The impact of different price promotions on customer retention
Abstract
This paper investigates the impact of different price promotion effects regarding two different types of service cost (i.e., a joining fee vs. a monthly fee) on retention intentions for new customers in the long-term service industry. Based on the depreciation curve, mental accounting, and the escalation of commitment theory, we predict that customers’ retention intentions will be higher when they start using a service with a free monthly fee...
Paper Details
Title
The impact of different price promotions on customer retention
Published Date
Jan 1, 2019
Volume
46
Pages
95 - 102
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