Exploring the interface between management accounting and marketing: a literature review of customer accounting

Matsuoka, Kohsuke

doi:10.1007/s00187-020-00299-9

Exploring the interface between management accounting and marketing: a literature review of customer accounting

Original Paper
Published: 17 April 2020

Volume 31, pages 157–208, (2020)
Cite this article

Journal of Management Control Aims and scope Submit manuscript

Kohsuke Matsuoka ORCID: orcid.org/0000-0003-3486-3632¹

2373 Accesses
7 Citations
Explore all metrics

Abstract

The availability of customer data has been enhanced in the digital economy, which can be used to measure the performance of marketing activities. Accounting techniques using customer data are collectively called customer accounting (CA). To seek the interface between management accounting and marketing, this study first discusses the three accounting weaknesses (the lack of revenue milepost information, revenue sustainability measurements, and intangibles capitalization) and relate them to marketing concepts (customer journey, customer acquisition and retention, and customer assets). Next, this study reviews literature on CA. Revenue accounting (RA), which focuses on revenue in an accounting period, and aims at the planning and control of marketing. Customer profitability analysis (CPA) has developed in the stream of strategic management accounting. The central focus of CPA is the allocation of selling, general and administrative expenses to individual customers through activity-based costing. Customer lifetime value and customer equity (CLV and CE) focus on the present value of cash flow from customer acquisition and retention. While RA and CPA respectively focus on revenues and costs in an accounting period, CLV and CE take cash flows in all future periods into consideration. Finally, links of each CA tool to the three marketing concepts are discussed to seek further development of CA.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Research in marketing strategy

Article 18 August 2018

Customer experience: fundamental premises and implications for research

Article Open access 13 January 2020

The customer value proposition: evolution, development, and application in marketing

Article 18 March 2017

Notes

Although the proponents discuss RA in terms of both financial and management accounting, the following discussion focuses only on issues regarding management accounting.
Glover and Ijiri (2002) name their other candidate for their new accounting concept as customer accounting (p. 67). This name can capture a wider range of marketing activities, because it includes nonfinancial customer data. Glover and Ijiri, however, adopt the name of revenue accounting because they want to highlight the financial nature of their proposed accounting.
B-10. Although it is slightly beyond the scope of this study, resource allocation between customers or customer prioritization are also debated in marketing literatures as customer profitability and/or CLV are different among customers due to their heterogeneity. Homburg et al. (2008) show that offering differentiated marketing programs to top-tier customers (customer prioritization) improves customer profitability. Ryals (2005) and Balboni and Terho (2016) conducted case studies of customer strategies including customer divestment. Marketing programs for customer divestment, however, entail a risk of revenge from angry customers over the long-term (e.g., Haenel et al. 2019; Wagner et al. 2009).
Ijiri and Lin (2006) illustrate that a Markov chain model in RA can also be used to analyze an agency problem that a manager’s decision making aimed at the maximization of short-term profitability does not always lead to the best long-term profitability.
Although the proponents of RA do not explain clearly why they make this assumption, it is convincing. Ijiri (1999), for example, analyzes Amazon.com that spends most of its capital outlay in customer acquisition that results in losses.
Strategic cost management is another term used mainly in United States (e.g., Shank and Govindarajan 1993), but this study adopts strategic management accounting as a comprehensive term to explicitly incorporate RA.
Guilding et al. (2001) is an exception, because they show an illustrative case of customer revenues from multiple departments in the hotel industry.
Two papers are excluded from the table because they do not specify which costs are assigned to customers (Cambra-Fierro et al. 2018; Csikósová et al. 2016).
Bonacchi et al. (2015) is an accounting research that estimates CE based on public data, but it is published in Contemporary Accounting Research, which is not listed in Table 1
To analyze customer experience throughout the customer journey, qualitative tools such as text analysis would be useful, because it informs raw customer voices which cannot be understood through qualitative financial data (Roslender and Hart 2010; Boyce 2000).
Customer asset stock and flow statements are called CE stock and flow statements in the study of Wiesel et al. (2008) because they use the term CE as the total CLV of current customers.

