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1.1 Problem Statement
For many years, successful neighborhood merchants, restaurants and pubs had real customer relationships. They knew their customers personally, understood what they wanted, and, as best they could, satisfied their needs through personalized service. As a result, they earned loyalty and a large share of their customers′ business. Some of the best examples of building customer loyalty can be found in those traditional small businesses.
Now the question arises how customer relationships can be built in the world of E-Business. E-Business - the buying and selling of products and services over the Web - and its impact is comparable with the industrial revolution at the end of the last century. After hysteric times of E-Business startups and well known bursting bubbles the point of disillusion has come. Some internet companies recognize that traditional business concepts are not necessarily outdated. Acquiring customers on the international marketplace of E-Business is enormously expensive and unless those customers stick around and make lots of repeat purchases over the years, profit will remain uncertain. For lasting success companies have to intensify their efforts towards customer loyalty and customer relationship management. Without loyalty even the best-designed E-Business model will collapse. This leads to the following objective.
1.2 Objective
The objectives of the thesis are
-to combine the concept of customer loyalty with the characteristics of E-Business
-show how companies can build loyalty with customer relationship management
1.3 Relevance of the Topic
1.3.1 Theoretical Relevance
Concerning E-Business there exists plenty of literature mainly from a technical point of view. The drawback is that although loyalty and relationships are seen as very important factors in the context of international business, the question has obtained scarce attention in literature about E-Business. Existing studies in this area mainly have descriptive character or try to offer quick-fix over-optimistic internet solutions, which become obsolete pretty fast. The contribution of this thesis is to fill that gap and offer a more conceptual/systematic as well as critical perspective.
The thesis
-Transfers the concept of relationship management into the environment of E-Business
-Points out potential conflicts
-Demonstrates benefits and show ways to increase online customer-loyalty
1.3.2 Practical Relevance
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Table of Contents
1 Introduction
1.1 Problem Statement
1.2 Objective
1.3 Relevance of the Topic
1.3.1 Theoretical Relevance
1.3.2 Practical Relevance
2 Literature Review and Theoretical Framework
2.1 State of Research: Descriptive instead of Conception
2.2 Methodology
2.2.1 Definition and Limitation of Research Topic
2.2.2 Research Structure
3 Loyalty and Customer Relationship Management
3.1 Definition of Loyalty and Relationship Management
3.1.1 Benefits of Relationship Management & Customer Loyalty
3.1.2 Transactional View versus Relationship View
3.1.3 The Evolution of Relationship Management
3.2 General Approaches to Relationship Management
3.2.1 IMP Interaction Approach
3.2.2 Five-phase Profit Chain by Bruhn
3.2.3 Dynamic Framework by Dwyer, Schurr & Oh
3.3 Evaluation Criteria for a Concept of Relationship Management
3.4 Chosen Concept
4 International E-Business
4.1 Definition of E-Business
4.2 Value Adding Characteristics/Opportunities of E-Business
4.2.1 Interactivity, Dialogue, Individuality
4.2.2 Customer-Integration and Innovation
4.2.3 Changing Structure of the Value-adding Process
4.2.4 Market-pull and Customized-push instead of Market-push
4.2.5 Global, 24-hour Access
5 Customer Loyalty and International E-Business
5.1 New Model for Customer Loyalty & Relationship Management in E-Business
5.2 Individuality and Interactivity during the Relationship Process
5.3 E-Business Relationship Process
5.3.1 Stage 1: First Contact - Online Surfer
5.3.2 Stage 2: Customer Satisfaction - Online Buyer
5.3.3 Stage 3: Customer Loyalty
5.3.4 Stage 4: Customer Retention - Repeat Business Contacts
5.3.5 Stage 5: Economic success & Long-term Profitability
5.3.6 Influencing factors: External and Internal
5.4 Instruments for Customer Loyalty in the World of E-Business
5.4.1 Knowing your Customers - Customer Profiles & Database
5.4.2 Online Communities
5.4.3 Complaint Management System
5.4.4 Membership Clubs
5.4.5 Datamining
5.4.6 Customer-Integrated Product Innovation
6 Conclusion
Objectives and Topics
The primary objective of this thesis is to develop a comprehensive framework for building customer loyalty within the E-Business environment by integrating traditional relationship management principles with the unique characteristics of digital commerce.
