Balancing Market Share Growth and Customer Profitability: Budget Allocation for Customer Acquisition and Retention | Zendy

HsiuYuan Tsao | Zendy; Lucy M. Matthews | Zendy; Victoria L. Crittenden | Zendy

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Balancing Market Share Growth and Customer Profitability: Budget Allocation for Customer Acquisition and Retention

Author(s) -

HsiuYuan Tsao,

Lucy M. Matthews,

Victoria L. Crittenden

Publication year - 2012

Publication title -

organizations and markets in emerging economies

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.195

H-Index - 4

eISSN - 2345-0037

pISSN - 2029-4581

DOI - 10.15388/omee.2012.3.2.14267

Subject(s) - customer equity , customer profitability , customer retention , customer lifetime value , business , profitability index , loyalty business model , customer advocacy , marketing , customer to customer , equity (law) , loyalty , customer delight , finance , service quality , political science , law , service (business)

This study adds to the knowledge of budget allocation for customer acquisition and retention spending in an inertia segment. The results indicate that when retention spending surpassed the optimal budget allocation, increased spending did not grow the expected value of customer equity. Since the inertia segment is comprised of loyal customers, an examination of brand equity and its role in customer loyalty and its influence on customer equity are discussed.

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