00738003

Component

https://doi.org/10.3141/1567-05

http://scholar.google.com...omas&publication_year=1997

The proliferation of customer data bases is a direct consequence of firms' drive toward efficient customer-firm interactions. With regard to customer-firm interactions, firms have focused on customer retention rates. Using a customer data base, firms try to identify the most valuable customers within that data base. After identifying these customers, firms attempt to develop strategies and tactics that increase the retention of the most valued customers and maximize the profitability of the entire base of customers. With this goal in mind, common firm practices that have arisen are the offering of rewards, free additional services, and add-on selling. The impact of rewards, additional services, and add-on selling on the customer equity of a trade association in the aviation industry is examined. In particular a model that examines the impact that these factors have on customer retention and firm profitability is developed. This model is tested on a membership data base from a service organization that offers membership rewards, additional free services, and fee-based products to aircraft owners and pilots. The findings from this research have implications for how trade associations should develop marketing programs and strategically manage and target their most valuable customers.

This paper appears in Transportation Research Record No. 1567, Public-Sector Aviation Issues: Graduate Research Award Papers 1995-1996.

English

p. 33-40

1997

Transportation Research Record

0309059712

References (10) ; Tables (2)

Customers; Econometric models; Equity (Finance); Incentives; Level of service; Marketing; Profitability; Sales

Customer retention; Rewards; Services

Aviation; Economics; Finance; Highways; Society

TRIS, TRB

Jun 24 1997 12:00AM

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