How to get lost customers back?

Most research in the field of customer relationship management has focused on keeping existing customers. However, some companies also systematically address lost customers and try to revive these relationships. This facet of customer relationship management has been largely neglected by academic research. Our study provides a theoretical discussion and an empirical analysis of factors driving the success of relationship revival activities. Drawing on equity theory, we find that the customer’s perceived interactional, procedural, and distributive justice with respect to revival activities positively affect his or her revival-specific satisfaction which in turn, has a strong impact on revival performance. Furthermore, revival performance depends on customer characteristics (variety seeking, involvement, age), and the overall customer satisfaction with the relationship.

The effects of filled waiting time and service provider control over the delay on evaluations of service

This article reports on an experiment that investigated the effects of a delay, perceived control over a delay, and the extent to which time was filled during the delay on various performance evaluations in a service encounter. It was determined that delays lower customers’ overall evaluations of service and of the tangible and reliability attributes of the service in particular. When delayed, performance evaluations were affected by whether the service provider was perceived to have control over the delay and whether the customer’s waiting time was filled. Overall performance evaluations and performance evaluations of tangibility, reliability, and responsiveness were highest when perceived service provider control was low and the waiting customer’s time was filled. These evaluations were lowest when perceived service provider control was high and waiting time was not filled. She received her Ph.D. from the University of British Columbia.     

The role of interpersonal liking in building trust in long-term channel relationships

This article explores the important role of liking in the development of the buyer’s trust in the sales rep. The authors argue that liking’s role is richer and qualitatively different from that of the more cognitive antecedents of trust. They posit that many cognitive antecedents of trust operate mainly through liking. They argue that as the buyer-sales rep relationship matures, liking plays an even more important role in influencing trust. The authors empirically test a model delineating the mediating role of liking in developing trust. They find that when the relationship between the buyer and the sales rep is young, liking partially mediates the effect of similarity of business values and fully mediates the influence of frequency of personal interaction on trust. Moreover, as the buyer’s relationship with the rep ages, liking takes the foreground in trust development, while more cognitive antecedents recede into the background. Carolyn Y. Nicholson (Ph.D., Virginia Polytechnic Institute and State University) is an assistant professor of marketing at Stetson University. Her current research areas include forms and uses of communication in distribution channels, trust and commitment in marketing relationships, and Internet marketing. Her research has appeared in theJournal of Retailing, along with numerous national conference proceedings. Larry D. Compeau (Ph.D., Virginia Polytechnic Institute and State University) is an associate professor of marketing at Clarkson University. His research has appeared in theJournal of Public Policy & Marketing and theJournal of Business Research. He has recently coedited a special issue of theJournal of Public Policy & Marketing on pricing. His research has appeared in numerous national conference proceedings. Rajesh Sethi (Ph.D., University of Pittsburgh) is an assistant processor of marketing at Clarkson University. His current research areas include new product development, cross-functional teams, Web-based new product development, and electronic commerce. He has published in theJournal of Marketing, theJournal of Marketing Research, theJournal of the Academy of Marketing Science, and theJournal of Social Policy and Public Management. He also has published in numerous national conference proceedings.     

Export marketing strategy implementation,export marketing capabilities,and export venture performance

Since exporting is the most popular mechanism by which firms engage with international markets, understanding the drivers of export market performance is key to explaining firms’ international competitiveness. The literature posits that the effective implementation of planned export marketing strategy is a key determinant of the performance of firms operating in international markets. Yet little is known about the specific nature and drivers of export marketing strategy implementation effectiveness. In this study we build on the implementation literature in marketing and strategic management to develop a new conceptualization of export marketing strategy implementation effectiveness. Drawing on dynamic capabilities theory, we empirically examine the export marketing capability antecedents and performance consequences of export marketing strategy implementation effectiveness in the context of manufacturing firms that are exporting to international markets. Results indicate that effective implementation of planned export marketing strategy contributes to export market and financial performance, and that marketing capabilities play an important role in enabling effective marketing strategy implementation in export venture operations.     

