Causal-predictive model of customer lifetime/ influence value: mediating roles of memorable experiences and customer engagement in hotels and airlines

Abstract

This study integrates memorable experience (MEM)into customer engagement (CE) by introducing two composites, namely, customer lifetime value and customer influence value [CLV/CIV], as proxies for traditional revisit intention. Drawing upon CE theory and the service–profit chain framework, our causal-predictive model of CLV and CIV extends the MEM literature by identifying two potential antecedents, namely, employee engagement and service innovation. Based on 596 respondents who rated ahotel or airline, our findings indicate that MEM functions as afull mediator between EE/SI and CE. Moreover, SI and MEM are identified as the most salient driver of CLV.