Skip to main content
Skip main navigation
No Access

Customer relationship management: advances, dark sides, exploitation and unfairness

Published Online:pp 1-19https://doi.org/10.1504/IJECRM.2012.046467

As CRM schemes are getting increasingly sophisticated at personalising offers, there are both great benefits, but at the same time, also disadvantages that firms must consider. In this paper, CRM research is extensively reviewed with a particular focus on the advancements and their inherent dark sides. The danger of implementing CRM in a way that leads customers to believe that they are worse off requires more research. The risks of depleting customer trust are discussed and pose a significant threat to CRM. This is evident when customers perceive themselves as being exploited by firm’s CRM schemes if it is overly used and misused. Thus, advances in CRM must consider these issues of fairness and trust. Eight propositions are made about CRM’s, advances, dark sides, exploitation and unfairness.

Keywords

customer relationship management, CRM, advances, dark sides, pitfalls, exploitation, fairness, trust

References

  • 1. Adams, J.S. , Berkowitz, L. (1965). ‘Inequity in social exchange’. Advances in Experimental Social Psychology. 2, New York:Academic Press , 267-99 Google Scholar
  • 2. Ballester, E.D. , Aleman, J.L.M. (2001). ‘Brand trust in the context of consumer loyalty’. European Journal of Marketing. 35, 11/12, 1238-1258 Google Scholar
  • 3. Bansal, H.S. , Shirley, F.T. , Yannik, St. J. (2005). ‘Migrating to new service providers: toward a unifying framework of consumers switching behaviors’. Journal of the Academy of Marketing Science. 33, 1, 96-115 Google Scholar
  • 4. Barnes, J.G. , Howlett, D.M. (1998). ‘Predictors in equality in relationships between financial providers and retail customers’. International Journal of Bank Marketing. 16, 1, 15-23 Google Scholar
  • 5. Berry, L.L. , Berry, L.L. Shostack, G.L. Upah, G.D. (1983). ‘Relationship marketing’. Emerging Perspectives on Services Marketing. Chicago, IL:American Marketing Association , 25-28 Google Scholar
  • 6. Bhattacharya, C.B. , Sen, S. (2003). ‘Consumer-company identification: a framework for understanding consumers’ relationships with companies’. Journal of Marketing. 67, 2, 76-88 Google Scholar
  • 7. Blois, K. (2010). ‘The legitimacy of power in business-to-business relationships’. Marketing Theory. 10, 2, 161-172 Google Scholar
  • 8. Blythe, J. (2008). Essentials of Marketing. Harlow, England:Financial Times/Prentice Hall, Pearson Education Limited Google Scholar
  • 9. Bolton, L.E. , Warlop, L. , Alba, J.W. ‘Consumer perceptions of price (un)fairness’. Journal of Consumer Research. 2003, 03, 29, 4, 474-491 Google Scholar
  • 10. Bolton, R.N. , Lemon, K.N. (1999). ‘A dynamic model of customers’ usage of services: usage as an antecedent and consequence of satisfaction’. Journal of Marketing Research. 36, 2, 171-186 Google Scholar
  • 11. Boulding, W. , Staelin, R. , Ehret, M. , Johnston, W.J. (2005). ‘A customer relationship management roadmap: what is known, potential pitfalls, and where to go’. Journal of Marketing. 69, 4, 155-166 Google Scholar
  • 12. Bowen, J.T. , Shoemaker, S. (1998). ‘Loyalty: a strategic commitment’. Cornell Hotel and Restaurant Administration Quarterly. 9, 1, 12-25 Google Scholar
  • 13. Britton, J.E. , Peppers, D. Rogers, M. (2011). ‘Thinking about relationship theory’. Managing Customer Relationships – A Strategic Framework. New Jersey:John Wiley and Sons , 42-53 Google Scholar
  • 14. Britton, J.E. , Rose, J. , Peppers, D. Rogers, M. (2004). ‘Thinking about relationship theory’. Managing Customer Relationships – A Strategic Framework. New Jersey:John Wiley and Sons , 38-50 Google Scholar
  • 15. Bull, C. , Adam, A. (2011). ‘Virtue ethics and customer relationship management: towards a more holistic approach for the development of ‘best practice’’. Business Ethics: A European Review. 20, 2, 121-130 Google Scholar
  • 16. Buttle, F. (1996). Relationship Marketing. London:Paul Chapman , Relationship Marketing Theory and Practice Google Scholar
  • 17. Campbell, M.C. ‘Perceptions of price unfairness: antecedents and consequences’. Journal of Marketing Research. 1999, 05, 36, 2, 187-199 Google Scholar
  • 18. Campbell, M.C. ‘Says who?! How the source of price information and affect influence perceived price (un)fairness’. Journal of Marketing Research. 2007, 05, 44, 2, 261-271 Google Scholar
  • 19. Canhoto, A.I. (2009). ‘Safeguarding customer information: the role of staff’. Journal of Consumer Marketing. 26, 7, 487-495 Google Scholar
  • 20. Cao, Y. , Gruca, T.S. ‘Reducing adverse selection through customer relationship management’. Journal of Marketing. 2005, 10, 69, 4, 219-29 Google Scholar
  • 21. Christopher, M. , Payne, A. , Ballantyne, D. (1991). Relationship Marketing. Butterworth:Heinemann Google Scholar
  • 22. De Wulf, K. , Iacobucci, D. (2001). ‘Investments in customer relationships: a cross country and cross-industry exploration’. Journal of Marketing. 65, 4, 33-50 Google Scholar
  • 23. Deighton, J. (2005). ‘Privacy and customer management’. Customer Management. Cambridge, MA:Marketing Science Institute , 17-19, (MSI conference summary) Google Scholar
  • 24. Dwyer, F.R. , Schurr, P.S. , Oh, S. (1987). ‘Developing buyer-seller relationships’. Journal of Marketing. 51, 2, 11-27 Google Scholar
  • 25. Economist Machines that Can See. 2009, 03, 05, (accessed on 5 March 2009), [online] http://www.economist.com/ node/13174409?story_id=13174409 Google Scholar
  • 26. Ernst, H. , Hoyer, W.D. , Kraft, M. , Krieger, K. (2011). ‘Customer relationship management and company performance – the mediating role of new product’. Journal of the Academy of Marketing Science. 39, 2, 290-306 Google Scholar
  • 27. Fan, Y.W. , Ku, E. (2010). ‘Customer focus, service process fit and customer relationship management profitability: the effect of knowledge sharing’. The Service Industries Journal. 30, 2, 203-223 Google Scholar
  • 28. Fang, S.R. , Chang, Y.S , Peng, Y.C. (2011). ‘Dark side of relationships: a tensions-based view’. Industrial Marketing Management. 40, 774-784 Google Scholar
  • 29. Feinberg, F.M. , Krishna, A. , Zhang, Z.J. (2002). ‘Do we care what others get? A behaviorist approach to targeted promotions’. Journal of Marketing Research. 39, 3, 277-291 Google Scholar
  • 30. Fournier, S. (1998). ‘Consumers and their brands: developing relationship theory in consumer research’. Journal of Consumer Research. 24, 4, 343-373 Google Scholar
  • 31. Frow, P.E. , Payne, A.F. (2009). ‘Customer relationship management: a strategic perspective’. Journal of Business Market Management. 3, 1, 7-27 Google Scholar
  • 32. Galitsky, B. , De la Rosa, J.L. (2011). ‘Concept based learning of human behaviour for customer relationship management’. Information Sciences. 181, 10, 2016-2035 Google Scholar
  • 33. Gray, R. ‘Minority report-style advertising billboards to target consumers’. The Telegraph. 2011, 08, 01, Telegraph Media Group Limited Google Scholar
