Customer equity
“ the present value of total revenues that customers base of firm will generate in its lifetimes.”
Customer equity is made up of three components:
Value equity (value for money) – customers assessment based on product, its price and its convenience.
If all three match for customer , the firm is considered to have high value equity.
Brand equity - the commercial value that derives from consumer perception of the brand name of a particular products.
Relationship equity - is what makes a customer stay back with the preferred brand rather than shift to any other.