Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Customer equity - Essay Example

Comments (0) Cite this document
1. The goal of customer relationship is to produce high customer equity. Customer equity is the total discounted lifetime values of all the firms' customers. There are three drivers of customers' equality: value equity, brand equity and relationship equity…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98% of users find it useful
Customer equity
Read TextPreview

Extract of sample "Customer equity"

Download file to see previous pages Value equity is the customer's objective assessment of the utility of an offering based on perceptions of its benefits relative to its cost. The sub drivers of value equity are quality, price and convenience. Brand equity is the customer's subject time and intangible assessment of the brand, beyond its objectively perceived value. The sub drivers of brand equity are customer brand awareness, customer attitude towards the brand and customer perception of brand ethics. Relationship equity is the customer's tendency to stick with the brand, beyond objective and subjective assessment of its worth. Sub drivers include loyalty programs, special recognition and treatment programs, community building programs and knowledge building programs. In the present relationship-marketing situation, most of the companies using technology such as E-mail, websites, call centers, databases and database software are helping to foster continuous contact between company and customers. Companies that want to develop strong customer relationships generally add financial benefits, social benefits and structural ties to its product. In providing financial benefits, companies provide customer the frequency rewards and club marketing. Today, most supermarket champions including Sainsbury offer price club cards and provide member customer with discounts. Many companies have created club membership programs to strengthen relationship with customers. Open clubs are good for building a database or snagging customers from competitors, limited membership clubs are more powerful long-term loyalty builders. Companies' personnel work on increasing social bonds with customers by individualizing and personalizing customer relationships. Customer relationship is more or less of the view that customer must maximize his or her relationship with the company through up selling and at the same time, enhancing profitability by identifying, attracting and retaining the best customers. Through better relationship and customer's information, customer time could be saved. Putting better customer relationship requires developing a set of integrated applications to address all aspects of front office needs including automation of customer services, field service, sales and marketing. The main aim of better customer relationship includes acquiring, enhancing and retaining the customer. Sainsbury has done this quite successfully. To acquire and retain the customer and to develop a long-term relationship Sainsbury is providing healthy, safe, fresh and tasty food as well as at fair prices. Sainsbury's price competitiveness is currently the best. It has been for many years following the investment of more than 450 million pound over the last three years. Around 15,000 prices are checked every week to make sure its competitive position has been maintained. In August 2007, Sainsbury has launched. "Different values" campaign to provide its customer, the products of higher quality specifications and great values. In March 2003, Sainsbury launches "Feed your family for a fiver" campaign to reach out and maintain a long-term relationship with its customers through providing affordable, healthy and nutritious meals for a family of four could be prepared with the budget of 5 pound. Sainsbury's values are not just for food items but available for non-food ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Customer equity Essay Example | Topics and Well Written Essays - 6000 words”, n.d.)
Customer equity Essay Example | Topics and Well Written Essays - 6000 words. Retrieved from
(Customer Equity Essay Example | Topics and Well Written Essays - 6000 Words)
Customer Equity Essay Example | Topics and Well Written Essays - 6000 Words.
“Customer Equity Essay Example | Topics and Well Written Essays - 6000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document



... July 06, Equity Research Report This paper is an equity research report, intended to provide information to investing clients about future potential for stocks of a company to determine whether one should purchase or sell a stock. It is recommended that an investor should purchase a stock if the market price of the stock is below its fair price. If the market price of the stock is above its fair price, then it is recommended that the stock is sold to obtain profits. The firm whose stock potential is being analyzed is Owens & Minor Inc. Executive Summary: Owens & Minor Inc. Ticker: OMI Recommendation: Hold Price: $29.78 on 31.03.2010 Price target one year: $34.95 Highlights: A fortune 500 company headquartered in Richmond, Virginia. Wide...
4 Pages(1000 words)Essay

