Electronic Commerce Customer Relationship Manageme

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Electronic Commerce Customer Relationship Management: A Research

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Article in Information Technology and Management · April 2003

DOI: 10.1023/A:1022906513502
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Information Technology and Management 4, 233–258, 2003
 2003 Kluwer Academic Publishers. Manufactured in The Netherlands.
Electronic Commerce Customer Relationship

Management: A Research Agenda
NICHOLAS C. ROMANO, JR. Nicholas-Romano@MSTM.OKState.EDU
Department of Management Science and Information Systems, College of Business,
Oklahoma State University, 700 North Greenwood Avenue, Tulsa, OK 74172, USA
JERRY FJERMESTAD Fjermestad@ADM.NJIT.EDU

School of Management, Information Systems Department, Center for Pervasive Information Technology,
New Jersey Institute of Technology, University Heights, Newark, NJ 07102, USA
Abstract. In this paper, we approach electronic commerce Customer Relationship Management (e-CRM)
from the perspective of five research areas. Our purpose is to define a conceptual framework to examine the
relationships among and between these five research areas within e-CRM and to propose how they might
be integrated to further research this area. We begin with a discussion of each of the research areas through
brief reviews of relevant literature for each and a discussion of the theoretical and strategic implications
associated with some CRM technologies and research areas. Next we present our framework, which focuses
on e-CRM from the five research perspectives. We then present a theoretical framework for e-CRM in terms
of the five research areas and how they affect one another, as well as e-CRM processes and both performance
and non-performance outcomes.
Keywords: electronic Commerce Customer Relationship Management (e-CRM), research agenda, mar-
kets, business models, knowledge management, technology, human factors
Introduction
Electronic Commerce (EC), coined by Kalakota and Whinston [1], continues to be a

