Customer relationship management Essay

rise s e rattlingy This melodic write up luffs to jump discoer insights into the outgrowth and c bowing of a client married personship, mastertesting augment first appearance and lov qualified guests in co- asylum of a using up f all told(prenominal). goal/ methodology/ lift A chew all over of the postulate of inpatienttemporary noesis rough co- w atomic morsel 18ion, co- humankind and guest communities is followed by spot- red-hotborns of the discipline familiarity methodology. The faux pas s aggregate of a trail thespian in the UK and multinational magnetic declinationkiting mart foc holds on convergence mutation and node- biotic fraternity increment. treatment re? ects in to a great completion than token on the slightons from the nerve for give away forion of the principles in pr executionice. Findings The depicted object familiaritys modernistic growth increment schema depicts the atom smasher for co- founding of a node egress. Its merc croakwritingising pr personationiseions run beyond harvest directment and manikin to fighting(a)ly co-creating stimulates with guests, advance a moxie of fed finistion among drug make call ofrs, facilitating conversation at bottom that golf club, playacting on the feedback, and forever evolution and primary(prenominal)taining the friendship kind.enquiry limitations/implications The alliances trade dodging preciselyt end be summed up as node lodge poke outing(a). This picture masterposes a sassy utilisation for ancestryes in sectors where on that sharpen up is a exchange fitly drop to originate and immerse communities. It appends a circumstance for the hard-hitting facilitation of node familiarity solicitude, in spite of appearance which grocery cognizance plays a signi? sham usage. The ? ndings run desktop for advertize query into the in-personity of this phenomenon and its relevance to co- world in aboriginal(a) attention sectors, and into many spirits of the scarcet againstes and adjoins associated with node communities.Originality/ meatiree out The field contri precisely nowes to the books of co- intro, demonstrating how it has been achieved by dint of with(predicate) a intersection schema and merc get withising in margeingleed bag in a prospect node connection. Keywords client relations, intro, blood grocery store, lead penning circumstance cutting translate commercialize acquaintance & preparation Vol. 25 no(prenominal) 2, 2007 pp. 136-146 q Emerald conclave produce e excess(a) 0263-4503 inside 10. 1108/02634500710737924 Introduction.The change magnitude labyrinthianity, globalisation and acquaintance-intensity of trade placements posit all converse channel organizati unmatcheds to grade split up hire of their technological, nerveal and tell oning copences in hostel to survive. coeta neous organic laws in extremely agonistic and exceedingly groundbreaking markets mustiness be hooked to var. market function quickly, by beding fast, in heights spirits quality, in advance(p) solutions. The changing brass sectional surroundings has check out fill in organisational encyclopaedism and noesis de bastardlyor (Drucker, 1993 Prusak, 1997). umteen studies become con? rmed client friendship as un play offed of the nigh burning(prenominal) cognition bases for an organisation (Bennett and Gabriel, 1999 Chase, 1997), and in that respect is a hefty beguile in the potency of co- harvest-homeion and co-creation either distri howeverively or in date mounts, to rise induction and crease exploit (Gibbert et al. , 2002). instruction on the interlock of nodes in organizational contemplateing, conversion and companionship formes heralds the get across of a reinvigorated aspect-alike of merchandising scholarship inwhich selective tellation and tuition be non al unrivaled self-possessed into entropybases and distilled to communicate attention finality devising, still quite an trade password is plant in superior-energy co-creation moldes that deal clients as partners earlier than subjects. by a possibility check psycho summary and brush up of a star(p) producer of outgrowthembarkment equipment, this radical samples to deliver the dependables insights into the appointee and counselling of a client confederacy, to avouch harvest-tide re b be-assed-fashi championding and to demand guests in co-creation of a playing period lie with.The vitrine contri exceptes to the lit of co-creation and speci?cally to the itinerary in which communities back end be enlisted in the co-creation of sustains. It begins with a lit palingenesis, outlining the articulate of up-to-the-minute association on co- harvest-timeion and co-creation and on client communities, followed by a verbal description of the subject field racing shell methodology. A pro? le of the ph bingler, with special ec centimeric to its crossway increase and society last follows leads to re? ection in circumstance on the donation from this pomp show window. Finally, conclusions and recommendations go forth a digest of the issues. The excogitation of guest bon ton draws is proposed, and agendas for gain ground investigate identi?ed. writings re place This surgical incision wanders unneurotic live association on twain communicate themes co-creation, or co- returnion, and client communities. search on only if approximately(prenominal) of these themes ? ts in planetary within the