Crm in Supermarkets

Topics: Customer relationship management, Marketing, Credit card Pages: 96 (30843 words) Published: July 1, 2013
EB 2003-02 February 2003

FOOD INDUSTRY MANAGEMENT

CORNELL
U N I V E R S I T Y

Customer Relationship Marketing (CRM) in the U.S. Supermarket Industry: Current Status and Prospects Gerard F. Hawkes
Senior Extension Associate Food Industry Management Program Department of Applied Economics and Management College of Agriculture and Life Sciences Cornell University, Ithaca, NY 14853-7801

Teaching • Research • Executive Education

IT IS THE POLICY OF CORNELL UNIVERSITY actively to support equality of educational and employment opportunity. No person shall be denied admission to any educational program or activity or be denied employment on the basis of any legally prohibited discrimination involving, but not limited to, such factors as race, color, creed, religion, national or ethnic origin, sex, age, or handicap. The university is committed to the maintenance of affirmative action programs which will assure the continuation of such equality of opportunity. Food Industry Management Program 111 Warren Hall Cornell University Ithaca, NY 14853-7801 Phone: (607) 255-5024 Fax: (607) 255-4776 @2003, Food Industry Management Program, Cornell University. All rights are reserved.

EB 2003-02 February 2003

Customer Relationship Marketing (CRM) in the U.S. Supermarket Industry: Current Status and Prospects Gerard F. Hawkes
Senior Extension Associate Food Industry Management Program Department of Applied Economics and Management College of Agriculture and Life Sciences Cornell University, Ithaca, NY 14853-7801

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Acknowledgements
This research project was made possible by the generous sponsorship of Nestle USA. The research team gratefully recognizes the vision of the leadership of Nestle USA, and especially the late John Hubbell, former president of the Nestle Sales Co., for supporting research on this critical food industry topic. This project is the result of the efforts of many people in the food industry who contributed in a wide variety of ways. Special recognition is due for the many food industry executives who shared their precious time and information through surveys and interviews. Without the vision and efforts of these industry leaders, the information in this report would not be in your hands today. Their sacrifice is the food industry’s gain. Special thanks to Dan Baron of Consumer Insights for his outstanding work with organizing and conducting consumer focus groups. Special thanks also to my colleagues in the Food Industry Management Program and, especially, to Edward McLaughlin, The Robert G. Tobin Professor of Marketing; Sandra Cuellar, research assistant; and Dahlia Reinkopf, former student assistant, for their valuable input and suggestions. Another colleague, Bill Drake, contributed greatly to this project and has my sincere gratitude for his outstanding ideas and efforts. Very special thanks to Wendy Barrett for her outstanding work and patience in formatting and designing this report, her final project before retirement after 33 years of service to Cornell University.

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Abstract
The supermarket industry has been developing customer relationship marketing (CRM) programs and strategies for over 15 years. At this point the impacts of CRM on the supermarket industry are mixed at best. Despite the potential to radically change the way supermarket business is conducted, there is also the possibility that CRM could be marginalized by supermarket companies as just another management fad. This study employed a combination of literature review, retailer surveys, interviews with supermarket and manufacturer executives, and consumer focus groups to examine CRM in the U.S. supermarket industry. Our research focused on identifying the current status of CRM programs, on the role of CPGs in those programs, and the industry-specific issues constraining the realization of full CRM benefits. This report also presents an overview of the future direction of CRM theory with perspectives on...

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