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Decision Model and Pricing Strategies for Customer Retention Based on Customer Identification |
SUN Shu-Lei, LU Xiao-Wei, ZHANG Qing-Min, WANG Hai |
1.NUFE, Nanjing, China; 2. Chinese Continent Property & Casualty Insurance Co., Ltd., Shanghai, China |
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Abstract This paper proposes the theoretical framework and model of decision making of customer retention based on customer identification. First, it proposes the 3dimentional framework model of customer identification, which incorporates the dimensions of Customer Lifetime Value, Customer Perceived Value, and Accessibility under Competition. Second, it analyses the significance of customer identification to customer retention theoretically through establishing customer identification model. Third, it explains the procedure and method of customer retention decisionmaking based on customer identification. Finally, by establishing the decisionmaking model of customer retention, it analyses the pricing strategies incorporating the factor of customer loyalty under two pricing modes respectively, which are uniform pricing and discriminating pricing.
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Received: 26 December 2009
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