Customer-based corporate valuation: Integrating the concepts of customer equity and shareholder value

Management Decision

Volumn 43, Issue 3, 2005, Pages 331-348

  Bauer, Hans H ^a   Hammerschmidt, Maik ^a  

^a UNIVERSITY OF MANNHEIM   (Germany)

Author keywords

Asset valuation; Customers; Shareholder value analysis

Indexed keywords

EID: 19744370223     PISSN: 00251747     EISSN: None     Source Type: Journal    
DOI: 10.1108/00251740510589733     Document Type: Article

References (43)

1. Bayón, T., Gutsche, J. and Bauer, H.H. (2002), "Customer equity marketing: Touching the intangible", European Management Journal, Vol. 20 No. 3, pp. 213-22.
2. Berger, P.D. and Nasr, N.I. (1998), "Customer lifetime value: marketing models and applications", Journal of Interactive Marketing, Vol. 12 No. 1, pp. 17-30.
3. Blattberg, R.C. and Deighton, J. (1996), "Manage marketing by customer equity", Harvard Business Review, Vol. 74 No. 4, pp. 136-44.
4. Blattberg, R.C., Getz, G. and Thomas, J.S. (2001), Customer Equity: Building and Managing Relationships as Valuable Assets, Harvard Business School Press, Boston, MA.
5. Bolton, R.N. (1998), "A dynamic model of the duration of the customer's relationship with a continuous service provider", Marketing Science, Vol. 17 No. 1, pp. 45-65.
6. Brealey, R.A. and Myers, S.C. (2000), Principles of Corporate Finance, McGraw-Hill, Boston, MA.
7. Copeland, T., Koller, T. and Murrin, J. (2000), Valuation: Measuring and Managing the Value of Companies, Wiley, New York, NY.
8. Cornelsen, J. (2002), "What is the customer worth? Customer value analyses in relationship marketing on the basis of car buyers", Yearbook of Marketing and Consumer Research, Vol. 1 No. 1, pp. 27-46.
9. Day, G. and Fahey, L. (1988), "Valuing market strategies", Journal of Marketing, Vol. 52 No. 3, pp. 45-57.
10. Doyle, P. (2000), "Value-based marketing", Journal of Strategic Marketing, Vol. 8 No. 4, pp. 299-311.
11. Dwyer, R.F. (1997), "Customer lifetime valuation to support marketing decision making", Journal of Direct Marketing, Vol. 11 No. 4, pp. 6-13.
12. Fischer, M., Herrmann, A. and Huber, F. (2001), "Return on customer satisfaction", Zeitschrift für Betriebswirtschaft, Vol. 71 No. 10, pp. 1161-90.
13. Gaughan, P.A. (1999), Mergers, Acquisitions, and Corporate Restructuring, Wiley, New York, NY.
14. Gregory, A. (1992), "Strategic value analysis: The danger of oversimplification", Management Accountant, Vol. 70 No. 8, pp. 42-6.
15. Gupta, S., Lehmann, D.R. and Stuart, J.A. (2001), "Valuing customers", working paper No. 01-119, Marketing Science Institute, Cambridge, MA.
16. Hall, R. (2002), "Linking customer and shareholder value", ABA Bank Marketing, July/August, p. 9.
17. Heskett, J.L., Sasser, W.E. Jr and Schlesinger, L.A. (1997), The Service Profit Chain, Free Press, New York, NY.
18. Hoekstra, J.C. and Huizingh, E.K.R.E. (1999), "The lifetime value concept in customer-based marketing", Journal of Market Focused Management, Vol. 3 No. 3, pp. 257-74.
19. Hogan, J.E., Lemon, K.N. and Rust, R.T. (2002a), "Customer equity management", Journal of Service Research, Vol. 5 No. 1, pp. 4-12.
20. Hogan, J.E., Lehman, D.R., Merino, M., Srivastava, R.K., Thomas, J.S. and Verhoef, P.C. (2002b), "Linking customer assets to financial performance", Journal of Service Research, Vol. 5 No. 1, pp. 26-38.
21. Jackson, D.R. (1992), "In quest of the grail: Breaking the barriers to customer valuation", Direct Marketing, Vol. 55 No. 3, pp. 44-7.