References

Allen, B. J., Dholakia, U. M., & Basuroy, S. (2016). The economic benefits to retailers from customer participation in proprietary web panels. Journal of Retailing, 92(2), 147–161. https://doi.org/10.1016/j.jretai.2015.12.003.
Article Google Scholar
Armelini, G., Barrot, C., & Becker, J. U. (2015). Referral programs, customer value, and the relevance of dyadic characteristics. International Journal of Research in Marketing, 32(4), 449–452. https://doi.org/10.1016/j.ijresmar.2015.09.004.
Article Google Scholar
Balboni, B., & Terho, H. (2016). Outward-looking and future-oriented customer value potential management: The sales force value appropriation role. Industrial Marketing Management, 53, 181–193. https://doi.org/10.1016/j.indmarman.2015.05.022.
Article Google Scholar
Ballings, M., McCullough, H., & Bharadwaj, N. (2018). Cause marketing and customer profitability. Journal of the Academy of Marketing Science, 46(2), 234–251. https://doi.org/10.1007/s11747-017-0571-4.
Article Google Scholar
Banker, R. D., Gordon, P., & Srinivasan, D. (2000). An empirical investigation of an incentive plan that includes nonfinancial performance measures. The Accounting Review, 75(1), 65–92.
Article Google Scholar
Banker, R. D., & Mashruwala, R. (2007). The moderating role of competition in the relationship between nonfinancial measures and future financial performance. Contemporary Accounting Research, 24(3), 763–793. https://doi.org/10.1506/car.24.3.4.
Article Google Scholar
Baumgartner, H., & Pieters, R. (2003). The structural influence of marketing journals: A citation analysis of the discipline and its subareas over time. Journal of Marketing, 67(2), 123–139.
Article Google Scholar
Bayer, E., Tuli, K. R., & Skiera, B. (2017). Do disclosures of customer metrics lower investors’ and analysts’ uncertainty but hurt firm performance? Journal of Marketing Research, 54(2), 239–259. https://doi.org/10.1509/jmr.14.0028.
Article Google Scholar
Bellis-Jones, R. (1989). Customer profitability analysis. Management Accounting, 67(2), 26–28.
Google Scholar
Berger, P. D., & Nasr, N. I. (1998). Customer lifetime value: Marketing models and applications. Journal of Interactive Marketing, 12(1), 17–30.
Article Google Scholar
Bhimani, A., & Bromwich, M. (2009). Management accounting in a digital and global economy: The interface of strategy, technology, and cost information. In C. S. Chapman (Ed.), Accounting, organizations, and institutions (pp. 85–111). Oxford: Oxford University Press.
Chapter Google Scholar
Blattberg, R. C., & Deighton, J. (1996). Manage marketing by the customer equity test. Harvard Business Review, 74(4), 136–144.
Google Scholar
Bonacchi, M., Kolev, K., & Lev, B. (2015). Customer franchise-a hidden, yet crucial, asset. Contemporary Accounting Research, 32(3), 1024–1049. https://doi.org/10.1111/1911-3846.12095.
Article Google Scholar
Borle, S., Singh, S. S., & Jain, D. C. (2008). Customer lifetime value measurement. Management Science, 54(1), 100–112. https://doi.org/10.1287/mnsc.1070.0746.
Article Google Scholar
Boyce, G. (2000). Valuing customers and loyalty: The rhetoric of customer focus versus the reality of alienation and exclusion of (de valued) customers. Critical Perspectives on Accounting, 11(6), 649–689. https://doi.org/10.1006/cpac.2000.0408.
Article Google Scholar
Bowman, D., & Narayandas, D. (2004). Linking customer management effort to customer profitability in business markets. Journal of Marketing Research (JMR), 41(4), 433–447. https://doi.org/10.1509/jmkr.41.4.433.47011.
Article Google Scholar
Cambra-Fierro, J., Kamakura, W. A., Melero-Polo, I., & Sese, F. J. (2016). Are multichannel customers really more valuable? An analysis of banking services. International Journal of Research in Marketing, 33(1), 208–212. https://doi.org/10.1016/j.ijresmar.2015.12.007.
Article Google Scholar
Cambra-Fierro, J., Melero-Polo, I., Sese, F. J., & van Doorn, J. (2018). Customer-firm interactions and the path to profitability. Journal of Service Research, 21(2), 201–218. https://doi.org/10.1177/1094670517738369.
Article Google Scholar
Campbell, D., & Frei, F. (2004). The persistence of customer profitability: Empirical evidence and implications from a financial services firm. Journal of Service Research, 7(2), 107–123. https://doi.org/10.1177/1094670504268419.
Article Google Scholar
Campbell, D., & Frei, F. (2010). Cost structure, customer profitability, and retention implications of self-service distribution channels: Evidence from customer behavior in an online banking channel. Management Science, 56(1), 4–24. https://doi.org/10.1287/mnsc.1090.1066.
Article Google Scholar
Casas-Arce, P., Martínez-Jerez, F. A., & Narayanan, V. G. (2017). The impact of forward-looking metrics on employee decision-making: The case of customer lifetime value. Accounting Review, 92(3), 31–56. https://doi.org/10.2308/accr-51554.
Article Google Scholar
Chae, H., & Ko, E. (2016). Customer social participation in the social networking services and its impact upon the customer equity of global fashion brands. Journal of Business Research, 69(9), 3804–3812. https://doi.org/10.1016/j.jbusres.2015.12.072.
Article Google Scholar
Chan, T. Y., Wu, C., & Xie, Y. (2011). Measuring the lifetime value of customers acquired from google search advertising. Marketing Science, 30(5), 837–850. https://doi.org/10.1287/mksc.1110.0658.
Article Google Scholar
Chang, H., Eunju, K., Henrikki, T., Phan, M. C. T., Aiello, G., Donvito, R., et al. (2014). Marketing mix and customer equity of spa brands: Cross-cultural perspectives. Journal of Business Research, 67(10), 2155–2163. https://doi.org/10.1016/j.jbusres.2014.04.025.
Article Google Scholar