- Analysis of customer loyalty and relationship management concepts.
- Examination of the E-Business landscape and its specific value-adding characteristics.
- Integration of relationship management models into the internet environment.
- Evaluation of digital instruments such as data mining, communities, and customer-integrated innovation.
Excerpt from the Book
5.4.2 Online Communities
The notion of community has been at the heart of the Internet since its early days, when scientists used it to share data, collaborate on research, and exchange messages. Real value will come from providing people with the ability to interact with one another - from satisfying their multiple social needs as well as their commercial needs. The asset structure of a company in E-Business is founded on the trust of its consumer members. The mechanisms that are fundamental to building trust can be used to structure the relationship between marketer and customer. These mechanisms, including transparency of information, self-regulation, rich social interactions among members, and a sense of involvement in determining the future of the relationship, do not function well in vertical or hierarchical systems. To flourish, the mechanisms require the creation of a customer community.
In its simplest form, a virtual community should be understood as a group that shares interest, even passion, for a particular activity (such as travel) or product class (such as racing cars). A virtual community has five defining characteristics:
1. member focus,
2. integration of content and communication,
3. emphasis on member-generated content,
4. choice among competing vendors, and
5. commercially motivated community organizers.
These elements combine to form a viable model for business on the Web. For example, members share their product experiences with other members and in the process generate valuable content for the community members in general. The increased interaction among members means more member-generated content, increased capacity of the community to attract new members, more loyalty to the community by the members, and possibly more transactions by them.
Summary of Chapters
1 Introduction: This chapter outlines the problem of building customer loyalty in E-Business and defines the objectives and relevance of the thesis.
2 Literature Review and Theoretical Framework: This section assesses existing research, defines the methodology, and establishes the theoretical foundations for the study.
3 Loyalty and Customer Relationship Management: This chapter covers the history, definitions, and major conceptual approaches to relationship management in business.
4 International E-Business: This chapter defines E-Business and analyzes its core value-adding characteristics and market opportunities.
5 Customer Loyalty and International E-Business: This chapter combines the previous concepts into a new model for online loyalty, detailing specific instruments for implementation.
6 Conclusion: This chapter synthesizes the findings and reinforces the importance of relationship management in the modern digital marketplace.
Keywords
E-Business, Customer Loyalty, Relationship Management, Online Communities, Customer Database, Datamining, Mass Customization, Customer Integration, Digital Strategy, Market-pull, Transactional View, Relationship View, Value Chain.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis focuses on how companies can build and maintain long-term customer loyalty specifically within the digital E-Business environment, moving beyond simple transactional models.
What are the central thematic fields covered?
The study covers relationship management theory, E-Business characteristics, customer loyalty models, and practical instruments like online communities and data mining.
What is the primary objective of this research?
The primary objective is to create an integrated model that translates traditional relationship management into an internet-based context to ensure sustainable customer loyalty.
Which scientific methodology is utilized?
The author uses a systematic and structural approach, drawing upon international management literature and analyzing best-practice case studies to validate theoretical models.
What is discussed in the main part of the work?
The main part analyzes various approaches to relationship management, the unique value propositions of E-Business, and how to implement tools like membership clubs and customized product innovation.
Which keywords best characterize this study?
The study is characterized by concepts such as E-Business, Relationship Management, Customer Loyalty, Online Communities, and Datamining.
How do online communities contribute to loyalty?
Online communities foster loyalty by providing social and informational value, allowing for peer-to-peer interaction, and creating a sense of belonging that traditional one-to-many models lack.
Why is data mining crucial for E-Business?
Data mining allows companies to discover hidden patterns in customer behavior, which facilitates personalized marketing, efficient churn analysis, and targeted product offerings.
- Arbeit zitieren
- Wolfgang Katsch (Autor:in), 2001, International E-Business – Building Online Customer Loyalty with Relationship Management, München, GRIN Verlag, https://www.grin.com/document/550