Customers Brand Equity and Customer Loyalty

Providing greater service quality that would generate greater sales and profits can be observed apparently in the service industry, such as in the hospitality industry (Schneider & White, 2004). One of the major reasons for customer loyalty is delivering services of qualitative standards that could increase the proportion of loyal customers of the organization to a considerable extent (Arvato AG, 2013; Brink & Berndt, 2008). Another major factor identified in the modern-day context of CRM initiatives adopted by hospitality organizations is service quality. Service quality, as a conceptual term, relates to the notion to provide services with due consideration to customer satisfaction by meeting their expectations with incre...
10 Pages(2500 words)Research Proposal

Competitive Advantage and Customer Equity

.... Hoboken: Wiley. International Conference on Technology and Management, & Kim, H. (2012). Advances in technology and management: Proceedings of the 2012 International Conference on Technology and Management (ICTAM 2012), International Convention Center Jeju, Jeju-Island, Korea. Berlin: Springer. Southerton, D. (2011). Encyclopedia of consumer culture. Thousand Oaks, Calif: SAGE Reference. Pitt, L., Berthon, P., & Curtin University of Technology. (2009). Competitive rationality, competitive advantage and customer equity: An integration. Perth, W.A: School of Marketing, Curtin University....
7 Pages(1750 words)Term Paper


...Equity Internal alignment is done to tune up the organization with the present goals and objectives. The internal alignment is done to support the smooth flow of the activities in the organization with various departments by providing equal opportunity and paying for the worthiness of the work done by the employees. A well organized internal alignment provide right ambience for the employee to motivate himself to perceive the goals of the organization The factors which regulate the internal alignment are: External factors: Economic status of that region, Government policies and regulations & policies, Stakeholders who render their thoughts, Culture & customs prevailing...
2 Pages(500 words)Essay

Equity: evolution of equity

...Equity: evolution of equity English laws are unique in nature as they are not drawn from other source; these laws have their own identity. English laws are inherited from their glorious past and evolved into various forms of legal aspects. The concept of equity rose in the era of king "Norman king William" conquered the Harold kingdom. The invasion of William has led to a turn around in the approach of regaining the control of entire English region. Prior to the procession of the crown by King William, the scenario was entirely different. As, England was surrounded by many alien kingdoms and tribes, who occasionally used to invade the counties in England and used to gain control over them. The supreme in the mainland was unable to access...
2 Pages(500 words)Essay


...150467 "Equity offered relief where the common law shoe pinched, primarily in the sphere of property transactions" Keeton (1976, p.4). The concept of Equity shaped out of royal concern for common subjects. One of the most important historical sources of English law, Equity has a long-rooted history in the legal body of knowledge. In the days when the range of law was highly limited and constricted, when legal judgements sounded unusually harsh far removed from social reality, ordinary people either refrained from going to Court of Justice, or stunned by the cruel judgements, started appealing directly to the King in the hope of overturning just judgements. King, perturbed by the legal effect, directed the Lord Chancellor to give judgement...
3 Pages(750 words)Essay


... Introduction Equity’s darling and law of trusts In the UK, a defensive law of trust is a life premium that ends uponthe incident of a determined occasion, for example, the liquidation of the beneficiary, or any endeavor by a single person to discard his or her advantage. They have gotten to be nearly uncommon. In the USA, a defensive law of trust is a kind of trust that was concocted for utilization in domain arranging. In an alternate locale this may be considered one sort of advantage of law of trust. Regularly, person A wishes to leave property to someone else like person B. However, person A on the other hand, expects that the property may be asserted by loan bosses before individual A bites the dust, and that subsequently B would get...
12 Pages(3000 words)Essay

Hedging Equity

...Hedging Equity Prices for indices and futures The prices for indices and futures are as shown in the figure below as of 19th June,2015. Figure1: prices for indices and futures ( Inc. 2015) Advantages and disadvantages of using options to hedge It is flexibility in that the user of options enables a trader to trade any potential move as far as the underlying security is concerned. In this case, the investor can use them even to protect his downside. Options also enable one to employ considerable leverage. The trader can gain incredible leverage as well as returns of 100% or higher. Another advantage is the directional choice that is related to flexibility as the trader can use them to trade downward and upward and even sideways...
7 Pages(1750 words)Case Study

