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Customer Relationship Building on the Internet in B2B Marketing: A Proposed Typology Author(s): L. Jean Harrison-Walker and Sue E. Neeley Reviewed work(s): Source: Journal of Marketing Theory and Practice, Vol. 12, No. 1 (Winter, 2004), pp. 19-35 Published by: M.E. Sharpe, Inc. Stable URL: http://www.jstor.org/stable/40470122 . Accessed: 21/09/2012 01:19 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected]. . M.E. Sharpe, Inc. is collaborating with JSTOR to digitize, preserve and extend access to Journal of Marketing Theory and Practice. http://www.jstor.org

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Customer Relationship Building on the Internet in B2B Marketing: A Proposed TypologyAuthor(s): L. Jean Harrison-Walker and Sue E. NeeleyReviewed work(s):Source: Journal of Marketing Theory and Practice, Vol. 12, No. 1 (Winter, 2004), pp. 19-35Published by: M.E. Sharpe, Inc.Stable URL: http://www.jstor.org/stable/40470122 .Accessed: 21/09/2012 01:19

Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at .http://www.jstor.org/page/info/about/policies/terms.jsp

.JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range ofcontent in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new formsof scholarship. For more information about JSTOR, please contact [email protected].

.

M.E. Sharpe, Inc. is collaborating with JSTOR to digitize, preserve and extend access to Journal of MarketingTheory and Practice.

http://www.jstor.org

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CUSTOMER RELATIONSHIP BUILDING ON THE INTERNET IN B2B MARKETING:

A PROPOSED TYPOLOGY

L. Jean Harrison-Walker The University of Houston-Clear Lake

Sue E. Neeley The University of Houston-Clear Lake

Despite the large number of customer relationship marketing (CRM) applications currently in use on the Internet, there is a lack of an organizing structure. This paper presents a 3X3 typology of e-CRM practices, with particular focus on business-to-business interactions. The typology is based on two dimensions: (1) the stage of the purchase decision process and (2) Berry and Parasuramarf s ( 1 99 1 ) levels of relationship marketing. The proposed typology can be used to design and evaluate a firm 's e-CRM strategies relative to its B2B relationship marketing objectives.

INTRODUCTION

Marketing strategies historically have emphasized increasing market share to increase profits, and focused primarily on transactional mass selling. In recent years, it has become apparent that retaining current customers and increasing sales to them is far more cost-efficient. Studies have shown that winning new customers can be up to five times more expensive than maintaining existing customer relationships (Bauer, Grether, Leach 2002). In fact, Reichheld and Sasser ( 1 990) identify a negative correlation between the defection of existing customers and company profits. Companies have shifted their focus toward developing and maintaining stable, long-term customer relationships, with an increasing focus on measuring customer lifetime value (Berger and Nasr 1998).

Customers also recognize that (especially in highly competitive markets) good buyer-seller relationships are essential for the success of both customers and sellers ("How to be a Preferred Supplier" 1991). In fact, it is common for customers to forego traditional transaction-based marketing in favor of relationship marketing (cf. Arndt 1979). Particularly in service organizations, customers often want to be

"relationship customers" and prefer personalized communication with the company representative. They want someone who knows them and understands their needs (Beny and Parasuraman 1991). Thus, relationship marketing can be beneficial to all participants. Companies have loyal, satisfied customers who recommend them to others and generate positive word-of-mouth. Customers have efficient, dedicated suppliers they trust and depend on for consistent service. As companies reduce their cost of doing business, customers may be offered lower prices for products.

The emergence of the Internet does not change a firm's fundamental need to establish strong customer relationships. Businesses must still attract customers, build trust, and create satisfaction. Building committed relationships requires firms to interact with their customers - meaning that firms must strive to treat customers as individuals by allowing them to control the timing and extent of buyer-seller interactions and through the customization of products and services. As noted by Mohammed et al. (2004, p.224):

"Previously, firms could be interactive, such as in a face-to-face setting, but only with a small number of

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customers. Similarly, firms could individualize their product or service offerings, but not on a large scale. The Internet allows for interactivity and individualization to be carried out in a way never possible before. With the advent of the Internet, businesses are able to both interact with large numbers of customers, yet treat them as individuals." (Evans and Wurster 1997)

Businesses are increasingly taking advantage of the power of the Internet to build relationships with customers in the electronic marketplace (Bakos 1991). Sharma (2002) suggests that the use of the Internet in relationship marketing has increased dramatically, primarily due to the value that can be generated and delivered to customers. The Internet allows instant access to information specific to a single customer. It provides for virtual communities where communication can occur between customers and company employees in a setting that never closes. The dependence on reaching someone during "regular hours" has been eliminated and the problems with operating in different time zones reduced. Transactions can be completed on a 24/7 basis. This is particularly important in business-to-business transactions where both parties are likely to be operating during some limited set of "regular" business hours. An additional advantage of the Internet is the reduction of costs for both buyer and seller. The buyer reduces time costs through self-service and more efficient ordering processes and the seller reduces costs through automated information systems. Both elements reduce the cost of transactions and interactions and lead to operational efficiencies for each participant (Sharma 2002). For example, when Dell Computers receives orders from business customers these orders are also instantaneously received by manufacturing, by suppliers and by FedEx, who delivers the computers (Sharma 2002).

While more than half of all e-commerce occurs in the business-to-business (B2B) market, most of the literature to date on CRM tends to focus on business-to-consumer (B2C) interactions. B2C interactions involve one-way communication and a passive recipient whereas B2B communications are interactive and involve two-way communications, often in real-time (Varadarajan and Yadav 2002). Online FAQs, automatic email responders, customized web pages, and order status reports are just some of the CRM practices in use today. Other more sophisticated applications in B2B markets include vendor-managed inventory, custom training seminars, virtual meetings and customer involvement in product planning. In fact, while as many as 50 revenue- generating business models have been developed and used on the Net (Hanson 2000; Rappa 200 1 ), rarely has any underlying rationale been explained (Lam and Harrison- Walker 2003).

While recent years have seen sporadic attempts to classify existing e-business models, classifications to date have not been tied to strategic objectives (Lam and Harrison- Walker 2003). For example, Strauss and Frost (200 1 ) and Shin (200 1 )

use the four Ps of marketing to arrange e-business models. Gordijn and Akkermans (2001) use IT systems and architectures to explain how certain models add value to users. Applegate (2001) analyzes business models based on their technical platforms. Dubosson-Torbay et al. (2002) propose a number of dimensions to characterize e-business models (required security, traffic scale, and so forth), but stop short at classifying them. The only attempt to classify e-business models to date that focuses on the strategic objectives of the firm relies on dimensions relating to the source of value (financial or non-financial) and the target audience (customers, channel members, or public at large) (Lam and Harrison- Walker 2003). In any event, none of the classifications focuses on customer relationship marketing in the B2B sector.

In summary, the Internet makes it possible for businesses to interact with large numbers of customers, while treating them as individuals. Although there is increasing reliance on the Internet for building relationships with customers, the business models in use on the Internet lack an organizing structure that specifically ties the models to relationship marketing objectives. The purpose of the current project is to present a typology that classifies the various Internet-enabled business- to-business CRM options available during the various stages of the decision process. The proposed typology can assist firms in designing new CRM strategies, or evaluating existing CRM strategies, relative to the relationship marketing objectives of the firm.

