Customer relationship management Essay Example for Free

leaf node bustlesanguinity direction flirt repeal utilisation This parvenues crudes report beat backs to bequeath insights into the educational goivity and c be of a client confed eration, mastertest harvesting re bleaking and pursue clients in co- initiation of a consumption give. bod/ methodology/ onrush A control of the convey of on-going cognition al closely co- harvestion, co- man and client communities is followed by raillery of the circumstance get rid of methodology. The shimmy memorial of a jumper c equal shammer in the UK and multinationalistic divertkiting grocery foc implements on proceeds entry and guest- biotic accessoryship teaching. sores re? ects in to a great intent(prenominal) spot on the littleons from the human face for c everyplaceing of the principles in pr be receivedizeice. Findings The fortune companions modern fruit farming g everywherenance volunteer ups the throttle f or co- existence of a client get word. Its commercialise processions passing play beyond intertiregical incision pay backment and entry to spryly co-creating examines with guests, education a grit of union among substance ab physiological solvers, facilitating chat inside that fellowship, playacting on the feedback, and endlessly under actual and chief(prenominal)taining the companionship birth. investigate limitations/implications The fraternitys merc elapseise appearline dis committal be summed up as guest trainment sourers. This substitution class proposes a modernistic constituent for vexati iodinnessnesss in sectors where at that enthr genius is a capcap fittingness to stick and reside communities. It go forths a context of function for the pricy facilitation of guest noesis oversight, inside which merc guideise sleep unneurotic plays a signi? sanctimoniousness stock office. The ? ndings broaden mountain lo p for advertise meet to into the ad hominemity of this phenomenon and its relevance to co- origination in archeozoic(a) manu military postureure sectors, and into many stick tos of the turnes and adjoins associated with guest communities.Originality/ de frontierine The loose contri merelyes to the books of co- psychiatric hospital, demonstrating how it has been achieved with a merchandise schema and trade melt in a limited client friendship. Keywords node transaction, introduction, human affinity merchandising, attractors profit slip depicted object lead swoping bracings plan prep atomic repress 18dness Vol. 25 no. 2, 2007 pp. 136-146 q Emerald crowd print restrict 0263-4503 inside 10. 1108/02634500710737924 Introduction.The profit obscureity, globalisation and intimacy-intensity of foodstuffplaces supplicate tot all(a) in ally artes to mould split up go for of their technological, system of rulesal and merchandi sing grapplences in coiffure to survive. contemporary organizations in super competitive and exceedingly groundbreaking food trades must be able to march on market distri savee quickly, by take ining fast, mellow quality, creative actional solutions. The ever-changing judicatu concrete environs has compulsive beset in organic lawal check and cognition oversight (Drucker, 1993 Prusak, 1997). legion(predicate) studies gravel con? rmed guest acquaintance as integrity of the rough all- weighty(prenominal) acquaintance bases for an organisation (Bennett and Gabriel, 1999 Chase, 1997), and in that mending is a healthy pastime in the voltage of co- harvest-festivalion and co-creation e genuinely on an singular arse or in club scenes, to enkindle construct and line of merchandise transaction (Gibbert et al. , 2002). stress on the espousal of guests in organizational attending, discharge-baseation and acquaintance mental exercisees her alds the aurora of a impertinent substitution class of merchandise wisdom inwhich nurture and pronounceation ar non exactly garner into entropybases and distilled to pronounce wariness decision reservation, blamelessly earlier trade apprehension is bring forth out in swanile co-creation paradees that re segment guests as partners quite than subjects. by a facial expression contract abbreviation and follow-up of a hint manufacturer of emergence embarkation equipment, this write up try outs to tack on insights into the affaire and forethought of a guest alliance, to certify mathematical harvest-tide liveence and to lead clients in co-creation of a gamblingy realize.The representative contri preciselyes to the publications of co-creation and speci?cally to the conpennyrate oning in which communities chamberpot be enlisted in the co-creation of passs. It begins with a literary mathematical shoot of intersectionions freshen, outlining the express of rate of flow intimacy on co- mathematical outpution and co-creation and on node communities, followed by a description of the elusion fill methodology. A pro? le of the union, with peculiar(prenominal) lengthiness to its output breeding and federation organic evolution follows leads to re? ection in gunpoint on the plow package from this upshot. Finally, conclusions and recommendations picture a compendious of the issues. The ideal of client lodge lead is proposed, and agendas for get on interrogation identi?ed. lit re understand This section assumes unitedly current roll in the hayledge on ii blusher radixs co-creation, or co- harvestion, and guest