Analysis of the Impact of Customer Relationship Management on Innovation Acquisition Using Agent-Based Modeling

Analysis of the Impact of Customer Relationship Management on Innovation Acquisition Using Agent-Based Modeling

Copyright: © 2021 |Pages: 28
DOI: 10.4018/978-1-7998-5879-9.ch001
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Abstract

The present study is conducted in order to examine the effect of Customer relationship management (CRM) on diffusion and acquisition of innovational products and services using agent-based modeling (ABM) methodology in a municipality. CRM components include customer orientation, organizational structure, knowledge management, and information technology. The innovational products and services diffusion steps also include awareness, interest, evaluation, testing, and adoption. A researcher-made questionnaire is used to collect data which has been distributed among 110 participants after testing its validity and reliability. SmartPLS3.2.6 and anylogic softwares are applied to analyze hypotheses and modeling and simulation, respectively. ABM is validated on the basis of experts' viewpoints. According to the research findings, CRM affects the diffusion process of municipality's products and services. ABM shows that without CRM, customers are usually lower for each phase of diffusion process.
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Background

CRM is a term for a set of methodologies, processes, software, and systems that are managed by institutions and companies and help organize communication with their customers (Burnett, 2000). CRM means creating and maintaining a defined relationship with profitable customers through the proper use of information and communication technologies (Namjoyan et al., 2013). As a process, CRM consists of monitoring the customer (such as collecting their appropriate data), managing and evaluating the data, and ultimately creating a real advantage of the information extracted from their interactions (Hasanzadeh and Mahaleh, 2013). CRM combines intimate customer relationships with economic savings, enabling the organization to build close relationships between business representatives and their customers. CRM is treated equally and unequivocally regardless of the organizational channel (Reynolds, 2002).

Services refer to any action or work that is presented from one side to the other and is necessarily provided as intangible and does not lead to the ownership of anything. Service production may or may not depend on physical goods. The service diffusion or acquisition model is one of the most practical marketing models that introduces the steps that each customer goes through during the purchase process. In fact, this model helps marketing and sales experts to better understand the sales process.

Salah et al. (2018), provided an understanding of effective CRM implementation through focusing technological (Compatibility, IT Infrastructure, and Security), organizational (top management support, financial support, and social influence), and cultural factors (information integrity, attitude, information policies, and culture change).

Feiz et al. (2011) explained integrating people, process, and technology to achieve a successful CRM. They stated that the main business drives of CRM are increasing customer lifetimes, reducing costs, and improving efficiency. The main barriers to becoming customer-centric are poor performances in some areas.

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