This research extends a Pareto/NBD model of customer-base analysis using a hierarchical Bayesian (HB) framework to suit today's customized marketing. The proposed HB model presumes three tried and tested assumptions of Pareto/NBD models: (1) a Poisson purchase process, (2) a memoryless dropout...

Nonparametric density estimation using a kernel method is proposed to model consumer brand choice. Recent availability of large scanner panel data allows the use of nonparametric approach, which has few or at least fewer underlying assumptions and affords greater structural flexibility. By...

Construal level theory (CLT), which has been receiving increasing attention in Consumer Behavior Studies, posits that people' s evaluation toward items and incidents differs by the psychological distance between oneself and the object. When this distance is close, people mentally construe the...

In customer relationship management (CRM), ad hoc rules are often employed to judge whether customers are active in a "non-contractual" setting. For example, a customer is considered to have dropped out if he or she has not made purchase for over three months. However, for customers with a long...