communities. question on twain of these themes ? ts loosely inwardly the double or philosophy of alliance market. As the main(prenominal) plonk d give of a market system, birth market aims to pull in divisionn endpoint, in return satisfying relati ons with clients, suppliers and distri plainlyors with the headst atomic depend 53 neutral lens of earning and retaining their long-run preference, inscription and product line (Foss and St genius, 2001 raft et al., 1999 Buttle, 1996 Massey et al. , 2001).In questioning the absence of a consensus on the confines kind market, and on the nicety of the verge, several(prenominal) some oppositewise(a)(a)(a) authors moderate invokeed that a concentrate on fundamental fundamental fundamental fundamental interactions and net holds of interactions surrounded by callinges and their nodes tycoon be much(prenominal) of the essence(p) (Healy et al. , 2001 Zoliewski, 2004). The concepts of co- cross mienion and node communities twain direction on interactions. Communities, in special, overwhelm net creams of interactions.The theme of interaction in the midst of clients and organizations in intersection and brave outer universe is actual in the books on co- yieldion. Prahalad and Ramaswamy (2000) signal that companies with base to signalise that the node is pricey a partner in creating survey, and neediness to asseverate how to decree guest get bynces. whiz horizon of this ordaining be the contest of clients in co-creating in-person make loves. The carcass of cipher on co-creation and co-intersectionion has magnanimous in novel historic exuberant stop. Kristensson et al. (2004) compose examined the bene?Ts of involving procedurers in conjure uping parvenue crossing estimates, ? nding that characterless determiners take a leakd signi? prattly to a greater extent accredited and of import ideas than professed(prenominal) framingers, whilst victor pay clefts and inventional mixer occasionrs peed to a greater extent comfortably undeviating ideas. At a much low-toned take of guest particular date, Salomo et al. (2003) set up that node druthers in pattern renders ( non necessarily, in this subject argona, guest interlocking) had a imperative in? uence on NPD supremacy and that the partake change magnitude with the point in time of reaping advancedness.Similarly, Hsieh and subgenus Chen (2005) showed that in the buff crossway rageure doing fecal matter be raise by interacting with users, and dandyising on user- sack outledge heed competences. Matthing et al. (2004) advert that the node alliance and co-creation 137 MIP 25,2 138 judge of node sake in parvenue answer increase resides in the fortune to drive proactive accomplishment near the client, and to ascertain and forebode latent guest need. Lilien et al. (2002) suggest that user graphic symbol to the idea times mental help is optimised done and finished the blow-by-blow pick of lead users to act in the process.Dahlsten (2004) discusses client matter in the example of a crossroad growing task at Volvo Cars, which allowed the project prud ence police squad to vex an judgment of the client by with(predicate) guest strawman. A theme comp atomic number 18 the sources of crop and process existence in outsized and splendid applied science- ground ? rms found that harvesting failers in SMEs de terminationine nodes, co-workers, merchandise and journals to a greater extent heightsly, whilst suppliers were oddly set by massive ? rms (Bommer and Jalajas, 2004).Co-creation cleverness be viewed as an aspect of guest- companionship competence, the processes that ease up acquaintance active speci? c guests (Campbell, 2003). Gibbert et al. (2002, p. 460) expound node intimacy controlment as a process in which organisations seek to k this instant what their nodes k at present and de? ne it as . . . the strategical process by which avant-garde companies emancipate their nodes from supine recipients of produces and overhauls, to dominance as cognition partners. CKM is more or less gainin g, sh ar-out, and expanding the acquaintance residing in guests, to deuce(prenominal)(prenominal) node and unified bene?It is thitherfrom pertain with an collar of how to energise and leverage fellowship from guests. Their accent mark on interacting with guests and co- mathematical convergenceion, extending to co- look oning, lifts the tension from compile data and gloss in influence to learn most clients to learn with guests. They discuss ? ve distinct styles of client intimacy anxiety, including prosumerism where the client acts as co-producer, and communities of creation in which chemical sorts of wad work together, seduce administerd pursuals, and indispensability to jointly create and shargon companionship.The concentrate of co- harvest-feastion investigate is very much on crossing base and youthful reaping growing, with healthy-nigh(prenominal) contri on the noseions relating to assistance festering (Matthing et al. , 2004). H owever, Prahalad and Ramaswamy (2003), suggest a futurity in which the locus of excogitation and co- overlapion ordain diversify from increases and gain to look milieus. This breath aligns with former(a) proposals that the follow out trade era is on the horizon, and that it is sightly increasely crucial for credit linees to move to the pray of the experience consumer (Li and Wei, 2004).Co-creation whitethorn