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...
| Authors: | , , |
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| Format: | article |
| Status: | Published version |
| Publication Date: | 2018 |
| Country: | Brasil |
| Institution: | Instituição de Ensino Superior e de Pesquisa (INSPER) |
| Repository: | Repositório Institucional da INSPER |
| Language: | English Portuguese |
| OAI Identifier: | oai:repositorio.insper.edu.br:11224/3929 |
| Online Access: | https://repositorio.insper.edu.br/handle/11224/3929 https://doi.org/10.7819/rbgn.v20i2.3798 |
| Access Level: | Open access |
| Keyword: | Word of mouth Relationship Recommendation Customer performance |
| Summary: | 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 |
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