1 Successful Customer Relationship Management Programs and Technologies: Issues and Trends Riyad Eid Wolverhampton University Business School, UK
2 Detailed Table of Contents Preface xv Chapter 1 Effective Implementation of Sales-Based CRM Systems: Theoretical and Practical Issues 1 George J. Avlonitis, Athens University of Economics and Business, Greece Nikolaos G. Panagopoulos, Athens University of Economics and Business, Greece Interest in sales technology (ST) and sales-based CRM systems has been increasing in recent years. Indeed, companies spend a great deal of their budgets in implementing CRM systems into their sales organizations. In spite of these investments, however, evidence has been accumulated suggesting a high failure rate of these implementations. Although a number of research studies have been published in this area, there has been no systematic attempt to integrate and synthesize the extant literature. Against this backdrop, this article seeks to increase knowledge in the area by offering a synthesis of prior work into (a) what companies need to consider to effectively implement a CRM system into the sales force, (b) how CRM's impact on a sales force's performance can be assessed, and (c) what key performance indicators (KPIs) might be incorporated into the system in order to aid managerial decision making processes. The authors' framework addresses issues of relevance not only for scholars but also for practicing managers by drawing on the authors' practical experience in this important area. As such, the article adds layers of knowledge for both theory and practice. Chapter 2 The Goals of Customer Relationship Management 15 Ronald E. Goldsmith, Florida State University, USA The present article proposes that the variety of existing managerial practices collectively described as "customer relationship management" can be organized and coordinated into a logical sequence of goals and methods that is more effective than performing them in an uncoordinated fashion. The model proposes that managers have five distinct but interrelated goals: customer acquisition, customer retention, customer development, customer consultation, and customer conversion. Although each goal can be achieved using distinct and well-known marketing practices, the model integrates the practices in a temporal and logical order in which achieving one goal contributes to achieving other goals. Integrating the procedures and technologies used at each stage results is a synergistic effort that should benefit companies and can guide empirical research.
3 Chapter 3 Global Account Management (GAM): Creating Companywide and Worldwide Relationships to Global Customers 27 Svend Hollensen, University of Southern Denmark, Denmark Vlad Stefan Wulff, University of Southern Denmark, Denmark Global account management (GAM) has become a critical issue for many multinational corporations that compete in a fast changing global market environment. In this article, we approach GAM from a benchlearning perspective, synthesize selected literature and examine an award winning case study in order to underline the importance of multilevel relationships in strategic business-to-business relationships. The purpose of this study is to address various issues related to multilevel relationships in strategic partnerships (e.g. the recruitment of the global account manager and his supporting team, turf wars and compensation) and suggest organisational solutions based on best-practice examples. Chapter 4 Can Firms Develop a Service-Dominant Organisational Culture to Improve CRM? 47 Jamie Burton, Manchester Business School, UK CRM is more than the tactical application of technology solutions; it is a broader strategic approach to managing customer relationships (Payne and Frow, 2005) in order to create value. This article will review the challenges of creating the right organisational context to manage the value exchange, in order to create the right level of value for the customer in the application of CRM.One of the reasons CRM initiatives have failed in the past has been a focus only on the value that the firm can gain from a relationship, without consideration of the benefits in terms of customer experience and their perception of value. With recognition that the customer plays an active role in service models and subsequently the work triumphed by Lusch and Vargo (2004; 2006a; 2008) around the importance of a service-dominant logic (S-DL) for marketing, it has been increasingly recognised that the customer's perception of valuein-use is facilitated by relationships with customers. However, traditionally managers have been trained to think from a product-dominated perspective and to create value offerings for (not with) the market. If application of service-dominant logic is to lead to firms developing competitive advantage through more effective co-creation of customer-perceived value, then firms need to attempt to 'manage' their organisational climate in order to support delivery of effective