significant, pervasive issue for both enterprises and customers. Furthermore, they ar-
ticulated EC as being comprised of three relationship types: those between enterprises
and customers; those between and among enterprises; and those internal to enterprises.
In this paper we focus on relationships between enterprises and customers. However, it
should be noted that a significant amount of research in traditional Market Channels has
been done and is underway (see [2–9] for examples).
Fundamentally e-CRM concerns attracting and keeping economically valuable
customers and repelling and eliminating economically invaluable ones. Keen [10] asserts
we are on the threshold of a shift from a transaction-based economy to a relationship-
based economy. The increasing importance of fostering and managing customer rela-
tionships in EC is the motivation for this paper.
Based on our two previous studies [11,12], we suggest that there are five major non-
mutually-exclusive e-CRM research areas: e-CRM markets; e-CRM business models;
234 ROMANO AND FJERMESTAD
Table 1
Research areas by medium [12].
Research area Markets Business Knowledge Technology Human
medium models management factors
Conference 112 118 68 180 171
Journal 78 75 35 121 99
Total 190 193 103 301 270
Figure 1. Journal research areas by year [12].
e-CRM knowledge management; e-CRM technology and e-CRM human factors. Each
major area is composed of minor ones, due to the complexity and richness of e-CRM
issues researchers are currently studying and that we assert need to study in the future.
In our assessment of e-CRM research [12] we classified 369 e-CRM articles in terms
of each of the five research areas that applied. The results shown in table 1 reveal two
important characteristics of this large body of e-CRM literature.
First, table 1 illustrates that each of these five research areas is discussed within a
large percentage of the papers in the body of e-CRM literature. This lends support to
our assertion that these are important areas to the e-CRM research community at large.
Second, table 1 illustrates the relative popularities of the five research areas and thus
reveals potential gaps where additional research may be warranted. The most popular
area was technology, with 301 of the 369 (82%) papers. The second most popular topic
was human factors, with 270 of the 369 (73%) papers. Next in popularity were the
topics or business models (193, 52%) and markets (190, 51%). The least popular topic
was knowledge management (103, 28%) [12]. Clearly knowledge management is an
area that warrants further e-CRM research.
In our research assessment [12] we also coded the papers by year and medium
to look for trends in the five research areas. Figure 1 illustrates that the numbers of
journal publications in each of the five research areas has been steadily increasing, again
ELECTRONIC COMMERCE CUSTOMER RELATIONSHIP MANAGEMENT 235
lending support to the idea that these are important and emerging areas for the e-CRM
IS research community. Figure 1 also reveals that the areas of technology and human
factors have increased dramatically, while the other three are increasing at slower rates.
Again this suggests where there might be gaps in the research and opportunities for
additional research. Further, the dramatic rise in papers addressing technology along
with concomitant rises in the other areas underscores the need for e-CRM IS research.
The trends were very similar for conference publications as well over the same time
period [12].
The remainder of this paper is structured as follows. Next we discuss and explain
each of the five e-CRM research areas though a brief literature review and discussion
of some CRM technologies in key areas and their theoretical and strategic implica-
tions. Then we present our overall conceptual framework and our theoretical frame-
work of e-CRM influences. We then present some potential research questions in each
area. We then discuss e-CRM research evaluations and assessments from the perspec-
tive of mixed-methods. Finally, we offer some concluding remarks about e-CRM re-
search.
1. Research area 1: e-CRM markets
At its heart EC involves markets, which Williamson [13] explains serve as mechanisms
to allocate resources among participants. Forbes and Rothshild [14] assert that the
Internet is not merely a media form and a communication method, but is itself a market-
place instrument. Currently market resources are allocated via transactions. Traditional
transactions may be thought of in three phases: information phase, agreement phase,
and settlement phase [15]. Selz and Schubert [15] offer a continuous transaction phase
model that uses communication to connect multiple transactions across time, thus estab-
lishing relationships among customers and between customers and business enterprises.
All three EC transaction phases involve e-CRM issues that have yet to be thoroughly
explored. The communication phase, which links transactions across time, offers a rich
area for collaborative e-CRM research. EC markets that use the Internet or other plat-
forms to allocate resources among participants provide one component of the overall
framework. For example, Allstate Insurance Company [16] recently announced an inte-
grated e-CRM system that combines marketing-campaign management, sales-lead man-
agement, and call-center applications. Each application has been implemented and is
currently running. The goal is to integrate them to enable leads generated by one chan-
nel (i.e., the company’s web site or call center) to be swiftly routed to the marketing
system or to a specific sales representative for action.
The basic research issues for markets involve how best to integrate e-CRM sys-
tems so they interact both effectively and efficiently. In addition, there may be cultural
challenges and or work flow issues that need to be studied. e-CRM must begin to draw
on theory and strategies from other disciplines such as marketing and economics [17]
in order to deal with the rising demands of customers in their expectations for quality,
service, privacy, and communication with businesses [133] as well as developing its own
IS-based theories and strategies.
E-commerce has led to new market structures and IS researchers and practi-
tioners alike must consider these changes from theoretical, strategic, and technolog-
ical perspectives. Prior to the rise of Internet-based E-commerce CRM was consid-
ered an indispensable tool for gaining market share [18–20]. Relationship building
and management have become principal modern marketing approaches in both re-
search and practice [18,19] as the paradigm in marketing strategy has shifted from
Marketing Mix to Relationship Marketing (RM) [8]. The RM paradigm encompasses
many concepts including strategic alliances, brand loyalty, personal/social relation-
ships, customer partnering in product development, database management, and elec-
tronic media to actively interact with consumers [21–27]. RM emphasizes building
relationships that lead to customer retention, in juxtaposition to traditional transac-
tional marketing, in which increasing and maintaining market share are the primary
aims [8,18,19,28,29].
e-CRM researchers must take theories into account that address exchanges between
buyers and seller. For example, Dwyer and Shurr [18,28] distinguish between two types
of exchanges: Discrete transactions – typically a one-time purchase lacking relational
elements; and Relational exchanges – grounded on dyadic expectations of future trans-
actions. It is the latter that e-CRM must concern itself with most; however another
important strategic issue will be to determine which customers want each type of ex-
change [20], so that resources are not wasted on those that prefer transactions and those
that prefer relationships are not lost due to failure to fulfill such wants. Relational ex-
changes are theorized to follow a linear developmental process with five non-discrete
phases:
(1) awareness,
(2) exploration (including attraction, communication and bargaining, power and justice,
norm development, and expectation development),
(3) expansion,
(4) commitment,
(5) dissolution [30,31].
e-CRM researchers must explore whether the theory behind such a phased approach gen-
eralizes to E-commerce environments in general, or whether it applies only for specific
products, industries, or other factors.
Another important component of markets for e-CRM researchers to pay atten-
tion to in terms of theory and strategy is the shift in power from seller toward con-
sumers [32,33]. This shift in power provides many new benefits for consumers as well
as new demands. For example designers of e-CRM systems may now have to “balance”
the requirements of vendors and consumers [34], something quite different than IS of
the recent past. e-CRM systems may have to include specialized features for consumers
such as consumer decision support systems [35–37], secure and trustworthy transaction
mechanisms [38–46], to name a few.
e-CRM systems integration will change the way the work is accomplished and
how relationships are established and managed over time. There are a number ways in
which e-CRM systems integration will affect work and relationships. e-CRM systems
integration is leading to new distribution and processing capabilities that affect customer
attitudes toward industries, and remove geographic and cost barriers to world-wide dis-
tribution of goods and services; this results in a convergence of key benefits sought by
consumers across the globe [47–51]. This requires organizations to develop new strate-
gies to build and maintain effective and consistent world-wide brand images [51–55].
Integration will also mean that other factors such as logistics and rapid delivery of prod-
ucts, information, and services [56–58], cyber-intermediation [59–65], must be consid-
ered from strategic and theoretical perspectives.
As Whiting [16] points out, in the Allstate case, the call centers are focused on
efficiency and are judged on call throughput. When the integrated e-CRM system is in
place the call center workers will become revenue generators by turning calls into sales
leads and cross-selling opportunities. This one example, from among many, clearly
illustrates that e-CRM markets present a rich area for future research.
2. Research area 2: e-CRM business models
Peter Keen [10] questions whether the “e” or the “c” in ‘e’lectronic ‘c’ommerce should
be capitalized for emphasis. Keen [10] stresses the “c” as taking center stage and asserts
that what lies behind the technology of DOT COM interfaces, such as order fulfillment,
organizational business processes, and incentives, must be exploited by enterprises to
remain competitive. Keen asserts that much more is needed beyond the right web site to
be competitive, but also admits that it is not very clear just what that something else is.
Keen [10] suggests that the result has been a shift from using the term strategy to talk
about how to do business in the digital economy to using the term business model, Keen
offers six value imperatives he asserts are vital for companies to execute:
(1) Perfect one’s logistics: supply chain management; operating resource management;
win–win trading partner collaborations and electronic out-tasking.
(2) Perfect one’s long-term customer relationships: repeat business generation; cus-
tomer self-management; community collaboration; massive cross-selling and life-
time relationship-focus.
(3) Harmonize one’s channels: “seamless” links between the Internet, call centers, and
physical channels; and strengthening distribution channels, while simultaneously
strengthening your own brand.
(4) Build a powerful portal/hub brand: incentives for customers to routinely “park” on
sites; aggressive customization and personalization; and revenue generation through
hosting and selective use of give-it-away-free.com.
(5) Transform capital and cost structures: move toward negative working capital; slash-
ing general selling and administrative costs; leverage cash flow generation on mini-
mal physical balance sheet “assets”; reduce cost of capital by building a price/vision
premium in market evaluation; and use the valuation advantage to buy needed capa-
bilities at low capital dilution
(6) Build value-adding intermediation: provide a hub with reliable information and ad-
vice to link buyers with sellers; offer more efficient transaction processing between
trading partners; and build win–win relationships along an entire business chain.
These imperatives involve developing a business model that stresses e-CRM, however
little is offered as to how to meet these challenges. Research into alternative EC business
models and the e-CRM components of such models is needed to develop descriptive,
prescriptive, and predictive frameworks.
Körner and Zimmermann [66] suggest an e-CRM perspective they call the Man-
agement of Customer Relationship in Business Media (MCR-BM)-concept. They [66]