Cooper, R., & Kaplan, R. S. (1991). The design of cost management systems: Text, cases, and readings. Englewood Cliffs: Prentice Hall.
Google Scholar
Csikósová, A., Čulková, K., & Janošková, M. (2016). Evaluation of quantitative indicators of marketing activities in the banking sector. Journal of Business Research, 69(11), 5028–5033. https://doi.org/10.1016/j.jbusres.2016.04.075.
Article Google Scholar
Dahana, W. D., Miwa, Y., & Morisada, M. (2019). Linking lifestyle to customer lifetime value: An exploratory study in an online fashion retail market. Journal of Business Research, 99, 319–331. https://doi.org/10.1016/j.jbusres.2019.02.049.
Article Google Scholar
Datar, S. M., & Rajan, M. V. (2017). Horngren’s cost accounting: A managerial emphasis (16th ed.). New York: Pearson.
Google Scholar
Dong, W., Swain, S. D., & Berger, P. D. (2007). The role of channel quality in customer equity management. Journal of Business Research, 60(12), 1243–1252. https://doi.org/10.1016/j.jbusres.2007.05.005.
Article Google Scholar
Dwyer, R. F. (1997). Customer lifetime valuation to support marketing decision making. Journal of Interactive Marketing, 11(4), 6–13.
Google Scholar
Edeling, A., & Fischer, M. (2016). Marketing's impact on firm value: Generalizations from a meta-analysis. Journal of Marketing Research (JMR), 53(4), 515–534. https://doi.org/10.1509/jmr.14.0046.
Article Google Scholar
Edeling, A., & Himme, A. (2018). When does market share matter? New empirical generalizations from a meta-analysis of the market share–performance relationship. Journal of Marketing, 82(3), 1–24. https://doi.org/10.1509/jm.16.0250.
Article Google Scholar
Fader, P. S., Hardie, B. G. S., & Ka Lok, L. (2005). Rfm and clv: Using iso-value curves for customer base analysis. Journal of Marketing Research (JMR), 42(4), 415–430. https://doi.org/10.1509/jmkr.2005.42.4.415.
Article Google Scholar
Foster, G., & Gupta, M. (1994). Marketing, cost management and managenient accounting. Journal of Management Accounting Research, 6, 63–77.
Google Scholar
Foster, G., Gupta, M., & Sjoblom, L. (1996). Customer profitability analysis: Challenges and new directions. Journal of Cost Management, 10, 5–17.
Google Scholar
Franco-Santos, M., Lucianetti, L., & Bourne, M. (2012). Contemporary performance measurement systems: A review of their consequences and a framework for research. Management Accounting Research, 23(2), 79–119. https://doi.org/10.1016/j.mar.2012.04.001.
Article Google Scholar
Gao, L., Melero-Polo, I., & Sese, F. J. (2019). Customer equity drivers, customer experience quality, and customer profitability in banking services: The moderating role of social influence. Journal of Service Research. https://doi.org/10.1177/1094670519856119.
Article Google Scholar
Gensler, S., Leeflang, P., & Skiera, B. (2012). Impact of online channel use on customer revenues and costs to serve: Considering product portfolios and self-selection. International Journal of Research in Marketing, 29(2), 192–201. https://doi.org/10.1016/j.ijresmar.2011.09.004.
Article Google Scholar
Glady, N., Lemmens, A., & Croux, C. (2015). Unveiling the relationship between the transaction timing, spending and dropout behavior of customers. International Journal of Research in Marketing, 32(1), 78–93. https://doi.org/10.1016/j.ijresmar.2014.09.005.
Article Google Scholar
Glover, J. C., & Ijiri, Y. (2002). “Revenue accounting” in the age of e-commerce: A framework for conceptual, analytical, and exchange rate considerations. Journal of International Financial Management & Accounting, 13(1), 32–72.
Article Google Scholar
Guilding, C., Kennedy, D. J., & Mcmanus, L. (2001). Extending the boudaries of customer accounting: Applications in the hotel industry. Journal of Hospitality & Tourism Research, 25(2), 173–194.
Article Google Scholar
Guilding, C., & McManus, L. (2002). The incidence, perceived merit and antecedents of customer accounting: An exploratory note. Accounting, Organizations & Society, 27(1/2), 45–59. https://doi.org/10.1016/S0361-3682(01)00030-7.
Article Google Scholar
Gupta, S., Lehmann, D. R., & Stuart, J. A. (2004). Valuing customers. Journal of Marketing Research (JMR), 41(1), 7–18. https://doi.org/10.1509/jmkr.41.1.7.25084.
Article Google Scholar
Gupta, S., & Zeithaml, V. (2006). Customer metrics and their impact on financial performance. Marketing Science, 25(6), 718–739. https://doi.org/10.1287/mksc.1060.0221.
Article Google Scholar
Haenel, C. M., Wetzel, H. A., & Hammerschmidt, M. (2019). The perils of service contract divestment: When and why customers seek revenge and how it can be attenuated. Journal of Service Research, 22(3), 301–322. https://doi.org/10.1177/1094670519835312.
Article Google Scholar
Haenlein, M., Kaplan, A. M., & Schoder, D. (2006). Valuing the real option of abandoning unprofitable customers when calculating customer lifetime value. Journal of Marketing, 70(3), 5–20. https://doi.org/10.1509/jmkg.70.3.5.
Article Google Scholar
Helgesen, Ø. (2007). Customer accounting and customer profitability analysis for the order handling industry—a managerial accounting approach. Industrial Marketing Management, 36(6), 757–769. https://doi.org/10.1016/j.indmarman.2006.06.002.
Article Google Scholar
Helliar, C., Cobb, I., & Innes, J. (2002). A longitudinal case study of profitability reporting in a bank. British Accounting Review, 34(1), 27–53. https://doi.org/10.1006/bare.2001.0180.
Article Google Scholar
Hidalgo, P., Manzur, E., Olavarrieta, S., & Farías, P. (2008). Customer retention and price matching: The afps case. Journal of Business Research, 61(6), 691–696. https://doi.org/10.1016/j.jbusres.2007.06.046.
Article Google Scholar
Hogan, J. E., Lemon, K. N., & Rust, R. T. (2002). Customer equity management: Charting new directions for the future of marketing. Journal of Service Research, 5(1), 4. https://doi.org/10.1177/1094670502005001002.
