An empirical investigation of the factors affecting customer lifetime value

PurposeThe 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 commitm...

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Bibliographic Details
Published in:The International journal of quality & reliability management 2022-03, Vol.39 (4), p.910-935
Main Authors: Dandis, Ala' Omar, Al Haj Eid, Mohammad Badi’, Robin, Robin, Wierdak, Nathalie
Format: Article
Language:English
Subjects:
Brand loyalty
Coronaviruses
COVID-19
Credibility
Customer relationship management
Customer satisfaction
Customer services
Digital economy
Economic growth
Empirical analysis
GDP
Gross Domestic Product
Intelligence services
Internet access
Internet service providers
Lifetime
Marketing
Profits
Purchase intention
Quality of service
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Summary:PurposeThe 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/approachAn 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.FindingsResults 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 implicationsServices' providers seeking to increase CLV need to build strong and sustainable relationships with their customers.Originality/valueThis 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.
ISSN:0265-671X
1758-6682
DOI:10.1108/IJQRM-12-2020-0412