Abstract
The business model of the Internet industry determine the important role that users play in Internet companies. According to the theory of economies of scale, the increase in the number of users can promote the growth of Internet companies' income by reducing costs, thereby enhancing the market value of Internet companies. However, it is the user that leading to the mostly uncertainty in the Internet market, and the increase in the number of users does not mean the increase in user activity and user stickiness. Therefore, this paper constructs three key factors of customer value: audience scale, user stickiness, and purchasing power. They are the key to creating value for a company. After analyzing the relationship between customer value and enterprise value by using 3635 balanced panel data from 727 Internet companies from year 2013 to year 2017. It is found that the three dimensions of customer value have a non-linear relationship with an asymmetric threshold between enterprise values, respectively.
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