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Article
Publication date: 13 March 2024

Carla Ramos, Adriana Bruscato Bortoluzzo and Danny P. Claro

This study aims to capture how the association between a multichannel relational communication strategy (MRCS) and customer performance is contingent upon such customer…

Abstract

Purpose

This study aims to capture how the association between a multichannel relational communication strategy (MRCS) and customer performance is contingent upon such customer performance (low- versus high-performance customers) and to reconcile past contradictory results in this marketing-related topic. To this end, the authors propose and validate the method of quantile regression as an unconventional, yet effective, means to proceed to that reconciliation.

Design/methodology/approach

This study collected data from 4,934 customers of a private pension fund firm and accounted for both firm- and customer-initiated relational communication channels (RCCs) and for customer lifetime value (CLV). This study estimated a generalized linear model and then a quantile regression model was used to account for customer performance heterogeneity.

Findings

This study finds that specific RCCs present different levels of association with performance for low- versus high-performance customers, where outcome customer performance is the dependent variable. For example, the relation between firm-initiated communication (FIC) and performance is stronger for low-CLV customers, whereas the relation between customer-initiated communication (CIC) and performance is increasingly stronger for high-CLV customers but not for low-CLV ones. This study also finds that combining different forms of FIC can result in a negative association with customer performance, especially for low-CLV customers.

Research limitations/implications

The authors tested the conceptual model in one single firm in the specific context of financial services and with cross-sectional data, so there should be caution when extrapolating this study’s findings.

Practical implications

This study offers nuanced and precise managerial insights on recommended resource allocation along with relational communication efforts, showing how managers can benefit from adopting a differentiated-customer performance approach when designing their MRCS.

Originality/value

This study provides an overview of the state of the art of MRCS, proposes a contingency analysis of the relationship between MRCS and performance based on customer performance heterogeneity and suggests the quantile method to perform such analysis and help reconcile past contradictory findings. This study shows how the association between RCCs and CLV varies across the conditional quantiles of the distribution of customer performance. This study also addresses a recent call for a more holistic perspective on the relationships between independent and dependent variables.

Article
Publication date: 27 June 2023

Kessara Kanchanapoom and Jongsawas Chongwatpol

Customer lifetime value (CLV) is one of the key indicators to measure the success or health of an organization. How can an organization assess the organization's customers'…

Abstract

Purpose

Customer lifetime value (CLV) is one of the key indicators to measure the success or health of an organization. How can an organization assess the organization's customers' lifetime value (LTV) and offer relevant strategies to retain prospective and profitable customers? This study offers an integrated view of different methods for calculating CLVs for both loyalty members and non-membership customers.

Design/methodology/approach

This study outlines eleven methods for calculating CLV considering (1) the deterministic aspect of NPV (Net present value) models in both finite and infinite timespans, (2) the geometric pattern and (3) the probabilistic aspect of parameter estimates through simulation modeling along with (4) the migration models for including “the probability that customers will return in the future” as a key input for CLV calculation.

Findings

The CLV models are validated in the context of complementary and alternative medicine (CAM)in the healthcare industry. The results show that understanding CLV can help the organization develop strategies to retain valuable customers while maintaining profit margins.

Originality/value

The integrated CLV models provide an overview of the mathematical estimation of LTVs depending on the nature of the customers and the business circumstances and can be applied to other business settings.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 15 January 2024

Thamaraiselvan Natarajan and Deepak Ramanan Veera Raghavan

Building on the relationship marketing and stimulus-organism-response (SOR) theory, the purpose of this paper is to study the impact of the integrated store service quality (ISSQ…

Abstract

Purpose

Building on the relationship marketing and stimulus-organism-response (SOR) theory, the purpose of this paper is to study the impact of the integrated store service quality (ISSQ) on the omnichannel customer lifetime value (CLV). The mediating role of customer commitment (affective, normative and continuance) and relationship program receptiveness with the moderating role of customer relationship proneness were relied upon to better understand the omnichannel customer profitability metric (CLV).

