CRM has emerged as one of the latest management buzz word. Popularised by the business press and marketed by the aggressive CRM vendors as a panacea

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1 2 Conceptual Foundations of CRM EVOL OLUTION OF CRM CRM has emerged as one of the latest management buzz word. Popularised by the business press and marketed by the aggressive CRM vendors as a panacea for all the ills facing the firms and managers, it means different things to different people. CRM, for some, means 1 to1 marketing while for some it means a call centre. Others call database marketing as CRM. There are many others who refer to technology solutions as CRM. While we leave the definition for a later discussion, we will try to trace the evolution of CRM. Is CRM really a new concept? No, it is not. Merchants and traders have been practising customer relationship for centuries. Their business was built on trust. They could customise the products and all aspects of delivery and payment to suit the requirements of their customers. They paid personal attention to their customers, knew details regarding their customers tastes and preferences, and had a personal rapport with most of them. In many cases, the interactions transcended the commercial transactions and involved social interactions. Even today, this kind of a relationship exists between customers and retailers, craftsmen, artisans essentially in markets that are traditional, small and classified as pre-industrial markets. The industrial revolution changed these relationship-oriented practices. Businesses adopted mass production, mass communication and mass distribution to achieve economies of scale. Manufacturers started focusing on manufacturing and efficient operations to cut costs. Intermediaries like distributors, wholesalers and retailers took on the responsibilities of warehousing, transportation, distribution and sale to final customers. This resulted in greater efficiencies and lower costs to the manufacturers but brought in many layers between them and the customers. The resulting gap reduced direct contacts and had a negative impact on their relationships. The post-industrial era (information era) saw the re-emergence of relationship practices. Marketing academics Jagdish Sheth and Atul Parvatiyar (Sheth and Parvatiyar, 1995) identified the following factors for this shift in orientation (a) Rapid advances in technology, (b) Intensive competition in most markets,

2 Conceptual Foundations of CRM 17 (c) Growing importance of the service sector, and (d) Adoption of total quality management programs Let us look at each of these factors in some detail. Advances in Technology Figure 2.1 The Evolution of Relationship Orientaion (Adapted from Sheth and Parvatiyar, 1995) The advances in information, communication and production technologies have helped marketers come closer to their customers. Firms operating in diverse sectors ranging from packaged goods to services started using these technologies to know their customers, learn more about them and then build stronger bonds with them through frequent interactions. Marketers could gain knowledge about customers, which helped them respond to their needs through manufacturing, delivery and customer service. Technology also enabled customers undertake some of the responsibilities, normally performed by marketers, like ordering and product use related services. Though the emergence of CRM in recent times coincided with the information age, we must remember that technology is just an enabler. Technology enabled marketers overcome several long felt shortcomings of mass marketing. Some of these included: Inefficiencies of mass marketing: 1980s and early 1990s witnessed some of the most radical business transformations that resulted in cost reductions in almost all functional departments except marketing. Manufacturing and related operations costs were reduced through business process reengineering, human resource costs were reduced through outsourcing, restructuring and layoffs, financial costs were reduced through financial reengineering but marketing costs kept increasing due to increased competition and product parity in virtually every industry. Lack of fast, effective and interactive modes of customer contact, feedback and information.

