Customer Relationship Management in the E-Retailing Environment

Total Page:16

File Type:pdf, Size:1020Kb

Customer Relationship Management in the E-Retailing Environment Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2018 Customer Relationship Management in the E- Retailing Environment Nikki R. Hicks Walden University Follow this and additional works at: https://scholarworks.waldenu.edu/dissertations Part of the Advertising and Promotion Management Commons, and the Marketing Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact [email protected]. Walden University College of Management and Technology This is to certify that the doctoral study by Nikki Hicks has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. Jaime Klein, Committee Chairperson, Doctor of Business Administration Faculty Dr. Jamiel Vadell, Committee Member, Doctor of Business Administration Faculty Dr. Julia East, University Reviewer, Doctor of Business Administration Faculty Chief Academic Officer Eric Riedel, Ph.D. Walden University 2018 Abstract Customer Relationship Management in the E-Retailing Environment by Nikki R. Hicks MBA, Averett University, 2006 BS, Hampton University, 1994 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University January 2018 Abstract Small business enterprise (SBE) managers often lack resources, expertise, and impact when selling in an online environment. SBEs can overcome increased competition by adopting customer relationship management (CRM) into their business model for survival and longevity. Using the conceptual framework technology, organization, environment (TOE), this multiple case study explored effective marketing strategies that small store retail managers use to successfully sell apparel and accessories in online markets. The study population included leaders from independent small online retail enterprises with brick-and-mortar stores located in the Central, Tri-Cities, or Southside areas in Virginia. The data collection process included semistructured, on-site interviews of 4 SBE owners or managers and reviewing organizational documents and online postings from those 4 organizations. Using topic coding, the data were organized into nodes grounded in the context of TOE. The thematic analysis yielded 5 themes: social media engagement, price congruency, organizational knowledge benefit, customer satisfaction, and customer engagement. The study findings revealed that a significant strategy for SBEs operating in online markets was social CRM, an inexpensive and critical tool for CRM. Further, CRM tools such as social media required consistent monitoring and the devotion of financial and human resources to deliver constant customer engagement. The implication for social change includes the potential to improve the life cycle of SBEs in smaller communities, which improves community entrepreneurial and startup success. Entrepreneurship contributes to community vitality and economic prosperity by providing employment, skill development, and job training. Customer Relationship Management in the E-Retailing Environment by Nikki R. Hicks MBA, Averett University, 2006 BS, Hampton University, 1994 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University January 2018 Dedication This long-awaited completion of a project I started when my daughter was 3 years old (she is now 9) is dedicated to my husband, daughter, parents, brother, in-laws, church family, family, and all of those who supported me along the way. Acknowledgments I thank God for instilling in me a heart of determination and perseverance. I am where I am today because of His grace and mercy. I want to thank my family for their unwavering support. My husband, who at the same time was completing his doctorate, supported me throughout and evolved into the mentor I would need at the end. I thank my daughter for allowing her mommy to be consumed with homework and papers; I hope my love for research rubs off on her. I thank my father for pushing me when I wanted to give up. I thank my mother for always offering words of encouragement. I also thank my brother for inspiring me to be that big sister he could always look up to. Posthumously, I thank my father-in-law and mother-in-law for inspiring me to be an educator. It was their love for eduation that led me to this career and desire to pursue my doctorate. I truly appreciate the best doctoral study committee I could have hoped for. Thank you Dr. Klein, your perspective on how to get through this process was invaluable. Thank you Dr. Vadell for your feedback and patience. Finally, Dr. East, I truly appreciate the feedback. To my doctoral study committee, your guidance made me a better researcher and writer. Table of Contents List of Tables ..................................................................................................................... iv List of Figures ......................................................................................................................v Section 1: Foundation of the Study ......................................................................................1 Background of the Problem ...........................................................................................1 Problem Statement .........................................................................................................2 Purpose Statement ..........................................................................................................2 Nature of the Study ........................................................................................................3 Research Question ........................................................................................................4 Interview Questions .......................................................................................................5 Conceptual Framework ..................................................................................................5 Operational Definitions ..................................................................................................6 Assumptions, Limitations, and Delimitations ................................................................7 Assumptions ............................................................................................................ 