Design/methodology/approach

The study is descriptive and relies upon the cross-sectional data collected using the self-administered structured questionnaires from 785 omnichannel shoppers. A purposive sampling technique was performed in the study. Structural equation modeling was performed using the SMART-PLS 4.0 software to analyze the data.

Findings

The results indicate that omnichannel customer commitment (affective, normative and continuance) differentially mediates the relationship between ISSQ and relationship program receptiveness, subsequently impacting the omnichannel CLV. The customer relationship proneness significantly and positively moderated the relationships between different dimensions of customer commitment and relationship program receptiveness.

Research limitations/implications

The study relied upon the cross-sectional data from the Indian population aged above 18 years for testing the proposed model. Further studies could test the model across different populations to generalize the study results.

Originality/value

This study addresses the need to investigate the omnichannel retail store customer profitability and their relationship performance with the store. By testing the customer relationship management model in the omnichannel retail store context, this study is the first to show that ISSQ will impact the customer profitability and relationship performance metric (CLV) through omnichannel customer commitment and relationship program receptiveness. The moderating effect of customer relationship proneness on a few proposed hypotheses was also tested to give managerial recommendations.

Details

The TQM Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 31 January 2023

Ala' Omar Dandis, Mohammad Al Haj Eid, Denis Griffin, Robin Robin and Arnt Kyawt Ni

This study examines factors that affect customer lifetime value (CLV) in fast-food restaurants (FFRs) in Jordan. These factors are relational benefits, brand experiences, service…

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Abstract

Purpose

This study examines factors that affect customer lifetime value (CLV) in fast-food restaurants (FFRs) in Jordan. These factors are relational benefits, brand experiences, service quality (SQ), satisfaction, trust and commitment.

Design/methodology/approach

An online survey was collected from a sample of 503 respondents. The authors used SPSS to test the constructs' relationships and analyse the data. SmartPLS was used to test the hypotheses.

Findings

In contrast to previous studies, not all dimensions of brand experiences and relational benefits had a significant and positive influence on relationship marketing outcomes (satisfaction, trust and commitment). On the other hand, results demonstrated that SQ had a significant and positive influence on relationship marketing outcomes. Furthermore, research reveals that satisfaction, trust and commitment significantly and positively influenced CLV.

Practical implications

Those FFRs that seek to enhance CLV should build solid and sustainable bonds with their customers. This paper concludes by stating its implications, its limitations and the opportunities available for future research.

Originality/value

This study, which is unique in the Middle East, includes essential strategies for managing customer relationship that can be universally applied to improve customer benefits and maximise the performance of businesses.

Open Access
Article
Publication date: 14 March 2024

Inma Rodríguez-Ardura, Antoni Meseguer-Artola, Doaa Herzallah and Qian Fu

There is an ongoing challenge to map the efficacy of e-retailing strategies in building both value co-creation opportunities for online customers and customer value for companies…

Abstract

Purpose

There is an ongoing challenge to map the efficacy of e-retailing strategies in building both value co-creation opportunities for online customers and customer value for companies. Based on the service-dominant (S-D) logic, an integrative model is provided that connects the impact of convenience and personalisation strategies (CPSs) on an e-retailer's performance – by offering co-creation opportunities and customer engagement.

Design/methodology/approach

The survey instrument is validated and the model is tested with data from active online customers using a novel methodology that blends artificial neural network (ANN) analysis with partial least squares (PLS) in both the measurement model and the path analysis.

Findings

The findings robustly support the model and yield evidence of the contribution of CPSs in effective value propositions, the interface between the S-D logic and customer engagement, and the direct effect of customer engagement on tangible forms of value for companies.

Originality/value

This study is the first scholarly effort to provide a comprehensive understanding of how and why CPSs can maximise customer value for the e-retailer, while simultaneously testing the customer value/engagement interface with a new blended ANN-PLS method.