Article Google Scholar
Hogan, J. E., Lemon, K. N., & Libai, B. (2003). What is the true value of a lost customer? Journal of Service Research, 5(3), 196. https://doi.org/10.1177/1094670502238915.
Article Google Scholar
Hogan, J. E., Lemon, K. N., & Libai, B. (2004). Quantifying the ripple: Word-of-mouth and advertising effectiveness. Journal of Advertising Research, 44(3), 271–280. https://doi.org/10.1017/S0021849904040243.
Article Google Scholar
Holm, M., Kumar, V., & Plenborg, T. (2016). An investigation of customer accounting systems as a source of sustainable competitive advantage. Advances in Accounting, 32, 18–30. https://doi.org/10.1016/j.adiac.2015.12.002.
Article Google Scholar
Holm, M., Kumar, V., & Rohde, C. (2012). Measuring customer profitability in complex environments: An interdisciplinary contingency framework. Journal of the Academy of Marketing Science, 40(3), 387–401. https://doi.org/10.1007/s11747-011-0263-4.
Article Google Scholar
Homburg, C., Droll, M., & Totzek, D. (2008). Customer prioritization: Does it pay off, and how should it be implemented? Journal of Marketing, 72(5), 110–130. https://doi.org/10.1509/jmkg.72.5.110.
Article Google Scholar
Homburg, C., Steiner, V. V., & Totzek, D. (2009). Managing dynamics in a customer portfolio. Journal of Marketing, 73(5), 70–89. https://doi.org/10.1509/jmkg.73.5.70.
Article Google Scholar
Howard, J. A., & Sheth, J. (1969). The theory of buyer behavior. New York: Wiley.
Google Scholar
Ijiri, Y. (1978). Cash-flow accounting and its structure. Journal of Accounting, Auditing & Finance, 1(4), 331–348.
Google Scholar
Ijiri, Y. (1979). Oil & gas accounting-turbulence in financial reporting. Financial Executive, 47(8), 18–26.
Google Scholar
Ijiri, Y., & Kaneda, N. (2003). Extension of revenue accounting: Using Markov processes and dynamic programming. Journal of Management Accounting, Japan, 12(1), 3–14.
Google Scholar
Ijiri, Y., & Lin, H. (2006). Moral hazard depicted in Markov processes with strategy options. Journal of Engineering & Technology Management, 23(1/2), 79–99.
Article Google Scholar
Ittner, C. D., & Larcker, D. F. (1998). Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction. Journal of Accounting Research, 36(3), 1–35.
Article Google Scholar
Iyengar, R., Ansari, A., & Gupta, S. (2007). A model of consumer learning for service quality and usage. Journal of Marketing Research (JMR), 44(4), 529–544. https://doi.org/10.1509/jmkr.44.4.529.
Article Google Scholar
Jackson, B. B. (1985). Winning and keeping industrial customers. Lexington: D.C. Heath and Company.
Google Scholar
Kaplan, R. S. (1998). Innovation action research: Creating new management theory and practice. Journal of Management Accounting Research, 10, 89–118.
Google Scholar
Katsikeas, C. S., Morgan, N. A., Leonidou, L. C., & Hult, G. T. M. (2016). Assessing performance outcomes in marketing. Journal of Marketing, 80(2), 1–20.
Article Google Scholar
Kim, A. J., & Ko, E. (2012). Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand. Journal of Business Research, 65(10), 1480–1486. https://doi.org/10.1016/j.jbusres.2011.10.014.
Article Google Scholar
Kim, K. H., Ko, E., Xu, B., & Han, Y. (2012). Increasing customer equity of luxury fashion brands through nurturing consumer attitude. Journal of Business Research, 65(10), 1495–1499. https://doi.org/10.1016/j.jbusres.2011.10.016.
Article Google Scholar
Kotler, P. (1974). Marketing during periods of shortage. Journal of Marketing, 38(3), 20–29.
Article Google Scholar
Kotler, P., Kartajaya, H., & Setiawan, I. (2016). Marketing 4.0: Moving from traditional to digital. New Jersey: Wiley.
Google Scholar
Kotler, P., & Kevin, K. L. (2016). Marketing management (15th ed.). Essex: Pearson.
Google Scholar
Kumar, A., Bezawada, R., Rishika, R., Janakiraman, R., & Kannan, P. K. (2016). From social to sale: The effects of firm-generated content in social media on customer behavior. Journal of Marketing, 80(1), 7–25. https://doi.org/10.1509/jm.14.0249.
Article Google Scholar
Kumar, V., Petersen, J. A., & Leone, R. P. (2010). Driving profitability by encouraging customer referrals: Who, when, and how. Journal of Marketing, 74(5), 1–17. https://doi.org/10.1509/jmkg.74.5.1.
Article Google Scholar
Kumar, V., Petersen, J. A., & Leone, R. P. (2013). Defining, measuring, and managing business reference value. Journal of Marketing, 77(1), 68–86. https://doi.org/10.1509/jm.11.0424.
Article Google Scholar
Kumar, V., & Shah, D. (2009). Expanding the role of marketing: From customer equity to market capitalization. Journal of Marketing, 73(6), 119–136. https://doi.org/10.1509/jmkg.73.6.119.
Article Google Scholar
Kumar, V., Shah, D., & Venkatesan, R. (2006). Managing retailer profitability—one customer at a time! Journal of Retailing, 82(4), 277–294. https://doi.org/10.1016/j.jretai.2006.08.002.
Article Google Scholar
Kumar, V., Sriram, S., Luo, A., & Chintagunta, P. K. (2011). Assessing the effect of marketing investments in a business marketing context. Marketing Science, 30(5), 924–940. https://doi.org/10.1287/mksc.1110.0661.
Article Google Scholar
Kumar, V., Venkatesan, R., Bohling, T., & Beckmann, D. (2008). The power of clv: Managing customer lifetime value at ibm. Marketing Science, 27(4), 585–599. https://doi.org/10.1287/mksc.1070.0319.
Article Google Scholar
Langfield-Smith, K. (2008). Strategic management accounting: How far have we come in 25 years? Accounting, Auditing & Accountability Journal, 21(2), 204–228.
Article Google Scholar
Larivière, B. (2008). Linking perceptual and behavioral customer metrics to multiperiod customer profitability. Journal of Service Research, 11(1), 3–21. https://doi.org/10.1177/1094670508319092.
