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THE IMPACT OF CUSTOMER RELATIONSHIP
CHARACTERISTICS ON PROFITABLE LIFETIME DURATION:
PUBLICATION STRENGTHS & WEAKNESSES
Introduction
“The impact of customer relationship characteristics on profitable lifetime duration”, by W. ... Kumar (R&K) touches the much reviewed and analyzed subject of relationship marketing with a particular focus on the virtually virgin territory of non-contractual business to consumer relationship duration and upkeep. The need to maintain long profitable relationships with customers has shown a surge in importance for the majority of today’s organizations, and is unlikely to fade in the foreseeable future. ...
The paper starts off with a general introduction to the field of relationship marketing, informing us about its importance within practically every firm today, considering the significance of keeping durable and profitable relationships with customers. The authors then scan previous research done in the area of lifetime duration, concluding that further research was necessary, not only in duration of customer relations, but also in the characteristics of the profitability of the latter. Next, the authors delve into an explanation of their four fundamental research objectives (quoting R&K 2003):
• Empirically measure lifetime duration for non-contractual consumer-firm relationships, incorporating projected profits;
• Demonstrate the superiority of our proposed framework […];
• Understand the structure of profitable relationships and test the factors that affect a customer’s profitable lifetime duration; and
• Develop managerial implications for building and managing profitable relationship exchanges. ...
After briefly having a closer look at these key objectives Reinartz and Kumar attempt to elaborate on what defines profitable lifetime duration. ... general merchandise catalogue retailer, they move on to describe the method for calculating profitable customer lifetime duration. ...
The analysis and testing of the factors that affect a customer’s profitable lifetime duration is then included (see research and analysis methodology for further details on this analysis).
Approximate Word count = 1379
Approximate Pages = 5.5
(250 words per page double spaced)
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