  • 34. Greenberg, P. (2009). CRM at the Speed of Light, Fourth Edition: Social CRM 2.0 Strategies, Tools, and Techniques for Engaging Your Customers. Emeryville, California, USA:McGraw-Hill Osborne Media Google Scholar
  • 35. Grönroos, C. (1994). ‘From marketing mix to relationship marketing: towards a paradigm shift in marketing’. Management Decision. 32, 2, 4-20 Google Scholar
  • 36. Grönroos, C. (1996). ‘Relationship marketing logic’. Asia-Australia Marketing Journal. 4, 1, 7-18 Google Scholar
  • 37. Gummesson, E. (1987). ‘The new marketing – developing long-term interactive relationships’. Long Range Planning. 20, 4, 10-20 Google Scholar
  • 38. Gummesson, E. (1999). Total Relationship Marketing. Oxford:Butterworth-Heinemann Google Scholar
  • 39. Gummesson, E. (2002). ‘Relationship marketing in the new economy’. Journal of Relationship Marketing. 1, 1, 37-57 Google Scholar
  • 40. Gustafsson, A. , Johnson, M.D. , Roos, I. (2005). ‘The effects of customer satisfaction, relationship commitment dimensions, and triggers on customer retention’. Journal of Marketing. 69, 4, 210-218 Google Scholar
  • 41. Harker, M.J. (1999). ‘Relationship marketing defined? An examination of current relationship marketing definitions’. Marketing Intelligence & Planning. 17, 1, 13-20 Google Scholar
  • 42. Harker, M.J. , Egan, J. (2006). ‘The past, present, and future of relationship marketing’. Journal of Marketing and Management. 22, 1, 215-242 Google Scholar
  • 43. Harridge-March, S. , Quinton, S. (2009). ‘Virtual snakes and ladders: social networks and the relationship marketing loyalty ladder’. The Marketing Review. 9, 2, 171-181 Google Scholar
  • 44. Hart, S. , Hogg, G. , Banerjee, M. (2003). ‘Does the level of experience have an effect on CRM programs? Exploratory research findings’. Journal of Industrial Marketing Management. 33, 6, 549-560 Google Scholar
  • 45. Heath, M.T.P. , Heath, M. (2008). ‘(Mis)trust in marketing: a reflection on consumers’ attitudes and perceptions’. Journal of Marketing Management. 24, 9–10, 1025-1039 Google Scholar
  • 46. Jayachandran, S. , Sharma, S. , Kaufman, P. , Raman, P. (2005). ‘The role of relational information processes and technology use in customer relationship management’. Journal of Marketing. 69, 4, 177-192 Google Scholar
  • 47. Kaplan, A. , Haenlein, M. (2010). ‘Users of the world unite. The challenges and opportunities of social media’. Business Horizons. 53, 1, 59-68 Google Scholar
  • 48. Khanna, S. , Payne, A. Frow, P. (2001). ‘Measuring the CRM ROI: Show them benefits’. Journal of Marketing. 69, 4, 167-176, (2005), ‘A strategic framework for customer relationship management’ Google Scholar
  • 49. Krasnikov, A. , Jayachandran, S. , Kumar, V. (2009). ‘The impact of customer relationship management implementation on cost and profit efficiencies: evidence from the US commercial banking industry’. Journal of Marketing. 73, 6, 61-76 Google Scholar
  • 50. Kumar, N. , Scheer, L. , Steenkamp, J.B. (1995). ‘The effects of perceived interdependence on dealer attitudes’. Journal of Marketing Research. 32, 3, 348-356 Google Scholar
  • 51. Lewis, M. ‘Incorporating strategic consumer behavior into customer valuation’. Journal of Marketing. 2005, 10, 69, 4, 230-238 Google Scholar
  • 52. Lusch, R.F. , Vargo, S.L. , Tanniru, M. (2010). ‘Service, value networks and learning’. Journal of the Academy of Marketing Science. 38, 1, 19-31 Google Scholar
  • 53. Michell, P. , Reast, J. , Lynch, J. (1998). ‘Exploring the foundations of trust’. Journal of Marketing Management. 14, 1–3, 159-172 Google Scholar
