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

Author

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  • Verhoef, P.C.

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.

Suggested Citation

  • Verhoef, P.C., 2002. "The Joint Effect of Relationship Perceptions, Loyalty Program and Direct Mailing on Customer Share Development," ERIM Report Series Research in Management ERS-2002-27-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:174
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    More about this item

    Keywords

    customer loyalty; customer relationship management; marketing instruments marketing models; marketing research;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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