Details

Journal of Research in Interactive Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-7122

Keywords

Article
Publication date: 28 February 2023

Liming Lin, Zhaoyang Guo and Chenxi Zhou

Despite service downgrades' undisputed practical relevance, service downgrades (e.g. customers shifting the price tier downward) have received surprisingly little attention from…

Abstract

Purpose

Despite service downgrades' undisputed practical relevance, service downgrades (e.g. customers shifting the price tier downward) have received surprisingly little attention from scholars. Previous studies have focussed on either the public policy issue of tiered pricing or optimal pricing by the service provider. Only a few studies have examined why customers shift across different price tiers and how such activities indicate their future behaviour.

Design/methodology/approach

Based on customer data collected from a major telecommunications company, the authors use a logistic regression model to investigate how two service modification levers (i.e. transaction- and relationship-level factors) influence the likelihood of service downgrade. The authors apply a survival model to study how service downgrades affect customer churn.

Findings

Transaction-level factors such as service usage (e.g. the frequency and recency of underuse experiences) are positively associated with the likelihood of a downgrade. However, relationship-level factors (e.g. relationship duration and customer status) are negatively associated with the likelihood of downgrades. Customers engaging in downgrades are more likely to churn in the future.

Originality/value

The authors focus on downgrade behaviour, which can be perceived as customers' choice to move down the price tier, which likely ruins the service provider's performance. The authors conceptualise two fundamental driving forces behind a service downgrade: the misfits between the actual usage and the service plan chosen and the deteriorating relationships. The authors' empirical findings on the factors influencing downgrades provide insights for service providers seeking to prevent such behaviour.

Details

Journal of Service Theory and Practice, vol. 33 no. 3
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 16 November 2022

Zhenkun Liu, Ping Jiang, Jianzhou Wang, Zhiyuan Du, Xinsong Niu and Lifang Zhang

This study/paper aims to reach the core objective of hospitality order cancellation prediction (HOCP), that is, to identify potential cancellers from many customer bases, thereby…

Abstract

Purpose

This study/paper aims to reach the core objective of hospitality order cancellation prediction (HOCP), that is, to identify potential cancellers from many customer bases, thereby enhancing the effectiveness of customer retention campaigns. However, few studies have focused on predicting hospitality order cancellation.

Design/methodology/approach

A novel profit-driven model for predicting hospitality order cancellation is proposed to bridge this research gap. The authors construct profit-driven extreme gradient boosting (XGBoost) based on a grid search on HOCP to maximize profit by selecting optimal hyperparameters of XGBoost.

Findings

Real-world data set is analyzed, and the proposed model yields more profits than other predictive models. Sensitivity analysis proves that the proposed model is robust to the key hyperparameter and application scenario. Furthermore, some preventive measures based on visual analysis results are provided to reduce the cancelled probability of orders.

Research limitations/implications

This research will help hotel managers to transfer the modeling goal to profit orientation and encourage relevant researchers to interpret the prediction results of models for hotel order cancellation prediction in a post hoc manner. Besides, the proposed model can be applied to various enterprises with different average order profits and help managers optimize revenue management.

Originality/value

This research expands the relevant literature and offers guidance for predicting hospitality order cancellation from a profit-driven perspective at the customer level. The proposed model can provide macro-control to hotel managers and obtain the most satisfactory profits in micro-control.

Details

International Journal of Contemporary Hospitality Management, vol. 35 no. 6
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 26 February 2024

Jianping Hu, Xinjiang Ye and Shengyu Gu

The study advances an enhanced model encompassing psychological involvement, denoted as the psychological continuum model (PCM) and perceived customer service quality as…

Abstract

Purpose

The study advances an enhanced model encompassing psychological involvement, denoted as the psychological continuum model (PCM) and perceived customer service quality as intermediaries in the association between subjective customer knowledge (SCK) and behavioral loyalty. The purpose of this study is to assess the mediating role of psychological engagement and consumers' perceived service quality in the relationship between SCK and behavioral loyalty among members of nonprofit sports service organizations. Additionally, the study aims to examine the impact of membership duration on the relationship between consumer knowledge and behavioral loyalty.

Design/methodology/approach

The study used a quantitative research design, and primary data were collected through a structured questionnaire from 527 members of nonprofit Chinese sports clubs who were selected using a simple random sampling technique. A 5-point Likert scale questionnaire was developed to measure all constructs in the intended research model. The suitability of the measurement model was analyzed by performing confirmatory factor analysis (CFA). Structural equation modeling (SEM) was used to analyze the data using AMOS-24.

