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J·BJon BishopIndependent growth marketer

Acquisition and retention · Analytical model tested with cross-country firm-level operating data

Customer Acquisition and Retention Spending: An Analytical Model and Empirical Investigation

Sungwook Min, Xubing Zhang, Namwoon Kim, Rajendra K. Srivastava (2016). Customer Acquisition and Retention Spending: An Analytical Model and Empirical Investigation. Journal of Marketing Research. https://doi.org/10.1509/jmr.14.0170

Journal of Marketing Research · 2016DOI: 10.1509/jmr.14.0170 ↗

Plain-English take

Acquisition cost per customer is more sensitive than retention cost to market position and competition; market leaders have a substantial acquisition-cost advantage but no comparable retention-cost advantage.

How much weight to give this

2/5 Observational or survey evidence; interpret as association

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

Analytical model tested with cross-country firm-level operating data

Sample · 0.5/1

Wireless telecommunications firms in 41 countries, 1999–2007

Comparison · 0.5/1

Comparison details need confirmation in the full paper.

Can we check it? · 0/1

Only the publisher page was checked; full-text methods are not established.

Double-blind? Blinding was not established from the publisher page; this is not evidence that blinding was or was not used.

Research question

What the authors investigated

Customer Acquisition and Retention Spending: An Analytical Model and Empirical Investigation?

Design

Analytical model tested with cross-country firm-level operating data

Sample and setting

Wireless telecommunications firms in 41 countries, 1999–2007

Reported result

What the study found

Acquisition cost per customer is more sensitive than retention cost to market position and competition; market leaders have a substantial acquisition-cost advantage but no comparable retention-cost advantage.

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

The analysis uses archival wireless-telecom data from 1999–2007 and inferred cost relationships rather than randomized interventions, limiting causal interpretation and applicability to newer or non-telecom services. The accessible publisher page was used for this listing; correction history was not independently checked.

Possible founder application

Use as a bounded example of customer acquisition and retention spending: an analytical model and empirical investigation; compare its context and design with your own market before applying its result.

Evidence access

Publisher article page; full-text availability varies and was not established in this review.

The page states that the empirical investigation uses firm-level operating data from wireless telecommunications markets in 41 countries during 1999–2007 and finds acquisition cost is more sensitive to market position and competition than retention cost. Publisher page was directly retrieved; detailed full-text methods were not independently verified.

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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