An integrated model for customer equity estimation based on brand equity

Abstract

Brand equity (BE) and customer equity (CE) are the two crucial and closely linked concepts in marketing research. This research outlines a new conceptual framework to explore the relationship between the critical elements of BE and CE. Furthermore, using marketing activities, the study quantifies the effect of these activities on CE. The value of CE is computed based on a customer lifetime value (CLV) model in which linear, logistic, and beta regression are used to predict BE, customer acquisition, and customer share of wallet, respectively. We conducted an empirical analysis through questionnaires in an elevator company. The results reveal that brand knowledge and brand differentiation positively relate to customer acquisition. Also, for both existing customers and prospects, brand differentiation plays an important role in the share of wallet. The findings also show that marketing activities have a positive and significant impact on brand knowledge and brand differentiation, and consequently, through the mediating role of BE between marketing activities and CE, on customer acquisition and share of wallet.