An empirical investigation of the factors affecting customer lifetime value
International Journal of Quality & Reliability Management
ISSN: 0265-671X
Article publication date: 24 June 2021
Issue publication date: 7 March 2022
Abstract
Purpose
The main objective of this paper is to investigate the factors affecting customer lifetime value (CLV) for Internet service providers in Jordan, namely, technical quality, functional quality, brand credibility, confidence benefits, special treatment benefits, customer satisfaction and commitment.
Design/methodology/approach
An online survey was conducted involving a sample of 481 respondents. SPSS was used to analyse the data and test the proposed relationships, while SmartPLS was used to examine the robustness of our results.
Findings
Results showed that confidence benefits, special treatment benefits and brand credibility had a significant and positive impact on customer satisfaction and commitment, with brand credibility appearing as the most influential factor leading to customer satisfaction and commitment, and ultimately CLV. Furthermore, research reveals an insignificant relationship between functional quality, technical quality and customer satisfaction.
Practical implications
Services' providers seeking to increase CLV need to build strong and sustainable relationships with their customers.
Originality/value
This study incorporates a set of crucial customer relationship management strategies that could be universally applied to enhance customers benefits and business performance. This is also the first study of its kind conducted in the Middle East, particularly in Jordan.
Keywords
Acknowledgements
The first author is grateful to the Applied Science Private University, Amman, Jordan, for the financial support granted to this research project.
Citation
Dandis, A.O., Al Haj Eid, M.B., Robin, R. and Wierdak, N. (2022), "An empirical investigation of the factors affecting customer lifetime value", International Journal of Quality & Reliability Management, Vol. 39 No. 4, pp. 910-935. https://doi.org/10.1108/IJQRM-12-2020-0412
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited