Skip to main content
SpringerLink
Log in
Book cover

Customer Accounting pp 1–12Cite as

Introduction

  • Chapter
  • First Online:

  • 1775 Accesses

Part of the book series: SpringerBriefs in Accounting ((BRIEFSACCOUNTING))

Abstract

In recent years, firms in all industries have witnessed a period of transformative developments that emphasize the central role of customers in creating and sustain value. In this chapter, we introduce the concept of customer-centricity as the key strategic orientation that several companies currently strive for to remain competitive in such a fast-evolving business landscape. Next, we motivate the rationale behind this book by pointing at a relatively unexplored area in accounting research focused on measurement and management of customer performance broadly labeled as ‘customer accounting’. We further explain the Organizational Architecture as overarching conceptual framework that guides the contents of the book’s chapters. An outline of this book concludes this chapter.

The primary function of a business is to serve the customer and the primary goal of your business is to create customers.

—Peter Drucker

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   54.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   69.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  • Abernethy, M. A., Bouwens, J., & van Lent, L. (2004). Determinants of control system design in divisionalized firms. The Accounting Review, 79(3), 545–570.

    Article  Google Scholar 

  • Bates, K., & Whittington, M. (2009). The customer is king. Enthroned or in exile? An analysis of the level of customer focus in leading management accounting textbooks. Accounting Education, 18(3), 291–317.

    Article  Google Scholar 

  • Bonacchi, M., & Perego, P. (2012). Measuring and managing customer lifetime value: A CLV scorecard and cohort analysis in a subscription-based enterprise. Management Accounting Quarterly, 14(1), 27–39.

    Google Scholar 

  • Brickley, J., Smith, C., & Zimmerman, J. (1995). The economics of organizational architecture. Journal of Applied Corporate Finance, 8(2), 19–31.

    Article  Google Scholar 

  • Brickley, J. A., Smith, C. W., & Zimmerman, J. L. (2004). Managerial economics and organizational architecture. Boston, MA: McGraw-Hill/Irwin.

    Google Scholar 

  • Brickley, J., Smith, C., Zimmerman, J., & Willett, J. (2009). Using organizational architecture to lead change. Journal of Applied Corporate Finance, 21(2), 58–66.

    Article  Google Scholar 

  • Chenhall, R. H. (2003). Management control systems design within its organizational context: Findings from contingency-based research and directions for the future. Accounting Organizations and Society, 28(2–3), 127–168.

    Article  Google Scholar 

  • Cokins, G. (2015, February). Measuring and managing customer profitability. Strategic Finance, 23–29.

    Google Scholar 

  • Court, D. C. (2005). Boosting returns on marketing investment. McKinsey Quarterly, (2), 36–47.

    Google Scholar 

  • Economist. (2006a). E-commerce. The Economist.

    Google Scholar 

  • Economist. (2006b, July 6). The ultimate marketing machine. The Economist.

    Google Scholar 

  • Economist. (2007). Word of mouse. The Economist, 77–78.

    Google Scholar 

  • Egol, M., Hyde, P., Ribeiro, F., & Tipping, A. (2004). The customer-centric organization: From pushing products to winning customers. McLean, VA: Booz Allen Hamilton.

    Google Scholar 

  • Epstein, M. J. (2007). Evaluating the effectiveness of internet marketing initiatives. In Management accounting guideline. Hamilton: The Society of Management Accountants of Canada, The American Institute of Certified Public Accountants and The Chartered Institute of Management Accountants.

    Google Scholar 

  • Epstein, M. J., & Yuthas, K. (2007). Managing customer value. In Management accounting guideline. Hamilton: The Society of Management Accountants of Canada, The American Institute of Certified Public Accountants and The Chartered Institute of Management Accountants.

    Google Scholar 

  • Fader, P. (2012). Customer centricity focus on the right customers for strategic advantage. Philadelphia, PA: Wharton Digital Press.

    Google Scholar 

  • French, T. D. (2007). Confronting proliferation… in online media: An interview with Yahoo!’s senior marketer. McKinsey Quarterly, (3), 18–27.

    Google Scholar 

  • Gleaves, R., Burton, J., Kitshoff, J., Bates, K., & Whittington, M. (2008). Accounting is from Mars, marketing is from Venus: Establishing common ground for the concept of customer profitability. Journal of Marketing Management, 24(7–8), 825–845.

    Article  Google Scholar 

  • Gong, M. Z., & Ferreira, A. (2014). Does consistency in management control systems design choices influence firm performance? An empirical analysis. Accounting and Business Research, 44(5), 497–522.

    Article  Google Scholar 

  • Grabner, I., & Moers, F. (2013). Management control as a system or a package? Conceptual and empirical issues. Accounting, Organizations and Society, 38(6–7), 407–419.

    Article  Google Scholar 

  • Guilding, C., & McManus, L. (2002). The incidence, perceived merit and antecedents of customer accounting: An exploratory note. Accounting, Organizations and Society, 27(1–2), 45–59.

    Article  Google Scholar 

  • Gupta, S., Hanssens, D., Hardie, B., & Kahn, W. (2006). Modeling customer lifetime value. Journal of Service Research, 9(2), 139.

    Article  Google Scholar 

  • Holm, M., Kumar, V., & Plenborg, T. (2016). An investigation of customer accounting systems as a source of sustainable competitive advantage. Advances in Accounting, 32, 18–30.

    Article  Google Scholar 

  • Ittner, C. D., & Larcker, D. F. (1997). Quality strategy, strategic control systems, and organizational performance. Accounting, Organizations and Society, 22(3–4), 293–314.

