Academic-Capital

Customer equity functions in a positive perspective of the company, its offerings and its employees.   Customer equity has significant worth to companies that desire to encourage customers to continue to pay for products and services that raise shareholder value, firm growth and employment prospects. A study by Shultze, et. al. (2012) found that increases in customer equity have a larger impact on shareholder value. It is this shareholder value that is used for reinvestment for future growth and opportunities.  Customer equity, marketing practices, and revenue are closely associated. When customers consider their total impressions of a company and its offerings they will naturally consider purchasing or not purchasing the product or service again. Customer equity raises the likelihood that they will make a decision to purchase again…and hopefully again and again. This correlation of marketing metrics, customer receptivity and stock value has been associated in a number of diff

Much has been written about executive pay and there appears to be a natural distrust of rapid growth in compensation during a recessive period of history. Some may argue that executive pay has risen too far in recent decades while others argue that the pay is warranted based upon performance. We can be sure that pay has risen substantially over the past few decades and this is not necessarily a bad thing as long as the performance metrics are accurate and reflective of actual performance. How that performance is measured becomes a key concern. Like employees, executives need motivation and incentives to perform at their optimal level. However, such performance should be based on their actual contribution to the organization versus a quick in and out strategy. Improper metrics can lead to high pay and low performance situations that damage the financial performance of an organization and the employ-ability of those who work for them. Because there is a natural distrust of higher