Typical methods in CRM marketing include action selection on the basis of Markov Decision Processes with fixed transition probabilities on the one hand, and scoring customers separately in pre-defined segments on the other. This points to a gap in the usual methodology insofar as customer scoring implies the explicit use of customer-specific information (covariates), while transition probabilit...

The choice network revenue management model incorporates customer purchase behavior as a function of the offered products, and is the appropriate model for airline and hotel network revenue management, dynamic sales of bundles, and dynamic assortment optimization. The optimization problem is a stochastic dynamic program and is intractable, and a linear program approximation called choice determ...

Firms in multiple industries collect customer satisfaction data to measure service performance. Increasingly, however, many firms are now able to collect objective service performance data as well. This raises the question of whether measuring customer satisfaction is valuable to firms when objective service performance data are available. The authors answer this question via the use of unique ...

The more a marketing paradigm evolves, the more long-term relationship with customers gains its importance. CRM, a recent marketing paradigm, pursues long-term relationship with profitable customers. It can be a starting point of relationship management to understand and measure the true value of customers since marketing management as a whole is to be deployed toward the targeted customers and...

Modelling relationships between variables has been a major challenge for statisticians in a wide range of application areas. In conducting customer satisfaction surveys, one main objective, is to identify the drivers to overall satisfaction (or dissatisfaction) in order to initiate proactive actions for containing problems and/or improving customer satisfaction. Bayesian Networks (BN) combine g...

With the rapid development of IT technology and fierce competition of market, the customer relationship management(CRM) has gained its importance in the market. Companies have attached importance to acquiring and retaining the most profitable customers. So calculating customer’s value is a significant segment for every effective CRM. Many researches have been performed to calculate customer’s v...

The paper presents a novel approach for customer segmentation which is the basic issue for an effective CRM ( Customer Relationship Management ). Firstly, the chi-square statistical analysis is applied to choose set of attributes and K-means algorithm is employed to quantize the value of each attribute. Then DBSCAN algorithm based on density is introduced to classify the customers into three gr...