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The antecedents of customer lifetime duration and discounted expected transactions: Discrete-time based transaction data analysis

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  • Chao Wang
  • Ilaria Dalla Pozza
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    Abstract

    Maintaining long-term customer relationships and increasing customer value are always the two crucial objectives in service management and relationship marketing. Both researchers and market practitioners are ardent on exploring and comprehending the drivers of customer lifetime duration and number of future transactions (discounted expected transactions). This study implements a probability model to estimate the lifetime duration and discounted expected transactions with relatively simple and standard discrete-time based transaction data which are easily approachable for managers, and identifies the relational and demographic factors that have significant contribution in the explanation of the variance in customer lifetime duration and discounted expected transactions. Several important managerial implications are discussed to offer some insights to marketing managers and decision makers.

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    Bibliographic Info

    Paper provided by Department of Research, Ipag Business School in its series Working Papers with number 2014-203.

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    Length: 42 pages
    Date of creation: 28 Mar 2014
    Date of revision:
    Handle: RePEc:ipg:wpaper:2014-203

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    1. David C. Schmittlein & Robert A. Peterson, 1994. "Customer Base Analysis: An Industrial Purchase Process Application," Marketing Science, INFORMS, vol. 13(1), pages 41-67.
    2. David C. Schmittlein & Donald G. Morrison & Richard Colombo, 1987. "Counting Your Customers: Who-Are They and What Will They Do Next?," Management Science, INFORMS, vol. 33(1), pages 1-24, January.
    3. Deborah L. Kellogg & Richard B. Chase, 1995. "Constructing an Empirically Derived Measure for Customer Contact," Management Science, INFORMS, vol. 41(11), pages 1734-1749, November.
    4. Oliver, Richard L. & Winer, Russell S., 1987. "A framework for the formation and structure of consumer expectations: Review and propositions," Journal of Economic Psychology, Elsevier, vol. 8(4), pages 469-499, December.
    5. Glen L. Urban & Theresa Carter & Steven Gaskin & Zofia Mucha, 1986. "Market Share Rewards to Pioneering Brands: An Empirical Analysis and Strategic Implications," Management Science, INFORMS, vol. 32(6), pages 645-659, June.
    6. Spekman, Robert E., 1988. "Strategic supplier selection: Understanding long-term buyer relationships," Business Horizons, Elsevier, vol. 31(4), pages 75-81.
    7. Scott A. Neslin & Caroline Henderson & John Quelch, 1985. "Consumer Promotions and the Acceleration of Product Purchases," Marketing Science, INFORMS, vol. 4(2), pages 147-165.
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