Customer equity management : the impact of strategy drivers and customer data management on customer equity outcomes

This research contributes to the field of customer equity by examining how important the strategy drivers of consumption and customer data management are in contributing to the value of the customer asset. A mixed methods approach focused on one sector: the Australian accommodation hotels. From this research, a deeper understanding of how to theorise, conceptualise and practice customer equity management has been achieved.

A consumer-based method for retailer equity measurement: Results of an empirical study

This research extends the consumer-based brand equity measurement approach to the measurement of the equity associated with retailers. This paper also addresses some of the limitations associated with current retailer equity measurement such as a lack of clarity regarding its nature and dimensionality. We conceptualise retailer equity as a four-dimensional construct comprising retailer awareness, retailer associations, perceived retailer quality, and retailer loyalty. The paper reports the result of an empirical study of a convenience sample of 601 shopping mall consumers at an Australian state capital city. Following a confirmatory factor analysis using structural equation modelling to examine the dimensionality of the retailer equity construct, the proposed model is tested for two retailer categories: department stores and speciality stores. Results confirm the hypothesised four-dimensional structure.

Customer equity drivers and future sales

Research on linking operational marketing inputs to customer attitudes and customer behavior has been gaining significance concomitant with the growing recognition that customers are market-based assets. In response to this, researchers and practitioners have proposed several conceptual models. Despite recent advances in research, the results are still inconclusive as to the relationship between customer attitude and future sales. A reason for this could be due to the paucity of studies combining survey-based data with behavioral data to understand better the drivers of customer behavior. With that in mind, the authors investigate the effects of customer perceptions of key marketing actions on customer attitudes and actual customer behavior as reflected by future sales. The authors propose that customer perceptions of value, brand, and relationship—“customer equity drivers”—affect loyalty intentions and future sales. The results of the study, which is based on a sample of 5694 customers of a large European do-it-yourself retailer, suggest that customer equity drivers can significantly predict future sales, even after the authors control for the current sales level.

Customer value based entry decision in International markets the concept of International Added Customer Equity

Market entry decisions are some of a firm's most important long-term strategic choices. Still, the international marketing literature has not yet fully incorporated the idea of relationship marketing in general, and the customer value concept in particular, as a basis for market entry decisions. This article presents some conceptual ideas about a customer value based market selection model. The metric International Added Customer Equity (IACE), a straightforward decision criterion derived from the customer equity concept is presented as an additional decision criterion for export market selection and ultimately market entry.

Az online fogyasztói elégedettségmérés hatása a vállalatok versenyképességére (Effect of the online-customer satisfaction’s measurement to the corporate’s competitiveness)

A versenyképes működés elengedhetetlen feltétele a fogyasztói elégedettség, melynek egyik meghatározó eleme az észlelt és elvárt minőség közti kapcsolat. A minőségi elvárások az internettel, mint napjaink egyik meghatározó csatornájával kapcsolatban is megfogalmazódtak már, így kapott jelentős szerepet az online szolgáltatás minőségének meghatározása, illetve ezzel összekapcsolódva az online fogyasztói elégedettségmérés. Jelen tanulmány első része szakirodalmi áttekintést nyújt az online szolgáltatás minőségének fogyasztói érzékelésével, értékelésével kapcsolatos elméletekről, melyek az online fogyasztók elégedettségmérésének alapját képezik. Ezután kerül sor a különböző mérési módszerek bemutatására, kiemelt szerepet szánva a szakirodalomban sokat tárgyalt E-S-QUAL és E-RecS-QUAL skálának. Az áttekintés középpontjában azok az elméletek állnak, melyek az online vásárlást is nyújtó honlapokra vonatkoznak. A cikk további része két empirikus kutatást tartalmaz. Az első az elégedettségmérés hazai helyzetét tárgyalja, a másik pedig a szakirodalomból ismert E-S-QUAL és E-RecS-QUAL skálákat felhasználva részletesen elemzi az elektronikus szolgáltatásminőség dimenziói és a fogyasztói elégedettség közötti fontosabb összefüggéseket, emellett röviden vizsgálja az alkalmazott skálák megbízhatóságát és érvényességét. A kutatás fő célja a gyakorlati szakemberek számára is releváns kapcsolatok feltárása és bemutatása. _______ A company’s competitiveness significantly depends on the satisfaction of its consumers, which is influenced by the relationship between the expected and perceived quality. As over the last decade internet has become a significant channel, in parallel its customers have built some expectation about the quality of different websites and online services. Therefore the marketing literature should focus on the dimensions of e-service quality (e-sq) and online-customer satisfaction. This study first resumes with different concepts of e-sq, which are the principles of the online-customer satisfaction’s measurement. Than the different e-sq measurement methods are reviewed and the dimensions of E-S-QUAL and ERecS- QUAL scales are deeply explained. The study is focusing on concepts relating to web shops. The next part of the article includes two empirical studies. The first is about the situation of satisfaction measurement at Hungarian companies. The other one analyzes the most relevant relationships between the dimension of e-sq and customer satisfaction based on the E-S-QUAL and E-RecS-QUAL scales for measuring e-sq and briefly outlines the reliability and validity of these scales. The main purpose of this empirical research is to summarise the managerial and practical implications.

