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A method of customer valuation score and implementation for marketing strategy
Li Huang1; Matthew Tingchi Liu1; Xi Song2; Jerome Yen1
2022-02
Source PublicationAsia Pacific Journal of Marketing and Logistics
ABS Journal Level1
ISSN1355-5855
Volume35Issue:2Pages:344-363
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.

KeywordCustomer Valuation Theory Customer Journey Entropy-based Customer Value Score Method
DOI10.1108/APJML-05-2021-0299
URLView the original
Indexed BySSCI
Language英語English
WOS Research AreaBusiness & Economics
WOS SubjectBusiness
WOS IDWOS:000760948500001
PublisherEMERALD GROUP PUBLISHING LTD, HOWARD HOUSE, WAGON LANE, BINGLEY BD16 1WA, W YORKSHIRE, ENGLAND
Scopus ID2-s2.0-85125138565
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Document TypeJournal article
CollectionFaculty of Business Administration
Faculty of Science and Technology
Corresponding AuthorMatthew Tingchi Liu
Affiliation1.University of Macau, Macao SAR, China
2.University of Macau, Macau SAR, China and Shenzhen University, Shenzhen, China
First Author AffilicationUniversity of Macau
Corresponding Author AffilicationUniversity of Macau
Recommended Citation
GB/T 7714
Li Huang,Matthew Tingchi Liu,Xi Song,et al. A method of customer valuation score and implementation for marketing strategy[J]. Asia Pacific Journal of Marketing and Logistics, 2022, 35(2), 344-363.
APA Li Huang., Matthew Tingchi Liu., Xi Song., & Jerome Yen (2022). A method of customer valuation score and implementation for marketing strategy. Asia Pacific Journal of Marketing and Logistics, 35(2), 344-363.
MLA Li Huang,et al."A method of customer valuation score and implementation for marketing strategy".Asia Pacific Journal of Marketing and Logistics 35.2(2022):344-363.
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