Customer Equity Research Articles

Advancing algorithmic bias management capabilities in AI-driven marketing analytics research

Algorithms in the age of artificial intelligence (AI) constantly transform customer behaviour, marketing programs, and marketing strategies in industrial markets. However, algorithms often fail to perform as expected due to various data, model, and market biases. Motivated by this challenge, this study presents a framework of algorithmic bias management capabilities for industrial markets that contribute to customer equity in terms of value, brand and relationship equity. Drawing on the dynamic capability theory, this study fills this gap by conducting a literature review, thematic analysis, and two rounds of surveys (n=200 analytics professionals and n=200 business customers) in the financial service industry in Australia. The findings show that algorithmic bias management capability consists of three primary dimensions (data, model, and deployment capabilities) and nine subdimensions. These findings have important implications for scholars and managers interested in developing algorithmic bias management capabilities to influence customer equity in industrial markets.

A comparative study on the strategic roles of service customer equity and innovation protection on firm performance

PurposeThe purpose of this study is to understand the strategic roles of service customer equity (SCE) and innovation protection on firm performance (FP).Design/methodology/approachStructural equation modeling (SEM) was used to test the proposed model. The authors tested the model using managerial data from two countries: USA and India.FindingsThe findings of this study indicated positive direct impacts of service innovation (SI) on FP and positive indirect impacts via SCE in both samples. SI and SCE impacts on FP were both stronger in the US samples. However, the effect of SI on SCE is stronger in India than in the USA. This study also identified moderating impacts of service innovation protection (SIP) on the relationship between SI and FP in the Indian sample and between SI and SCE in the US sample.Originality/valueAlthough there is scholarly research in SI and its impact on FP, there are no studies the authors identified that discuss the moderating effect of SIP. The authors studied the moderating effect of SIP because (1) it is crucial for industries to maintain a competitive advantage in the marketplace, (2) it protects industries investment in research and development and (3) it also protects industries intellectual property, such as trademark, copyrights and patents. There are two key contributions of this study: (a) investigating the effect of SCE between SI and FP and (b) investigating the moderating effect of SIP using managerial data from two countries (USA vs India).

Investigating the Effect of Drivers of Customer Equity on Continuance Use Intention of Branded Apps

Customer equity, which is one of the key factors in modern marketing, has been recognized as an influential factor in customer loyalty and their behavioral intention. To better understand and manage customers' or users' behavioral intentions, it is necessary to find out the effect of customer equity on them. Customer equity includes the three main drivers of value equity, brand equity and relationship equity. The present research also seeks to investigate the effect of customer equity drivers on customer continuance use intention, as well as the mediating role of brand loyalty in this regard. The statistical population of the research was the users of Instagram app in a public university in Tehran. The results of the data analysis showed that the brand equity affects the brand loyalty, the relationship equity influences brand loyalty, value equity impacts customer behavioral intention, relationship equity affects customer behavioral intention and brand loyalty is effective on customer behavioral intention.

Customer Engagement, Customer Equity, and Their Influence on Consumer Repurchase Intention in E-Commerce Mobile Applications

The focus of this research is to determine the effect of customer engagement on repurchase intention using the customer equity dimension mediating the mobile e-commerce application at Shopee Indonesia company. Customer equity has three dimensions: value equity, brand equity, and relationship equity. The research approach is quantitative, with a purposive sampling technique, and the research sample is 160 respondents. This study identified modeling with Structural Equations Analysis (SEM) with SmartPLS 3.29. The findings of this study are that the variable customer engagement has a positive and significant effect on the dimensions of customer equity (value equity, brand equity, and relationship equity). Dimensions of customer equity (value equity, brand equity, and relationship equity) positively and significantly affect repurchase intention. Customer engagement has an indirect and significant positive effect on repurchase intentions mediated by customer equity dimensions (value equity, brand equity, and relationship equity).