define the concept as “The Management of Customer Relationship in Business Media
comprises the design, development and application of holistic concepts in order to man-
age relationships to economically valuable current or future customers”. The MCR-BM
concept [66] considers electronic markets through open platforms, based on Klose’s [67]
media concept, as typical business media that provide independent agents with environ-
ments in which to create and exchange value as goods and services. They assert that their
MCR-BM concept therefore offers a basic framework for the design of business models
to meet the challenges posed by the digital economy. The MCR-BM model consists of
seven interrelated building blocks listed below with some key associated issues:
(1) Customer interaction: informational content and channels; value-added through
non-standard information; pull and push mechanisms; customer communication
channel choice.
(2) Customer added value: mass customization and personalization; economic incen-
tives.
(3) Customer profiling: collection and analysis of customer information; value-added
exchange for information.
(4) Trust: strong branding; sensitive use of customer profiles; security precautions.
(5) Virtual communities: information exchange about products and interests; market
segment profiling.
(6) Processing: cuts across blocks from 1 to 5; internal and external; interface and ease
of use.
(7) Controlling: cuts across all other blocks.
Their multidimensional approach focuses on the customer as an equal member within
a certain business community, rather than being the end-node of a value chain. This
focus on the customer places CRM at the core of EC business models. Their concept
is designed to measure e-CRM within EC enterprises, and thus it offers guidance for
researchers to explore e-CRM business models along several dimensions.
The business press abounds with articles concerning limited success rates of
e-CRM projects [68,69]. These articles suggest that companies fundamentally misun-
derstand their information; that is what data they have and where it comes from. This
is not unlike the classic paper by Ackoff [70], management misinformation systems,
wherein Ackoff argues that the problem is not that managers suffer from a deficiency
of relevant information, but that they more often suffer from an excess of irrelevant
information. Even more important is that Ackoff [70] stresses that managers need to
understand information systems in order to be able to evaluate and control them through
their managerial competence and expertise.
It goes deeper than this; fundamental business models are being challenged and
sometimes obliterated to make way for new ones [10,55,71–73]. One company, student
connections [74], altered its business model from providing discount cards to college
students to collecting annual fees from its members and charging business partners for
advertising their services on its web site or e-mail campaigns. An e-CRM solution now
supports the company’s effort to better understand how its products are being used and
to maximize ROI on marketing opportunities. According to Deck [74], student connec-
tions fundamentally re-thought what data they were colleting and storing. For example,
telephone numbers were not needed since students frequently change them; neither was
Information Service Provider data since students mostly use school computing facilities.
These two proposed frameworks for building EC business models both suggest
e-CRM as a central theme and offer a number of areas yet to be thoroughly explored
through IS research and development. EC business models and the associated processes
to provide back-end support behind the customer interface provide a second component
of our overall conceptual framework.
3. Research area 3: e-CRM knowledge management
Internet EC enables new data gathering strategies; such as intranets, extranets, customer
knowledge discovery algorithms, web-spiders, cookies, online registration and purchas-
ing, and avatar-populated virtual trade shows, to name a few. These strategies generate
huge amounts of data, however Upson et al. [75] suggest that much of it is useless with-
out scalable methods to collect, analyze, process, and understand it. e-CRM Knowledge
Management (KM) methods need to be explored and refined so enterprises can take full
advantage of the data they collect and transform it into useful information and value-
added knowledge for themselves and their customers.
Swan et al. [76] found issues of People Management, rather than IT development,
pose central KM constraints. They assert there has been an over-emphasis on IT manage-
ment in KM literature and that KM requires a skillful blend of people, business processes
and IT. They assert that their findings imply a central role for people management issues
within KM. Some of the issues raised in their paper that are relevant to e-CRM include:
commitment, trust, culture, and the social-embeddedness of knowledge. The latter has
important implications for e-CRM, because unlike information, knowledge is embed-
ded in the meanings and understandings of people and knowledge creation occurs in the
process of social interactions [76–83]. This illustrates the importance of relationships,
shared understandings, and attitudes and behavior related to knowledge formation and
sharing within groups. Managing customer relationships within social interactions for
knowledge creation may emerge as a critical area within EC.
The problem is that companies have a much greater ability to collect customer
information than to provide meaningful value in return [84,85]. In Europe, where privacy
laws are stricter than in the US, there is a strong desire by consumers to receive value in
return for divulging information [86–93]. Research into e-CRM KM will be critical in
resolving the developing conflict between EC consumers and businesses.
Many organizations build data warehouses consisting of customer data (demo-
graphics on customers and potential customers), customer activity (buying and browsing
activity), and product data (product line information and performance) and call this KM.
In essence KM is a process that consists of transferability, aggregation and sensemak-
ing [94]. One important point is to find ways to leverage the information contained in
the data warehouse and turn it into value. Nunamaker et al. have argued for the new
concept of Intellectual Bandwidth of an organization as “its ability to bring knowledge
to bear on the task at hand. It is the product of the organization’s ability to assimilate
available information, and the ability of its available people to collaborate. Informa-
tion technology and collaborative technology both can enhance the Intellectual Band-
width of the organization. This model assumes the availability of significantly more
information than an individual could reasonably assimilate” [95,96]. KM, in terms of
elicitation, collection, processing, analysis, understanding, and the return of value to
customers provides a third component of the overall framework that needs to be studied
further.
4. Research area 4: e-CRM technology
Keen [10] stressed that technology is important in EC and the preferred medium is voice.
New technologies will soon change the way customers interact with business enterprises
and other customers in EC relationships. Virtual environments [97–102] are being de-
veloped to support interaction and information exchange through integrated communi-
cations channels that simulate real world interactions and relationships. Researchers in
Finland and Hong Kong are working with Nokia on small palm top devices for EC [103].
Which new interface and device technologies will emerge as the winners, and which will
fail miserably, may depend heavily on issues related to e-CRM. Several studies have
looked into how interfaces affect online consumer behavior and the results have been
mixed. As new technologies emerge for mainstream use in EC it will be important to
assess their efficacy in relation to e-CRM.
Parasuraman and Grewal [104] suggest that technology is likely to be the major
force in shaping customer interactions in the future. They also recommend several key
research questions:
(1) What will be the effects of technology on service quality (reliability, responsiveness,
assurance, empathy, tangibles)?
(2) How will demographics interact with technology?
(3) Is customer loyalty altered when interacting with technology compared to employ-
ees?
The number of current technologies for internet-based e-CRM is growing rapidly.
Romano et al. [105] identify some 20 different technologies that could be used for
e-CRM (see table 2). They [105] also develop an RM and CRM IT classification scheme
from the consumer’s perspective based on how consumers communicate to develop and
maintain relationships via three specific levels of participation along a continuums rang-
ing from passive to interactive. They define three types of RM and CRM technologies as
passive, active, and interactive, based on the role the consumer plays in the communica-
tion process [105]. Further research is needed to explore how these specific technologies
and the three levels affect and mediate e-CRM.
Table 2
Emergent technologies for e-CRM (adapted from [105]).
Passive
Cookies
Chat rooms
Bulletin boards and fan clubs
Mailing lists
News groups
Observation studies through virtual reality and simulated environments
Product-related discussion groups and lists
Active
Chat rooms (hosted by Seller)
Bulletin boards (hosted by Seller)
Forums (hosted by the Seller)
Internet surveys
Product-related discussion groups and lists
Recommender software
Interactive
E-mail
Forums
Online focus groups
Interactive online interviews
Survey panels
Auctions
Online trade shows
Shopping agent
While this list is not exhaustive, and does not include the richer media technologies
such as audio and video, it is illustrative of the large number and types of technologies
that are available for e-CRM research and practice. Some of the same theories that ap-
plied to the human factors, and discussed in detail in that section of the paper, aspects of
e-CRM also apply to the technology choices and strategies. Clearly there is conceptual,
theoretical, and practical research in the area of e-CRM technologies that remains to be
carried out.
Further research into technology associated with e-CRM will reveal new knowl-
edge that will help both customers and businesses engaging in EC. The consideration of
these and other technologies as they are related to e-CRM offers the fourth framework
component.
5. Research area 5: e-CRM human factors
Behavioral, affective, and attitudinal factors should play a major role in e-CRM.
A number of studies have looked at many different human factors related to e-CRM
(see [110–118] for a few examples). This may be turn out to be the richest and most inter-
esting area for research in e-CRM. Group Support Systems (GSS), computer-supported
cooperative work and other research areas have shown that computer-mediation has
changed the way humans interact with one another when they are working togeth-
er [119,120]. From the customers point of view EC changes how humans interact to
spend money and acquire value in return. This area will require new and different re-
search methods and questions.
The behavioral aspect of e-CRM deals with virtual communities and interactions
among customers and between customers and enterprises. Dyson [121] has suggested
that scale economies may be less important on the Internet and advertisers have sug-
gested that there is no difference between a little kid and a major corporation if they
both have a web site. Gallaugher [122] questions the conventional wisdom that size
doesn’t matter on the Internet and finds that consumers want to join sites with the largest
communities in order to benefit from the interaction and exchange of information. The
issues of customer behavior in EC are becoming more complex as applications increase
in functionality and more markets go online. Bellman et al. [123] found that typical
marketing demographics were not good indicators of online buying behavior. There are
a large number of behavioral factors to be explored in relation to e-CRM.
The affective component of e-CRM relates to what Selz and Schubert [124] de-
scribe as an emotional customer experience. Customer emotional experiences can be
either positive or negative in directionality. The emotional experience will have effects
on a number of issues central to the human component of e-CRM such as: satisfac-
tion, trust and confidence, commitment, willingness to interact and share information,
willingness to purchase, and attitudes and opinions. The customers affective experience
will play a major role in e-CRM and needs to be explored along a number of dimen-
sions.
Attitudes and opinions are extremely important in relation to e-CRM. Ho and

