Prepaid customers in mobile telecommunications are not bound by a contract and can therefore change operators (‘churn’) at their convenience and without notification. This makes the task of predicting prepaid churn both challenging and financially rewarding. This paper presents an explorative, real world study of prepaid churn modeling by varying the experimental setup on three dimensions: data...

In recent years both practitioners and academics have shown an increasing interest in the assessment of marketing -performance. This paper explores the metrics that firms select and some reasons for those choices. Our data are drawn from two UK studies. The first reports practitioner usage by the main metrics categories (consumer behaviour and intermediate, trade customer, competitor, accountin...

Price discrimination incentives may induce dealers to bear the financial cost of their customers’ credit purchases. We focus in particular on how financial market imperfections make it possible to segment the customer population. When borrowing and lending rates differ from each other and from the rate of interest on a durable good purchase, the structure of those rates influences customers’ ch...

Time-of-use and real-time spot pricing tariffs in conjunction with direct load control of water heaters was offered to residential electricity consumers in a large-scale demand response experiment. Hourly data from the experiment on consumption, temperature, wind, and hours of daylight comprise a large panel data set, which are analysed with a fixed effects regression model. Price responses are...

We consider a revenue management model for pricing a product line with several customer segments under the assumption that customers’ product choices are determined entirely by their reservation prices. We highlight key mathematical properties of the maximum utility model and formulate it as a mixed-integer programming problem, design heuristics and valid cuts. We further present extensions of ...

As digitization makes customer migration easier and more attractive, managing customer recovery becomes increasingly important for organizations. In this context, the challenge is to avoid two error types that can occur with customer relation recovery. First, mistakenly investing in customer relations that are active (“alive”), and, second, mistakenly not investing in migrated customer relation...

Nowadays, enterprises need to consider not only if the products or services they provided can conform to the needs of most consumers, but also how to satisfy the demand of a specific market segment and appeal them to repurchase as well due to the severe market competition. Besides, in an enterprise, the capability to both generate and collect data has also been expanded enormously and provides ...

Customer retention, or repurchase, is one of the main factors that help to create and maintain the competitiveness and sustainability of an organization. With the proliferation of B2C electronic commerce, retention has become even more important to Internet merchants who sell online, where customers are provided with a wide variety of choices and competition is globally severe. As opposed to pa...

In a multi-item inventory system, such as an assemble-to-order manufacturing system or an online-retailing system, a customer order typically consists of several different items in different amounts. The average order-based backorders are the average number of customer orders that are not yet completely filled. While this is an important measure of customer satisfaction, it has not been widely ...