  • 54. Moorman, C. , Zaltman, G. , Deshpande, R. (1992). ‘Relationships between providers and users of market research: The dynamics of trust within and between organisations’. Journal of Marketing Research. 29, 3, 314-328 Google Scholar
  • 55. Morgan, R.M. , Hunt, S.D. (1994). ‘The commitment-trust theory of relationship marketing’. Journal of Marketing. 58, 3, 20-38 Google Scholar
  • 56. Nguyen, B. (2011). ‘The dark side of CRM’. The Marketing Review. 11, 2, 137-149 Google Scholar
  • 57. Nguyen, B. , Simkin, L. (2009). ‘An examination of the role of fairness in CRM: a conceptual framework’. Proceedings of the British Academy of Management 2009. Brighton, UK:University of Brighton Google Scholar
  • 58. Nguyen, B. , Simkin, L. (2011). ‘Effects of firm customisation on the severity of unfairness perceptions and (mis)behaviour: the moderating role of trust’. The Academy of Marketing Conference 2011, Liverpool, UK Google Scholar
  • 59. Palmer, A.J. (1995). ‘Relationship marketing: Local implementation of a universal concept’. International Business Review. 4, 4, 471-481 Google Scholar
  • 60. Payne, A. (2001). Customer Relationship Management. London, Keynote address to the inaugural meeting of the Customer Management Foundation Google Scholar
  • 61. Payne, A. , Frow, P. (2005). ‘A strategic framework for customer relationship management’. Journal of Marketing. 69, 4, 167-176 Google Scholar
  • 62. Payne, A. , Frow, P. (2006). ‘Customer relationship management: from strategy to implementation’. Journal of Marketing Management. 22, 1–2, 135-168 Google Scholar
  • 63. Peppers, D. , Rogers, M. (1993). The One to One Future. London:Piatkus Google Scholar
  • 64. Peppers, D. , Rogers, M. (2004). Managing Customer Relationships – A Strategic Framework. New Jersey:John Wiley and Sons Google Scholar
  • 65. Peppers, D. , Rogers, M. (2011). Managing Customer Relationships – A Strategic Framework. 2nd ed., New Jersey:John Wiley and Sons Google Scholar
  • 66. Peppers, D. , Rogers, M. , Dorf, B. ‘Is your company ready for one-to-one marketing?’. Harvard Business Review. 1999, 01–02, 77, 1, 151-60 Google Scholar
  • 67. Piercy, N.F. (2009). ‘Strategic relationships between boundary-spanning functions: aligning customer relationship management with supplier relationship management’. Industrial Marketing Management. 38, 8, 857-864 Google Scholar
  • 68. Pine, B.J. (1993). Mass Customization: The New Frontier in Business Competition. Boston, USA:Harvard Business School Press Google Scholar
  • 69. Plakoyiannaki, E. , Tzokas, N. (2002). ‘Customer relationship management: a capabilities portfolio perspective’. The Journal of Database Marketing. 9, 3, 228-237 Google Scholar
  • 70. Quinton, S. , Harridge-March, S. (2010). ‘Relationships in on line communities: the potential for marketers’. The Journal of Research in Interactive Marketing. 4, 1, 56-73 Google Scholar
  • 71. Reinartz, W. , Krafft, M. , Hoyer, W.D. ‘The customer relationship management process: Its measurements and impact on performance’. Journal of Marketing Research. 2004, 08, 41, 3, 293-305 Google Scholar
  • 72. Reitz, B. (2005). ‘Worst to first to favorite: the inside story of Continental Airline’s business turnaround’. Customer Management. Cambridge, MA:Marketing Science Institute , 4-5, (MSI conference summary) Google Scholar
  • 73. Ryals, L. ‘Making customer relationship management work: the measurement and profitable management of customer relationships’. Journal of Marketing. 2005, 10, 69, 4, 252-261 Google Scholar