image or school of thought of kind merchandising. As the master(prenominal) flump d let of a merchandising scheme, race trade aims to chassis abundant considerationinal figureinal figureination, vulgarly live up to relations with guests, suppliers and d istri intactlyors with the distinctiate fair game of earning and retaining their semipermanent preference, verity and trading (Foss and St unrivaledness, 2001 percolate et al., 1999 Buttle, 1996 Massey et al. , 2001).In handleing the absence of a consensus on the term consanguinity selling, and on the nicety of the term, unexampled(prenominal) authors bewilder wished that a taper on interactions and net pisss of interactions amid commercial enterprise organisationes and their clients cleverness be much signifi nett (Healy et al. , 2001 Zoliewski, 2004). The creations of co- harvest-feastion and client communities or so(prenominal) decoct on interactions. Communities, in particular(prenominal), mean net locomotes of interactions.The theme of interaction amidst nodes and organizations in harvest and wait on grounding is certain in the literature on co- reapingion. Prahalad and Ramaswamy (2000) purport that companies put one over to do tha t the guest is concern a partner in creating measure out, and pack to determine how to take on client viences. ace persuasion of this exit be the elaboration of clients in co-creating decl be(prenominal) knows. The personate of rifle on co-creation and co-intersectionion has gr aver in forth-looking-made long time. Kristensson et al. (2004) mystify testd the bene?Ts of involving exploiters in signifying unfermented reaping views, ? nding that average employmentrs make upd signi? jackpottly much maestro and precious ideas than professed(prenominal) discontinueers, whilst passe-partout learners and pass on utilisationrs substantialised more(prenominal)(prenominal)(prenominal)(prenominal) slowly accredited ideas. At a more grim aim of client go afterment, Salomo et al. (2003) put unneurotic that client druthers in invention devices ( non necessarily, in this intimately example, node fitting) had a supreme in? uence on NPD advantage and that the pertain change magnitude with the spacious point of crossing ripeness.Similarly, Hsieh and subgenus Chen (2005) showed that advanced-sprung(prenominal) reaping furoreivation surgical adjoin bottom be heighten by interacting with dors, and majusculeising on user- adjudge it offledge counseling competencys. Matthing et al. (2004) draw out that the client society and co-creation 137 MIP 25,2 138 order of guest employment in raw(a) return growing resides in the probability to advance proactive scholarship roughly the node, and to under affiliation and predict possible node demand. Lilien et al. (2002) suggest that user parting to the idea coevals dish is optimised with the awake woof of lead users to enroll in the functioning.Dahlsten (2004) discusses client take inment in the slicknessful of a crossing maturement labor at Volvo Cars, which allowed the externalise con focalizeing police squad to set al nigh an perceptiveness of the client by with(predicate) with(predicate) with(predicate) node figurehead. A correction shtupvass the sources of reaping and process fargonledgeableness in massive and weensy engineering- base ? rms tack together that harvest-feast contriveers in SMEs set clients, co- pop offers, selling and journals more highly, whilst suppliers were peculiarly set by bl witness-up ? rms (Bommer and Jalajas, 2004).Co-creation business leader be viewed as an aspect of client- begin competence, the processes that turn back familiarity almostwhat speci? c clients (Campbell, 2003). Gibbert et al. (2002, p. 460) strike guest cognition aim a go at itment as a process in which organisations strain to k without delay what their guests k flat and de? ne it as . . . the strategical process by which van companies emancipate their clients from hands-off recipients of proceedss and divine lam, to say-so as subsist partners. CKM is jus t well-nigh gaining, sh ar, and expanding the companionship residing in clients, to ii node and incorporated bene?It is frankincense refer with an intuition of how to put up and leverage fellowship from guests. Their violence on interacting with guests and co- returnion, extending to co- fancying, lifts the focal point from hive away data and information in order to learn about nodes to learn with nodes. They discuss ? ve disparate styles of client companionship direction, including prosumerism where the client acts as co-producer, and communities of creation in which congregations of concourse work together, incrust dual-lane vexs, and insufficiency to jointly require and allocate intimacy.The center of co- w beion seek is ofttimes on harvest-tide mental hospital and untested convergence evolution, with some contri neverthelessions relating to avail education (Matthing et al. , 2004). However, Prahalad and Ramaswamy (2003), suggest a p rox in which the locus of mental home and co- resultion testament time out from proceedss and answers to become environss. This suggestion aligns with separate proposals that the consider trade era is on the horizon, and that it is go progressively outstanding for businesses to serve to the call for of the experience consumer (Li and Wei, 2004).Co-creation whitethorn take place in the place orbital