Answer :
Final answer:
Bertram's Beer is trying to build Customer Equity. This is a long-term strategy that focuses on maintaining the loyalty of its existing older demographic while attracting a younger demographic to increase its overall profitability.
Explanation:
In structuring its company to encourage loyalty among its most profitable older customers while also targeting a new generation of customers, Bertram's Beer is attempting to build Customer Equity. Customer Equity is the combined customer lifetime values of all the customers of the company.
Brands often attempt to build customer equity because it grounds its business strategy in the long term with a focus on profitable customer relationships. Profitable older customers provide a reliable income stream while newer, younger customers represent potential future income. By working to maintain the loyalty of its existing older demographic and attracting a younger demographic, Bertram's Beer is strategically positioning itself to increase its overall customer equity. This approach goes beyond merely promoting customer loyalty or increasing the share of customers but rather looks at the broader, long-term profitability of its entire customer base. By enhancing customer lifetime value through sustained loyalty and maximizing the share of customers through up-selling or cross-selling, firms can enhance their overall customer equity.
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