Wu [125] explain that Cyber Shopping Stores (CSS) present and even sell to customers
virtual products, which they need not have in inventory, by displaying only images.
The web offers opportunities to market products through multimedia presentation ca-
pabilities such as animation, audio, and video. Such complex multimedia stimuli are
perceived through the senses differently than verbal and written communication stimuli.
Giner-Sorolla et al. [126] assert that interpretation of evaluations as responses to most
stimuli in the environment necessitates presentation of stimuli similar in form to objects
perceived through the senses. Romano et al. [127] demonstrated that new techniques
can enable marketers to gather customer information anonymously through free form
comments. Understanding how consumers think and feel about products, companies,
and brands at a very detailed level may provide competitive advantage in EC markets.
Measuring attitudes and opinions in EC will require new techniques and instruments and
there is a great deal of research yet to be done in this area.
One critical area involves trust, risk, and privacy. Trust is not a new concept and all
business transactions require some level of trust to be completed [27]. However, trust be-
comes significantly more important in electronic sales channels and it has been argued
that this importance will continue to increase [128]. While a number of models have
been developed to classify trust in electronic commerce environments [41,129–141], lit-
tle actual testable theory has been developed. e-CRM researchers may need to consider
theories from referent disciplines such as the “Commitment-Trust Theory of Relation-
ship Marketing” [27] or develop more robust, testable IS theories that go beyond classi-
fication and typology.
5.1. Commitment-trust theory of relationship marketing
This theory implies the Key Mediating Variable (KMV) model of Relationship Mar-
keting (RM), which focuses on one party in the relational exchange and that party’s
relationship commitment and trust. It hypothesizes that relationship commitment and
trust are key constructs, and positions them as mediating variables between five im-
portant antecedents (relationship termination costs, relationship benefits, shared values,
communication, and opportunistic behavior) and five outcomes (acquiescence, propen-
sity to leave, cooperation, functional conflict, and decision-making uncertainty). What
is unique about the theory is that it takes a cooperative perspective, rather than the more
competitive perspective that most of the work in relationship marketing assumes. Busi-
ness ethicists have also stressed that competition actually required cooperation:
“However competitive a particular industry may be, it always rests on a foundation
of shared interests and mutually agreed-upon rules of conduct, and the competition
takes place not in a jungle but in a society that it presumably both serves and de-
pends upon. Business life, unlike life in the mythological jungle, is first of all fun-
damentally cooperative. It is only with the bounds of mutually shared concerns that
competition is possible. And quite the contrary to the everyone for himself metaphor,
business almost always involves large cooperative and mutually trusting groups, not
only corporations themselves but networks of suppliers, service people, customers,

