A comparison of customer equity drivers between distributors and end-users : a case study of a high technology firm

Abstract

In order to attract and satisfy customers, firms have switched their businesses from transactions to relationships models and the concept of product-oriented has been replaced by the customer-focused concept. This last concept considers customers as important assets for the firms and provides a basis to develop and implement effective strategies with a strong customer focus. Under this model, customer equity is seen as a valid measure established by the total customer lifetime value from the firm’s current and potential customers and base its concept on their relationship and the impact of three main equity drivers: value equity, brand equity and relationship equity. The objective of this thesis is to determine the similarities and differences of customer equity drivers between distributors and end-users. For this reason, this research was conducted using a qualitative content analysis on a case study, where distributors, end-users and company’s representatives from a high technology firm have been interviewed. The findings support the literature review that advocates the high importance of value equity drivers for distributors and end-users and the different level of importance of brand and relationship equity for distributors and end-users in the high technology sector. Therefore, this research provides theoretical and practical contributions to the field of international business by providing a clear differentiation of customer equity drivers in a distribution chain, that will facilitate a better allocation of a firm's resources, develop more effective marketing strategies and achieve a stronger customer advantage in the high technology sector.