Are Satisfied Long-Term Customers more Profitable? Evidence from the Telecommunication Sector (ABSTRACT)
published: 2007 | Research publication | Refereed Journals - Marketing
Ranaweera, Chatura (2007), "Are Satisfied Long-Term Customers more Profitable? Evidence from the Telecommunication Sector", Journal of Targeting, Measurement and Analysis for Marketing, Vol 15 No 2 pp.113-120.
Abstract: Companies strive to establish long-term customer relationships based on the premise that long-term customers with positive attitudinal dispositions (and therefore, loyal) are in general more profitable than others. Results indicate that such generalisations may be tenuous. While some effects of satisfaction and duration on behavioural intentions were found to support predominant beliefs in research, results were mixed. The combined effects of satisfaction and duration on behavioural intentions indicated that long-term customers might not necessarily be more profitable than new customers. These findings add an important cautionary note to firms who formulate their marketing strategies with the fundamental aim of establishing and maintaining long-term customer relationships, or indeed, believe that long-term customers with a positive attitudinal disposition are essentially profitable customers.
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revised Jan 2/06
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