Basic Model of CKM in Terms of Marketing Performance and Some Important Antecedents and Dimensions

Basic Model of CKM in Terms of Marketing Performance and Some Important Antecedents and Dimensions

Mohammad Fateh Ali Khan Panni (City University, Bangladesh)
Copyright: © 2015 |Pages: 30
DOI: 10.4018/978-1-4666-6547-7.ch006
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Abstract

Customer-centric marketing strategies have gained momentum in the academic world as well as in the professional field. With the gradual development of CRM, RM, and most recently KM, Customer Knowledge Management (CKM) is becoming a buzzword in the marketing discipline. Based on thoroughly researched secondary data, this conceptual chapter suggests a basic framework of CKM in terms of marketing performance through integrating the so far incoherent frameworks as proposed by previous authors. The proposed framework reveals the influence of the elements of CRM and KM layer on the marketing performance of the organizations as well as different interaction effects of these layers. The chapter also includes some new dimensions and antecedents of CKM in terms of organizational performance and some new recent trends of CKM. Some practices of CKM in an emerging country like Vietnam are included in the chapter.
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Introduction

In recent years, marketing focus has shifted towards long-run marketing which has given rise to cutting edge concepts such as Relationship Marketing (RM), Customer Relationship Management (CRM) etc. In addition to this, very recently a new concept has been evolved in the academic arena which is basically concerned with the acquisition, maintenance and utilization of different types of knowledge/ideas/information within an organization which is known as Knowledge Management (KM) (Paquette, 2006; Rowley, 2002). With the development of Knowledge Management concepts in the organizations, it is felt necessary by many organizations to properly acquire, preserve, maintain and utilize customer knowledge to achieve better marketing performance through long-run marketing vision. This ultimately led to develop a new concept in the marketing area which is known as Customer Knowledge Management (CKM). Furthermore, recently, another interdisciplinary marketing concept has been evolving which is known as curative marketing forwarded by Czinkota (2012). The main theme/objective of curative marketing is to use marketing’s capabilities to reflect on its shortcomings in the past and deliver compensatory future action; hence, healing and setting things right to increase the well being of the individual and society on a global scale. This paradigm draws on a variety of disciplines such as jurisprudence, cultural anthropology, philosophy and history paradigm of curative marketing (Czinkota, 2012). As a result, marketers must deliver joy, pleasure, fulfillment, safety, personal growth, and advancement towards a better society. In this perspective, one major concern of curative marketing is to ensure truthfulness and simplicity to the individuals, especially, the customers that will assist them in their purchasing decision in a fair manner. In order to address these issues properly, Customer Knowledge Management (CKM) can play a pivotal role by preserving relevant customer knowledge in an appropriate way, which can assist the marketers to understand what customers really want and, at the same time, adequately inform the customer about the assortments that the marketers have to offer. Czinkota, Kaufmann and Basile (2014) have provided some interesting aspects of curative marketing. Their study revealed with new insights about the identification of corporate and supply chain behavior affecting via the legitimacy or reputation of the company corporate and/or supply chain performance. Their work concluded that mutual relationship exists between reputation and legitimacy where they further mentioned that recognizing such a relationship gives the company greater visibility and credibility, when it behaves according to social expectations. On the other hand, reputation tends to affect legitimacy when competitive behavior is carried out according to contextual standards, values and beliefs. Through a proper customer knowledge management system, marketers are able to collect feedback from the customers, which can ultimately help them in further developing their products and services to fulfill the customers’ expectations. In this way, CKM can be considered as one of the most significant preconditions for curative marketing. In recent period, CKM is gaining much importance in the academic world as well as in the professional field. As a most recent and very new innovative area, a body of literature can be found that have discussed a very preliminary insight about CKM. Most of the prior literatures in the field mainly discussed about the basic matters such as what is it, from where it has been derived, some of its major issues etc. For example, there exists a large body of literature (such as Dous, Kolbe, Salomann and Brenner, 2005; Paquette, 2006; Vorheaur, 2008; Zanzani, Rouzbehani and Dabbagh, 2008) that have only tried to conceptually discuss the components of CRM construct of CKM i.e. knowledge for, from and about customer. Some literatures can be found (Bueren, Schierholz, Kolbe and Brenner, 2004; Leitch and Rosen, 2001) that have tried to conceptually discuss the importance of KM integration with CRM in the CKM process. Dennis, Marsland and Cockett (2001) in their study tried to find out the influence of CRM components (knowledge for, from and about customers) on the marketing performance through a qualitative exploratory study. Bose and Sugumaran (2003) in their study tried to discuss the importance of KM aspect in the CKM process. They also tried to discuss the possible impact of overall KM aspect on the organizational performance. Very few prior literatures exist that have tried to explain the influence of the CKM elements (both CRM and KM aspects) on the organizational performance and to a limited extent on the marketing performance mainly as a part of the organizational performance (such as Davenport and Glaser, 2002; Karami, Gharleghi, Nikbakth and Mirasadi, 2010; Peyman and Safanaz, 2008; Rowley, 2001; Sentosa, Piaralal and Bohari, 2011; Weiss, Capozzi and Prusak, 2004; Wiij, 1994). However these few literatures have attempted to address this but in a very scattered way. Keeping this aspect in mind this chapter tries to develop an integrated conceptual framework that addresses the CKM impact on marketing performance. In fact, based on thoroughly researched secondary data, this chapter suggests a framework integrating the so far incoherent frameworks as proposed by previous authors. Emanating from this eclectic and chronological literature review, the chapter also proposes further missing links that need to be included in the proposed integrated framework which has led to develop a hypothesized index. The framework and the index developed from this chapter are expected to provide a clear direction to the future researchers and may be tested empirically in a later study to testify its impact. So basically, the chapter has broadly two major objectives: 1) To develop an integrated conceptual framework of CKM. 2) To formulate a hypothesized index relating to its impact on marketing performance. Moreover, with the passage of time some new dimensions and antecedents of CKM have recently been found in the literature which this chapter is going to address. The chapter is also going to include some recent emerging trends of CKM and practice of CKM in an emerging country i.e. Vietnam.

Key Terms in this Chapter

Customer Loyalty: Loyalty is the extent to which customers will stay with a particular brand and/or company and normally do not think about any other alternatives to choose.

Customer Knowledge Management (CKM): Customer knowledge management is concerned with the management and exploitation of customer knowledge. In fact CKM refers to a systematic process of collecting, preserving, sharing and utilizing of customer knowledge in order to build up and maintain enduring relationship with them.

Customer Profitability: Customer profitability refers to the revenue less the costs which one particular customer generates over a period of time. So from their point of view profitability can be referred as the revenue less costs over a period of time due to the customer satisfaction and retention ( Soderland and Vilgon, 1999 ).

Customer Relationship Management (CRM): CRM is a process designed to collect data related to customers in order to develop and maintain long-term profitable relationship with them.

Knowledge Management (KM): Knowledge management is the systematic process of creating, disseminating, and applying/ utilizing knowledge to achieve a firm’s strategic goal.

Customer Retention: Customer retention is the way of converting the new customers into the regular clients through creating greater customer value and long term customer satisfaction ( Kotler and Armstrong, 2008 ).

Customer Satisfaction: The extent to which a product’s perceived performance matches a buyer’s expectations ( Kotler and Armstrong, 2008 ).

Knowledge: In marketing, knowledge constitutes the basic tenet of the marketing concept as this is expressed by means of market orientation. In fact, this is some sort of information about the customers and competitors which is collected by the firms to take the necessary decision.

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