242 JOURNAL OF SMALL BUSINESS MANAGEMENT Journal of Small Business Management 2005 43(3), pp. 242–256 Customer Relationship Management: A Comparative Analysis of Family and Nonfamily Business Practices* by Marjorie J. Cooper, Nancy Upton, and Samuel Seaman It has been reported that family businesses perceive excellent customer service as critical to the future of their businesses. However, little research into the customer relationship management (CRM) practices of family businesses has been performed. In this study, we examine CRM implementation among 82 family and 370 nonfam- ily firms. Family and nonfamily businesses report similar attitudes toward the impor- tance of CRM, their knowledge of CRM, and their success when they do implement it. However, using a logit regression model, we find that the actual implementation strategies of family businesses are significantly different from those of nonfamily busi- nesses. These results remain constant when controlling for size and industry sector. Introduction Several authors have suggested that family businesses are in a unique posi- tion to leverage relationship building into a sustainable competitive advantage (Ashley-Cotleur and King 1999; Ward 1997; Hart and Stevenson 1993). Quick customer response, an obsession with a quality product or service that bears the family name, and a genuine desire to provide outstanding customer service are the bases for developing strong customer relationships (Hoover and Hoover 1999; Poza 1995). Moreover, anecdotal evidence suggests that family businesses that can create and maintain superior customer relationships enjoy competitive advan- tages associated with customer loyalty, perceptions of trustworthiness, and good- will (Biberman 2001; Stone 2000). *The authors wish to express their thanks to Kurt Knapton and e-Rewards®, who con- tributed valuable resources and time, and to the Hankamer School of Business for contribut- ing sabbatical support to make this study possible. Dr. Cooper is professor of marketing at Baylor University. Her research interests include customer relationship management and implementation. Dr. Upton is Streich Professor of Family Business at Baylor University. Her research inter- ests are in the area of family business growth and management. Mr. Seaman is professor of quantitative business analysis and graduate statistics at Baylor University and has research interests in the areas of applied linear models and categorical data analysis.