Implementing CRM in nursing homes: the effects on resident satisfaction

Purpose - The present study evaluates the effects of four-component customer relationship management (CRM) on nursing home resident satisfaction by incorporating residents' perceptions of service quality regarding physical environment and interaction with staff members in the nursing home. It also explores the mediating role of service quality between CRM and resident satisfaction. Design/methodology/approach - A conceptual two-level model that links CRM to resident satisfaction was developed and tested using data collected from nursing staff and residents in nursing homes in Taiwan. Data from 481 residents involving 45 nursing homes was collected via a questionnaire and analyzed using hierarchical linear modeling. Findings - The results of this study show that most CRM components help nursing homes improve service quality and that perceived service quality positively influences resident satisfaction. This study also provides empirical support for the hypotheses that CRM helps nursing homes improve resident satisfaction through improving physical environment quality (PEQ) and interaction quality (IQ). Research limitations/implications - The findings highlight the importance of other aspects of CRM, not just information-technology-based CRM, to help nursing home staff provide customized offerings to residents and subsequently increase resident satisfaction with the nursing home. This research also points to PEQ and IQ as mediating mechanisms that can explain the association between CRM and resident satisfaction in the nursing home context. Originality/value - This research investigate the beneficial effects of CRM by relating the comprehensive set of CRM components to service quality and resident satisfaction at the individual level. In addition, the present study points to residents' perceptions of service quality as one of several mediating mechanisms that explains the association between CRM and resident satisfaction.