Marketing Variables Predicting Customer Value in Empirical Environments

  1. Ana Pedreño Santos 1
  2. Maria Francisca Blasco 1
  3. Jesús García-Madariaga 1
  1. 1 Universidad Complutense de Madrid
    info

    Universidad Complutense de Madrid

    Madrid, España

    ROR 02p0gd045

Book:
EBOR Conference Abstract Book

Publisher: EBOR Academy Publishing House, Turkey

ISBN: 978-605-68816-6-4

Year of publication: 2020

Pages: 126

Type: Book chapter

GOOGLE SCHOLAR

Abstract

It is essential for a company to know how marketing variables affect customer value. It is necessary to be marketand customer oriented, and to improve efficiency in both attracting and retaining customers. But a comprehensive,integrated assessment of all marketing variables and their interdependencies is an arduous and complex task andthereby, an unsettled issue.This study proposes a customer value management model based in the analysis of empirical studies.There is amanagerial demand for business researchers of doing a transformation from theory to practice, and not allmarketing variables have being studied from a value point of view. The aim of this work is to give a tool formanagers and researchers to work on the variables with a global vision and understand the relationships betweenmarketing variables and its impact in customer value. The model simplifies the task of finding information of theeffects produced using certain marketing variables, in order to work together acquisition and retention areas andpredicting what their possible results of implemented marketing actions will be.The marketing variables found out empirically as value predictors are: brand reputation, point of sale, price,discounts, product complementarity, experiences, emotions, perceived value, satisfaction, quality, switching costs,termination fee commitment and loyalty. The model incorporates the relationship between each variable withretention and with customer value as well as the relationships between them.The results show that customer value for the company is necessarily achieved through customer lifetime and thatthere are four clear predictors to customer lifetime: perceived value, purchase intention, satisfaction and switchingcosts.

