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Showing papers on "Customer relationship management published in 2011"


Journal ArticleDOI
TL;DR: The authors explored the theoretical foundations of customer engagement by drawing on relationship marketing theory and the service-dominant (S-D) logic, and developed a general definition of CE, and distinguish the concept from other relational concepts, including participation and involvement.
Abstract: In today’s highly dynamic and interactive business environment, the role of “customer engagement” (CE) in cocreating customer experience and value is receiving increasing attention from business practitioners and academics alike. Despite this interest, systematic scholarly inquiry into the concept and its conceptual distinctiveness from other, associated relational concepts has been limited to date. This article explores the theoretical foundations of CE by drawing on relationship marketing theory and the service-dominant (S-D) logic. The analysis also examines the use of the term “engagement” in the social science, management, and marketing academic literatures, as well as in specific business practice applications. Five fundamental propositions (FPs) derived from this analysis are used to develop a general definition of CE, and distinguish the concept from other relational concepts, including “participation” and “involvement.” The five propositions are used in the development of a framework for future r...

2,390 citations


Journal ArticleDOI
TL;DR: It is found that information management capability plays an important role in developing other firm capabilities for customer management, process management, and performance management and favorably influence customer, financial, human resources, and organizational effectiveness measures of firm performance.
Abstract: How do information technology capabilities contribute to firm performance? This study develops a conceptual model linking IT-enabled information management capability with three important organizational capabilities (customer management capability, process management capability, and performance management capability). We argue that these three capabilities mediate the relationship between information management capability and firm performance. We use a rare archival data set from a conglomerate business group that had adopted a model of performance excellence for organizational transformation based on the Baldrige criteria. This data set contains actual scores from high quality assessments of firms and intraorganizational units of the conglomerate, and hence provides unobtrusive measures of the key constructs to validate our conceptual model. We find that information management capability plays an important role in developing other firm capabilities for customer management, process management, and performance management. In turn, these capabilities favorably influence customer, financial, human resources, and organizational effectiveness measures of firm performance. Among key managerial implications, senior leaders must focus on creating necessary conditions for developing IT infrastructure and information management capability because they play a foundational role in building other capabilities for improved firm performance. The Baldrige model also needs some changes to more explicitly acknowledge the role and importance of information management capability so that senior leaders know where to begin in their journey toward business excellence.

781 citations


Journal ArticleDOI
TL;DR: In this paper, the authors present the augment of the authors, who are IBM consultants, that companies need to meld social media programs with customer relationship management (CRM) to facilitate collaborative social experiences and dialogue that customers value.
Abstract: Purpose – The purpose of this paper is to present the augment of the authors, who are IBM consultants, that companies need to meld social media programs with customer relationship management (CRM). This new paradigm – Social CRM – recognizes that instead of just managing customers, the role of the business is to facilitate collaborative social experiences and dialogue that customers value.Design/methodology/approach – Social media holds enormous potential for companies to get closer to customers and, by doing so, increase revenue, cost reduction and efficiencies. However, using social media as a channel for customer engagement will fail if the traditional CRM approaches are not reinvented,Findings – According to IBM research, there is a large perception gap between what the customers seek via social media and what companies offer. Consumers are far more interested in obtaining tangible value, suggesting businesses may be confusing their own desire for customer intimacy with consumers' motivations for enga...