7 Limitations .............................................................................................................. 8 Delimitations ........................................................................................................... 9 Significance of the Study ...............................................................................................9 Contribution to Business Practice ......................................................................... 10 Implications for Social Change ............................................................................. 10 Review of Professional and Academic Literature .......................................................12 TOE Framework ................................................................................................... 13 SBEs ................................................................................................................... 31 i Relationship Marketing and CRM ........................................................................ 35 Summary and Transition ..............................................................................................44 Section 2: The Project ........................................................................................................45 Introduction ..................................................................................................................45 Purpose Statement ........................................................................................................45 Role of the Researcher .................................................................................................46 Participants ...................................................................................................................50 Research Method and Design ......................................................................................55 Research Method .................................................................................................. 55 Research Design.................................................................................................... 57 Population and Sampling .............................................................................................61 Ethical Research...........................................................................................................65 Data Collection Instruments ........................................................................................67 Data Collection Technique ..........................................................................................69 Data Organization Technique ......................................................................................73 Data Analysis ...............................................................................................................75
Recommended publications
  • Business Model Development for E-Commerce Initiative
    Ilkka Heikinniemi Business Model Development for E-commerce Initiative Metropolia University of Applied Sciences Bachelor of Engineering Industrial Management Bachelor’s Thesis 7 May 2019 Abstract Author Ilkka Heikinniemi Title Business Model Development for E-commerce Initiative Number of Pages 51 pages + 4 appendices Date 7 May 2019 Degree Bachelor of Engineering Degree Programme Industrial Management Professional Major Process Management Instructors Antti Matinlauri, Global Business Development Manager Thomas Rohweder, DSc (Econ), Principal Lecturer The objective of this thesis was to develop a preliminary e-commerce business model, which would provide mutual benefit for the case company and its channel partners. The need for e-commerce emerges from increased online buying, and from urgency to better serve digital native customers. However, the existing business model, which relies on distributors and channel partners generating majority of the revenue, is currently a challenge. This work strives to find an e-commerce solution where intermediaries are not disregarded, whereby the channel conflict between traditional and digital channels can be avoided. The thesis was conducted by using the action research method with pragmatic and iterative approach. Firstly, literature best practices regarding e-commerce and channel conflict miti- gation was reviewed. It was followed by a current state analysis, where internal data were utilized, and relevant senior management interviewed. Thirdly, based on the analysis of the previous phases and on the case company’s strategic intents, a development phase was carried out to combine existing and new business elements. An ecosystem-based model was developed to address the business challenge. The model is based on a webshop, which utilizes local channel partners in the end of customer journey.
