Customer Equity Case Study

1648 Words4 Pages
bulb-icon

Recommended: Communication methods in the business environment

1) define Customer equity and how to increase it

Costumer equity: Value of possible future ‪proceeds‬, caused by a company's customers in a lifetime. A company with high customer equity will be valued at a higher price compared to company with a low customer equity. Therefore, the more loyal a costumer is the more costumer equity.‬‬‬‬‬‬‬‬‬‬‬‬‬
The company can increase the costumer equity by creating a competitive advantage.
There are reasons for costumer equity:
1- Brand equity: ladies from the high-class loves to but Herms and channel bags because it is brand
2- Value equity: the price and the offer people prefer to but from wall mart rather than target . or dollar store rather than any shop .
3- Relationship equity: what make the costumer buy from this shop rather any shop. For example I like to go to the nail spa which is in the Milford mall even thought there is a nail spa just next to my door and it is cheaper. However, I am comfortable in Milford mall they know me by name they know what colors I like.
Examples for companies with high equity, Facebook, apple, MacDonald.

2) describe different types of customers and explain how they should be treated
• Loyal Customers: they are not greater than 20% of customer base. However, they make up 50% of the sales.
• If we want to grow the business customer and the market profit we should consider on the loyal costumers try to be in touch with them in a routine base via phone ,email, mail. Because in many situation the more you do for them the more they will recommend you to others ”word of mouth” that is called “buzz marketing”

• Discount Customers: They shop in the stores habitually, however, their choices depend on the range of the discounts.
•
• Impulse Customers: they don...

... middle of paper ...

...t of consumers' conversations and lives.
2- free advertisement using social networking like ,instrgram, twitter, Facebook etc.. Using e-mail, blogs, Web sites, YouTube, social networks, today's marketers combine communicating methods which lead to aimed two-way customer relationships.
2- Internet use and technologies, made connections easer people can contact each other with one click with large grope or small grope, local or over seas.
3- Communication now is more efficient
4- communications has no limits, it is cheaper

Extra credit:
Tom’s video I really loved this idea it is really nice to think about other people specially when they are poor. People like me do not like to waste their money in shoes but when I knew that when I buy pair of shoe and other person need this shoe and this will help other person I would buy it. It is good and smart humanity idea.

Show More
Related

  • The Holland and Barrett Brands

    1792 Words  | 4 Pages

    Definition; - “brand equity is the added value endowed on products and services. It may be reflected in the way consumer think, feel, and act with respect to the brand, as well as in the price, market share and profitability the brand commands.”(Kolter and Keller.2012, p265) according to the case study of Holland and Barrett, brand equity refers to high brand value, brand with high value equity means, H&B has the ability to create some sort of positiv...

    Read More

  • Marketing Case Study: Tesco

    1849 Words  | 4 Pages

    This can be seen through closer comparison of their retail or merchandise, pricing, store design and layout, visual merchandising, communication, locations and channels, atmosphere, and customer service.

    Read More

  • Marketing Through Social Media ( Exploratory Essay )

    1058 Words  | 3 Pages

    Marketing through Social Media (Exploratory Essay) Throughout the ages there have been many intriguing ways that businesses have portrayed their product or services for accessibility. Recently, businesses have been researching how to market the businesses product through the World Wide Web. With websites such as Facebook, Twitter, Instagram, it started becoming popular within the past 20 Years. People have started to rely heavily on the internet over the past decade, whether it be for searching for information on products or people.

    Read More

  • Home Depot Swot Analysis Essay

    504 Words  | 2 Pages

    All three strategic legs of the stool are unified by the goal of providing an interconnected retail experience to drive value for their customers, associates, suppliers, and shareholders (Home Depot, 2017). As technology continues to progress and e-commerce grows in popularity, customers demand increased convenience and value from retailers. Under customer experience, the firm is focused on providing customers with a seamless and frictionless shopping experience both while shopping in stores and online (Home Depot, 2017). Under product authority, the firm is focused on delivering the best and most innovative products to customers at the best value possible (Home Depot, 2017). Under productivity and efficiency, the firm is focused on optimizing the efficiency of their supply chains by connecting supplier merchandise to their customers (Home Depot, 2017). Moreover, the firm focuses on collaborating with their respective business partners to provide an interconnected and effortless retail experience for their

    Read More

  • Ally Bank Essay

    917 Words  | 2 Pages

    This strategy maybe good for costumers, but it requires a level of employee commitment and dedication to remember customers likes and don’t without a face to face

    Read More

  • Social Media Influence

    706 Words  | 2 Pages

    networking sites. Social media plays a hybrid role in the promotion mix. It allows companies to talk to their

    Read More

  • Consumer Behavior and Marketing

    1824 Words  | 4 Pages

    The type of product is another factor as consumers tend to require fewer choices for commodity good and more choices for luxurious goods.

