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| Sales Impact of Lifetime-Behavior-Based Customer Tier Program |
| WU Banggang，YU Qi，CHEN Yubo |
| Tsinghua University, Beijin, China |
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Abstract Based on the data from JD.com, this study applies the regression discontinuity design in a quasi-experimental setting, and examines the causal relationship between customer tier program and user purchase behavior. It is found that the customer tier program significantly increases customer purchase behavior, particularly purchase frequency. Furthermore, we test three potential explanations for the observed results including economic rewards, social identity, and customer engagement. We empirically exclude the first two explanations and provide evidence that higher tier customers have more customer engagement.
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Received: 20 September 2017
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