Exploring CRM effectiveness: an institutional theory perspective

This 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.     

On interfirm power, channel climate, and solidarity in industrial distributor-supplier dyads

Despite surging interest in relational exchange in marketing channels, the link between the interfirm power-influence process and relational exchange remains disjointed. This study intends to connect that link by highlighting (a) the moderating effects of channel climate on the interfirm power-influence process and (b) the main effect of influence strategies on a relational exchange element, solidarity of a dyad. Specifically, the author proposes that channel climate, as manifested by dyadic trust and dyadic relationship continuity, moderates (a) the link between asymmetry of interfirm power and the use of influence strategies and (b) the reciprocation of influence strategies. In turn, the use of influence strategies is posited to affect solidarity of a dyad. The results of hypotheses’ tests, based on the analysis of industrial distributor-supplier dyads, (a) partially confirm the moderating effects of dyadic trust and dyadic relationship continuity and (b) fully confirm the main effects of influence strategies on dyadic solidarity. Keysuk Kim is an assistant professor of marketing at Oregon State University. His research interests include behavioral process in marketing channels and comparative study of interorganizational relationships. His research has appeared in theJournal of Marketing, theInternational Journal of Research in Marketing, theJournal of Business Research, and other journals.     

Including the effects of prior and recent contact effort in a customer scoring model for database marketing

Database marketers often use a scoring model to predict the likely value of contacting customers based on their purchase histories and demographics. However, when purchase history has been a partial result of the firm’s own contacting efforts, these contacts should also be accounted for in the scoring model. The current work extends the existing literature to account for the firm’s contacts by focusing on each customer’s most recent purchase. Contacts prior to that purchase are designated “prior contacts” and those after that purchase “recent contacts.” A new latent variables formulation of the customer’s propensity to respond is used to predict the likelihood and time of response as well as the relationship to the independent variables. The methodology also addresses the statistical problems of “selection bias” and “endogeneity,” which have been largely ignored in most customer scoring models. An application to the database of a charitable organization confirms that, in this case: (1) the effect of the firm’s customer contact efforts is associated with a stronger propensity to respond than is the case for the included demographics; (2) the firm’s “recent contact” efforts are associated with larger returns in customers’ propensity to respond than the “prior contact” efforts; and (3) the “recent contact” efforts are associated with an at-first increasing but then diminishing propensity to respond up to a point beyond which actual decreasing returns are observed with further contacts. Clearly, too much contacting can alienate would-be donors. The proposed model is general enough to calibrate such impacts in other database marketing applications where the relative effects might be different.

Market-oriented sustainability: a conceptual framework and propositions

Utilizing Resource-Advantage Theory as the underlying theoretical foundation and drawing on literature from a variety of disciplines, we develop a market-oriented sustainability framework. By incorporating sustainability into market orientation, the goal of strategic alignment of sustainability with marketing strategies is achieved to create a competitive advantage. Three constructs identified in the model are DNA, stakeholder involvement, and performance management. These three constructs are the drivers of sustainability. DNA is used as an extended metaphor to clarify and illustrate the workings of an organization and how sustainability may be implemented. This construct includes core ideology, dynamic capabilities, and societal engagement. The firm’s DNA is communicated to both internal and external stakeholders, and stakeholders’ concerns should be an influence on strategic marketing planning. Performance management is the third major construct in the model and includes corporate social performance and corporate financial performance metrics. Within the model explication, we offer propositions to support market-oriented sustainability research and provide directions for sustainability theory, research, and practice.     

