Balancing Market Share Growth and Customer Profitability: Budget Allocation for Customer Acquisition and Retention
نویسندگان
چکیده
منابع مشابه
Budget allocation for customer acquisition and retention while balancing market share growth and customer equity
Following the Blattberg and Deighton (BD) model, we incorporate market share growth to explore links between acquisition and retention.We then devise amethod for nonlinear programming using a spreadsheet to balance the objectives of market share growth in the short term and customer equity in the long term. The aim of this approach is to determine the optimal spending allocation for customer ac...
متن کاملCustomer Profitability Analysis and Market Valuation: Differential Pricing and the Comparative Profitability of Major Customer Sales
In this study, I investigate whether inferences drawn from customer profitability analysis (CPA) are associated with the information set used by investors valuing firms’ equity. This research question is motivated by the recent emergence of CPA as the most important aspect of strategic planning for managers (e.g., Foster and Young 1997). To the extent that managers use CPA in developing strateg...
متن کاملUnderstanding the Effect of Customer Relationship Management Efforts on Customer Retention and Customer Share Development
Scholars have questioned the effectiveness of several customer relationship management strategies. The author investigates the differential effects of customer relationship perceptions and relationship marketing instruments on customer retention and customer share development over time. Customer relationship perceptions are considered evaluations of relationship strength and a supplier’s offeri...
متن کاملImpact of Customer Service Practices on Customer Satisfaction and Retention
In any business to customer (B2C) or business to business (B2B) type of environment, a customer is the ultimate goal and objective. More often than not, it can be quite an issue. This perhaps due to the fact that organizations sometimes do not really understand of what actually goes on in a customer’s mind. As such, this predicament has provided as a challenge task to most business conglomerate...
متن کاملBalancing Profitability and Customer Welfare in a Supermarket Chain
We investigate the impact of price discrimination by a large Chicago supermarket chain. First we measure the impact of the chain’s current zone-pricing policy on shelf prices, variable profits and consumer welfare across its stores. Using the chain’s database to simulate a finer store-specific micropricing policy, we study the implications of this policy on profits and welfare. We show how a st...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Organizations and Markets in Emerging Economies
سال: 2012
ISSN: 2345-0037,2029-4581
DOI: 10.15388/omee.2012.3.2.14267