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Analyzing the Effect of Customer Equity on Repurchase Intentions

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Author(s): Ali Kazemi | Hossien Rezaei Dolat Abadi | Nastaran Kabiry

Journal: International Journal of Academic Research in Business and Social Sciences
ISSN 2222-6990

Volume: 03;
Issue: 06;
Start page: 78;
Date: 2013;
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Keywords: Value equity | Brand equity | Relationship equity | Customer equity | Theory of Planned Behavior (TPB) | Repurchase intentions

ABSTRACT
Recently there is a shift in the interest of managers and researchers from a traditional focus on product management to a more recent focus on customer equity that considers customers as the most important company’s asset. The current exploratory study examine the relationships among value equity, brand equity, relationship equity, attitude, subjective norms, perceived behavioral control and repurchase intentions through a structural equation model . For the purposes of this study, questionnaires were distributed to a randomly selected group of 200 customers of Fast food unit of Kalleh Company that are divided into three groups included fast foods, restaurants and coffee shops in Isfahan city. A total of 190 responses were received. Of these, ten (10) responses had to be discarded due to invalid or incomplete data entries. Thus the sample comprising of a total of 180 respondents was used for analysis. The data was analyzed by AMOS software. As for repurchase intentions, value equity had significant positive effects indirectly via perceived behavioral control, while brand equity and relationship equity had no significant influences. In addition, The results indicate that the effects of value, brand and relationship equity on attitude are positive and significant, while subjective norms are influenced by value equity and relationship equity. The perceived behavioral control is just influenced by value equity. Attitude and subjective norms have no significant influence on repurchase intentions, while perceived behavioral control has positive effect on them. Therefore, value equity emerges as the strongest driver of customer equity that effects repurchase intentions indirectly through perceived behavioral control. The findings of this study can enable many businesses like distribution companies to forecast the customers repurchase intentions more accurately and provide a guide to managing their assets and marketing activities as well.

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