| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5033778 | International Journal of Research in Marketing | 2016 | 10 Pages |
Abstract
Is customer equity a good proxy for a firm's market value? Using data from Netflix over 10Â years, I provide evidence that a CLV-based customer equity model tracks market capitalization remarkably well under versatile conditions of stable growth, profit volatility, and even a broad market crash. However, if a firm shifts business model through radical innovation, the customer equity model requires recalibration to continue tracking market capitalization.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Marketing
Authors
Shoutong Thomas Zhang,