The Assessment of Customer Retention within Luxury Segment: Case of Skincare Product

Abstract: This thesis tries to study luxury customers’ perception in order to gain better
understanding for relationship management and customer retention. Our research
was narrowed down to study the effects of different quality dimensions and switching
costs on customer retention through interviews in focus groups. According to the
thesis findings regarding quality, object quality matters the most to the luxury customers. While
process and infrastructure quality were the least important ones. In terms of switching costs,
luxury customers tend to worry about performance greatly, however other known switching
barriers e.g. financial
problems do not worry them significantly.