A method of customer valuation score and implementation for marketing strategy
Asia Pacific Journal of Marketing and Logistics
ISSN: 1355-5855
Article publication date: 22 February 2022
Issue publication date: 9 February 2023
Abstract
Purpose
This study aims to introduce a compelling customer value score method (CVSM), which is applicable for different product categories, and elaborates customer values in three components (direct economic value, depth of direct economic value and breadth of the indirect economic value) throughout three stages of customer journey.
Design/methodology/approach
This study collected data from the Internet-shopping platforms, namely Taobao and T-Mall from 2019 to 2020 with particular focus on three product categories: lipstick (fast-moving consumer goods), mobile phones (durable goods) and alcohol (a hybrid of the other two product types) from 37 selected firms. The CVSM employs an entropy-based multiple criteria analysis, of which the weight of each indictor is not fixed artificially, but computed by the entropy-based method that calculates informative differences among the indicators (profit, revenue, positive reviews, search index and likes and favorites).
Findings
The result shows that product categories and market status have a moderation effect on three components in customer values. The findings suggested marketing strategies for different consumer goods, where the fast-moving consumer goods like lipstick should focus on the pre-purchase stage while the durable goods should emphasize post-purchase stage when the market is rapidly changing.
Originality/value
The study brings new insights to Kumar’s customer value theory by integrating product categories and the market status, revealing that three components of customer values differ in their contributions to the whole customer values. This paper further contributed managerial suggestions for marketers with regards to three stages of customer journey.
Keywords
Acknowledgements
Funding: This research was funded by the University of Macau (award number: MYRG2019-00037-FBA).
Citation
Huang, L., Liu, M.T., Song, X. and Yen, J. (2023), "A method of customer valuation score and implementation for marketing strategy", Asia Pacific Journal of Marketing and Logistics, Vol. 35 No. 2, pp. 344-363. https://doi.org/10.1108/APJML-05-2021-0299
Publisher
:Emerald Publishing Limited
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