Strategies for Maximizing Customer Equity

.... (2014). Smart Dynamic Pricing Based on ECA Rules and Electronic Ink Labeling for Retail. In Ubiquitous Computing and Ambient Intelligence. Personalisation and User Adapted Services (pp. 468-475). Springer International Publishing. Lee, S. C. (2014). Value chain and networks of foreign direct investment firms in transitional economies: Korean textile and clothing foreign direct investment in Vietnam. Papasolomou, I., Thrassou, A., Vrontis, D., & Sabova, M. (2014). Marketing public relations: A consumer-focused strategic perspective. Journal of Customer Behaviour, 13(1), 5-24. Sharma, A. (2014). Strategies for Maximizing Customer Equity. Capturing Customer Equity: Moving from Products to Customers, 5, 59. Sand, G., Tsitouras, L...
8 Pages(2000 words)Case Study

Equity Issues in the City Police Department

The front-line activities are carried out by the Department of Operations, and its functions are distributed under the following sections of the Department:

1. Patrolling and Support: The city area has been divided into several zones like central, north, south, east, southeast, northeast, northwest, etc. to efficiently extend these services to every part of the city.

This department, in its mission statement, has declared that it is committed to improving the quality of the life of citizens, by having problem-solving partnerships with various communities, government agencies, and members of the community, so as to achieve a high degree of fairness, integrity, respect, transparency and equitable distribution o...
6 Pages(1500 words)Case Study

The Role of a Customer Relationship Manager

Database Marketing (DBM) and Customer Relationship Management (CRM) are closely tied with each other and at times are used interchangeably. This gives rise to the fact that CRM is an interesting proposition for the different businesses which are rampant all over the world and it is also a clear indication as towards their basis of conducting strategic and tactical activities, moves and tasks every now and then. CRM basically focuses on the customer more than anyone else and hence the entire emphasis is on getting things done in a cohesive manner as far as the customers are concerned. It starts with understanding the needs of the customers themselves and then pinpointing what they actually require so that their needs could be fulfi...
12 Pages(3000 words)Term Paper

Customer Satisfaction

The importance of customer satisfaction has been highlighted in this book and according to the authors, any organization which seeks to gain a competitive edge over its rivals in the marketplace must focus upon improving this aspect, so that organizational productivity is enhanced.
These authors (1997) have also suggested that managers in organizations must measure the profit chain relationships that exist among various units within the organization. These measures can then be used as the basis to help managers to improve their chain performance by also developing rewards based upon the performance measures achieved. These results must then be communicated back down at the level of operating units, so that information about t...
9 Pages(2250 words)Assignment

The Issue of Customer Orientation and Its Manifestation

...Running Head: ORIENTATION Orientation (Your School) ORIENTATION Introduction The orientation has increasingly attracted the attention on of researcher in the recent past. It has become a subject of interest not only to the business world but also to the scholarly world. In the recent past, companies have committed a lot of resource on researching on the subject of customer orientation behavior and building of organization culture that is customer oriented. There have been systematic effort by many companies to come up with programs especially in their production and sales department that are customer oriented. Companies have encouraged their sales people to implement behavior which are customer oriented and which focus on the integration...
8 Pages(2000 words)Essay

E-Commerce Strategy and Customer Privicy

and Malaysia Airways homepage (see appendix 4,5,6) provides the user with an overview of their whole site, which is vitally important as (Nielsen, 2008) explains "The homepage is your companys face to the world." As recommended by Nielsen (2008) Easy Jet, British Airways and Malaysia Airways have used a tagline to capture and communicate the essence of the company; making the sites purpose immediately clear. Their logo is also apparent, boosting brand awareness, differentiating identity from competitors and providing familiarity to users. It can be found in the top left hand corner of the homepage, showing standard HTML conventions have been adopted.
Easy Jet, British Airways and Malaysia Airways use standard hyperlinks, tab...
8 Pages(2000 words)Assignment

