A new hybrid method based on fuzzy Shannon’s Entropy and fuzzy COPRAS for CRM performance evaluation (Case: Mellat Bank)

Document Type: Research Paper

Authors

1 Faculty of Management, University of Tehran

2 Farabi Campus University of Tehran

Abstract

Customer relationship management is a multiple perspective business paradigm which helps companies gaining competitive advantage through relationships with their customers. An integrated framework for evaluating CRM performance is an important issue which is not addressed completely in previous studies. The main purpose and the most important contribution of this study is introducing a framework based on the integration of two novel MCDM methods. In this regard, first, by the survey of related literature, five main criteria of the CRM performance measurement were identified. In the second step, by means of judgmental sampling, a committee of 20 experts of Mellat Bank and its three subsidiary branches were formed and their idea about the importance of the five CRM evaluation criteria was extracted through questionnaire. Fuzzy Shannon’s entropy was applied for calculating the relative importance. In the third step, for demonstrating the applicability of the model three subsidiary branches which were applying CRM systems, were ranked by fuzzy COPRAS based on their CRM performance.

Keywords

Main Subjects


Article Title [Persian]

ارائه یک روش ترکیبی نوین براساس آنتروپی شانون فازی و کپراس فازی به منظور ارزیابی عملکرد مدیریت ارتباط با مشتری (مورد مطالعه: بانک ملت)

Authors [Persian]

  • الهام ابراهیمی 1
  • محمدرضا فتحی 1
  • حمیدرضا ایرانی 2
1 دانشکده مدیریت دانشگاه تهران
2 پردیس فارابی دانشگاه تهران
Abstract [Persian]

مدیریت ارتباط با مشتری یک پارادایم چندبعدی در کسب و کار است که به سازمان‌ها کمک می‌کند از طریق ارتباط با مشتریان خود مزیت رقابتی کسب کنند. هدف اصلی این مقاله ارائه یک مدل مناسب جهت ارزیابی عملکرد مدیریت ارتباط با مشتری با استفاده از روش‌های تصمیم‌گیری چند شاخصه فازی است. در این راستا، ابتدا از طریق مطالعه کامل ادبیات تحقیق پنج شاخص اصلی ارزیابی عملکرد مدیریت ارتباط با مشتری شناسایی شد. در گام دوم با استفاده از روش نمونه‌گیری قضاوتی کمیته‌ای 20 نفره از متخصصین سه شعبه بانک ملت تشکیل شده و نظرات آنان در مورد اهمیت شاخص‌های اصلی ارزیابی عملکرد مدیریت ارتباط با مشتری از طریق پرسشنامه اخذ گردید. سپس با استفاده از روش آنتروپی شانون فازی اوزان این پنج شاخص محاسبه شد. در گام سوم به منظور نشان دادن کاربست پذیری مدل، سه شعبه بانک که از سیستم‌های مدیریت ارتباط با مشتری استفاده می‌کردند با استفاده از روش فازی کپراس براساس عملکردشان در زمینه مدیریت ارتباط با مشتری رتبه‌بندی شدند.

Keywords [Persian]