The remaining discussion is presented in four sections. First, the rationale for the typology is discussed. Second, the dimensions of the proposed typology are described. Third, the authors adopt a seller's perspective in classifying B2B CRM practices within the proposed typology. Fourth, contributions of the current research and managerial implications are identified and issues relating to selective application of CRM are discussed.

RATIONALE FOR THE PROPOSED TYPOLOGY

When choosing e-business models as part of a firm's overall CRM strategy, two key issues emerge that focus on the firm's strategic objectives. First, at what point in the buying process should the website be used? Should it be used prior to the purchase, to attract and assist potential and existing customers in searching for and accessing information about product alternatives? Should the focus be on helping customers in placing their order, finalizing the transaction, or coordinating fulfillment and delivery? Or should the focus be on providing customer service and promoting continuous customer involvement after the transaction is completed?

The second objective relates to the level of relationship the firm wants to have with a particular customer. Much has been written about the value of a customer and the extent to which customers and firms want relationships with each other (Dorsch and Carlson 1996). Firms want relationships with

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customers to the extent that customers are profitable for the company. The profitability of a customer may be direct (associated with the revenues generated from sales) as well as indirect (resulting from customer loyalty, referrals of other customers, and so forth) (Dorsch and Carlson 1996; Lam and Harrison-Walker 2003). After developing a database of customer activity, a firm can identify customers or segments that differ in terms of profitability. Calculations can be performed to determine how much to invest in each kind of customer to ensure that they have a profitable relationship with the firm. Stronger relationship bonds can be sought with more profitable customers. Berry and Parasuraman ( 1 99 1 ) provide a parsimonious depiction of strategies appropriate for building various levels of relationships with customers.

The proposed typology is based on these two strategic issues, which are labeled "Buyphase" and "Type of Relationship Bonding," respectively. The typology classifies a large number of existing business-to-business e-strategies (e-B2B models) and groups them into fewer categories. This provides a guide for firms to conduct an e-B2B audit of their current practices to ascertain the extent to which they are successfully building the desired level of relationships with customers throughout the buying process.

DIMENSIONS OF THE PROPOSED TYPOLOGY

The first dimension of the proposed typology is the stage of the purchase decision process (Buyphase) and includes pre- purchase, purchase, and post-purchase stages. The rationale for using the stages of the decision process as a first dimension is based on the notion that when buying products, customers generally follow a decision process that in some way involves pre-purchase, purchase, and post-purchase behaviors and that it is the marketer's objective to support the customer at each stage in order to retain the customer over the long term. The second dimension is the level of relationship marketing as identified by Berry and Parasuraman (1991). The seminal work by Berry and Parasuraman (1991) on relationship marketing is the very heart of CRM and thus presents a logical second dimension for the proposed typology. According to Berry and Parasuraman (1991), relationship marketing can be practiced on one of three levels, depending on the type and number of bonds that a company uses to foster loyalty. Level one is characterized by financial bonds; level two by social and financial bonds; and level three adds structural bonds to the mix.

Our typology is consistent with and supported by the conceptual framework of Varadarajan and Yadav (2002) for integrating the Internet into competitive strategy. First, they identify the three levels of competitive strategy: corporate strategy, business strategy, and marketing strategy. The current paper adopts the same perspective as Varadarajan and Yadav (2002), that is, marketing strategy. Marketing strategy "refers to how a business chooses to deploy marketing resources at its disposal to facilitate the achievement of competitive positional advantage(s) in the marketplace"

(Varadarajan and Yadav 2002, p.299). A firm's competitive positional advantages, in turn, affect its marketplace (customer satisfaction, customer loyalty, market share and growth) and financial (ROI, earnings growth, shareholder wealth) performance outcomes (Varadarajan and Yadav 2002).

Second, Varadarajan and Yadav (2002) examine selected linkages (drivers of competitive strategy). The current paper is consistent with and supported by at least two of the linkages: (1) the relationship between firm-specific skills and resources with competitive strategy and (2) the relationship between the buyer and buying environment characteristics with competitive strategy. First, with regard to the relationship between firm-specific skills and resources with competitive strategy, Varadarajan and Yadav (2002) point out that a firm's skills and resources in terms of the amount of information possessed about individual customers and the ability to use IT resources to customize interactions with customers determine a firm's ability to pursue certain competitive strategies in the electronic marketplace. For example, technologies allow a firm to recommend products to an individual customer, e.g. a segment size of one (Varadarajan and Yadav 2002). Increasing interest in managing customer relationships highlights the imperative for firms to focus on developing superior information assets and information processing assets. Second, with regard to the relationship between buyer and buying environment characteristics with competitive strategy, Varadarajan and Yadav (2002) note that significant changes are occurring in buyers and the buying environment as a result of the increasing reliance of buyers and sellers on the emerging marketplace. Standardized communications can be replaced with customized messages. The availability of sophisticated interactive decision aids in online buying environments can alter how potential customers search for product information and make purchase decisions (Haubl and Trifts 2000). Information search is quicker, easier, and produces relevant, timely product information about the current purchase decision. Buyers not only can learn how to evaluate a product, but they can also access the evaluation of other buyers who may have already purchased and used the product (Varadarajan and Yadav 2002).

As the use of Internet technology increases, every stage of the buyer' s decision-making process will be affected (Varadarajan and Yadav 2002). Sellers can leverage the technology to communicate with prospective buyers and deliver customer service before, during, and after a purchase, all of which is part of managing the customer relationship. The absolute amount of marketing resources a business chooses to allocate toward competing in the electronic marketplace, as well as the decisions regarding which technologies to use with which customer and at what point in the decision process, become critical to achieving the desired marketplace and financial performance outcomes. The proposed typology is developed in an effort to assist firms in making such decisions efficiently and effectively.

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Purchasing Decision Process - The Buyphase Dimension

Business-to-business buying is typically presented as a multi- step process beginning with problem recognition and ending with the purchase decision. The earliest attempt to describe the business buying process was made by Webster (1965). Webster's (1965) four step process included (1) problem recognition, (2) assignment of buying responsibility and authority, (3) search for information and establishment of selection criteria, and (4) choice procedure. The Webster model may have served as the foundation for the more detailed eight-stage process called the BUYGRJD model identified by Robinson, Farris and Wind (1967), or more recent models. For example, Weitz, Castleberry and Tanner (2000) and Hutt and Speh (2001) suggest an eight-step process while Bingham and Gomes (2001) have seven steps. In general, each of the business buying decision models consists of problem recognition, determining product specifications, finding qualified suppliers, requesting and evaluating proposals, selecting an order process, and conducting performance evaluation. Buyers perform the first two steps of problem recognition and determining product specifications internally, and therefore are not generally open to Internet intervention. The next two steps of finding qualified suppliers and requesting and evaluating proposals involve consulting outside sources and comprise pre-purchase activities.

The purchase transaction appears to be loosely described as a single step (e.g., selection of an order process), while the only post-purchase activity identified is performance evaluation. Future decisions to purchase again from the same vendor are not addressed in these decision models (cf. Ghingold 1987), yet this may be the most critical step of all in terms of relationship marketing. "Customer-intimate companies do not pursue one-time transactions; they cultivate relationships," (Zinszer 1 997, p.588). The objective of marketers is to move customers through the pre-purchase stage to the purchase stage to complete the transaction, and then to further assist customers in the post-purchase stage. In the post-purchase stage, the marketer attempts to reduce any lingering doubts the customer may have about the soundness of the purchase decision, assess the degree to which the product met or exceeded the customer's expectations, and to remedy any source of dissatisfaction. The ultimate goal of moving the customer through the three stages of the decision process is customer retention over the long term.