    [Show full text]
  • Are You Ready for Eprocurement? Guide to Electronic Procurement Reform
    Are you ready for eProcurement? Guide to Electronic Procurement Reform Are you ready for eProcurement? Guide to Electronic Procurement Reform Are you ready for eProcurement? Guide to Electronic Procurement Reform 2015 Are you ready for eProcurement? Guide to Electronic Procurement Reform 4 Preface Electronic procurement in the public sector (eProcurement) is the business-to-government tendering and sale of goods, services and works through online platforms as well as other networking systems, such as electronic data interchange and procurement planning facilities. Typically, eProcurement solutions allow for registered and qualified economic operators – suppliers and contractors active in the market – to compete for public contracts in response to tenders published online by contracting entities. In essence, eProcurement replaces traditional bureaucratic paper-based public procurement procedures with interactive online processes (online e-tendering and reverse e-auctions) making procurement processes accessible to all interested suppliers and contractors, uniform, less time consuming and cheaper for all stakeholders. In 2010 the European Bank for Reconstruction and Development (EBRD), through its Legal Transition Programme, conducted an assessment of public procurement regulatory frameworks in the EBRD countries of operations. The assessment highlighted that much of the recorded “success stories” in public procurement reforms was linked to the implementation of electronic procurement and that since the 2008 financial crisis governments’
    [Show full text]
  • Retail / Merchandising
    Retail / Merchandising Area Buying/Purchasing Product development Planning and allocation Global sourcing Employers Discount stores Department stores Mass merchants Specialty stores (e.g., grocery, clothing, electronics, health and personal care, sporting goods, building materials and garden supply, furniture and home furnishings, etc.) Online retailers Strategies Obtain sales and retail experience through part-time jobs and internships. Supplement curriculum with business courses as some employers prefer it and others require it. Develop organizational skills and attention to detail to monitor inventory and compare products, prices, and markets. Forecasting skills are expected as buyers select merchandise that may sell six months later. Acquire analytical and mathematical skills to operate within a budget and to evaluate sales data including competitors’. Build excellent interpersonal and communication skills for negotiating with vendors. Prepare to work under pressure and exhibit good judgment and decisiveness. Be prepared to travel frequently in order to visit fashion and trade shows and industry conferences to search for new merchandise. Overtime is generally required. Expect to work with overseas suppliers. Knowledge of languages, customs, and cultures will be helpful. Exhibit a competitive drive with the understanding that a buyer’s goal is to beat the sales and profit records of the previous year. Be prepared to begin as a buyer trainee. Training periods can range from 1 to 5 years. Area Management/Administration Corporate Regional Store Store assistant Store department Employers Discount stores Department stores Mass merchants Specialty stores (e.g., grocery, clothing, electronics, health and personal care, sporting goods, building materials and garden supply, furniture and home furnishings, etc.) Online retailers Strategies Seek retail experience through internships or part-time jobs.
    [Show full text]
  • Study of Cooperative Product Business Support Platform for New Product Development
    674 The Fourth International Conference on Electronic Business (ICEB2004) / Beijing Study of cooperative product business support platform for new product development Haigang Li School of Management, Shanghai Jiao Tong University, Shanghai 200052, China [email protected] ABSTRACT The development phases of e-business is described firstly, then the new product development process in cooperative product business is presented in detail, the cooperative product business support platform including technical platform and information platform is discussed finally. Key words: new product development; e-business; cooperative product business; platform 1. INTRODUCTION supply chain management and customer relationship management; fourthly, internal and external resource of With the more and more fierily of market competition, enterprises should be integrated, and attention to internal enterprise is obliged to adopt new administration value chain should be changed to external one by the operation mechanism and new business model, the key to method of business process integration; finally, digital this is electronic business. The kernel meaning can be operation and decision should be fulfilled by the method presented like this, firstly, new business model should be of business intelligence. built and the existing business model should be integrated on the basis of the Internet techniques Product is the key to manufacturing operation of platform; secondly, organization structure of enterprises enterprise. For manufacturing industry, cooperative should be reengineering and improved systematically by business based on Internet is the senior type of electronic the technique of business process reengineering for the business, which includes electronic commerce and purpose of enhancement of enterprises operation; thirdly, collaborative product commerce. Figure 1 gives us the relationship among manufacturer, supplier and customer development process of electronic business.
    [Show full text]
  • An Analysis on the Implementation of Electronic Supply Chain In
    An Analysis on the Implementation of Electronic Supply Chain in International Trade Hanlin Chen, Lingxiang Kong The business school, Hubei University, Wuhan, 430062, China luckhl@yahoo. com. en Abstract. The advancement of information technology has allowed firms that participate in supply chain management to share information across organizational boundaries. An innovative transaction process which is electronically supported may lead to efficiency gaining and cost reducing, at the same time it enhances the operational effectiveness. The implementation of electronic supply chain in international trade improves coordination between buyers and sellers and increases transaction efficiency by raising the operational effectiveness. The paper gives us a rough introduction of electronic supply chain. Then it shows us the process of international trade in which an effective electronic supply chain is implemented. Finally, a case study about Dell is brought out to show how to implement E-supply chain in international trade. 1 Introduction Fewer than 10 years ago, the purchase of a product, using some modes of transport to reach the shopping destinations, selecting the product physically, and then paying for the purchase. Today, many consumers, be they at home, at work, or at some other locations, can go online 24 hours a day, seven days a week, and select and purchase a great assortment of products over the Internet while doing their "shoppmg". Indeed, it is now possible, in many instances, to buy books, videos, and CDs online as well as to order food from a supermarket or a restaurant in an electronic manner, and have the items delivered afterwards to the desired destinations.