  • مدیریت ارتباط با مشتری
  • ارزیابی عملکرد
  • تصمیم گیری چندشاخصه
  • آنتروپی
  • کپراس
Al-Safi, A.M., Al-Safadi, L., & Al-Mudimigh, A. (2012). “CRM Scorecard - CRM Performance Measurement”. Networked Computing and Advanced Information Management, 2(1), 8-21.
Adebanjo, D. (2001). “Understanding customer satisfaction – a UK food industry case study”. British Food Journal, 103(1), 36-45.
Agustin, C. & Singh, J. (2005). “Curvilinear effects of consumer loyalty determinants in relational exchange”. Journal of Marketing Research, 42(1), 96−108.
Ahmed, A., Ahmed, N. & Salman, N. (2005). “Critical issues in packaged food business”. British Food Journal, 107(10), 760-780.
Augusto de Matos, C., Luiz Henrique, J. & de Rosa, F. (2009). “The different roles of switching costs on the satisfaction-loyalty relationship”. Bank Marketing, 27(7), 506-523.
Beasty, C. (2006). How sales teams should use CRM. Destination CRM, Feature.
Boulding, W., Staelin, R., Ehret, M. & Johnston, W. (2005). “A Customer Relationship Management Roadmap: What Is Known, Potential Pitfalls, and Where to go”. Journal of Marketing, 69(4), 155–166.
Buttle, F. (2004). Customer relationship management: Concept and tools. MA: Elsevier.
Chen, I. & Popovich, K. (2003). “Understanding customer relationship management (CRM): People processes and technology”. Business Process Management Journal, 9(5), 672–688.
Chen, S. & Hwang, C. (1992). Fuzzy Multiple Attribute Decision Making: Methods and applications. Springer-Verlag, New York.
Cheng, H., Wong, K. & Fang, P. (2014). “The Effects of Customer Relationship Management Relational Information Processes on Customer-based Performance”. Decision Support Systems, 66, October, 146-159.
Curry, A. & Kkolou, E. (2004). “Evaluating CRM to contribute to TQM improvement – a cross-case comparison”. The TQM Magazine, 16(5), 314-324.
Dabholkar, P. & Abston, K. (2008). “The role of customer contact employees as external customers: a conceptual framework for marketing strategy and future research”. Journal of Business Research, 61(9), 959-967.
Daniels, S. (2000). “Customer value management”. Work Study Journal, 49(2), 67-70.

Deng, H. (2007). A Similarity-Based Approach to Ranking Multicriteria Alternatives. Springer-Verlag, Berlin Heidelberg, pp.253-262.
Espejel, J., Fandos, C. & Flavian, C. (2009). “The influence of consumer involvement on quality signals perception, an empirical investigation in the food sector”. British Food Journal, 111(11), 1212-1236.
Evans, J. R. & Laskin, R. L. (1994). “The relationship marketing process: A conceptualization and application”. Industrial Marketing Management, 23(5), 439−452.
Farquhar, J. & Panther, T. (2008). “Acquiring and retaining customers in UK banks: an exploratory study”. Journal of Retailing and Consumer Services, 15(1), 9-21.
Fendy, I. P., Handoko, F. & Gaol, L. (2012). “Performance Evaluation of CRM System Based on Cloud Computing”. Applied Mechanics and Materials, 23(4), 110-123.
Giannakis-Bompolis, C. & Boutsouki, C. (2014). “Customer Relationship Management in the Era of Social Web and Social Customer: An Investigation of Customer Engagement in the Greek Retail Banking Sector”. Procedia - Social and Behavioral Sciences, 148, 67-78.
Haemoon, O. (1999). “Service quality, customer satisfaction, and customer value: a holistic perspective”. International Journal of Hospitality Management, 18(1), 67-82.
Harris, L. & Ogbonna, E. (2001). “Competitive advantage in the UK food retailing sector: past, present and future”. Journal of Retailing and Consumer Services, 8(3), 157-173.
Hidalgo, P., Manzur, E., Olavarrieta, S. & Farias, P. (2008). “Customer retention and price matching: the AFPs case”. Journal of Business Research, 61(6), 691-696.
Hosseinzadeh Lotfi, F. & Fallahnejad, R. (2010). “Imprecise Shannon’s entropy and multi attribute decision making”. Entropy, 12(1), 53-62.
Hwang, C. & Yoon, K. (1981). Multiple Attribute Decision Making: Theory and Applications. Springer-Verlag, New York.
Jinzhao A. (2010). “Evaluation of Customer Relationship Management’s Performance under Networked Manufacturing”. International Journal of Business and Management, 5(1), 156-159.
Jones, E., Brown, S., Zoltners, A. & Weitz, B. (2005). “The changing environment of selling and sales management”. Journal of Personal Selling and Sales Management, 25(2), 105-111.
Kaklauskas, A., Zavadskas, E. K., Naimavicienė, J., Krutinis, M., Plakys, V. & Venskus, D. (2010). “Model for a Complex Analysis of Intelligent Built Environment”. Automation in Construction, 19(3), 326–340.

