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Valuing customers for social network services


  • Joo, Young-Hyuck
  • Kim, Yunsik
  • Yang, Suk-Joon


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.

Suggested Citation

  • Joo, Young-Hyuck & Kim, Yunsik & Yang, Suk-Joon, 2011. "Valuing customers for social network services," Journal of Business Research, Elsevier, vol. 64(11), pages 1239-1244.
  • Handle: RePEc:eee:jbrese:v:64:y:2011:i:11:p:1239-1244
    DOI: 10.1016/j.jbusres.2011.06.030

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    References listed on IDEAS

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    7. Belk, Russell W & Coon, Gregory S, 1993. " Gift Giving as Agapic Love: An Alternative to the Exchange Paradigm Based on Dating Experiences," Journal of Consumer Research, Oxford University Press, vol. 20(3), pages 393-417, December.
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    Cited by:

    1. Beck, Thorsten & Lu, Liping & Yang, Rudai, 2015. "Finance and Growth for Microenterprises: Evidence from Rural China," World Development, Elsevier, vol. 67(C), pages 38-56.
    2. Gitae Kim & Bongsug Chae & David Olson, 2013. "A support vector machine (SVM) approach to imbalanced datasets of customer responses: comparison with other customer response models," Service Business, Springer;Pan-Pacific Business Association, vol. 7(1), pages 167-182, March.
    3. Gonzalez, Reyes & Llopis, Juan & Gasco, Jose, 2015. "Social networks in cultural industries," Journal of Business Research, Elsevier, vol. 68(4), pages 823-828.


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