and investors.” (Emphasis in original) [142]
This theory may offer useful guidance for the development of IS-based theories for
e-CRM or it may prove not to be generalizeable beyond traditional marketing environ-
ments. Clearly both trust and commitment will be important variables and constructs for
e-CRM researchers and practitioners to consider in terms of IS design and implementa-
tion.
Firms that move into e-CRM must consider a number of different technolo-
gies, policies and strategies concerning trust including: organizational privacy pol-
icy [111,143,144], third party privacy seals [38,145] (e.g., TRUSTe), information dis-
closure seals (e.g., WebTrust Seal), reputation and brand building activities, guarantees,
return policies, reliability seals, security seals (e.g., VeriSign), and site quality [128,137].
Determining what roles each or any of these will play in e-CRM and which ones will be
successful for building trust and commitment in relationships will require a significant
amount of research.
Interactivity is also another area that is becoming important for e-CRM market re-
search and practice. This involves communication between consumers and businesses
and among consumers. This may be where the most interesting and exciting new tech-
nologies arise. While there has been suggestions for research into interactivity, some
models developed, and studies of various factors undertaken by both IS and market-
ing researchers [21,36,146–155], little solid testable theory has been developed and few
existing theories have been applied. e-CRM might benefit from using theories such
as Habermas’ Communicative Theory of Action [106,107], and Social Presence The-
ory [108,109]. Each of these is briefly discussed in terms of explanation and how e-CRM
research might benefit from employing the theory.
5.2. Habermas’ communicative theory of action
This is one of several Critical Social Theories [106,107] of communication richness that
serves as an alternative perspective from the traditional positivist Information Richness
Theory (IRT) [156] and the occasionally employed interpretivist perspective [157,158].
What differentiates CST from the other two perspectives is that the communication re-
ceiver can critically reflect on the content of the message and thereby analyze and detect
distortion [106,107]. CST may provide better explanations of the relative effectiveness
of different communications media [107]. For e-CRM researchers and practitioners alike
alternative theories, such as CST, offer ways to study communication media in context
and thus explore additional variables such as personal involvement, product types, prior
consumer knowledge, and interactions among contextual factors that the other two per-
spectives do not [107]. The ability to study communication in context may lead us to
consider and discover alternative strategies for e-CRM that might otherwise be over-
looked or too easily dismissed.
5.3. Social presence theory
Social Presence (SP) refers to the degree to which media enable a communicator to
establish a “personal connection” with others, clearly something that could lead to an
improved relationship. SP is operationalized through the use of semantic differential
scales along a continuum from sociable, warm, and personal to unsociable, cold, and
impersonal [159]. Different media types, such as a letter, telephone, multi-speaker au-
dio, video, and face-top-face support different levels of SP [109]. Media that are “high-
presence” will be rated by participants in communication exchanges toward the social
end of the SP continuum, while those that are “low-presence” will be rated toward the
unsociable end [159]. Rice [108] has asserted that differences in the level of SP media
can support may be linked to limitations the media place on communication of non-
verbal cues. This is an area where e-CRM researchers can explore how different media
and different uses of the same media affect how consumers feel and think about the
nature and quality of their relationships. Experimental and observational studies of the
level of SP could help to determine which strategies are best for relationship develop-
ment and management under certain conditions and in certain markets. This is a rich
area for e-CRM research.
Finally in such a rich communication and interaction environments is might be that
qualitative approaches such as Action Research (AR) [160–163], and may provide useful
insights into e-ECRM interactivity. Each of these is briefly described.
5.4. Action research
AR is “a spectrum of activities that focus on research, planning, theorising, learning,

