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Increasing shareholder value through building Customer and Brand Equity

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Abstract:

Marketers are under increasing pressure to become more accountable and build shareholder value. Two major marketing intangibles at their disposal are Customer Equity, the net present value of the future profit streams from all its customers, and Brand Equity, the inherent value of the brand to the firm and the customer. This paper reviews the current state of the Brand Equity/Customer Equity debate, analysing the different models of Customer Equity and the different measurements of Brand Equity, and draws some comparisons between the similarities and differences of the two approaches. It then develops a model or framework to guide research and to drive an organisation's focus on either or both of the two concepts.

Keywords: BRAND EQUITY; CUSTOMER EQUITY; CUSTOMER LIFETIME VALUE; SHAREHOLDER VALUE

Document Type: Research Article

DOI: https://doi.org/10.1362/026725709X410061

Publication date: 2009-02-01

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