Abstract for: Linking Brand Equity and Customer Equity: A System Dynamics Perspective

Customer equity and brand equity are two important concepts in the current debate among marketing researchers and practitioners. This research attempts to conceptualize the linkage between brand equity and customer equity from a system dynamics perspective. While isolated models for both concepts exist, they are usually highly abstract and hard to operationalize in day to day marketing management. Conceptualizing the linkage between brand equity and customer equity explicitly in a system dynamics model provides insights on how these two concepts interact with each other and, thus, improves the marketing management decision-making process. This research engages well-known hierarchy of effect models (AIDA and ATR) to investigate the customer development chain related to brand equity and customer equity. The resulting system dynamics model is tested with a variety of initial settings and policy options.