R. Verma G. R. Plaschka B. Hanlon A. Livingston K. Kalcher This paper presents an overview of the science and art of discrete choice modeling for service sector applications. With the ongoing momentum of service science, management, and engineering, the discrete choice modeling approach provides a sophisticated tool kit for assessing the needs and preferences of service customers. We provide di...

CUSTOMER SATISFACTION WITH MYSAPTM CRM Manufacturing and marketing cars used to be relatively straightforward: in a manufacturer-driven market, consumers were content to buy what was being produced. But times have changed. Intense, global competition and increased market transparency have given buyers more choices and more leverage. In this consumer-driven market, manufacturers must make every ...

We  deal with the relationship termination problem in the context of individual-level customer relationship management (CRM) and use a Markov decision process to determine the most appropriate occasion for termination of the relationship with a seemingly unprofitable customer. As a particular case, the beta-geometric/beta-binomial model is considered as the basis to define customer beha...

Some business practices of service firms have the potential to negatively affect customer demand because they are perceived as unfair. We discuss how fairness concerns can influence customer choice, and propose a conceptualisation embedded in expected utility theory that accounts for fairness judgments. The intended contributions are (1) to advance the literature on customer decision making by ...

We consider revenue management problems when customers choose among the offered products according to the Markov chain choice model. In this choice model, a customer arrives into the system to purchase a particular product. If this product is available for purchase, then the customer purchases it. Otherwise, the customer transitions to another product or to the no purchase option, until she rea...

In recent years, enriching traditional revenue management models by considering the customer choice behavior has been a main challenge for researchers. The terminology for the airline application is used as representative of the problem. A popular and an efficient model considering these behaviors is choice-based deterministic linear programming (CDLP). This model assumes that each customer bel...

Conventional utility theory models customer preferences in terms of actual performance and does not use benchmarks. But empirical work in gap analysis shows that customer preferences clearly depend upon the disparity between performance and some benchmark. To resolve this apparent discrepancy between theory and experiment, this paper shows that a simple reinterpretation of utility makes utility...

In several empirical applications analyzing customer-by-product choice data, it may be relevant to partition individuals having similar purchase behavior in homogeneous segments. Moreover, should individualand/or product-specific covariates be available, their potential effects on the probability to choose certain products may be also investigated. A model for joint clustering of statistical un...