Customer retention and price matching: The AFPs case
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.
Year of publication: |
2008
|
---|---|
Authors: | Hidalgo, Pedro ; Manzur, Enrique ; Olavarrieta, Sergio ; FariĀas, Pablo |
Published in: |
Journal of Business Research. - Elsevier, ISSN 0148-2963. - Vol. 61.2008, 6, p. 691-696
|
Publisher: |
Elsevier |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Store brand and national brand promotion attitudes antecedents
Manzur, Enrique, (2011)
-
Customer retention and price matching: the AFPs case
Hidalgo, Pedro, (2008)
-
Comparative advertising effectiveness in Latin America : evidence from Chile
Manzur, Enrique, (2012)
- More ...