Pages: 76-92

Abstract

The current work is an investigation into the effect of customer relationship management on an organization’s competitive advantage, considering the mediating variable of customer loyalty. The statistical population of the study was composed of the customers of the branches of Alborz Insurance Company, Tehran, Iran. According to Cochran formula, the sample size in the study is 384 among whom questionnaires were distributed randomly. This is a descriptive survey conducted using field methods. Data collection instrument in the study was a three-page questionnaire with 31 items, including three questionnaires which were localized based on the questionnaires of customer relationship management standard, customer loyalty and gaining competitive advantage. After collecting the research data based on the research hypotheses, we analyzed the data using the confirmatory factor analysis (CFA) and structural equation modeling. The results of this study illustrated that customer relationship management and its dimensions have a positive impact on loyalty. Loyalty, in turn, has a positive impact on competitive advantage. In addition, the results obtained from the structural equations indicate the positive impact of customer relationship management, through loyalty, on competitive advantage. Relying upon the findings of the research, we suggest that the management of Alborz Insurance Company update its knowledge base with the help of its specialized team to improve the management of customer relationship. This will require more workforce, more up-to-date communication tools for creating loyalty among their customers to gain a better competitive advantage.