This is the first in a series of summaries
from the recently initiated AMA Global Marketing SIG Round Table Discussions
held at AMA Conference events. The following summary, global customer relationship
management, derived from the AMA Summer Educators’ Conference in Chicago,
August, 2003.
Customer relationship management (CRM) has
become an increasingly important topic for marketers. We have seen a growth
in the amount of attention given to CRM in both academic and practitioner
journals. For example, currently The Teradata Center for Customer Relationship
Management at Duke University is sponsoring a special section on the topic
of CRM, which will be published in the October 2005 issue of Journal of
Marketing. In this forum, i.e., Research Interests of the AMA Global Marketing
SIG, Susan M. Mudambi of Temple University was the first to directly address
the importance of Global Customer Relationship Management (August 2002).
Given its increased importance to the field of global marketing Bill Lundstrom
of Cleveland State University moderated a discussion of global CRM. Numerous
research issues arose during the session. Following are three central
areas around which the discussion focused.
1. Friction between sales and CRM. Sales
and Customer Relationship Management programs compete for resources.
Both involve interaction with customers. Sales focuses on acquisition
and CRM on retention. Both involve relationships, often with the
same parties, but the nature of the association differs, as does information
needed for decisions. CRM methods often feature technical applications
and they can be based on extensive data collection and sophisticated analytical
procedures. A sale, as a particular type of relationship, is high
touch, interpersonal, and often looks for an emotional response.
Cultural characteristics that contribute to relationship success would
be expected to have a detrimental effect on achievement of challenging
sales goals. Research investigating how firms balance the potential
friction between sales and CRM strategies and tactics is greatly needed.
Furthermore, the influence of country culture on efficiency and effectiveness
of sales, CRM and the interaction of sales and CRM on firm performance
is warranted. Through greater investigation of sales and CRM jointly in
global operations we may be able to better understand the reasons for the
uneasy co-existence between these strategies and tactics.
2. Relationship outcomes. Key elements
of a relationship were identified as trust, caring, communications, honesty,
and efficiency. The manifestation of these behavioral and emotional
variables needs to be developed for different cultures. Although scholars
have begun to theorize and empirically test cross-cultural differences
in many relationship outcome constructs, we have only begun to gain an
understanding of how these constructs vary across cultures. Issues of conceptual
equivalence, measurement equivalence, etc. abound. Cross-country and cross-cultural
comparisons of these constructs in a differing contexts (e.g., supply chain,
firm-consumer, etc.) would help to shed light on why some CRM strategies
and tactics work/don’t work in various settings. The nature of a
business relationship in different cultures has not been adequately studied.
Understanding a relationship that combines two or more cultures should
then be undertaken.
3. Ethical Issues. The employment of
CRM has raised a number of ethical issues domestically. When moving to
the world stage the complexity and intensity of ethical concerns increases
tremendously. Availability and use of information of private, semi-private,
or transactional information for making decisions is a major issue.
Information privacy is viewed quite differently around the world.
Laws, norms and customs all set forth different standards for "privacy."
Privacy as an obstacle to information flows and needs considerable attention.
In summary, one clear take-away from the Round
Table discussion was the richness of the topic addressed – CRM. CRM
provides numerous opportunities for global marketing researchers to contribute
to improved practice and economic development. Conceptual and empirical
research on these topics will provide better understanding of emerging
marketing management practices and of the global environment we live in.
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All
participants in the sessions are commended for the ideas they brought to
the session and the knowledge they produced during the discussion.
The participants were:
Dan Bello,
Georgia State University
Andrew
Czaplewski, University of Colorado at Colorado Springs
Georg Fassott,
University of Kaiserslautern, Germany
Frank Franzak,
Virginia Commonwealth University
David A.
Griffith, Michigan State University
G. Tomas
M. Hult, Michigan State University
Bill Lundstrom,
Cleveland State University
Juan Meng,
Matt Myers,
University of Tennessee, Knoxville
Pradeep
Rau, George Washington University
Carl Arthur
Solberg, Norwegian School of Management, BI
Vern Terpstra,
University of Michigan
Arturo
Vasquez, University of Texas Pan American
Dawn Valdés
Wagner, McHenry County College
Yujie Wei,
Georgia State University
This summary
of the Round Table discussion is based on my notes, compiled during the
session. Apologies to an outstanding group of participants for any
omissions and all misinterpretations. Others would surely reach a
different set of conclusions. To the extent these comments start meaningful
dialogue, the Round Table will have accomplished its purpose.
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