It is standard procedure to use short-term measures for designing customized marketing campaigns and evaluating their success. We consider the integration of customer lifetime value (CLV) thinking into the category selection problem for targeted coupons. This problem involves two primary...

Free-return policies are a critical aspect of online retailing, since they encourage consumers to purchase even when product fit (e.g., regarding size and taste) is not certain. Scholars usually explain the appeal of such policies in terms of increasing consumers' net utility. In contrast, we...