Journal of Finance and Bank Management

Customer Equity Evaluation: A Study With Reference to Jammu and Kashmir Bank of India
Hardeep Chahal, Renu Bala

Abstract
Because of intensified competitions among companies that highlight the unprecedented importance of the customers, various studies on customer equity are carried out to relate the key focus of marketing efforts ( i.e. customer ) to the key measures of firm’s financial success ( i.e. market value). This type of research is gaining significant attention among the academicians, researchers and practitioners to know worth of the customers to the company. Despite the growing significance of customer equity, its measurement has been the issue of new discussion among the scholars. Hence, there is still need to continue to refine the measurement of customer equity model. The present study provides an overview of customer equity literatures that highlights the unprecedented importance of customers towards the business of any enterprises and considers customer as a valuable asset that can be measured, managed and maximised just like any other assets of the company. Based on existing literature, this study begins with an overview of customer equity, showing how it is measured and modeled in the business research. To help one to understand the concept better, the researchers use the example of the Jammu Kashmir Bank, Pvt Ltd, and analyses its customer equity for a period of ten years from 2002–03 to 2011–12. The study has identified, conceptualised and measured customer equity and its metrics, using data from J&K bank to provide new empirical insights into the marketing literature on customer equity.

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