Literature Review Customer Equity When focusing on Customer Equity, a deep analysis was
elaborated by R. Rust, V. Zeithaml and K. Lemon (2001),
who defined it as the sum of the discounted lifetime val-
ues of all customers and confirming its main drivers as
value equity, brand equity and relationship equity, stand-
ing for product values, corporate values and subjective
relationship.
In line with this approach companies started to prefer
long-term relationships on short-term transaction (Rust,
Zeithaml, & Lemon, 2004).
The increasing importance of customers led to an in-
crease of importance of Customer Satisfaction to produce
retention (Rust, Zeithaml, & Lemon, 2000).
More recent studies analyse the impact of Social Media,
finding that they can have a strong impact over the
brand’s reputation, as Social Media marketing and word
of mouth proved influential to Customer Equity and
brand loyalty (Kim & Ko, 2012; Severi, Ling, &
Nasermoadeli, 2014).
As this is an intangible asset, it is difficult to measure.
Kumar and George (2007) indicate that companies there-
fore normally calculate the average lifetime value of cus-
tomers, multiplying this by the total amount of their cus-
tomers.
In an attempt to also value the intangible aspects, it be-
comes then important to clarify the difference in cus-
tomer expectations that different clusters of customers
have based on the age. Indeed, internet literacy and reg-
ular exposition to the efforts towards customer retention
may have lead to different values depending on the cus-
tomer’s age.
Customer Service Customer Service seems to have developed since its orig-
inal concepts. However, the earliest traces to link services
and customer satisfaction can be found in the studies of
Clark and Shaw (Clark, 1922; Shaw, 1912).
Zinszer (1976) indicates that Customer Service describes
all critical activities needed to satisfy the customers. The
constant growth of services and the technological inno-
vation which took place in the following years brought
sharp innovations on customer service, leaning always
more towards a customer-
centric perspective (Meidutė-
Kavaliauskienė, Aranskis, & Litvinenko, 2014; Oliver,