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 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...
| Main Authors: | , , |
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| Format: | Article |
| Language: | Spanish |
| Published: |
Fundação Escola de Comércio Álvares Penteado
2018-05-01
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| Series: | Revista Brasileira de Gestão De Negócios |
| Subjects: | |
| Online Access: | https://rbgn.fecap.br/RBGN/article/view/3798/pdf |
| 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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| ISSN: | 1806-4892 1983-0807 |