KOREASCHOLAR

With increasing competition in the global marketplace and the shift marketing activities from product-centered to consumer-centered, companies make efforts to collect information on overseas markets and global consumers prior to the initiation of new marketing activities. The concept of customer equity has been introduced as a tool to continously secure customers and create profits in the future. These trends also play an important role in the fashion industry since many fashion brands are growing into global companies, but need to adapt their innovative marketing strategies to different market environments, such as cultural settings. For this reason, more understanding of the individual consumers and the responses to marketing strategies is required. Furthermore, the trend cycle of SPA brands tends to be very short, so corporate profitability is highly sensitive to consumers’ attitudinal changes. The purpose of this study is to investigate the role of cultural value in the global customer equity model focusing on SPA brands. For that, fashion SPA brands which are active globally will be selected and surveys will be distributed in several countries in order to compare and analyze the impact of cultural value on customer equity. The expected results of this study will contribute to the global market segmentation in terms of improved marketing efforts. Marketers will be able to understand which one of the three customer equity drivers – relationship, value, brand – is most important to the cultural setting. Furthermore, the findings will indicate which cultural value is most dominant in the respective country to direct marketing approaches towards these values. Through this improved knowledge over customers, companies can lower their marketing investments, analyze the individual profitability of customers to their company and communicate in more efficient ways to the customers. By gaining more knowledge about the consumer behavior in the respective country, SPA brands will be able to better understand product preferences and purchase patterns and therefore plan product style and life cycles in more efficient ways, which is crucial in such a fast continously changing marketplace. In this way, this study extends the research scope towards a cultural perspective on customer equity.

• Eunju Ko(Yonsei University) Corresponding author
• Chang Han Lee(Yonsei University)
• Lisa Kesper(Yonsei University)