Apply Cox proportional hazard model to create customer loyalty index with case study of smartphone service industry

• Main Authors: Guan-Lin,Huang, 黃冠霖
• Other Authors: Yu-Ching Chang
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/h4b7bd

碩士 === 國立成功大學 === 工業與資訊管理學系碩博士班 === 101 === The goal of the enterprise operation is to earn profit under limited resources. Customers are the source of the profit and loyal customers can bring stable income. Since the cost of finding new customers is much higher than retaining the existing customers, creating a customer loyalty index and then managing customer loyalty have become a major issue for business nowadays. In this study, we propose a customer loyalty index by Cox proportional hazards model. Our method integrates customer prognostic factors, consumer behavior, service quality, customer satisfaction, and switching costs into our model to evaluate the probability of loss of customers. Let the loss of customer as the event, we calculate hazard ratio for each customer respect to a reference point. Our method is applied to a case from the smartphone service industry. The results showed that mobile connection quality, the gap between expectations and reality, the customer re-patronage intentions, and the age of customer may affect events of loss of customers. Finally, according to hazards ratio to group and sort the customers, the management will have a better view of current distribution of customer loyalty.