Customer equity can estimate customer lifetime value for the company (Rust et al, 2004). The firm can make proper marketing strategy with customer equity. Customer equity can both satisfy consumers and make a profit for the company (Lemon et al., 2001).So we built a model to connect service quality and customer equity to study how to prove the competitive power of traditional market. In this paper we used customer satisfaction and brand attitude as mediating variables since Store brands have become an important contributor to retail differentiation and basis for building store loyalty (Dodd and Lindley, 2003) and in retail market customer equity varies with customer satisfaction( Pappu and Quester 2006). Considering that Chinese economic growth rate was slowing down, traditional market is being a priority for Chinese Government to relieve severe export pressure and employment pressure. In this research we would like to study the relationships among service quality, customer satisfaction and brand attitude and how they influence customer equity in traditional markets. Through this study we also find out how to competitive power of traditional market through managing CLV and proving service quality

• Huanzhang Wang(Changwon National University)
• Kyung Hoon Kim(Changwon National University)
• Honglei Liu(Dalian University of Foreign Languages, China)