Perceived marketing–sales relationship effectiveness: a matter of justice

There is a compelling need to improve the relationship between managers in marketing and sales departments. This paper argues that one critical way of enhancing individual managers’ perceptions of relationship effectiveness between these departments is to view the issue as a matter of justice and suggests that perceived marketing–sales relationship effectiveness is positively influenced by managers’ perceptions of organizational justice. Furthermore, it proposes that interfunctional communication has the potential to enhance the proposed positive effects of justice and hence needs to be considered and effectively managed when looking at marketing–sales relationship effectiveness. Data drawn from a survey of 203 marketing and sales managers in 38 consumer packaged goods companies are used to empirically test these predictions. The authors find that perceived sales–marketing relationship effectiveness is influenced by perceptions of distributive, procedural and interactional justice. Greater interfunctional communication is found to further enhance the positive effects of distributive and procedural justice on perceived relationship effectiveness, but it does not contribute to the already strong positive effects of interactional justice. Furthermore, results reveal important differences in the effects of justice on perceived relationship effectiveness across the marketing and sales departments.     

Market orientation and performance of export ventures: the process through marketing capabilities and competitive advantages

Our study focuses on the internal process through which market orientation influences performance in export markets, and develops a model of market orientation–marketing capabilities–competitive advantages–performance relationships. Using survey data of 491 export ventures based in China, we find that marketing capabilities mediate the market orientation–performance relationship, while competitive advantages partially mediate the marketing capabilities–performance relationship. Moreover, coordination mechanism strengthens, and cost leadership strategy weakens, the effects of market orientation on new product development and marketing communication capabilities, respectively. Market turbulence attenuates the effect of market orientation on new product development capability while competitive intensity strengthens this effect.     

Heterogeneity in sales districts: Beyond individual-level predictors of satisfaction and performance

This article examines the influence of heterogeneity within a sales unit on the unit’s satisfaction and performance.Sales unit refers to a set of salespersons working out of the same office and for the same supervisor, andheterogenity refers to salespersons’ dispersion or variance on key dimensions. Specifically, drawing on theories in social psychology, the authors study the influence of sales unit heterogeneity in terms of (1) demographic characteristics (e.g., gender dispersion), (2) skills and rewards (e.g., reward dispersion), and (3) goal orientations (e.g., learning orientation dispersion) on a sales unit’s performance and job satisfaction levels. The hypotheses developed are tested using data from a study involving 476 salespeople belonging to 105 sales units in a large organization. The authors find that the focal heterogeneity variables account for nearly 25 percent of the total variance explained by the full set of independent variables included in the model. R. Venkatesh is an assistant professor of business administration at the University of Pittsburgh’s Katz Graduate School of Business. His articles on product bundling, cobranding and sales force management have appeared or are forthcoming in theInternational Journal of Research in Marketing, Journal of the Academy of Marketing Science, Journal of Business, Journal of Marketing, Journal of Marketing Research, andMarketing Science. Goutam Challagalla is an associate marketing professor at Georgia Tech. He received his Ph.D. in marketing from the University of Texas at Austin, where he won the Outstanding Dissertation Award. He has published articles on sales management and marketing theory in marketing and psychology journals. Ajay K. Kohli is Isaac Stiles Hopkins professor of marketing at Emory University’s Goizueta Business School. During 2000–2001, he is on leave from Emory and working at the Monitor Company. He has published in several journals on market orientation, sales management, and organizational buying behavior.     

The synergistic effect of market orientation and learning orientation on organizational performance

Although a large body of research theoretically asserts a positive relationship between market orientation and organizational performance, fewer empirical studies demonstrate it using multiple and varied organizational performance measures. Additionally, a series of recent studies have theoretically proposed, but not empirically demonstrated, that a firm’s learning orientation is likely to indirectly affect organizational performance by improving the quality of its market-oriented behaviors and directly influence organizational performance by facilitating the type of generative learning that leads to innovations in products, procedures, and systems. This empirical study supports all of these specific contentions and the more global notion that higher order learning processes may be critical in creating a sustainable competitive advantage in the firm. William E. Baker is an assistant professor of marketing in the School of Business Administration at the University of Vermont. His research interests include both individual and organizational learning. He has published in the areas of consumer decision making, advertising effectiveness, and market-based organizational learning. James M. Sinkula is an associate professor of marketing in the School of Business Administration at the University of Vermont and the director of its MBA Program. His research interests lie primarily in the areas of organizational information use and market-based organizational learning. He has publications in theJournal of the Academy of Marketing Science, Journal of Advertising Research, Journal of Business Research, Journal of Marketing, and others.     

