 66, pp. 33 - 35.
COLLIS, R. (1990),”Business travel: marketing wars”, International Management, 45(2), pp. 60- 62.
COOPER, L.G. & INOUE, A. (1996),“Building market structures from consumer preferences”, Journal of Marketing Research, 33(3), pp. 293 - 306.
CRAWFORD, R. (1993), “Service you can bank on”, TQM Magazine, 5, pp. 53 - 56.
CRONBACH, L J (1951),”Coefficient Alpha and the Internal Structures of Tests”, Psychometrika, 16(3), 297-333.
CUNNINGHAM, S.M. (1967), “Perceived risk and brand loyalty. In: D. COX (Ed.) Risk Taking and Information Handling in Consumer Behaviour”, (Boston, Harvard University Press), pp. 507- 523.
CZEPIEL, A.J. & GILMORE, R. (1987),”Exploring the Concept of Loyalty in Services”, (AMA).
DAVID W. FINN, CHARLES W. LAMB, Jr. (1991), "An Evaluation Of The Servqual Scales In A Retailing Setting", in Advances in Consumer Research Volume 18, eds. Rebecca H. Holman and Michael R. Solomon, Provo, UT : Association for Consumer Research, Pages: 483-490.
DAY, G.S. (1969),“A two-dimensional concept of brand loyalty”, Journal of Adver tising Research, 9, pp. 29 - 35.
DYCHE, JILL (2001) “The CRM Handbook: A Business Guide to Customer Relationship Management” Addison-Wesley Pub Co.
ELANGOVAN, K., SELLADURAI, V., DEVADASA, S.R., GOYAL, S.K. AND MUTHU, S. (2007) ‘Quality and productivity improvement of executive decisions in maintenance engineering: an ess-based approach’, International Journal of Productivity and Quality Management, Vol. 2, No. 1, pp.112–139.
FILIATRAULT, P. AND LAPIERRE, J. (1997), “Managing Business-To-Business Marketing Relationships in Consulting Engineering Firms”, Industrial Marketing Management, 26(2), pp. 213-22
FRANK, R.E. (1967),” Is brand loyalty a useful basis for market segmentation”, Journal of Advertising Research, 7, pp. 23 - 27.
FREDERICKS, J.O.&SALTER,J.M.II(1995), “Beyond customer satisfaction”, Management Review, 84, pp. 29- 32.
GALE, T.B. (1990) “The role of marketing in total quality management”. In: QUIS-2 Quality in Services Conference Proceedings (University of St John’s).
GREMLER, D.D. & BROWN, S.W. (1996),”Service loyalty: its nature, importance, and implications” A Global Perspective QUIS-5, Conference proceedings, (Karlstad, University of Karlstad).
GUMMESSON, E. (1993) Quality Management in Service Organizations (Karlstad, International Service Quality Association).
HAIR, J F JR.; ANDERSON, R E; TATHAM, R L AND BLACK, W C(1995), “Multivariate Data Analysis”, 4th ed., Engelwood Cliffs, NJ: Prentice-Hall.
HAMPTON, G. M. (1993). “Gap Analysis of College Student Satisfaction as a Measure of Professional Service Quality” , Journal of Professional Services Marketing, 9, 115-28.
JACOBY, J. (1971),” A model of multi-brand loyalty. Journal of Advertising”,11, 25- 30.
JOHNSON, WILLIAM C. AND SIRIKIT, ANUCHIT (2002), “Service Quality in the Thai Telecommunication Industry: A Tool for Achieving a Sustainable Competitive Advantage”, Management Decision, Vol. 40, No. 7, pp. 693-701.
KAISER, H F AND RICE, J (1974),”Little Jiffy Mark IV”, Educational and Psychological Measurement, 34(1), 111-17.
LANGREHR, F.W. & RINNE, H. (1987),”Patterns of store choice: a replication” Food Marketing, 3, pp. 33- 44.
LIN, W.C., LIU, C.F. AND CHU, C.W. (2005), “Performance efficiency evaluation of the Taiwan’s shipping industry: an application of data envelopment analysis”, Proceedings of the Eastern Asia Society for Transportation Studies, Vol. 5, pp.467–476.
LOWENSTEIN, M.W. (1993), “The voice of the customer”,Small Business Reports, 18, pp. 57 - 58.
LYNCH, J.J. (1995), ”Customer Loyalty and Success” (London, Macmillan Press).
M.S. KHAN, S.S MAHAPATRA,“Service quality evaluation of technical institutions using data envelopment analysis”, International Journal of Productivity and Quality Management, Vol 3, No. 1, 2008.
MAHAPATRA, S.S. AND KHAN, M.S. (2006) “Neural approach for service quality assessment: a case study”, Industrial Engineering Journal, Vol. 35, No. 7, pp.30–35.
MARUCA, R.F. & HOLLIDAY, A.L. (1993), ”When new products and customer loyalty collide”, Harvard Business Review, 71, pp. 22- 23.
