The authors evaluate the usefulness of customer lifetime value (CLV) as a metric for customer selection and marketing resource allocation by developing a dynamic framework that enables managers to maintain or improve customer relationships proactively through marketing contacts across various channels and to maximize CLV simultaneously. The authors show that marketing contacts across various ch...

We consider an auction of identical digital goods to customers whose valuations are drawn independently from known distributions. Myerson’s classic result identifies the truthful mechanism that maximizes the seller’s expected profit. Under the assumption that in small groups customers can learn each others’ valuations, we show how Myerson’s result can be improved to yield a higher payoff to the...

in this paper, we present the stochastic version of maximal covering location problem which optimizes both location and allocation decisions, concurrently. it’s assumed that traveling time between customers and distribution centers (dcs) is uncertain and described by normal distribution function and if this time is less than coverage time, the customer can be allocated to dc. in classical model...

T one-price-for-all extended warranties do not differentiate customers according to their risk attitudes, usage rates, or operating environment. These warranties are priced to cover the cost of high-usage customers who have more failures and are willing to pay a risk premium for their risk aversion. That makes traditional warranties economically unattractive to low-usage customers and those who...

Warranty is now an integral part of each product. Since its length is directly related to the cost of production, it should be set in such a way that it would maximize revenue generation and customers’ satisfaction. Furthermore, based on the behavior of customers, it is assumed that increasing the warranty period to earn the trust of more customers leads to more sales until the market is sat...

Marketing organizations often design multiple marketing campaigns to meet a variety of objectives. Marketing resources must be allocated carefully across campaigns to minimize conflicts and maximize organizational value (e.g., impact on customer lifetime value). While data-driven analytics has greatly improved the ability to predict the effect of marketing actions on individual customers, such ...

The ongoing proliferation of digital technologies is reshaping the customer-firm relationship by providing new possibilities for companies and customers to interact with each other. Companies try to involve customers in firm-sponsored online customer networks to connect them more deeply with the brand. In this context, the impact of positive social influence induced among customers on their val...