Global competition involves large retailers in a continuous development of their activity in relation to market stimula. In this regard efficient management of commercial functions, innovation of offer attributes and dynamic management of retailing mix allow large retailers to reformulate their...

We study the optimal customer-acquisition and customer-retention decisions of the representative firm in a dynamic competitive industry. We find that the optimal per-customer retention effort depends positively on customer profitability and is constant over time. The endogenous effective...

We study the structure of optimal customer acquisition and customer retention strategies in an infinite horizon model of a firm in a competitive industry. We examine the effects of changes in customer profitability, density of competition, and discount rate on the optimal allocation of marketing...

Service Economy markets are emerging globally as increasingly interconnected (Levitt, 1981), dynamic and continuously developing.A growing number of services in all production sectors can be detected, and the classical dichotomy between goods and services is disintegrating and losing...