Customer segmentation using unobserved heterogeneity in the perceived-value-loyalty-intentions link

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Multiple facets of perceived value perceptions drive loyalty intentions. However, this
value-loyalty link is not uniform for all customers. In fact, the present study identifies three
different segments that are internally consistent and stable across different service industries,
using two data sets: the wireless telecommunication industry (sample size 1,122) and the
financial services industry (sample size 982). Comparing the results of a single-class solution
with finite mixture results confirms the existence of unobserved customer segments. The three
segments found are characterized as "rationalists", "functionalists" and "value maximizers".
These results point the way for value-based segmentation in loyalty initiatives and reflect the
importance of a multidimensional conceptualization of perceived value, comprising cognitive
and affective components. The present results substantiate the fact that assuming a
homogeneous value-loyalty link provides a misleading view of the market. The paper derives
implications for marketing research and practice in terms of segmentation, positioning, loyalty
programs and strategic alliances. (authors' abstract)
Original languageEnglish
Pages (from-to)974 - 982
JournalJournal of Business Research
Issue number5
Publication statusPublished - 1 Feb 2014

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