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Customer value based entry decision in international markets

Evanschitzky, H. and van Wangenheim, F. (2006) Customer value based entry decision in international markets. Journal of Relationship Marketing, 5 (1). pp. 79-91. ISSN 1533-2667

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Abstract

Market entry decisions are some of a firm's most important long-term strategic choices. Still, the international marketing literature has not yet fully incorporated the idea of relationship marketing in general, and the customer value concept in particular, as a basis for market entry decisions. This article presents some conceptual ideas about a customer value based market selection model. The metric International Added Customer Equity(IACE), a straight forward decision criterion derived from the customer equity concept is presented as an additional decision criterion for export market selection and ultimately market entry.