Customer Equity Value Research Articles

Assessing the Role of Customer Equity in Corporate Valuation: A Review and a Path Forward

There is a growing opportunity to elevate the role of marketing by explicitly linking corporate valuation to customer activity. However, extant approaches to do so, most notably through customer equity (CE), have seen limited uptake in industry. The authors discuss three important reasons for this: (1) lack of agreement over how CE is (and should be) defined, (2) lack of consistency between CE and shareholder value, and (3) lack of congruence between the CE-based valuation process and how finance professionals currently perform corporate valuation. The authors develop a conceptual framework for an emerging concept called “customer-based corporate valuation” (CBCV) to remedy these issues and enhance adoption of a CE-based paradigm. The authors conclude with implications of these concepts for other marketing topics, including the accounting treatment of marketing investments.

Sustainable growth for the self-employed in the retail industry based on customer equity, customer satisfaction, and loyalty

In Korea, traditional retail districts face a serious situation whereby businesses in downtown areas face collapsing as local population declines: resulting in a decrease in self-employed sales and a declining local economy. Traditional retailers use ambiguous accounting and are reluctant to use credit cards, and thus, the overall reliability of their customer data is low. This paper solves this problem by applying the concept of customer equity (CE). We conducted an empirical analysis through questionnaires to identify differences in CE between traditional and new retail formats. The questionnaire consisted of questions related to CE (value equity, brand equity, relation equity), satisfaction, loyalty, and demographic characteristics. CE and satisfaction were measured on a 5-point Likert scale. A total of 400 surveys were completed, resulting in 391 usable returns for analysis in this study. In the regression analysis between CE and customer satisfaction, both old and new retail firms showed statistically significant effects. In the traditional retail industry, value equity and brand equity were statistically significant, while relation equity were not.

Research on Customer Equity Measurement of Commercial Website

Owing to the distinctiveness of business operation mode and profit acquisition style between commercial website and entity enterprise, traditional customer equity measurement model is not applicable to that of commercial website.Therefore,this paper combines the basic theory of customer equity with the features of commercial website and puts forward customer equity measurement of commercial website on the basis of ARIMA time series model,then further choose Sohu company as a case and calculate its customer equity value. Study results show that this model is not only accurate but highly feasible.