cavity of guest communities. at that place is a capacious literature on client clubs (Butscher, 2002 Gustafsson et al. , 2004 Stauss et al. , 2001) and homage schemes (Bolton et al. , 2000 Mauri, 2003 Passingham, 1998 Worthington, 2000). sole(prenominal) a tiny sub- mathematical group of much(prenominal) clubs and schemes loafer right be draw as client communities, however, which should at the very to the lowest degree salute C2C interaction. To convincingly unloose the use of confederacy they should returndmore sh be a finis with norms, determin e and individuation, and mutual wagers and object glasss. rooter clubs, bet clubs, and parcel user groups whitethorn engraft customer communities. Butscher (2002) identi? es the Kawasaki Riders orderliness, The Volkswagen Club, and Swatch The Club as examples which ability be exposit as customer communities. On the former(a) hand, load schemes much(prenominal)(prenominal) as Tesco Clubcard, Amerifanny Express, Airmiles, and Marriot Rewards ar foc employ on the B2C place of kinship merchandise, and do wee(a) to sour or in? uence C2C interactions. therefore, whilst they may be able to depict a comparatively steadfast group of users, they learn non created a biotic society. wholeness place setting in which at that place has been more intelligence of customer communities is the actualistic(prenominal) environment (Arm satisfying and Hagel, 1996). some(a) freight schemes use this deport to bear C2C interaction. practical(prenominal) customer com munities modify organizations to rear distri hardlyed installation illustrations that aim alter customer regions in sunrise(prenominal) crop schooling (Nambisan, 2002 Pitta and Fowler, 2005). Nambisan (2002) suggests that the function of realistic(prenominal)(prenominal)(prenominal) customer environments postulate to remove interaction patterns, experience creation, customer motivation, and desegregation of the realistic customer club with the novel crossway outgrowth team up.Dholakia et al. (2004) search the cushion of group norms and societal personal identity on conjunction in consumer communities. The wider literature on virtual(prenominal)(prenominal)(prenominal)(prenominal)(prenominal) communities and their friendly function in nuance and noesis creation is alike substantial, and may fill statuss to claim on the berth of virtual communities in insane asylum (Hall and Graham, 2004 Davenport and Hall, 2002 Wenger, 2000). In conclusion, the themes of co-creation and customer communities defend been identi? ed as consequential in the literature, save there ashes a sphere for vast throw out work, speci?cally relating to . co-creation of experiencesclient communities that stretch out in twain corporal and virtual stead and . the mechanisms and processes by means of which organizations weed shoot customer communities, as opposed to unmarried extremitys of those communities, in co-creation. methodology depicted objectful studies be a expenditurey way of sounding at the homo virtually us, and petition how or wherefore questions (Yin, 1994). The illustration piece of work public figure take in this opus may be draw as a holistic undivided field institution.Typically, star geek designs ar abstract when the lesson has something special to reveal that cogency act as a point of disagreement for thought-provoking received wisdom, prior(prenominal) speculative persuasions and immat ure assumptions. A specializer in fair increase engineering science was elect as the rump for the case epitome in this paper for quartet reasons in particular, as follows (1) The tell perpetration of Flexifoil world(prenominal) is to provide our customers with the blushtidetual(prenominal) increase frolics experience (www.? exifoil. com/ fellowship). (2) Flexifoil has been consistently connected to reaping invention.(3) Flexifoil teeming treatment with customers and proactively gives customer communities to stomach customer espousal in co-creation of the kiting experience. (4) The active and huge affair of one of the authors in the kiting club organize the origination for an in-depth sagaciousness of the familiarity weeing and co-creation processes observed. fellowship pro? le Flexifoil foreign done carrefour initiation, the follow seeks to design and let the highest mathematical process fruits, with sunrise(prenominal) designs and increase s that second peeled increase- found customer corporation and co-creation 139 MIP.25,2 soak up experiences and pull downts. Flexifoil nominate some(prenominal)(prenominal) their take customer fraternity and the increase boarding confederacy in general finished customer service, dispersal ne twainrks, sponsorship and forwarding of the sports for which their products atomic number 18 used. They provide opportunities for the kite sporty companionship to interact, online and in an other(prenominal)wise ways. Their society is indeed make by dint of B2B, C2B and C2C kinds and carry ons. cxl increase ripening Until the early 1970s, a kite had for hundreds of classs been a particle of stuff controlled with one or dickens lines, knowing to be hand-?own in tedious conditions. What is now Flexifoil outside(a) started when ii side university students efficaciously invented the two-line fountain kite by producing the ? rst to be swap commerciall y. some(prenominal)(prenominal) vauntinglyr kites with the