Article Google Scholar
Lemon, K., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80, 69–96.
Article Google Scholar
Lewis, M. (2005a). Incorporating strategic consumer behavior into customer valuation. Journal of Marketing, 69(4), 230–238. https://doi.org/10.1509/jmkg.2005.69.4.230.
Article Google Scholar
Lewis, M. (2005b). Research note: A dynamic programming approach to customer relationship pricing. Management Science, 51(6), 986–994. https://doi.org/10.1287/mnsc.1050.0373.
Article Google Scholar
Lewis, M. (2006). Customer acquisition promotions and customer asset value. Journal of Marketing Research (JMR), 43(2), 195–203. https://doi.org/10.1509/jmkr.43.2.195.
Article Google Scholar
Libai, B., Muller, E., & Peres, R. (2009). The diffusion of services. Journal of Marketing Research (JMR), 46(2), 163–175. https://doi.org/10.1509/jmkr.46.2.163.
Article Google Scholar
Libai, B., Narayandas, D., & Humby, C. (2002). Toward an individual customer profitability model: A segment-based approach. Journal of Service Research, 5(1), 69. https://doi.org/10.1177/1094670502005001007.
Article Google Scholar
Lind, J., & Strömsten, T. (2006). When do firms use different types of customer accounting? Journal of Business Research, 59(12), 1257–1266. https://doi.org/10.1016/j.jbusres.2006.09.005.
Article Google Scholar
Lord, B. R., Shanahan, Y. P., & Nolan, B. M. (2007). The use and perceived merit of customer accounting in new zealand. Accounting Research Journal, 20(1), 47–59.
Article Google Scholar
Luo, X. (2007). Consumer negative voice and firm-idiosyncratic stock returns. Journal of Marketing, 71(3), 75–88. https://doi.org/10.1509/jmkg.71.3.75.
Article Google Scholar
Luo, X. (2008). When marketing strategy first meets wall street: Marketing spendings and firms' initial public offerings. Journal of Marketing, 72(5), 98–109. https://doi.org/10.1509/jmkg.72.5.098.
Article Google Scholar
Luo, X., & Homburg, C. (2008). Satisfaction, complaint, and the stock value gap. Journal of Marketing, 72(4), 29–43. https://doi.org/10.1509/jmkg.72.4.029.
Article Google Scholar
McCarthy, D. M., & Fader, P. S. (2018). Customer-based corporate valuation for publicly traded noncontractual firms. Journal of Marketing Research (JMR), 55(5), 617–635. https://doi.org/10.1177/0022243718802843.
Article Google Scholar
McCarthy, D. M., Fader, P. S., & Hardie, B. G. S. (2017). Valuing subscription-based businesses using publicly disclosed customer data. Journal of Marketing, 81(1), 17–35. https://doi.org/10.1509/jm.15.0519.
Article Google Scholar
McManus, L. (2013). Customer accounting and marketing performance measures in the hotel industry: Evidence from Australia. International Journal of Hospitality Management, 33, 140–152. https://doi.org/10.1016/j.ijhm.2012.07.007.
Article Google Scholar
McManus, L., & Guilding, C. (2008). Exploring the potential of customer accounting: A synthesis of the accounting and marketing literatures. Journal of Marketing Management, 24(7–8), 771–795. https://doi.org/10.1362/026725708X345515.
Article Google Scholar
McManus, L., & Guilding, C. (2009). Customer accounting adoption in Australian companies: A field study. Accounting, Accountability & Performance, 15(1), 33–69.
Google Scholar
Nenonen, S., & Storbacka, K. (2016). Driving shareholder value with customer asset management: Moving beyond customer lifetime value. Industrial Marketing Management, 52, 140–150. https://doi.org/10.1016/j.indmarman.2015.05.019.
Article Google Scholar
Neslin, S., Taylor, G., Grantham, K., & McNeil, K. (2013). Overcoming the 'recency trap' in customer relationship management. Journal of the Academy of Marketing Science, 41(3), 320–337. https://doi.org/10.1007/s11747-012-0312-7.
Article Google Scholar
Ng, F., & Wood, Z. (2018). Unlocking customer accounting’s potential: A service-dominant logic approach. Pacific Accounting Review, 30(3), 371–386. https://doi.org/10.1108/par-07-2016-0071.
Article Google Scholar
Niraj, R., Gupta, M., & Narasimhan, C. (2001). Customer profitability in a supply chain. Journal of Marketing, 65(3), 1–16. https://doi.org/10.1509/jmkg.65.3.1.18332.
Article Google Scholar
Otley, D. (2016). The contingency theory of management accounting and control: 1980–2014. Management Accounting Research, 31, 45–62. https://doi.org/10.1016/j.mar.2016.02.001.
Article Google Scholar
Palmatier, R. W. (2008). Interfirm relational drivers of customer value. Journal of Marketing, 72(4), 76–89. https://doi.org/10.1509/jmkg.72.4.076.
Article Google Scholar
Persson, A., & Ryals, L. (2014). Making customer relationship decisions: Analytics v rules of thumb. Journal of Business Research, 67(8), 1725–1732. https://doi.org/10.1016/j.jbusres.2014.02.019.
Article Google Scholar
Petersen, J. A., & Kumar, V. (2015). Perceived risk, product returns, and optimal resource allocation: Evidence from a field experiment. Journal of Marketing Research (JMR), 52(2), 268–285. https://doi.org/10.1509/jmr.14.0174.
Article Google Scholar
Petersen, J. A., Kumar, V., Polo, Y., & Sese, F. J. (2018). Unlocking the power of marketing: Understanding the links between customer mindset metrics, behavior, and profitability. Journal of the Academy of Marketing Science, 46(5), 813–836. https://doi.org/10.1007/s11747-017-0554-5.
Article Google Scholar
Pfeifer, P. E., & Carraway, R. L. (2000). Modeling customer relationships as Markov chains. Journal of Interactive Marketing, 14(2), 43–55.
Article Google Scholar
Pfeifer, P. E., Haskins, M. E., & Conroy, R. M. (2005). Customer lifetime value, customer profitability, and the treatment of acquisition spending. Journal of Managerial Issues, 17(1), 11–25.
Google Scholar
