The Impact of Exchange Characteristics on Customer Profitability: A Case Study of a Ceramic Tile Manufacturing Company

This study was conducted in a ceramic tile production company to test the impact of a set of exchange characteristics on customer profitability. After developing hypotheses based on previous studies, we prepared the company's sales database, which includes 160 customers and 5,245 purchases, in order to calculate customer profitability and the exchange characteristics offered by the database. The results showed that both cross-buying and the amount of the first purchase positively impact customer profitability, while no effect of focused buying on customer profitability has been proven. This study provides important implications for managers and academic researchers, allowing them to understand the drivers of current customer profitability and provide insight into future customer profitability.