Customer Value and Its Contribution to the Longevity of Relationship with Service Provider: the Case of Theatre Industry Cover Image

Customer Value and Its Contribution to the Longevity of Relationship with Service Provider: the Case of Theatre Industry
Customer Value and Its Contribution to the Longevity of Relationship with Service Provider: the Case of Theatre Industry

Author(s): Aistė Dovalienė, Regina Virvilaitė
Subject(s): Economy
Published by: Kauno Technologijos Universitetas
Keywords: customer value; value determinants; long-term relationships; customer behavioral intentions; theatre product

Summary/Abstract: After there had been proved the benefits of customer retention for an enterprise, the numerous researchers were directed their efforts towards finding the best solutions to achieve customer relationship longevity. Identification of the main predictors of long-term customer relationships still is a relevant object of scientific researches. This article emphasizes that creation and delivery of unique customer value is a basis for most marketing decisions, enabling to attract new customer as well as to retain recent one. So the clarification of determinants of customer value becomes the main task for enterprises working in today’s competitive market environment. The analysis of more recent studies on question under investigation showed, that despite the abundance of scientific literature, still there is not reached consensus on customer value research possibilities as well as on the value concept itself. Furthermore disagreement occurs when considering customer value impact on behavioral intentions. Considering different methodological approaches analyzing customer value, it can be maintained that clarification of customer value, its determinants and their importance on customer relationships longevity is still relevant object for scientific discussions and necessitates further theoretical and empirical studies. Having analyzed scientific literature on the possibilities to identify the main factors influencing customer value creation and its delivery, it was pointed out that different concepts, which explain value creation and its delivering from customer perspective, are closely linked together, however, there is no any obvious criteria identified yet that might ensure the one best way to distinguish customer value determinants. So referring to a literature analysis the concept of extended product was chosen for identification of customer value determinants in order to reveal contribution of customer value to relationships longevity. It is suggested that components comprising different product’s levels might be viewed as the customer value determinants, and integration of customer evaluation analysis from the components viewpoint allows identifying critical enterprise activity areas related to customer relationship development and taking adequate customer retention decisions. Theatre sector is selected for the empirical research and analysis of theatre product and its attributes as customer value determinants is carried out. First of all an expression of customer value determinants in different theatres are presented, revealing its dependence on socio-demographic factors and the character of customer’s involvement into relationships with theatre. And finally, the relations between customer value determinants and customer longevity, expressed in terms of intention to visit once again, intention to recommend and intention to subscribe, was determined.

  • Issue Year: 2008
  • Issue No: 1 (56)
  • Page Range: 66-73
  • Page Count: 8
  • Language: English