Customer relationship management (CRM) and perceptions of unfairness

This study concerns the role of CRM in enhancing and maintaining fairness in relationships between a firm and its customers. This study has two aims. The first main aim of this research is to understand how customers form perceptions of unfairness of CRM by investigating the influence of CRM offerin...

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Bibliographic Details
Main Author: Nguyen, Bang Xuan
Published: Oxford Brookes University 2009
Subjects:
381
Online Access:http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.532052
Description
Summary:This study concerns the role of CRM in enhancing and maintaining fairness in relationships between a firm and its customers. This study has two aims. The first main aim of this research is to understand how customers form perceptions of unfairness of CRM by investigating the influence of CRM offerings on the advantaged and disadvantaged customers in the retailing sector. The second aim is to develop a comprehensive model of perceptions of unfairness in a CRM context and to empirically test the relationships between CRM offerings, relationship stage, inequality comparisons, negative inferences and unfairness feelings. Data collection was conducted in 3 phases using a mixed method approach, including an exploratory-, pilot-, and main study. Several modes of interviews were conducted, including face-to-face, telephone interview and email enquiries. The survey for the main study generated a response rate of 13.75%. The findings from the mam study provided insights for both academics and practitioners. It was found that CRM offerings can be effective in managing perceptions of unfairness. Efforts should be emphasised in preventing inequality comparisons by altering negative inferences into positive inferences. This study further provided significant insight into the implications for marketers in understanding the differential effectiveness of a firm's CRM offerings on the advantaged- (favoured) and disadvantaged (unfavoured) customers. Service and communication concern the advantaged customer more strongly, whilst price issues concern the disadvantaged customer more strongly. Customization and reputation did not exert a statistically significant influence on the two groups and their feelings of unfairness. This study starkly reveals the importance of understanding the role of unfairness in customer relationship management. It allows managers to develop a better grouping of their customers; to identify the group which needs more attention; and, to deploy appropriate action In order to retain those customers and to maintain customer loyalty