    [Show full text]
  • Retail Marketing Strategies: Need for a Relook with Changing Preferences of Consumers Towards Retail Formats
    International Journal of Retail Management & Research (IJRMR) ISSN 2277-4750 Vol.2, Issue 4 Dec 17-30 © TJPRC Pvt. Ltd., RETAIL MARKETING STRATEGIES: NEED FOR A RELOOK WITH CHANGING PREFERENCES OF CONSUMERS TOWARDS RETAIL FORMATS 1DEEPIKA JHAMB & 2RAVI KIRAN 1Research Scholar & Teaching Associate School of Management & Social Sciences,Thapar University, Patiala, India 2Professor & HOD School of Management & Social Sciences, Thapar University, Patiala, India ABSTRACT The recent interest in ``marketing strategies'' has, increased the attention given to temporal shift in store formats i.e. malls, hyper/supermarkets, specialty stores, department stores, discount stores and convenience stores. Following a brief review, this paper seeks to explore the important marketing strategies of retailers and the implementation of these marketing strategies by emerging retail formats for enhancing their sales. Further, the study helps in designing a framework for important marketing strategies of retailers and the choice of these strategies by emerging retail formats. The findings of the paper reveal that the retention strategies, promotional strategies, growth and improvement strategies, pricing strategies and competitive strategies are the important marketing strategies of retailers and play an important role in enhancing the sales of retail formats. KEYWORDS: Pricing, Promotion, Retention, Growth, Competitive, Strategies, Retail Formats INTRODUCTION In the ever-changing globalized and liberalized world of retailing, competition becomes the major organizational principle of marketing activities. In this dynamic business environment, consumer behavior, trends and issues of retailing are undergoing a sea change. This demands marketing approaches to be altered accordingly. Thus all retail formats are challenged to formulate marketing strategies that will ensure them of achieving competitive advantage over other competing formats.
    [Show full text]
  • Collaborative, Co-Operative and Collective Business Models in the ‘New’ Music Industries: a Literature Review Marcus O’Dair Middlesex University M.O’[email protected]
    Collaborative, co-operative and collective business models in the ‘new’ music industries: a literature review Marcus O’Dair Middlesex University m.o’[email protected] Introduction Much has been written about the disruptive effect of digital technologies on the music industries since the emergence of the peer-to-peer file-sharing network Napster in 1999. Some (Hughes and Lang 2003, Dubosson-Torbay et al 2004, Kusek and Leonhard 2005, Knopper 2009) have portrayed the changes as revolutionary. Others (Thompson et al 2009, Campos 2012, Moyon and Lecoq 2013, Rethink Music 2013, Rogers 2013) insist that several essential aspects have not, in fact, changed; they speak, like Rogers, of ‘evolution not revolution’ (177). If there has been, at the very least, a significant shift in music’s value chain in recent years, due to factors such as the shift of music consumption from an ownership to an access model and the ‘unbundling’ of albums into single tracks, (Rethink Music 2015), it is widely seen (by Hughes and Lang 2003, for instance) as essentially bad news for record labels and good news for consumers. There are conflicting reports, however, as to what it means for those actually making the music. Perhaps inadvertently, Fox (2004) sums up the musician’s ambiguous position when he writes that downloadable music and its associated technologies have brought about a redistribution of power from major record companies to music consumers ‘and, arguably, artists’ (205; my emphasis). Feehan and Chertkow (2009) and Owsinski (2009) have written enthusiastically about the possibilities of a DIY approach for musicians, arguing that lowered costs and barriers to entry have allowed artists to disregard gatekeepers.
