An investigation into factors of e-CRM influencing customer retention in Afriqiyah Airways.

The problem identified in this research is the lack of understanding and knowledge ofthe factors that produce a propensity towards e-CRM as a predictor of continued customer use. To this end this study investigated the factors contributing to attitude towards the use of e-CRM of that would positively influence customers of Afriqiyah Airways (AAW), contributing to customer retention. The research developed a modified Technology Acceptance Model (TAM) incorporating these factors. The general TAM model proposes that external variables influence perception of ease of use and perception of usefulness of a technology, with perception as a predictor for the adoption of that technology. In our proposed model, the external variables consisted of Trust, Pre-Sales Services, and After-Sales Services, which influenced the variable Perception (borrowed from TAM) that combined perceived ease of use and perceived usefulness ofthe e-CRM system. The research collected data using a survey questionnaire disseminated to 306 customers of Afriqiyah Airways (AAW) in the United Kingdom. Exploratory and Confirmatory factor analysis established the validity of the survey questionnaire. The partial least squares method was employed to analyse the Customer Retention Modified TAM Model used in the study, while simple and multiple regression analysis were used to test the hypotheses of the study concerning the relationships among the variables. The findings of this study, however, demonstrate that Trust plays a direct and significant role on Attitude toward using e-CRM that is not mediated by Perception, although it accounted for less variance in Attitude than it did for Perception. These results imply that Trust may be one of the most important external variables for developing a propensity towards e-CRM among customers, which suggests that Afriqiyah Airways (AAW) and other similar airlines should ensure that elements oftheir e-CRM system contribute to customers' subjective evaluation of trustworthiness of the system. Moreover, the findings also demonstrate that the customer's experience with Pre-Sales Services and After-Sales Services can have an effect on Attitude, which suggests that firms should ensure their customer care systems meet the expectations ofusers of the online system. The findings also have implications for Afriqiyah and other similar firms by indicating that both sale stages can play an important role in the customer's perceptions of an e-CRM system. Hence; when considered together, the finding that Trust, Pre-Sales Services and After-Sales Services each make an important contribution to variance in Perception implies that these external variables antecedent to Perception are necessary for customers to develop a propensity towards e-CRM. In conclusion, the finding that the Customer Retention Modified TAM Model accounts for approximately more than half of the variance in Attitude and that there are rich interrelationships with each other suggests that the four variables of Trust, Pre-Sales Services and After-Sales Services are important predictive factors for explaining the variance in Attitude. This suggests that firms seeking to improve attitudes towards e-CRM should focus on these four constructs to ensure that the elements of the e-CRM system meet with customer expectations. Hence, the final finding of the study is the determination that a positive attitude toward e-CRM use is a necessary prerequisite for customer retention.