5.8 Silveira, C., Oliveira, M. and Luce, F. (2017), Comparing alternative approaches to estimate customer equity,

Question 1

2 alternatives

Answer 1

Alternative 1: Customer equity as the total of the customer lifetime values summed over all of the
firm’s current customers

Alternative 2: Customer equity as the total of the customer lifetime values summed over all of the
firm’s current and potential customers

Question 2

Results

Answer 2

the results are similar, suggesting the credibility to the use
of both methods/model in marketing.