• Fashion & Textile Research Journal
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• v.15 no.2
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• pp.219-230
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• 2013

To generate future profits, luxury brands need to recognize and understand customers as individually important and analyze the impact factors that improve specific customer equity. With the growing recognition that customer equity is a key strategic asset, this study empirically investigates the effect of customer equity drivers on customer loyalty based on the study of Vogel et al.(2008) which expanded the Rust et al.(2000)'s study on customer equity. We empirically examine if the customer equity drivers have a different impact on customer loyalty. This study hypothesizes that the relative effect of customer equity drivers would be different depending on the purchasing behavior of consumers and examines the effects of them on the relationship of the drivers of customer equity and customer loyalty. We use stepwise multiple regression analysis to empirically test the relationship of value equity, brand equity, and relationship equity and customer loyalty. Relationship equity influences customer loyalty more strongly than value equity and brand equity. Customers seem to build loyalty based on the careful assessment of all costumer equity drivers (value equity, brand equity, and relationship equity). In addition, their relative impact is different depending on the purchasing behavior of consumers. A company cannot maintain all customer equity drivers at a high level with limited marketing resources; therefore, marketing investment for all customer equity drivers need to be allocated differentially depending on the purchasing behavior of consumers.

• Journal of the Korean Operations Research and Management Science Society
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• v.35 no.1
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• pp.1-17
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• 2010

This article addresses how an organization's customer relationship management (CRM) process affects customer equity drivers and, in turn, organizational performance. By raising a three-staged model including the CRM processes, customer equity drivers, and organizational performance, the authors assert that the customer equity drivers mediate between the CRM processes and organizational performance. The empirical analysis is based on a composite survey structure that gathers data from different types of informants according to the variables. Findings indicate that the expansion process has positive relationship with all the customer equity drivers. However, the acquisition process significantly influences both perceived value equity and brand equity, and the retention process significantly influences relationship equity only. In addition, the study shows that all the customer equity drivers influence the organizational performance given the existing customers. The relationship equity among the customer equity drivers has the strongest effect on the performance.

• International Journal of Costume and Fashion
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• v.10 no.2
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• pp.73-88
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• 2010

Study aims to identify customer equity drivers and their relative importance, to represent customer lifetime value (CLV) distribution, and to investigate the effect of customer equity drivers and demographics on CLV when shopping apparels at the four big department stores in Seoul. Recently, Korean department stores marked significant decrease in sales volume and it calls for more focus on customer orientation. Customer equity is a managerial concept which considers customers as a valuable asset for business success. Sustainable competitive advantage is attainable when customer equity drivers and CLV are measured, managed and enhanced. results identified four dimensions of customer equity drivers such as 'retail brand equity: 'relationship equity', 'retail service equity', and 'price value equity'. Among them, 'relationship equity' was proved to be the most influencing factor on the customer's store patronage intention. The CLV distribution represented unique characteristics of each department store. The level of CLV depended on such demographics as age and income. Marital status influenced the relationship between perceived customer equity drivers and CLV. It also analyzed competitive structure of the four big department stores in Seoul and offered managerial suggestions. This study provided conceptual framework for the future study of customer equity related to apparel shopping at the department stores as well as managerial implications.

• Asia Marketing Journal
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• v.24 no.4
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• pp.178-189
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• 2023

As the necessity of customer relationship management (CRM) increases, measuring the performance of CRM have been actively discussed. Customer equity (CE) is regarded as an appropriate indicator for evaluating the outcomes of marketing activities. There are three drivers of CE: brand, value, and relationship equity. This study aims to investigate the impact of three drivers on customer satisfaction. Market competition is an environmental factor that affects the effectiveness of CRM. This study divides target firms into leaders and followers. This study found that the differential impact of CE drivers on customer satisfaction depends on the firm's status (leader or follower). Specifically, the brand equity driver significantly impacts the leader firm. However, the impacts of value and relationship equity drivers are bigger for follower firms. The above results suggest that firms need to build CRM strategies that consider the competitive situation of the market and their position.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2008.10a
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• pp.218-233
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• 2008

This study reveals how corporate CRM activities can influence organizational performance by integrating CRM process with customer equity drivers, which have been regarded as independent research areas. The results show that the customer equity drivers including value, brand, and relationship equity mediate between CRM processes and organizational performance. In more detail, customer acquisition, retention, and expansion have positive relationships with brand, relationship, and value equity, respectively. Moreover, even though all customer equity drivers influence organizational performance positively, our analysis suggests that relationship equity has the strongest effect on it.