    Read More

  • Shareholder Equity Case Study

    757 Words  | 2 Pages

    When discussing profit maximization and maximization of shareholder equity (i.e. wealth) we must take into account that shareholder equity is responsible for all of the difficulties of the environment. To whereas, profit maximization does not, in other words the profit maximization deals with revenues, it is a measure of business operations. On the other hand shareholder equity deals with or is responsible for the value maximization and the net present worth, therefore, its goal is to provide

    Read More

  • Brand Equity Model Of Adidas

    1462 Words  | 3 Pages

    Companies use a collection of brand equities to represent their products in the market (Voolnes, 2012). Brand equity refers to the commercial value that is derived from the perception of consumers on any given brand name of particular products in the market as opposed to the product itself. Ataman (2003) notes that the effect to the consumer is in the brand name and not the product itself. Companies use logos, trademarks and a collection of other symbols to present this information to the customers. The use of these symbols is meant to try and capture the customer mindset so that they can be thinking about the company products at all times through the items they possess at home (Estes, Gibbert, Guest, & Mazursk, 2012). This can well be explained by use of the customer-based brand equity model that brings together the requirements for a publicly renowned brand in the market.

    Read More

  • IKEA: Ingvar Kamprad's Visionary Journey

    776 Words  | 2 Pages

    The concept of value thus has both a social dimension and an economic dimension. Declared as an excellent company because of this, IKEA’s foundations of value can be evaluated to understand how they meet the wants and needs of its core customers. The customer wants to enjoy the experience of buying products. IKEA provides its customers with an enjoyable buying experience. According to Edvardson and Enquist value-based management is based on stakeholder perspective of leadership, responsibility and ethics incorporated with the concept of a triple bottom line. Three aspects of sustainability form a triple bottom line economic, social and environmental. IKEA has been successful at value-based management and achieving a triple bottom line culture. IKEA asks designers to design to decrease prices not increase them. At IKEA the price is designed according to what all income levels can afford. Designers work on the factory floor with production staff to produce furnishings that satisfy all dimensions (Edvardson & Enquist 2006).  IKEA works with its suppliers to achieve cost savings and help create optimal conditions to product efficiency. Furthermore, IKEA works with suppliers on quality, environmental and issues. The basis of selection is a best buy policy. The process encompasses a set of requirements that a likely

    Read More

  • Effects Of Social Media Marketing

    1157 Words  | 3 Pages

    Social media in marketing is used as an apparatus that builds an identity for a brand and gives awareness that they thought they could have. It does not only respect buyers, but also customer allegiance. Social media is widely-ranged so it can be used in whatever way that best conforms to the strategy and wants of the business. In accordance to the social media marketing report of 2014, a considerable (64%) of marketers use social media for at least 6 hours or more and 41% for 11 hours or more weekly, more importantly nearly (19%) of marketers use up to 20 hours each week on Facebook, Twitter, LinkedIn, Instagram and many more. The report also showed 7 social media platforms that led in 2014 which are Facebook, Twitter, LinkedIn, Google+, Youtube, Pinterest and Instagram.

    Read More

  • Marijuana Advertising Ethics

    1075 Words  | 3 Pages

    Among the billions of social media users, there is a percentage dedicated to businesses who use social media as part of their marketing strategy. The sheer number of people who use services like Facebook and Instagram on a daily

    Read More

  • Colonialism: Colonial Mentality Theory

    905 Words  | 2 Pages

    “Linked to a brand, its name is the symbol that adds to or subtract from the value provided by a product or service.” (Aeler, 1991) Like country of origin, brand equity is also one of the reasons why some people want to have a well-known brands in the whole world. Sometimes it is not all about the price anymore because in today’s generation brand is more important than

    Read More

  • Economic Impact Of Social Media

    1741 Words  | 4 Pages

    Social media avenues are a new, upcoming, and popular way to advertise for businesses and for people to connect to each other. Alexis Ohanian once said that "Being effective at social media, whether for business or personal use, means capturing people who have short attention spans. They 're only a click away from a picture of a funny cat, so you have to make your thing more compelling than that cat. And that can be a high bar." (Ohanian) Powerful usage of social media can have a big impact.

    Read More

  • Information Technology and its Impact

    842 Words  | 2 Pages

    Similarly businessmen or entrepreneurs can advertise your company or product whether in your own website or perhaps in one of the social networks mentioned above , causing an impact and an increase in sales , perhaps on some websites are free or others have fees, but the impact they cause is remarkable. Easy access to this technology just enough to have wifi or 3G network and any mobile device or your desktop computer to advertise or find a customer , supplier , product, service , etc. . , This allows for the efficiency and speed one a successful entrepreneur and manage your business more easily accessible for most people so .

    Read More

More about Customer Equity Case Study

Open Document