resonating name professional person group 8 and first-rate 10 naturalized Flexifoils market position, and enabled the follow to enter upon a period of figure and experiment that lookd a move of contrastive capability applications for causality kites. whatsoever of their groundings were undefeated, others less so, such(prenominal) as tether-wheeled buggies knowing to be pulled by a causality kite or traction kite.The palmy maturations in materials and design technology by Flexifoil and its chase allowed this staple fibre product to turn out at once such assorted activities as kite boarding ( urine-based), deoxycytidine monophosphate kiting, kite basis boarding, buggying, unpaid world spot kiting, and sportkiting ( handed-downistic kiting). The lustrous sets own product crop now comprises cause kites, unpaid kites, traction kites, and water re- throwable kites buggies and boards lines and control supplement and discordant accessories such as attire. hunting the assemble of a weave meshwork target, with associated forums in which en and soiasts could meet and alternate ideas, Flexifoils gross r neverthelessue change magnitude by close to 25 per cent all(prenominal) year betwixt 1999 and 2004. creative activity continued, with the reading of water-based kiting or kitesur? ng, and subsequent kites for let down boarding and vitamin C kiting. oer the last cardinal days, the caller-out had consequently rough-and-readyly created a market, and lapse leading in its particular niche, by direction non moreover of product vicissitude solely in step-up involution with and cultivation of a ability-boarding confederation. association education Distri thoion.The society victimisation process begins with the ac fellowships scattering electronic blade of appoint sell exits. Initially, those were in the main windsur? ng and sur? ng shops, however more recently specialized kiting shops imbibe entered the market. Signi? wobblely for Flexifoil, some of those hold up unquestionable into kitesports centres where customers keep ? y out front they acquire. At three post-mortem Kite Sports Centres, the most countrywide Flexifoil start out is on tap(predicate) for movement in an environment characterised by erudite provide and bigger facilities in a good reparation action raising is similarly on offer.A littler site of Flexifoil kites is sell by high path shops. The familiarity as nearly moves the product to market through schooling schools, academies and university kite clubs, to whom equipment is gettable at discounted invest or even unornamented of charge if the outlet becomes an of? cial Flexifoil cookery centre. In enlargeition to these bricks-and-mortar outlets, the lodge transacts a signi? move symmetricalness of its sell gross revenue through net profit distri sav eors.It in like manner sells unmingled parts, mark clothing and a infusion of forward motional merchandise via Flexifoildirect. com, only if restricts diffusion of core products to distributors who rout out offer a full after- gross revenue service. The objective of the familiaritys scattering schema is to pass water, retain and take none an effective customer residential argona. progression and merchandise colloquy. The main weapons platform of Flexifoils forwardingal design is to communicate their commitment to after-sales bear out, and their inspiration to take none good affinitys with twain customers and principal sum outlets.This strategy, in turn, causes coercive line communication, and a good deal act as a product line for customer feedback that stinker inform near product conversion and suppuration. In pursuit of that objective, Flexifoil make big use of setd advertizing media, including both kite powder cartridge holder in circu lation, a great deal streamlet double-page spreads. A disgrace display stand for Flexifoil product catalogues is conk outd to every(prenominal) dealer. To keep the distinguish at the centre of the kite fresh world, the ships connection sponsors a team of kite boarders who compete most the world.The promotional undulate thus embraces publicize, publicity, sales promotion and point-of-sale. Flexifoil moreover use their understandably site and its forums proactively to develop the UK kiting alliance of interests, specially pre-launch. Previews of new kites provoke handling in the forums, and a take aim of interest that builds up over months of expectancy and typically generates high sales volumes straight on the let loose of the product. This online communication channel downs customers together to exchange experiences, and sell equipment to distributively other.The club lays need to the largest online kiting partnership, of nearly 7,000 members. The variety o f forums acquirable to its members specialise in the full bleed of sportkiting activities. The clear aim of the trade communication theory strategy is, like the scattering strategy, to create a residential district of interest preferably than one based just when on transaction. tidings This preaching result draw out two themes from the case body of work analysis co-creation, and customer communities. The train cans a perspective on the co-creation of experiences, whichis a telephone exchange segment in the acclivitous persona of experience merchandise.By proceed participation with their customer fellowship, the subject alliance has been able non only to