Relationship Marketing - The Type of Relationship Bonding Dimension

Relationship marketing can be defined as those activities directed towards establishing, developing, and maintaining successful relational exchanges (Morgan and Hunt 1994). Its central tenet is the creation of "true customers," that is, customers who are glad they selected a firm, who perceive they are receiving value and feel valued, who are likely to buy additional services from the firm, and who are unlikely to

defect to a competitor (Berry and Parasuraman 1991). Relationship marketing requires continuously strengthening the network for the mutual benefit of both sides, through interactive, individualized, and value-added contacts over a long period of time (Shani and Sujana 1992). Further, it requires an in-depth, personalized understanding of customer needs and characteristics (Perrien and Ricard 1995), not only today but as they evolve over time (Kandampully and Ria 1999).

Relationship marketing can be practiced on one of three levels, depending on the type and number of bonds that a company uses to foster loyalty (Berry and Parasuraman 1991). Level One, characterized by financial bonds, relies primarily on pricing incentives to develop customer loyalty. As noted by Berry and Parasuraman (1991), price is the most easily imitated element of the marketing mix and by itself does not offer sustainable competitive advantage (Berry and Parasuraman 1991). However, it is useful to note that financial bonding strategies that are implemented by offering price discounts or reductions to the customer serve to lower the 'cost' side of the value equation for the customer. Adopting this broader view, we see that Level One bonding may be implemented through strategies that reduce the cost side of the value equation. Both money and time are common components of cost and both represent resources that can be exchanged (Foa 1976). Customers give up money in terms of the price that they pay and give up time in terms of the search and selection process. Therefore, standardized strategies that serve to lower the cost side of the value equation for the customer that are easily imitated by competitors may be considered financial bonding strategies. Adopting the broader perspective that includes both money and time, we refer to Level One bonds as 'economic bonds.' This broader perspective is adopted for purposes of classifying B2B CRM practices in the proposed typology.

Level Two, characterized by social and financial bonds, emphasizes personal service, staying in touch, learning about wants and needs, and customizing the relationship in response (Berry and Parasuraman 1991). It uses giveaways in a social context to express friendship and gratitude for the relationship (Berry and Parasuraman 1991). The giveaways have social meaning rather than financial meaning and thus are far more difficult for competitors to imitate (Berry and Parasuraman 1991). The strategic impact with incentives is the personalization and customization of the item offered (see Mogelefsky 2000). A genuine appeal to the customer's interest is most effective. For example, if one of the clients biggest interests happens to be fly-fishing, then a token gift related to fly fishing will be more effective than a more expensive, but generic corporate gift (see Mogelefsky 2000). Level Two strategies can withstand some types of competitive pressures, resulting in a longer-term relationship than what can be achieved in Level One (Berry and Parasuraman 1991).

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Level Three, which adds structural bonds to the mix, involves providing services that are valuable to customers and not readily available from other sources (Mogelefsky 2000). Strategies used at this level are often technology-based, and intended to help customers become more efficient or productive. Structural bonds are related to increasing customer commitment (Han 1992), building exit barriers (Dwyer, Schurr and Oh 1987), and raising customers' switching costs (Berry and Parasuraman 1991). Exit barriers are exchange structures that result in difficulty or disincentives for customers who wish to cancel the exchange relationship (Dwyer, Schurr and Oh 1987). Switching costs are the psychological, social, and economic costs a customer incurs when changing a supplier (Gruca 1994; Sengupta and Krapfe 1997). An example of a switching cost identified by Heide and John (1990) is when buyers have developed routines and procedures for dealing with a specific vendor that need to be modified if a new relationship is established. For example, ordering from a supplier over the Internet may be simplified for the buyer if the supplier's part numbers can be electronically paired to the buyer's item numbers, saving the buyer significant time in looking up the correct part number used by each supplier. When this type of part-matching is made available by a particular supplier, it becomes inconvenient for the buyer to switch to another supplier. Thus, the structural bond created by the matching system represents a switching cost for the buyer. The objective associated with moving from Level One to Level Two to Level Three is to develop increasingly stronger relationships with customers that are less and less susceptible to imitation by competitors.

TYPOLOGY FOR B2B CUSTOMER RELATIONSHIP BUILDING

The typology presented in this paper uses the stage of the decision process as the first dimension, with slight modification. First, the current conceptualization extends the decision process to elaborate upon the activities that occur during the purchase and post-purchase stages. This 3-stage model is a parsimonious yet complete characterization of buying decisions in B2B markets. More specifically, the steps of finding qualified suppliers and requesting and evaluating alternatives are collectively referred to as the "Pre-Purchase" stage. During this stage the buyer is searching for and accessing information about suppliers and their products. The seller is trying to provide appropriate information to assist buyers in making their selections. All of these activities involve communication between buyer and seller, often in real-time.

Steps included in the "Purchase" stage include establishing an order routine or procedure and issuing a contract to finalize the transaction. The Purchase stage specifically includes any activities that are used to facilitate placing the initial order as well as placing future orders for the same or different products. Also included are practices related to order fulfillment and delivery.

The "Post-Purchase" stage focuses on short-term vendor evaluation, as well as the various aspects of customer service (such as order tracking and product return) and continuous customer involvement that follow the initial sale. The terms Pre-Purchase, Purchase, and Post-Purchase are thought to more adequately capture the dyadic aspect of relationship building, as opposed to the decision process stages which focus exclusively on how the buyer makes purchase decisions. The proposed model of three stages emphasizes the interactions between buyer and seller before, during and after a purchase. Internet technology allows human-to-human collaboration, negotiation, and transactions that streamline and improve decision-making (Furlong 2002).

The second dimension of the proposed typology is the type and number of bonds that a company uses to foster loyalty: economic, social and structural bonds (see Berry and Parasuraman 1991). The three stages of the business purchasing process are combined with the three levels of relationship marketing to provide a 3X3 classification system that is useful for classifying CRM practices used in B2B marketing (See Table 1). Note that the list of web practices presented in Table 1 is not all-inclusive; new e-business models are being introduced all the time.

Pre-Purchase Stage

In the Pre-Purchase stage, customers recognize that there is a product or service that is needed by their company, seek out information about products that will fit their needs, as well as about supplier alternatives, and identify the product and vendor that will best meet the company's specifications. Companies can implement various CRM practices to develop economic, social, and structural bonds with their prospective business customers.