Profitable Customer Management: A Study in Retail Banking

The increasing focus of relationship marketing and customer relationship management (CRM) studies on issues of customer profitability has led to the emergence of an area of research on profitable customer management. Nevertheless, there is a notable lack of empirical research examining the current practices of firms specifically with regard to the profitable management of customer relationships according to the approaches suggested in theory. This thesis fills this research gap by exploring profitable customer management in the retail banking sector. Several topics are covered, including marketing metrics and accountability; challenges in the implementation of profitable customer management approaches in practice; analytic versus heuristic (‘rule of thumb’) decision making; and the modification of costly customer behavior in order to increase customer profitability, customer lifetime value (CLV), and customer equity, i.e. the financial value of the customer base. The thesis critically reviews the concept of customer equity and proposes a Customer Equity Scorecard, providing a starting point for a constructive dialog between marketing and finance concerning the development of appropriate metrics to measure marketing outcomes. Since customer management and measurement issues go hand in hand, profitable customer management is contingent on both marketing management skills and financial measurement skills. A clear gap between marketing theory and practice regarding profitable customer management is also identified. The findings show that key customer management aspects that have been proposed within the literature on profitable customer management for many years, are not being actively applied by the banks included in the research. Instead, several areas of customer management decision making are found to be influenced by heuristics. This dilemma for marketing accountability is addressed by emphasizing that CLV and customer equity, which are aggregate metrics, only provide certain indications regarding the relative value of customers and the approximate value of the customer base (or groups of customers), respectively. The value created by marketing manifests itself in the effect of marketing actions on customer perceptions, behavior, and ultimately the components of CLV, namely revenues, costs, risk, and retention, as well as additional components of customer equity, such as customer acquisition. The thesis also points out that although costs are a crucial component of CLV, they have largely been neglected in prior CRM research. Cost-cutting has often been viewed negatively in customer-focused marketing literature on service quality and customer profitability, but the case studies in this thesis demonstrate that reduced costs do not necessarily have to lead to lower service quality, customer retention, and customer-related revenues. Consequently, this thesis provides an expanded foundation upon which marketers can stake their claim for accountability. By focusing on the range of drivers and all of the components of CLV and customer equity, marketing has the potential to provide specific evidence concerning how various activities have affected the drivers and components of CLV within different groups of customers, and the implications for customer equity on a customer base level.

Consumer-based brand equity conceptualisation and measurement: a literature review

Although there is a large body of research on brand equity, little in terms of a literature review has been published on this since Feldwick's (1996) paper. To address this gap, this paper brings together the scattered literature on consumer-based brand equity's conceptualisation and measurement. Measures of consumer-based brand equity are classified as either direct or indirect. Indirect measures assess consumer-based brand equity through its demonstrable dimensions and are superior from a diagnostic level. The paper concludes with directions for future research and managerial pointers for setting up a brand equity measurement system.

