customer acquisition cost is higher than the average lifetime value of . . . customers’’ (Hoffman and Novak, 2000, p. 179). In addition to customer acquisition costs, retaining and winning back lost customers requires a variety of ongoing costs (Griffin and Lowenstein, 2001a,b) such as marketing expenditures that help to build value equity (i.e., quality and convenience), brand equity (e.g., awareness and image), and relationship equity (e.g., loyalty or rewards programs) (Rust et al., 2000). Customer…
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