3 18 Customer Relationship Management A Strategic Perspective Lack of consolidated information about customer interactions, purchase behaviour and future potential. Intensive Competition In competitive markets, specially the ones that were maturing and witnessing slow or no growth, marketers found it more profitable to focus on their existing customers. Studies have shown that it costs upto 6 8 times more to attract a new customer than to retain an existing customer (Gruen, 1997). Marketers have now started focusing on the lifetime value of customers. They are moving away from just trying to sell their products to understanding customers needs and wants and then satisfying their needs. This has led to a relationship orientation which creates opportunities to cross sell products and services over the lifetime of the customer. Growing Importance of the Service Sector The service sector contributes to over two-third of the GDP of most advanced economies. In India, the services sector contributes to over 50 per cent of the economy. One of the characteristics of the service industries is the direct interaction between the marketer and the buyer. In services, the provider is usually involved in the production as well as delivery directly. For example, professional service providers like a doctor or a consultant are directly involved in production as well as delivery of their services. Similarly, the customers are directly involved in the purchase and consumption of these services. These direct contacts create opportunities for better understanding, a better appreciation of needs as well as constraints and emotional bonding all of which facilitate relationship building. Therefore, it should come as no surprise when one sees the service firms pioneering many of the customer relationship initiatives. Firms operating in the financial services, hospitality business, telecom, and airlines are the early adopters and extensive users of CRM practices. Adoption of Total Quality Management (TQM) Programmes The adoption of total quality management programmes have helped companies offer quality products and services to customers at the lowest prices. To enable this value proposition, organisations needed to work closely with their customers, intermediaries as well as suppliers thus fostering close working relationships with members of the marketing system. Companies such as Intel, Xerox, and Toyota formed partnering relationships with suppliers and customers to practice TQM. Other developments such as an increase in the number of demanding customers, increased fragmentation of markets, and generally high level of product quality forced businesses to seek sustainable competitive advantages. A competitive advantage is sustainable only when it is not easily replicated. One such sustainable competitive advantage is the relationship that a firm develops with its customers. BENEFITS OF CRM Customers are Profitable Over a Period of Time Studies by the US-based Bain and Company have shown that a customer becomes more profitable with time because the initial acquisition cost exceeds gross margin while the

4 Conceptual Foundations of CRM 19 retention costs are much lower. When an organisation retains the customer, it gets a larger share of the customer s wallet at a higher profit 1 per cent increase in sales to existing customers increase profits by 17 per cent while the same amount of sale to new customers increase profit by only 3 per cent. This huge difference is explained by the fact that for most companies the cost of acquiring a customer is very high. It costs six to eight times more to sell to a new customer than to sell to an existing one. The same study also highlighted that a company can boost its profits up 85 per cent by increasing its annual customer retention by only 5 per cent. Similarly, studies have shown that the probability of selling a product to a prospect is 15 per cent while it is 50 per cent to an existing customer. Thus, the time, the effort and costs of selling are much lower for an existing customer. Customer Profitability is Skewed An analysis of the revenue and profit contribution of customer base of banks in the US, Europe and Australia showed the following: The top 20 per cent of the customers contribute to 150 per cent of the profits while the bottom 20 per cent drain 50 per cent of the profits and the rest 60 per cent just break even. Experiences of Indian organisations are on similar lines. In a large public sector bank, the top 23 per cent of the customers contribute to 77 per cent of the revenues. Similarly, the top 27 per cent customers of a leading cellular phone service provider contributes to 75 per cent of the revenues. The implications of such a skew in customer profitability and revenue contribution are startling for organisations, which used to conventionally treat all customers as equal. Competitors have to just lure these top customers and the organisation would face serious problems. It also highlights the fact that one has to adopt different strategies for different customer groups: Programmes have to be developed to retain and build stronger bonds with the top gold standard customers so that they do not get poached. Activity-Based Costing analysis has to be done with the middle group of potentials so that the cost of serving these customers are reduced. In addition, cross-selling and up selling should be done to increase the profitability of these customers. An analysis of the bottom group has to be done to identify those customers who can be shifted to the potentials group. For the remaining, the cost of service has to be reduced by encouraging them to use lower cost channels. In extreme cases, some of these customers will be encouraged to defect to competitors. Outsourcing of loss making customers to specialised low overhead agencies is an emerging trend. Marketing Benefits of CRM CRM will gradually reduce organisation s dependence on periodic surveys to gather data. Collection of data related to buying and consumption behaviour will be an ongoing process. In many cases, the transaction data is automatically collected sometimes real time as in the e-commerce transactions. This rich repository of customer information and knowledge

