Customer Lifetime Value Incorporating Negative Behavior: Measurement and Comparison

Jiana-Fu Wang ()
Additional contact information
Jiana-Fu Wang: National Chung Hsing University

A chapter in LISS 2014, 2015, pp 897-901 from Springer

Abstract: Abstract Some customers might have negative behavior that harms a company’s benefit. In this study, we emphasize on incorporating negative behavior incurred by these customers into the calculation of customer lifetime value (CLV) when doing business with them. Data from a railway e-booking system was adopted for a case study. The invisible cost of cancellation was incorporated along with the revenue of ticket selling into the calculation of CLV. From the results, we conclude that our model has a good estimation about the customers’ real values and can cherry-pick out customers with higher values than the traditional CLV models. By cherry-picking customers, lower cancellation rate and higher customer satisfaction are expected.

Keywords: Customer lifetime value; CLV; Reservation system; Cancellation (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-3-662-43871-8_129

Ordering information: This item can be ordered from
http://www.springer.com/9783662438718

DOI: 10.1007/978-3-662-43871-8_129

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().