Dissertation > Economic > Economic planning and management > Enterprise economy > Enterprise Marketing Management

Research on Measurement and Enhancement of Customer Equity Using Report Data of China Unicom Company

Author LiYan
Tutor ShaoJingBo
School Harbin Institute of Technology
Course International Trade
Keywords China Unicom Customer Equity Customer Equity Sustainable Ratio
CLC F274
Type Master's thesis
Year 2012
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Customer acquisition and retention have formed core competencies of ChinaUnicom. Customer equity deserve much focus because that it own self can covercomplete information about the profit contribution of today and future, solve somemanagement problems as well as be the creation of sustainable competitive. To doall this requires a reliable method to measure these indexes, come into being aenterprise-tailored evaluation system, then extract information according to the finalresults. Finally, implement different promotion strategies referred to differentinformation characteristics. This customer equity measurement system is applicableto the contract companies, however, non-contractual company, as long as they cansolve the true retention rate reasonably, will also be applicable to the measurement.Combined with analysis of China Unicom, company reporting data approachcan be determined. The customer equity measurement models includ the currentcustomer value, future customer value and total customer equity model, which canform a time-series data for each indicator. When putting the measure system intopractice, first design a “public indicators-model fitted indicators-Operationalindicators " multi-level index system, the characteristics of the customer growtheach month reflect the true principle of retention rate time series in accordance withthe shifted β geometric model. In Eviews6.0, fitting AR(12) model of the trueretention rate produce the S-step ahead point forecast. Then use Matlab7.0to obtaina technology substitution equation predicting customer cumulative number. Accountfor the minimum time interval, then turn to the task of combining all the componentstogether to create an estimate of CE systems including customer equity sustainableratio (CESR). Finally, base on the internal logic relations between CE and CESR,plan a CE framework to provide the managers with guidelines for establishing thenecessary response values that determine the effectiveness of different promotionalstrategies.

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