Economic Bonds (Cell 1 : Standardized Search Assistance)

Companies interested in developing Level One relationships during the Pre-Purchase stage seek to establish economic relationships with prospective customers primarily by reducing the time that is required of customers to gather information about product alternatives and selection criteria. More specifically, strategies included in Cell 1 of Table 1 are standardized strategies that are used to assist customers in their search for information and establishment of selection criteria. CRM managers may use CRM practices to facilitate the information search in several ways. For example, product information can be conveyed through electronic catalogs, frequently asked questions (FAQs), online product demonstrations, and new product announcements. These applications represent non-targeted communications in the sense that all potential customers who inquire receive the same information. Even though they are standardized communications, they still provide a customer benefit, primarily by reducing search time, which in turn reduces costs. For example, the electronic catalog gives buyers current

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TABLE 1 TYPOLOGY OF B2B RELATIONSHIP MARKETING PRACTICES ON THE INTERNET

TYPE OF BUYPHASE RELATIONSHIP 1 1

BONDING PRE-PURCHASE PURCHASE POST-PURCHASE

Cell 1: Standardized Cell 4: Standardaized Cell 7: Standardized Search Assistance Purchase Faclitation Customer Support

Online Product Electronic Ordering Order Tracking/Order ECONOMIC BONDS Demonstration and Payment Status Reports

Electronic Catalog Real Time Inventory Product Return Assistance Status

FAQ

New Product Announcement

Competitive Comparisons

Cell 2: Personalized Cell 5: Personalized Cell 8: Personalized Search Assistance Purchase Facilitation Customer Support and

Involvement Personal Greeting Product

SOCIAL BONDS Recommendations Discussion Discussion Groups/Forums

Groups/Forums Customized Product Design Customer Training

Chatrooms/Bulletin Seminars Boards

Customer Involvement Guided Product in Planning

Selection Customer Feedback

Cell 3: Technology-Based Cell 6: Technology-Based Cell 9: Technology-Based Search Assistance Purchase Facilitation Customer Support and

Involvement Browser Sharing Favorites Page for Frequently

STRUCTURAL Ordered Items Customer Activity BONDS Real Time Q&A Record (CAR)

Vendor-Managed Inventory Tracking(Interactive) Virtual Meetings

Document Storage Internet Telephony Customer Service

information about product specifications and availability. FAQs are a set of questions that a large number of potential customers are likely to have in common and typically are derived from the company's experience. To be effective, the company must be able to anticipate customers' questions and address these questions online. An online product demonstration not only eliminates the waiting time to schedule a demonstration in person, but also likely provides demonstrations to customers who may not be motivated for a variety of reasons to schedule an in-person demonstration. New product announcements are slightly different in that the company does not wait for the customer to seek out information, but rather delivers information about new

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products to the customer using permission marketing. Once again, customers benefit from reduced information search time.

Another strategy that may be effective for developing economic bonds in the Fre-Purchase stage is providing competitor comparisons. For example, Progressive Insurance advertises that it will provide potential customers with price quotes from up to three top competitors. Online competitive comparisons may include price as well as service information. Buyers potentially benefit from reduced information search time, as well as lower purchase prices. While business buyers have long been concerned with finding the lowest price for a

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product while still meeting minimal product and service specifications, reducing costs by streamlining the information search process is receiving increasing attention (Bakos 1997; Varadarajan and Yadav 2002; see also Haubl and Trifts 2000; Sinha2000).

Social Bonds (Cell 2: Personalized Search Assistance)

Strategies included in Cell 2 of Table 1 are strategies that are used to personally acknowledge customers and provide personalized assistance with their search for information and establishment of selection criteria. To foster the development of social bonds in the Pre-Purchase stage, the CRM manager may use a number of personalized methods. A company may provide potential customers with product information that is customized and personal. Techniques that develop social bonds at the Pre-Purchase stage include personal greetings, discussion groups/forums, guided product selection, chat rooms and bulletin boards. The seller may use cookies (small files written to the user's hard drive after the user visits the company's web site) so that when the buyer returns to the site, he or she can be greeted by name. The ability of cookies to collect information about customer habits and preferences presents, in some cases, a potential for abuse. Information believed by users to be confidential may be transmitted to other vendors or made available for uses unanticipated by the user (Coupey 2001). Although users can disable cookies, many users are not aware that cookies exist or lack the technical knowledge to disable them. It is important for companies to develop effective forms of self-regulation to protect users. According to Hoffinan and Novak (1999), the few web sites that tell users that they are tracking them and recording their data follow the traditional opt-out model. The default position of even the best opt-out policy is that unless the web site is otherwise informed, it is free to use the data in any way it sees fit (Hoffinan and Novak 1999). Importantly, users realize that data are important to marketers and are interested in providing such data. Ninety-two percent of users report that they would willingly provide data to web sites if the sites would only provide a statement regarding how the information collected would be used (Hoffinan and Novakl999).

With guided product selection, a seller can assist the buyer in the selection of a product that is based on standardized procedures. For example, a supplier could set up a multi-step method to assist customers with product selection. Buyers would be asked a series of questions regarding product and service specifications (with explanations available at the touch of a button if needed) and a product recommended based on the customer's expressed set of specifications and purpose or application. Other social bonding strategies at the Pre- Purchase stage include discussion groups, forums, chat rooms or bulletin boards where buyers can interact with each other or with a third party, such as an expert in the field. Although the primary use of these community-building strategies may be at the Post-Purchase stage, they may also be helpful in instances where customers seek each other's advice in product selection.

Structural Bonds (Cell 3: Technology-based Search Assistance)

Strategies included in Cell 3 of Table 1 are generally technology-based strategies that are ( 1 ) used to help customers be more efficient or productive in their search for information and establishment of selection criteria and (2) not readily available from competitors. Structural bonds can be established during the Pre-Purchase stage by enabling buyers to access product information through applications such as real-time Q&A or browser sharing. Real-time Q&A allows buyers to communicate with a customer service or sales representatives in real time by typing their questions right onto the computer screen; the company representative reads the screen and responds instantly. When buyers need assistance finding their way around the web site or interacting with the web site, browser sharing technologies allow service representatives to physically guide the customer around the web site. While real-time Q&A and browser sharing typically require the customer to initiate an inquiry, another practice known as tracking (or 'real-time profiling') relies on more advanced technologies to monitor a customer's movements through a web site. Tracking allows the seller to analyze a buyer's online behavior and make instantaneous adjustments to web pages, promotions, and pricing (Strauss and Frost 2001), or to initiate customer assistance through real time communication or browser sharing. Using tracking technology, GreatCoffee.com is able to greet buyers with personalized web content on their very first visit (Strauss and Frost 2001).

ACME Truck Line recently implemented a custom web-based CRM system that provides activity tracking and lead sharing integrated with its divisions handling truck dispatches, accounting, billing and collections (Compton and Ullman 2003). This system gave the company the ability to move buyers from first-time customers to long-term relationships. Historically, the company had no process for following-up with first-time buyers, so a prime source for new business was being untapped. In fact, ACME has quadrupled the number of leads available to the sales force each month and captured repeat business from more than 25 percent of new customers (Compton and Ullman 2003).

Purchase Stage

In the Purchase stage, customers have made a decision about product or vendor selection and want to complete the purchase as expeditiously and cheaply as possible. Their expectations may be quite high in terms of order processing, filling and delivery. The Purchase stage specifically includes any activities that are used to facilitate placing the initial order as well as placing future orders for the same or different products.

Economic Bonds (Cell 4: Standardized Purchase Facilitation)

During the Purchase stage CRM managers seeking to establish economic bonds realize that to meet buyer expectations with

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respect to order handling it will be necessary to accelerate all aspects of its processing operation. This, in turn, reduces the time required of customers for making their purchases. Strategies included in Cell 4 of Table 1 are standardized strategies that are used to facilitate and expedite the purchase transaction. Electronic ordering and real-time inventory status provide buyers with standardized order forms, instant information on product availability, price confirmation, and shipping details. Electronic payment allows the buyer to complete the transaction and the seller to receive payment instantaneously, reducing the costs associated with billing. All of this occurs within a few minutes and requires little effort on the part of the buyer or the seller. Streamlining the mechanics of the purchasing process and ensuring product availability at the time of the order introduces significant operating efficiencies, reducing search time for the buyer and thus reducing costs.

