Why are some modes of acquisition more profitable A study of the credit card industry

Journal of Financial Services Marketing

Volumn 16, Issue 2, 2011, Pages 90-100

  Steffes, Erin M ^a   Murthi, B P S ^b   Rao, Ram C ^b  

^a TOWSON UNIVERSITY   (United States)

^b UNIVERSITY OF TEXAS AT DALLAS   (United States)

Author keywords

CRM; customer acquisition; customer lifetime profi tability; customer profi tability; customer Relationship Management

Indexed keywords

EID: 80054873764     PISSN: 13630539     EISSN: 14791846     Source Type: Journal    
DOI: 10.1057/fsm.2011.13     Document Type: Article

References (26)

1. Bolton, R., Kannan, P. K. and Bramlett, M (2000) Implications of loyalty programs and service experiences for customer retention and value. Journal of Academy of Marketing Science, Special Issue on Services Marketing 28 (1):95-108.
2. Reinartz, W. J., Thomas, J. S. and Kumar, V (2005) Balancing acquisition and retention resources to maximize profi tability. Journal of Marketing 69 (January):63-79. (Pubitemid 40195119)
3. Venkatesan, R. and Kumar, V (2004) A customer lifetime value framework for customer selection and resource allocation strategy. Journal of Marketing 68 (October):105-125.
4. Verhoef, P. C. and Donkers, B (2005) The effect of acquisition channel on customer loyalty and cross buying. Journal of Interactive Marketing 19 (2):31-43. (Pubitemid 40763468)
5. Woosley, B. and Schulz, M (2010) Credit card statistics, industry facts, debt Statistics, http://www.creditcards.com/credit-card-news/credicard-industry- facts-personaldebt-statistics-1276.php, accessed 27 August 2010.
6. Min, I. and Kim, J. H (2003) Modeling credit card borrowing: A comparison of type I and type II approaches. Southern Economic Journal 70 (1):128-143. (Pubitemid 36931487)
7. Garcia, G (1980) Credit cards: An interdisciplinary study. Journal of Consumer Research 6 (March):327-337.
8. Kumar, V. and Reinartz, R. J (2006) Customer Relationship Management: A Databased Approach. Hoboken, NJ: John Wiley & Sons.
9. Cardozo, R. N (1965) An experimental study of consumer effort, expectation, and satisfaction. Journal of Marketing Research 2:244-249.
10. Clarke, K. and Belk, R (1979) The effect of product involvement and task defi nition on anticipated consumer effort. Advances in Consumer Research 6 (1):313-318.
11. Mulhern, F (1999) Customer profi tability analysis: Measurement concentration, and research directions. Journal of Interactive Marketing 13 (1):25-40.
12. Keane, T. J. and Wang, P (1995) Applications for the lifetime value model in modern newspaper publishing. Journal of Direct Marketing 9 (2):59-66.
13. Wyner, G. A (1996) Customer profi tability: Linking behavior to economics. Marketing Research 8 (2):36-38.
14. Dwyer, R. F (1997) Customer lifetime valuation to support marketing decision making. Journal of Direct Marketing 11 (Fall):6-13.
15. Wayland, R. E. and Cole, P. M (1997) Customer Connections: New Strategies for Growth. Boston, MA: Harvard Business School Press.
16. Blattberg, R. C. and Deighton, J (1996) Manage marketing by the customer equity test. Harvard Business Review 74 (4):136-144.
17. Rust, R. T., Zeithaml, V. A. and Lemon, K. N (2000) Driving Customer Equity: How Customer Lifetime Value is Reshaping Corporate Strategy. New York, NY: The Free Press.
18. Blattberg, R. C., Getz, G. and Thomas, J. S (2001) Customer Equity: Building and Managing Relationships as Valuable Assets. Boston, MA: Harvard Business School Press.
19. Berger, P. D. and Nasr, N. I (1998) Customer lifetime value: Marketing models and applications. Journal of Interactive Marketing 12 (1):17-30. (Pubitemid 128466820)
20. Reinartz, W. J. and Kumar, V (2000) On the profi tability of long-life customers in a noncontractual setting: An empirical investigation and implications for marketing. Journal of Marketing 64 (October):17-35.
21. Reinartz, W. J. and Kumar, V (2003) The impact of customer relationship characteristics on profi table lifetime duration. Journal of Marketing 67 (January):77-99. (Pubitemid 36161225)
22. Reichheld, F. F. and Sasser, W. E (1990) Zero defections: Quality comes to services. Harvard Business Review 65 (5):105-111.
23. Morgan, R. M. and Hunt, S. D (1994) The commitmenttrust theory of relationship marketing. Journal of Marketing 58 (July):30-37.
24. Mathews, L. H. and Slocum, J. W (1969) Social class and commercial bank credit card usage. Journal of Marketing 33 (January):71-78.
25. Mathur, A. and Moschis, G. P (1994) Use of credit cards by older Americans. Journal of Services Marketing 8 (1):27-36.
26. Gross, D. B. and Souleles, N. S (2002) Do liquidity constraints and interest rates matter for consumer behavior? Evidence from credit card data. Quarterly Journal of Economics 117:149-185.