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

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...

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...