The increasing availability of customer information is giving many firms the ability to reach and customize price and other marketing efforts to the tastes of the individual consumer. This ability is labeled as consumer addressability. Consumer addressability through sophisticated databases is...

This volume provides the definitive treatment of fortune's formula or the Kelly capital growth criterion as it is often called. The strategy is to maximize long run wealth of the investor by maximizing the period by period expected utility of wealth with a logarithmic utility function....

We extend the Schmittlein et al. model (1987) of customer lifetime value to include satisfaction. Customer purchases are modeled as Poisson events, and their rates of occurrence depend on the satisfaction of the most recent purchase encounter. Customers purchase at a higher rate when they are...

We develop an economic theory of “flexibility”, which we interpret as the discretion orability to make a decision that others disagree with. We show that flexibility is essentiallyan option for the decisionmaker, and can be valued as such. The value of the flexibilityoption is decreasing in...

Rapid advances in information technology have brought decision makers the mixed blessing of an increasingly vast amount of easily available data. Designers of decision support systems (DSS) have focused on incorporating the latest technology with little attention to whether these new systems are...

In the paper, a conceptual model of recurrent decision-making in a competitive environment is developed and used as a framework for analyzing some examples of decision– making strategies. The conceptual model is then used to predict firm performance based on factors such as: decision rules...

Customer lifetime value (CLV) is an established relationship marketing-centric approach to evaluating performance: based upon the significance of a customer, and what resources should be allocated towards maintaining relations - beyond short-term transactional views. The conceptual argument...

Long-term compensation plans have been suggested as means of providing incentives to the managers to maximise stockholders' welfare. There is no direct evidence that the existence of these plans will change the decision-making behaviour of individual managers. The following study examined the...