Customer flow: evaluating the long‐term impact of marketing on value creation

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to construct a system of indicators that will allow firms to evaluate the long-term results of their marketing activities along the value chain. Design/methodology/approach -The paper integrates the concepts of network relationships, value chain management, and customer lifetime value (CLV). The authors use participative inquiry and case studies to validate and clarify the model. Findings -The authors develop the customer flow conceptual model and propose a sequence of actions to translate it into measures and indicators that will allow firms to understand their role in the creation of sustainable value. Using this model, the authors conduct comparative analyses of the acquisition and retention strategies of a multinational firm in the European and Russian markets. The results provide a crucial justification for new directions in future long-term marketing activities. Research limitations/implications -The model is validated in two cases in different industries. Further research is required to examine the implementation of suggested tools in different industries.Practical implications -The model was simplified for a practical application and indicators for future monitoring process and customer flow management were developed. Originality/value -The authors developed the concept of customer flow to assess the long-term results of marketing activities and to emphasize the difference between managing new and existing customers. New performance metrics are proposed based on customer flow and its structural characteristics. This allowed comparing of acquisition and retention strategies of the same company in different markets and reveals the crucial differences between the marketing strategies prevailing in Russia and those in Europe. The authors have demonstrated how the concept may help firms to develop and implement successful strategies.

The awareness of environmentally friendly products: The impact of green advertising and green brand image

“…Competitive advantage will add value to the company in order to sustain competition in the market. The advantage of competitive advantage is surely for company performance (Rizwan et al, 2014) and it is assessed mainly from customer perspective (Tretyak & Sloev, 2013). In addition, many companies in various countries have started to focus on marketing strategies of the environmental friendly product (Hartmann et al, 2005).…”

“…At the same time, it will be able to influence green awareness among consumer, hence improves consumer purchasing intention for environmentally friendly product (Mourad et al, 2012). Besides, through advertisement, some attributes from the environmentally friendly product can be demonstrated (Tretyak & Sloev, 2013), hence improve consumer care towards environmental friendly product and consumer purchase intention (Wu & Chen, 2014). It has appeared that consumer interest in the environmentally friendly product in Indonesia is still low compared to the conventional product (Suki, 2013).…”

Linking business model research and marketing: new network-based approach to business model analysis

“…The ability to effectively create and deliver value to the customers as well as to capture profits from these activities impacts financial performance of the company and its sustainability. It is demonstrated that marketing has a positive long-term impact on value creation (Tretyak and Sloev, 2013). The notion of value and various activities related to value are also most frequently mentioned in BM definitions (Amit and Zott, 2001;Chesbrough and Rosenbloom, 2002;Magretta, 2002;Teece, 2010).…”

PARTicipative inquiry for tourist experience

“…Participative research is being successfully deployed in consumer research, with Tsybina and Rebiazina (2013) analysing the impact of customer-interconnectedness on portfolio management, and Tretyak and Sloev (2013) refining a model of customer flow to examine the long-term impact of marketing activities on value creation. However, it is yet to gain traction in tourism, in spite of implicit demand for it.…”