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California Management Review
California Management Review is a premier academic management journal published at UC Berkeley
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Article Information
Customer Relationship Management: In B2C Markets, Often Less Is More
Dowling, Grahame
44
/
3
(
Spring
2002
):
87
-
104
Customer Relationship Management (CRM) is premised on the belief that developing a relationship with customers is the best way to gain their loyalty. It is argued that loyal customers are more profitable than non-loyal customers. Recently, academic researchers have questioned some of the key premises that are used to support CRM in general, and relationship marketing and customer loyalty programs in particular. This article critically examines the assumptions that underpin CRM and presents the results of research that is skeptical of its value. CRM should only be adopted after a careful appraisal of its cost-effectiveness.