Consumer power and privacy: the changing nature of CRM

This paper briefly reviews the difficulties that privacy concerns are creating for the growth of e-business and customer relationship management (CRM). The paper introduces the concept that the changing nature of consumer power is an essential element in ensuring the success of relationship building. The paper argues that consumers should be studied using two dimensions of knowledge and attitudes towards CRM to create a privacy grid. Four segments are discussed in terms of customers’ reactions to information exchange and CRM activities. This grid is then translated into four distinct types of market situations and marketing strategies to be considered by CRM practitioners and recommendations made.

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