Engaging the customer with augmented reality and employee services to enhance equity and loyalty

PurposeThis study aims to understand customer equity and loyalty using augmented reality (AR) and employee services in a physical retail environment. The current study investigated how customers’ experiences with AR-based and employee service affect their satisfaction, equity and loyalty.Design/methodology/approachA conceptual framework was developed by reviewing AR and employee services literature. The Smart PLS-SEM technique was used to test the responses of 620 Chinese respondents empirically.FindingsThe findings provided valuable insights into AR and employee services in a physical retail environment. Customers are more inclined to use AR services in the current business climate.Research limitations/implicationsThis study’s sample was drawn from a single city, with a total of 620 respondents, which may not be a complete representation of China as a whole. As a result, the results may not be generalizable to a single city.Practical implicationsRetail brand managers should emphasize implementing innovative technologies in the physical retail environment to retain and attract customers. Pandemic consumers are opting for innovative technologies as part of their shopping experience due to changes in business models.Originality/valueThe researchers recognized AR and employee services as innovative domains in physical retail stores because they can increase sales, customer equity and loyalty. As a result, the framework results are precious to practitioners interested in implementing such innovative technologies for retail stores.

Management of Customer Lifetime Value in Organizations

Companies should focus on customer lifetime value, its management, and on profitable customers for company growth. The objective of the study is to analyze customer lifetime value and to manage it effectively. The methodology adopted is a conceptual analysis of various aspects of customer lifetime value and its management. Companies should appreciate the importance of customer lifetime value and the connections among customer lifetime value, brand equity, and customer equity. They should develop and build customer lifetime value through various measures (viz., improvement in customer services, customer engagement, enhancing the growth potential of customers, management of unprofitable customers, rewarding profitable customers, and developing customer touch points). They should develop customer loyalty through trust and measure customer lifetime value. Academicians may suggest models that are effective in measuring customer lifetime value and identifying profitable customers. Managers may suggest effective strategies and initiatives for better management of customer lifetime value.

Environmental CSR, Customer Equity Drivers, and Travelers’ Critical Outcomes: A Stimulus–Organism–Response Framework

While environmental corporate social responsibility (CSR) has gained increased attention in sustainable tourism research, little is known about its impacts on customers in the context of the airlines. This study investigates the impact of environmental CSR on two critical customer outcomes, namely, purchase intention (PI) and switching behavior (SB). In light of the stimulus–organism–response (S-O-R) framework, this study further examines the joint mediating impact of customer equity drivers (CEDs) in the previously mentioned relationships. With a sample of Iranian air travelers, the results of the structural equation model revealed that environmental CSR significantly affects CEDs. While CEDs predict PI, they failed to reduce SB. Hence, CEDs jointly mediate the impact of environmental CSR on PI only. The results of the current study reveal nuances in the service marketing research by extending the impact of environmental CSR on travelers’ PI and SB via CEDs. Theoretical and practical implications are provided.

The effects of brand collaboration with the online game on customer equity and purchase intention: moderating effect of fashion brand type

PurposeThis study aims to investigate the relationship between collaboration product attributes, consumption value, customer equity and purchase intention – specifically, the moderating effect of fashion brand type (luxury and sports).Design/methodology/approachOnline game and fashion (luxury and sports) brands were selected and online game items showing items' logos were used as stimuli. A total of 328 South Korea consumers answered a survey. The hypotheses were tested using a structural equation model (SEM).FindingsCollaboration product attributes influence consumption value, which links to customer equity. Customer equity increases purchase intention. The multi-group analysis confirmed the difference between variables according to the brand.Research limitations/implicationsResearch on collaboration with the online environment is limited. This study provides theoretical background for future research and suggests multiple items to measure collaboration product attributes.Practical implicationsFashion brands can utilize online games to extend target markets. However, consumers perceive collaboration products differently depending on the brand types. Thus, companies should consider brand characteristics or identity when designing collaboration products with online games.Originality/valueThis study focuses on collaboration of fashion brands in the online environment. The results will help fashion brands establish relevant brand extension strategies.