and development . . . a continuous process of research and learning in the researcher’s
long term relationship with a problem” [160]. AR also usually involves the processes of
“improvement” and “involvement” [164]. AR IS research that employs AR typically in-
volves researcher intervention in an organizational core business process to improve the
process and to generate novel and pertinent knowledge from the experience [165]. There
are two different “versions” of AR: “classical” and “emergent”. Lau [161] describes the
two as follows: classical AR focuses on changing information systems related to prac-
tice; while emergent AR focuses on changing social practice within a socio-technical
system or technological innovation. Either version could be used to study e-CRM; how-
ever it seems that the emergent perspective may be more useful to study the communi-
cation that takes place between business personnel and consumers. AR offers a possible
avenue for intervening through iterative prototyping of e-CRM systems, interfaces, and
processes over time to learn from the experience of actual consumers and business per-
sonnel. In this way theory may emerge through out the study through discovery and
experience.
Theories of usability will have to be extended to included newly emerging
factors such as web site accessibility [166–174] and web site appeal or visibility
[146,175,176]. Although models such as TAM [177,178] have been extended for the
web [179], perhaps new theories or extensions will be required for consumer behavior
[112,115,116,180–182], interactivity, and accessibility. IS research in these areas is just

beginning and there is significant work yet to be done to test and extend existing theory
and develop new IS-based theories.
6. The e-CRM model
We assert that much as Keen [10] and Körner and Zimmermann [66] stress, the five re-
search areas are not mutually-exclusive and in fact influence one another and the process
and outcomes of e-CRM research and practice. Figure 2 presents our high level concep-
tual framework based on the five areas.
It illustrates several important notions about e-CRM. First, all five of the research
areas influence e-CRM research and practice. Second some areas are more closely re-
lated to each other than to others. For example, markets are most likely influenced
by and have more influence on human factors and business models, than knowledge
management or technology [55,71–73,124,183]. Similarly, human factors are more in-
fluenced by technology and markets, than by business models or knowledge manage-
ment [110,184–189]. In reality all of the areas influence each other directly or indirectly
in some way. While this model is instructive, it does not consider the process or the
outcomes of e-CRM research and practice.
Figure 3 presents our input-process-output model that serves as a theoretical frame-
work for the study of some of the variables that we posit influence e-CRM processes and
outcomes. Such a framework is useful because the areas and associated constructs, vari-
ables, and measures that can be derived from them can serve to guide future research
into e-CRM. Adoption of such a framework by researchers can enable the e-CRM com-
Figure 2. e-CRM research framework.

