Table of Contents

Handbook of Research on Customer Equity in Marketing

Handbook of Research on Customer Equity in Marketing

Research Handbooks in Business and Management series

Edited by V. Kumar and Denish Shah

Customer equity has emerged as the most important metric to manage firm performance. This Handbook covers a broad range of strategic and tactical issues related to defining, measuring, managing, and implementing the customer equity metric for maximizing firm performance. Drawing upon the wisdom of a global pool of leading scholars, the book serves as a comprehensive and authoritative guide on customer lifetime value and customer equity for marketing researchers, practitioners, and students worldwide.

Chapter 13: Customer mindset metrics and firm performance

Shuba Srinivasan

Subjects: business and management, marketing


Increasing demands for marketing accountability have created a new sense of urgency for marketers to obtain and analyze the right customer metrics to drive performance growth and demonstrate marketing’s value in a consistent manner (Ambler, 2003). Increasingly, top management requires that marketing view its ultimate purpose as contributing to building customer assets and brand assets that lead to the enhancement of shareholder returns (Srinivasan and Hanssens, 2009). The majority of marketing researchers and practitioners remain divided by the battle line between hard numbers and softer measures such as consumer perceptions, attitudes, and intentions, collectively referred to as customer mindset metrics. For marketers striving to justify their expenditures to top management, quantitative marketing mix models provide solid measures of accountability, with measures such as ‘advertising elasticity’ and ‘return on investment’.

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