Dissertation
WHAT MAKES CUSTOMERS CROSS-BUY, UPGRADE, OR REINSTATE SERVICES
Doctor of Philosophy (PhD), Washington State University
01/2018
Handle:
https://hdl.handle.net/2376/117016
Abstract
This dissertation extends the limited extant research on customers’ behaviors to cross-buy, upgrade, and reinstate services. Cross-buy, upgrade, and reinstatement behaviors are important elements in improving customer lifetime value. Yet, a relatively small part of customer relationship management research has made efforts to understand these behaviors. To expand our understanding of those behaviors, I provide three essays that examine antecedents of customers’ behavior to cross-buy, upgrade, and reinstate services. Drawing on mental budget theory and utility theory, in conjunction with large transactional data and survey responses analysis, Essay One shows that the consumer’s preference of prepayment is an important antecedent of future cross-buying behavior. This study also shows that the negative relationship between prepayment decisions and the future cross-buying behavior becomes more salient when the customer is new to the company. Essay Two explores the antecedents of upgrade decisions at reinstatement. I was particularly interested in studying the influence of prior experiences, namely customers’ prior complaining behaviors and referral intentions, on the upgrade decision that is determined concurrently with reinstatement. Based on large transactional data analysis, I find that lapsed customers’ negative experiences in the first lifetime positively influence the upgrade decision at reinstatement. Further, I also find that this positive relationship between prior negative experience and the upgrade decision at reinstatement becomes more salient when those with negative past experience perceive strong responsibility for the reinstatement decision. Essay Three investigates the communication strategies to win back lapsed customers. Based on large transactional data and two survey responses analysis, I find that a positively framed message (a message framed to emphasize gain of complying with the message) is more efficient than a negatively framed message (a message framed to emphasize loss of not complying with the message) in winning back lapsed customers. Further, this positive effect of positively framed win-back messages is attenuated when the lapsed customer has dissatisfaction related reasons of defection.
Metrics
9 File views/ downloads
21 Record Views
Details
- Title
- WHAT MAKES CUSTOMERS CROSS-BUY, UPGRADE, OR REINSTATE SERVICES
- Creators
- Shin Hye Kim
- Contributors
- Alberto Sa Vinhas (Advisor)U.N. Umesh (Committee Member)David E. Sprott (Committee Member)
- Awarding Institution
- Washington State University
- Academic Unit
- Carson College of Business
- Theses and Dissertations
- Doctor of Philosophy (PhD), Washington State University
- Number of pages
- 160
- Identifiers
- 99900581624101842
- Language
- English
- Resource Type
- Dissertation