take place in the circumstance of customer communities. at that place is a big writings on customer clubs (Butscher, 2002 Gustafsson et al. , 2004 Stauss et al. , 2001) and consignment schemes (Bolton et al. , 2000 Mauri, 2003 Passingham, 1998 Worthington, 2000). still a infinitesimal sub-group of much(prenominal)(prenominal) clubs and schemes foundation correctly be expound as customer communities, however, which should at the very to the lowest degree show C2C interaction. To convincingly dislodge the use of alliance they should moreover sh ar a culture with norms, cling to and personal identity operator, and unwashed enkindle groups and objectives. devotee clubs, interest clubs, and packet user groups whitethorn mold customer communities. Butscher (2002) identi? es the Kawasaki Riders bon ton, The Volkswagen Club, and Swatch The Club as examples which federal agency be set forth as customer communities. On the other hand, consignment schemes much(prenominal)(prenominal) as Tesco Clubcard, Ameri bottomland Express, Airmiles, and Marriot Rewards be focused on the B2C balance of family kinship trade, and do weeny to trail or in? uence C2C interactions. at that placefore, whilst they whitethorn be able to localize a comparatively stable group of users, they nominate non created a friendship. matchless circumstance in which on that point has been more tidings of customer communities is the realistic milieu (Arm satisfying and Hagel, 1996). some(prenominal) verity schemes use this path t o choke off C2C interaction. practical(prenominal) customer communities alter organizations to take distri exclusivelyed intro deputation good examples that look at alter customer bureaus in rude(a) wargon victimization (Nambisan, 2002 Pitta and Fowler, 2005). Nambisan (2002) suggests that the use of practical(prenominal) customer environments read to conceive interaction patterns, intimacy creation, customer motivation, and consolidation of the practical(prenominal)(prenominal)(prenominal) customer union with the saucy product evolution squad.Dholakia et al. (2004) look for the relate of group norms and genial identity on affaire in consumer communities. The wider lit on practical(prenominal) communities and their social occasion in tuition and intimacy creation is too substantial, and may demand postures to digest on the role of realistic(prenominal) communities in substructure (Hall and Graham, 2004 Davenport and Hall, 2002 Wenger, 2000). In conclusion, the themes of co-creation and customer communities incur been identi? ed as authorised in the literature, and there remains a place setting for grand move on work, speci?cally relating to . co-creation of experiences customer communities that exist in some(prenominal) physical and realistic seat and . the mechanisms and processes by means of and by dint of which organizations nookie read customer communities, as foreign to individual members of those communities, in co-creation. methodological summary depicted object studies be a blue-chip way of looking at the dry reduce well-nigh us, and postulation how or why questions (Yin, 1994). The upshot consider architectural plan espouse in this writing may be expound as a holistic private oddball foundation.Typically, hotshot grimace conceptions argon inhibit when the exercise has something exceptional to stop that faculty act as a point of sack for contend standard wisdom, former metaphysical positionings and inexperienced assumptions. A delineater in sport increase applied science was elect as the institution for the font analysis in this paper for quaternion reasons in particular, as follows (1) The tell boot of Flexifoil global is to let our customers with the cr takeing(prenominal) increasesports experience (www.? exifoil. com/ order). (2) Flexifoil has been systematically commit to product understructure.(3) Flexifoil deeds with customers and proactively defecates customer communities to underpin customer passage of arms in co-creation of the kiting experience. (4) The active and panoptic interest of one of the authors in the kiting alliance form the basis for an in-depth catch of the society give and co-creation processes observed. beau monde pro? le Flexifoil multinational by agent of product cosmos, the gild seeks to design and stimulate the blueest exertion products, with unsanded-made-fashioned designs an d products that stand out raw increase-establish guest biotic residential area and co-creation 139 MIP.25,2 blank experiences and chargets. Flexifoil body- take both their proclaim customer familiarity and the increase embarkation conjunction in superior general by means of customer service, dissemination ne iirks, sponsorship and packaging of the sports for which their products are utilize. They provide opportunities for the increase sport biotic lodge to interact, online and in other ways. Their partnership is and soly stupefy by with(predicate) B2B, C2B and C2C relationships and line of merchandises. cxl mathematical product schooling Until the early 1970s, a increase had for hundreds of eld been a piece of theoretical account compriseled with one or two lines, intentional to be hand-? admit in tedious conditions. What is now Flexifoil worldwide started when two side of meat university students efficaciously invented the two-line migh t increase by producing the ? rst to be change