Social Bonds (Cell 5: Personalized Purchase Facilitation)

Developing social bonds during the Purchase stage requires the CRM manager to have a greater understanding of the buyer's specific needs, and to provide personal attention and assistance. Strategies included in Cell 5 of Table 1 are strategies that are used to provide personal assistance to close the sale and facilitate the purchase transaction. For example, through the use of collaborative filtering, the seller is in a position to make product recommendations to the buyer. Often buyers are too involved in day-to-day operations to explore and consider all the various products for a given application. Recommendations from the seller may be based on the buyer's prior purchase behavior or the purchases made by other customers for similar applications. (Collaborative filtering and product recommendations are included in the Purchase stage rather than the Pre-Purchase stage because the buyer must either already have a buying history with the firm or have made product selection so that customer preferences can be identified and recommendations made based on those exhibited preferences.)

Customized product design requires that the seller truly understands the buyer's unique set of needs in order to develop a solution in the form of a customized product. While Dell Computer is often credited with pioneering the idea of customized products on the Internet, businesses have been offering customized products to business customers for years. Depending upon the degree of customization (e.g., the use of modular units from a fixed list versus true customization), the ultimate solution represents a unique response to a specific customer's problem. GE Plastics uses interactive technology to help customers design virtual product prototypes and work in a secure environment with engineers.

Structural Bonds (Cello: Technology-based Purchase Facilitation)

In the Purchase stage, the CRM manager will be seeking ways to provide an experience for the buyer that will cause the buyer to be a repeat customer with a strong preference for buying from the company again in the fiiture. With structural bonds, the seller seeks to offer services during the Purchase stage that are not easily duplicated by competitors, and that will enable buyers to be more productive and efficient. Strategies included in Cell 6 of Table 1 are generally technology-based strategies that are used to facilitate and expedite the purchase transaction. One strategy is the construction of a favorites page for items that are frequently ordered by a particular buyer. The favorites page is unique to each buyer and is designed to expedite the ordering process when routine purchases (or reorders) are being made. Vendor-managed inventory places the responsibility for inventory management on the supplier rather than on the purchaser. For example, through a special computer link with Costco, Kimberly Clark can make quick decisions about where to ship more Huggies and other Kimberly Clark products (Nelson and Zimmerman 2000). Kinko's offers customers the option of storing their documents and computer files on its web site. This allows them to reproduce copies in smaller quantities according to their needs (Joachim, 2002).

Post-Purchase Stage

The Post-Purchase stage is often described simply in terms of vendor evaluation. However, in terms of CRM, this stage also includes the various aspects of customer service (such as order tracking and product return) and continuous customer involvement that follow the initial sale.

Economic Bonds (Cell 7: Standardized Customer Support)

In the Post-Purchase stage CRM managers may focus on ensuring efficient communication about the order so that the buyer will not be required to expend effort, time, or expense to stay informed about the status. Customers want quick, accurate ways to handle any Post-Purchase questions or concerns. Once an order is placed, the buyer's primary concern is the status of the item from the point of order to the point of delivery. Strategies included in Cell 7 of Table 1 are standardized strategies that are used to provide ongoing customer support after the sale has been made. The company can either provide a web site for the buyer to visit to check the status of an order or send a series of automated reports to the buyer via email letting the customer know (1) that the order was received, (2) the expected date of shipment, (3) the date the order actually shipped and (4) expected delivery date. Automated email reports are more effective in reducing a buyer's search time and should therefore prove more effective than requiring the purchaser to visit a web site periodically to see whether the status of the order has changed.

The second concern following the purchase is how to return an unneeded or defective product. Some companies include return forms and return shipping labels in the delivered

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package; others go a step farther and prepay the return postage. Other companies allow customers to return the product to a local distributor. The benefits to the buyer of product return assistance efforts are both time efficiency and financial cost.

Social Bonds (Cell 8: Personalized Customer Support and Involvement)

The Post-Purchase stage provides many opportunities for CRM managers to create social bonds with customers. Strategies included in Cell 8 of Table 1 are personalized strategies that are used to provide ongoing customer support and elicit continued customer involvement with the company after the sale has been made. For example, discussion groups or online forums allow buyers to talk to others that share similar interests. "In discussion groups, users feel part of the site by posting their own information and responding to others," (Strauss, El-Ansary and Frost 2003, p.233). They gain access to information and the social bonding that occurs simultaneously keeps them coming back to the site (Strauss, El-Ansary and Frost 2003, p.232). A company can post specific discussion topics in advance to encourage repeat visits. These kinds of web sites encourage users to return again to see what their cyber colleagues are doing and discussing online (Strauss, El-Ansary and Frost 2003).

A second strategy is to provide customized training seminars over the Internet. Customers could be provided password- protected access to the seminar to learn about how to use or maintain a product that was purchased. The seminar can be customized to the needs and applications of the customer.

A third strategy involves actively soliciting customer involvement with web site or product planning. For example, if a company plans to introduce a new product line on their web site, they can ask customers to assist with the layout of the page as well as the specific assortment of products that should be made available on-line. To learn more about customer needs and assist with new product development, the company may solicit customer feedback, points-of-view on products, or comments and suggestions on a range of topics that will help the company provide its customers with increasing levels of satisfaction.

Structural Bonds (Cell 9: Technology-based Customer Support and Involvement)

Strategies included in Cell 9 of Table 1 are generally technology-based strategies that are used to provide ongoing customer support and elicit continued customer involvement with the company after the sale has been made, and to do so in a manner that is not readily available to customers via other sources. Structural bonds can be strengthened in this Post- Purchase stage using available and emerging technology to have real-time, personalized conferences between the buyer and the seller and then using the information to develop an up-

to-date customer profile. Customer activity records (CARs) result from the need for a company to be able to track information about purchasers across many channels (Harrison- Walker 2001). As noted by Jacobs (2001), buyers randomly traverse channels - from the web to call center to local distributor, back to web, and so on - all the while expecting to be recognized every step of the way in a continuous dialog. "Each and every time a customer makes a contact with the company (whether to make a purchase, make an inquiry, or file a complaint), the nature of the contact should be registered on a centralized customer activity record" (Harrison- Walker 200 1 , p.407). Buyers expect companies to execute effectively across channels (Jacobs 2001). Despite customer expectations, CARs still offer companies a distinct competitive advantage since so few companies have such an ability. "This is the silo effect: potentially valuable customer information gets locked into one of several disparate databases" (Jacobs 2001,p.323).

Virtual meetings are becoming an increasingly popular means of bringing people together without actually moving them around. Voices can be transmitted over telephone lines while presentations are viewed over desktop computers. Through the use of whiteboard applications, buyers have the opportunity to collaborate with each other, as well as with the supplier.

A complementary developing technology called Internet telephony goes one step further than real time Q&A, relying on the web to transmit phone calls. Online interaction may be personalized when live representatives are able to speak to customers during an online session over a web-based voice connection (Jacobs 2001). At times, the voice quality is not good, but it is reliable (Strauss and Frost 2001). If the company representative is simultaneously armed with real- time access to the customer's CAR, the representative is able to deliver a high-quality experience that combines self-service and professional assistance (Jacobs 2001).

