Customer retention and price matching: The AFPs case

Hidalgo, P.; Manzur E.; Olavarrieta, S; Farías P.

Abstract

Understanding the long-term price matching effects on CLV is important in evaluating the effectiveness of these policies in stimulating customer retention. In industries with low brand differentiation and low customer involvement (e.g., private pension system), it can be seen that choosing a brand is based on inertia. The objective of this article is to analyze the convenience for the firm of improving customer retention, by matching the lowest price in the Chilean private pension system. Results suggest that matching the industry's price leader reduces the firm's CLV, thus diminishing firm incentives to make this marketing effort. © 2007 Elsevier Inc. All rights reserved.

Más información

Título según WOS: Customer retention and price matching: The AFPs case
Título según SCOPUS: Customer retention and price matching: The AFPs case
Título de la Revista: JOURNAL OF BUSINESS RESEARCH
Volumen: 61
Número: 6
Editorial: Elsevier Science Inc.
Fecha de publicación: 2008
Página de inicio: 691
Página final: 696
Idioma: English
URL: http://linkinghub.elsevier.com/retrieve/pii/S0148296307002457
DOI:

10.1016/j.jbusres.2007.06.046

Notas: ISI, SCOPUS