5 20 Customer Relationship Management A Strategic Perspective updated through regular interactions and actual customer transactions and purchase behaviour will help marketers to develop and market customer centric products successfully. Customised promotions-based customer preferences and purchase patterns will substantially reduce the wasteful expenditure of mass communications and even direct mailing. As the customised promotions are more focused and are based on a deeper insight of existing customers, they have a greater chance of conversion to sales. CEOs have always been pessimistic about the efficacy of mass advertising I know that half of my advertising budget is wasted but I am not sure which half. Similarly, the top management carefully scrutinises the returns of promotional expenditure. A simple illustrative calculation indicates the huge potential for savings in a direct marketing exercise. Particulars Amount (Rs) Cost of sending 1,00,000 mails Cost of address database Rs 5,00,000 Printing (mailer + envelope) Rs 12,50,000 Handling and mailing Rs 5,00,000 Rs 22,50,000 Hit rate, i.e. average response (~3 per cent) Actual purchase (25 per cent of the respondents), i.e. 750 sales Direct marketing cost per sale Rs 3,000 In this case, the margin per sale has to be substantially higher than Rs 3,000 to justify the mailing exercise. It also highlights the potential for savings through low cost media, improved targeting and higher conversion rates. Using data mining, collaborative filtering and event triggered offerings, a financial service provider, with over a million customers, can shortlist just four potential customers who are ripe for a sale, make a pitch through and follow it up with direct contact and get three sales a conversion rate of 75 per cent! Service Benefits of CRM Research findings conducted across industries as part of the Technical Assistance Research Project (TARP) indicate that: 95 per cent of the customers do not bother to complain, they just take their business elsewhere. Most loyal customers take time to complain. This enables the product/service provider to improve and ensure that such mistakes do not recur. A typical dissatisfied customer will tell an average of fourteen others about her bad experience while she will tell only six about a satisfying experience with an organisation. 70 per cent of customers who complain will do business with the company again if it quickly takes care of a service problem.

6 Conceptual Foundations of CRM 21 Marketers of products and services in competitive markets face tremendous opportunities as well as challenges. While the rewards of good performance just help them remain competitive, the punishment for failure is fast and furious. The negative word of mouth has a multiplier effect and keeps away lots of potential customers. On the other hand, a satisfied and a loyal customer can give feedback which helps in improving the service/ product. Some of these loyal customers may, in fact, turn into advocates for the firm. While many researchers and consultants advocate for firms to focus on fostering customer loyalty, Reinartz and Kumar (2002) caution that while customer loyalty is very important and enticing, the firm must ensure that it does not seek to enhance customer loyalty as an end in itself. Managers must be careful about addressing the important issue of customer profitability. Based on their research, they have concluded that no company should ever take for granted the idea that managing customers for loyalty is the same as managing them for profits. They have also proposed a framework for segmentation of customers on the dimensions of loyalty and profitability, which suggest that firms should implement a loyalty strategy. Firms are motivated to engage in relationship marketing due to superior economics of customer retention and the competitive advantage of building better relationships. At the same time, it is important to understand the factors, which motivate consumers to engage in relationship patronage. Relationship marketing represents an ongoing cooperative market behaviour between the marketer and the consumer. The longevity of this relationship depends on the commitment made by the consumer to continue patronising the particular marketer in spite of the availability of alternatives. In other words, the marketers motivation to engage in relationship marketing is tempered by the consumers motivation to reduce their choice set to be in relationship with a firm. A relationship results in brand patronage over a period of time. Consumers will not be inclined to such a loyalty unless they are motivated to reduce their choice set. Therefore, it is important to take the consumer perspective and understand their motivations to stay loyal. Most consumers would normally prefer patronising a brand, store or firm as long as they are satisfied with the offering. In addition to the firm related factors, consumers engage in relational market behaviour because they want to simplify their buying and consuming tasks, simplify information processing, reduce perceived risks, and maintain cognitive consistency and a state of psychological comfort (Sheth and Parvatiyar 1995). The willingness and ability of both consumers and marketers to engage in relational marketing will lead to greater marketing productivity, unless either consumers or marketers abuse the mutual interdependence and cooperation. Transaction versus Relationship Orientation in Marketing Conventional marketing focused on exchanges to satisfy the customer s needs while meeting the organisation s objectives. The definition of marketing management adopted by the American Marketing Association (AMA) in 1985 highlights this emphasis on exchanges and transactions: Marketing management is the process of planning and executing the conception, pricing, promotion and distribution of goods, services and ideas to create exchanges with target groups that satisfy customer and organisational objectives.

