The Customer Lifetime Value Concept and its Contribution to Corporate Valuation

Bauer, Hans H. ; Hammerschmidt, Maik ; Brähler, Matthias

Document Type: Article
Year of publication: 2003
The title of a journal, publication series: Yearbook of Marketing and Consumer Research
Page range: 47-67
ISSN: 1612-9814
Publication language: English
Institution: Business School > ABWL u. Marketing II (Bauer 1993-, Em)
Subject: 330 Economics
Subject headings (SWD): Marketing , Shareholder-Value-Analyse , Unternehmensbewertung
Abstract: The shareholder value and the customer lifetime value approach are conceptually and methodically analogous. Both concepts calculate the value of a particular decision unit by discounting the forecasted net cash flows by the risk-adjusted cost of capital. However, virtually no scholarly attention has been devoted to the question if any of the components of the shareholder value could be determined in a more marketoriented way using individual customer lifetime values. Therefore, the main objective of this paper is to systematically explore the contribution of both concepts to the field of corporate valuation. At first we present a comprehensive calculation method for estimating both the individual lifetime value of a customer and the customer equity. After a critical examination of the shareholder value concept, a synthesis of both value approaches allowing for a disaggregated and more realistic corporate valuation will be presented.

Dieser Eintrag ist Teil der Universitätsbibliographie.

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