Pub. date: 2011 | Online Pub. Date: August 25, 2011 | DOI: 10.4135/9781412994156 | Print ISBN: 9781412973823 | Online ISBN: 9781412994156| Publisher:SAGE Publications, Inc.About this encyclopedia
Daniel R. Sweeney
Over the past decade, sports marketing practitioners have begun to alter their perspectives on marketing from that of a product-centered perspective to more of a consumer-oriented focus. Born out of the transition of the global economy to a service-based economy and the spread of service-based industries, customer equity refers to the sum total of the discounted lifetime value of a sport organization's current and future potential customers. Grounded in overlapping marketing concepts such as direct marketing, service quality, relationship marketing, and brand equity, the customer equity paradigm recognizes customers as the primary source of an organization's current and future cash flows. Thus, the value of a customer to an organization is viewed in terms of the customer's current profitability as well as the net discounted revenue contribution stream Each ...