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Customer retention and price matching: The AFPs case

Author

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  • Hidalgo, Pedro
  • Manzur, Enrique
  • Olavarrieta, Sergio
  • Fari­as, Pablo

Abstract

Understanding the long-term price matching effects on CLV is important in evaluating the effectiveness of these policies in stimulating customer retention. In industries with low brand differentiation and low customer involvement (e.g., private pension system), it can be seen that choosing a brand is based on inertia. The objective of this article is to analyze the convenience for the firm of improving customer retention, by matching the lowest price in the Chilean private pension system. Results suggest that matching the industry's price leader reduces the firm's CLV, thus diminishing firm incentives to make this marketing effort.

Suggested Citation

  • Hidalgo, Pedro & Manzur, Enrique & Olavarrieta, Sergio & Fari­as, Pablo, 2008. "Customer retention and price matching: The AFPs case," Journal of Business Research, Elsevier, vol. 61(6), pages 691-696, June.
  • Handle: RePEc:eee:jbrese:v:61:y:2008:i:6:p:691-696
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    Cited by:

    1. Olavarrieta, Sergio & Hidalgo, Pedro & Manzur, Enrique & Farías, Pablo, 2012. "Determinants of in-store price knowledge for packaged products: An empirical study in a Chilean hypermarket," Journal of Business Research, Elsevier, vol. 65(12), pages 1759-1766.
    2. Olavarrieta, Sergio & Villena, Mauricio G., 2014. "Innovation and business research in Latin America: An overview," Journal of Business Research, Elsevier, vol. 67(4), pages 489-497.
    3. Manzur, Enrique & Olavarrieta, Sergio & Hidalgo, Pedro & Farías, Pablo & Uribe, Rodrigo, 2011. "Store brand and national brand promotion attitudes antecedents," Journal of Business Research, Elsevier, vol. 64(3), pages 286-291, March.
    4. Kim, Yu Kyoung & Lee, Hyung Ryong, 2011. "Customer satisfaction using low cost carriers," Tourism Management, Elsevier, vol. 32(2), pages 235-243.
    5. Luciene Eberle & Gabriel Sperandio Milan & Celso Augusto de Matos, 2016. "Antecedents to Customer Retention in a Corporate Context," Brazilian Business Review, Fucape Business School, vol. 13(1), pages 1-23, January.
    6. Pablo Farías, 2020. "Promoting the Absence of Pesticides through Product Labels: The Role of Showing a Specific Description of the Harmful Effects, Environmental Attitude, and Familiarity with Pesticides," Sustainability, MDPI, vol. 12(21), pages 1-8, October.
    7. Farías, Pablo, 2019. "Determinants of knowledge of personal loans' total costs: How price consciousness, financial literacy, purchase recency and frequency work together," Journal of Business Research, Elsevier, vol. 102(C), pages 212-219.
    8. Mohammed Belal Uddin & Bilkis Akhter, 2012. "Customer Satisfaction In Mobile Phone Services In Bangladesh: A Survey Research," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 20-36, May.
    9. Valenzuela, Leslier & Torres, Eduardo & Hidalgo, Pedro & Farías, Pablo, 2014. "Salesperson CLV orientation's effect on performance," Journal of Business Research, Elsevier, vol. 67(4), pages 550-557.
    10. Kohsuke Matsuoka, 2020. "Exploring the interface between management accounting and marketing: a literature review of customer accounting," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 31(3), pages 157-208, September.

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