Integrating marketing and information services functions: a complementarity and competence perspective

Integrating two disparate functions in organizations—marketing and information services (IS)—has become a critical business concern due to the increasing use of information technology (IT) to find and open new markets, deliver improved services to customers, and streamline internal marketing processes. This study appears to be the first to empirically examine the dynamics of bringing these distinct groups of specialists together. We investigate potential antecedents, consequences, and contingencies of IS-marketing integration, drawing on theories of complementarity and competence. Through a survey of IS and marketing executives, we learn that integration is facilitated by trust between the two functions and the interaction between IT strategic intent and customer orientation; it is impeded by a gap in top management knowledge of IT versus marketing. We also find that integration fosters the much-coveted capabilities of developing and introducing innovations (innovativeness) as well as responding flexibly, swiftly, and adroitly to opportunities (strategic responsiveness). Additionally, we determine integration is bounded by market dynamism. In sum, integration between marketing and IS can be enhanced via managerial efforts, and the relationship is profoundly beneficial to businesses.     

Trustmarks, objective-source ratings, and implied investments in advertising: Investigating online trust and the context-specific nature of internet signals

The purpose of this study is to provide a preliminary investigation of the effectiveness of Internet marketers’ various attempts to develop consumer trust through Web signals. The work is an exploration of the context-specific nature of trust in e-commerce. An online experiment compares three potential signals of trust in an Internet retail firm: (1) a third-party certification (i.e., a “trustmark”), (2) an objective-source rating (i.e., a review from Consumer Reports magazine), and (3) an implication of investment in advertising (i.e., a television advertisement to air during the Super Bowl). The trustmark had the greatest effect on perceived trustworthiness, influencing respondents’ beliefs about security and privacy, general beliefs about firm trustworthiness, and willingness to provide personal information. The relationship between Internet experience and trust was in the form of an inverted U. K. Damon Aiken (kaiken@mail.ewu.edu) is an assistant professor at Eastern Washington University at Cheney, Washington. He received his PhD from the University of Oregon. His primary teaching and research interests lie in Internet marketing, consumer attitude formation, and trust development. He has also published in the area of sport marketing, investigating fan attitudes and values. His research has appeared in theJournal of Advertising Research, theInternational Journal of Internet Marketing and Advertising, theBusiness Research Yearbook, andSport Marketing Quarterly, among others. David M. Boush (dmboush@lcbmail.uoregon.edu) is an associate professor of marketing in the Lundquist College of Business at the University of Oregon in Eugene. He received his PhD from the University of Minnesota. His research interests center on the relationship between consumer behavior and marketing management decisions, especially those involving advertising, branding, and the Internet. His research has appeared in publications such as theJournal of Marketing Research, theJournal of Consumer Research, theJournal of Business Research, theJournal of International Business Studies, Psychology and Marketing, Marketing Letters, and theJournal of Current Issues and Research in Marketing. He serves on the editorial board of theJournal of the Academy of Marketing Science.     

Customer experience quality: an exploration in business and consumer contexts using repertory grid technique

This study proposes a conceptual model for customer experience quality and its impact on customer relationship outcomes. Customer experience is conceptualized as the customer’s subjective response to the holistic direct and indirect encounter with the firm, and customer experience quality as its perceived excellence or superiority. Using the repertory grid technique in 40 interviews in B2B and B2C contexts, the authors find that customer experience quality is judged with respect to its contribution to value-in-use, and hence propose that value-in-use mediates between experience quality and relationship outcomes. Experience quality includes evaluations not just of the firm’s products and services but also of peer-to-peer and complementary supplier encounters. In assessing experience quality in B2B contexts, customers place a greater emphasis on firm practices that focus on understanding and delivering value-in-use than is generally the case in B2C contexts. Implications for practitioners’ customer insight processes and future research directions are suggested.     

