The Tuscan Lifestyles case (Mason 2003) offers a simple twist on the standard view of how to value a newly acquired customer, highlighting how standard retention-based approaches to the calculation of expected CLV are not applicable in a noncontractual setting. Using the data presented in the...

Several researchers have proposed models of buyer behavior in noncontractual settings that assume that customers are "alive" for some period of time and then become permanently inactive. The best-known such model is the Pareto/NBD, which assumes that customer attrition (dropout or "death") can...