IX-S3

SUMMARY

FROM CAPTIVATION TO EXECUTION: THE LINK BETWEEN E-BUSINESS TECHNOLOGY AND CUSTOMER RELATIONSHIP MANAGEMENT

Jill Kickul, DePaul University
James Selden, DePaul University

Principal Topic

As more entrepreneurs evaluate and adopt electronic business (e-business) technologies for their organizations, research is needed to examine how they effectively integrate them within their business operations. With the appropriate technology and knowledge, successful e-businesses can seek out and act upon the demands of the market, differentiating themselves through customer management, relationship marketing, and community building. These are all particularly relevant given that the expanded description of electronic business includes on-line information technology and communication that is used to enhance customer service and support. The purpose of this study was to investigate the relationship between the efficiency and performance of e-businesses (e.g., customer web site characteristics) and customer relationship marketing and management (e.g., satisfaction with product and delivery promises as well as customer support).

Method

This paper examined one hundred and thirty-two software technology firms that have been independently rated in the BizRate.com customer feedback program (the age of each firm in the sample is less than 5 years old). All firms sell their software products/services over the Internet and have full online ordering capabilities. Firm ratings were based on direct customer feedback that has customers complete a survey immediately following their purchase (e.g., web site technology characteristics such as: ease of ordering, product selection, product information). A second survey, after the expected delivery date, was also given to the customers to measure product and delivery expectations and customer support. Key relationships were investigated using the multiple regression approach.

Results and Implications

In conclusion, a significant challenge for entrepreneurial ventures is their ability to recognize a highly competitive environment and proactively change how they meet customer needs and concerns while determining what matters most in e-business strategy. It is estimated that nearly three out of every four e-business ventures will fail due to the lack of technological understanding and poor business planning that does not address market and customer concerns and requirements. By examining how firms successfully adopt, integrate, and present technology and information in their e-businesses, recommendations on how entrepreneurs effectively design and plan to meet and eventually exceed customer expectations can be offered.

CONTACT: Jill Kickul, DePaul University, Department of Management, DePaul University, 1 E. Jackson Blvd., Chicago, IL 60604; (T) 312-362-6786; (F) 312-362-6973; jkickul@depaul.edu