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Positive research on perception drivers' influence on customer equity

  • School of Management, Harbin Institute of Technology

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Composed of cross purchase and reputation publicizing, perception drives as well as its influence on customer equity are analyzed in this paper, in addition to which the view that neglect of cross purchase will result in underestimate of customers' total purchase and ignoring reputation publicizing will bring about two completely different result is accepted in this paper. Positive reputation publicizing can aggrandize customers' purchase and customer amount, and negative reputation publicizing just stands oppositely. Since a mature firm will try its best to play down negative reputation publicizing, ignoring reputation publicizing will systematically underestimate customer amount and purchase and further result in systematic underestimation of customer equity. In order to testify this view, taking a mobile communication firm as research object, and basing on the three-dimension formation model and four-dimension formation model of customer equity's drivers, this paper measured the customer equity of this firm with the principal component analysis as method and advanced return on marketing model as analysis tool. Through the comparison of the measurement result, the conclusion that neglect of perception drivers actually results in systematic underestimation of customer equity is acquired.

Original languageEnglish
Title of host publicationProceedings of 2007 International Conference on Management Science and Engineering, ICMSE'07 (14th)
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages1037-1042
Number of pages6
ISBN (Print)9787883580805
DOIs
StatePublished - 2007
Externally publishedYes
Event2007 International Conference on Management Science and Engineering, ICMSE'07 - Harbin, China
Duration: 20 Aug 200722 Aug 2007

Publication series

NameProceedings of 2007 International Conference on Management Science and Engineering, ICMSE'07 (14th)

Conference

Conference2007 International Conference on Management Science and Engineering, ICMSE'07
Country/TerritoryChina
CityHarbin
Period20/08/0722/08/07

Keywords

  • Cross purchase
  • Customer equity
  • Perception drivers
  • Reputation publicizing

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