Global Journal of Business Management

ISSN 2736-1721

Global Journal of Business Management ISSN 6731-4538 Vol. 5 (6), pp. 001-008, June, 2011. © International Scholars Journals

Full Length Research Paper

The customer lifetime value in Taiwanese credit card market

Qianpin Li1* and Chen Chang2

1Faculty of Business and Laws, Edith Cowan University, Australia.

2Department of Public Finance, Jinwen University of Science and Technology, Taiwan.

Accepted 9 February, 2011

Abstract

Evaluating customer lifetime value (CLV) is becoming increasingly important in order for firms to identify and invest the limited resources on their different customers. We showed how the publicly available information can be used to estimate the lifetime value of any credit card holder. A comparative analysis is used in this paper to explore the presumable relationship between CLV and shareholder value. And we provided a link between customer and shareholder value. The findings were expected to encourage corporate decision-makers to rethink their customer-centric strategies by which both CLV and shareholder value might step up significantly.

Key words: CLV, shareholder value, credit card market, Taiwan.