The influence of customer value on word of mouth: a study of the financial services company in Brazil

Purpose – Our study analyzes the non-linear effect of customer lifetime value (CLV), which accounts for the revenue accumulated over the lifetime of a customer relationship, calculated using a discount rate, on customer referral value (CRV), which accounts for the value created by customers converte...

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Detalhes bibliográficos
Autores: Costa, Sandro Bonfim da, DANNY PIMENTEL CLARO, ADRIANA BRUSCATO BORTOLUZZO
Formato: artículo
Estado:Versión publicada
Fecha de publicación:2018
País:Brasil
Recursos:Instituição de Ensino Superior e de Pesquisa (INSPER)
Repositorio:Repositório Institucional da INSPER
Idioma:inglés
portugués
OAI Identifier:oai:repositorio.insper.edu.br:11224/3929
Acesso em linha:https://repositorio.insper.edu.br/handle/11224/3929
https://doi.org/10.7819/rbgn.v20i2.3798
Access Level:acceso abierto
Palavra-chave:Word of mouth
Relationship
Recommendation
Customer performance
Descrição
Resumo:Purpose – Our study analyzes the non-linear effect of customer lifetime value (CLV), which accounts for the revenue accumulated over the lifetime of a customer relationship, calculated using a discount rate, on customer referral value (CRV), which accounts for the value created by customers converted to the firm. Design/methodology/approach – We collected data from customers of a financial institution that provides retirement plan products. A random sample of 768 customers provided the full names of individuals to whom they made a recommendation. After these names were elicited, respondents and referrals were identified in the firm’s records, and we calculated the CLV and CRV values. Findings – The results show the existence of a U-shaped effect of CLV on CRV, and a negative linear effect of CLV on recommendation intention. Originality/value – Our study contributes to the body of literature on word of mouth by focusing on a product and business segment with low perceived brand differentiation and low customer involvement. We contribute to the marketing literature by showing a U-shape relationship between CLV and word of mouth activity, represented by CRV