Customer retention and price matching: The AFPs case
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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter Diamond, 2006.
"Reforming Public Pensions in the US and the UK,"
Royal Economic Society, vol. 116(509), pages F94-F118, 02.
- Srivastava, Joydeep & Lurie, Nicholas, 2001. " A Consumer Perspective on Price-Matching Refund Policies: Effect on Price Perceptions and Search Behavior," Journal of Consumer Research, Oxford University Press, vol. 28(2), pages 296-307, September.
- Gountas, Sandra & Ewing, Michael T. & Gountas, John I., 2007. "Testing airline passengers' responses to flight attendants' expressive displays: The effects of positive affect," Journal of Business Research, Elsevier, vol. 60(1), pages 81-83, January.
- Pitelis, Christos N., 1984.
"The effects of Life Assurance and Pension Funds on Other Savings : The Postwar U.K. Experience,"
The Warwick Economics Research Paper Series (TWERPS)
252, University of Warwick, Department of Economics.
- Pitelis, Christos N, 1985. "The Effects of Life Assurance and Pension Funds on Other Savings: The Postwar UK Experience," Bulletin of Economic Research, Wiley Blackwell, vol. 37(3), pages 213-29, September.
- Solange Berstein & José Luis Ruiz V, 2005. "Sensibilidad de la Demanda con Consumidores Desinformados: El Caso de las AFP en Chile," Working Papers 4, Superintendencia de Pensiones, revised Apr 2005.
- Solange Berstein & Rómulo Chumacero, 2005. "Cuantificación de los Costos de los Limites de Inversión para los Fondos de Pensiones Chilenos," Working Papers 3, Superintendencia de Pensiones, revised Apr 2005.
- Mano, Haim & Oliver, Richard L, 1993. " Assessing the Dimensionality and Structure of the Consumption Experience: Evaluation, Feeling, and Satisfaction," Journal of Consumer Research, Oxford University Press, vol. 20(3), pages 451-66, December.
- Kukar-Kinney, Monika, 2006. "The role of price-matching characteristics in influencing store loyalty," Journal of Business Research, Elsevier, vol. 59(4), pages 475-482, April.
- Martin Feldstein, 1980.
"Do Private Pensions Increase National Saving?,"
NBER Working Papers
0186, National Bureau of Economic Research, Inc.
- Schieber, Sylvester J & Shoven, John B, 1996. "Social Security Reform: Around the World in 80 Ways," American Economic Review, American Economic Association, vol. 86(2), pages 373-77, May.
When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:61:y:2008:i:6:p:691-696. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.