Raithel, S., Taylor, C. R., & Hock, S. J. (2016). Are super bowl ads a super waste of money? Examining the intermediary roles of customer-based brand equity and customer equity effects. Journal of Business Research, 69(9), 3788–3794. https://doi.org/10.1016/j.jbusres.2015.09.019.
Article Google Scholar
Rakuten Inc. (2019) Corporate report 2018. https://global.rakuten.com/corp/investors/documents/annual.html. Accessed 28 Sep 2019
Reinartz, W., Thomas, J. S., & Kumar, V. (2005). Balancing acquisition and retention resources to maximize customer profitability. Journal of Marketing, 69(1), 63–79. https://doi.org/10.1509/jmkg.69.1.63.55511.
Article Google Scholar
Reinartz, W. J., & Kumar, V. (2000). On the profitability of long-life customers in a noncontractual setting: An empirical investigation and implications for marketing. Journal of Marketing, 64(4), 17–35. https://doi.org/10.1509/jmkg.64.4.17.18077.
Article Google Scholar
Reinartz, W. J., & Kumar, V. (2003). The impact of customer relationship characteristics on profitable lifetime duration. Journal of Marketing, 67(1), 77–99. https://doi.org/10.1509/jmkg.67.1.77.18589.
Article Google Scholar
Rhouma, T. B., & Zaccour, G. (2018). Optimal marketing strategies for the acquisition and retention of service subscribers. Management Science, 64(6), 2609–2627. https://doi.org/10.1287/mnsc.2017.2752.
Article Google Scholar
Rogers, E. M. (1962). Diffusion of innovation. New York: Free Press.
Google Scholar
Roslender, R., & Hart, S. J. (2003). In search of strategic management accounting: Theoretical and field study perspectives. Management Accounting Research, 14(3), 255–279.
Article Google Scholar
Roslender, R., & Hart, S. J. (2010). Taking the customer into account: Transcending the construction of the customer through the promotion of self-accounting. Critical Perspectives on Accounting, 21(8), 739–753. https://doi.org/10.1016/j.cpa.2010.04.002.
Article Google Scholar
Roslender, R., & Wilson, R. M. S. (2008). The marketing/accounting synergy: A final word but certainly not the last word. Journal of Marketing Management, 24(7–8), 865–876.
Article Google Scholar
Rust, R. T., Kumar, V., & Venkatesan, R. (2011). Will the frog change into a prince? Predicting future customer profitability. International Journal of Research in Marketing, 28(4), 281–294. https://doi.org/10.1016/j.ijresmar.2011.05.003.
Article Google Scholar
Rust, R. T., Lemon, K. N., & Zeithaml, V. A. (2004). Return on marketing: Using customer equity to focus marketing strategy. Journal of Marketing, 68(1), 109–127.
Article Google Scholar
Rust, R. T., & Ming-Hui, H. (2014). The service revolution and the transformation of marketing science. Marketing Science, 33(2), 206–221. https://doi.org/10.1287/mksc.2013.0836.
Article Google Scholar
Rust, R. T., & Tuck Siong, C. (2006). Marketing models of service and relationships. Marketing Science, 25(6), 560–580. https://doi.org/10.1287/mksc.1050.0139.
Article Google Scholar
Ryals, L. (2005). Making customer relationship management work: The measurement and profitable management of customer relationships. Journal of Marketing, 69(4), 252–261. https://doi.org/10.1509/jmkg.2005.69.4.252.
Article Google Scholar
Ryals, L., & Knox, S. (2007). Measuring and managing customer relationship risk in business markets. Industrial Marketing Management, 36(6), 823–833. https://doi.org/10.1016/j.indmarman.2006.06.017.
Article Google Scholar
Schmitt, P., Skiera, B., & Van den Bulte, C. (2011). Referral programs and customer value. Journal of Marketing, 75(1), 46–59. https://doi.org/10.1509/jmkg.75.1.46.
Article Google Scholar
Schulze, C., Skiera, B., & Wiesel, T. (2012). Linking customer and financial metrics to shareholder value: The leverage effect in customer-based valuation. Journal of Marketing, 76(2), 17–32. https://doi.org/10.1509/jm.10.0280.
Article Google Scholar
Schweidel, D. A., Bradlow, E. T., & Fader, P. S. (2011). Portfolio dynamics for customers of a multiservice provider. Management Science, 57(3), 471–486. https://doi.org/10.1287/mnsc.1100.1284.
Article Google Scholar
Segarra-Moliner, J. R., & Moliner-Tena, M. Á. (2016). Customer equity and clv in spanish telecommunication services. Journal of Business Research, 69(10), 4694–4705. https://doi.org/10.1016/j.jbusres.2016.04.017.
Article Google Scholar
Shah, D., Kumar, V., Qu, Y., & Chen, S. (2012). Unprofitable cross-buying: Evidence from consumer and business markets. Journal of Marketing, 76(3), 78–95. https://doi.org/10.1509/jm.10.0445.
Article Google Scholar
Shank, J. K., & Govindarajan, V. (1993). Strategic cost management: The new tool for competitive advantage. New York: Free Press.
Google Scholar
Silveira, C. S., de Oliveira, M. O. R., & Luce, F. B. (2012). Customer equity and market value: Two methods, same results? Journal of Business Research, 65(12), 1752–1758. https://doi.org/10.1016/j.jbusres.2011.10.034.
Article Google Scholar
Simmonds, K. (1981). Strategic management accounting. Management Accounting, 59(4), 26–30.
Google Scholar
Skiera, B., Bermes, M., & Horn, L. (2011). Customer equity sustainability ratio: A new metric for assessing a firm's future orientation. Journal of Marketing, 75(3), 118–131. https://doi.org/10.1509/jmkg.75.3.118.
Article Google Scholar
Smith, R. E., & Wright, W. F. (2004). Determinants of customer loyalty and financial performance. Journal of Management Accounting Research, 16, 183–205.
Article Google Scholar
Song, T. H., Kim, S. Y., & Kim, J. Y. (2016). The dynamic effect of customer equity across firm growth: The case of small and medium-sized online retailers. Journal of Business Research, 69(9), 3755–3764. https://doi.org/10.1016/j.jbusres.2015.12.067.
Article Google Scholar
Srivastava, R. K., Shervani, T. A., & Fahey, L. (1998). Market-based assets and shareholder value: A framework for analysis. Journal of Marketing, 62(1), 2–18.