CRM solutions with a culture that enables and encourages staff to work to develop relationships that create value with customers that encourage those customers to stay in those relationships. Relevant literature across a number of research paradigms is reviewed and an agenda for future research is discussed. Chapter 5 Identifying the Determinants of Customer Retention in a Developing Country Context 69 Norizan Mohd Kassim, University of Qatar, Qatar Salaheldin Ismail, University of Qatar, Qatar Nor Asiah Abdullah, Multimedia University, Malaysia This paper investigates how image, perceived service quality and satisfaction determine customer retention in the retail banking industry in Malaysia. Data was obtained using a self-administered survey involving a convenience sample of 134 retail banking customers in Malaysia. The results show that image is
4 both directly and indirectly related to retention through satisfaction while perceived service quality is indirectly related to retention through satisfaction. The paper concludes that satisfaction is not the sole determinant of retention in retail banking. Some managerial implications of this research find that the interrelationships between the determinants (image, quality and satisfaction) allow bank managers to better understand the dynamics of customer retention formation. Chapter 6 Customer Relationship Management in Social and Semantic Web Environments 83 Angel Garcia-Crespo, Universidad Carlos III de Madrid, Spain Ricardo Colomo-Palacios, Universidad Carlos III de Madrid, Spain Juan Miguel Gomez-Berbis, Universidad Carlos Hide Madrid, Spain Fernando Paniagua Martin, Universidad Carlos Hide Madrid, Spain The growing influence of the Internet in current 21 st -century everyday life has implied a paradigm shift in terms of relationships between customers and companies. New interaction means in the Web 1.0 have undergone a dramatic change in quantity and quality with the advent of the so-called Web 2.0, the Social Web. The upcoming Web 3.0, the Semantic Web will also impact tremendously in how companies understand Customer Relationship Management (CRM). In this dynamic environment, the present work presents a combination of both Social and Semantic Web Technologies and their application in the particular field of CRM. Tool and technology analysis both prove the challenging opportunities for these cutting-edge innovation trends in the CRM domain. Chapter 7 CRM in the Context of Airline Industry: A Case Study of Mexican Airline 93 Riyad Eid, Wolverhampton University, UK Mustafa Zaidi, University of Veterinary & Animal Sciences, Pakistan The airline industry is known as high-tech industry that leads other business sectors, serving as a technological role-model. This paper proposes a conceptual model for Customer Relationship Management (CRM) implementation in the airline industry, using a case study of a Mexican airline. The authors provide new theoretical grounds for studying the CRM. This study is an empirical assessment of the CRM model and also assesses the basic phases of the CRM implementation which are 1) Information Phase, 2) Trust Phase and 3) Objectives Phase. Chapter 8 Role of Time in Development of Trust within Hi-Tech SME Business Relationships 101 Khurram Sharif Qatar University, Qatar Salaheldin Ismail Salaheldin, Helwan University, Egypt This study investigated the function of time (as a moderator, determinant or quasi moderator) within hi tech Small to Medium Sized Enterprise (SME) downstream (i.e., customer) trust-based relationships. A four antecedent (i.e., competence, transaction specific investments, flexibility and coercive power) research model was developed to represent trust within the SME business-to-business (b-to-b) relationships. Time was conceptualized chronologically as duration of a relationship in years. The model was empirically tested with 117 respondents from the UK Original Equipment Manufacturing (OEM) sector. The research
5 outcome supported a significant and positive moderating effect of time on competence to trust and flexibility to trust pathways. However, time had a negative moderating yet significant effect on the association between coercive power and trust. Correlation between Transaction Specific Investments (TSIs) and trust was significant but time showed neither moderating nor deterministic effect on the TSIs to trust link. Chapter 9 A Conceptual Model of Customer Innovation Centric 115 AminA. Shaqrah, Alzaytoonah University, Jordan Customer innovation centric is not only an important perspective on value-creation, but also a new strategy discipline that IT software companies in Jordan should embrace if they are pursue to enlargement successfully. Furthermore, customer experience, customers' community, customer knowledge, and customer innovation are influential variables for improving organizational learning from customer. In order to study this impact, the author uses cognitive fit theory to develop a model that describes how these variables will affect the