Relating Brandand Customer Perspectives on Marketing Management

Ambler, Tim; Bhattacharya, CB; Edell, Julie A.; Keller, Kevin Lane; Lemon, Katherine N.; Mittal, Vikas

doi:10.1177/1094670502005001003

Cited by 246 publications

(207 citation statements)

References 28 publications

Supporting

Mentioning

186

Contrasting

Unclassified

Order By: Relevance

“…Given that BE and CE provide companies with present and future cash flows, it is reasonable to assume that BE and CE are highly correlated, if not equivalent (Ambler et al, 2002). However, some authors indicate that although built simultaneously there are relevant differences between them, representing specific contributions to company cash flows (Leone et al, 2006).…”

Section: Linking Be and Cementioning

confidence: 99%

“…On the one hand, Leone et al (2006) approach suggests that marketing activities build both assets simultaneously, even to the extent of being different sides of the same coin (Ambler et al, 2002). On the other hand, propose that BE is an antecedent of CE.…”

Section: Managerial Implicationsmentioning

confidence: 99%

“…Our first research model ( Figure 1a) establishes that BE and CE are two different views of the same marketing asset (Ambler et al, 2002). In this model, marketing capabilities positively influence a more general marketing asset, which increases loyalty and price premiums, (Srivastava et al, 1998;Srivastava et al, 2001).…”

Section: Linking Be and Cementioning

confidence: 99%

See 2 more Smart Citations

Marketing assets: Relating brand equity and customer equity

Romero

Yagüe

2016

View full text Add to dashboard Cite

Purpose: Brand equity and customer equity are inextricably linked. Some authors propose that marketing activities build these intangible assets simultaneously. In contrast, others suggest that brand equity is an antecedent of customer equity. In this research, we aim to shed light about the relationship between brand equity and customer equity, by empirically testing these two alternative explanations. Design/methodology:We propose four research models that reflect these two alternatives explanations regarding the link between brand equity and customer equity. In order to estimate these models we employ Structural Equations Modelling. We measure model variables using data collected through a survey to marketing managers of services companies that operate in Spain. We compare these four research models in terms of explanatory power and goodness of fit. Findings:Our results indicate that the models that correspond to the simultaneity approach have a higher explanatory power and goodness of fit than the models that suggest that brand equity is an antecedent of customer equity, thus supporting that these intangible assets are built by marketing activities at the same time.-591-Intangible Capital -http://dx.doi.org/10.3926/ic.727Research limitations/implications: Our results recommend caution when interpreting previous research about the effects of brand (customer) equity, as they might indeed correspond to customer (brand) management. Similarly, future research focusing on customer and brand management need to take into account both managerial areas in their studies. Practical implications:From a practitioners' point of view, our findings suggest adopting a brand-customer portfolio approach to enhance company profitability. Similarly, we derive implications for firm valuation processes, which incorporate brand equity and customer equity in their calculations. Originality/value:We empirically study the relationship between brand equity and customer equity, while previous research has analyzed this topic only at a theoretical level. Clarifying this link enriches our comprehension about how companies build these marketing intangible assets and increases the accuracy of firm valuation processes.

show abstract

Section: Linking Be and Cementioning

confidence: 99%

Section: Managerial Implicationsmentioning

confidence: 99%

See 1 more Smart Citation

Marketing assets: Relating brand equity and customer equity

Romero

Yagüe

2016

View full text Add to dashboard Cite

show abstract

“…These factors point to the need for the branding literature to adopt more holistic ways of approaching brand equity; 22 ways that incorporate an understanding of the relationships that the firm is involved in and which create value for the brand. In this respect we need to focus on where value is created, but also to incorporate an understanding of the nature of these relationships, i.e.…”

Section: Some Preliminary Considerationsmentioning

confidence: 99%

Finding sources of brand value: Developing a stakeholder model of brand equity

2005

View full text Add to dashboard Cite

This article reflects the current interest in brand research towards studying non-consumer relations and their role in brand value creation. It presents a model of stakeholder equities as a tool for brand managers to assess the value of multiple stakeholders in relation to the brand. A stakeholder brand value model is then developed to strengthen understanding of the sources of brand value. It is argued that brand value is co-created through interaction with multiple strategic stakeholders. Considerations for brand mangers and suggestions for future research are presented.

show abstract

“…Marketing investments are made to enhance the value of brand assets through, for example, product research and development, channel support, and advertising. To enhance the value of customer assets, the firm gives special emphasis to investments in customer relationship building by using elements of the marketing promotion mix (e.g., communications, sales force, customer-firm interactions; Ambler et al 2002).…”

Section: Customer Portfolios Versus Financial Portfoliosmentioning

confidence: 99%

Balancing Risk and Return in a Customer Portfolio

Tarasi

Bolton

Hutt

et al. 2011

Journal of Marketing

View full text Add to dashboard Cite

Marketing managers can increase shareholder value by structuring a customer portfolio to reduce the vulnerability and volatility of cash flows. This article demonstrates how financial portfolio theory provides an organizing framework for (1) diagnosing the variability in a customer portfolio, (2) assessing the complementarity/similarity of market segments, (3) exploring market segment weights in an optimized portfolio, and (4) isolating the reward on variability that individual customers or segments provide. Using a seven-year series of customer data from a large business-to-business firm, the authors demonstrate how market segments can be characterized in terms of risk and return. Next, they identify the firm's efficient portfolio and test it against (1) its current portfolio and (2) a hypothetical profit maximization portfolio. Then, using forward-and back-testing, the authors show that the efficient portfolio has consistently lower variability than the existing customer mix and the profit maximization portfolio. The authors provide guidelines for incorporating a risk overlay into established customer management frameworks. The approach is especially well suited for business-to-business firms that serve market segments drawn from diverse sectors of the economy.Keywords: customer portfolio management, market-based assets, financial portfolio theory, return on marketing, market segmentation A lthough risk management is central to financial portfolio theory and occupies much of chief financial officers' time, researchers have given sparse attention to risk in the theory and practice of market segmentation and customer portfolio management. The existing portfolio of most firms reflects incremental and uncoordinated decisions from the past, when they gave little attention to how newly acquired customers contributed to the profitability and risk of the entire portfolio. For example, Homburg, Steiner, and Totzek (2009) find that firms tend to overestimate the value of top-tier customers and underestimate that of bottom-tier customers. In a similar vein, Dhar and Glazer (2003, p. 88) observe that few companies consider "whether all of their individually desirable customers are, from the standpoint of risk, desirable collectively." This practice is at odds with financial portfolio theory, which posits that although assets are selected individually, performance is measured on the entire portfolio, in which there is a tradeoff between risk and return (Markowitz 1952). We theorize that, like a financial portfolio, a customer portfolio is formed by making choices among market-based assets (i.e., customers) that present different risk-reward characteristics and allocating resources to optimize performance (Gupta and Lehmann 2005; Srivastava, Shervani, and Fahey 1998).The purpose of our research is to explore how financial principles of diversification and the tenets of financial portfolio theory can be effectively applied to manage a firm's customer portfolio. We demonstrate how fundamental tools of analysis that professio...

show abstract

Relating Brandand Customer Perspectives on Marketing Management

Cited by 246 publications

References 28 publications

Marketing assets: Relating brand equity and customer equity

Marketing assets: Relating brand equity and customer equity

Finding sources of brand value: Developing a stakeholder model of brand equity

Balancing Risk and Return in a Customer Portfolio

Contact Info

Product

Resources

About