Article Google Scholar
Stahl, F., Heitmann, M., Lehmann, D. R., & Neslin, S. A. (2012). The impact of brand equity on customer acquisition, retention, and profit margin. Journal of Marketing, 76(4), 44–63. https://doi.org/10.1509/jm.10.0522.
Article Google Scholar
Strong, E. K. (1922). Theories of selling. Journal of Applied Psychology, 9, 75–86.
Article Google Scholar
Sublaban, C. S. Y., & Aranha, F. (2009). Estimating cellphone providers' customer equity. Journal of Business Research, 62(9), 891–898. https://doi.org/10.1016/j.jbusres.2008.10.006.
Article Google Scholar
Sunder, S., Kumar, V., & Zhao, Y. I. (2016). Measuring the lifetime value of a customer in the consumer packaged goods industry. Journal of Marketing Research (JMR), 53(6), 901–921. https://doi.org/10.1509/jmr.14.0641.
Article Google Scholar
Tanima, F. A., & Bates, K. (2015). The incidence and perceived managerial merit of customer accounting in New Zealand. Pacific Accounting Review (Emerald Group Publishing Limited), 27(4), 466–485. https://doi.org/10.1108/PAR-05-2013-0049.
Article Google Scholar
Thomas, J. S. (2001). A methodology for linking customer acquisition to customer retention. Journal of Marketing Research (JMR), 38(2), 262–268. https://doi.org/10.1509/jmkr.38.2.262.18848.
Article Google Scholar
Thomas, J. S., Blattberg, R. C., & Fox, E. J. (2004). Recapturing lost customers. Journal of Marketing Research (JMR), 41(1), 31–45. https://doi.org/10.1509/jmkr.41.1.31.25086.
Article Google Scholar
Thomas, J. S., & Sullivan, U. Y. (2005). Managing marketing communications with multichannel customers. Journal of Marketing, 69(4), 239–251. https://doi.org/10.1509/jmkg.2005.69.4.239.
Article Google Scholar
Tirenni, G., Labbi, A., Berrospi, C., Elisseeff, A., Bhose, T., Pauro, K., et al. (2007). Customer equity and lifetime management (CELM) Finnair case study. Marketing Science, 26(4), 553–565. https://doi.org/10.1287/mksc.1060.0249.
Article Google Scholar
van Raaij, E. M., Vernooij, M. J. A., & van Triest, S. (2003). The implementation of customer profitability analysis: A case study. Industrial Marketing Management, 32(7), 573. https://doi.org/10.1016/S0019-8501(03)00006-3.
Article Google Scholar
Venkatesan, R., & Kumar, V. (2004). A customer lifetime value framework for customer selection and resource allocation strategy. Journal of Marketing, 68(4), 106–125. https://doi.org/10.1509/jmkg.68.4.106.42728.
Article Google Scholar
Venkatesan, R., Kumar, V., & Bohling, T. (2007). Optimal customer relationship management using Bayesian decision theory: An application for customer selection. Journal of Marketing Research (JMR), 44(4), 579–594. https://doi.org/10.1509/jmkr.44.4.579.
Article Google Scholar
Verhoef, P. C., Reinartz, W. J., & Krafft, M. (2010). Customer engagement as a new perspective in customer management. Journal of Service Research, 13(3), 247–252. https://doi.org/10.1177/1094670510375461.
Article Google Scholar
Villanueva, J., Yoo, S., & Hanssens, D. M. (2008). The impact of marketing-induced versus word-of-mouth customer acquisition on customer equity growth. Journal of Marketing Research (JMR), 45(1), 48–59. https://doi.org/10.1509/jmkr.45.1.48.
Article Google Scholar
Wagner, T., Hennig-Thurau, T., & Rudolph, T. (2009). Does customer demotion jeopardize loyalty? Journal of Marketing, 73(3), 69–85. https://doi.org/10.1509/jmkg.73.3.069.
Article Google Scholar
Wang, H., Kim, K. H., Ko, E., & Liu, H. (2016). Relationship between service quality and customer equity in traditional markets. Journal of Business Research, 69(9), 3827–3834. https://doi.org/10.1016/j.jbusres.2016.04.007.
Article Google Scholar
Weir, K. (2008). Examining the theoretical influences of customer valuation metrics. Journal of Marketing Management, 24(7–8), 797–824. https://doi.org/10.1362/026725708X345524.
Article Google Scholar
Wiesel, T., Skiera, B., & Villanueva, J. (2008). Customer equity: An integral part of financial reporting. Journal of Marketing, 72(2), 1–14. https://doi.org/10.1509/jmkg.72.2.1.
Article Google Scholar
Xiaojing, D., & Chintagunta, P. K. (2016). Satisfaction spillovers across categories. Marketing Science, 35(2), 275–283. https://doi.org/10.1287/mksc.2015.0941.
Article Google Scholar
Xue, M., Hitt, L. M., & Chen, P.-Y. (2011). Determinants and outcomes of internet banking adoption. Management Science, 57(2), 291–307. https://doi.org/10.1287/mnsc.1100.1187.
Article Google Scholar
Yang, S., Garrett, T. C., & Kim, K. H. (2016). Do confucian principles enhance sustainable marketing and customer equity? Journal of Business Research, 69(9), 3772–3779. https://doi.org/10.1016/j.jbusres.2015.12.069.
Article Google Scholar
Yuan, C. L., Kim, J., & Kim, S. J. (2016). Parasocial relationship effects on customer equity in the social media context. Journal of Business Research, 69(9), 3795–3803. https://doi.org/10.1016/j.jbusres.2015.12.071.
Article Google Scholar
Zhang, H., Ko, E., & Lee, E. (2013). Moderating effects of nationality and product category on the relationship between innovation and customer equity in Korea and China. Journal of Product Innovation Management, 30(1), 110–122. https://doi.org/10.1111/j.1540-5885.2012.00990.x.
Article Google Scholar
Zhang, S. T. (2016). Firm valuation from customer equity: When does it work and when does it fail? International Journal of Research in Marketing, 33(4), 966–970. https://doi.org/10.1016/j.ijresmar.2016.03.007.
Article Google Scholar
Zou, P., & Li, G. (2016). How emerging market investors' value competitors' customer equity: Brand crisis spillover in china. Journal of Business Research, 69(9), 3765–3771. https://doi.org/10.1016/j.jbusres.2015.12.068.
Article Google Scholar

