CUSTOMER RELATIONSHIP MANAGEMENT

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Customer Relationship Management

There are many different definitions of CRM. Many believe that the concept is a computer system that companies use to store customer information in order to provide customers with customized offers, while others believe that it is a strategy to manage customer relationships in order to create shareholder value (Payne, 2006). As stated earlier in the delimitation section, this thesis will focus on the later perspective and disregard CRM for technological solutions and IT/Internet solutions. The technological perspectives involve for example databases and WebPages in order to improve customer service.
According to Payne (2006), CRM is a business approach that seeks to improve a company’s customer value and profitability by developing and maintaining relationships with customers that are carefully targeted in order to increase shareholder value. Other writers, such as Peppers & Rogers (1999), refer to CRM as the process of integrating the idea of customer focus in marketing, service, sales, production, logistics, and economy; in other words, the entire company’s organization and activities. Swift (2001) suggests that CRM is the effort that a company makes in order to understand and influence customer behavior through meaningful communication. The author believes that the purpose of this strategy is to improve customer retention, customer loyalty, and customer profitability. Also, this author stresses the fact that the effort has to embrace the entire organization and not just parts of it. According to Eichorn (2004), CRM is a holistic approach that integrates internal leadership, culture, organizational structure, business processes and information systems with external customer touch points. Finally, Björnberg (2000) believes that CRM is entirely about
knowing a customer very well, so that his or her needs and desires can be fulfilled. He argues that every company’s goal should be to have satisfied customers so that they remain loyal.
The main and central concept, irrespective of which definition one chooses, is the customer. The most important goal with CRM is to create better relationships with customers and through these relationships, respond better to their needs and desires. Also, by developing and maintaining these relationships, better profitability and revenues will be accomplished while trust, commitment and loyalty are gained (Payne, 2006).

Trust, Commitment & Loyalty.

For decades, when predicting consumer behavior and consumer decision making, measurements of overall customer satisfaction have been used (Garbarino & Johnson, 1999). However, the paradigm shift from a traditional marketing mix into relationship marketing has increased the list of factors that affect consumer behavior. These factors are terms as trust (Morgan & Hunt, 1994), commitment (Dwyer, Schurr & Oh, 1987; Morgan & Hunt, 1994) and loyalty. According to Garbarino & Johnson (1999), trust, commitment and loyalty can be identified separately and these aspects interact in a different way for different types of customers.
In order for relationships to be successful, trust is a vital aspect that needs to be considered. Trust is defined as; CRM & Fashion management
“…a willingness to rely on an exchange partner in whom one has confidence” (Morrman, Deshpandé & Zaltman, 1993, p. 82).
According to Morgan & Hunt (1994), trust is the awareness of confidence in the exchange partners integrity and reliability. Garbarino & Johnson (1999), argue that these definitions of trust both stress the importance of reliability and confidence. Many researches have described trust in market-related situations as trust being when customers have confidence in the honesty of the other part, for example a salesperson (Crosby, Evans & Cowles, 1990).
Other researcher have the same definition of trust and Gwinner, Gremler & Bitner (1998), argue that psychological benefits that arise from trust are even more vital than the special treatment that consumers gain from close relationships to service firms.
Comparable with trust, literature concerning customer relationships always discusses the terms loyalty and commitment. According to Morgan & Hunt (1994), commitment is a continuing relationship that is so important that it calls for maximum efforts for maintenance. Furthermore, this relationship involves strong emotional and behavioral dedication to the company. Commitment in relationship marketing often deals with consumer – and employee commitment. When defining consumer commitment, organizational theories and models that discuss employee commitment can be applied (O´Reilly & Chatman, 1986).
According to the literature regarding employee commitment, there are different factors defining commitment such as: psychological attachments, personal identification with the firm and loyalty (Garbarino & Johnson, 1999). Commitment is often used to signify customers’ emotional preferences and the term loyalty refers to repeated support (Odekerken- Schröder, 1999). Another definition of loyalty is given by Oliver (1997) who state that loyalty is commitment that is deeply held and it enables customers to frequently purchase products or services time after time. This causes cyclical purchasing of the same brand regardless of pressure by situational influences or marketing efforts. The development of a relationship should strive for loyalty and according to Grönroos, a highly recognized professor of Service and Relationship Marketing, loyalty is not only about the customer being loyal to a firm but a firm should stay loyal to its customers as well in order for a relationship to exist (Grönroos, 2000).
Although literature regarding CRM discusses factors that affect relationships, few definitions are given regarding what a relationship really is (Barnes, 2000). The authors of this thesis found it highly important to truly understand the meaning of a relationship between a company and its customers, before examining further aspects of CRM. Therefore, the following section will shed light on the concept of relationships within business contexts.

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1 INTRODUCTION
1.1 BACKGROUND
1.2 PROBLEM DISCUSSION
1.3 PURPOSE.
1.4 CONTRIBUTION.
1.5 DELIMITATIONS
1.6 DEFINITION
1.7 OUTLINE OF THE THESIS
2 METHODOLOGY
2.1 THEORY OF SCIENCE
2.2 METHOD
2.3 TRUSTWORTHINESS.
2.4 METHOD CRITICISM
3 CRM & FASHION MANAGEMENT
3.1 CUSTOMER RELATIONSHIP MANAGEMENT
3.2 FASHION MANAGEMENT AND CRM.
4 EMPIRICAL FINDINGS.
4.1 JACK & JONES
4.2 IMPORTANT ASPECTS OF CRM IN JACK & JONES
5 ANALYSIS
5.1 CUSTOMER-SUPPLIER RELATIONSHIP IN FASHION COMPANIES FOR MEN’S WEAR
5.2 IMPORTANT ASPECTS OF SEMI-INTIMATE RELATIONSHIPS IN FASHION COMPANIES FOR MEN’S WEAR
6 CONCLUSIONS
6.1 MANAGERIAL IMPLICATIONS
6.2 SUGGESTIONS FOR FURTHER STUDIES.
LIST OF REFERENCES

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CRM in Fashion Companies for men’s wear

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