This study aims to examine how the mobile social network service experience affects value co-creation and customer lifetime value. The mobile social network service experience includes mobile convenience, social compatibility, social risk, and cognitive effort. The research hypotheses with structural equation modeling are tested. In mobile SNS context, value co-creation behaviors essentially determine customer lifetime value of mobile shopping apps. Value co-creation behaviors have received little attention in mobile shopping. The mobile SNS experience strongly influences value co-creation behaviors. This study is based on a sample of mobile SNS users nationwide in Korea. Therefore, the generalizability of the findings has to be tested. Furthermore, the study examines customer lifetime value, which is good sales predictor of mobile shopping apps. Moreover, the research model included the positive and negative determinants on mobile SNS experience. Future researches examine other use intentions of mobile SNS. Value co-creation behaviors substantially affect customer lifetime value. Mobile shopping apps should increase customer lifetime value from mobile SNS experience and value co-creation. This study shows how individual mobile SNS user provides mobile shopping apps with profit through value co-creation. This study is the first to examine how mobile SNS users enhance value co-creation and how value cocreation behaviors affect customer lifetime value of mobile SNS users.

In this empirical study, an attempt is made to show how the Customer Lifetime Value (CLV) can be computed by modeling multiple components of the customer and firm behavior. Specifically, attention will be given to modeling (1) the probability that a customer is likely to buy, (2) the quantity of purchase given that they will buy, and (3) the cost of marketing to each customer. Once the authors compute each of these inputs, they combine them to compute CLV using the net present value concept. The authors will examine multiple ways of computing purchase probabilities depending on the customer’s buying pattern. They will also discuss the estimation challenges in obtaining such inputs for computing CLV. The authors will demonstrate the implementation with a case study for a fashion retailer and what kind of managerial actions can be taken. Finally, a generalizable framework for all fashion retailers to maximize profits will be presented and discussed.

Customers are regarded as the key intangible assets of a company. It is necessary to have the capability to anticipate customer value. The study discusses the relationship among customer value anticipation, product innovativeness, and customer lifetime value from customer perspective. 178 MBA students were surveyed by questionnaire in this study. The results show that customer perceived customer value anticipation can significantly influence product innovativeness. Product innovativeness not only positively affects customer lifetime value, but also plays a partial mediating role between customer value anticipation and customer lifetime value. Both functional and emotional advertising can play a moderating role on the relationship between product innovativeness and customer lifetime value. At the end, managerial implications are discussed.