Firms in multiple industries collect customer satisfaction data to measure service performance. Increasingly, however, many firms are now able to collect objective service performance data as well. This raises the question of whether measuring customer satisfaction is valuable to firms when objective service performance data are available. The authors answer this question via the use of unique ...

The success of prediction models for business purposes should not be measured by their accuracy only. Their evaluation should also take into account the higher importance of precise prediction for “valuable” customers. We illustrate this idea through the example of churn modeling in telecommunications, where it is obviously much more important to identify potential churn among valuable customer...

In this article, the authors strengthen the chain of effects that link customer satisfaction to shareholder value by establishing the link between satisfaction and two characteristics of future cash flows that determine the value of the firm to shareholders: growth and stability. Using longitudinal American Customer Satisfaction Index and COMPUSTAT data and hierarchical Bayesian estimation, the...

This study elucidates how cause related marketing, service quality and perceived risk are related, and explores the influence of service quality and perceived risk on customer value. Service quality found to be affected positively by cause related marketing, whereas cause related marketing negatively influences perceived risks. Finally, exactly how customer value is affected by the service qual...

the more a marketing paradigm evolves, the more long-term relationship with customers gains its importance. also, the move towards a customer-centred approach to marketing, coupled with the increasing availability of customer transaction data, has led to an interest in understanding and estimating customer lifetime value (clv). there are several researches about the clv formulas and calculating...

In recent years, customer value has become a major focus among strategy researchers and practitioners as an essential element of a firm’s competitive strategy. Many firms have been interested in Customer Value Analysis (CVA) which involves a structural analysis of the antecedent factors of perceived value (i.e., perceived quality and perceived price) to assess their relative importance in the p...