501 citations


Posted Content
TL;DR: In this article, the authors re-examine the commitment-trust theory (CTT) of relationship marketing in the online retailing context and propose a modified model to understand the role of consumer trust and commitment in a digitized environment.
Abstract: Purpose: Trust and commitment are the central tenets in building successful long-term relationships in the online retailing context. In the absence of physical interaction between the buyer and the seller, how websites can gain the trust of the buyers and deliver on the promises made have become central issues in online customer relationship management. This paper aims to re-examine the commitment-trust theory (CTT) of relationship marketing in the online retailing context. It seeks to theorize the antecedents and consequences of commitment and trust in the online context and identify how CTT can be adapted in a digitized business environment. Design/methodology/approach: Modified constructs and their measures are developed to understand the antecedents and the outcomes of commitment and trust. Survey data from British online customers (n ¼ 651) are used to test CTT hypotheses with structural equation modelling. Findings: The study suggests a significant modification to the traditional CTT model in the online environment. Privacy and security features of the website along with shared values are the key antecedents of trust, which in turn positively influences relationship commitment. Behavioural intentions of customers are consequences of both trust and commitment. The relationship termination cost has a negative impact on customer commitment. Research limitations/implications: The paper identifies interesting differences between the original work by Morgan and Hunt and the findings presented, but basically concludes that the commitment-trust theory applies to online retailing. Originality/value: Contributions of this study in re-examining the CTT model of relationship marketing in an online context are manifold. This paper proposes a modified model to understand the role of consumer trust and commitment in a digitized environment. The modified constructs and measures truly reflect the dynamism of online business. The extended CTT model can provide better insight into managing customer relationships in online retailing.

497 citations


Journal ArticleDOI
TL;DR: This paper examined the daily relationship between customers' mistreatment of employees and employee sabotage of customers, as well as employees' individual and individual-and resource perspectives, taking emotion and resource perspectives.
Abstract: Taking emotion and resource perspectives, we examined the daily relationship between customers' mistreatment of employees and employee sabotage of customers, as well as employees' individual- and u...

385 citations


Book
03 May 2011
TL;DR: In this paper, the authors present a survey on Online and Virtual Experiences, focusing on the key concepts of experience marketing, including the concept of the Experience Concept, the Experience Management, and the Experience and Happiness.
Abstract: 1. Introduction. 2. The Experience Concept. 3. Key Concepts of Experience Marketing. 4. Consumer Research Issues. 5. Customer Experience Management. 6. Research on Online and Virtual Experiences. 7. Experience and Happiness. Conclusions

258 citations


Journal ArticleDOI
TL;DR: It is pointed out that having knowledge management capabilities is not sufficient for the success of CRM, but there are other factors to consider, and organizational factors indeed impact CRM success.

251 citations


Journal ArticleDOI
TL;DR: In this paper, the authors developed a conceptual framework in which multiple facets of CRM are linked to new product and company performance and found that CRM has a positive effect on new product performance and further, this effect is moderated by CRM reward systems but not CRM technology.
Abstract: Customer Relationship Management (CRM) is widely accepted as an effective approach for collecting, analyzing, and translating valuable customer information into managerial action. However, the potential of CRM has been investigated only in the context of existing products. CRM’s potential to aid in future new product development (NPD) has been neglected. We develop a conceptual framework in which multiple facets of CRM are linked to new product and company performance. We test this model based on a cross-functional sample consisting of 115 R&D and 122 Marketing managers from firms spanning multiple industries. The results provide evidence that CRM has a positive effect on new product performance and further, that this effect is moderated by CRM reward systems but not CRM technology. We also show that new product performance mediates the relationship between CRM and company performance. These findings have important implications for research and practice in both the CRM and NPD areas.

226 citations


Journal ArticleDOI
TL;DR: In this paper, a more comprehensive model that focuses on the relationship between the social environment (employee displayed emotion and customer climate) and the physical environment (ambient and design factors) and resulting customer emotion and service outcomes was developed and tested.
Abstract: Purpose – Previous research on the relationship between service environments and customer emotions and service outcomes has focused on the physical environment. Among studies exploring the social environment, the emphasis has been on service employees, ignoring the impact of other customers. Recent research has further called for the need to include displayed emotion within the social environment. Therefore, this study aims to develop and test a more comprehensive model that focuses on the relationship between the social environment (employee displayed emotion and customer climate) and the physical environment (ambient and design factors) and resulting customer emotion and service outcomes.Design/methodology/approach – Based on past research, a theoretical framework was developed to propose the links between social/physical environments and customer emotion/perceptions. Extant research from various academic fields, including environmental psychology, was reviewed, deriving 11 hypotheses. Data collected fr...