success of organizational learning process to enhance products and/or services development, quality, and internal process improvement. Chapter 10 Customers Knowledge and Relational Marketing: A Web 2.0 Perspective 131 Pasquale Del Vecchio, University ofsalento, Italy Valentino Ndou, University ofsalento, Italy The radical changes occurring in the global business environment, that is, in the information technology field and in management practices, call for a general rethinking of firms strategic positioning and competition. In this scenario, firms having the capacity to manage all of their own intellectual assets seem to be the only way to survive and succeed. The ability to comprehend the role that customers can play in contributing to a firm's value creation is one of the main elements behind the growing attention of researchers and managers in context to managing a firm's relationship with customers. This paper highlights the relevance of a Customers Relationship Management (CRM) issue in a Knowledge Management perspective as well as in Relational Marketing. In addition, this study shows how the rising and large adoption of Web 2.0 technologies represents a real opportunity for the effective implementation of a CRM strategy. Chapter 11 Customer Relationship Management through Communication Strategy: Fibres Industry Case Study 145 Abdel Moneim M. B. Ahmed, Abu Dhabi University, UAE Changes in today's organisations are often necessary for survival due to the world becoming smaller and the threat from foreign imports becoming more apparent to businesses. Often the most damaging element of this foreign threat is the low costs at which they can operate. Many factors, including inexpensive labour, exchange rates and economies, make production more efficient and reduce the overall costs significantly to enable a significant competitive edge. For example, Fibres is a polyester manufacturer who faces this threat and has realised the need for change towards more speciality products with differentials other than price. However, this will involve major changes in production, including the production methods and the adoption of TQM to ensure that the differential of quality is utilized. This
6 paper examines communication as an enabler for change and studies the current communication methods within the company against the desired improvement processes from groups within those companies, culminating in a targeted internal marketing strategy to aid future business changes. Chapter 12 Media Richness Theory and the Intention to Use Online Stores 156 Eric Brunelle, HEC Montreal, Canada Although media richness theory has received considerable empirical support in explaining individual channel use and could provide important insights into the explanation of e-consumer behavior, no studies have validated this theory in explaining consumers' intentions to use online stores. Therefore, the objective of this study was to empirically test media richness theory in explaining consumers' intentions to use online stores in their purchase process. An online survey was carried out and data from 749 consumers was collected and analyzed using structural equation models. The results open up a new way of explaining consumers' intentions to use online stores, as they provide empirical support for media richness theory in a commercial context and link it with the theory of planned behavior. Chapter 13 Do Managerial Strategies Influence Service Behaviours? Insights from a Qualitative Study 174 Anna-Lena Ackfeldt, Aston University, UK Neeru Malhotra, Aston University, UK Based on a review of the extant literature, a conceptual framework for analyzing the associations between managerial strategies (internal communications, empowerment, supportive leadership and professional development), employee job attitudes (organizational commitment and job satisfaction) and prosocial service behaviours (PSBs) is developed. The authors explore the relevance of the proposed conceptual model and testable propositions regarding the associations between managerial strategies, employee attitudes and PSBs by conducting in-depth interviews of FLEs in a travel service organization. Based on the findings of the in-depth interviews, the relationships between managerial strategies, job attitudes and PSBs in the conceptual framework are largely supported. Chapter 14 Applications of Customer Relationship Marketing in the UK Hospitality Industry 188 Geoff Lancaster, London School of Commerce, UK Diana Luck, London Metropolitan University, UK This paper aims to research the hospitality industry to gauge dimensions of Customer Relationship Management (CRM) that resonate with guests and employees. An uncovering of perceptual differences of hotel guests and employees was sought to assess its application within the London hotel industry and to investigate CRM as an emerging concept. The global hotel market contains many brands and partnerships, and CRM is significant, because differentiation becomes easier for those with potential to develop long-term customer relationships. Despite being differentiated by star ratings, most hotels in London offer similar core products and services. In this regard, development of relationships with customers can be considered emphatic to the London hotel industry. Methodologically, triangulation of data and theories was used in this paper to investigate staff and customers. A standardised questionnaire gauged
