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Positive Word-of-Mouth Encounter Quality Attraction — Buyer and Seller perceive similarity — Buyer and Seller perceive rewards Norm Development — Buyer's expectations — Buyer's role preferences Communication & Negotiation — Seller's communication styles — Buyer and Seller self-disclosure — Seller's selling orientation Power & Justice — Buyer and Seller perceived equity — Seller's opportunistic behavior Expectations — Buyer and Seller effectiveness — Seller's expertise In the four phases of customer relationship marketing, buyers and sellers begin their relationship with an initial encounter and continue it if the satisfaction remains high. If the ongoing experience is positive, the buyer stays loyal and promotes the seller to others; if the experience becomes negative, loyalty wanes until the point that the relationship is ultimately dissolved. Relationship Quality Attraction — Buyer's perceived satisfaction from this relationship and alternatives to this relationship — Buyer's confidence Norm Development — Seller's ethical orientation Communication & Negotiation — Seller's communication quality Power & Justice — Seller's conflict resolution skills Expectations — Seller's trustworthiness Customer's Relationship Satisfaction Loyalty to Buyer Relationship Ends Complaining Behavior Passage of Time Source: "Relationship selling trajectories: a conceptual model and empirical investigation," by David Bejou (1994), published dissertation, University of Memphis. new one. At this point, the buyer switches to a different sell- er, and the relationship is dissolved. The chart above shows how various factors can cause the buyer's satisfaction with the seller to increase or decrease. If the quality of the initial encounter is good, and the ongoing relationship is strong, satisfaction and loyalty remain high. But over time, negative experiences can cause dissatisfaction and the eventual end of the relationship. CRM at the B-School When universities apply these theories of customer relation- shipmarketing to various administrative situations, the results can be profound. Virginia State University's School of Business is currently using principles of CRM in its student recruitment efforts, as well as in an initiative to reorganize the structure of school committees. Applying theories of CRMto student relationships has helped the school keep students involved fromrecruitment to post-graduation. The four phas- es ofCRMare adapted only slightly when applied to students: Exploration Stage: Recruitment. In Stage 1, the school targets prospective students through various communication meth- ods such as e-mail and direct mail. With these messages, the school promotes the benefits and rewards of its programs by making promises, raising expectations, and stoking interest. The exploration stage concludes when a student submits an application for admission and is accepted. Expansion Stage: Enrollment Management. In Stage 2, the school actively advises and orients new students, helping them regis- ter for classes, plan their course loads for their first two years, 46 BizEd MARCH/APRIL 2005 obtain financial aid, find appropriate housing, and develop peer groups through social opportunities. At this point, the school also focuses on developing and rewarding faculty, keeping them actively engaged with student retention and holding them accountable for students. The expansion stage repeats itself each time a student registers for classes. Commitment Stage: Retention and Progression. In Stage 3, the school works to ensure students' commitment to the institu- tion. Faculty and administrators continuously mentor all stu- dents, making sure they are registered for the proper third- and fourth-year programs, providing them meaningful expe- riences such as internships, and promoting joint projects with faculty. If a business school properly manages this phase, it will carry the student through a degree program and into alumni activities and development. Dissolution/Continuation Stage: Post-Graduation. During Stage 4, the school should make an excellent career placement office one of its top priorities. The graduation ceremony should affirmfor students that theymade the right choice in attend- ing this institution, while also providing them with mean- ingful recognition for their years of hard work. As students transition from graduates to alumni, the school must main- tain contact by continuously improving alumni relations through activities, recognition, and incentives. For a business school, the goal is to prolong the "continuation" phase of Stage 4 as long as possible. It's important to note that buyers and sellers can move through the expansion and commitment phases on an itera- tive basis, as long as negative experiences do not lead to dis-