216 citations


Journal ArticleDOI
TL;DR: In this article, the authors integrated affective and cognitive contributors to customer satisfaction and relationship quality in explaining customers' behavioral intentions in a questionnaire survey of full-service restaurant customers in a selected US metropolitan area.
Abstract: Purpose – This study aimed at investigating factors that contribute to increasing full‐service restaurant customers' behavioral intentions. Unlike previous research, this study integrated both affective and cognitive contributors to customer satisfaction and relationship quality in explaining customers' behavioral intentions.Design/methodology/approach – Data were obtained through a questionnaire survey of full‐service restaurant customers in a selected US metropolitan area. The data were subjected to structural equation modeling through the AMOS 5 program.Findings – Among the nine hypothesized paths, six were supported and three new paths were included to improve the model fit. Affect is noted to be a major contributor to both customer satisfaction and behavioral intentions. Customer satisfaction is a direct antecedent to trust but indirect to commitment. Noteworthy is the direct impact of service encounter performance on customer satisfaction.Research limitations/implications – Despite making use of a s...

214 citations


Journal ArticleDOI
TL;DR: In this paper, the impact of customer integration on efficiency and the moderating role of supplier integration was analyzed in a sample of 200 manufacturing plants and two hypotheses were tested through a hierarchical regression analysis.
Abstract: Purpose – This research intends to investigate whether there are synergies that a firm could or should exploit by simultaneously implementing customer and supplier integration. In particular, the aim is to analyze the impact of customer integration on efficiency, and the moderating role of supplier integration.Design/methodology/approach – This study analyzes data from a sample of 200 manufacturing plants. Two hypotheses are tested through a hierarchical regression analysis. Customer and supplier integration constructs consider items related to different aspects of the integration (e.g. sharing of production plans and customers' forecasts, feedback on performance, communication on quality considerations and design changes, joint quality improvement efforts, close contact, partnerships). The focus of the integration clearly extends beyond the dyad, as it includes the integration of focal operations upstream and downstream, with both suppliers and customers.Findings – Supplier integration positively moderat...

Journal ArticleDOI
TL;DR: In this article, the authors used an investigative study aimed at identifying the organisational, technical and data quality related factors influencing CRM adoption by SMEs, which will enhance the quality of the evaluation process.

Journal ArticleDOI
TL;DR: In this paper, the authors analyzed 743 travel blogs that contain the phrase "pleasant surprise", "delightful surprise", ''excellent surprise'' or ''positive surprise'' and found that the most frequent cause of guest delight in the hotel sector appears to be customer service, followed by cleanliness.
Abstract: Distinct from satisfaction, delight occurs when a customer receives a positive surprise beyond his or her expectations. Because of strong correlations with repurchase intention and positive word of mouth, customer delight is a quintessentially germane topic of inquiry. This study illustrates that determinants of customer delight in tourism venues can be identified through travel blog analysis. Using the hotel sector as the context, this research text-mines and content-analyzes 743 pertinent travel blogs that contain the phrase “pleasant surprise,” “delightful surprise,” excellent surprise,” or “positive surprise” and finds that the most frequent cause of guest delight in the hotel sector appears to be customer service, followed by cleanliness. In addition, this study also finds that triggers of delight are statistically different for domestic versus international travel and for travelers to more-developed versus less-developed countries. Based on the study’s findings, the article concludes with a presenta...

