Our main objective in this paper is to measure the value of customers acquired from Google search advertising accounting for two factors that have been overlooked in the conventional method widely adopted in the industry: the spillover effect of search advertising on customer acquisition and sales in offline channels and the lifetime value of acquired customers. By merging web traffic and sales...

Based on accepted advances in the marketing, economics, consumer behavior, and satisfaction literatures, we develop a micro-foundations model of a firm that needs to manage the quality of a product that is inherently heterogeneous in the presence of varying customer tastes or expectations for quality. Our model blends elements of the returns to quality, customer lifetime value, and service prof...

Customer value analysis is critical for a good marketing and a customer relationship management strategy. An important component of this strategy is the customer retention rate. Customer retention rate has a strong impact on the customer lifetime value, and understanding the true value of a possible customer churn will help the company in its customer relationship management. Conventional stati...

This paper provides insights into assessing customer relationships in a revenue management environment and depicts methodological problems that may arise in this context. For this purpose, we formulate a multi-period deterministic linear programing model, which accounts for customers’ future demand behavior being dependent on the provider’s previous availability decisions. Moreover, on the basi...

Relatively few retailers include metrics such as product returns in their customer selection and optimal resource allocation algorithms when measuring and maximizing customer value. Even when they do include this metric, increases in product return behavior are usually considered merely an economic cost that needs to be managed by decreasing the marketing resource allocations toward the custome...

Since the early 1980s, the concept of relationship management in marketing area has gained its importance. Acquiring and retaining the most profitable customers are serious concerns of a company to perform more targeted marketing campaigns. For effective customer relationship management, it is important to gather information on customer value. Many researches have been performed to calculate cu...

Decision makers in business industries have seen the change from the old economy to a new economy. The old economy is goods-centred, transaction-based in nature, focused on customer attraction, and product-based thinking whereas the new economy is service-centred, subscription-based in its nature, focused on customer retention, and customer-based thinking. The firm of today has to evaluate its ...