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Customer Relationship Management: A Comparative Analysis of Family and Nonfamily Business Practices

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  • Marjorie J. Cooper
  • Nancy Upton
  • Samuel Seaman

Abstract

It has been reported that family businesses perceive excellent customer service as critical to the future of their businesses. However, little research into the customer relationship management (CRM) practices of family businesses has been performed. In this study, we examine CRM implementation among 82 family and 370 nonfamily firms. Family and nonfamily businesses report similar attitudes toward the importance of CRM, their knowledge of CRM, and their success when they do implement it. However, using a logit regression model, we find that the actual implementation strategies of family businesses are significantly different from those of nonfamily businesses. These results remain constant when controlling for size and industry sector.

Suggested Citation

  • Marjorie J. Cooper & Nancy Upton & Samuel Seaman, 2005. "Customer Relationship Management: A Comparative Analysis of Family and Nonfamily Business Practices," Journal of Small Business Management, Taylor & Francis Journals, vol. 43(3), pages 242-256, July.
    • Handle: RePEc:taf:ujbmxx:v:43:y:2005:i:3:p:242-256
    DOI: 10.1111/j.1540-627X.2005.00136.x
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    Cited by:

    1. Rizomyliotis, Ioannis & Kastanakis, Minas N. & Giovanis, Apostolos & Konstantoulaki, Kleopatra & Kostopoulos, Ioannis, 2022. "“How mAy I help you today?” The use of AI chatbots in small family businesses and the moderating role of customer affective commitment," Journal of Business Research, Elsevier, vol. 153(C), pages 329-340.
    2. Bargoni, Augusto & Kliestik, Tomas & Jabeen, Fauzia & Santoro, Gabriele, 2023. "Family firms’ characteristics and consumer behaviour: An enquiry into millennials’ purchase intention in the online channel," Journal of Business Research, Elsevier, vol. 156(C).
    3. Pereira, Vijay & Laker, Benjamin & Bamel, Umesh & Sharma, Gagan Deep & Paul, Happy, 2024. "Customer engagement strategies within family businesses in emerging economies: A multi-method study," Journal of Business Research, Elsevier, vol. 174(C).
    4. Lobo Carla Azevedo & Fernandes Cristina & Ferreira João & Veiga Pedro M. & Gerschewski Stephan, 2023. "The Determinants of International Performance for Family Firms: Understanding the Effects of Resources, Capabilities, and Market Orientation," Entrepreneurship Research Journal, De Gruyter, vol. 13(3), pages 773-811, July.
    5. Unai Arzubiaga & Alfredo De Massis & Amaia Maseda & Txomin Iturralde, 2023. "The influence of family firm image on access to financial resources in family SMEs: a signaling theory perspective," Review of Managerial Science, Springer, vol. 17(1), pages 233-258, January.
    6. Bargoni, Augusto & Giachino, Chiara & Troise, Ciro & Alam, Gazi Mahabubul & Quaglia, Roberto, 2023. "A digital family affair: Do family firms' characteristics enhance consumers' willingness to pay?," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    7. Christina Guenther & Maksim Belitski & Nada Rejeb, 2023. "Overcoming the ability-willingness paradox in small family firms’ collaborations," Small Business Economics, Springer, vol. 60(4), pages 1409-1429, April.
    8. Kinias, Ioannis & Chalis, Spyridon & Glyptis, Loukas, 2023. "Family business research: A systematic review and an uncelebrated role of marketing," Journal of Business Research, Elsevier, vol. 162(C).

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