The calculation of customer value without regard to marketing policy is problematic because the value of managerial flexibility and the impact of consumer learning are neglected. This article develops a structural dynamic programming model of consumer demand that includes marketing variables and consumer expectations of promotions. The author uses the estimated parameters to conduct policy experiments that yield more accurate forecasts of customer value and to study the impact of alternative marketing policies.
Author(s): Michael Lewis 1
Author(s) affiliations
1. Assistant Professor of Marketing, Marketing Department, University of Florida.
An approach to develop effective customer loyalty programs: The VIP program at T&T Supermarkets Inc..
Richard Ho, Leo Huang, Stanley Huang, Tina Lee, Alexander Rosten, Christopher S. Tang. Managing Service Quality | Volume: 19 | Issue: 6 | Pps: 702-720 CrossRef
2.
Market segmentation with mixture regression models: Understanding measures that guide model selection.
Marko Sarstedt. Journal of Targeting, Measurement and Analysis for Marketing | Volume: 16 | Issue: 3 | Pps: 228-246 CrossRef
3.
Understanding Service Retention Within and Across Cohorts Using Limited Information.
You have no access to this article
