The Impact of Marketing-Induced Versus Word-of-Mouth Customer Acquisition on Customer Equity Growth

Hello, I posted an empirical research of marketing dealing with customers acquisition. Here is the short summary...

Both acting marketing investment and word-of-mouth method can be used by companies to acquire their customers. Customer acquisition process plays important role on the long-term profitability of the firm. This article tried to develop a statistical model capable of measuring the long-term impact of customer acquisitions through different channels on customer equity growth. The authors propose and test an empirical model that captures these long-term effects. The findings revealed that word-of-mouth customers add nearly twice as much long-term value to the firm while marketing induced customers add more short-term value.