Evaluation of the Proposed Typology

The ultimate usefulness of the proposed typology is an empirical question that requires the passage of time to answer. However, at this preliminary stage the typology can be assessed using the criteria proposed by Hunt (1976a, 1978) and later applied and expanded upon by Arndt (2001). First, the typology presented in this paper is not (and does not purport to be) a theory. The typology may more appropriately be considered a classification schema. "By Hunt's own criteria, a classification schema is a device for partitioning some universe of elements or statements into homogeneous groups," (Arndt 200 1 , p.29). Therefore, we proceed to apply Hunt's (1976a) own criteria for evaluating classification schema. The first criterion relates to the adequacy of the definition specifying the phenomenon to be classified. The object for classification in the current typology includes B2B CRM practices on the Internet. The second criterion involves

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the extent to which the categories established by the dimensions of the typology are adequately specified. The dimensions of Type of Relationship Bonding and Buyphase are rooted in the existing marketing literature. Each type of relationship bond is clearly described by Berry and Parasuraman (1991) and the three stages of the decision process capture the stages of the business buying process as defined by Webster (1965), Robinson, Farris and Wind (1967), Weitz, Castleberry and Tanner (2000), Hutt and Speh (2001), and Bingham and Gomes (2001). Specifically, in terms of Internet applications, the typology is inclusive in that it succeeds in including a wide range of CRM Internet practices. The typology is collectively exhaustive (the third criterion) in that the dimensions capture the two dimensions of relationships - depth and duration.

The fourth criterion of mutual exclusivity of the categories may be debated. For example, community-building strategies may be used by first-time customers in terms of making a product selection, yet their primary use is at the Post-Purchase stage. However, this is a rare example of a practice that may have some application in more than one cell of the typology and there is value to the business manager in recognizing the full range of benefits of any particular practice. Furthermore, the focus of the typology is on managerial usefulness, the fifth criterion. As discussed in the section on Managerial Implications to follow, the typology is managerially useful in terms of diagnosis and strategic planning. The typology is analytically useful in that a number of relationships, both within the framework and as a result of the framework, can be investigated empirically (see Future Research section below). The typology is pedagogically useful in that it can be used as a teaching device. Marketing students can readily understand the typology. They are familiar with the two dimensions of the typology, as well as with a number of the e-business models in use today that are classified within the typology. Only those students who are not familiar with marketing (or, not familiar with CRM) may need additional instructional support to understand the underlying marketing theories.

Finally, the typology appears to be conceptually robust since it is based on established marketing theory (e.g., purchase decision stages and relationship bonds). However, the ultimate test of both the conceptual robustness and the desirability of the proposed typology as a general framework for eB2B CRM Internet strategy is time (Hunt 2002).

In summary, the typology would seem to be an acceptable framework that could resolve some of the critical problems in marketing (Hunt 1978). The typology (1) adequately defines the phenomenon to be classified; (2) adequately specifies the dimensions of the typology; (3) is collectively exhaustive and (4) mutually exclusive; is (5) managerially, analytically, and pedagogically useful; and (6) is conceptually robust, at least until technologies change in a significant manner (see Hunt 2002).

CONTRIBUTIONS AND MANAGERIAL IMPLICATIONS

Given the high failure rate of CRM programs, understanding CRM becomes critical in today's business climate. Nearly half of U.S. implementations and more than 80 percent of European implementations are considered failures (see http://www.insightexec.com/cgi-bin/item.cgi?id:=50092). It is difficult to fathom failures of such monstrous proportions, especially when complete CRM installations can cost millions of dollars and then hundreds of thousands of dollars more per annum (Taschek 2001). As explained by Dorsch, Swanson, and Kelley (1998, p. 129), "Even though many marketers are quick to embrace the wisdom behind relationship marketing, they often fail to effectively implement relationship marketing programs."

The primary managerial contribution of this paper is classifying a sizeable number of Internet-enabled B2B relationship marketing practices into a useful framework according to the stage of decision-making and the nature of the relationship bond. While the proposed typology attempts to differentiate financial, social, and structural bonds, it is important to note that Berry and Parasuraman (1991) identify Level 3 as a combination of financial, social, and structural bonds and therefore firms seeking the highest level of relationship marketing should employ strategies from all three rows of a given column in Table 1, not simply those identified in the last row. In other words, to gain maximum competitive advantage, a company should not rely solely on technologies associated with developing structural bonds, but rather on a combination of technologies aimed at building financial and social, as well as structural bonds.

Furthermore, the specific technologies selected by the firm should be designed to move individual buyers through the decision-making process one stage at a time. Companies should attract prospective buyers at the Pre-Purchase stage and provide them with the information necessary to reach a decision, assist buyers (once they have reached a decision) in executing their purchase transaction, and maintain relationships with customers following their purchase. To simply provide a list of responses to frequently asked questions and guided product selection is to "drop" the ball. In order to build long-term relationships, firms need to proactively assist buyers throughout the purchase process and to support them once the purchase has been made. Thus, firms need to employ B2B customer relationship practices from each of the cells in Table 1, not simply from one row or one column. The question may then be asked whether or not there is value in breaking the strategies apart into the various cells. The immediate benefit to managers of the typology is in terms of diagnosing a current situation. The marketing manager can examine the current internet practices of the firm and plot them into the appropriate cells to determine the extent to which practices are in place to ( 1 ) move a customer through all phases of the decision process, rather than perhaps only

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addressing the Pre-Purchase stage and (2) build the strongest relationships possible through a combination of financial, social, and structural bonds.

The proposed typology may not only be useful for diagnosis, but also for strategic planning. Should the results of the diagnosis indicate that practices are not currently in place to move customers through each step of the decision process and build the strongest relationships possible, Table 1 may be consulted to identify practices that might be employed in the empty cells of the firm's CRM matrix. For example, a company may use the typology to plot its existing B2B CRM Internet strategies. Once completed, the company's profile of CRM Internet practices may reveal that while the company is using a number of popular pre-purchase strategies such as FAQs, electronic catalogs, chatrooms, guided product selection, and real-time Q&A, electronic ordering and payment may be the company's only purchase strategy. Further investigation may determine that while buyers are attracted to the site and looking at information, they are leaving the site without making a purchase. The company could then consult the typology to identify purchase strategies at the various levels of relationship bonding which may be implemented in order to turn shoppers into buyers. Alternatively, a company may find that it uses many of the economic bonding strategies (FAQs, competitive comparisons, electronic catalogs, electronic ordering and payment, order tracking and product return assistance), yet has a very high rate of customer defections. CRM strategies identified in the typology designed to build social and structural bonds may be used to increase customer retention.

While the specific strategies identified in Table 1 are not new to the literature, the organization of the strategies in the proposed typology should help marketers methodically devise new strategies for any or all of the cells. This is the third important contribution of the article. That is, using the proposed typology, marketers may now think specifically and deliberately about new practices (not identified in Table 1 ) that could provide a particular level of bonding at a given stage of customer decision-making based on the firm's product and customer knowledge. Once again, the idea is for the seller to employ a full range of CRM strategies at each stage of the decision process. Consider the following example that could be developed using Table 1. Business buyers will often do straight rebuys for previously ordered items. In a straight rebuy situation, the buyer chooses from suppliers on its "approved" list, giving weight to its past buying satisfaction with various suppliers. These purchases are low risk in nature; that is, the competitive items offered by different suppliers are perceived to be near equal, such as with office supplies or wood pallets. Based on a customer's buying history, reminders could be emailed to the customer at the time when a reorder would be expected to remind them to check their inventory. Permission marketing should be used to make sure that such reminders would be perceived as helpful. With a simple keystroke, the straight rebuy could be put into process.