• Fashion & Textile Research Journal
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• v.18 no.6
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• pp.800-811
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• 2016

This study aims to extract the multi-channel attributes of Dongdaemun-based fashion brands and consider the effects of these attributes on customer equity, customer satisfaction and re-purchase intention. In total, 493 samples of those who have purchased Dongdaemun-based fashion brand products using multi-channels were collected for the final data analysis, which was performed using SPSS 21.0 and AMOS 18.0. The findings of study are as follows. Among the multi-channel attributes of Dongdaemun-based fashion brands, entertainment and informativeness had a significant effect on all customer equity drivers. In terms of the effects of customer equity drivers on customer satisfaction and re-purchase intention, all customer equity drivers significantly influenced customer satisfaction, while brand equity significantly influenced re-purchase intention. Also, customer satisfaction significantly affected re-purchase intention. In the effective relationship between customer equity drivers and CLV, brand equity causes a significant influence on CLV amongst the customer equity drivers. There were significant differences among groups following the multi-channel shopping orientation of consumers. This study is significant for its scientific focus on the distribution channels of Dongdaemun, and in terms of the practical aspect of identifying the multi-channel attributes considered to be important to consumers. Measuring customer equity will suggest implications about the long-term direction of the development of Dongdaemun-based fashion brands.

• CRM연구
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• v.3 no.2
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• pp.43-68
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• 2010

One of the recent research trends that universities are increasingly adopting the concept of 'customer' and the customer-oriented strategy has urged us to research enterprise-wide CRM strategy adaptable to university administration. As the first step of CRM strategy for university management, we try to validate the difference of CRM strategic factors among university types. Drawing upon both CRM process and customer equity drivers, which have been recognized as core frameworks for CRM strategy, we developed those survey instruments adoptable into university industry, and validated statistically-significant difference among 12 types of university group constructed by the levels of university evaluation and the location of the universities. We collected 261 responses from 177 universities from all over the country and analyzed the data to see the levels of CRM processes consisting of customer acquisition, retention, and expansion, and customer equity drivers consisting of value equity, brand equity, and relationship equity by using multivariate ANOVA(MANOVA). The result confirms the explicit differences of the levels of CRM processes and customer equity drivers between the groups by university evaluation levels(high/middle/low). However, the analysis failed to show the significant differences of those between the group by university locations(the capital/the suburbs/the six megalopolises/other countries). More specifically, the level of activities for customer acquisition and retention of the universities in the higher-graded group are significantly different from those in the lower-graded group from the perspective of CRM process. In terms of customer equity drivers, the levels of both brand equity and relationship equity of the higher-graded group are significantly higher than those of both middle and lower-graded group. In addition, we found that the value equity between the higher and lower-graded groups, and the brand equity between the middle and lower-graded groups are different each other. This study provides an important meaning in that we tried to consider CRM strategy which has been mainly addressed in profit-making industries in terms of non-profit organization context. Our endeavors to develop and validate empirical measurements adoptable to university context could be an academic contribution. In terms of practical meaning, the processes and results of this study might be a guideline to many universities to build their own CRM strategies. According to the research results, those insights could be expressed in several messages. First, we propose to universities that they should plan their own differentiated CRM strategies according to their positions in terms of university evaluation. For example, although it is acceptable that a university in lower-level group might follow the CRM process strategy of the middle-level group universities, it is not a good idea to imitate the customer acquisition and retention activities of the higher-level group universities. Moreover, since this study reported that the level of universities' brand equity is just correlated with the level of university evaluation, it might be pointless for the middle or lower-leveled universities if they just copy their brand equity strategies from those of higher-leveled ones even though such activities are seemingly attractive. Meanwhile, the difference of CRM strategy by university position might provide universities with the direction where they should go for their CRM strategies. For instance, our study implies that the lower-positioned universities should improve all of the customer equity drivers with concerted efforts because their value, brand, and relationship equities are inferior compared with the higher and middle-positioned universities' ones. This also means that they should focus on customer acquisition and expansion initiatives rather than those for customer retention because all of the customer equity drivers could be influenced by the two kinds of CRM processes (KIm and Lee, 2010). Surely specific and detailed action plans for enhancing customer equity drivers should be developed after grasping their customer migration patterns illustrated by the rates of acquisition, retention, upgrade, downgrade, and defection for each customer segment.

