Customer lifetime value (CLV) measurement is challenging as it requires forecasting customers' future purchases. Existing stochastic CLV models for this purpose generally make the following assumptions: 1) purchase behavior of customers can be described by purchase frequency and the average monetary value of transactions, 2) customers keep the same purchase behavior pattern over time, 3) purcha...

Customers in B2B as well as B2C markets increasingly demand integrated problem solutions from their suppliers, comprising both physical artifacts (products) and services. Applying a mixed-bundling strategy to offer such value bundles to customers foremost requires a sound configuration and economic calculation of value propositions, based on previously defined modules of products and services. ...

This paper explores the marketing of daily consumer goods in a pilot Web-based supermarket, in which no regular customers existed from among 65 registered ones at the end of the pilot project. Descriptive case research strategy and qualitative methods of analysis are utilized. Empirical evidence was obtained through multiple sources during an eight-month pilot period. The case study is analyzed...

Business modeling methods most often model an organization’s value provision to its customers followed by the necessary activities and structure to deliver this value. These activities and structure are seen as infinitely malleable; they can be specified and engineered at will. This is hardly in line with what even laymen can observe of organizations, that they are not easy to change and that t...

Customer self-service technologies (SST) have been gaining increasing economic importance given their proliferation in the customer service industry. Self-service kiosks have gradually been replacing traditional service employees and their progress is expected to continue. The growing relevance of SST results in the need for companies to understand why customers are willing to use SST and which...

C a firm that sells products over repeated seasons, each of which includes a full-price period and a markdown period. The firm may deliberately understock products in the markdown period to induce highvalue customers to purchase early at full price. Customers cannot perfectly anticipate availability. Instead, they use observed past capacities to form capacity expectations according to a heurist...

In this article, the author addresses the question of how a firm’s acquisition efforts influence the composition of the customer portfolio. The first part of the research is a conceptual model that illustrates how customer uncertainty provides an explanation for why promotionally acquired customers have lower repurchase rates and smaller lifetime values. The second part of the research involves...

This present study aims to compare how service brand preference influence service perceived value, customer satisfaction and loyalty in different countries—Japan and China. Moreover, this study purposes to explore whether countries’ image affect service brand preference of customer. Two customer surveys which were practiced in Japan and China were conducted to examine moderation hypotheses, whi...

Our main objective in this paper is to measure the value of customers acquired from Google search advertising accounting for two factors that have been overlooked in the conventional method widely adopted in the industry: the spillover effect of search advertising on customer acquisition and sales in offline channels and the lifetime value of acquired customers. By merging web traffic and sales...

Many researchers place great emphasis on the customer segmentation step of the CRM implementation process because it is a starting point for creating differentiated offerings and target marketing to satisfy customers. As the process of segmenting customers is to make an important service encounter with a company and its customers, both the companies’ and customers’ expected value should be cons...