munity to compare and contrast the results of different studies and to build a cumulative
tradition of research that over time may reveal patterns and common findings.
The model consists of five input variables, representing each of the five areas, and
e-CRM processes and outcomes. The combination of these five input variable categories
captures the human participation, economic environment, strategic considerations, tech-
nical infrastructure, and intellectual capital components of e-CRM. e-CRM processes are
continuous and evolutionary in nature, just as are the relationships they attempt to foster
and manage for mutual gain. Feedback loops in figure 3 illustrate that e-CRM outcomes
can result in learning for both customers and enterprises. Both types of outcomes – per-
formance and non-performance – are important. Non-performance outcomes may have
significant negative or positive impacts on performance outcomes, much as they have
been shown to affect outcomes in GSS research [190].
These general variable categories are consistent with models presented in other
areas of IS research such as GSS and KM [94,97,119]. Together these input variables
define both the human potential and the technical infrastructure for developing e-CRM
processes to achieve valuable outcomes. The e-CRM process is continuous and evolu-
tionary and consists of organizational members and individuals from outside the orga-
nization using e-CRM technologies to establish, develop, and maintain important suc-
cessful business relationships, which are the outcomes of the process that are relevant to
e-CRM. Within each component of the model a list of example concepts is provided to
be illustrative and not exhaustive.
We believe that these five fundamental areas and the influences they have on one
another and e-CRM processes and outcomes encompass some of the most important ar-
Figure 3. Model of e-CRM influences.