Journal ArticleDOI
TL;DR: A model to understand the antecedents, contingencies, and consequences of customer service employees' extended use of customer relationship management (CRM) technologies is developed and it is found that extended use amplifies employees' service capacity, leading to better objective performance.
Abstract: How can firms extract value from already-implemented information technologies (IT) that support the work processes of employees? One approach is to stimulate employees to engage in post-adoptive extended use, i.e., to learn and apply more of the available functions of the implemented technologies to support their work. Such learning behavior of extending functions in use is ingrained in a process by which users make sense of the technologies in the context of their work system. This study draws on sensemaking theory to develop a model to understand the antecedents, contingencies, and consequences of customer service employees' extended use of customer relationship management (CRM) technologies. The model is tested using multisource longitudinal data collected through a field study of one of the world's largest telecommunications service providers. Our results suggest that employees engage in post-adoptive sensemaking at two levels: technology and work system. We found that sensemaking at both of these levels impacts the extended use of CRM technologies. Employees' sensemaking at the technology level is influenced by employees' assessment of technology quality, whereas employees' sensemaking at the work system level is influenced by customers' assessment of service quality. Moreover, in the case of low technology quality and low service quality, specific mechanisms for employee feedback should be conceptualized and aligned at two levels: through employee participation at the technology level and through work system coordination at the work system level. Such alignment can mitigate the undesirable effect of low technology quality and low service quality, thereby facilitating extended use. Importantly, we found that extended use amplifies employees' service capacity, leading to better objective performance. Put together, our findings highlight the critical role of employees' sensemaking about the implemented technologies in promoting their extended use of IT and improving their work performance. This paper was accepted by Sandra Slaughter, information systems.

Journal ArticleDOI
TL;DR: A better term is community relationship management (that is, CoRM) because it more accurately reflects what people do in online communities -connect, converse, create and collaborate as mentioned in this paper.
Abstract: Despite the growth in social media, managers are still unclear as to how it can be used to benefit their organisations. Part of the problem stems from confusing customers with online community members through the popularisation of the term ‘social customer relationship management’ (social CRM). This term is a misnomer because online community members are not necessarily customers of the organisation. A better term is community relationship management (that is, CoRM) because it more accurately reflects what people do in online communities – connect, converse, create and collaborate. Organisations can take advantage of these predispositions by using marketing research and public relations, nurturing opinion leaders or advocates, placing and creating advertisements, developing new products, lowering the cost-to-serve, building brand loyalty and sales, and amplifying buzz and visibility for the organisation.

Journal ArticleDOI
TL;DR: Customer lifetime value (CLV) is used to customer segmentation of a health and beauty company and is calculated based on weighted RFM method for each segment, which can be used to explain marketing and sales strategies by the company.

Journal ArticleDOI
TL;DR: In this article, the authors analyzed the evolution of a customer's channel choice decision process from a trial stage to a post-trial stage and found that customers' decision processes do evolve, a minority but sizeable segment changes decision processes within the observation period.
Abstract: The growing number of sales channels through which customers can make purchases has made it imperative for managers to understand how customers decide which channels to use. However, this presents a significant challenge because there is reason to believe the channel decision process evolves over the lifetime of the customer. The authors document the existence and nature of this phenomenon by analyzing the evolution of a customer's channel choice decision process from a trial stage to a posttrial stage. First, they analyze data for a book retailer and replicate their analysis using data from a durables and apparel retailer. Their results suggest that (1) customers' decision processes do evolve, (2) a minority but sizeable segment changes decision processes within the observation period, and (3) customers who change do so from a decision process in which they are highly responsive to marketing to one in which they are less responsive. The authors illustrate and discuss the implications for both ma...

Journal ArticleDOI
TL;DR: In this article, the authors explore the performance of UK hotels, in terms of various service attributes, and whether it influences customers' intention to stay again, based on data collected from online customer ratings of 664 hotels in the UK.
Abstract: Purpose – This paper seeks to explore the performance of UK hotels, in terms of various service attributes, and whether it influences customers' intention to stay again.Design/methodology/approach – Data are used from online customer ratings of 664 hotels in the UK for the purpose. The approach is based on an interesting use of statistical regression reported in the literature that attempted to classify different cues in hotels as critical, satisfier, dissatisfier, etc. In this study, six prominent attributes are considered, namely: customer service, cleanliness, room quality, value for money, quality of food, and family friendliness, rated by guests, based on their experiences of staying in hotels.Findings – The findings reveal that “Value for money” is a critical attribute, while “Customer service”, “Room quality” and “Quality of food” are dissatisfiers. Business guests, and guests of independent hotels, exhibit similar behavior, but for leisure guests, and guests of chain hotels, “Value for money” is a...

