The Effect of Customer Driven Marketing Strategies on Building Customer Equity In Case of National Cement Share Company, Dire Dawa

Although, customer driven marketing strategies are the main tools to obtain customer equity, there is still a number of companies followed sales driven strategy instead of customer driven marketing strategies. Accordingly, the study aims to investigate the effect of customer driven strategy on building customer equity in case of National Cement Share Company, Dire Dawa city administration. The study departs from other previous studies by examining the effects of customer driven marketing strategy on customer value, customer satisfaction, customer loyalty and finally customer equity structurally. To achieve the objective of the study the researcher was used both descriptive and explanatory research design. Primary source of data was employed. To collect data from employees and customers the researcher was used questionnaire and interview. Both close ended and open ended question was used. The target population of the study was the employees of national cement Share Company, who works in marketing and sales department and the customer (end users) of national cement Share Company. The sampling technique to select respondent from the total population was convenience sampling (to select customer), whereas for employees the researcher was employed census survey. To estimate the effect of independent variable on dependent variable simultaneous equation modeling (SEM) was used. Both descriptive and inferential data analysis mechanism was used by entering the data in to smart PLS. The result indicates that customer driven marketing strategies have an impact on building customer equity. Similarly the intermediate variable customer satisfaction, customer value and customer value have lower, moderate and great effect on customer equity of National Cement Share Company respectively. For secure customer equity the company should improve first its strategy marketing especially, for positioning and differentiation and improve the satisfaction of customers through determining their expectation first.