• Title/Summary/Keyword: Customer Retention

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The Impact of Loyalty Program on Customer Retention: Empirical Evidence from Bangladesh

  • AHSAN, Syed Md. Hasib;ALAUDDIN, Md.;ALAM, Mohammad Manjur;NAZIA, Adiba;ISLAM, Tasnim
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.6
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    • pp.195-206
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    • 2022
  • The purpose of this paper is to examine how loyalty programs designed by retail stores affect customer retention. The present study is one of the few empirical studies finding the role of different loyalty programs that help to build customer retention. The study also seeks to explore the moderation role of customer perceived value between intrinsic motivation - customer retention and extrinsic motivation - customer retention. The researchers employed a quantitative research design to collect data from the 350 respondents who purchased goods from the retail chain/departmental stores in Bangladesh. The collected data are then analyzed using structural equation modeling. The result of their findings indicated that the size of the organizational reward has a positive effect on intrinsic and extrinsic motivation; further extrinsic motivation has a significant relation to customer retention. Surprisingly, no support was found for the positive impact of intrinsic motivation on customer retention. Customer perceived value (CPV) is critical as a moderator in building client retention, which improves the positive association between extrinsic motivation and customer retention. CPV, on the other hand, was found to mitigate the negative link between intrinsic motivation and client retention.

The Effects of Customer Value and Customer Trust on Customer Retention: An Empirical Study in Indonesia

  • DEWOBROTO, Wiji;NIMRAN, Umar;ARIFIN, Zainul;YULIANTO, Edy
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.7
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    • pp.255-264
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    • 2021
  • The purpose of this study is to analyze the role of customer value and customer trust as a mediator of flexibility influence on customer retention. The study applies SEM tools with WarpPLS analysis and translates customer value and customer trust as mediation. This study was organized into three parts: exploratory research, descriptive research, and explanatory research. The quantitative approach in this study uses a survey method by taking samples from the population. This is a latent variable that is measured using a research instrument in the form of a questionnaire. The survey was conducted by distributing questionnaires to respondents. This research was conducted at PT. Nusa Prima Logistics Terminal Teluk Lamong by taking primary data, in the form of assessments or perceptions from respondents, so a survey was conducted by submitting a questionnaire directly to 194 respondents. Quantitative data analysis was performed using Structural Equation Modeling (SEM) to answer the research hypothesis. Flexibility is very influential in increasing customer retention so to develop customer retention, it is necessary to increase flexibility, customer value, and customer trust. The novelty in this research lies in identifying the role and position of customer value and customer trust as mediation that affect customer retention.

An Empirical Study on the Adjustment Effect of Switching Barriers on Customer Retention in Mobile Telecommunication Services (이동통신서비스에서 전환장벽이 고객유지에 미치는 조절효과에 관한 실증연구)

  • Kim, Moon-Koo;Park, Myeong-Cheol;Jeong, Dong-Heon;Park, Jong-Hyun
    • Asia pacific journal of information systems
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    • v.13 no.3
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    • pp.107-130
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    • 2003
  • This paper aims to investigate the adjustment effect of switching barriers on customer retention in mobile telecommunication services. The detailed factors regarding switching barriers are classified based on the related literatures. Furthermore, the hierarchical regression analysis is used to analyze the extent to which the factors affect customer retention. The main contribution of this paper is to focus on switching barriers and theirs relationships with customer retention rather than customer satisfaction on early studies. The results are as follows: First, among the factors of switching barriers, switching costs, such as continuity cost and contractual cost, interpersonal relationship, and attractiveness of alternatives are key factors in determining customer retention. Second, continuity cost and interpersonal relationship have an adjustment effect between customer satisfaction and customer retention. The findings can help the mobile operators establish a customer-oriented strategy by identifying a few key factors strengthening the linkage with customers.

