The Impact of Customer Relationship Management on Enhancing Service Quality of Commercial Banks Nigeria: The Moderating Role of Customer Commitment

Abstract

The objective of this study was to examine the impact of Customer Relationship Management on enhancing Service Quality of commercial banks in Nigeria under the moderating role of Commitment from customer perspective. In Nigeria, Commerical banks are being compelled to implement a customer-focused strategy as a result of rising customer expectations in the business environment and, this raises the significance of customer-related constructs like CRM and Service quality in explaining commercial bank service quality as it relates to the issue of service in consistency and unmet expectation. The CRM dimensions Customer value, customer engagement, customer involvement, customer orientation, customer knowledge, and customer attraction. Service quality was the Independent variable while customer commitment was used as the moderator. Expectancy disconfirmation theory, customer engagement theory and trust and commitment theory are used as the underpinning theories in this study. Based on the theoretical framework, nine hypotheses were developed and tested. The methodology of the study is quantitative and cross sectional survey and respondents were chosen from retail customers of Commercial bank in Nigeria. Proportional and convenient sampling was applied for the selection of the respondents. The hypotheses of the study were tested, ranging from data screening process, descriptive analyses,assessment of the measurement model, and assessment of the structural model. Current research proposed nine direct relationship of which all were accepted which indicates that the proposed impact between variables are statistically significant. Moreover Customer Commitment has shown a significant moderating effect which implies that it strengthens the relationship between customer involvement, engagement, and service quality. Further more, this research provides actionable recommendations for the management of commercial banks in Nigeria, emphasizing the importance of integrating Customer Relationship Management (CRM) strategies with Customer Commitment to enhance Service Quality.