Satellite fans’ team identification, nostalgia, customer equity and revisit intention: symmetric and asymmetric analysis

ABSTRACT This study investigated causal antecedents’ symmetric and asymmetric effects on satellite fans’ intention to revisit the home ground of their favorite sports teams through the lens of appraisal theory of emotion and complexity theory. Results showed that team identification affected revisit intention through sport nostalgia and customer equity. The fuzzy set qualitative comparative analysis (fsQCA) suggested five different configurations that can explain the formation of satellite fans’ revisit intention. In particular, “value equity” and “nostalgia as personal identity” were essential for explaining satellite fans’ revisit intention. This study contributes to a better understanding of satellite fans’ behaviors.

Differential Impact of Customer Equity Drivers on Satisfaction: The Case of China’s Telecommunications Industry

As the necessity of customer relationship management (CRM) increases, measuring the performance of CRM have been actively discussed. Customer equity (CE) is regarded as an appropriate indicator for evaluating the outcomes of marketing activities. There are three drivers of CE: brand, value, and relationship equity. This study aims to investigate the impact of three drivers on customer satisfaction. Market competition is an environmental factor that affects the effectiveness of CRM. This study divides target firms into leaders and followers. This study found that the differential impact of CE drivers on customer satisfaction depends on the firm’s status (leader or follower). Specifically, the brand equity driver significantly impacts the leader firm. However, the impacts of value and relationship equity drivers are bigger for follower firms. The above results suggest that firms need to build CRM strategies that consider the competitive situation of the market and their position.

Effect of Social Media Marketing of Luxury Brands on Brand Equity, Customer Equity and Customer Purchase Intention

Effect of Social Media Marketing of Luxury Brands on Brand Equity, Customer Equity and Customer Purchase Intention

Economic policy uncertainty nexus with the value relevance of advertising: Evidence from an emerging market

AbstractThis paper aims to document the effect of economic policy uncertainty on the value of advertising expenditures within the context of an emerging market. The paper shows that the value of advertising expenditures is an increasing function of economic policy uncertainty. The impact of advertising on firm performance is more pronounced during the periods characterized by higher economic policy uncertainty. We argue that, during uncertain times, the financial information loses its relevance. Therefore, during these periods, non‐financial traits, such as brand image, customer equity, relationship capital, and familiarity that characterizes firms with high advertising become more important. The findings hold in various sub‐samples and across various proxies of advertising activity. The findings also hold under alternate estimation procedures (pooled OLS regression, panel data with fixed effects and instrument variable regression). More importantly, this paper also shows that, relative to other agency reducing mechanisms (such as analyst coverage, asset utilization ratio, expense ratio and dividend payments), advertising is more valuable during periods with high economic policy uncertainty.

The Effect of Customer Equity on Brand Commitment and Brand Switching on Samsung Smartphone Users

One of the benefits of smartphones in terms of software is the availability of data access services. The large selection of products offered by smartphone companies allows brand switching to occur. This brand shift occurred because of the decline in the community's economy due to Covid-19 which made people tend to buy goods at cheaper prices, although cheap, they can be utilized and used according to the functions and needs of consumers. This research is important because it is so that business owners know what things make consumers commit and switch to a brand. This research was conducted in Badung Regency, and the number of samples used was 110 respondents. Data was collected using a questionnaire survey approach. Data were analyzed using PLS (Partial Least Square) data analysis technique. The results of this study indicate that Customer Equity has a positive and significant effect on brand switching. Customer Equity has a positive and significant effect on brand commitment. Brand commitment has a negative and significant impact on brand switching. Brand commitment is positively and significantly able to mediate customer equity and brand switching.

Exploring the relationship between social media marketing activities and customer equity in the training context: a literature review and a case study approach

Exploring the relationship between social media marketing activities and customer equity in the training context: a literature review and a case study approach

Reconciling the Customer Equity and the Brand Equity Perspectives on the Financial Value of Marketing

Reconciling the Customer Equity and the Brand Equity Perspectives on the Financial Value of Marketing

Increasing customer equity through social media content and engagement

Increasing customer equity through social media content and engagement

AI service impacts on brand image and customer equity: empirical evidence from China

AI service impacts on brand image and customer equity: empirical evidence from China

Value Creation Measurement and Management in Times of Radical Social and Technological Change

This article tries to deepen our knowledge on the nature of value creation and management in times of turbulent environments both for business management and academic research. The current uncertainties in our economy—coming from exogenous shocks (e.g., financial crises, political standoffs [US–China], pandemic and Ukrainian war) or from demand for more sustainable activities—affect existing companies and provide opportunities for new ventures. Both type of firms need to think of innovative and out-of-the-box ideas to keep generating value for all stakeholders, and particularly to their customers. The nuanced understanding of the factors describing the current economic situation and their effect on value creation and management affects management by, for example, efficient use of resources, and assists in strategy formulation and decision-making. Customer value creation is a dual concept: creating value for customers (value-to-customer [V2C]) as well as extracting some of that customer value at the same time to create value for the firm (value-to-firm [V2F]). While this might be known, it is rarely implemented. In order to deliver V2C, firms should look at the customer journey from a customers’ point of view rather than a firms’ point of view. Only then, the real revenue potential can be realized when thinking about monetizing the customer interface and, hence, developing the customer relationship options beyond the current business. Even if it exists for a long time already, customer lifetime value (CLV) und customer equity (CE) are the right techniques to measure and manage value in such times. Besides, in today’s environment, the gap between CLV and CE and shareholder value needs to be closed. Existing customer-based corporate valuation studies do exactly so and, more importantly, will become even more important in the future due to new business models.

Effective marketing strategies for global FMCG brands during COVID-19 pandemic crisis

PurposeThis study proposes marketing strategies for global fast-moving consumer good (FMCG) brands to survive and thrive in the turbulent economic environment created by COVID-19. The authors investigate the indirect effects of consumer ethnocentrism (CET) and consumer confidence (CC) on customer equity drivers (CEDs)’ effectiveness in influencing repurchase intention (RI) for global FMCG brands.Design/methodology/approachThis study uses the mall-intercept technique. Respondents were randomly approached at popular retail and shopping destinations in Athens, Greece, and 228 customer participants completed the survey.FindingsCET and CC weaken the positive relationship between certain CEDs and RI of FMCG brands. Particularly, the effects of relationship equity (RE) and value equity (VE) on strengthening repeated purchases are higher for low-confidence or low-ethnocentric consumers. Thus, marketing strategies for enhancing value and creating stronger consumer–brand relationships are more effective in boosting repeated purchases during economic turbulence.Practical implicationsPractitioners and academicians can use the insights obtained from this study to determine how to allocate resources and adopt the most effective marketing strategies in local environments based on consumer preference for domestic or global products and consumer morale and expectations for future financial status.Originality/valueThis research unveils the mechanism behind the moderating effects of CET and CC on the effectiveness of CEDs in global FMCG settings using social identity and system justification theory. Turbulence in international and local markets due to the pandemic has revealed that marketing function needs to redesign strategies and coordinate practices to boost repeat purchases.

Analysing the Effect of Social Media on Customer Equity: A Study of Fast-food Restaurants

The enormous number of social media users globally and the increased time spent by each user on social media every day have made social media an irreplaceable part of the contemporary marketing mix. Markets have become more competitive because of the new informed and empowered customers. Integrating social media into the existing marketing mix and honing its power to the optimum is the need of the hour. This has led marketers and researchers to develop a considerate understanding of social media and to analyse its effect on customers. This research paper attempts to address this contemporary paradigm and investigates the effect of social media on customer equity in fast-food restaurants. In addition, the effect of user-generated content and firm-generated content on relationship equity, value equity and brand equity is analysed. A conceptual framework is proposed in this regard, and later the relationships of this framework are evaluated with the help of data from 400 respondents. The results confirmed that social media has a positive effect on the drivers of customer equity for fast-food restaurants. While user-generated content affects brand equity the most, followed by value equity and relationship equity, firm-generated content affects relationship equity the most, followed by brand equity and value equity.