Abstract
Predicting customer in current and future can help the managers make more initiatives to enhance company growth plan. Many literatures display many frameworks can predict customer lifetime value, in this paper, we applied Rust’s customer lifetime value and customer equity model to calculate. The purpose of this paper is to explore the effects of service quality, product quality on customer satisfaction and predict the probability rate of customer repurchasing, customer retention, calculate customer lifetime value and customer equity. The structure of framework is evaluated from questionnaire data of machine tool company in Vietnam and calculated it for showing which elements can influence on customer equity. The results established significantly associated with two dimensions of customer satisfaction: product quality and service quality what elements influence on customer equity. Finally, this paper provided the suggestions to machine tool company how to allocate their marketing budget to each customer according to customer lifetime value
