Fight or flight?: Understanding customer response to CRM tactics

Abstract

ABSTRACT A successful CRM strategy sometime requires the firm to unilaterally restructure parts of the exchange relationship with existing customers. This reallocation of marketing resources benefits many customers, although less profitable customer segments are likely to be adversely impacted by such policies. In this study we shed light on the marketing relationship factors that shape how consumers respond to CRM activities involving negative policy changes. The theoretical model tested showed that the level of switching costs and situational self-efficacy modify the behavioral response (acceptance, resistance, and defection) consumers have to negative policy changes.