Journal ArticleDOI
TL;DR: In this article, the authors examine the impact of customer relationship management (CRM) on firm performance using a hierarchical construct model and reveal a positive and significant path between a superior CRM capability and firm performance.
Abstract: In this paper, we examine the impact of customer relationship management (CRM) on firm performance using a hierarchical construct model. Following the resource-based view of the firm, strategic CRM is conceptualized as an endogenously determined function of the organization's ability to harness and orchestrate lower-order capabilities that comprise physical assets, such as IT infrastructure, and organizational capabilities, such as human analytics (HA) and business architecture (BA). Our results reveal a positive and significant path between a superior CRM capability and firm performance. In turn, superior CRM capability is positively associated with HA and BA. However, our results suggest that the impact of IT infrastructure on superior CRM capability is indirect and fully mediated by HA and BA. We also find that CRM initiatives jointly emphasizing customer intimacy and cost reduction outperform those taking a less balanced approach. Overall, this paper helps explain why some CRM programs are more successful than others and what capabilities are required to support success.

Journal ArticleDOI
TL;DR: The paper advocates the development of eCRM 2.0 strategies aiming at exploiting both the networking and social/customer intelligence of web 2.1 by integrating and engaging customers and communities along firms' value chain operations.

Journal ArticleDOI
TL;DR: In this article, the authors examined the generalizability of the CRM scale originally developed by Sin et al. as well as investigated the strength of linkages between CRM implementation components and business performance in Jordan's financial service organizations (FSOs).
Abstract: Purpose – The purpose of this paper is to examine the generalizability of the customer relationship management (CRM) scale originally developed by Sin et al. as well as to investigate the strength of linkages between CRM implementation components and business performance in Jordan's financial service organizations (FSOs).Design/methodology/approach – Using a quantitative methodology, data were collected through a survey that included FSOs that are operating in the Jordanian market. The original adopted CRM scale was administered to 12 banks and 18 insurance companies that were found to be implementing CRM. An overall number of 320 questionnaires were sent to these banks and insurance companies' top management members who were directly involved in CRM implementation and performance assessments. Exploratory and confirmatory factor analyses were used to assess the generalizability of the CRM scale developed by Sin et al. Structural path model analysis was also used to test the research hypotheses concerning ...

Journal ArticleDOI
TL;DR: In this article, the authors contribute to the strategic management literature by identifying possible combinations of three organizational capabilities (market orientation, knowledge management, and customer relationship management) that would lead to the creation of superior customer value.
Abstract: Purpose – The purpose of this paper is to contribute to the strategic management literature by identifying possible combinations of three organizational capabilities (market orientation, knowledge management, and customer relationship management). It seeks to analyze the potential interaction between them that would lead to the creation of superior customer value.Design/methodology/approach – The research question is: “If the customer demands superior value, how should a firm combine its existing capabilities in order to offer this superior value?”Findings – It is clear that one should turn to dynamic capabilities to explain the connection between the interaction of these three capabilities and superior customer value. Firms are aware of the customers' demand for superior value and need to know how to combine their existing capabilities to offer this superior value.Practical implications – A possible way of increasing the value created for the customer is proposed, which is a key factor for the increasing...

