Advances in information technology increasingly allow firms to identify expensive, high-cost customers, who are not only individually less profitable for firms but also raise the average marginal cost incurred by firms and thus impose a negative externality on inexpensive customers. Should...

As service centers become crucial corporate assets for increasing customer relationships and profits, it is imperative to understand customer reactions to service allocations. Using customer call history from a DSL service, the authors empirically investigate how customers’ onshore and...

The rapid growth in demand and supply of sophisticated data mining and analytical decision tools calls for research to understand the value of learning, as well as how learning interacts with firms’ day-to-day marketing strategies.In this paper, we consider a market in which the firm can...

Bucket pricing entails a prepaid price and a maximum consumption limit, which requires consumers to make advance purchase decisions before their consumption needs are fully revealed. We propose a dynamic model that involves how consumers form expectations of future consumption needs, learn to...