The Joint Effect of Relationship Perceptions, Loyalty Program and Direct Mailing on Customer Share Development

59 Pages Posted: 20 Feb 2003

See all articles by Peter C. Verhoef

Peter C. Verhoef

University of Groningen - Department of Marketing & Marketing Research

Date Written: January 2002 3,

Abstract

In this paper, we examine the effect of relationship perceptions and relationship marketing instruments on customer share development. We also study the interaction effect of these instruments with behavioral loyalty and relationship perceptions. This study is executed among a sample of customers of a financial service provider. Our results show that commitment positively affects changes in customer share, while loyalty program membership and direct mailings also have a positive effect. We also find that satisfaction has a smaller effect among members of the loyalty program, while our results also reveal some preliminary evidence to support the notion that loyalty programs are less effective among behavioral loyal customers.

Keywords: customer relationship management, customer loyalty, marketing research, marketing instruments marketing models

JEL Classification: M, M31, C44

Suggested Citation

Verhoef, Peter C., The Joint Effect of Relationship Perceptions, Loyalty Program and Direct Mailing on Customer Share Development (January 2002 3,). ERIM Report Series Reference No. ERS-2002-27-MKT. Available at SSRN: https://ssrn.com/abstract=370968

Peter C. Verhoef (Contact Author)

University of Groningen - Department of Marketing & Marketing Research ( email )

Netherlands

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