Journal ArticleDOI
TL;DR: In this article, the authors identify ten forms of dark side behaviour that may be grouped into three broad categories based on means used and target, and illustrate how different types of dark-side behaviours may be linked to the key strategic CRM processes.
Abstract: Purpose – The paper aims to consider the neglected area of customer relationship management (CRM) and customer management's “dark side”; and identify the key types of dark side behaviours of service providers as well as integrated approaches to CRM that will assist in overcoming dark side behaviour.Design/methodology/approach – Based on an extensive literature review, supplemented by insights drawn from an on‐going longitudinal study of CRM, the authors develop a classification of dark side behaviour types.Findings – The paper identifies ten forms of dark side behaviour that may be grouped into three broad categories based on means used and target. It illustrates how different types of dark side behaviours may be linked to the key strategic CRM processes.Practical implications – The paper examines how these dark side practices may be addressed by adoption of a more enlightened approach to CRM.Originality/value – The dysfunctional forms of CRM and customer management have been neglected as an area of resea...

Journal ArticleDOI
TL;DR: A soft clustering method that uses a latent mixed-class membership clustering approach to classify online customers based on their purchasing data across categories, and yields more promising results than hard clustering and greater within-segment clustering quality than the finite mixture model.

Journal ArticleDOI
TL;DR: An enhancement to one of these models, specifically the Technology Acceptance Model (TAM), is proposed, by incorporating a range of factors identified in the social networking and business relationships literature believed to influence social CRM adoption that familiarity, caring behaviour, sharing information and perceived trustworthiness can generate cognitive view about the relationships between employees and customers.
Abstract: Recent developments in information technology and Web services have increased the potential for creating more rapid and extensive social networks and business relationships. Web 2.0 technologies, commonly referred to as online social media, have become important tools within the growth of information and communication technology (ICT) in the last few years. Web 2.0 tools such as blogs, Wiki and other services, which are widely used by individuals, also have an effect on customer relationship management (CRM) systems. Consequently, social CRM (SCRM) is emerging as a new paradigm for integrating social networking in more traditional CRM systems. However, social CRM is yet to be fully utilised as a value-adding tool in improving customer relationships. This paper reports on a scoping study that explored the current situation of CRM adoption in banking industry in Saudi Arabia. The aim of this paper is to identify the factors that may influence businesses and customers’ adoption of social CRM. Various models have been proposed to study ICT and information systems acceptance and usage. This paper proposes an enhancement to one of these models, specifically the Technology Acceptance Model (TAM), by incorporating a range of factors identified in the social networking and business relationships literature believed to influence social CRM adoption. In particular, the model proposes that familiarity, caring behaviour, sharing information and perceived trustworthiness can generate cognitive view about the relationships between employees and customers. This view besides Web 2.0 features may offer a way of analysing the potential adoption of social CRM.

Journal ArticleDOI
TL;DR: In this article, the impact of Internet-based technologies (IBTs) on the CRM activities (that is e-CRM) of small and medium-sized enterprises (SMEs) in Ireland is investigated.
Abstract: Small and medium-sized enterprises (SMEs) are vital components of our economies, but many struggle to perform the marketing prescribed theoretically for large organisations. In practice, marketing is performed in SMEs through an intrinsic customer orientation, which exhibits striking resemblances to customer relationship management (CRM) theory. This paper presents research evidence to help us understand the impact of Internet-based technologies (IBTs) on the CRM activities (that is e-CRM) of SMEs in Ireland. A quantitative approach (online survey questionnaire) was adopted and distributed to 1445 SMEs. Exploratory factor analysis uncovered eight distinct yet inter-related factors underpinning the practices and processes of e-CRM in SMEs. Briefly, findings illustrate that SMEs are performing e-CRM to varying extents, reaping a range of performance benefits and facing a range of challenges. It is true that SMEs are not adopting e-CRM per se, as described in the large organisation-biased literature...