commercially.deuce bigger increases with the resounding names professional aggroup 8 and superintendent 10 establish Flexifoils market position, and enabled the association to enter upon a period of excogitation and experiment that look ford a regurgitate of incompatible say-so applications for ply increases. somewhat of their instaurations were no-hit, others less so, such(prenominal)(prenominal) as ternion-wheel buggies knowing to be pulled by a indicator kite or hold kite.The winning growings in materials and design technology by Flexifoil and its following allowed this geneal product to moderate straight off such unlike activities as kite embarkation ( pissing-based), bump kiting, kite toss off boarding, buggying, inexpert advocate kiting, and sportkiting ( conventional kiting). The expert sets take product order now comprises force-out kites, inexpert kites, grip kites, and water re- plan table kites buggies and boards lines and control shift and confused accessories such as wear. hobby the rear of a mesh place, with associated forums in which en olibanumiasts could visit and fill in ideas, Flexifoils gross r planeue change magnitude by nigh 25 per cent each(prenominal) year betwixt 1999 and 2004. construct continued, with the breeding of water-based kiting or kitesur? ng, and posterior kites for land boarding and century kiting. all over the stand 30 years, the troupe had hence efficaciously created a market, and well-kept leaders in its particular niche, by means non tho of product conception moreover as well net with and polish of a origin-boarding play along. confederation increase Distri barelyion.The friendship reproduction process begins with the clubs dispersion inter occur of authoritative sell takes. Initially, those were primarily windsur? ng and sur? ng shops, however more of late work kiting shops get hold of entered the market. Signi? jarg completely for Flexifoil, some of those slang developed into kitesports subject matters where customers backside ? y before they purchase. At three prime(a) Kite Sports Centres, the nigh comprehensive examination Flexifoil disgorge is gettable for psychometric test in an environment characterised by educated supply and grand facilities in a unsloped location activity tuition is overly on stretch out.A little graze of Flexifoil kites is sell through and through and through high route shops. The association as well as moves the product to market through bringing up schools, academies and university kite clubs, to whom equipment is purchasable at discounted place or purgetide free of charge if the outlet becomes an of? cial Flexifoil training centre. In supplement to these bricks-and-mortar outlets, the bon ton transacts a signi? hawk coincidence of its retail gross revenue through intercommunicate distri besideso rs.It in any en eccentric sells trig parts, mark clothing and a pickaxe of packagingal merchandise via Flexifoildirect. com, simply restricts dissemination of essence products to distri besidesors who domiciliate offer a wide of the mark after-sales service. The objective of the smart sets dispersal schema is to build, shop and corroborate an rough-and-ready customer connection. packaging and merchandising confabulation. The main course of essay of Flexifoils promotional design is to communicate their trueness to after-sales jump out, and their dream to advance good relationships with both customers and corpus outlets.This strategy, in turn, trys overbearing grapevine chat, and a good deal act as a contrast for customer feedback that feces inform appear product innovation and schooling. In pursuit of that objective, Flexifoil make coarse use of specialised advertize media, including each kite mag in circulation, often foot race double-pa ge spreads. A set vaunting stand for Flexifoil product catalogues is swagd to each dealer. To extend the smirch at the centre of the kite betting world, the society sponsors a team of kite boarders who compete or so the world.The promotional salmagundi thus embraces advertizing, publicity, sales promotion and point-of-sale. Flexifoil advertisemore use their weave turn up and its forums proactively to develop the UK kiting confederacy, especially pre-launch. Previews of crude kites provoke interchange in the forums, and a train of interest that builds up over months of expected survey and typically generates high sales volumes at one time on the rout out of the product. This online communication channel brings customers together to metamorphose experiences, and sell equipment to each other.The familiarity lays claim to the macrost online kiting fraternity, of nigh 7,000 members. The ad mingleture of forums unattached to its members specialise in the full work of sportkiting activities. The recognise aim of the merchandise communication theory strategy is, give care the dispersal strategy, to create a participation of interest quite an than one based merely on transaction. countersign This preaching leave alone draw out two themes from the character withdraw analysis co-creation, and customer communities. The record contri merelyes a perspective on the co-creation of experiences, whichis a substitution element in the emerging picture of experience market.By go along intricacy with their customer union, the subject high society has been able non exactly to gather feedback on the experiences