Customer Lifetime Value Model in Perspective of Firm and Customer: Practical Issues and Limitation on Prospecting Profitable Customers of Hypermarket Business

Abdul Manaf Bohari, Ruslan Rainis, Malliga Marimuthu

Research output: Contribution to journalArticlepeer-review

Abstract

Most of business scholars claim customer lifetime value is the top priority issues in the world wide business operation includes for hypermarket business setting. Theoretically, prospecting lifetime value of customers in the marketplace is the main platform for determine how long the hypermarket can survive, at lease 3 to 5 years in future. In fact, customer lifetime value is become top strategic issues during the global meltdown economy because of it major affects on hypermarket profitability, both for current and future of business. Practically, there are two main streams for estimating lifetime value of customers, as identified as firm perspective and customer perspectives. As implication, there are arising some practical and implementation issues on it. The paper is purposely for discussed customer lifetime value model issues faced by the two main streams perspectives. Specifically, limitation of both perspectives is highlighted by using the hypermarket business as environment setting of discussion. In addition, some suggestion was point-out to tackle the problems.
Original languageEnglish
Pages (from-to)161-169
Number of pages9
JournalInternational Journal of Business and Management
Volume6
Issue number8
DOIs
Publication statusPublished - Aug 2011
Externally publishedYes

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