Bibliographic References

  • Biglaiser G., Crémer J., & Dobos G (2013), "The value of switching costs", Journal of Economic Theory, 148(3), pp. 935–952.
  • Boonlertvanich K. (2011), "Effect of customer perceived value on satisfaction and customer loyalty in banking service: the moderating effect of main-bank status", International Journal of Business Research, 11(6), pp. 40-54.
  • Brakus J., Schmitt B. & Zarantonello L. (2009), “Brand Experience: What Is It? How Is It Measured? Does It Affect Loyalty?, Journal of Marketing, 73 (May), pp. 52–68.
  • Caruana A. (2002), "Service loyalty: the effects of service quality and the mediating role of customer satisfaction", European Journal of Marketing, 36(8), pp. 811-828.
  • Cengiz, E. & Yayla, H.E. (2007), “The effect of marketing mix on positive word of mouth communication: Evidence from accounting offices in Turkey”, Innovative Marketing, 3(4), pp. 73-86.
  • Chen Z. & Dubinsky A. (2003), "A conceptual model of perceived customer value in e-commerce: A preliminary investigation", Psychology and Marketing, 20(4), pp 323–347.
  • Chen, S.-C. & Quester, P.G. (2006), “Modeling store loyalty: perceived value in market orientation practice”, Journal of Services Marketing, 20(3), pp. 188-198.
  • Cronin J., Brady M. & Hult G. (2000), "Assessing the Effects of Quality, Value, and Customer Satisfaction on Consumer Behavioral Intentions in Service Environments", Journal of Retailing, 76(2), pp. 193–218.
  • Eakuru N. & Mat N.K.N. (2008), “The application of structural equation modeling (SEM) in determining the antecedents of customer loyalty in banks in South Thailand”, The Business Review, Cambridge, 10(2), pp. 129- 139.
  • Edvardsson B., Enquist B. & Johnston R. (2005), "Cocreating Customer Value Through Hyperreality in the Prepurchase Service Experience", Journal of Service Research, 8(2), 149-161.
  • Eshghi A., Haughton D., Teebagy N. & Topi H. (2006), "Determinants of customer churn behavior: the case of the local telephone service", Marketing Management Journal, 16(2), pp. 179-187.
  • Grace D. & O´Cass A. (2004), “Examining service experiences and post-consumption evaluations”, Journal of Services Marketing, 18(6), pp. 450-461.
  • Iyengar R., Jedidi K., Essegaier S. & Danaher P. (2011), "The Impact of Tariff Structure on Customer Retention, Usage, and Profitability of Access Services", Marketing Science, 30(5), pp. 820-836.
  • Jiang J, Chou, T, & Tao, X (2011), “The Impact of Price Discount, Product Complementarity and Relational Investment on Customer Loyalty: Empirical Evidence from China's Telecommunications Industry”, Asian Journal of Marketing, 5(1), pp. 1-16.
  • Kaltcheva V. & Weitz B. (2006), "When Should a Retailer Create an Exciting Store Environment?", Journal of Marketing, 70 (Jan), pp. 107–118.
  • Kim D.J., Ferrin D.L., & Rao H. R. (2008), "A trust-based consumer decision-making model in electronic commerce: The role of trust, perceived risk, and their antecedents", Decision Support Systems, 44(2), pp. 544– 564.
  • Kumar V., Jones E., Venkatesan R. & Leone R. (2011), "Is Market Orientation a Source of Sustainable Competitive Advantage or Simply the Cost of Competing?", Journal of Marketing, 75(Jan), pp. 16-30.
  • Lam S.Y., Shankar V., Erramilli M.K. & Murthy B. (2004), "Customer Value, Satisfaction, Loyalty, and Switching Costs: An Illustration From a Business-to-Business Service Context”, Journal of the Academy of Marketing Science, 32(3), pp. 293-311.
  • Lambrecht A., Seim K. & Skiera B. (2007), “Does Uncertainty Matter? Consumer Behavior Under Three-Part Tariffs,” Marketing Science, 26(5), pp. 698-710.
  • Laros F. & Steenkamp J.B. (2005), "Emotions in consumer behavior: a hierarchical approach", Journal of Business Research, 58(9), pp. 1437-1445.
  • Lemon K.N., Rust R.T. & Zeithaml, V.A. (2001), "What drives customer equity", Marketing Management, 10(1), pp. 20-25.
  • Lewis M. (2006), “Customer Acquisition Promotions and Customer Asset Value”, Journal of Marketing Research 43(2), pp. 195-203.
  • Li M.L & Green R.D. (2011), "A mediating influence on customer loyalty: The role of perceived value", Journal of Management and Marketing Research, 7 (March), pp. 1-12.
  • Mittal V. & Kamakura W. (2001), “Satisfaction, Repurchase Intent, and Repurchase Behavior: Investigating the Moderating Effect of Customer Characteristics”, Journal of Marketing Research, 38(1), pp. 131-142.
  • Pedreño-Santos, A., García-Madariaga, J., & Blasco, M. F. (2019). The Role of Termination Fee Commitment in Developing Customer Value in the Telecommunication Industry: An Empirical Study. Services Marketing Quarterly, 40(4), 316-330.
  • Ryu K., Lee HR., & Kim WG. (2012) “Influence of the Quality of Food, Service, and Physical Environment on Customer Satisfaction and Behavioral Intention in Quick-Casual Restaurants: Moderating Role of Perceived Price”, International Journal of Contemporary Hospitality Management, 34(10), pp. 310-329
  • Shampanier K., Mazar, N. & Ariely, D. (2007). “Zero as a Special Price: The true value of free products”, Marketing Science, 26(6), pp. 742-757.
  • Thomas J., Blattberg R. & Fox E. (2004), "Recapturing Lost Customers", Journal of Marketing Research, 41(1), pp. 31-46.
  • Tsiros M. & Mittal V. (2000), "Regret: A Model of Its Antecedents and Consequences in Consumer Decision Making", Journal of Consumer Research, 26(4), pp. 401-417.
  • Vogel V., Evanschitzky H. & Ramaseshan B. (2008) "Customer Equity Drivers and Future Sales", Journal of Marketing, 72(6), pp. 98-108.
  • Wong A. (2004), “The role of emotional satisfaction in service encounters”, Managing Service Quality, 14(5), pp. 365-376.
  • Wong K. (2011), “Getting what you paid for: Fighting wireless customer churn with rate plan optimization”, Journal of Database Marketing & Customer Strategy Management, 18(2), pp. 73-82.
  • Xevelonakis E. (2008), “Managing event-driven customer relationships in telecommunications”, Journal Of Database Marketing & Customer Strategy Management, 15(3), pp. 146-152.
  • Yang Z. y Peterson R. (2004), "Customer Perceived Value, Satisfaction, and Loyalty: The Role of Switching Costs", Psychology & Marketing, 21(10), pp.799–822.