Karsak, E. E. (2002). “Distance-based fuzzy MCDM approach for evaluating flexible manufacturing system alternatives”. International Journal of Production Research, 40(13), 3167–3181.
Kara, S.S. (2011). “Supplier selection with an integrated methodology in unknown environment”. Expert Systems with Applications, 38(3), 2133-2139.
Kaufmann, A. & Gupta, M. M. (1988). Fuzzy mathematical models in engineering and management science. Amsterdam: North-Holland.
Khodakarami, F. & Chan, Y.E. (2014). “Exploring the role of customer relationship management (CRM) systems in customer knowledge creation”. Information Management, 51(1), 27-42.
Kim, H.-S. & Kim, Y.-G. (2009). “A CRM performance measurement framework: Its development process and application”. Industrial Marketing Management, 38(4), 477–489.
Kim, G., Park, C. & Yoon, K. (1997). “Identifying investment opportunities for advanced manufacturing systems with comparative-integrated”. International Journal of Production Economics, 50(1), 23-33.
Kotler, P. (2000). Marketing management. Printice Hall: NJ.
Krasnikov, A., Jayachandran, S. & Kumar, V. (2009). “The Impact of Customer Relationship Management Implementation on Cost and Profit Efficiencies: Evidence from the U.S. Commercial Banking Industry”. Journal of Marketing, 73(6), 61-76.
Lebas, M. (1995). “Performance measurement and performance management”. Production Economics, 41(1), 23–25.
Liou, J. (2009). “A novel decision rules approach for customer relationship management of the airline market”. Expert Systems with Applications, 36(3), 4374–4381.
Mihelis, G., Grigoroudis, E., Siskos, Y., Politis, Y. & Malandrakis, Y. (2001). “Customer satisfaction measurement in the private bank sector”. European Journal of Operational Research, 130(2), 347-360.
Nguyen, T., Sherif, J. & Newby, M. (2007). “Strategies for successful CRM implementation”. Information Management and Computer Security, 15(2), 102-115.
Ocker, R. & Mudambi, S. (2003). “Assessing the readiness of firms for CRM: A literature review and research model”. Proceedings of the 36th hawaii international conference on system sciences. Los Alamitos: IEEE Computer Society.
Odekerken-Schro¨der, G., Wulf, K. & Schumacher, P. (2003). “Strengthening outcomes of retailer-consumer relationships: the dual impact of relationship marketing tactics and consumer personality”. Journal of Business Research, 56(3), 177-190.

