The Price of Customer Engagement : How Substitution in Online Services Leads to Decreasing Revenues

Jerry Lindholm; Maurits Kaptein; Petri Parvinen

doi:10.1007/978-3-319-10912-1_181

The Price of Customer Engagement : How Substitution in Online Services Leads to Decreasing Revenues

Jerry Lindholm^*, Maurits Kaptein, Petri Parvinen

^*Corresponding author for this work

Department of Marketing

Eindhoven University of Technology

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceedings › Scientific › peer-review

Abstract

Customer engagement in online communities seems to be key to building a successful online business. We show that while at an aggregated level customer activity and customer spending are indeed positively related, the contrary is the case at an individual level: Customer engagement in online communities substitutes spending. Substitution effects emerging from reveling can explain this empirical finding: Customers satisfy their needs for products or services by experiencing them online without purchasing them. These findings suggest that marketers should be cautious about actively increasing online customer engagement.

Original language	English
Title of host publication	Developments in Marketing Science: Proceedings of the Academy of Marketing Science
Publisher	Springer
Pages	538-547
Number of pages	10
DOIs	https://doi.org/10.1007/978-3-319-10912-1_181
Publication status	Published - 2015
MoE publication type	A4 Conference publication
Event	Academy of Marketing Science Annual Conference - Baltimore, United States Duration: 20 May 2009 → 23 May 2009

Publication series

Name	Developments in Marketing Science: Proceedings of the Academy of Marketing Science
Publisher	Springer
ISSN (Print)	2363-6165
ISSN (Electronic)	2363-6173

Conference

Conference	Academy of Marketing Science Annual Conference
Abbreviated title	AMS
Country/Territory	United States
City	Baltimore
Period	20/05/2009 → 23/05/2009

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10.1007/978-3-319-10912-1_181

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Lindholm, J., Kaptein, M., & Parvinen, P. (2015). The Price of Customer Engagement : How Substitution in Online Services Leads to Decreasing Revenues. In Developments in Marketing Science: Proceedings of the Academy of Marketing Science (pp. 538-547). (Developments in Marketing Science: Proceedings of the Academy of Marketing Science). Springer. https://doi.org/10.1007/978-3-319-10912-1_181

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abstract = "Customer engagement in online communities seems to be key to building a successful online business. We show that while at an aggregated level customer activity and customer spending are indeed positively related, the contrary is the case at an individual level: Customer engagement in online communities substitutes spending. Substitution effects emerging from reveling can explain this empirical finding: Customers satisfy their needs for products or services by experiencing them online without purchasing them. These findings suggest that marketers should be cautious about actively increasing online customer engagement.",

author = "Jerry Lindholm and Maurits Kaptein and Petri Parvinen",

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doi = "10.1007/978-3-319-10912-1_181",

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Lindholm, J, Kaptein, M & Parvinen, P 2015, The Price of Customer Engagement : How Substitution in Online Services Leads to Decreasing Revenues. in Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Developments in Marketing Science: Proceedings of the Academy of Marketing Science, Springer, pp. 538-547, Academy of Marketing Science Annual Conference, Baltimore, Maryland, United States, 20/05/2009. https://doi.org/10.1007/978-3-319-10912-1_181

The Price of Customer Engagement : How Substitution in Online Services Leads to Decreasing Revenues. / Lindholm, Jerry; Kaptein, Maurits; Parvinen, Petri.
Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Springer, 2015. p. 538-547 (Developments in Marketing Science: Proceedings of the Academy of Marketing Science).

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceedings › Scientific › peer-review

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AB - Customer engagement in online communities seems to be key to building a successful online business. We show that while at an aggregated level customer activity and customer spending are indeed positively related, the contrary is the case at an individual level: Customer engagement in online communities substitutes spending. Substitution effects emerging from reveling can explain this empirical finding: Customers satisfy their needs for products or services by experiencing them online without purchasing them. These findings suggest that marketers should be cautious about actively increasing online customer engagement.

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Lindholm J, Kaptein M, Parvinen P. The Price of Customer Engagement : How Substitution in Online Services Leads to Decreasing Revenues. In Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Springer. 2015. p. 538-547. (Developments in Marketing Science: Proceedings of the Academy of Marketing Science). doi: 10.1007/978-3-319-10912-1_181

The Price of Customer Engagement : How Substitution in Online Services Leads to Decreasing Revenues

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