Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

 
2007 Annual International CHRIE Conference & Exposition 
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influence customer perception of value (i.e. acquisition, transaction, in-use, and redemption), and to examine how 
perceived service quality and perceived value are related to customer’s behavioral and attitudinal loyalty. 
 
LITERATURE REVIEW 
Customer Relationship Management 
Fitzgibbon and White (2005) define CRM as “a data-driven approach that enables companies to assess each 
customer’s current needs and potential profitability and tailor sales offers and services accordingly” (p. 220). The 
ultimate goal of CRM is retaining existing customers by establishing long-term relationship with customers 
(Fitzgibbon & White, 2005). The mantra of CRM is customer-centric and lifetime customer value. Companies 
reach the fundamental objective (i.e. the long-term relationship of the customer with the company) via various 
approaches such as tailoring the products and services through customization and individualization, and distributing 
a single view of a customer in the organization with an integrated customer database.
Customization and individualization become available via information technology (IT) embedded in CRM 
and tailored products and services are proposed to increase customer satisfaction (Gordon, 2002; Piccoli, O'Connor, 
Capaccioli, & Alvarez, 2003; Schaller, Piller, & Reichwald, 2004). Specifically, the first step is to construct a 
database containing transactions, customer contacts, descriptive information and responses to marketing stimuli for a 
successful CRM (Winer, 2001). Then knowledge and insight about customers can be obtained via the analysis of 
the database (Gordon, 2002; Winer, 2001). Information technology utilizes CRM via the database, and CRM is 
mutually influenced by customers and IT (Gordon, 2002). 
Customization based on knowledge preferences and behaviors is available at the time of interaction 
(Dyché, 2002). For example, customers are greeted by name when entering a restaurant where CRM is 
implemented; their preferences such as preferred seating are recognized; and products and services that fit their 
needs and wants are offered (e.g. sugarless beverage instead of regular product). Also, customers can be reached 
through multiple channels that are fit for customers’ interaction preference through the use of emails or e-
newsletters for those who use the Internet.