    Article  Google Scholar 

  • Ittner, C. D., & Larcker, D. F. (2001). Assessing empirical research in managerial accounting: A value-based management perspective. Journal of Accounting and Economics, 32, 349–410.

    Article  Google Scholar 

  • Jayachandran, S., Sharma, S., Kaufman, P., & Raman, P. (2005). The role of relational information processes and technology use in customer relationship management. Journal of Marketing, 69(4), 177–192.

    Article  Google Scholar 

  • Kaplan, R. S., & Norton, D. P. (2004). Strategy maps. Boston: Harvard Business School Press.

    Google Scholar 

  • Kraus, K., Håkansson, H., & Lind, J. (2015). The marketing-accounting interface – Problems and opportunities. Industrial Marketing Management, 46, 3–10.

    Article  Google Scholar 

  • Kumar, V. (2008a). Customer lifetime value – The path to profitability. Foundations and Trends in Marketing, 2(1), 1–96.

    Article  Google Scholar 

  • Kumar, V. (2008b). Managing customers for profit: Strategies to increase profits and build loyalty. Upper Saddle River, N.J.: Wharton School.

    Google Scholar 

  • Kumar, V., & Rajan, B. (2012). Handbook of marketing strategy. Cheltenham: Edward Elgar.

    Google Scholar 

  • Kumar, V., & Reinartz, W. (2016). Creating enduring customer value. Journal of Marketing, 80(6), 36–68.

    Article  Google Scholar 

  • Kumar, V., Venkatesan, R., Bohling, T., & Beckmann, D. (2008). The power of Clv: Managing customer lifetime value at Ibm. Marketing Science, 27(4), 585–599.

    Article  Google Scholar 

  • Laffey, D. (2007). Paid search: The innovation that changed the web. Business Horizons, 50(3), 211–218.

    Article  Google Scholar 

  • Langfield-Smith, K. (1997). Management control systems and strategy: A critical review. Accounting, Organizations and Society, 22(2), 207–232.

    Article  Google Scholar 

  • Lee, C. L., & Yang, H. J. (2011). Organization structure, competition and performance measurement systems and their joint effects on performance. Management Accounting Research, 22(2), 84–104.

    Article  Google Scholar 

  • Libai, B., Muller, E., & Peres, R. (2009). The diffusion of services. Journal of Marketing Research, 46, 163–175.

    Article  Google Scholar 

  • McManus, L., & Guilding, C. (2008). Exploring the potential of customer accounting: A synthesis of the accounting and marketing literatures. Journal of Marketing Management, 24, 771–795.

    Article  Google Scholar 

  • Mulhern, F. (2009). Integrated marketing communications: From media channels to digital connectivity. Journal of Marketing Communications, 15(2), 85–101.

    Article  Google Scholar 

  • Nagar, V. (2002). Delegation and incentive compensation. The Accounting Review, 77(2), 379–395.

    Article  Google Scholar 

  • Ramani, G., & Kumar, V. (2008). Interaction orientation and firm performance. Journal of Marketing, 72(1), 27.

    Article  Google Scholar 

  • Roslender, R., & Wilson, R. M. S. (2008). The marketing/accounting synergy: A final word but certainly not the last word. Journal of Marketing Management, 24(7–8), 865–876.

    Article  Google Scholar 

  • Rust, R. T., Moorman, C., & Bhalla, G. (2009). Rethinking marketing. Harvard Business Review, 88(1), 94–101.

    Google Scholar 

  • Ryals, L. (2008). Managing customers profitably. Chichester: John Wiley & Sons.

    Google Scholar 

  • Shah, D., Rust, R. T., Parasuraman, A., Staelin, R., & Day, G. S. (2006). The path to customer centricity. Journal of Service Research, 9(2), 113–124.

    Article  Google Scholar 

  • Sheth, J. N., Sisodia, R. S., & Sharma, A. (2000). The antecedents and consequences of customer-centric marketing. Journal of the Academy of Marketing Science, 28(1), 55–66.

    Article  Google Scholar 

  • Varian, H. R. (2006). The economics of internet search. Rivista di Politica Economica, (IX–X), 177–191.

    Google Scholar 

  • Varian, H. R. (2009). Hal Varian on how the web challenges managers. McKinsey Quarterly.

    Google Scholar 

  • Varian, H. R., Farrell, J., & Shapiro, C. (2004). The economics of information technology: An introduction. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Verhoef, P. C., & Lemon, K. N. (2013). Successful customer value management: Key lessons and emerging trends. European Management Journal, 31(1), 1–15.

    Article  Google Scholar 

  • Widener, S. K., Shackell, M. B., & Demers, E. A. (2008). The juxtaposition of social surveillance controls with traditional organizational design components. Contemporary Accounting Research, 25(2), 605–638.

    Article  Google Scholar 

  • Wruck, K. H., & Jensen, M. C. (1994). Science, specific knowledge, and total quality management. Journal of Accounting and Economics, 18(3), 247–287.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Faculty of Economics and Management, Free University of Bozen-Bolzano, Bolzano, Italy

    Massimiliano Bonacchi & Paolo Perego

Authors
  1. Massimiliano Bonacchi
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Paolo Perego
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

Copyright information

© 2019 The Author(s), under exclusive licence to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Bonacchi, M., Perego, P. (2019). Introduction. In: Customer Accounting. SpringerBriefs in Accounting. Springer, Cham. https://doi.org/10.1007/978-3-030-01971-6_1

Download citation

Publish with us

Policies and ethics

Search

Navigation