A sequence analysis approach to segmenting credit card customers

Ho, H; Tien, KM; Wu, A; Singh, S

A sequence analysis approach to segmenting credit card customers

Ho, H

Tien, KM Wu, A Singh, S

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Publisher:: ELSEVIER SCI LTD
Publication Type:: Journal Article
Citation:: Journal of Retailing and Consumer Services, 2021, 59
Issue Date:: 2021

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Field	Value	Language
dc.contributor.author	Ho, H https://orcid.org/0000-0002-0650-8716
dc.contributor.author	Tien, KM
dc.contributor.author	Wu, A
dc.contributor.author	Singh, S https://orcid.org/0000-0002-6996-0371
dc.date.accessioned	2021-12-06T07:29:00Z
dc.date.available	2021-12-06T07:29:00Z
dc.date.issued	2021
dc.identifier.citation	Journal of Retailing and Consumer Services, 2021, 59
dc.identifier.issn	0969-6989
dc.identifier.issn	1873-1384
dc.identifier.uri	http://hdl.handle.net/10453/152157
dc.description.abstract	© 2020 Elsevier Ltd This research examines the longitudinal relationships between patterns of customer loyalty behavior and firm financial outcomes in the context of credit card use. By examining credit card users' transactions with a focal bank and its competitors, this study creates a typology of loyalty behavior and employs a sequence analysis to segment customers on the basis of their behavioral patterns exhibited over time. The analysis results in six distinct customer segments: Loyalist, Switching Loyalist, Switching Defector, Defector, Dormant Loyalist, and Dormant Defector. We subsequently estimate the revenue, servicing costs, and profitability associated with each segment, and assess differences across segments. We discuss the implications for managing distinct credit card customer segments and optimizing the bank's marketing resource allocation.
dc.language	English
dc.publisher	ELSEVIER SCI LTD
dc.relation.ispartof	Journal of Retailing and Consumer Services
dc.relation.isbasedon	10.1016/j.jretconser.2020.102391
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	1503 Business and Management, 1505 Marketing, 1506 Tourism
dc.subject.classification	Marketing
dc.title	A sequence analysis approach to segmenting credit card customers
dc.type	Journal Article
utslib.citation.volume	59
utslib.for	1505 Marketing
utslib.for	1503 Business and Management
utslib.for	1505 Marketing
utslib.for	1506 Tourism
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Marketing Discipline
utslib.copyright.status	closed_access	*
pubs.consider-herdc	false
dc.date.updated	2021-12-06T07:28:59Z
pubs.publication-status	Published
pubs.volume	59

Abstract:

© 2020 Elsevier Ltd This research examines the longitudinal relationships between patterns of customer loyalty behavior and firm financial outcomes in the context of credit card use. By examining credit card users' transactions with a focal bank and its competitors, this study creates a typology of loyalty behavior and employs a sequence analysis to segment customers on the basis of their behavioral patterns exhibited over time. The analysis results in six distinct customer segments: Loyalist, Switching Loyalist, Switching Defector, Defector, Dormant Loyalist, and Dormant Defector. We subsequently estimate the revenue, servicing costs, and profitability associated with each segment, and assess differences across segments. We discuss the implications for managing distinct credit card customer segments and optimizing the bank's marketing resource allocation.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/152157