Ala' Omar Dandis, Mohammad Badi’ Al Haj Eid, Robin Robin and Nathalie Wierdak
The main objective of this paper is to investigate the factors affecting customer lifetime value (CLV) for Internet service providers in Jordan, namely, technical quality…
Abstract
Purpose
The main objective of this paper is to investigate the factors affecting customer lifetime value (CLV) for Internet service providers in Jordan, namely, technical quality, functional quality, brand credibility, confidence benefits, special treatment benefits, customer satisfaction and commitment.
Design/methodology/approach
An online survey was conducted involving a sample of 481 respondents. SPSS was used to analyse the data and test the proposed relationships, while SmartPLS was used to examine the robustness of our results.
Findings
Results showed that confidence benefits, special treatment benefits and brand credibility had a significant and positive impact on customer satisfaction and commitment, with brand credibility appearing as the most influential factor leading to customer satisfaction and commitment, and ultimately CLV. Furthermore, research reveals an insignificant relationship between functional quality, technical quality and customer satisfaction.
Practical implications
Services' providers seeking to increase CLV need to build strong and sustainable relationships with their customers.
Originality/value
This study incorporates a set of crucial customer relationship management strategies that could be universally applied to enhance customers benefits and business performance. This is also the first study of its kind conducted in the Middle East, particularly in Jordan.
Details
Keywords
Ala' Omar Dandis and Mohammad Badi' Al Haj Eid
This paper investigates the factors affecting customer lifetime value from an attitudinal and behavioural brand loyalty perspective in the Internet service industry. Specifically…
Abstract
Purpose
This paper investigates the factors affecting customer lifetime value from an attitudinal and behavioural brand loyalty perspective in the Internet service industry. Specifically, willingness to pay more and word of mouth are categorised under attitudinal loyalty, while repurchase intention is classified under behavioural loyalty.
Design/methodology/approach
A self-administered questionnaire online survey via Google Forms was employed comprising a sample of 481 participants from the Internet service providers. The partial least squares structural equation modeling (PLS-SEM) approach was applied for hypotheses testing.
Findings
The current study found that “brand credibility, special treatment benefits and confidence benefits had a positive and significant influence on willingness to pay more, word of mouth and repurchase intention, with confidence benefits and brand credibility showing as the greatest elements resulting in word of mouth and repurchase intentions, whereas special treatment benefits showing as the greatest element resulting in the willingness to pay more. The results of this study did not show any positive significant between service quality dimensions and true brand loyalty (word of mouth, willingness to pay more and repurchase intention). Results also found that confidence benefits, brand credibility and special treatment benefits had an indirect impact on true brand loyalty through customer satisfaction”.
Practical implications
Internet service providers should develop and maintain good relationships with their customers as the excellence of the customer–service provider relationship can enhance customer lifetime value.
Originality/value
The current work measured customer lifetime value in terms of both the behavioural and attitudinal aspects to represent loyalty, while most previous studies consider only one dimension for this representation. Particularly, customers' true brand loyalty is measured using separate components of repurchase intentions (RIs), willingness to pay more (WPM) and word of mouth (WOM) to deepen the understanding of both managerial interest and academic.