    [Show full text]
  • The Electronic Marketplace As the Element of the Agricultural Market Infrastructure
    DARIUSZ STRZĘBICKI DOI: 10.5604/00441600.1148660 Warsaw University of Life Sciences (SGGW) Warsaw THE ELECTRONIC MARKETPLACE AS THE ELEMENT OF THE AGRICULTURAL MARKET INFRASTRUCTURE Abstract The article discusses the issues of conducting transactions for agricultural products via the Internet between businesses. In particular, it is dedicated to the so-called electronic agricultural commodity marketplaces that are virtual meeting places of buyers and sellers of agricultural commodities. The pur- pose of this article is an indication of the changes taking place in the agri- cultural market under the influence of electronic marketplaces for agricul- tural commodities. The research method that was used to write this article was a case study. Three foreign electronic agricultural commodity market- places were analysed. Information on electronic marketplaces described came from their websites and scientific studies. The presented three examples of foreign electronic agricultural marketplaces show how complex issue is the development of electronic markets for agricultural commodities and how they induce profound changes in the functioning of traditional agricul- tural commodity markets. Introduction The Internet is used for agribusiness needs to an increasingly wider degree. This phenomenon is manifested, inter alia, in the growing number of websites thematic- ally connected to agricultural production and broadly-conceived food economy. Participants of agricultural markets have the opportunity to search for and, at once, publish information
    [Show full text]
  • E-Commerce Applications of Yiwu Market in the Age of the Internet
    3rd International Conference on Information, Business and Education Technology (ICIBET 2014) E-commerce Applications of Yiwu Market in the Age of the Internet Mei Yujuan Yiwu Industrial & Commercial College, Zhejiang Province, China [email protected] Abstract - The development of Internet and electronic How to using electronic commerce in a better way, how to commerce, formed a huge challenge and also brought great combining both tangible and intangible market become the an opportunities to the traditional professional market. As one the important issue in the future strategic planning. biggest small commodity market of the world, Yiwu market e-commerce applications has been gradually penetrate into every 2. Yiwu Market Opportunities in the Internet Age aspect, reasonable e-commerce strategies becoming the important content of Yiwu market long-term healthy development in internet 2.1 Opportunities of promoting the Yiwu international market age. At present, the extroverted degree of Yiwu market has Index Terms - Yiwu market, physical market, intangible reached more than 65%, International trade is the key of the market, electronic commerce strategy Yiwu market. The arrival of the Internet provides advanced technology to Yiwu market internationalization management. 1. Introduction E-commerce also promotes the development. Because the After more than 20 years of development, the Internet can break through geographical, time constraints, less organization form of Yiwu market has developed from influenced by natural conditions, using the international trade traditional market into modernization, new professional not only help the small business enterprise saving transaction market internationalization. Market function has developed cost and time ,but also providing more opportunities of the from single commodity trade to such as show goods, operator with export trade than ever before, which make up information collection, price formation, the development of for small enterprises on the international market information, products, innovation direction.
    [Show full text]
  • Coercion and Harassment at the Door – Energy Marketing in Victoria
    Coercion and harassment at the door Consumer experiences with energy direct marketers A report by Consumer Action Law Centre and the Financial & Consumer Rights Council November 2007 Coercion and harassment at the door Consumer Experiences with energy direct marketers Consumer Action Law Centre This paper has been funded by the National Electricity Consumers Advocacy Panel (Advocacy Panel) (90%) and the Consumer Utilities Advocacy Centre (CUAC) (10%) and we would like to take this opportunity to thank them for their support. The views and interpretations expressed in this paper are those of Consumer Action and FCRC and do not represent the views of the Advocacy Panel or CUAC. This paper is © Consumer Action and FCRC 2007. It may be reproduced for non-commercial purposes in whole or in part, so long as the original meaning is retained and Consumer Action and FCRC are acknowledged. Consumer Action Law Centre Ltd Financial & Consumer Rights Council ABN 37 120 046 484 ABN 89 498 543 075 Level 7, 459 Little Collins Street Level 1, 247-257 Flinders Lane Melbourne VIC 3000 Melbourne VIC 3000 Phone: 03 9670 5088 Phone: 03 9663 2000 Fax: 03 9629 6898 Email: [email protected] www.consumeraction.org.au www.fcrc.org.au - ii - Coercion and harassment at the door Consumer Experiences with energy direct marketers Consumer Action Law Centre Acknowledgments Thank you to People First – Total Solutions for their assistance with collecting and collating the case studies which were essential to this project. In addition, thank you to the following financial counselling agencies for the generous gift of their time in sharing the stories of their clients.