eas for e-CRM research. We assert that this model can stimulate researchers to consider
important research questions and design additional theoretical and conceptual models
and empirical studies to constructively extend the sub field of e-CRM.
One last point that we think is important to mention is that e-CRM assessment
should be done from both process and outcome perspectives. There is a strong body of
literature that emphasizes the importance of mixed-method evaluations for IS research
projects [191–200]. We assert that e-CRM researchers should plan to assess research
projects through combined process and outcome evaluations. The outcome evaluation
should be mixed-method and measure both performance-based and non-performance-
based e-CRM outcomes. “Beyond assessing whether a treatment is effective, we need
to understand why it is effective if we are to learn . . . how treatments might be im-
proved” [196]. Process and outcome evaluations are not competing, but complementary,
such that process evaluation increases the interpretability of the results of the outcome
evaluation.
Researchers [194,201–203] have suggested the use of mixed-method designs that
include both qualitative and quantitative evaluation methods. For the purpose of studying
e-CRM, we suggest that researchers consider the use of a mixed-method study with an
expansion intent. This multitask design was first proposed by Cook [204] and includes
multiple components with the objective of expanding both scope and breadth. This
method is commonly employed by using qualitative methods to measure processes and
quantitative methods to measure outcomes. Although there has been some debate as
to whether mixed-method designs using both qualitative and quantitative methods are
meaningful the recent trend is toward a combination approach [205–207].
7. Conclusion
e-CRM is a research topic on which there is much literature [11,12,208], but no over-
arching framework to guide and focus IS research in this area has yet emerged. We
have presented research questions, constructs, variables, and topics derived from our
framework in figure 2, from our model of influences in figure 3, and from an ex-
haustive literature review in the area [11,12] to illustrate the vastness of the e-CRM
research domain and stimulate researchers to ask more meaningful research questions
and study more useful relationships within and among these five areas. Thus, the is-
sues we have raised have both theoretical and practical significance, and reflect a useful
starting off point for e-CRM researchers. The specific variables in each category of our
framework are not exhaustive, but reflect factors what the literature suggests are most
likely to be relevant to e-CRM research and implementation. Research questions can
be raised according to the major framework components. In this paper, we propose a
research framework for e-CRM composed of five underlying research areas and a model
of how these five areas influence one another and both the process and outcomes of
e-CRM.
The unique contribution of this paper is its focus on e-CRM research from an IS
perspective. The research framework provides a foundation for important questions to
study, and points to key constructs whose operationalization will add value to this re-
search area. The integration of the five research areas provides a novel approach to
examine the emerging area of e-CRM. Finally, the notions of e-CRM processes and
outcomes being affected by the five research areas provides a direction for theory devel-
opment and empirical study in both lab and field settings that may yield meaningful and
useful results with both theoretical and practical implications.
Acknowledgements
This research was partially supported by the New Jersey Science Commission through a
grant to the New Jersey Center for Pervasive Information Technology.
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Electronic Commerce Customer Relationship Management: A Research

Article in Information Technology and Management · April 2003

Nicholas Romano Jerry Fjermestad

116 PUBLICATIONS 2,111 CITATIONS

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Electronic Commerce Customer Relationship

JERRY FJERMESTAD Fjermestad@ADM.NJIT.EDU

Electronic Commerce (EC), coined by Kalakota and Whinston [1], continues to be a

Figure 1. Journal research areas by year [12].

1. Research area 1: e-CRM markets

2. Research area 2: e-CRM business models

3. Research area 3: e-CRM knowledge management

4. Research area 4: e-CRM technology

5. Research area 5: e-CRM human factors

Attitudes and opinions are extremely important in relation to e-CRM. Ho and

5.1. Commitment-trust theory of relationship marketing

only corporations themselves but networks of suppliers, service people, customers,

5.2. Habermas’ communicative theory of action

5.3. Social presence theory

5.4. Action research

AR is “a spectrum of activities that focus on research, planning, theorising, learning,

[112,115,116,180–182], interactivity, and accessibility. IS research in these areas is just

6. The e-CRM model

Figure 2. e-CRM research framework.

Figure 3. Model of e-CRM influences.

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