The Relevance of Positive Word-of-Mouth Effects on the Customer Lifetime Value - A Replication and Extension in the Context of Start-ups

Manuel Grossmann, Christian Brock, Marco Hubert and Thomas Reimer

SMR - Journal of Service Management Research, 2019, vol. 3, issue 3, 148-160

Abstract: This paper investigates the importance of positive word-of-mouth (WOM) effects on estimating the customer lifetime value (CLV) in start-up businesses. In line with prior research, we assume that, especially in young companies such as start-ups, managers and investors neglect the impact of WOM and therefore underestimate the CLV. To examine this assumption, self-collected WOM data is integrated into calculation of the CLV of a one-yearold online grocery retailer start-up. The CLV of 632 customers is combined with a survey about positive WOM activities. The study shows the high relevance of WOM for start-ups in a noncontractual as well as service setting, thereby calling for integration of WOM into calculation of the CLV.

Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.nomos-elibrary.de/10.15358/2511-8676-2019-3-148 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nms:nomsmr:10.15358/2511-8676-2019-3-148

Ordering information: This journal article can be ordered from
Nomos Verlagsgesellschaft mbH & Co. KG, Waldseestraße 3-5, 76530 Baden-Baden, Germany
https://www.nomos-sh ... -research-id-114066/

DOI: 10.15358/2511-8676-2019-3-148

Access Statistics for this article

SMR - Journal of Service Management Research is currently edited by Prof. Dr. Marion Büttgen, Prof. Dr. Andreas Eggert, Prof. Dr. Heiner Evanschitzky, Prof. Dr. Christiane Hipp, Prof. Dr. Jens Hogreve, Prof. Dr. Joachim Hüffmeier, Prof. Dr. Helmut Krcmar and Prof. Dr. Martin Matzner

More articles in SMR - Journal of Service Management Research from Nomos Verlagsgesellschaft mbH & Co. KG
Bibliographic data for series maintained by Nomos Verlagsgesellschaft mbH & Co. KG ().