Shareholders Equity

...Shareholders’ Equity Introduction This write up contains different corporate scenarios relating to shareholders equity, its calculations and reporting according to available GAAP. The subjects of comprehensive income, issuance and buy back of shares, retained earnings, and corporate dividends have been discussed in depth under different possibilities. Shareholders’ Equity Shareholders’ equity is that part of assets of the entity that is owned by its owners. In fact shareholders equity represents the net worth of the entity. Simply it is difference between total assets and total liabilities as on a particular date shown in the balance sheet or statement of positions of an entity. Broadly shareholders’ equity constitutes the following...
11 Pages(2750 words)Assignment

The Doctrine of Equity

Equity has evolved over time; however, defining the exact nature of equity in relation to the law can be problematic. The main impetus behind the doctrine of equity was a desire to right the wrongs created by the legal system. In the thirteenth century, the only form of recourse available to a plaintiff that had been wronged was to petition the King asking for relief against an unfair judgment. Initially, all such petitions were dealt with directly by the King but as the number of requests increased the Lord Chancellor has delegated the task of determining which petitions should succeed and which had to fail.

Up until 1529 none of the appointed Lord Chancellors had had any form of legal training. Given this lack of lega...
8 Pages(2000 words)Coursework

Equity and Trusts: Proprietary Estoppel

... was remedied by equity when there had been part performance of a contract (Cooke, 2006). Whilst there is no express provision in the 1989 Act specifically abolishing part performance, there has been an assumption that the doctrine is no longer applicable as section 2 clearly renders oral contracts void. Therefore, at law, the oral contracts between Tony and Theodore and Tony and Christopher will be void under section 2 of the 1989 Act. 4.2. Proprietary Estoppel The Law Commission acknowledged that there must be some remedy available where an individual acts to their detriment on the assumption that there is a valid contract in force and asserted that the appropriate remedy was proprietary estoppel rather than part performance (Law...
6 Pages(1500 words)Assignment

Customer Relationship Management

 Consumers started looking for variety and lower prices. Through the use of technology, such customer tradeoff against variety and prices is not necessary. The US life insurance industry is large, mature and dominated by a number of large companies and this industry has been one of the early adopters of computer technology (Subramanian & Chatterjee, 2007). The advent of the CRM systems changed the landscape of the insurance industry.

The health insurance organizations use CRM to prepare health proposals and process applications in a much faster and accurate way. The organizations are better able to understand the needs and habits of the customer and provide more efficient service. Companies are able to integrat...
9 Pages(2250 words)Case Study

Measuring Brand Equity

...Table of contents Introduction and Problem Area 4 1 Introduction 4 2 Research Motivation 4 3 Research Questions 5 4 Summary 6 2 Literature Review 7 2.1 Introduction 7 2.2 The Concept of Brand 7 2.2.1 Brand definition 7 2.2.2 Product brands and corporate brands 9 2.3 Brand Equity 10 2.3.1 Measuring Brand Equity 11 2.3.2 Customer-based brand equity measurements 13 2.3.3 Comparison Aaker’s model with Keller’s Brand Equity Model 14 2.3.4 Conclusions of the comparison 19 2.4 Operalisation of Measurement Customer Based Brand Equity 19 2.5 Brand and Brand Equity in Services 24 2.5.1 Branding Services 24 2.5.2 Brand Equity in Services 25 2.6 Higher Education and its Marketing 26 2.6.1 The Education Sector as a service 26 2.6.2 Literature Review...
63 Pages(15750 words)Research Proposal

Analysis of Negative Equity Spells End of US Love of Homeownership Article by Dominic Rushe

...1. Article Summary The article by Dominic Rushe d ‘Negative equity spells end of US love of home ownership’ appeared on the internet on Friday the 22nd of April, 2011. The article can be accessed at us-housing-market-still-in-doldrums. The article states about the situation of the housing market in the US; “it is still on the slide for five years and there is no sign of an imminent recovery.” Home possession degrees are now back to those levels as was seen in 1998. Some economists are even anxious that the USs may have lessened their love of property ownership. It looks that boom years had never occurred. Paul Dales, US economist at Capital Economics says that "You would have to go back to the Great Depression to find anything similar...
6 Pages(1500 words)Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Customer equity for FREE!

Contact Us