The Impact of Customer Value Management on Potential Profits - A Proposed Management Accounting Framework

Purpose- The purpose of this study is to propose a customer value management framework to improve the potential profits using the Management accounting techniques.Design/methodology/approach- Based on the literature, this study identifies and adapts the most appropriate management accounting techniques to manage the customer value and hence improve potential profits. It also tests the perceptions of managers and management accountants of the Egyptian service sector concerning the relative merits of such a framework.Findings- The most significant finding is that the current study accepted the revised model because it provided better fit indices compared with the fit indices of the hypothesized model. A key finding in the current study that has not been investigated in previous studies is that the customer value analysis has a positive and significant impact on companies’ profitability. The study also found that there is an indirect relationship between customer profitability analysis and companies’ profitability. Other factors in the proposed framework have significant positive relationships.Originality/value- This paper contributes to management accounting literature by proposing a framework for managing customer value for the potential profits improvement purpose, using customer profitability analysis; customer value analysis; and value add-costing techniques together with the proposed sequences. It is also a practical contribution to improving the potential profits of the Egyptian service sector.

INTELIJENSI PEMASARAN DALAM UPAYA MEMPERTAHANKAN KEUNGGULAN KOMPETITIF

ne" Marketing intelligence is very important for a company to maintain its competitive advantage inorder to face industrial competition. So, if it is done optimally, the information about competitors data can thenbe achieved and the company can make a decision related to the information. In reality great scale company,which is the object of the research, implement marketing inteligence based on intelligence activities, sources,and factors. Therefore, the company has to adopt the marketing intelligence system to face existing industrialcompetition and be able to apply it as the procedure. The result shows that: 1) The marketing intelligenceemployed by great scale companies uses competitive advantage planning and customer value analysis inobserving its competitor. 2) The marketing intelligence source employed by great scale companies uses twosources, company environment (internal) and outside environment of the company (external). 3) Marketingintelligence factor employed by great scale companies uses 3 factors. First, the observation of 6 main competitordata including competitor’s products, price, promotion, strategy, sale, and other data.Second, competitiveadvantage factor emphasizing on information processing related to competitor’s innovation such as productquality. Third, the salesman factor who employs person in the company to do marketing intelligence in whichthe company ability is very important in these factors application.