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J·BJon BishopIndependent growth marketer

Pricing and product adoption · Conceptual model and customer-level analyses in two industries

Customer Acquisition Promotions and Customer Asset Value

Lewis, M. (2006). Journal of Marketing Research, 43(2), 195–203.

Journal of Marketing Research · 2006DOI: 10.1509/jmkr.43.2.195 ↗

Plain-English take

In both datasets, deeper acquisition discounts were associated with lower repeat-buying rates and lower customer asset value. For your marketing: Compare the long-term value of discounted and full-price cohorts, accounting for selection and acquisition cost.

How much weight to give this

2.5/5 Limited or context-dependent evidence

The 1–5 evidence-check score is a practical reading aid, not a formal peer review or a probability that a conclusion is true. It combines design strength (2 points), sample reporting (1), comparison/control clarity (1), and how much of the paper could be checked (1). Access affects how confidently this directory can assess a study, not the study's underlying quality. Blinding is reported separately because it is not relevant to every design.

Design · 1/2

This is theory or a framework, not a direct empirical test of the marketing outcome.

Sample · 0.4/1

A usable sample size is not stated in the profile's accessible source.

Comparison · 0.55/1

No participant control group; conclusions are conditional on the model or synthesis assumptions.

Can we check it? · 0.5/1

This profile could be checked against an abstract or metadata, not the full paper.

Double-blind? Not applicable in the same way as a participant-treatment experiment.

Research question

What the authors investigated

How do acquisition discounts affect the mix and long-term value of customers a firm acquires?

Design

A conceptual model of customer uncertainty is paired with customer-level empirical analyses from a newspaper and an online grocer.

Sample and setting

Customer data from one newspaper and one online grocery retailer; the abstract does not state sample sizes.

Reported result

What the study found

In both datasets, deeper acquisition discounts were associated with lower repeat-buying rates and lower customer asset value. The abstract reports that customers acquired with a 35% discount had about half the long-term value of customers acquired without a promotion.

This is a paraphrase of the source. Check the original paper for definitions, estimates, statistical uncertainty and analysis details.

Scope and transfer

Limitations to keep in view

Two businesses in newspaper and online grocery markets; the value gap is not a SaaS acquisition benchmark. The abstract describes empirical relationships and does not claim randomized discount assignment.

Possible founder application

Compare the long-term value of discounted and full-price cohorts, accounting for selection and acquisition cost. A lower initial conversion cost can bring customers with weaker repeat economics.

Evidence access

Publisher abstract

Journal of Marketing Research publisher abstract; industry contexts and headline relationship are reported there.

If only an abstract or metadata was available, the profile is limited to claims supported there. A paper's paywall does not change its evidentiary status, but it limits what we can substantiate from accessible text.

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