7 elements regarded as being part CRM with the objective to assess differential CRM perceptions and their relevancy to the hotel industry in contemporary terms. Findings suggest CRM become an integral part of a hotel's offerings and operations. Chapter 15. Determinants and Antecedents of Relationship Marketing Orientation: The Impact of Bank Ownership Style on the Bank's Orientation towards Relationship Marketing 210 AhmedAbdelkader, Mansoura University, Egypt Howard Jackson, Huddersfield University, UK John Cook, Huddersfield University, UK This study investigates the extent of Relationship Marketing Orientation (RMO) in the banking sector of Egypt. The need to deliver a superior value to bank customers has assumed paramount importance as competition intensifies at a fast pace and local consumers become more demanding. This study attempts to answer whether the bank's ownership style will influence the extent of the bank's relationship marketing orientation. This empirical study of 32 Egyptian banks is based on the antecedents and determinants of RMO elected from the literature. Findings suggest that different ownership of a bank may exert a different emphasis on RMO. The study reports that RMO is determined by ten antecedents of relationship marketing. Chapter 16 Consumer Demand in the Egyptian Market of University Education: An Empirical Investigation :'. 232 Amany I. Shahin, Helwan University, Egypt This study explores consumer demands in the Egyptian market of university education. Three aspects discussed are the value of university education in Egyptian culture, consumer perceptions regarding the quality of university education, and consumer preferences regarding the university education service. Results of the empirical investigation indicate that university education is highly regarded in Egyptian culture, however, consumer's perception of its quality is moderate. Consumers prefer university studies in courses taught in the English language, universities in a nearby geographical location, governmental universities, and top class faculties. The study focuses on university education in Egypt and the authors hope to shed light on higher education in countries that share the same cultural characteristics. Many studies investigated higher education in different cultures, yet relatively few have considered it in an emerging nation. The present study addresses this gap. Chapter 17 A Cluster Analysis of Physician's Values, Prescribing Behaviour and Attitudes towards Firms' Marketing Communications 250 Despina Karayanni, University ofpatras, Greece In this paper, the authors present an exploratory research on the associations between physicians' personal values with physicians' prescribing criteria and preferred marketing communications. The research involved extant marketing research and primary data collection. The resulting quantitative research instrument was then administered to a sample of 69 physicians, yielding a 69% response rate. All but
8 the demographic measures were tapped by 5-point scales and a series of factor and reliability analyses assessed unidimentionality and reliability of research constructs. A series of ANOVAs and Tukey tests depicted the differences among three clusters. Implications are that physicians' personal values may be a meaningful basis of segmentation for the pharmaceutical market, and findings may be useful for both marketing strategy planners and researchers examining physicians' prescription behavior and attitudes towards firms' marketing communication efforts. Chapter 18 Adoption of Electronic Payment Services by Iranian Customers 268 Abbas Keramati, University of Tehran, Iran Bahar Hadjiha, Tarbiat Modares University, Iran and Lulea University of Technology, Sweden Rose Taeb, Lulea University of Technology, Sweden Navid Mojir, University of Tehran, Iran The objective of this paper is to investigate customers' adoption of Electronic payment services. This study contributes to existing e-payment and adoption research by presenting a detailed description of factors that enhance and inhibit electronic payment adoption. The proposed conceptual model has been developed based on TAM, diffusion of innovation and PCI models, and adding the factors of security, cost, perceived risk, culture, trust, service quality and network externalities. The model has been examined by using a questionnaire within the Iran context. Based on obtained results, practical implications and suggestions for Iran banks and financial institutions are discussed. Compilation of References 286 About the Contributors 325 Index 333