    [Show full text]
  • The Effects of Retail Marketing Mix on Customer Retention of Sein Daung Supermarket
    International Journal of Business, Economics and Law, Vol. 23, Issue 1 (December) ISSN 2289-1552 2020 THE EFFECTS OF RETAIL MARKETING MIX ON CUSTOMER RETENTION OF SEIN DAUNG SUPERMARKET Khin Thet Htwe ABSTRACT The purpose of this study is to contribute to the literature of retail marketing mix (6Ps) practiced by supermarket in Nay Pyi Taw, Myanmar. Retail marketing mix are important contributor to customer satisfaction and retention based on perception of customers. The specific objectives of this study are to identify retail marketing mix of Sein Daung Supermarket and to analyze the effects of retail marketing mix on customer satisfaction towards Sein Daung Supermarket and to analyze the relationship between customer satisfaction and customer retention. To achieve these objectives, 6Ps of retail marketing mix (product offerings, place, price, promotion and events, people and presentation) were analyzed. According to the multiple regression analysis, product offerings, price and presentation have significant and positive effects on customer satisfaction. Among them, presentation has the most significant and positive relationship. Place, promotion and events and people have no significant effects on customer satisfaction. By the linear regression analysis, there is a significant and positive relationship between customer satisfaction and customer retention. Keywords: retail marketing mix, supermarket, customer satisfaction, customer retention INTRODUCTION The current market place has become more competitive as customers continually expect retailers to match or exceed their expectations (Wongand Sohal, 2003). With a rising degree of homogeneity between merchandise offerings, supermarkets are increasingly turning to the delivery of effective customer services to render a competitive advantage (Ellram et al, 1999). Maintaining customer satisfaction is crucial for such retailers as they transact in a highly competitive world (Fonseca, 2009).
    [Show full text]
  • Employment Impact of Electronic Business
    E-Business Employment impact of electronic business Electronic business both stimulates and dampens employment in many occupations and industries; however, assessments of those impacts can only be qualitative rather than quantitative Daniel E. Hecker very 2 years, the Bureau of Labor Statis- fecting output per worker and employment in vir- tics develops 10-year projections of indus- tually every industry. Etry and occupational employment, taking Interest in e-business has spawned a host of into account likely changes caused by new quantitative projections by private forecasters, technologies and business practices. The 1998– most of whom focus on cost reductions and in- 2008 series of BLS projections, published in the dustry sales growth; none specifically addresses November 1999 Monthly Labor Review, did not the impact on employment. Because of the gen- specifically address the effects of electronic busi- eral dearth of quantitative information, the as- ness (e-business) on the economy, because of sessment presented in this article is completely the recent nature of the phenomenon and the rela- qualitative. Prospective changes are discussed tive paucity of information pertaining to it. This in terms of e-business stimulating or dampening article presents a first look at the extent to which employment or output in an industry or occupa- e-business could affect industries and occupa- tion. This approach differs from discussions in tions over the next decade. The impacts described previous Monthly Labor Review projections ar- will be reflected, to the extent possible, in the ticles, which incorporate the impact of numerous 2000–10 projections, to be published in the No- factors and which present employment increases vember 2001 issue of the Review.
    [Show full text]