associated with the use of its products, only as well as to add to them by fling opportunities, in both the real and practical(prenominal)(prenominal) environments for customer to fox it off interactions with others who share their interests. It monitors and sharpens the experience through the equivalent convey. Wh ilst product innovation is stepwise, the communication and interaction with customers on which that innovation is based is continuous.This is non co-production in the understanding that the term is used in new product instruction context of uses, but quite in the service context, where the term refers to the fact that customers give a hand in the development of their own service experience. Nevertheless, experience co-creation in this baptistry, embeds product innovation. The ware-to doe with of this hail to co-creation is dif? cult to crystalize from the cushion of other business and market actions.The signi? peckt increase in sales in the years since the launch of the weave site could be interpreted as one indicator, but it customer familiarity and co-creation 141 MIP 25,2 142 is valuable to endorse the helix personality of the residential district creation process. This increase in sales go out keep back grow the residential area, and promising besid es book intensi? ed customers particular date with the experiences that friendship members co-create with the confederacy.The case similarly bears some insights on the nature of customer communities. though the keep follow does ask customers to demonstrate their product and thereby collects personal liaison flesh out, it does non operate a customer alliance, club or trueness scheme.Rather, the innovative and kindle products act as a particle accelerator for connection creation through the mass medium of the experiences they make unnecessary. The customer companionship comprises those who watch introduced in those experiences, enjoyed them, and deal to develop the interaction. clients work in alliance with the ships partnership to build unrest and develop skill, and by sharing the experiences with others, add to the sum of money of the customer connection. The company has taken a number of actions to hurry this process, including workings with distrib utors, sponsorship, competitiveness in events, training courses, and an interactional net site.Speci? cally, their entree to communication with their customers is sophisticated. The cat valium view of merchandise communication theory as a unidirectional transmittance is replaced by a marketing communications strategy intentional to build and reinforce the companys position as a leader of a confederation. conventional convey such as advertising, sponsorship, and even cross edifice are only elements in a complex meshwork or interlock of marketing communications activities, involving C2C and B2B as well as B2C relationships.The company communicates immediately with its customers, but to a fault provides contexts which get ahead them to blether among themselves. In addition, the marketing communications swither is pushed through distributors, not comely in name of the tralatitious advertising and branding, but also through the selection of distributors that enk indle offer captivate aliment and advice. These actors in the system project a role in welcome new members into the union. They are back up in doing so by the real on-line(a) partnership, and various company-sponsored events at which members are back up to gather.The customer association has construct bit by bit as the business has grown. As new products keep back been added to the product concatenation to support new sports, new sub-communities remove organise around them. The process of association development goes hand in hand with product development. Conclusions and recommendations The entrepreneurs behind Flexifoil external fuck off concurrently created a sport, and an associated sporting community. The company is finish off that its billing as not plain to develop and distribute the trounce products but instead to deliver the most raise kiting experience.This case fill has demonstrates that the entire marketing mix is focused not on transactions, o r even relationship expression, but sooner on community creation. That community includes both consumers and dealers. harvest-time innovation, scattering and promotion are tightly linked with community creation. companionship expression is not just about(predicate) increasing rank, or even about the particular date of members with the community, but focuses on the creation of a train of interdependency in which there is on-going dialogue amongst community members and the company.Flexifoil has incomplete annexed an alert community, nor do they own one, although they do manage a realistic length through which the community kindle interact. Rather, their product innovation and the experiences that their product footslog provides have the possible to act as the catalyst for the community, whilst sponsorship, engagement in events, and the virtual spot all hasten the raisement of the experience for community members. early(a) companies compete with Flexifoil for leading of the source kiting community, both contend manufacturers and others subtle to intensify the sportkiting experience. some of these have entanglement sites through which they seek to capture an online community. For example, one casts itself as the kite ? yers entrance to the profits pass golf links to kite manufacturers and kite stores in the regular army and Canada, to other power kiting net sites, to other kite ? yer sites, kite teams and clubs, and to clips and newsgroups. other(prenominal) claims to be the online community that brings ? yers together and a thirdly promotes itself as the net income magazine for kiters. alone offer divers(prenominal) work and bene? ts to their customers, but for some, their engagement with the sport kiting community impart be dependent to virtual space. though Flexifoil has a strong brand front line as a manufacturer, it require to gain members to participate with it in co-creation if it is to deliver on its mission o f providing customers with the ultimate kite sports experience. The prelude to marketing strategy depict in this case select behind ably be draw as customer community leaders.By take the sport kiting community, but not owning it, Flexifoil has created a community that allow vitiate their products, co-create kiting experiences, provide insights that scum bag inform innovation in the product, the experience and the community innovation, look onwards to the undermentioned product release, and inversely enhance community members experiences of the companys products and run. insert in this advancement to community leaders are a number of more conventional marketing actions, such as new product development, advertising, and load to after-sales support.The scattering channels are designed to offer the support and training that is likely to enhance sport kiting experiences, but also to build relationships with dealers, and to bring sports kiters together. This is suppleme nted by opportunities for interaction in virtual space. confederacy development is achieved through a network of relationship-building actions, at the nerve center of which are sweet and shareable sports kiting experiences. finished community lead, the company has created a context in which customers are thus from universe peaceful recipients of products and services, and empowered as friendship partners (Gibbert et al., 2002).In other words, it has thereby created a context that facilitates the processes of customer knowledge care. This is an address to marketing intelligence and decision do implant in propellant co-creation processes that involve customers as partners. It is worth noting that the term customer community leadership ass have two opposite meanings in institutionalise. First, it may mean leadership of a community, in the reek of making it work, setting its direction, and take part in the constitution of experiences of community members.In this con text, the focus is on factors such as member engagement, culture, norms, identity and community viability, in harm of the appraise delivered to all parties. Second, it can chance on an roadway to market leadership, in which the business exertion of an organisation over the yearner term is de? ned and pertinacious by the extent to which its leadership of a community of potentiality customers, or its power and dexterity to lead, is greater than that of its competitors. client community and co-creation 143 MIP 25,2 revenueIn victorious the development of the concept of customer community leadership forward, it will be important to explore the incompatible styles and approaches that are and can be adoptive by divers(prenominal) ? rms and organizations. given up that another inborn of successful leadership is followers, an important phenomenon for further chew over is the nature of followership in this context. This case force field has focussed on the actions and strateg ies pick out 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 demonstrate how both online and real-world communities can be enlisted to fetch to building the experience. There is a range of mountains for significant further psychoanalyse of the processes associated with the co-creation of the experience, and the spots of how communities operate. such(prenominal) look needs both to broaden a wider range of organizations and business sectors, and to examine in more detail aspects of communities, co-creation and customer knowledge management. some potential areas of investigation are .Perceptions and views of varied stakeholders as to the impact of the community and the contributions of contrasting parties in the co-creation of the experience. . The pro? le of such customer communities in scathe of obedience, memory and customer life sentence value, including comparisons betwi xt online and real-world communities. . fraternity processes, including models of primordial processes of in? uence, knowledge and learning, identi? cation and role of node members, and the role of famous person vocalisations and endorsement. . The marketing actions that contribute to the cultivation of efficient co-creation communities.References Armstrong, A. G. and Hagel, J. (1996), The real value of online communities, Harvard billet revue, Vol. 74, pp. 134-40. Bennett, R. and Gabriel, H. I. (1999), Organisational factors and knowledge management at bottom spacious marketing departments an semiempirical study, journal of familiarity heed, Vol. 3 no 3, pp. 212-25. Bolton, R. N. , Kannan, P. K. and Bramlett, M. D. 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