Journal ArticleDOI
TL;DR: This research defines social CRM and presents a new model that depicts the fundamental aspects of socialCRM in four layers, finding that Web 2.0 services add value in every domain of the CRM environment, depending on the type of service at hand.
Abstract: Businesses are becoming more customer-centric and see a need to address customers more individually. An opportunity is identified in Web 2.0 technologies. Both CRM and Web 2.0 have been researched broadly in the past years, but not their potentially successful combination, which we call ‘social CRM’. It is a CRM strategy which encourages customer collaboration and involvement. Based on empirical research we found that Web 2.0 services add value in every domain of the CRM environment, depending on the type of service at hand. Most value is added in the marketing domain of CRM. Social networks, blogs, and multimedia sharing add most value across all domains. This research defines social CRM and presents a new model that depicts the fundamental aspects of social CRM in four layers. We conclude with suggestions for further research in this emerging research domain.

Journal ArticleDOI
TL;DR: The proposed research model was built on the basis of unified theory of acceptance and use of technology (UTAUT) and task-technology fit (TTF) framework as well as technological and managerial theories and the implications of findings for practice will be discussed.
Abstract: With the rapid change of business competitive environment, enterprise resource integration and innovative issues of business operation have gradually become the most important issues for businesses. Furthermore, many enterprises have implemented novel information technology and developing the innovative e-business applications systems such as enterprise resource planning (ERP), customer relationship management (CRM), knowledge management (KM) and supply chain management (SCM) to enhance their competitive advantages. CRM systems can help organizations to gain the potential new customers, promote the existing customers' purchase, maintain good relationship with customers as well as to enhance the customer value, thus can improve the enterprise images. Moreover, the development and applications of CRM systems have also been considered as important issues for researchers and practitioners in recent years. For Taiwan's industry, it has been gradually transferred from manufacturing-oriented to a service-oriented. Thus, the service industry has higher percentage in the GDP and in which the distribution service industry is the biggest one and be a core industry in the whole of service industry. The main purpose of this study is to explore the factors affecting the acceptance and use of CRM systems. Furthermore, the proposed research model was built on the basis of unified theory of acceptance and use of technology (UTAUT) and task-technology fit (TTF) framework as well as technological and managerial theories. The implications of findings for practice will be discussed.

01 Aug 2011
TL;DR: In this paper, the authors argue that the effectiveness of marketing practices decreases when firms are motivated to adopt such practices under the influence of institutional pressures originating in firms' environments, and suggest that alignment between a practice and a firm's marketing strategy may buffer against these negative effects.
Abstract: textThis study identifies the potential contribution that institutional theory can make to understanding the success of marketing practices. Based on institutional theory, we argue that the effectiveness of marketing practices decreases when firms are motivated to adopt such practices under the influence of institutional pressures originating in firms' environments. However, alignment between a practice and a firm's marketing strategy may buffer against these negative effects. We apply these insights to the case of customer relationship management (CRM). CRM is considered an important way to enhance customer loyalty and firm performance, but it has also been criticized for being expensive and for not living up to expectations. Empirical data from 107 organizations confirm that, in general, adopting CRM for mimetic motives is likely to result in fewer customer insights as a result of using this practice. Our study suggests that institutional theory has much to offer to the investigation of the effectiveness of marketing practices.

Journal ArticleDOI
TL;DR: In this article, the role of customer orientation and learning orientation on a firm's performance in small, medium, and large enterprises has been investigated, however, the literature provides little empirical evidence about the role and influence of these variables on new service development and subsequent effect on performance.
Abstract: Although many studies have investigated the role of customer orientation and learning orientation on a firm's performance in small, medium, and large enterprises, the literature provides little empirical evidence about the role of customer orientation and learning orientation within the hotel industry. This current work investigates the influence of these variables on new service development and their subsequent effect on performance (financial and perceptual). Also, the impact of participating managers' positive attitude toward change on new service development has been examined. Using data from hotel managers and owners located in Switzerland, several hypotheses have been formulated and tested. The findings not only verify aspects of prior research but also provide a new insight by exploring customer orientation, learning orientation, and new service development simultaneously, revealing how these factors affect the performance of the Swiss hotel industry. Although support for some hypotheses was found, these results need to be evaluated in light of the limitations, which moderate the contribution and also provide areas for further research. (Less)