EMOTIONAL CAPITAL

= Emotional Capital =
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Contents

History

External Emotional Capital

Internal Emotional Capital

References

History

First coined by Coca-Cola president Steven J. Heyer to refer to the ways that consumers' emotional investment in media content and brands increases the brand's worth (1), other definitions have now branched off. In the business world emotional capital is commonly broken into two different areas: Internal Emotional Capital and External Emotional Capital.

External Emotional Capital

External Emotional Capital is Heyer's original idea.

External emotional capital is the value of the feelings and perceptions held by the customer and the external stakeholder towards your business.

These emotions are in the limelight right now as companies find that businesses rely on loyalty over quantity. A perfect example of emotional capital saving a company can be seen with Apple Inc. over the past ten years.

Internal Emotional Capital

Internal emotional capital is the value of the emotional commitments held in the hearts of the people within your business. It can be described as the feelings, beliefs and values held by everyone working in the business.

Strongly connected to External Emotional Capital, the internal values of a company may strengthen or weaken a company's support system.

References

1. Convergence Culture, Jenkins
2. http://www.theaustralian.news.com.au/story/0,20867,21269275-20622,00.html