Customer Lifetime Value Model in Perspective of Firm and Customer: Practical Issues and Limitation on Prospecting Profitable Customers of Hypermarket Business

Abdul Manaf Bohari, Ruslan Rainis, Malliga Marimuthu

Abstract


Most of business scholars claim customer lifetime value is the top priority issues in the world wide business
operation includes for hypermarket business setting. Theoretically, prospecting lifetime value of customers in the
marketplace is the main platform for determine how long the hypermarket can survive, at lease 3 to 5 years in
future. In fact, customer lifetime value is become top strategic issues during the global meltdown economy
because of it major affects on hypermarket profitability, both for current and future of business. Practically, there
are two main streams for estimating lifetime value of customers, as identified as firm perspective and customer
perspectives. As implication, there are arising some practical and implementation issues on it. The paper is
purposely for discussed customer lifetime value model issues faced by the two main streams perspectives.
Specifically, limitation of both perspectives is highlighted by using the hypermarket business as environment
setting of discussion. In addition, some suggestion was point-out to tackle the problems.


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International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

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