Client relationship marketing practices: an exploratory study of stone mining industry between B2B and B2C.

Abstract

ABSTRACT This research studies the customer relationship development and management practices of firms in Thailand’s limestone industry. This industry is relatively small (194 firms as of 2014), and primarily consists of small and medium enterprises (SMEs) serving various markets. The research objective was to understand how firms applied customer relationship management (CRM) strategies and the approaches they used to gain and maintain customers. The study used a qualitative, interview-based methodology. Nine business owners were interviewed. The interviewees represented three types of businesses, including limestone mines, business-to-business (B2B) sellers, and business-to-consumer (B2C) sellers. The findings showed that the CRM process for firms in this industry are generally consistent with the relationship development process model proposed by Dwyer, et al. (1987). In the pre-relationship stage, the firm invests relatively little in individual relationships with customers. Instead, they use a broader strategy, providing in-depth information about their products and services to all potential customers. During the exploratory stage, when customers are making initial purchases, they continue to provide information and engage in bargaining or negotiation. During the expansion stage, firms focus on encouraging customer satisfaction and loyalty by continually providing customer service quality and product quality, as well as seeking out solutions for customers. Finally, during the stable stage, firms focus on individual firm-customer relationships. This stage involves building personal relationships of trust and commitment through social and professional interactions. The implication of this study is that the Thai limestone industry does follow a standard relationship development process model for CRM.