International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Assessing the Moderating Effects of Competitive Intensity, Endogenous Parameters and Indirect Effects on Customer Equity and Financial Performance Link
Dr Amue, Gonewa j; Dr. Igwe, Sunny r

The link between customer lifetime value and financial performance has accelerated much research concern in marketing domain. The main purpose of this paper is to assess the moderating effects of the moderator variables on the link between customer equity and financial performance relationships. The paper presents a holistic model of financial performance incorporating customer retention, customer acquisition and add-on offers. Data from twenty quoted money deposit banks in Nigeria showed that customer retention, customer acquisition efforts and add-on selling have a direct linear relationship with financial performance measure. Also, competitive intensity and endogenous parameter significantly moderate the relationship between customer equity and financial performance. However, the moderating effect of indirect effects on add-on offers and profitability was statistically insignificant. Reliance on indirect effects to accelerate profit in the organization could be a risky strategy.

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