Data mining methodology has a tremendous contribution for extracting the hidden knowledge and patterns from the existing databases. Traditionally, researchers use basket data to mine association rules of which the basic task is to find the frequent items. For relational databases whose data format is relational data other than basket data, RDB-MINER algorithm was proposed. In this paper, we int...

T article illustrates how simulation can be used in the classroom for modeling customer behavior in the context of customer lifetime value estimation. Operations research instructors could use this exercise to introduce multiperiod spreadsheet simulation models in a business setting that is of great importance in practice, and the simulation approach to teaching this subject could be of interes...

The authors evaluate the usefulness of customer lifetime value (CLV) as a metric for customer selection and marketing resource allocation by developing a dynamic framework that enables managers to maintain or improve customer relationships proactively through marketing contacts across various channels and to maximize CLV simultaneously. The authors show that marketing contacts across various ch...

The purpose of this study is to test s structural equation model which aims to explore the extent to which customer lifetime value (CLV) is impacted by customer perceptions of value, satisfaction, and loyalty. A series of examinations revealed that (1) customer value (CV) impacts customer satisfaction and loyalty directly and positively; (2) customer satisfaction is directly and positively rela...

This paper is about how to use data from a random sample of customer relationships to calculate an appropriate average Customer Lifetime Value (CLV). When the sample contains only completed relationships, the simple unweighted average is appropriate. When the sample contains a mix of active and completed relationships, the lifetimes of the active relationships are said to be right censored beca...

Nowadays companies increasingly derive revenue from the creation and sustenance of long-term relationships with their customers. In such an environment, marketing serves the purpose of maximizing customer lifetime value (CLV) and customer equity, which is the sum of the lifetime values of the company’s customers. A frequently-encountered difficulty for companies wishing to measure customer prof...