The database marketing environment presents many challenges involving pricing. How should we coordinate acquisition pricing and retention pricing? How should we price when we want to re-activate customers? How should we use database marketing to price discriminate? This chapter reviews models and methods for providing insights on these questions. We point out that pricing cannot be considered in a vacuum; for example, that customer quality expectations play a key role in acquisition pricing.
KeywordsPrice Strategy Price Discrimination Optimal Price Price Sensitivity Lead Product
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