A New Model for Customer Equity

Abstract

In this study, the fundamental model of customer equity is studied and an alternative model is tested where attitudinal and behavioral customer loyalty are treated as two additional individual components of customer equity. In gathering required data, survey method is used with 377 respondents based on judgement sampling. In order to test the proposed model, a different calculation for customer equity is applied. In model testing, LISREL package program is used and structural equation modelling (SEM) is applied. Results indicate that the proposed model stating that customer equity, has two more components, namely attitudinal loyalty and behavioral loyalty, is significant at 95% confidence level, has a high goodness of fit (GFI = .93) and has an acceptable level of root mean square error (RMSEA= .07). However, results also show a correlation between value equity and brand equity terms, which can be tested with different products or sample in future studies.