Which factor does customer equity NOT emphasize?

Customer equity focuses on the financial value derived from a company's customer base, highlighting factors that contribute to maximizing that value over time. The key components of customer equity include customer retention, enhancing customer value, and customer acquisition.

Customer retention is vital because it ensures that existing customers continue to make purchases, ultimately increasing their lifetime value to the company. Enhancing customer value involves providing better products and services or improving customer experiences to foster loyalty and satisfaction, which also boosts long-term profitability. Customer acquisition emphasizes the importance of bringing new customers into the fold, as expanding the customer base can significantly contribute to overall revenue growth.

On the other hand, price competition does not align with the core principles of customer equity. Focusing merely on price can lead to a race to the bottom, where companies prioritize low prices over building strong relationships and long-term value with customers. This strategy can undermine customer loyalty and ultimately detracts from the sustainable value a company seeks to achieve through customer equity.