The Impact of Brand Equity on Customer Equity

Brand equity (BE) and customer equity (CE) are the key concepts in marketing research. Although, less attention has been paid to the link between BE and CE. This research presents a conceptual framework for studying the relationship among the BE key components (knowledge, relevance, esteem, differentiation) and the CE key components or customer lifetime value (customer acquisition, share of wallet), which has been specifically examined in the elevator industry. This research also examines the role of marketing activities (advertising, discounts, and free consulting services) in this relationship. The data were gathered from a set of completed questionnaires and analyzed using linear regression and logistic regression. The results indicate significant effect of brand knowledge and differentiation on acquisition and share of wallet for existing customers and prospects. Findings also illustrate the positive effect of marketing activities, especially advertising and free consulting services on brand knowledge and differentiation.