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Co-experience Network Dynamics: Lessons from the Dance Floor

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  • Massimo Riccaboni
  • Anna Romiti
  • Gianna Giudicati

Abstract

Experience and socialization are key factors in determining customer commitment and renewal decisions in the service sector. To analyse the combined effect of experience and socialization, in this paper we introduce the concept of co-experience networks. A new methodological approach, originally applied in the field of social ethology, is devised to study reality-mined co-experience networks. By analysing a network of health club members over four years, we find that long-experienced clients have a lower chance to renew their contracts. On the other hand, central members in the co-experience network are stable and tend to renew their memberships. Further, since the members of the same reference group align their levels of commitment, renewal decisions are clustered in a small-world network. These findings contribute to our understanding of social dynamics and localized conformity in customer decision-making that can be used to plan marketing strategies to improve customer retention.

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Bibliographic Info

Paper provided by Department of Computer and Management Sciences, University of Trento, Italy in its series DISA Working Papers with number 2011/02.

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Length: 13 pages
Date of creation: Jan 2011
Date of revision: 28 Mar 2011
Handle: RePEc:trt:disawp:2011/02

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  1. Michel Grabisch & Agnieszka Rusinowska, 2008. "A model of influence in a social network," Documents de travail du Centre d'Economie de la Sorbonne b08066, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  2. Adriaan R. Soetevent, 2006. "Empirics of the Identification of Social Interactions; An Evaluation of the Approaches and Their Results ," Journal of Economic Surveys, Wiley Blackwell, vol. 20(2), pages 193-228, 04.
  3. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
  4. Ruth N. Bolton, 1998. "A Dynamic Model of the Duration of the Customer's Relationship with a Continuous Service Provider: The Role of Satisfaction," Marketing Science, INFORMS, vol. 17(1), pages 45-65.
  5. Mathias Dewatripont & Lars Peter Hansen & Stephen Turnovsky, 2003. "Advances in economics and econometrics: the eighth world congress," ULB Institutional Repository 2013/9557, ULB -- Universite Libre de Bruxelles.
  6. Wagner, Caroline S. & Leydesdorff, Loet, 2005. "Network structure, self-organization, and the growth of international collaboration in science," Research Policy, Elsevier, vol. 34(10), pages 1608-1618, December.
  7. Ruth N. Bolton & Katherine N. Lemon & Matthew D. Bramlett, 2006. "The Effect of Service Experiences over Time on a Supplier's Retention of Business Customers," Management Science, INFORMS, vol. 52(12), pages 1811-1823, December.
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