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Customer segmentation using unobserved heterogeneity in the perceived-value–loyalty–intentions link

  • Floh, Arne
  • Zauner, Alexander
  • Koller, Monika
  • Rusch, Thomas
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    Multiple facets of perceived value perceptions drive loyalty intentions. However, this value–loyalty link is not uniform for all customers. In fact, the present study identifies three different segments that are internally consistent and stable across different service industries, using two data sets: the wireless telecommunication industry (sample size 1122) and the financial services industry (sample size 982). Comparing the results of a single-class solution with finite mixture results confirms the existence of unobserved customer segments. The three established segments are “rationalists”, “functionalists” and “value maximizers”. These results point the way for value-based segmentation in loyalty initiatives and reflect the importance of a multidimensional conceptualization of perceived value, comprising cognitive and affective components. The present results substantiate the fact that assuming a homogeneous value–loyalty link provides a misleading view of the market. The paper derives implications for marketing research and practice in terms of segmentation, positioning, loyalty programs and strategic alliances.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0148296313003007
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    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 67 (2014)
    Issue (Month): 5 ()
    Pages: 974-982

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    Handle: RePEc:eee:jbrese:v:67:y:2014:i:5:p:974-982
    Contact details of provider: Web page: http://www.elsevier.com/locate/jbusres

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    1. 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.
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    5. Ko, Eunju & Taylor, Charles R. & Sung, Heewon & Lee, Jooyeon & Wagner, Udo & Navarro, David Martin-Consuegra & Wang, Fanghua, 2012. "Global marketing segmentation usefulness in the sportswear industry," Journal of Business Research, Elsevier, vol. 65(11), pages 1565-1575.
    6. Sheth, Jagdish N. & Newman, Bruce I. & Gross, Barbara L., 1991. "Why we buy what we buy: A theory of consumption values," Journal of Business Research, Elsevier, vol. 22(2), pages 159-170, March.
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