Examining the impact of price sensitivity on customer lifetime value: empirical analysis

Abstract

This study examines how price sensitivity parameters affect customer lifetime value in the luxury business. Quality, position, information, time, and customer lifetime were examined as price sensitivity factors followed by a conceptual model and research hypotheses were produced based on previous studies. Secondary analysis and in-depth interviews with industry specialists and customers. A representative sample of 232 A class consumers was included in a survey that was given to A-class customers in Egypt. A new level of price sensitivity known as ‘quality positioning value’ was found through the use of factor analysis. Multiple discriminant analysis was performed to validate the hypotheses and Cronbach’s alpha was utilised to assess the reliability of the data. This analysis sheds light on the effect of price sensitivity on customer lifetime value in the luxury industry.

Keywords

• Price sensitivity
• quality value
• position value
• time value
• information value
• customer lifetime value (CLV)