Consumer-based brand equity conceptualization and measurement:a literature review

Although there is a large body of research on brand equity, little in terms of a literature review has been published on this since Feldwick’s (1996) paper. To address this gap, this paper brings together the scattered literature on consumer based brand equity’s conceptualisation and measurement. Measures of consumer based brand equity are classified as either direct or indirect. Indirect measures assess consumer-based brand equity through its demonstrable dimensions and are superior from a diagnostic level. The paper concludes with directions for future research and managerial pointers for setting up a brand equity measurement system.

Does the importance of value, brand and relationship equity for customer loyalty differ between Eastern and Western cultures?

The use of the customer equity framework as a focal marketing strategy to increase customer loyalty has emerged as an important topic. Despite a growing number of investigations, previous studies are limited by their strong U.S. and European orientations. Research into Western consumers cannot necessarily predict the behaviour of Eastern consumers though. Therefore, this study investigates whether the link between customer equity drivers (value equity, brand equity and relationship equity) and loyalty intentions is sensitive to the cultural environment. A sample of 1553 Chinese and 1085 Dutch consumers in the banking and supermarket industries reveals that all three customer equity drivers exert a greater impact in Western than in Eastern cultures. This study also shows that Eastern consumers in general have higher loyalty intentions than Western consumers. © 2013.

Dimensionalising on- and off-line brands' composite equity

This paper approaches the subject of brand equity measurement on and offline. The existing body of research knowledge on brand equity measurement has derived from classical contexts; however, the majority of today's brands prosper simultaneously online and offline. Since branding on the Web needs to address the unique characteristics of computer-mediated environments, it was posited that classical measures of brand equity were inadequate for this category of brands. Aaker's guidelines for building a brand equity measurement system were thus followed and his brand equity ten was employed as a point of departure. The main challenge was complementing traditional measures of brand equity with new measures pertinent to the Web. Following 16 semi-structured interviews with experts, ten additional measures were identified.

Customer repurchase intention: a general structural equation model

This paper develops a general service sector model of repurchase intention from the consumer theory literature. A key contribution of the structural equation model is the incorporation of customer perceptions of equity and value and customer brand preference into an integrated repurchase intention analysis. The model describes the extent to which customer repurchase intention is influenced by seven important factors – service quality, equity and value, customer satisfaction, past loyalty, expected switching cost and brand preference. The general model is applied to customers of comprehensive car insurance and personal superannuation services. The analysis finds that although perceived quality does not directly affect customer satisfaction, it does so indirectly via customer equity and value perceptions. The study also finds that past purchase loyalty is not directly related to customer satisfaction or current brand preference and that brand preference is an intervening factor between customer satisfaction and repurchase intention. The main factor influencing brand preference was perceived value with customer satisfaction and expected switching cost having less influence.

A taxonomy of measures for consumer-based brand equity:drawing on the views of managers in Europe

Purpose: The purpose of this paper is to identify the components of consumer-based brand equity from the perspective of experts in brand management in the UK, Germany and Greece. Design/methodology/approach: Data were collected from semi-structured interviews with senior brand consultants and managers, five in the UK, five in Germany and five in Greece. Findings: The findings suggested four categories of measures which can be used to define brand equity. These are the consumers' understanding of brand characteristics; consumers' brand evaluation; consumers' affective response towards the brand; and consumers' behaviour towards the brand. Specific dimensions are identified as indicators of each category. Research limitations/implications: Although the focus of this study is Europe, data were only collected from the UK, Germany and Greece, countries representing three of the five European cultural clusters. The resultant taxonomy adds to the fragmented literature on brand equity measurement by proposing four categories to gauge brand equity. Practical implications: The suggested taxonomy provides indicators of a framework managers could use when assessing brand equity. Originality/value: There is little agreement on what constitutes brand equity and therefore measures of brand equity are fragmented. To date, the views of practicing managers have not been taken into account in research. This paper draws on the views of practitioners and academics to suggest a taxonomy of categories of measures for brand equity. © Emerald Group Publishing Limited.