Önüt, S. & Soner, S. (2008). “Transshipment site selection using the AHP and TOPSIS approaches under fuzzy environment”. Waste Management, 28(9), 1552-1559.
Öztaysi, B., Kaya, T. & Kahraman, C. (2011). “Performance comparison based on customer relationship management using analytic network process”. Expert Systems with Applications, 38(8), 9788–9798.
Reinartz, W., Krafft, M. & Hoyer, W. (2004). “The customer relationship management process: Its measurement and impact on performance”. Journal of Marketing Research, 41(3), 293–305.
Richards, K. & Jones, E. (2008). “Customer relationship management: Finding value drivers”. Industrial Marketing Management, 37(2), 120–130.
Saaty, T.L. )1980(. The Analytic Hierarchy Process. McGraw-Hill Book Company, New York.
Safari, H. & Ebrahimi, E. (2014). “Using Modified Similarity Multiple Criteria Decision Making technique to rank countries in terms of Human Development Index”. Journal of Industrial Engineering and Management, 7(1), 254-275.
Safari, H., Faghih, A. & Fathi, M.R. (2013). “Integration of Graph Theory and Matrix Approach with Fuzzy AHP for Equipment Selection”. Journal of Industrial Engineering and Management, 5(3), 447-465.
Shafia, M., Mazdeh, M., Vahedi, M. & Pournader, M. (2011). “Applying fuzzy balanced scorecard for evaluating the CRM performance”. Industrial Management and Data, 111(7), 1105-1135.
Shih, H., Shyur, H., & Lee, E. (2007). “An extension of TOPSIS for group decision making”. Mathematical and Computer Modelling, 45, 801-813.
Shwu-Ing W. & Jr-Ming H. (2008). “A performance evaluation model of CRM on non-profit organizations”. Total Quality Management and Business Excellence, 19(4), 321-342.
Sin, L., Tse, A. & Yim, F. (2005). “CRM: conceptualization and scale development”. Marketing, 39(11-12), 1264–1290.
Sirikrai, S. & Tang, J. (2006). “Industrial competitiveness analysis: using the analytic hierarchy process”. Journal of High Technology Management Research, 17(1), 71-83.
Stefanou, C., Sarmaniotis, C. & Stafyla, A. (2003). “CRM and customer-centric knowledge management: An empirical research”. Business Process Management Journal, 9(5), 55-66.

Sun, Ch.Ch. & Lin, G.T.R. (2009). “Using fuzzy TOPSIS method for evaluating the competitive advantages of shopping websites”. Expert Systems with Applications, 36(9), 11764-11771.
Sun, Ch.Ch. (2010). “A performance evaluation model by integrating fuzzy AHP and fuzzy TOPSIS methods”. Expert Systems with Applications, 37(12), 7745-7754.
Taghizadeh, M. & Rajabani, N. (2014). “Identification and ranking the effective factors on CRM performance by using of BSC and Fuzzy AHP”. International Journal of Business Management and Economics, 1(1), 49-55. (In Persian)
Tanner, J., Ahrearne, M., Mason, C. & Moncrief, W. (2005). “CRM in salesintensive organizations: A review and future directions”. Journal of Personal Selling and Sales Management, 25(2), 171–182.
Verhoef, P. (2003). “Understanding the effect of customer relationship management efforts on customer retention and customer share development”. Journal of Marketing, 67(4), 30-45.
Winer, R. (2001). “A framework for customer relationship management”. California Management Review, 43(4), 89–105.
Woodcock, N., Stone, M. & Foss, B. (2003). The customer management scorecard: Managing CRM for profit. London: Kogan Page.
Zadeh, L. A. (1965). “Fuzzy sets”. Information and Control, 8(3), 338–353.
Zadeh, L. A. (1975). “The concept of a linguistic variable and its application to approximate reasoning-I”. Information Sciences, 8(3), 199–249.
Zavadskas, E.K. & Kaklauskas, A. (1996). Determination of an efficient contractor by using the new method of multicriteria assessment. In Langford, D. A.; Retik, A. (eds.) International Symposium for The Organization and Management of Construction. Shaping Theory and Practice. Vol.2: Managing the Construction Project and Managing Risk. CIB W 65; London, Weinheim, New York, Tokyo, Melbourne, Madras. - London: E and FN SPON: 94-104.
Zhang, M. & Lado, A. (2001). “Information systems and competitive advantage: a competency-based view”. Technovation, 21(3), 147-156.
Zhou, J., Yu, T., Zhang, Y., Dong, S. & Wang, W. (2008). “System of CRM Performance Evaluation Based on Fuzzy Comprehensive Algorithm”. International Conference on Information Management. pp.382-385.
Zikmund, W., McLeod, R. & Gilbert, F. (2003). Customer relationship management: Integrating marketing strategy and information technology. NJ: John Wiley and Sons.
Zineldin, M. (2006). “The royalty of loyalty: CRM, quality and retention”. Journal of Consumer Marketing, 23(7), 430-437.