7 22 Customer Relationship Management A Strategic Perspective The central focus of marketing is to create exchanges that satisfy customer and organisational objectives. Normally, an exchange is a value creating process that leaves both the parties profit by the exchange. Exchange is a process rather than an event. Two parties are engaged in exchange if they are negotiating and moving towards an agreement. When the agreement is reached, a transaction takes place. Therefore, transactions are the basic unit of exchange. A transaction consists of a trade of values between parties. Most transactions are monetary transaction, i.e. money is one of the traded values. But nonmonetary transactions, for example, barter transactions, also create a trade of values and hence may be prevalent in certain markets like the rural agricultural markets. At the basic level, marketing comprises of actions undertaken to elicit desired responses from its target groups. The marketer can analyse and map what each party expects to give and take. An exchange map showing the want list of the participants can be shown for Boeing, a leading airline manufacturer and FedEx, a leading courier company. Figure 2.2 An Exchange Map The potential for a successful exchange exists as long as the wants of the parties are satisfied. But in competitive markets, even satisfied customers defect to competitive offerings. Therefore, smart marketers try to build long term, trusting, win-win relationships with valued customers and suppliers by shifting from trying to maximise the profit on each individual transaction to establishing mutually beneficial relationships. Promising and delivering high quality, good service and fair prices achieve satisfaction over time but the relationship is cemented through economic, technical and social ties. Relationship marketing reduces transaction costs, efforts and time while moving towards a routinised transaction in place of a negotiated transaction. The operating principle is build good relationships and profitable transactions will follow. Table 2.1 highlights the differences between traditional (transaction) and relationship marketing. A relationship orientation is built around the idea of treating customers in an individualised way. The development of long-term mutually beneficial relationships with customers are favoured in place of a short-term orientation on transactions. In some situations, a transaction orientation is very appropriate. The marketer focuses on single transactions and profits are expected to follow from these transactions. Brand management and image development primarily give the long-term perspective for building loyalty with customers who remain a faceless part of a larger market segment. The primary means of communicating with these customers is through mass media, the primary means

8 Conceptual Foundations of CRM 23 Table 2.1 Transaction Marketing Transaction Marketing versus Relationship Marketing Relationship Marketing One off Exchanges Focus Ongoing Exchanges Brand Management Customer Management Short-term Focus Time Perspective Long-term Focus Mass Communication Primary Communication Personal Communication Isolated Market Research Customer Feedback Ongoing Dialogue Mechanism Mass Markets or Market Market Size Markets of One Segments Market Share Criterion for Success Mind Share (Share of Customers) Profitability of Transaction Critical Metrics Lifetime Value of Customer Brand Equity Customer Equity Source: Adapted from Gronroos, C., The Marketing Strategy Continuum, Management Decision, January 1991, pp for understanding their requirements and getting their feedback is through traditional market surveys. Markets tend to be large and a stable or growing market share is one of the key criteria for success. In many other marketing contexts, a relationship orientation, which focuses on the lifetime value of customers, is clearly more profitable. The emphasis on customer management is achieved through personal communication and ongoing interactions with each customer. The key criterion for success is share of the customer rather than market share. SCHOOLS OF THOUGHT ON CRM The growth of the practice of relationship marketing is supported by the growing research interest in different facets of this concept. Researchers in different countries observed this shift in marketer s orientation towards customer relationship and started exploring the phenomenon. The initial approaches (early 1990s) to CRM (Coote, 1994) can be very broadly classified as: 1. The Anglo-Australian Approach, 2. The Nordic Approach, and 3. The North American Approach. The Anglo-Australian approach integrated the contemporary theories of quality management, services marketing and customer relationship economics to explain the emergence of relationship marketing. The Nordic approach views relationship marketing as the confluence of interactive network theory, services marketing and customer relationship economics. The interactive network theory of industrial marketing views marketing as an interactive process in a context where relationship building is an area of primary concern for marketers.

