In this paper we investigate optimal pricing strategies for an online grocery retailer who derives its profits from delivery fees and grocery sales. We base our theoretical framework upon the well-established work of Schmalensee (1981) in two-part pricing, while allowing for repeat purchase...

Buy-till-you-defect [BTYD] models are built for companies operating in a non- contractual setting to predict customers' transaction frequency, amount and timing as well as customer lifetime. These models tend to perform well, although they often predict unrealistically long lifetimes for a...

This research provides a new way to validate and compare buy-till-you-defect [BTYD] models. These models specify a customer’s transaction and defection processes in a non-contractual setting. They are typically used to identify active customers in a com- pany’s customer base and to predict...

We introduce and analyze an inter-temporal choice model where customer valuations are uncertain and evolve over time. The model leads directly to the study of call options on capacity that are similar to partially refundable fares. We show that the capacity provider earns significantly higher...

Product launch and pricing decisions in the pharmaceutical industry across different countries are complex. Although introducing a newly developed drug to every country is beneficial for patients worldwide, doing so may have adverse implications for drug developers, such as the emergence of...

This paper investigates the effects of conditional promotions (e.g., buy 2 or more, get 30% off; spend $50 or more, get $15 off) on consumer behavior and the seller's profit. When a deal is presented with a minimum purchase quantity or a minimum spending requirement, experimental studies have...

Bundle promotions have become increasingly popular among online retailers due to their potential in increasing revenue and profit. They take various forms depending on how retailers offer them to customers (e.g., after a purchase incidence, as advertised deals, or as personalized promotions) and...