  • 74. Selnes, F. (1998). ‘Antecedents and consequences of trust and satisfaction in buyer-seller relationships’. European Journal of Marketing. 32, 3/4, 305-322 Google Scholar
  • 75. Simkin, L. (2008). ‘Achieving market segmentation from B2B sectorisation’. Journal of Business & Industrial Marketing. 23, 7, 464-474 Google Scholar
  • 76. Sin, L.Y.M. , Tse, A.C.B. , Yim, F.H.K. (2005). ‘CRM: Conceptualization and scale development’. EuropeanJournal of Marketing. 39, 11/12, 1264-1290 Google Scholar
  • 77. Smith, A.K. , Bolton, R.N. , Wagner, J. ‘A model of customer satisfaction with service encounters involving failure and recovery’. Journal of Marketing Research. 1999, 08, XXXVI, 3, 356-372 Google Scholar
  • 78. Srinivasan, R. , Moorman, C. ‘Strategic firm commitments and rewards for customer relationship management in online retailing’. Journal of Marketing. 2005, 10, 69, 4, 193-200 Google Scholar
  • 79. Srivastava, R.K. , Shervani, T. , Fahey, L. ‘Market-based assets and shareholder value: a framework for analysis’. Journal of Marketing. 1998, 01, 62, 1, 2-18 Google Scholar
  • 80. Thibaut, J. , Walker, L. (1975). Procedural Justice: A Psychological Analysis. Hillsdale, NJ:Lawrence Erlbaum Associates Google Scholar
  • 81. Thomas, J.S. , Sullivan, U.Y. (2005). ‘Managing marketing communications with multichannel customers’. Journal of Marketing. 69, 4, 239-251 Google Scholar
  • 82. Trends Magazine (2010). ‘Trend #5: marketing to the brain’. Trends Magazine. 85, 29-32 Google Scholar
  • 83. Vargo, S.L. (2009). ‘Toward a transcending conceptualization of relationship: a service-dominant logic perspective’. Journal of Business & Industrial Marketing. 24, 5/6, 373-379 Google Scholar
  • 84. Veloutsou, C. ‘Brands as relationship facilitators in consumer markets’. Marketing Theory. 2009, 03, 9, 1, 127-130 Google Scholar
  • 85. Verhoef, P.C. (2003). ‘Understanding the effect of customer relationship management efforts on customer retention and customer share development’. Journal of Marketing. 67, 4, 30-45 Google Scholar
  • 86. Wagner, T. , Thorsten, H-T. , Thomas, R. ‘Does customer demotion jeopardize loyalty?’. Journal of Marketing. 2009, 05, 73, 3, 69-85 Google Scholar
  • 87. Webster, F.E. (1992). ‘The changing role of marketing in the corporation’. Journal of Marketing. 56, 4, 1-17 Google Scholar
  • 88. Wilson, H. , Daniel, E. , McDonald, M. (2002). ‘Factors for success in customer relationship management (CRM) systems’. Journal of Marketing Management. 18, 193-219 Google Scholar
  • 89. Wright, P. , Lutz, R. (1986). ‘Schemer schema: consumers’ intuitive theories about marketers’ influence tactics’. Advances in Consumer Research. 13, Provo, UT:Association for Consumer Research , 1-3 Google Scholar
  • 90. Xia, L. , Monroe, K.B. , Cox, J.L. ‘The price is unfair! A conceptual framework of price fairness perceptions’. Journal of Marketing. 2004, 10, 68, 4, 1-15 Google Scholar
  • 91. Zablah, R.A. , Bellenger, D.N. , Johnston, W.J. (2003). ‘An evaluation of divergent perspectives on customer relationship management: towards a common understanding of an emerging phenomenon’. Industrial Marketing Management. 33, 6, 475-489 Google Scholar
  • 92. Zeithaml, V.A. , Berry, L.L. , Parasuraman, A. (1996). ‘The behavioral consequences of service quality’. Journal of Marketing. 60, 2, 31-46 Google Scholar
  • 93. Zins, A.H. (2001). ‘Relative attitudes and commitment in customer loyalty models’. International Journal of Service Industry Management. 12, 3, 269-290 Google Scholar