Customer retention and price matching: The AFPs case |
| |
Authors: | Pedro Hidalgo |
| |
Institution: | Business Department, School of Economic and Business, Universidad de Chile, Diagonal Paraguay 257, Santiago, Chile |
| |
Abstract: | 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. |
| |
Keywords: | AFP CLV Chilean pension system Customer lifetime value Customer retention Price defectors |
本文献已被 ScienceDirect 等数据库收录! |
|