Investigating the effect of customer relationship management on brand development in Iran's handmade carpet industry- art (study Case: Tehran and Isfahan Provinces)

New ways of marketing in world trade led to a position that customers are the market drivers. So it is necessary that new ways of marketing to be used in the trade of traditional and valuable Iranian goods. In the world of handmade carpet business, the word sale should not be used. Handmade carpets should be marketed, meaning a permanent relationship in the interest of customers. In this regard, due to the importance of customer relationship management (CRM) and brand extension (BE) for handmade carpet export, the purpose of this study is to investigate the effect of CRM on BE with an emphasis on the mediating role of brand equity in the handmade carpet industry of Iran (studied in Tehran and Isfahan provinces). This study is practical in term of purpose and based on the nature and method is descriptive-causal from the survey branch. Statistical population of the survey are all consumers and buyers of handmade carpets; given the unlimited size of the population, non-random in access sampling method was used. The number of questionnaires distributed was 215, of which 204 responded to the questionnaires.The data collecting tool is a combination of three questionnaires: customer relationship management (Leo et al., 2005), brand equity (Baily et al., 2013) and brand development (Pena & Garcia, 2017). Data analysis was done by Structural Equation Modeling (SEM) with Smart PLS2 software. The results showed that most of the paths and hypotheses were confirmed, but the effect of brand awareness, brand perceived quality and brand loyalty on BE were rejected; the highest effect was the effect of CRM on brand equity (47%) as well as brand equity on BE (89%). Among other paths, CRM has the most effect on the brand perceived quality (brand equity dimension) with an effect level of 60%.On the other hand, the brand association brand has a positive and significant effect on BE among brand equity components with a coefficient of 0.73 and t-value of 7.931. Brand equity also has a mediating role in the effect of CRM on BE, which explains brand development by as much as 47%. On the other hand, among the components of brand equity, only brand association with 66 percent has a mediating role between CRM and BE. According to research findings, CRM, along with brand equity, has played an important role in enhancing the BE of the handmade carpet industry; Therefore, the results of this research can be useful for companies and brands of handmade carpets in order to be able to communicate effectively with customers and ultimately brand development.