NDLI: Customer value impact of sales contests

Content Provider	Springer Nature Link
Author	Garrett, Jason Gopalakrishna, Srinath
Copyright Year	2010
Abstract	Although firms spend more than $26 billion annually on sales contests, no empirical research has investigated the effects of contests on individual customers. While some short-term firm effects of contests have been documented, the impact on long-term customer value has remained a matter of speculation. This research investigates the long-term customer impact of sales contests, by applying the customer value framework. We add to previous research that has used customer value of marketing programs by employing the acquired, retained, and add-on framework to segment customers based on their purchase history. We develop hypotheses drawing on theories in the buyer behavior, customer loyalty, and sales management domains. By disaggregating the overall customer value into initial and subsequent components, we demonstrate a greater long-term value per customer in the retained customer cohort and lower short-term and long-term value per customer among the two other cohorts (acquired and add-on customers). There is no adverse impact on other drivers of customer value such as customer churn and purchase frequency. While our study focuses on individual customer effects, we note the significantly higher volume of customers during the contest leads to a positive aggregate-level assessment. We conclude by discussing the implications of our findings for managers and researchers.
Starting Page	775
Ending Page	786
Page Count	12
File Format	PDF
ISSN	00920703
Journal	Journal of the Academy of Marketing Science
Volume Number	38
Issue Number	6
e-ISSN	15527824
Language	English
Publisher	Springer US
Publisher Date	2010-02-02
Publisher Institution	Academy of Marketing Science
Publisher Place	Boston
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Sales contests Customer loyalty Customer value Sales management Incentives Buyer behavior Marketing programs Social Sciences Marketing Business/Management Science
Content Type	Text
Resource Type	Article
Subject	Business and International Management Economics and Econometrics Marketing

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
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