A Study on Relationship Quality Influencing Customer Value, Customer Satisfaction and Relationship Retention Intention in the B2B Transaction : Focused on Clients of PCB Manufacturing Corporation (B2B 거래관계에서 고객가치, 고객만족, 관계지속의도에 영향을 미치는 관계품질에 관한 연구 : PCB 제조기업의 고객사를 중심으로)

  • Kim, Min Jeong;Lee, Jae Kwang;Jeong, Jong Kwan
    • Journal of Information Technology Services
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    • v.13 no.4
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    • pp.139-153
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    • 2014
  • The purpose of this study is to examine the impact of relationship quality on customer value, customer satisfaction and relationship retention intention in the B2B transaction relationship. For the empirical study, we conducted a survey of the PCB corporation's client companies and used 110 surveys of them for analysis. The results of this study are summarized as follows : First, trust, relationship satisfaction, unity and performance as factors of relationship quality had significantly positive effect on relationship retention intention by the medium of customer satisfaction. Second, utilitarian value which is a parameter did not have significantly effect on customer satisfaction and relationship retention intention. Whereas, hedonic value which is influenced by relationship satisfaction, unity and performance had significantly positive effect on customer satisfaction and relationship retention intention. These results are not treated weightily in the preceding studies and managing the hedonic value in B2B transaction relationship is considered important to improve the customer satisfaction and relationship retention intention.

The Effect of Interpersonal Relationships among the Foodservice Industry on Customer Satisfaction and Retention (외식업체 고객 유대 전략이 고객 만족도 및 관계 유지에 미치는 영향)

  • Ki, Young-Jin
    • Culinary science and hospitality research
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    • v.12 no.4 s.31
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    • pp.18-32
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    • 2006
  • This research is to figure out how interpersonal relationships among the foodservice industry affected customer satisfaction and retention. Marketing strategy methods could be indicated to bear fruit in the food-industry based on this research. First, the properties of each factor related interpersonal relationship of foodservice industry, customer satisfaction and retention were obtained from previous studies. Second, interpersonal relationship was applied as an independent variable, retention between customers and the foodservice industry as a consequent variable and customer satisfaction as a parameters. The result reached through convergent validity came to satisfy all variables. Third, it was strongly maintained that the higher interpersonal relationship was, the more satisfied customers were and that the more satisfied customers were, the stronger retention was. It was shown that customers would repurchase and had strong loyalty to a certain enterprise if its services satisfied them and met their expectations.

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Effects of Customer Satisfaction and Switching Barrier on Customer Retention and Intention of WOM in Insurance Services (보험서비스에서 고객만족과 전환장벽이 고객유지와 구전의도에 미치는 영향)

  • Jung, Duk-Hwa
    • The Journal of the Korea Contents Association
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    • v.10 no.7
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    • pp.344-354
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    • 2010
  • The primary purpose of this study is to examine the effects of customer satisfaction and switching barrier on customer retention and intention of WOM in insurance services. Based on relevant literature reviews, this study posits three switching barrier characteristics, that is, switching costs, attractiveness of alternatives and interpersonal relationship as key determinants of customer retention and intention of WOM. And then we structured a research model and hypotheses about relationship between these variables. A total 230 usable survey responses of life insurance service users have been employed in the analysis. The major findings from the data analyses are as follows. Firstly, customer satisfaction had a positive influence upon customer retention and intention of WOM. Secondly, two switching barrier characteristics of switching costs and interpersonal relationship had a positive influence upon customer retention. Lastly, customer retention had very significantly related to intention of WOM in insurance services. From this study, we expect to suggest practical and managerial implications to insurance service providers.

The Impact of Omnichannel Shopping Experience and Channel Integration on Customer Retention: Empirical Evidence from China

  • WANG, Junbin;JIANG, Xinyu
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.2
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    • pp.229-242
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    • 2022
  • Creating a new retailing environment to meet the seamless experience requirements of consumers is a challenge for Omnichannel-related businesses. Based on the "appraisal-emotion-response" chain, the purpose of this research is to explore the psychological mechanism of omnichannel integration influencing customer retention and the moderating effect of customer showrooming experience. This research uses a structural equation model in partial least square software to analyze a two-stage survey (Study 1: n = 210; Study 2: n = 342) conducted in China. The results show that channel control experience has three dimensions: perceived channel attribute familiarity, channel type matching, and cross-channel access convenience; consistent interactive experience has two dimensions: information cross-channel consistency and cross-channel service support. Furthermore, both channel control experience and consistent interactive experience are favorable for customer retention through increased customer satisfaction (transactional and retailer satisfaction). Finally, customer showrooming experience positively moderates the relationship between consistent interactive experience and customer satisfaction. This research proposes a self-regulation process model to explain how omnichannel integration enhances consumers' experience, finally leading to consumer retention. The findings contribute to the omnichannel retail business literature and provide management implications for Asian retailers to implement an omnichannel business strategy.

