Year: 2024
Type: conference-paper
Abstract: This article examines marketing factors and elements that influence customer equity associated with building sustainable relationships with profitable clients, which are attracting increasing interest from marketers. Recently, consumers have acquired technical opportunities to influence brands more actively and traditional marketing methods and means often do not ensure the success of the company. In today's conditions, price competition and mass advertising are losing their power of influence, so companies are looking for new methods to fight for the customer attention. Building relationships between the company and the consumer and retaining existing consumers is of great importance. One of the most promising research areas in marketing is the development of customer equity. A basic assumption of customer equity is that a customer, like any other asset, is a financial asset. Customer equity is the total discounted lifetime value of all the company's customers. It helps measure the financial returns that can be made from all customers over the course of a relationship. This enables businesses to assess the value of their clients' assets and make sound financial decisions. By evaluating empirical studies and examining contemporary trends, the article provides both theoretical insights and practical guidance for marketers. The objective is to uncover the impact of marketing factors on customer equity, offering valuable resources for academics and practitioners. As a result of the article, the opinion of various factors and conceptual models influencing customer equity are summarized.
Authors: Jelena Salkovska, Anda Batraga, Jelizaveta Prilucka, JSC Madara Cosmetics, Agnija Greizina
Institution: University of Latvia
Language: English
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4406290487