A review of customer lifetime value, marketing mix and brand equity literature

Abstract

Most businesses are now seeking to collect detailed information on target markets and future customers to attract national and global markets. Thus, the company needs to develop a strategic way to increase company profits, retain regular customers and grab new customers. In implementing a marketing strategy, the company uses different life value and seems like the customer. The customer lifetime value (CLV) strategy depends on the type of business practice of every company. It is a concept used to assess a business's customers worth and an accurate metric in measuring the company's potential customers. The CLV plays an important role, an effective and efficient concept for companies dealing with the global and local competition oriented to improve customer service. In conjunction with the existing issues, this paper aims to provide an understanding of the customer lifetime value, marketing mix, and brand equity literature that has compiled from the numerous relevant sources. This research uses a qualitative approach by literature review. CLV, marketing mix and brand equity analyses were carried out by reading and reviewing 26 peer-reviewed journal articles and summarised on the basis of the subject in two tables, namely article journal and publisher distribution and article category. This study's findings are the marketing mix has a significant effect on brand equity and CLV. Also, brand equity has a significant effect on CLV. In conclusion, this study has identified that customer lifetime value is a concept used to determine the potential and loyal company customers. It measured by using the period of cash flow, revenue, total cost, the total number of projected lives of the customer, time horizon and discounting factor. We also concluded that customer lifetime value is not separated from the encouragement of marketing activities (4Ps) and brand equity.