22. Jain, D. and Singh, S.S. (2002), "Customer lifetime value research in marketing: A review and future directions", Journal of Interactive Marketing, Vol. 16 No. 2, pp. 34-46.
23. Jones, T. and Sasser, W.E. Jr (1995), "Why satisfied customers defect", Harvard Business Review, Vol. 73 No. 6, pp. 88-9.
24. Keane, T.J. and Wang, P. (1995), "Applications for the lifetime value model in modern newspaper publishing", Journal of Direct Marketing, Vol. 9 No. 2, pp. 59-66.
25. Kim, B-D. and Kim, S-O. (1999), "Measuring upselling potential for life insurance customers", Journal of Interactive Marketing, Vol. 13 No. 4, pp. 2-9.
26. Libai, B., Narayandas, D. and Humby, C. (2002), "Toward an individual customer profitability model", Journal of Service Research, Vol. 5 No. 1, pp. 69-76.
27. Lilien, G.L., Kotler, P. and Moorthy, S.K. (1992), Marketing Models, Prentice-Hall, Englewood Cliffs, NJ.
28. Mulhern, F.J. (1999), "Customer profitability analysis: Measurement, concentration, and research directions", Journal of Interactive Marketing, Vol. 13 No. 1, pp. 25-40.
29. Niraj, R., Gupta, M. and Narasimhan, C. (2001), "Customer profitability in a supply chain", Journal of Marketing, Vol. 65, pp. 1-16.
30. Payne, A., Holt, S. and Frow, P. (2001), "Relationship value management", Journal of Marketing Management, Vol. 17 Nos. 7-8, pp. 785-817.
31. Pfeifer, P.E. and Carraway, R.L. (2000), "Modeling customer relationships as Markov chains", Journal of Interactive Marketing, Vol. 14 No. 2, pp. 43-55.
32. Rappaport, A. (1998), Creating Shareholder Value: A Guide for Managers and Investors, Free Press, New York, NY, London.
33. Reichheld, F.F. (1999), The Loyalty Effect - The Hidden Force behind Growth, Profits, and Lasting Value, Bain, Boston, MA.
34. Reichheld, F.F. and Sasser, E.W. Jr (1990), "Zero defection: Quality comes to service", Harvard Business Review, Vol. 68 No. 5, pp. 2-8.
35. Reinartz, W.J. and Kumar, V. (2000), "On the profitability of long-life customers in a noncontractual setting: An empirical investigation and implications for marketing", Journal of Marketing, Vol. 64 No. 4, pp. 17-35.
36. Rust, R.T., Lemon, K.N. and Zeithaml, V.A. (2001), "Modeling customer equity", working paper No. 01-108, Marketing Science Institute, Cambridge, MA.
37. Schmittlein, D.C. and Mahajan, V. (1982), "Maximum likelihood estimation for an innovation diffusion model of new product acceptance", Marketing Science, Vol. 1, pp. 57-78.
38. Schmittlein, D.C., Morrison, D.G. and Colombo, R. (1987), " Counting your customers: Who are they and what will they do next? ", Management Science, Vol. 33, pp. 1-24.
39. Schmittlein, D.C. and Peterson, R.A. (1994), "Customer base analysis", Marketing Science, Vol. 13 No. 1, pp. 41-67.
40. Srivastava, R.K., Shervani, T.A. and Fahey, L. (1999), " Marketing, business processes, and shareholder value", Journal of Marketing, Vol. 63 No. 4, pp. 168-79.
41. Staat, M., Bauer, H.H. and Hammerschmidt, M. (2002), "Structuring product-markets: An approach based on customer value", Marketing Theory and Applications, Vol. 13 No. 1, pp. 205-12.
42. Wang, P. and Spiegel, T. (1994), "Database marketing and its measurements of success: Designing a managerial instrument to calculate the value of a repeat customer base", Journal of Direct Marketing, Vol. 8 No. 2, pp. 73-81.
43. Wiesel, T. and Skiera, B. (2002), "Company valuation by using customer values", research paper, Johann Wolfgang Goethe-University, Frankfurt.