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

 
CRM and Privacy 
A customer database is a key element to understand customer behavior and to provide tailored service.
However, there is a trade-off between tailored service and the amount of information necessary to enable 
customization (Winer, 2001). Customer information benefits marketers by providing a means to appeal to a 
customer’s lifestyle-based interests and by emphasizing positive consequences from attributes that provide enhanced 
personal satisfaction. Also, customer information benefits consumers by providing tailored service and information 
for decision making of products and service (Franzak, Pitta, & Fritsche, 2001). 
However, customers fear information abuse or misuse (Meinert, Peterson, Criswell, & Crossland, 2006; 
Winer, 2001). Customers may simply be intimidated when unwanted emails are delivered, but they become fearful 
of being harmed when there is information that they do not want others to know about. The central issue of privacy 
is to find to what extent customers are willing to release their sensitive information, or to what extent they want 
companies to know about their information, and to what extent customers expect customization and 
individualization as a trade-off.