9 24 Customer Relationship Management A Strategic Perspective Figure 2.3 Anglo-Australian Approach of Relationship Marketing Figure 2.4 Nordic Approach to Relationship Marketing In contrast, the initial focus of the North American scholars was on the relationship between the buyer and seller operating within the context of the organisational environment which facilitated the buyer seller relationship. Figure 2.5 North American Approach to Relationship Marketing (Adapted from Perrien, J., Filiatrault, P., and Ricard, L., The Implementation of Relationship Marketing in Commercial Banking, Industrial Marketing Management, no. 22, 1993, pp )

10 Conceptual Foundations of CRM 25 One of the broader approaches to CRM emerged from the research conducted by academics at the Center for Relationship Marketing and Service Management at the Cranfield University, UK. The broadened view of relationship marketing addresses a total of six key market domains, not just the traditional customer market. It also advocated for a transition for marketing from a limited functional role to a cross-functional role and a shift towards marketing activities for customer retention in addition to the conventional customer acquisition. The six markets (Payne, 2000) are as follows. 1. Customer markets existing and prospective customers as well as intermediaries, 2. Referral markets existing customers who recommend to other prospects, and referral sources or multipliers such as doctors who refer patients to a hospital or a consultant who recommends a specific IT solution, 3. Influence markets government, consumer groups, business press and financial analysts, 4. Recruitment markets for attracting the right employees to the organisation, 5. Supplier markets suppliers of raw materials, components, services, etc., and 6. Internal markets the organisation including internal departments and staff. Figure 2.6 The Six Markets Framework DEFINING CRM The preceding discussions highlight the range of perspectives adopted by researchers in understanding and explaining relationships. Similarly in marketing literature, the terms customer relationship management and relationship marketing have been used interchangeably to reflect a variety of themes and perspectives. Some of these themes offer a narrow functional marketing perspective while others offer a perspective that is broad and somewhat paradigmatic in approach and orientation. After a review of extant literature, Harker (1999) identified 26 definitions of relationship marketing reflecting the diverse academic and socio-political backgrounds of the scholars.

