Customer Equity Drivers and Future Sales

Abstract

Research on linking operational marketing inputs to customer attitudes and customer behavior has been gaining significance concomitant with the growing recognition that customers are market-based assets. In response to this, researchers and practitioners have proposed several conceptual models. Despite recent advances in research, the results are still inconclusive as to the relationship between customer attitude and future sales. A reason for this could be due to the paucity of studies combining survey-based data with behavioral data to understand better the drivers of customer behavior. With that in mind, the authors investigate the effects of customer perceptions of key marketing actions on customer attitudes and actual customer behavior as reflected by future sales. The authors propose that customer perceptions of value, brand, and relationship-"customer equity drivers"-affect loyalty intentions and future sales. The results of the study, which is based on a sample of 5694 customers of a large European do-it-yourself retailer, suggest that customer equity drivers can significantly predict future sales, even after the authors control for the current sales level.

The impact of value equity and brand equity on loyalty : an empirical investigation in retail banking

“…On the other hand, the results are inconsistent with the research of V. Vogel et al (2008). As past research shows that value equity is of primary importance of loyalty intentions and future sales in retail market (Vogel et al, 2008), our results states that offering low prices, improving convenience and quality of finance services is not as important while maximizing loyalty in banking sector.…”

“…As past research shows that value equity is of primary importance of loyalty intentions and future sales in retail market (Vogel et al, 2008), our results states that offering low prices, improving convenience and quality of finance services is not as important while maximizing loyalty in banking sector. Banks must focus the attention on developing and maintaining favourable brand equity.…”

Customer perceived value, satisfaction, and loyalty: the role of willingness to share information

“…With respect to individual characteristics, the model includes gender (Mittal and Kamakura 2001), age (Homburg and Giering 2001), and income (Seiders et al 2005) as covariates. Prior studies have suggested that customers' consumption characteristics are important determinants of customer loyalty in consumer markets (Rust et al 2004;Vogel, Evanschitzky, and Ramaseshan 2008). Thus, relationship length (Verhoef 2003) is also included as a control variable.…”

Bridging the gap between theory and practice in management accounting

“…VdU's customer satisfaction ratings were high, but it was the MD's view that customer satisfaction is not enough to ensure customer loyalty and that customers buy products and services at all the company's departments. The MD's view that customer satisfaction does often not lead to customer loyalty is also confirmed in the academic marketing literature (see, for example, Kumar, 2003, 2005;Tsao 2013;Vogel et al, 2008).…”