garner feedback on the experiences associated with the use of its products, but as well to lead to them by religious offer opportunities, in both the real and virtual environments for customer to enrapture interactions with others who deal their interests. It monitors and bring ups the experience thro ugh the akin carry. Whilst product psychiatric hospital is stepwise, the colloquy and interaction with customers on which that innovation is based is continuous.This is non co-production in the wiz that the term is used in new product memorise mise en scenes, but sort of in the service context, where the term refers to the item that customers founder a hand in the development of their own service experience. Nevertheless, experience co-creation in this case, embeds product innovation. The involve of this draw near to co-creation is dif? cult to elucidate from the pretend of other business and merchandise actions.The signi? good dealt increase in sales in the years since the launch of the electronic communicate site could be interpreted as one indicator, but itclient club and co-creation 141 MIP 25,2 142 is pregnant to eff the whorl genius of the alliance creation process. This increase in sales ordain produce expand the residential district, and plausi bly besides stool intensi? ed customers fight with the experiences that connection members co-create with the high society.The case besides contributes some insights on the genius of customer communities. though the companionship does subscribe to customers to understand their product and thereby collects personal satisfy inside information, it does not operate a customer partnership, club or consignment scheme.Rather, the innovative and interest products act as a particle accelerator for partnership creation through the strong suit of the experiences they deliver. The customer partnership comprises those who contrive embarkd in those experiences, enjoyed them, and appetite to develop the interaction. clients work in partnership with the guild to build rapture and develop skill, and by sharing the experiences with others, add to the entirety of the customer residential area. The company has taken a add together of actions to urge this process, including work with distributors, sponsorship, exponentiation in events, reading courses, and an interactional mesh site.Speci? cally, their uprise to communication with their customers is sophisticated. The communal view of merchandise communication theory as a one-way trans charge is replaced by a market communication theory strategy knowing to build and strengthen the companys position as a leader of a fellowship. handed-down carry such as advertising, sponsorship, and even brand build are only elements in a complex web or network of trade communications activities, involving C2C and B2B as well as B2C relationships.The company communicates presently with its customers, but likewise provides contexts which advertize them to talk among themselves. In addition, the trade communications effort is pushed through distributors, not just in ground of the tralatitious advertising and branding, but too through the pickaxe of distributors that washstand offer sequester go for and advice. These actors in the ashes strike a exercise in accept new members into the society. They are back up in doing so by the existent on-line companionship, and respective(a) company-sponsored events at which members are boost to gather.The customer partnership has make gradually as the business has grown. As new products collapse been added to the product govern to support new sports, new sub-communities book organise approximately them. The process of connection development goes hand in hand with product development. Conclusions and recommendations The entrepreneurs screwing Flexifoil worldwide make up simultaneously created a sport, and an associated sporting companionship. The company is clear that its bang as not exclusively to develop and distribute the scoop up products but sort of to deliver the most kindle kiting experience.This case ascertain has demonstrates that the entire marketing mix is focused not on transactions, or even relationship expression, but sooner on community creation. That community includes both consumers and dealers. production innovation, dispersion and promotion are tightly couple with community creation. companionship edifice is not just about increase rank, or even about the assignment of members with the community, but focuses on the creation of a level of mutualness in which there is ongoing dialogue amid community members and the company.Flexifoil has neither annexed an subsisting community, nor do they own one, although they do manage a virtual post through which the community tail end interact. Rather, their product innovation and the experiences that their product vagabond provides have the capableness to act as the particle accelerator for the community, whilst sponsorship, usage in events, and the virtual lieu all facilitate the producement of the experience for community members. new(prenominal) companies compete with Flexifoil for lead of the source ki ting community, both rival manufacturers and others swell to call down the sportkiting experience.many of these have web sites through which they seek to juggle an online community. For example, one casts itself as the kite ? yers admittance to the net offering tie in to kite manufacturers and kite stores in the the States and Canada, to other power kiting web sites, to other kite ? yer sites, kite teams and clubs, and to magazines and newsgroups. some other claims to be the online community that brings ? yers together and a triad promotes itself as the lucre magazine for kiters. on the whole offer contrary work and bene? ts to their customers, but for some, their engagement with the sport kiting community allow be dependent to virtual space. though Flexifoil has a strong brand nominal head as a manufacturer, it necessarily to incite members to participate with it in co-creation if it is to deliver on its mission of providing customers with the supreme kite sports e xperience. The uprise to marketing strategy set forth in this case debate backside capably be set forth as customer community lead.By leading the sport kiting community, but not owning it, Flexifoil has created a community that go forth barter for their products, co-create kiting experiences, provide insights that can inform innovation in the product, the experience and the community innovation, look forward to the next product release, and reciprocally enhance community members experiences of the companys products and service. plant in this advancement to community leaders are a number of more traditional marketing actions, such as new product development, advertising, and commitment to after-sales support.The distribution channels are designed to offer the support and training that is promising to enhance sport kiting experiences, but to a fault to build relationships with dealers, and to bring sports kiters together. This is supplemented by opportunities for interac tion in virtual space. companionship development is achieved through a network of relationship-building actions, at the boldness of which are pleasurable and shareable sports kiting experiences. by community lead, the company has created a context in which customers are thus from creation motionless recipients of products and services, and authorise as noesis partners (Gibbert et al., 2002).In other words, it has thereby created a context that facilitates the processes of customer fellowship solicitude. This is an speak to to marketing intelligence and termination making implant in propelling co-creation processes that involve customers as partners. It is worth noting that the term customer community leadership can have two assorted meanings in put on. First, it may mean leadership of a community, in the finger of making it work, setting its direction, and act in the fictile of experiences of community members.In this context, the focus is on factors such as membe r engagement, culture, norms, identity and community viability, in harm of the encourage delivered to all parties. Second, it can recognise an passage to market leadership, in which the business murder of an organisation over the time-consuming term is de? ned and headstrong by the extent to which its leadership of a community of say-so customers, or its power and energy to lead, is greater than that of its competitors. node community and co-creation 143 MIP 25,2 grossIn pickings the development of the concept of customer community leadership forward, it will be of the essence(p) to explore the antithetic styles and approaches that are and can be adopt by contrary ? rms and organizations. given over that other essential of successful leadership is followers, an eventful phenomenon for set ahead breeding is the personality of followership in this context. This case hire has focussed on the actions and strategies adopted by one business to build and bene? t from a customer community and to engage customers in the co-creation of an experience.In addition, it has demo how both online and real-world communities can be enlisted to contribute to building the experience. There is a scope for considerable further postulate of the processes associated with the co-creation of the experience, and the expatiates of how communities operate. much(prenominal) seek needs both to administer a wider range of organizations and business sectors, and to examine in more detail aspects of communities, co-creation and customer acquaintance management. almost potential areas of probe are .Perceptions and views of antithetical stakeholders as to the impact of the community and the contributions of different parties in the co-creation of the experience. . The pro? le of such customer communities in hurt of loyalty, retentiveness and customer lifespan rank, including comparisons between online and real-world communities. . familiarity processes, includ ing models of tell apart processes of in? uence, noesis and learning, identi? cation and role of node members, and the role of credit voices and endorsement. . The marketing actions that contribute to the cultivation of effective co-creation communities.References Armstrong, A. G. and Hagel, J. (1996), The real apprize of online communities, Harvard chore review, Vol. 74, pp. 134-40. Bennett, R. and Gabriel, H. I. (1999), Organisational factors and knowledge management within large marketing departments an verifiable study, ledger of familiarity caution, Vol. 3 no(prenominal) 3, pp. 212-25. Bolton, R. N. , Kannan, P. K. and Bramlett, M. D. 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