Conference Paper

Who is the Adopter? Organizational Acceptance of Customer Loyalty Programs in Supermarket Chains and the Potential Role of a Community of Practice

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Abstract

The paper presents a map of cognitions about customer relationship management and customer loyalty programs (CRM/CLPs) in USA food retailers. It shows that managers separate CRM/CLPs from their ongoing value adding effort and consider costs of CRM/CLPs critical obstacles. This is an example of failing implementation of IT systems manifesting in managerial cognition.

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This study uses monthly data on the adoption of optical scanners by sixty-three grocery chains in thirty-two large U.S. cities to identify the determinants of the rate of intrafirm diffusion. The methodology involves a two-stage approach that relates market environment characteristics to the estimated rate of intrafirm diffusion. The results indicate that firms with larger market shares adopt a new innovation (scanners) more quickly initially but diffuse the innovation through their stores more slowly than firms with smaller market shares. In addition, firms that lag competitors in the initial adoption of scanners tend to diffuse the innovation more quickly. Copyright 1992 by MIT Press.
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Two p roportional hazard models are used to investigate the differingeffects of marke t structure variables on the conditional probabilityof a firm initially adoptin g the new technology of optical scanners as the innovation spreads through the f ood store industry. During the early stage, leading firms with large average sto re size which are not members of chains and which operate in less concentrated m arkets with higher incomes and wage rates, tend to adopt scanners sooner. Later on, differences in seller concentration, market share, and size become less impo rtant as other firms follow prior adoptions. Copyright 1987 by MIT Press.
Customer Relationship Marketing (CRM in the US Supermarket Industry: Current Status andProspects. Food Industry Management Program
  • Hawkes
  • Gerard
Hawkes, Gerard F. 2003. Customer Relationship Marketing (CRM in the US. Supermarket Industry: Current Status andProspects. Food Industry Management Program Report EB 2003-02, Comell University.
Why New Technologies Fail
  • Griffith
  • L Temi
  • F Raymond
  • Lynda Zammuto
  • Aiman
  • Smith
Griffith, Temi L.; Raymond F. Zammuto and Lynda Aiman-Smith. 1999. " Why New Technologies Fail. " Industrial Management, May-June, pp. 29-34.