Research Note: A Dynamic Programming Approach to Customer Relationship Pricing

Research Note: A Dynamic Programming Approach to Customer Relationship Pricing

Research Note - How Much Should You Invest in Each Customer Relationship? A Competitive Strategic Approach

W analyze firms’ decisions to invest in customer relationship management (CRM) initiatives such as acquisition and retention in a competitive context, a topic largely ignored in past CRM research. We characterize each customer by her intrinsic preference towards each firm, the contribution margin she generates for each firm, and her responsiveness to each firm’s retention and acquisition effort...

Customer Relationship Management Adoption: Using A Dynamic Capabilities Approach

Customer Relationship Management (CRM) adoption is both a relevant research topic in academia and a challenge for practitioners. We understand CRM as a complex concept that includes technology, strategy and philosophy. In this research, we propose an analysis of CRM organisational dynamic capabilities. The main goal is to apply a dynamic capabilities perspective to analyse how companies can imp...

A Dynamic Programming Approach for Pricing CDS and CDS Options

We propose a general setting for pricing single-name knock-out credit derivatives. Examples include Credit Default Swaps (CDS), European and Bermudan CDS options. The default of the underlying reference entity is modeled within a doubly stochastic framework where the default intensity follows a CIR++ process. We estimate the model parameters through a combination of a cross sectional calibratio...

Measuring Customer Acquisition Value: A Comprehensive Approach to Customer Equity

In information technology era, databases are known asone of the most valuable resources for organizations, especially usedin database marketing. Customer Equity is a key concept in DatabaseMarketing which integrates customer acquisition, retention and development.From the perspective of customer equity, customers are theprimary source of both current and future cash-flows. Customer equitymodels...