Factors influencing customer relationship management (CRM) performance in agribusiness firms

Antonio Torres, Purdue University

Abstract

The objective of this study was to identify the activities/behaviors/outcomes that comprise and impact Customer Relationship Management programs of agribusinesses and identify key differences across the core set of activities/behaviors/outcomes and firm demographic variables by firm size (Small, Medium, and Large), general market segments served (Crop, Livestock, Services, and Diversified), and by primary position in the distribution channel (Direct, One-level, and Complex) of agribusinesses. The final objective was to develop a taxonomy of agribusiness firms based on the perceived performance of their CRM programs. The analysis identified three distinct groups; which were named Leaders, Emerging Leaders, and Underachievers. For each group, a narrative profile was developed that described their activities/behaviors/outcomes and highlighted differences in these core elements across firms. Data for this study was collected from middle and upper level agribusiness managers through a self-administered mail questionnaire. The response rate for the study was 11.7%, resulting in 233 usable questionnaires. Agribusiness managers were asked to provide responses to the core set of activities/behaviors/outcomes identified for this research, they are: CRM performance, CRM objectives, customer data collected or accessed, uses of customer data, approach to market, tactics used to develop and maintain customer relationships, information technology infrastructure assessment, and challenges to making the best use of customer data in an information system/database. Overall, results suggest that Large firms have a resource advantage (i.e., people, process, technology) that they exploit to achieve their high level of performance relative to Medium and Small firms. With respect to general market segments served, the Crop segment performed best, relative to Livestock, Services, and Diversified segments, while those operating units that sold directly to customer (Direct) or had one level between themselves and end-users (One-level) had the most effective CRM programs relative to operating units using a complex distribution channel. The narrative profile developed for Leaders, Emerging Leaders, and Underachievers found that those agribusiness firms that performed best had loftier goals, collected more sophisticated customer data, used an array of tactics to develop and maintain customer relationships and encountered fewer challenges to making the best use of customer data in an information system/database.

Degree

Ph.D.

Advisors

Gray, Purdue University.

Subject Area

Agricultural economics|Marketing

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