McMILLAN, L.M. AND DATTA, D. (1998),”The relative efficiencies of Canadian universities: a DEA perspective”, Canadian Public Policy-Analyse De Politiques, Vol. 24, No. 4, pp.485– 511. McMullen, P.R. (1997) ‘Assessment of MBA programs via data envelopment analysis’, Journal of Business and Management, Vol. 5, No. 1, pp.77–91.
NUNNALLY, J C (1978),”Psychometric Theory”, New York : McGraw- Hill.
OLSON, J.C. & JACOBY, J. (1971), A construct validation of brand loyalty”, Proceedings American Psychological Association, 6, pp. 657 - 658.
OSTROWSKI, P.L., O’BRIEN, T. & GORDON, G. (1993),“Service quality and customer loyalty in the commercial airline industry”,Journal of Travel Research, 32, pp. 16- 24.
PACHECO, R.R. AND FERNANDES, E. (2003),“Managerial efficiency of Brazilian airports”, Transport Research, Vol. 37, Part A, pp.667–680.
PARASURAMAN, A., BERRY, L.L. & ZEITHAML, V.A. (1991c), “Understanding customer expectations of service.” , Sloan Management Review, Spring, 39 - 48.
PARASURAMAN, A., ZEITHAML, V.A. & BERRY, L.L. (1985), “ A conceptual model of service quality and its implications for future research”, Journal of Marketing, 49, pp. 41- 50.
PARASURAMAN, A., ZEITHAML, V.A. & BERRY, L.L. (1988), “SERVQUAL: a multipleitem scale for measuring consumer perceptions of service quality”, Journal of Retailing, 64, pp. 12 - 40.
PARASURAMAN, A., ZEITHAML, V.A. & BERRY, L.L. (1994), “Reassessment of expectations as a comparison standard in measuring service quality: implications for further research”, Journal of Marketing, 58, pp. 111- 123.
PEPPARD, JOE (2000) “Customer Relationship Management (CRM) in Financial Services” European Management Journal, 18(3), pp. 312-327.
PETER J. DANAHER, RODGER W. GALLAGHER, (1997) "Modelling customer satisfaction in Telecom New Zealand", European Journal of Marketing, Vol. 31 Iss: 2, pp.122 - 133
RAMANATHAN, R. (2001),”A data envelopment analysis of comparative performance of schools in the Netherlands”, Opsearch, Vol. 8, No. 2, pp.160–181.
RANAWEERA, C. AND NEELY, A.D. (2003) “Some Moderating Effects on the Service Quality-Customer Retention Link”, International Journal of Operations and Production Management, 23, 2, 230-248.
REICHHELD, F. (1996) “The Loyalty Effect” Harvard Business School Press, Boston, AMA
REICHHELD, F. AND SASSER JR, W.E. (1990) “Zero Defections: Quality Comes to Services” Harvard Business Review, Sept-Oct, 68, pp. 105-11
REICHHELD, F.F. (1993),”Loyalty-based management”, Harvard Business Review, 71, pp. 64- 73.
RHODES, E.Y. AND SOUTHWICK, L. (1986),”Determinants of Efficiency in Public and Private Universities”,Department of Economics, University of South Carolina.
RUDIE, M.J. & WANSLEY, B.H. (1984) “The Merrill Lynch Quality Program”, Ser vices Marketing in a Changing Environment (New York, AMA).
SAMLI, A.C. & SIRGY, J. (1982), “A Multidimensional Approach to Analyzing Store Loyalty: A Predictive Model” (New York, AMA).
SELLERS, P. (1989),“Getting customers to love you”, Fortune, 119, p. 13.
Service Quality for Cellular Mobile Telephony: An Empirical Investigation” VIKALPA 33(1) ,20-36
SHETH, J., N. & PARVATIYAR, A. (1995) “Relationship marketing in Consumer Markets: Antecedents and Consequences” Journal of the Academy of Marketing Science, 23 (Fall), pp. 255-271.
STEWART, D W (1981),”The Application and Misapplication of Factor Analysis in Marketing Research”, Journal of Marketing Research, 18, 51-62.
TOMKINS, C.Y. AND GREEN, R.(1988),”An experiment in the use of data envelopment analysis of evaluating the efficiency of UK university departments of accounting”, Financial Accountability and Management, Vol. 4, No. 2, pp.147–164.
WANG, Y. AND LO, H.P. (2002), “Service quality, customer satisfaction and behavioural intentions: evidence from China’s telecommunication industry”, Info-The Journal of Policy, Regulation and Strategy for Telecommunications, vol. 4, issue 6, pp.50-60.
WIERSEMA, F. & THOMPSON, J. (1991),”Consistent customer contacts for repeat business. Information Strategy”, The Executive’ s Journal, 7, pp. 5 -12.
ZEITHAML, V.A. & BITNER, M.J. (1996) “Services Marketing” (New York, McGraw-Hill).
Mr. Vani Haridasan
SSN School of Management & Computer Applications - India
vanih@ssn.edu.in
Dr. Shanthi Venkatesh
SRM B-School - India