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The driving factor of customer retention: Empirical study on bank card

  • Jing Bo Shao*
  • , Zhe Wang
  • , Xuan Xuan Long
  • *Corresponding author for this work
  • School of Management, Harbin Institute of Technology
  • School of Economics and Management, Harbin Engineering University

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

The former research on customer retention and customer acquisition shows that, remaining a customer is more valuable than gaining a new one. So the driving factors of customer retention should be confirmed so as to explore the policy and means to prevent customer defection. The influence of customer satisfaction, customer value, switching cost and relationship trust on customer retention has been analyzed. The research hypotheses are proposed and customer retention driving factor model is constructed. Customers in Chinese bankcard business in a city have been investigated as research objects in the questionnaire survey and the structural equation model is used for validating the hypothesis. The results show that, customer satisfaction, customer value, switching cost and relationship trust are driving factors of customer retention, and they all positive correlated with it. Besides, there are positive correlation between customer satisfaction and customer value, customer satisfaction and relationship trust.

Original languageEnglish
Title of host publication2008 International Conference on Management Science and Engineering 15th Annual Conference Proceedings, ICMSE
Pages558-564
Number of pages7
DOIs
StatePublished - 2008
Externally publishedYes
Event2008 International Conference on Management Science and Engineering 15th Annual Conference, ICMSE - Long Beach, CA, United States
Duration: 10 Sep 200812 Sep 2008

Publication series

Name2008 International Conference on Management Science and Engineering 15th Annual Conference Proceedings, ICMSE

Conference

Conference2008 International Conference on Management Science and Engineering 15th Annual Conference, ICMSE
Country/TerritoryUnited States
CityLong Beach, CA
Period10/09/0812/09/08

Keywords

  • Customer retention
  • Customer satisfaction
  • Customer value
  • Relationship trust
  • Switching cost

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