11 26 Customer Relationship Management A Strategic Perspective A narrow perspective of customer relationship management is database marketing emphasising the promotional aspects of marketing linked to database efforts (Bickert 1992). Another viewpoint is to consider CRM only as customer retention in which a variety of after marketing tactics is used for customer bonding or staying in touch after the sale is made (Vavra, 1992). A more popular approach with recent application of information technology is to focus on individual or one-to-one relationship with customers that integrate database knowledge with a long-term customer retention and growth strategy (Peppers and Rogers, 1993). Jackson (1985) applied the individual account concept in industrial markets to suggest CRM to mean, Marketing oriented toward strong, lasting relationships with individual accounts (p. 2). McKenna (1991) offered a more strategic view by putting the customer first and shifting the role of marketing from manipulating the customer (telling and selling) to genuine customer involvement (communicating and sharing the knowledge). Berry (1995), in somewhat broader terms, also had a strategic viewpoint about CRM. He stressed that attracting new customers should be viewed only as an intermediate step in the marketing process. Developing closer relationship with these customers and turning them into loyal ones are equally important aspects of marketing. Thus, he defined relationship marketing as attracting, maintaining, and, in multi-service organisations enhancing customer relationships (p. 25). By focusing on the value of interactions in marketing and its consequent impact on customer relationships, a broader perspective espouses that customer relationships should be the dominant paradigm of marketing. Gronroos (1990) stated: Marketing is to establish, maintain, and enhance relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by a mutual exchange and fulfilment of promises (p. 138). The implication of Gronroos definition is that customer relationships is the raison de etre of the firm and marketing should be devoted to building and enhancing such relationships. Similarly, Morgan and Hunt (1994) suggested that relationship marketing refers to all marketing activities directed toward establishing, developing, and maintaining successful relationships. The core theme of all CRM and relationship marketing perspectives is its focus on cooperative and collaborative relationship between the firm and its customers, and/or other marketing actors. Dwyer, Schurr and Oh (1987) have characterised such cooperative relationships as being interdependent and long-term oriented rather than being concerned with short-term discrete transactions. The long-term orientation is often emphasised because it is believed that marketing actors will not engage in opportunistic behaviour if they have a long-term orientation and that such relationships will be anchored on mutual gains and cooperation (Ganesan, 1994). Another important facet of CRM is customer selectivity. Studies have shown that all customers are not equally profitable (Storbacka, 2000). It is, therefore, recommended that the company must be selective in tailoring its programme and marketing efforts by segmenting and selecting appropriate customers for its marketing programmes. In some cases, it could even lead to outsourcing of some customers so that a company can better utilise its resources on those customers it can serve better and create mutual value.

12 Conceptual Foundations of CRM 27 However, the objective of a company is not to really prune its customer base but to identify appropriate programmes and methods that would be profitable and create value for the firm and the customer. Parvatiyar and Sheth (2001) defined CRM as: Customer relationship management is a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for the company and the customer. As implied in the above definition, the purpose of CRM is to improve marketing productivity. Marketing productivity is improved by increasing marketing efficiency and by enhancing marketing effectiveness. CRM improves marketing efficiency through cooperative and collaborative processes by reducing transaction costs and overall development costs for the company. Marketing effectiveness is enhanced by seeking and achieving strategic marketing goals, e.g. entering new markets, developing new products or services, serving new or expanded needs of customers, and redefining the competitive playing field (Parvatiyar and Sheth, 2000). Processes of CRM including proactive customer business development and building partnering relationship with most important customers lead to the creation of superior mutual value. To sum up, the definitions address a few common issues. These include: (a) A process-oriented view which looks at the interactions over a period of time, (b) Explicitly highlight the collaborative and cooperative nature of the relationship for long-term mutual benefit, and (c) Metrics of relationship performance include enhanced value. The goals of CRM are: 1. Build long-term and profitable relationships with chosen customers, 2. Getting closer to those customers at every point of contact with them. This can be achieved by establishing a learning relationship by the interative process as shown in Figure 2.7. Figure 2.7 The Learning Relationship Process