Straight rebuy reminders represent a strategy that would provide social bonding at the Purchase stage. Such reminders are the logical precursor for the higher level bonding approach of vendor-managed inventory (identified in Table 1). Using vendor-managed inventory, straight rebuy purchases are handled automatically by a triggering mechanism set at a specified inventory level or a certain day of the month.

A further contribution of the article is the combination of Berry and Parasuraman' s ( 1 99 1 ) seminal work on relationship bonds with the stages of the decision making process to create the framework for the typology. In addition to Internet applications, the framework can also be used to classify non- Internet practices. With some revisions the typology could also be used to classify strategies in B2C markets as well as B2B markets. Classifying practices into this framework can prove useful for diagnosis, strategic planning, and to stimulate the creative identification of truly innovative strategies to achieve a specific goal, such as building social bonds during the Purchase stage.

Implementation Issues

Using Internet technology to develop and maintain customer relationships can increase customer satisfaction, which in turn can enhance trust and commitment. The relationship between Internet technology and satisfaction is explored by Bitner and Brown (2000). More specifically, Bitner and Brown (2000) discuss the positive effects of infusing various levels of technology into service encounters and suggest that self- service technologies (such as the wçb) actually empower customers to do repeated transactions on a more frequent basis, which may ultimately lead to enhanced satisfaction levels. Trust and commitment lead to stable buyer-seller relationships, which are necessary for long-term success (Bauer, Grether and Leach 2002). How does a marketing manager develop and maintain strong relations with and commitment from its customers? Smith and Chaffey (2002) suggest that one must begin with the primary determinants of loyalty identified by Reicheld and Schefter (2000): (1) quality customer support, (2) on-time delivery, (3) compelling product presentations, (4) convenient and reasonably priced shipping and handling, and (5) clear trustworthy privacy policies. TTien, the marketer must use the various Internet practices to (1) provide extra service and value, (2) personalize the offering or experience, (3) create communities to engage customers, and (4) use structural techniques to lock in the customer, creating a switching cost.

Using Internet technology in CRM may also have a downside. First, conducting business on the Internet raises customer expectations, not only for online business but for off-line business as well. Buyers expect firms to make full use of the power of the Internet in their on-line dealings. They expect a firm's online communications to be fast, inexpensive, convenient, integrated, highly personalized, proactive, and available from a variety of online and offline channels. With

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expectations increasing as fast as Internet technology itself, companies must move quickly to keep up. If rising expectations are not met, purchasers may increasingly stray, looking to the competition to meet their needs.

Second, the costs associated with implementing the various CRM techniques appear to rise with increasing customization, higher levels of technology, and a greater need for company interaction with the web site (e.g., as one moves from the top left corner to the bottom right corner of Table 1). For example, listing frequently asked questions is standardized, requires little in the way of technology, and requires only infrequent updating. Virtual meetings or Internet telephony are customized, technologically sophisticated, and require management's constant attention. As with any investment, it is important for the company to weigh the costs of a particular CRM strategy against the benefits. The standard 80-20 rule suggests that 20% of a firm's customers provide 80% of the firm's profits. Fortunately, Internet technology makes it possible for a firm to selectively focus its higher cost CRM strategies on its highest profit customers and respond in real time. A firm can identify its high value customers by mining and profiling in customer databases and using real-time and real-space data collection techniques (Strauss and Frost 200 1 ). Many firms use RFM (recency, frequency, monetary) analysis to mine databases for those buyers who spend the most money and buy frequently and recently (Strauss and Frost 2001).

Another cost consideration is the cost associated with servicing a particular customer. "Some customers simply take more time, calling customer service representatives with questions and inquiries, and some return products frequently" (Strauss and Frost 2001, p.289). Some customers are clearly less profitable than others. According to the Rogers and Peppers Group, a firm can effectively employ differentiated strategies provided at least half of its profits come from 20% or fewer of its customers (Strauss and Frost 2001). Once the costs of a particular practice are weighed against the value of a particular customer, a determination can be made as to which type of bonding and which specific practice is cost effective over the long term to implement. In particular cases, for example, it may only be cost effective to use financial bonding rather than social or structural bonding based on the cost- benefit trade-off.

Third, an implicit assumption is made in much of the relationship marketing literature that customers want relationships (cf. Berry and Parasuraman 1991). More specifically, "It seems to be widely assumed by scholars and practitioners that a relationship can be formed with any customer, in any situation. Such an assumption is dangerous in that it may lead companies to attempt to form relationships in situations where a genuine relationship cannot be formed because customers do not want one..." (Barnes and Howlett 1998, p.15).

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In summary, the proposed typology organizes various Internet practices in terms of the stage of the decision process and the type of relationship bond formed between the buyer and the seller. Managers can assess their current strategies to evaluate the extent to which buyers are being assisted before, during and after the purchase decision is made and the nature of the relationship bonds being formed with their customers. Ideally, a company should be assisting customers at all three stages of the decision process and selectively focus higher cost CRM strategies on forging relationships with higher value customers that will withstand competitive solicitations. The list of practices is not intended to be exhaustive; rather, the typology should ideally stimulate managers to design practices not identified in Table 1 with specific goals in mind as to decision stage and relationship bond. Understanding how to design and implement effective CRM strategies is especially important in today's business climate due to the high failure rate that CRM activities have incurred over the past few years.

Limitations To The Research

There are some limitations to the current research that should be noted. First, the authors chose to use stages of the purchase decision process and levels of relationship marketing for the two dimensions of the typology. While these dimensions do in fact appear to be the most strategically useful for classifying B2B CRM strategies, other dimensions for a typology based on objectives other than CRM are not explored. Certainly, CRM is not the only long-term objective of a firm.

Second, the authors chose to collapse step three and step four into a single Pre-Purchase stage primarily because the dyadic activity that is taking place is information gathering and evaluation. (Recall that the first two steps in the business-to- business decision process are (1) problem recognition and (2) determining product specifications. Each of these two steps is performed internally by the organization and generally do not involve accessing the Internet.) The third and fourth steps, finding qualified suppliers and requesting and evaluating alternatives, is the focus of the Pre-Purchase stage identified in the current paper since this is where marketers can have an impact. Perhaps an interesting area for future research might be to consider the extent to which marketers might influence the establishment of selection criteria (separately from information search).

Third, the authors included a number of Internet practices in the various cells of the proposed typology. However, the list of web practices is not comprehensive and there are likely a number of practices that may be categorized into the proposed framework. Certainly, new practices are being developed on a regular basis and it would be nearly impossible to try to keep up. Researchers and managers alike may add web practices to the matrix as needed or desired.

Fourth, the typology as proposed may not generalize to relationships that are initiated by and/or controlled by the

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buyer since it examines various CRM strategies from the seller's viewpoint. It assumes the buyer is a relatively passive recipient of information, not an initiator of information. In addition, there is the implicit assumption that buyers will want to establish relationships.