Download references

Acknowledgements

This work was supported by JSPS KAKENHI Grant number JP17K13825.

Author information

Authors and Affiliations

Tohoku Gakuin University, 1-3-1 Tsuchitoi, Aoba, Sendai, Miyagi, 980-8511, Japan
Kohsuke Matsuoka

Authors

Kohsuke Matsuoka
View author publications
You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Kohsuke Matsuoka.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Matsuoka, K. Exploring the interface between management accounting and marketing: a literature review of customer accounting. J Manag Control 31, 157–208 (2020). https://doi.org/10.1007/s00187-020-00299-9

Download citation

Published: 17 April 2020
Issue Date: September 2020
DOI: https://doi.org/10.1007/s00187-020-00299-9

Keywords

JEL Classification

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Exploring the interface between management accounting and marketing: a literature review of customer accounting

Abstract

Access this article

Similar content being viewed by others

Research in marketing strategy

Customer experience: fundamental premises and implications for research

The customer value proposition: evolution, development, and application in marketing

Notes

References

Acknowledgements

Author information

Authors and Affiliations

Corresponding author

Additional information

Publisher's Note

Rights and permissions

About this article

Cite this article

Keywords

JEL Classification

Navigation

Exploring the interface between management accounting and marketing: a literature review of customer accounting

Abstract

Access this article

Similar content being viewed by others

Research in marketing strategy

Customer experience: fundamental premises and implications for research

The customer value proposition: evolution, development, and application in marketing

Notes

References

Acknowledgements

Author information

Authors and Affiliations

Corresponding author

Additional information

Publisher's Note

Rights and permissions

About this article

Cite this article

Share this article

Keywords

JEL Classification

Search

Navigation