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dc.contributor.authorHomburg, C
dc.contributor.authorDroll, M
dc.contributor.authorTotzek, D
dc.date.available2014-05-22T00:30:36Z
dc.date.issued2008-09-01
dc.identifierhttp://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000259274400008&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=d4d813f4571fa7d6246bdc0dfeca3a1c
dc.identifier.citationHomburg, C., Droll, M. & Totzek, D. (2008). Customer prioritization: Does it pay off, and how should it be implemented?. JOURNAL OF MARKETING, 72 (5), pp.110-130. https://doi.org/10.1509/jmkg.72.5.110.
dc.identifier.issn0022-2429
dc.identifier.urihttp://hdl.handle.net/11343/30192
dc.description.abstractIt seems to be common sense that to increase profits, firms should prioritize customers (i.e., focus their efforts on the most important customers). However, such a strategy might have substantial negative effects on firms’ relationships with customers treated at a low priority level. Prior research does not indicate satisfactorily whether and how customer prioritization pays off. Moreover, although customer prioritization may be strongly present in firms’ marketing strategies, firms frequently fail to implement such a strategy. Therefore, it is also important to investigate empirically by which means firms can facilitate implementation. The authors address both issues and conduct a cross-industry study with 310 firms from business-to-consumer and business-to-business contexts together with two independent validation samples. The results show that customer prioritization ultimately leads to higher average customer profitability and a higher return on sales because it (1) affects relationships with top-tier customers positively but does not affect relationships with bottom-tier customers and (2) reduces marketing and sales costs. Furthermore, the ability to assess customer profitability, the quality of customer information, selective organizational alignment, selective senior-level involvement, and selective elaboration of planning and control all positively moderate the link between a firm's prioritization strategy and actual customer prioritization.
dc.languageEnglish
dc.publisherSAGE PUBLICATIONS INC
dc.subjectMarketing
dc.titleCustomer prioritization: Does it pay off, and how should it be implemented?
dc.typeJournal Article
dc.identifier.doi10.1509/jmkg.72.5.110
melbourne.peerreviewPeer Reviewed
melbourne.affiliationThe University of Melbourne
melbourne.affiliation.departmentManagement and Marketing
melbourne.source.titleJournal of Marketing
melbourne.source.volume72
melbourne.source.issue5
melbourne.source.pages110-130
dc.description.pagestart110
melbourne.publicationid142088
melbourne.elementsid321111
melbourne.contributor.authorHOMBURG, CHRISTIAN
melbourne.internal.ingestnoteAbstract bulk upload (2017-07-24)
dc.identifier.eissn1547-7185
melbourne.accessrightsThis item is currently not available from this repository


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