A Study of Customer Churn by Analysing CRM Customer Data (CRM 고객데이터 분석을 통한 이탈고객 연구)

  • Kim, Sang Yong;Song, Ji Yeon;Lee, Gi Soon
    • Asia Marketing Journal
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    • v.7 no.1
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    • pp.21-42
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    • 2005
  • Customer Relationship Management (CRM) is a corporate marketing strategy maintaining and managing customers. And with CRM companies maximize the customer's value through a series of processes of new customer retention, VIP customer retention, customer value increase, potential customer activation, and customers for lifetime by collecting the customer information and taking advantage of it effectively. In particular, as the competitive environment is changing rapidly and getting more intense, maintaining the customer retention through customer churn management becomes more important in order to increase the customer value for maximizing the company's profit and to build up the relationship with customers. For example, the financial industry has managed the customer churn with the concept of customer segmentation. Recently the customer retention and churn management is becoming increasingly important in all business fields as well as financial industry since the companies expect the effect of preventing the customer churn by identifying characteristics of customers. However, despite the increasing interest and importance of the management of the customer churn, not many of studies are systematically executed by analyzing the data of customer churn. In this study we analyze the actual data of CRM activities for the customer retention, specifically the data of TV home-shopping. By doing so, we hope to identify the differences of demographic attributes and transaction specific characteristics in consumer behaviors between the churning customer and the retained customers. In addition, we try to find out the variables which can impact the churning of the customers and to predict the churn rate of individual customer through our proposed model of customer churn. In the end, based on our findings we suggest the possible marketing strategies for TV home-shopping companies.

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The Drivers of Customer Defection in Online Games across Customer Types : Evidence from Novice and Experienced Customers (온라인 게임의 고객 유형 별 이탈 요인 : 신규 고객과 기존 고객을 중심으로)

  • Son, Jungmin;Jo, Wooyong;Choi, Jeonghye
    • Journal of the Korean Operations Research and Management Science Society
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    • v.39 no.4
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    • pp.115-136
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    • 2014
  • The game industry has grown steadily and the online game has become one of the most attractive game segments for its remarkable growth. Customer management in the online game industry, however, has received little attention from the academic field. The purpose of this study is to analyze the drivers of customer defection in the online game setting and suggest not only theoretical but also managerial insights into increasing customer retention rates. Prior to empirical analysis, the authors hypothesized that 3 variables of interests (Learning, Playing, Achievement) would explain the customer defection according to preceeding researches. To demonstrate these hypotheses, the authors obtained data from one of the biggest game publishers in Korea, and the empirical analysis model was developed considering context of research settings. The results of analyses provide the following insights. First, the key behavioral variables of Learning, Playing, and Achievement play substantial roles in explaining the customer defection. Next, the effects of these variables vary between customer types: novice and experienced customers. The defection decisions by novice customers are predicted by all key behavioral variables and Playing serves as the most influential indicator of the defection decisions. However, experienced customers are influenced by Playing and Achievement, while Learning has no impact on the defection decisions. Finally, the authors investigated hypothetical customer retention strategies, using the empirical results. The market outcomes indicate that the customer retention strategies work well with novice customers and it is hard-to-impossible to prevent experienced customers from defection using their behavioral data. These findings together deliver several meaningful insights to management as follow. First, the management should support customers to get involved in Learning activities at the very first stage. Second, customer's Achievement and appropriate compensation for it would work as defection barriers. Last, to optimize the outcomes of firm's marketing investments, it is better to focus on retention of novice users not experienced ones.

A Study on the Effect Between Cabin Service Quality, Customer Value and Relationship Retention Intention in Airline -Focus on the upper-class seats customers- (항공사 기내서비스품질, 고객가치, 관계유지의도의 영향 관계 -상위클래스 이용 승객을 대상으로-)

  • Yoon, Sun-Young
    • Journal of Advanced Navigation Technology
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    • v.16 no.2
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    • pp.340-350
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    • 2012
  • The purpose this study is to find out how cabin service quality influences customer value and relationship retention intention focus on upper-class seats customer in airline. In the result of the hypothesis verification, this study hypotheses concerning the effect relations between cabin service quality, customer value and relationship retention intention. Therefore this study needs to be studied the quality of cabin service of upper-class and service value. Based on the research findings airline cabin service department have to examine various customer needs with the development of items and services.