Журнал бизнеса и экономики

Dynamics of Customer Engagement

Abstract

Eman Abo Elhamd, Hamed M. Shamma, Mohamed Saleh and Ihab El-Khodary

Customer Engagement Value (CEV) is a crucial concept for measuring the comprehensive value of a customer without overvaluation or undervaluation. CEV consists of four main components that comprehensively capture the transactional and non-transactional behavior of a customer within a firm. Traditional models contributed to measuring the value of each CEV’s component separately. Only a few researchers contributed to constructing a comprehensive framework for CEV to combine its components altogether. Meanwhile, these previous models either were theoretical or utilized gamification concepts for describing the relationship between a firm and its customers. The objective of this paper is to design a more realistic and comprehensive framework that captures CEV’s components’ relationships using a non-linear model. The elasticity parameters the determine the effect of each component in this non-linear model are determined using an online survey. These parameters are plugged in a system dynamics model that its relationships are formulated based on that non-linear model. The proposed CEV’s system dynamics model is applied only using imperial data. It proved the significance of both purchasing and non-purchasing components in CEV. It is recommended to be applied to real-life data to confirm its effectiveness.