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Valuing customers for social network services


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  • Joo, Young-Hyuck
  • Kim, Yunsik
  • Yang, Suk-Joon
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    In the current Internet environment, many online service companies based on community factors (networks) produce and sell new types of digital products. For example, SNS (social network service) companies now sell customers digital decorative products for the adornment of online avatars. Not only do individual customers consume these digital products, but they also exchange them as gifts in their local neighborhoods. While previous studies on customer valuation (e.g. CLTV, RFM, etc.) focus on some important issues for identifying valuable customers, the literature does not resolve issues related to the effects on customer value of products purchased as gifts for another person. This study attempts to verify empirically the effects of two representative social network properties (tie strength and the number of ties) on customer monetary value.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 64 (2011)
    Issue (Month): 11 ()
    Pages: 1239-1244

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    Handle: RePEc:eee:jbrese:v:64:y:2011:i:11:p:1239-1244

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    Keywords: Tie strength; Number of ties; Social network properties; Gift-giving; Customer value;


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    1. Childers, Terry L & Rao, Akshay R, 1992. " The Influence of Familial and Peer-Based Reference Groups on Consumer Decisions," Journal of Consumer Research, University of Chicago Press, vol. 19(2), pages 198-211, September.
    2. Yamamoto Sublaban, Cleusa Satico & Aranha, Francisco, 2009. "Estimating cellphone providers' customer equity," Journal of Business Research, Elsevier, vol. 62(9), pages 891-898, September.
    3. Markus Giesler, 2006. "Consumer Gift Systems," Journal of Consumer Research, University of Chicago Press, vol. 33(2), pages 283-290, 08.
    4. Lowrey, Tina M & Otnes, Cele C & Ruth, Julie A, 2004. " Social Influences on Dyadic Giving over Time: A Taxonomy from the Giver's Perspective," Journal of Consumer Research, University of Chicago Press, vol. 30(4), pages 547-58, March.
    5. Garner, Thesia I & Wagner, Janet, 1991. " Economic Dimensions of Household Gift Giving," Journal of Consumer Research, University of Chicago Press, vol. 18(3), pages 368-79, December.
    6. Gary S. Becker, 1974. "A Theory of Social Interactions," NBER Working Papers 0042, National Bureau of Economic Research, Inc.
    7. Banerjee, Abhijit V, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 797-817, August.
    8. Joy, Annamma, 2001. " Gift Giving in Hong Kong and the Continuum of Social Ties," Journal of Consumer Research, University of Chicago Press, vol. 28(2), pages 239-56, September.
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