• Fashion & Textile Research Journal
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• v.15 no.1
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• pp.103-115
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• 2013

This study identifies how the luxury brand marketing mix affects customer equity drivers and suggests intangible equity management strategies so that companies can make long-term profits through luxury brands based on empirical studies of Korean luxury consumers. The results of the study are as follows: First, this study classified the properties that use 8 key factors (product integrity, heritage, exclusivity, premium image, environment and consumption experience, premium price, luxury communication strategy, and brand signature). Second, it shows that product integrity and luxury communication strategy have a positive effect on all customer equity drivers, that brand signature has a positive effect on value equity and brand equity, and that premium price has a negative effect on relation equity. It is important to provide products and services equipped with high quality and luxurious designs based on excellent craftsmanship in order to establish brand equity and value equity. Brand identity needs to be maintained and unique brand signatures need to be developed based on the long history of luxury brands against a traditional backdrop. A diversified communication strategy improves brand recognition while playing a part in facilitating brand association and brand image. In order to improve relationship equity, actions such as a loyalty program to strengthen brand loyalty, need to be taken as well as measures to maintain and enhance customer trust through a reasonable price strategy.

• Fashion & Textile Research Journal
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• v.18 no.4
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• pp.438-449
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• 2016

Domestic and foreign tourism authorities show that the most favorite tourist activity is shopping. Tourism income in Korea set a record in 2014 due to a large influx of Chinese tourists. Dongdaemun fashion market was selected as the most preferred destination for Chinese tourists shopping in Korea. This study examines the effect of store attributes on customer equity at Dongdaemun shopping malls. This study adopted a survey; subsequently, 637 questionnaires were used in the final analysis. Collected data were analyzed using SPSS 21.0 and AMOS 18.0 statistics program. The main findings of this study are as follows. Among the three store attributes of Dongdaemun shopping malls, service and environment attributes appeared to influence the three drivers of consumer equity. In addition, value equity was identified to provide a positive impact on Customer Lifetime Value (CLV), brand equity, and relationship equity were identified as having a positive impact on revisit intention. Second, the relationships between the variables were significantly different in two types of the Dongdaemun fashion shopping mall (Doota vs Lotte Fitin). In addition, this study offers a valuable implication for brand marketers to maintain and develop customer equity in Dongdaemun fashion markets.

• CRM연구
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• v.2 no.1
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• pp.15-32
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• 2009

Companies consider customers as an equity, which is expected to increase customer loyalty. However, customer loyalty does not linearly increase in real world by the customer equity always. This research investigates a mediating variable which influence the relationship between customer equity drivers and customer loyalty. We focus on customer value as a customer equity driver which is the most basic factor among customer equity drivers. We examine that online trust as a mediator between the customer value and customer loyalty in on online shopping mall context. Customer value consists of perceived convenience, quality, and price. Findings indicate that online trust mediates the relationship between customer value and customer loyalty. Especially, online trust perfectly mediates the perceived convenience and the perceived quality. The perceived convenience influences online trust most significantly and perceived quality and perceived price are following in the order of strength. Our results implicate that online trust is an important mediator of the relationship between customer equity and customer loyalty in online shopping mall context and need to be managed as a customer relationship management index to increase customer loyalty. In addition, perceived convenience is the most important factor to increase online trust in matured online market.