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From Customer Lifetime Value to Shareholder ValueTheory, Empirical Evidence, and Issues for Future ResearchBoston University
Quaero Corporation
University of Connecticut
Columbia University
Marketing Science Institute
University of Virginia The authors propose a chain of effects framework for understanding how customer lifetime value (CLV) affects shareholder value (SHV). In the chain of effects framework, the authors propose that CLV serves as an intermediary in the relationship between firm actions and SHV. They also introduce the notion of the "prescient" value of CLV called CLV-P, which captures the impact on CLV from future modifications to a firms business model as well as competitive reactions. Finally, they identify econometric and data-related challenges in establishing the link, which suggest directions for future research.
Key Words: customer lifetime value shareholder value customer relationship management
Journal of Service Research, Vol. 9, No. 2,
156-167 (2006) This article has been cited by other articles:
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