Towards Customer Equity

Scientific Essay from the year 2009 in the subject Business economics - Offline Marketing and Online Marketing language: English abstract: A strong brand having high brand equity generates higher revenue for the company. Brand Equity as evidenced results from a strong mental association that the customer links with the brand. It can be considered as the sum of customers' assessments of a brand's intangible qualities. Therefore it cannot be a true measure of the marketing efforts of a company though it was perceived so long to be so. Customer Equity of late has been identified as a basis to build powerful customer-centric marketing programs which are more effective in highly competitive business scenario. There are three drivers of customer equity-value equity brand equity and relationship equity. Today's turbulent business environment is in requirement of maximizing the value of a company's customer assets. This stresses further the importance of focusing on Customer Equity as a customer-centric approach rather than on Brand Equity basically a product-centered approach.