Customer segmentation using unobserved heterogeneity in the perceived value-loyalty-intentions link

Floh, Arne and Zauner, Alexander and Koller, Monika and Rusch, Thomas (2014) Customer segmentation using unobserved heterogeneity in the perceived value-loyalty-intentions link. Journal of Business Research, 67 (5). pp. 974-982. ISSN 0148-2963


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Multiple facets of perceived value perceptions drive loyalty intentions. However, this value-loyalty link is not uniform for all customers. In fact, the present study identifies three different segments that are internally consistent and stable across different service industries, using two data sets: the wireless telecommunication industry (sample size 1,122) and the financial services industry (sample size 982). Comparing the results of a single-class solution with finite mixture results confirms the existence of unobserved customer segments. The three segments found are characterized as "rationalists", "functionalists" and "value maximizers". These results point the way for value-based segmentation in loyalty initiatives and reflect the importance of a multidimensional conceptualization of perceived value, comprising cognitive and affective components. The present results substantiate the fact that assuming a homogeneous value-loyalty link provides a misleading view of the market. The paper derives implications for marketing research and practice in terms of segmentation, positioning, loyalty programs and strategic alliances. (authors' abstract)

Item Type: Article
Additional Information: To see the final version of this paper please visit the publisher's website. Access to the published version requires a subscription.
Keywords: customer segmentation / perceived value / unobserved heterogeneity / finite mixture modeling
Divisions: Departments > Finance, Accounting and Statistics > Statistics and Mathematics
Version of the Document: Accepted for Publication
Depositing User: ePub Administrator
Date Deposited: 06 May 2013 08:33
Last Modified: 13 Dec 2017 02:24
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