During the past decade, domestic researches have revealed that customer equity of Korean firms consists of value equity, brand equity and retention equity(relationship equity). However, customer equities from each of the firms and industries are const...
During the past decade, domestic researches have revealed that customer equity of Korean firms consists of value equity, brand equity and retention equity(relationship equity). However, customer equities from each of the firms and industries are constructed differently and are not managed in the same manner. Depending on the nature of an industry or a firm, the type of building, and management of customer equity should be differentiated. More so, service firms should initially build customer equity with the basis of value equity. In this way, they can build a relationship equity effectively, and thus make close customer relationships. Therefore, the direction of strategy for service firms to strengthen customer equity should be through consolidating brand equity and relationship equity on the basis of value equity. The three components of customer equity of service firms appear to be various depending on the characteristics of each firm, and the management should thus be differentiated. In order to strengthen customer equity, enhancing customer loyalty, achieving customer satisfaction and effective CRM implementation should be done. The significances of this study are that it organized the previous studies of customer equity for the past 10 years in Korea and suggest the direction of further research, helping managers of service firms to strengthen customer competitiveness by consolidating customer equity. However, this study has a limitation due to the fact that it is based on previous research. Further study of customer equity with a deeper and broader sense would overcome such limitation.