While single-brand reward programs encourage customers to remain loyal to that one brand, coalition programs encourage customers to be “promiscuous” by offering points redeemable across partner stores. Despite the benefits of this “open relationship” with customers, store managers face...

Hidden Markov Models (HMMs) have emerged as an empirical “workhorse” in the marketing literature in capturing and forecasting within-customer non-stationary behaviors. Extant research has demonstrated that HMMs typically outperform nested benchmarks when examining fit statistics aggregated...

Two widely recognized components, central to the calculation of customer value, are acquisition and retention propensities. However, while extant research has incorporated such components into different types of models, limited work has investigated the kinds of associations that may exist...

Service churn and retention rates remain central as constructs in marketing activities such as valuation of service subscribers and resource allocation. While extant approaches have been proposed to relate service churn to external factors such as reported satisfaction, marketing mix activities,...

We introduce a new methodology that can capture and explain differences across a series of cohorts of new customers in a repeat-transaction setting. More specifically, this new framework, which we call a vector changepoint model, exploits the underlying regime structure in a sequence of acquired...

When managers and researchers encounter a dataset, they typically ask two key questions: (1) which model (from a candidate set) should I use? and (2) if I use a particular model, when is it going to likely work well for my business goal? This research addresses those two questions, and provides...

Understanding how customers' service portfolios evolve over the course of their relationship can provide multi-service firms, such as telecommunication and financial service providers, with useful guidance for managerial issues such as customer valuation and targeting. Complicating matters,...

The widespread popularity and use of both the Poisson and negative binomial models for count data arises, in part, from their derivation as the number of arrivals in a given time period assuming exponenitally distributed interarrival times (without and with heterogeneity in the underlying base...

We present analyses of an extraordinary new dataset that reveals the path taken by individual shoppers in an actual grocery store, as provided by RFID (radio frequency identification) tags located on their shopping carts. The analysis is performed using a multivariate clustering algorithm not...

Multi-service providers, such as telecommunication and financial service companies, can benefit from understanding how customers’ service portfolios evolve over the course of their relationships. This can provide guidance for managerial issues such as customer valuation and predicting...