 Recommendation and repurchase intention thresholds: A joint heterogeneity response estimationYing Jin and Meng Su International Journal of Research in Marketing, 2009, vol. 26, issue 3, 245-255 Abstract: Recommendation and repurchase intentions are the two most important dimensions of customer loyalty. Latent satisfaction thresholds at the individual level, if obtained, can function as an additional valid and effective criterion for satisfaction ratings in determining customer loyalty. To improve the existing estimation methodology on satisfaction thresholds, this paper proposes a joint heterogeneity response model to simultaneously calibrate the individual-level recommendation and repurchase thresholds through a joint specification over the heterogeneity. It conducts a simulation study to examine the parameter recovery and model validation. This paper further applies the method to two different datasets of satisfaction surveys in the automotive industry, with the first involving owners of vehicles of a single brand, and the second involving owners of vehicles of multiple brands. The results from the two empirical studies show that the proposed model consistently outperforms the two competing models and the extant approach. In addition, the results provide different insights into enhancing customer loyalty by using a new segmentation scheme based on estimated satisfaction thresholds. Date: 2009 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ijrema:v:26:y:2009:i:3:p:245-255 DOI: 10.1016/j.ijresmar.2009.06.004 Access Statistics for this article International Journal of Research in Marketing is currently edited by Roland Rust More articles in International Journal of Research in Marketing from Elsevier |
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