FUTURE RESEARCH AND RESEARCH PROPOSITIONS

In keeping with its stated purpose, this paper presents a typology of CRM practices, with specific emphasis on B2B interactions. However, the paper leaves a number of strategically important questions unanswered that should be addressed in future research. Some of the questions may be considered within the typology, while others may be considered more macro-type issues.

Strategic Issues Within the Typology

There are at least three strategically important questions that may be raised that are internal to the typology. First, although the paper identifies a number of strategies for each cell in the typology, it does not discuss the means for migrating customers from one cell to the next.

Second, the theory could be advanced by identifying, theoretically and then empirically, the expected outcomes from employing the different types of bonding at each stage of the purchase decision process. For example, the company may wish to assess the extent to which the practices designed to build structural bonds with customers act to retain customers through affective ties (where customers stay with the company because they want to) versus simply increasing switching costs (where customers stay with the company because they feel they have to). Two very different forms of loyalty may be developed, with very different outcomes.

Third, the company may want to assess the extent to which the quality of a practice at one stage of the decision process affects the outcomes achieved at a later stage. More detailed attention may be given to identifying which stage or stages of the model it would be most productive for a given company to elaborate upon and for what audience. This ties into the notion of "strategic fit."

Strategic Issues External to the Typology

Macro-type issues that remain to be addressed consider the effect of the strategic fit of the CRM strategy on organizational outcomes. In general, the impact of any marketing strategy on performance is influenced by three factors: how well the strategy fits the situation, the effectiveness of the strategy implementation, and how much the environmental situation changes during implementation (Cravens 1988). Within the context of this paper, we focus on the strategic fit of the CRM strategy and use the term "CRM strategic fit" to refer to two situations. First, it means developing relationships with

customers (who want relationships) in all three stages of the decision process, while selectively focusing higher cost CRM strategies on higher value customers. While various specific Internet practices each form a component of an integrated relationship-marketing program, they do not necessarily represent a strategic approach to relationship formation (Barnes and Howlett 1998). Alternatively, CRM strategic fit also means not trying to build relationships with customers who do not want relationships. Barnes and Howlett (1998) find that too many relationship-marketing programs are based on raising switching costs for a customer or relying on database-driven information to market "at" a customer, one who may or may not be interested in a relationship. In summary, a good strategic fit of CRM practices should lead to positive organizational outcomes by developing relationships with the "right" customers. Within the context of building business relationships using the Internet, it is proposed that:

PI: eB2B CRM strategic fit has a positive impact on organizational (marketplace and financial) performance.

The second factor that influences the effect of CRM strategy on performance relates to the effectiveness of the strategy. Such factors may serve to moderate the effect of CRM strategy on performance. Within the context of CRM strategies, effectiveness may refer to the quality of the CRM practice or the quality of the relationship. The company implementing any particular practice will need to assess the quality of the CRM practice and how well the practice achieves its targeted objectives. If the quality of the B2B CRM practice is poor, then the effect of CRM strategy on organizational performance may be attenuated. Similarly, if the quality of the B2B CRM practice is high, then the effect of CRM strategy on organizational performance may be accentuated. Thus:

P2: The quality of the eB2B CRM practice moderates the effect ofeB2B CRM strategy on organizational (marketplace and financial) performance.

Furthermore, scholars may first wish to reassess the definition of relationship marketing and examine specific Internet practices to determine the extent to which true relationships with customers are being formed. This relates to the quality of the relationship. For example, Barnes and Howlett (1998) suggest that if the company is interested in assessing the quality of the relationships developed using a particular Internet practice, it should begin by identifying those factors which contribute most to quality relationships. Berry (1995) has observed that there has been a lack of research on the factors that increase or decrease the quality of a relationship. Barnes and Howlett (1998) suggest that the construct "closeness" has considerable value in relationship marketing as it may be presumed that relationships that are deemed to be "close" are those that are likely to endure. They farther suggest that the emotional content of relationships (the extent to which relationships are characterized by positive affect) and the strength of relationships (implying that strong, intense

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relationships are less vulnerable and more likely to endure) are also worth examining. Thus, the quality of the relationships formed online as well as offline are expected to impact the effect of CRM strategy on organizational performance. The following proposition is therefore set forth:

P3: The quality of the eB2B CRM relationship (closeness, emotional content, strength) moderates the effect of eB2B CRM strategy on organizational (marketplace and financial) performance.

Finally, the effect of CRM strategy depends on how much the environmental situation changes during implementation. The potential impact of environmental forces on a firm's strategy may be specific to the firm or common to the industry. Contingency analysis helps a firm evaluate the nature and extent of environmental vulnerability (Cravens 1988). By evaluating the potential strategic impact of a possible future event, management is better prepared to cope with a situation if it does occur (Cravens 1988). Factors in the external environment of a firm may impact the effect of a firm's CRM strategy on organizational performance and this impact may be positive or negative. For example, many non-profit organizations were negatively affected in terms of donor

loyalty as a result of the 9/1 1 tragedy as donors turned their attention toward providing support to non-profits focused on assisting the victims' families and emergency personnel. Alternatively, UNICEF, an organization devoted to providing medicine and school supplies to children around the world, likely received a boost in donations as the plight of children in Afghanistan received significant attention from the media.

P4: The vulnerability of a firm to changes in its external environment moderates the effect ofeB2B CRM strategy on organizational (marketplace and financial) performance.

To summarize, the paper proposes a typology that categorizes several e-B2B practices that can be applied at different stages in the buying decision process to establish and maintain customer relationships. The typology is based on two dimensions: the level of customer relationship bond sought by the seller (economic, social, or structural) and the buyer's phase in the decision-making process (pre-purchase, purchase, or post-purchase). While not exhaustive, the suggested strategies for each buying stage and level of relationship can be used by CRM managers to develop new strategies and to evaluate current ones.

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AUTHOR BIOGRAPHY

L. Jean Harrison- Walker (Ph.D., Florida State University) is an associate professor in the Department of Marketing at the University of Houston-Clear Lake. Her research interests include e-marketing, services marketing, commitment/relationship marketing, word-of-mouth communication, and market orientation. Dr. Walker's research has been published in the Journal of Service Research, Journal of Marking Theory and Practice, Journal of Services Marking, Service Industries Journal, Journal ofBusiness-to-Business Marketing, Journal of Quality Management, Journal of Consumer Marketing, Journal of Marteting Channels, Business Horizons, The International Journal of Non-Profit and Voluntary Sector Marketing, the Academy of Managerial Communications Journal, the Journal of Business Disciplines, the Journal of Education for Business, as well as numerous conference proceedings.

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AUTHOR BIOGRAPHY

Sue E. Neeley (Ph. D., Arizona State University) is an associate professor and Coordinator of the Marketing Program at the University of Houston-Clear Lake. Her research interests include marketing strategy (particularly the relationship between market share and profitability), business-to-business customer relationship management, and the scholarship of the enhancement of teaching and learning. She has conducted numerous workshops on innovative methods of using mid- semester student feedback to improve learning and student involvement in the learning process. Dr. Neeley' s research has been published in the Journal of Business Research, Journal of Services Marketing, Mid-Atlantic Journal of Business, Journal of Business Education and the Handbook of Business Strategy, as well as the proceedings of professional conferences.

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