13 28 Customer Relationship Management A Strategic Perspective CRM requires learning about customers and then customising the marketing mix. Knowledge acquisition refers to gaining customer insights by collecting information at every point of contact and converting them into insights, which can used to meaningfully differentiate customers. This organisational learning is used to develop customised products and services that can be communicated and distributed to specific customers at customised prices. Communication and information technology allows this interactive process at very cost effective prices to the mutual benefit of customer and the organisation. SUMMARY In this chapter, we began by understanding the evolution of CRM over a period of time. Many scholars describe CRM as a new-old concept as several factors have enabled marketers rediscover this age old concept. Then we evaluated the benefits of CRM, which gives insights on the reasons for its popularity among the practitioners. Its popularity among scholars and researchers is also evident from the different approaches to CRM propagated by scholars around the world. Finally, we reviewed some of most commonly used definitions for CRM. REFERENCES Berry, L.L. Relationship Marketing of Services Growing Interest, Emerging Perspectives, Journal of the Academy of Marketing Science, Fall, 1995, pp Bickert, J., The Database Revolution, Target Marketing, May, 1992, pp Christopher, M., Payne, A. and Ballantyne, D., Relationship Marketing: Bringing Quality, Customer Service and Marketing Together, 1992, Oxford: Butterworth-Heinemann. Coote, L., Implementation of Relationship Marketing in an Accounting Practice in Sheth, J.N. and Parvatiyar, A., Eds., Relationship Marketing: Theroy, Methods and Applications, GA: Emory University, Center for Relationship Marketing, Dwyer, F.R., Paul H. Schurr, and Sejo Oh, Developing Buyer-Seller Relationships, Journal of Marketing, 51, April 1987, pp Ganesan S. Determination of Long-term Orientation in Buyer Seller Relationships, Journal of Marketing, no. 58, April 1994, pp Gronroos, C. Relationship Approach to Marketing in Service Contexts: The Marketing and Organisational Behaviour Interface, Journal of Business Research, no. 20, January 1990, pp , The Marketing Strategy Continuum: A Marketing Concept for the 1990s, Management Decision, no. 29(1), 1991, pp , From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing, Management Decision, no. 32(2), 1994, pp Gruen, T.W., Relationship Marketing: The Route to Marketing Efficiency and Effectiveness, Business Horizons, November-December 1997, pp Harker, M.J., Relationship Marketing Defined? An Examination of Current Relationship Marketing Definitions, Marketing Intelligence and Planning, no. 17/1, 1999, pp Jackson, B.B., Winning and Keeping Industrial Customers: The Dynamics of Customer Relationships, Lexington: D.C. Heath and Company, McKenna, R., Relationship Marketing: Successful Strategies for the Age of the Customers, 1991, Addison- Wesley Publishing Company.

14 Conceptual Foundations of CRM 29 Morgan, R.M., and Shelby D. Hunt, The Commitment Trust Theory of Relationship Marketing, Journal of Marketing, no. 58(3), 1994, pp Parvatiyar, A. and Jagdish N. Sheth, The Domain and Conceptual Foundations of Relationship Marketing, in Handbook of Relationship Marketing, Jagdish N. Sheth and Atul Parvatiyar, Eds., Thousand Oaks: Sage Publications, 2000, pp , Conceptual Framework of Customer Relationship in Customer Relationship Management Emerging Concepts, Tools and Applications, Sheth, J.N., Parvatiyar, A., and Shainesh, G., Eds., New Delhi: Tata McGraw-Hill, 2001, pp Peppers, D. and Martha Rogers, The One to One Future: Building Relationships One Customer at a Time, 1993, New York: Doubleday. Payne, A., Relationship Marketing The UK Perspective, in Handbook of Relationship Marketing, Jagdish N. Sheth and Atul Parvatiyar, Eds., Thousand Oaks: Sage Publications, 2000, pp Reinartz, W. and Kumar, V., The Mismanagement of Customer Loyalty, Harvard Business Review, July 2002, pp Sheth, J.N. and Atul Parvatiyar, Relationship Marketing in Consumer Markets: Antecedents and Consequences, Journal of the Academy of Marketing Sciences, no. 23: 4, pp Storbacka, K., Customer Profitability: Analysis and Design Issues, in Handbook of Relationship Marketing, Jagdish N. Sheth and Atul Parvatiyar, Eds., Thousand Oaks: Sage Publications, 2000, pp Sheth, J.N. and Parvatiyar A., The Evolution of Relationship Marketing, International Business Review, no. 4, 1995, pp Vavra, T.G., Aftermarketing: How to Keep Customers for Life through Relationship Marketing, 1992, Homewood: Business One-Irwin.