Findings

The results of the overall direct effect indicate a significant influence of subjective knowledge on perceived service quality, perceived service quality significantly and positively influences psychological engagement; psychological engagement was found to be an important predictor of consumer behavioral loyalty.

Originality/value

The results offer information for nonprofit sports club (NPSC) managers who seek to increase the attractiveness and retention of their clubs' members by establishing the importance of subjective consumer knowledge.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 26 February 2024

Rosli Said, Mardhiati Sulaimi, Rohayu Ab Majid, Ainoriza Mohd Aini, Olusegun Olaopin Olanrele and Omokolade Akinsomi

This study aims to address the critical need for innovative financing solutions in the global housing sector, focusing specifically on Malaysia’s distinct housing finance system…

Abstract

Purpose

This study aims to address the critical need for innovative financing solutions in the global housing sector, focusing specifically on Malaysia’s distinct housing finance system encompassing both conventional and Islamic loans. The primary objective is to develop a transformative housing finance model that addresses affordability challenges and reshapes the Malaysian housing landscape.

Design/methodology/approach

The study presents an alternate housing finance model for Malaysia, integrating lower monthly payments and reduced household debt. Key variables include house price appreciation rates, interest rates, initial guarantee fees and loan-to-value ratios. Inspired by the Help to Buy (HTB) scheme, the model aligns with proven global initiatives for enhanced affordability, balancing payment amounts, loan interest rates and acceptable price thresholds.

Findings

The study’s findings promise to address affordability disparities and reshape Malaysia’s housing finance landscape. The emphasis is on introducing a structured repayment plan that offers a sustainable path to homeownership, particularly for low-income families. Incorporating the future value adaptation concept, inspired by reverse mortgages and Islamic finance, enhances adaptability, ensuring long-term sustainability despite economic shifts.

Practical implications

The proposed model promotes widespread access to homeownership, offering practical solutions for policymakers to improve affordability, prompting adaptable risk management strategies for financial institutions and empowering potential homebuyers with increased flexibility.

Originality/value

The study introduces a transformative housing finance model for Malaysia, merging elements from reverse mortgages, Islamic finance and the HTB scheme, offering potential applicability to similar systems globally.

Details

International Journal of Housing Markets and Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 24 March 2023

André Richelieu, Simona Gavrila and Pierre Sercia

The purpose of this study was twofold. First, the authors analyzed how a major Canadian university sport brand was interpreted by its stakeholders and why the perception was so…

Abstract

Purpose

The purpose of this study was twofold. First, the authors analyzed how a major Canadian university sport brand was interpreted by its stakeholders and why the perception was so negative. Second, the researchers investigated how a dormant university sport brand could be revitalized.

Design/methodology/approach

A mixed-methods approach was designed. During the first year, a qualitative methodology was established. Researchers conducted 14 different focus groups, with students-athletes, students, coaches, university administrators, support staff and professors. In the second year, based on the initial findings, the researchers elaborated a quantitative protocol and built a multidimensional questionnaire which was administered to groups that were gravitating around the varsity brand. There were a total of 1,757 completed questionnaires.

Findings

The conclusions highlighted the weakness of the varsity brand and the limitations in leveraging the latter for the benefit of the institution. Contradictions in the marketing and branding decisions were noted, for which strategic recommendations were formulated.

Research limitations/implications

In essence, the contributions of the paper relate to the strategic management of the brand and the mixed-methods approach borrowed in this research. Understanding how a brand is perceived is essential for managers in elaborating their strategy and, therefore, being able to connect effectively with their audience.

Originality/value

The potential strategic leverage of branding for universities becomes even more valuable as these institutions are increasingly using their varsity programs to compete with one another. This study specifically analyzes the case of a Canadian varsity brand whose values and resources differ greatly from other North American institutions.

Details

Sport, Business and Management: An International Journal, vol. 13 no. 4
Type: Research Article
ISSN: 2042-678X

Keywords

1 – 10 of 22