A Joint Model of Usage and Churn in Contractual Settings As firms become more customer centric, concepts such as customer equity come to the fore. Any serious attempt to quantify customer equity requires modeling techniques that can provide accurate multi-period forecasts of customer behavior. While a number of researchers have explored the problem of modeling customer churn in contractual sett...

Behavior is increasingly recognized as a key component in business intelligence and problem-solving. Different from traditional behavior analysis, which mainly focus on implicit behavior and explicit business appearance as a result of business usage and customer demographics, this paper proposes the field of Behavior Informatics and Analytics (BIA), to support explicit behavior involvement thro...

Standard methods of understanding customer behavior in marketing allow for differences in sensitivity across consumers, but often assume that the sensitivity of a particular individual is ®xed through time. In many situations, this assumption may not be valid. Both the importance of variables, and the manner that they are combined to form an overall measure of value for an offer, can change. In...

We study a system where a service is shared by many identical customers; the service is provided by a single resource. As expected each customer experiences congestion, a negative externality, from the others’ usage of the shared resource in our model. In addition, we assume each customer experiences a positive externality from others’ usage; this is in contrast to prior literature that assumes...

The development of e-commerce relies upon customer usage intentions, and IS researchers have examined usage intentions toward various online e-commerce systems. However, these systems have been studied in prior works independently rather than comprehensively. In order to pursue better measures for predicting and explaining B2C e-finance and some other major e-commerce adoptions for customers, w...

Customer retention is a critical issue for the survival of any business in today’s competitive marketplace. In this paper, we propose a dynamic procedure utilizing self-organizing maps and a Markov process for detecting and preventing customer defection that uses data of past and current customer behavior. The basic concept originates from empirical observations that identified that a customer ...

Usage Context-Based Design (UCBD) is an area of growing interest within the design community. Usage context is the set of scenarios in which a product (or service) is to be used, including the environments in which the product is used, the types of tasks the product performs, and the conditions under which the product is purchased and operates. It is proposed in this work that in choice modelin...

Insurance companies have evolved into a highly competitive market that demands companies to put in place an effective customer behavior monitoring system, both in terms of usage and value. Unusual behavior in insurance can represent distinct business meanings, such as heavy users or suspicious transactions. Social network analysis can be used to raise business knowledge in relation to the avera...

The ability to retain and lock-in customers in the face of competition is a major concern for e-commerce businesses, especially those that invest heavily in advertising and customer acquisition. In this paper, we propose a method for measuring the magnitude of switching costs and brand loyalty for on-line service providers based on the random utility modeling framework. Applying this approach t...