We address a critical question that many firms are facing in this era of "big data'': Can customer data be stored and analyzed in an easy-to-manage and scalable manner without significantly compromising the inferences that can be made about the customers' transaction activity? We address this...

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 useless in a noncontractual setting. Using the data presented in the case, it...

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...

Traditional advertising, such as TV and print advertising, primarily builds awareness of a firm's product among consumers. On the other hand, sponsored search advertising can target consumers in a later stage of the purchase process because they self-identify themselves by searching for a...

Firms in several markets try to attract consumers by offering discounts in other unrelated markets. This promotion strategy, which we call "cross-market discounts," has been successfully adopted in the last few years by many grocery retailers in partnership with gasoline retailers across North...

In this paper, we investigate how retailer competition and asymmetry affect store brand strategy when some of the consumers are one-stop shoppers. We find that when the intensity of competition between retailers is low, store brands can be used to shield consumers loyal to the national brand...

In today's online environment, consumers and sellers interact through multiple channels such as email, search engines, banner ads, affiliate websites and comparison-shopping websites. In this paper, we investigate whether knowing what channels a consumer used on their path until a point of time...

We study multi-period sales-force incentive contracting where salespeople can engage in effort gaming, a phenomenon that has extensive empirical support. Focusing on a repeated moral hazard scenario with two independent periods and a risk-neutral agent with limited liability, we conduct a...