Customer Lifetime Value: Investigating the relationships among the key determinants; Commitment, Loyalty and Purchase Behavior

This study examined the customer asset management and the relationship between various constructs and firm characteristics on customer lifetime value(CLV).The relationship between marketing actions such as loyalty programs and the level of commitment and specifically the type of commitment and the type of loyalty that may be influenced by such a program were investigated.The main focus of the study was on the relationship between commitment and loyalty.Additional investigations were done on the impact that this may have on customer lifetime value.In terms of commitment,many researchers regard this as an important antecedent to customer retention but there have been conflicting or ambiguous empirical findings from various studies.In terms of loyalty ,many studies have similarly found that this concept is necessary for retention as well.This study examined the effects of the two dimensions of commitment on the two dimensions of loyalty.A survey was administered and a sample of 152 informants was analyzed using SEM with PLS-Graph 3.0 Build 1130 for inferential analysis and SPSS version 16.0 for descriptive analysis.The results show a significant relationship between affective commitment and attitudinal loyalty and behavioral loyalty and that continuance commitment is not significantly related to loyalty.In addition,the results indicate that affective commitment has a greater impact on loyalty than calculative commitment;however there was no significant relationship between attitudinal loyalty and CLV or between behavioral loyalty and CLV