Antecedents and consequences of adaptive selling confidence and behavior: a dyadic analysis of salespeople and their customers

Personal selling is thought to be a very effective marketing vehicle. The notion of adaptive selling suggests that it should work better than any other means of communication because salespeople are able to develop a unique message for each customer. This research proposes a model of key antecedents and consequences of adaptive selling. In particular, we distinguish, measure, and model the attitudinal and behavioral aspects of adaptive selling, something that is encouraged but not thoroughly examined in the literature. Hypotheses are tested using data from 210 salesperson-customer dyads. The results indicate that a salesperson’s perception of the firm’s customer orientation has an effect on adaptive selling behavior through the salesperson’s adaptive selling confidence, role ambiguity, intrinsic motivation and customer-qualification skills. Adaptive selling behavior increases salesperson’s outcome performance, customers’ evaluations of satisfaction with the product and with the salesperson, which enhance customers’ anticipation of future interactions with the salesperson. The implications for management and theory are discussed.     

The continuity factor in retail store display

While future research is necessary to determine the variation in findings by such factors as store type, merchandise type, degree of self-selection, etc., these data do indicate that there is much to be said in favor of display continuity. This, of course, assumes that increased sales per minute is a desirable goal. The desirability of increasing sales per minute should be reviewed from the customer’s point of view as well as from a management’s frame of reference. If the shopping task is viewed as relatively unpleasant, then speed of purchasing becomes a real factor. However, should the customer feel that the shopping act is more one of entertainment relative to procurement, then purchase proficiency is less relevant.     

Market-focused sustainability: market orientation plus!

The concept of sustainability is increasingly being addressed theoretically by scholars and practically by managers and policymakers. With this growing focus on sustainability efforts, marketing is in a unique position to elevate its focus from managing relationships with customers to strategically managing a broader set of marketplace issues. Overall, an organization achieves market-based sustainability to the extent that it strategically aligns itself with the market-oriented product needs and wants of customers and the interests of multiple stakeholders concerned about social responsibility issues involving economic, environmental, and social dimensions. To set the stage for marketing’s inquiry into sustainability efforts, I briefly review the concept of sustainability, compare it with corporate social responsibility, bring in stakeholders, argue for the notion of “market orientation plus,” and consider the possibility that the notion of what sustainability encompasses is converging in the marketing literature.     

The role of relationship quality in the stratification of vendors as perceived by customers

Companies implement preferred supplier programs to reduce their vendor relationships to a reasonable few. Consequently, vendors who do not effectively manage their customer-based relationships are strong candidates for deletion from a customer’s list of long-term suppliers. The emergence of preferred supplier programs suggests that businesses are beginning to formally recognize and reward differences between their qualified vendors. Vendor stratification is proposed as a framework for understanding the evolution of preferred vendor programs. With the growing interest in relationship marketing, a study was conducted to empirically examine the extent to which businesses use relationship quality perceptions to differentiate their qualified vendors. The findings support the notion that relationship quality is a higher-order construct that can be used as a basis for developing vendor stratification systems. The article concludes with a discussion of the managerial and research implications of the study findings. Michael J. Dorsch (Ph.D., University of Arkansas) is an associate professor of marketing at Clemson University. His research has been published in theJournal of the Academy of Marketing Science, theJournal of Business Research, and theJournal of Personal Selling and Sales Management, among others. His research interests include issues concerning relationship marketing and marketing research methods. Scott R. Swanson (Ph.D., University of Kentucky) is an assistant professor of marketing at East Carolina University. He previously spent 9 years as a purchasing executive and his research interets include issues related to services marketing, atmospherics, and marketing ethics. His research has been published in theJournal of Business to Business Marketing, theInternational Journal of Quality and Reliability Management, AMA Educators’ Proceedings, andRetailing: Theories and Practices for Today and Tomorrow. Scott W. Kelley (D.B.A., University of Kentucky) is an associate professor of marketing. His research has been published in theJournal of the Academy of Marketing Science, theJournal of Retailing, theJournal of Business Research, theJournal of Advertising, and theJournal of Personal Selling and Sales Management, among others. His research interests include issues concerning services marketing and marketing ethics.