As an Amazon Associate I earn from qualifying purchases.

What is Customer Equity in Marketing? PDF Download

Learn Customer Equity definition in marketing with explanation to study “What is Customer Equity”. Study customer equity explanation with marketing terms to review marketing course for online MBA programs.

Customer Equity Definitions

  1. Total combined customer lifetime values of all of the company's customers.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong



  2. Sum of lifetime values of all customers.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong



Customer Equity Explanation

Customer equity is the output of customer's feedback. This relationship is usually developed on the bases of brand recognition. Customer loyalty is associated with the brand on the bases of product quality. Companies' offer discount to their loyal customers. For example, Nestle, Procter and Gamble, and Pepsi have high level of customer equity. Therefore, company having high level of customer equity, considered as higher in market, whereas, low customer equity will be ranked lower in the competitive market.

Keep Learning Marketing Explanations

What are Materials and Parts?

Grouping of Industrial items is essential as it helps basic leadership for the association. Modern merchandise are characterized based on ...

What is Product Line?

A product offering is a gathering of items that an organization makes under a solitary brand. The items are comparable ...

What is Line Stretching?

Line extending is a growing system by an organization where the new items are propelled in a similar product offering ...

What is Independent Off-Price Retailer?

In the present decade, off-value retailing is by and large generally proclaimed as a wonder that is modifying the substance ...

What is Environmental Sustainability?

Environmental sustainability is refer as developing those strategies that makes world a better place to live in present and in ...

What is Direct Marketing Channel?

Direct marketing refers to the promotional methods which are directly linked with customers. It is an effective marketing technique used ...