The influence of customer value on word of mouth: a study of a financial services company in Brazil
Purpose – Our study analyzes the non-linear effect of customer lifetimevalue (CLV), which accounts for the revenue accumulated over thelifetime of a customer relationship, calculated using a discount rate,on customer referral value (CRV), which accounts for the value createdby customers converted to...
| Authors: | , , |
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| Format: | article |
| Status: | Published version |
| Publication Date: | 2018 |
| Country: | Brasil |
| Institution: | Fundação Escola de Comércio Álvares Penteado (FECAP) |
| Repository: | Revista Brasileira de Gestão de Negócios (Online) |
| Language: | English Portuguese |
| OAI Identifier: | oai:ojs.emnuvens.com.br:article/3798 |
| Online Access: | https://rbgn.fecap.br/RBGN/article/view/3798 |
| Access Level: | Open access |
| Keyword: | Word of mouth Relationship Recommendation Customer performance. Boca a boca relacionamento recomendação desempenho de clientes. |
| Summary: | Purpose – Our study analyzes the non-linear effect of customer lifetimevalue (CLV), which accounts for the revenue accumulated over thelifetime of a customer relationship, calculated using a discount rate,on customer referral value (CRV), which accounts for the value createdby customers converted to the firm.Design/methodology/approach – We collected data from customersof a financial institution that provides retirement plan products. Arandom sample of 768 customers provided the full names of individualsto whom they made a recommendation. After these names were elicited,respondents and referrals were identified in the firm’s records, and wecalculated the CLV and CRV values.Findings – The results show the existence of a U-shaped effect ofCLV on CRV, and a negative linear effect of CLV on recommendationintention.Originality/value – Our study contributes to the body of literature onword of mouth by focusing on a product and business segment withlow perceived brand differentiation and low customer involvement.We contribute to the marketing literature by showing a U-shaperelationship between CLV and word of mouth activity, representedby CRV. |
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