The Impact of Brand Equity on Customer Acquisition, Retention, and Profit Margin

Stahl, Florian; Heitmann, Mark; Lehmann, Donald R.; Neslin, Scott A.

doi:10.1509/jm.10.0522

Cited by 282 publications

(237 citation statements)

References 85 publications

(123 reference statements)

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“…We also propose a fourth model in which BE is also an antecedent of CE (Figure 1d). Nevertheless, this model also allows marketing capabilities influencing directly CE formation, following Stahl et al (2012). Both models are compatible with previous studies…”

Section: Linking Be and Cesupporting

confidence: 84%

“…If the impact of other CE antecedents is strong, the correlation of BE and CE could be low. In line with this pers pective, Stahl et al (2012) find that marketing activities grow CE not only through BE but also directly.…”

Section: Linking Be and Cesupporting

confidence: 70%

“…More specifically, BE influences acquisition and retention rates and profit margins, which are three key components of CE (Stahl, Heitmann, Lehmann & Neslin, 2012). Under this perspective, brand management is a tool for customer management.…”

Section: Introductionmentioning

confidence: 99%

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Marketing assets: Relating brand equity and customer equity

Romero

Yagüe

2016

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Purpose: Brand equity and customer equity are inextricably linked. Some authors propose that marketing activities build these intangible assets simultaneously. In contrast, others suggest that brand equity is an antecedent of customer equity. In this research, we aim to shed light about the relationship between brand equity and customer equity, by empirically testing these two alternative explanations. Design/methodology:We propose four research models that reflect these two alternatives explanations regarding the link between brand equity and customer equity. In order to estimate these models we employ Structural Equations Modelling. We measure model variables using data collected through a survey to marketing managers of services companies that operate in Spain. We compare these four research models in terms of explanatory power and goodness of fit. Findings:Our results indicate that the models that correspond to the simultaneity approach have a higher explanatory power and goodness of fit than the models that suggest that brand equity is an antecedent of customer equity, thus supporting that these intangible assets are built by marketing activities at the same time.-591-Intangible Capital -http://dx.doi.org/10.3926/ic.727Research limitations/implications: Our results recommend caution when interpreting previous research about the effects of brand (customer) equity, as they might indeed correspond to customer (brand) management. Similarly, future research focusing on customer and brand management need to take into account both managerial areas in their studies. Practical implications:From a practitioners' point of view, our findings suggest adopting a brand-customer portfolio approach to enhance company profitability. Similarly, we derive implications for firm valuation processes, which incorporate brand equity and customer equity in their calculations. Originality/value:We empirically study the relationship between brand equity and customer equity, while previous research has analyzed this topic only at a theoretical level. Clarifying this link enriches our comprehension about how companies build these marketing intangible assets and increases the accuracy of firm valuation processes.

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Section: Linking Be and Cesupporting

confidence: 84%

Section: Linking Be and Cesupporting

confidence: 70%

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Marketing assets: Relating brand equity and customer equity

Romero

Yagüe

2016

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“…One important source and antecedent of brand equity is brand loyalty. Brand loyalty is a deep commitment to repurchase or a consistent preference for a product/service, which leads to certain marketing advantages such as reduced cost, profitability, and favorable word-of-mouth (Aaker 1991;Ahluwalia, Unnava and Burnkrant 2001;Oliver 1999;Stahl, Heitmann, Lehmann and Neslin 2012).…”

Section: Brand Origin (Bo) and Copmentioning

confidence: 99%

Brand origin and country of production congruity: Evidence from the UK and China

Eng

Ozdemir

Michelson

2016

Journal of Business Research

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The process of manufacturing and marketing international products is increasingly complex and especially for multinational corporations that strive to lower production costs while adapting their products and services to match local preferences. Localization of international business has been shown to generate differing country of origin (COO) effects in terms of the brand origin and country of production (COP) congruity issue. Both country of production and brand origin may not be the same, which questions the effect of incongruity on a brand, consumer ethnocentrism and localization issues particularly when a well known brand is from a developed country and COP is in a developing country. This study extends past studies on the COO effect to examine whether a negative COP affects consumer product perception and consumer purchase decision of a wellknown brand. Hypotheses are tested empirically against survey consumer data from the UK (developed country) and People's Republic of China (developing country) using Sony as a global brand. The main findings show that both brand origin and COP are particularly important for consumers in a developed country in their product evaluations while perceived brand image of a developing country and price are key factors for consumers in a developing country. In addition, knowledge of the extent of consumer ethnocentrism can be a major determinant for branding decisions related to using product information cues about country of production and/or an international brand image.

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“…However, Kotler has recently updated the model, and therein, several IMC tools have been added. It appears that previous research studies on the relationship between IMC and brand equity have yet to be further explored, since they only examined five marketing tools, namely, advertising, promotion, direct marketing, personal selling and public relations (such as researches from Brunello in 2013 [8], and from Stahl, Heitmann, Lehmann, and Neslin, in 2012 [9]), when in the revised model, IMC is identified as consisting of advertising, promotion, event marketing, public relations, direct marketing, personal selling, word of mouth marketing and interactive marketing. Moreover, in the literature, the beverage industry has been neglected.…”

Section: Objectives Of the Studymentioning

confidence: 99%

Integrated Marketing Communication to Increase Brand Equity: The Case of a Thai Beverage Company

Mongkol¹

2014

IJTEF

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Abstract-The objective of this research is to examine the correlation between integrated marketing communication and the brand equity of a Thai beverage company. The findings contribute to a more effective marketing strategy plan for a company.The sample for this study consisted of four hundred participants who were customers of the company, and questionnaires were used as a research instrument. In order to test the research's hypotheses, Pearson's correlation coefficient was conducted to investigate the correlation between the integrated marketing communication and the company's brand equity.The results of the hypothesis reveal that there is a direct correlation between the integrated marketing communication and brand equity. Therefore, it is recommended that different types of integrated marketing communication should be appropriately selected in order to efficiently improve brand equity.

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The Impact of Brand Equity on Customer Acquisition, Retention, and Profit Margin

Cited by 282 publications

References 85 publications

Marketing assets: Relating brand equity and customer equity

Marketing assets: Relating brand equity and customer equity

Brand origin and country of production congruity: Evidence from the UK and China

Integrated Marketing Communication to Increase Brand Equity: The Case of a Thai Beverage Company

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