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...

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Detalles Bibliográficos
Autores: Costa, Sandro Bonfim da, Claro, Danny Pimentel, Bortoluzzo, Adriana Bruscato
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2018
País:Brasil
Institución:Fundação Escola de Comércio Álvares Penteado (FECAP)
Repositorio:Revista Brasileira de Gestão de Negócios (Online)
Idioma:inglés
portugués
OAI Identifier:oai:ojs.emnuvens.com.br:article/3798
Acceso en línea:https://rbgn.fecap.br/RBGN/article/view/3798
Access Level:acceso abierto
Palabra clave:Word of mouth
Relationship
Recommendation
Customer performance.
Boca a boca
relacionamento
recomendação
desempenho de clientes.
Descripción
Sumario: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.