Skip to main content
SpringerLink
Log in
Book cover

Handbook of Marketing Decision Models pp 291–326Cite as

Decision Models for Customer Relationship Management (CRM)

  • Chapter

Part of the book series: International Series in Operations Research & Management Science ((ISOR,volume 121))

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   259.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 1.

    The approach of calibrating quantitative models by examining subjective (managerial) judgments about outcomes of the investigated process (e.g., market share or sales of a firm) under a variety of hypothetical scenarios (e.g., advertising spending level, promotion expenditures). Once the model linking process outcomes to marketing decision variables has been calibrated, it is possible to derive an optimal marketing recommendation.

  2. 2.

    Research studies in this stream have focused on customer data from retailers that own their own brick and mortar stores and therefore have direct contact with customers in this channel.

References

  • Allenby, G.M., R.P. Leone, L. Jen. 1999. A Dynamic Model of Purchase Timing with Application to Direct Marketing. Journal of American Statistical Association 94(June) 365–374.

    Article  Google Scholar 

  • Ansari, A., C. Mela, S. Neslin. 2005. Customer Channel Migration. Working Paper, Dartmouth University.

    Google Scholar 

  • Bauer, C.L. (1988). A Direct Mail Customer Purchase Model. Journal of Direct Marketing 2(3) 16–24.

    Article  Google Scholar 

  • Berger, P.D., N. Nasr-Bechwati. 2001. The Allocation of Promotion Budget to Maximize Customer Equity. The International Journal of Management Science 29(1) 49–61.

    Google Scholar 

  • Blattberg, R., J. Deighton. 1996. Manage Marketing by the Customer Equity Test. Harvard Business Review July–August, 136–144.

    Google Scholar 

  • Bodapati, A., S. Gupta. 2004. A Direct Approach to Predicting Discretized Response in Target Marketing. Journal of Marketing Research 41(February) 73–85.

    Article  Google Scholar 

  • Boulding, W., R. Staelin, M. Ehret, W.J. Johnston. 2005. A Customer Relationship Management Roadmap: What Is Known, Potential Pitfalls, and Where to Go. Journal of Marketing 69(October) 155-166.

    Article  Google Scholar 

  • Bowman, D., D. Narayandas. 2004. Linking Customer Management Effort to Customer Profitability in Business Markets. Journal of Marketing Research 41(4) 433–447.

    Article  Google Scholar 

  • Bult, J.R., T. Wansbeek. 1995. Optimal Selection for Direct Mail. Marketing Science 14(4) 378–94.

    Article  Google Scholar 

  • Burnett, Ed. 1988. The Complete Direct Mail List Handbook. Prentice Hall, New York.

    Google Scholar 

  • Chen, Y., J.D. Hess, R. Wilcox, Z.J. Zhang. 1999. Accounting Profits Versus Marketing Profits: A Relevant Metric for Category Management. Marketing Science 18(3) 208–29.

    Article  Google Scholar 

  • David Shepard Associates. (1999). The New Direct Marketing, 3d ed. Irwin Professional Publishing, New York.

    Google Scholar 

  • Day, G. 1999. The Market Driven Organization.The Free Press, New York.

    Google Scholar 

  • Doubleclick 2004. Retail Details: Best Practices in Multi-Channel Integration (March), DoubleClick, Inc.. New York.

    Google Scholar 

  • Drèze, X., S. Hoch. 1998. Exploiting the Installed Base Using Cross-merchandising and Category Destination Programs. International Journal of Research in Marketing 15(December) 459–471.

    Article  Google Scholar 

  • Du, R., W. Kamakura. 2005. Household Lifecycles and Lifestyles in the United States. Journal of Marketing Research 43(February) 121–132.

    Article  Google Scholar 

  • Du, R., W. Kamakura, C. Mela. 2005. Size and Share of Customer Wallet. Working Paper, Teradata Center, Duke University.

    Google Scholar 

  • Dwyer, R. 1989. Customer Lifetime Valuation to Support Marketing Decision Making. Journal of Direct Marketing 3(4) 8–15.

    Article  Google Scholar 

  • Dwyer, R. R., P.H. Schurr, S. Oh. 1987. Developing Buyer-Seller Relations. Journal of Marketing 51(April) 11–28.

    Article  Google Scholar 

  • Elsner, R., M. Krafft, A. Huchzermeier. 2004. Optimizing Rhenania’s Direct Marketing Business Through Dynamic Multilevel Modeling (DMLM) in a Multicatalog-Brand Environment. Marketing Science 23(2) 192–206.

    Article  Google Scholar 

  • Fader, P.S., B.G.S. Hardie, Ka.L. Lee. 2005a. Counting Your Customers the Easy Way: An Alternative to the Pareto/NBD Model. Marketing Science 24(Spring) 275–284.

    Article  Google Scholar 

  • Fader, P.S., B.G.S. Hardie, Ka.L. Lee. 2005b. RFM and CLV: Using Iso-value Curves for Customer Base Analysis. Journal of Marketing Research 42(November) 415–430.

    Google Scholar 

  • Fournier, S., S. Dobscha, D.G. Mick. 1998. Preventing the Premature Death of Relationship Marketing. Harvard Business Review (January–February) 42–51.

    Google Scholar 

  • Gönül, F.F., B. Kim, M. Shi. 2000. Mailing Smarter to Catalog Customers. Journal of Interactive Marketing 14(2) 2–16.

    Article  Google Scholar 

  • Hebden J.J., J.F. Pickering. 1974. Patterns of Acquisition of Consumer Durables. Bulletin of Economics and Statistics 36 67–94.

    Article  Google Scholar 

  • Heckman, J. 1976. The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables, and a Simple Estimator for Such Models. Annals of Economic and Social Measurement 5 475–492.

    Google Scholar 

  • Heckman, J. 1979. Sample Selection Bias as a Specification Error. Econometrica 47(January) 153–61.

    Google Scholar 

  • Kamakura, W.A., B. Kossar, M. Wedel. 2004. Identifying Innovators for the Cross-Selling of New Products. Management Science 50(August) 1120–1133.

    Article  Google Scholar 

  • Kamakura, W.A., S.N. Ramaswami, R.K. Srivastava. 1991. Applying Latent Trait Analysis in the Evaluation of Prospects for Cross-Selling of Financial Services. International Journal of Research in Marketing 8(4) 329–350.

    Article  Google Scholar 

  • Kamakura, W.A., S.N. Ramaswami, F. de Rosa, J.A. Mazzon. 2003. Cross-Selling through Database Marketing: A Mixed Data Factor Analyzer for Data Augmentation and Prediction. International Journal of Research in Marketing 20(1) 45–65.

    Article  Google Scholar 

  • Knott, A., A.F. Hayes, S. Neslin. 2002. Next-product-to-buy Models for Cross-Selling Applications. Journal of Interactive Marketing 16(3) 59–75.

    Article  Google Scholar 

  • Krafft, M., K. Peters. 2005. Empirical Findings and Recent Trends of Direct Mailing Optimization. Marketing – Journal of Research and Managment 27(2) 26–40.

    Google Scholar 

  • Krishnamurthi, L., S.P. Raj. 1988. A Model of Brand Choice and Purchase Quantity Price Sensitivities. Marketing Science 7(1) 1–20.

    Article  Google Scholar 

  • Kumar, V., R. Venkatesan. 2005. Who Are the Multichannel Shoppers and How do they Perform? Correlates of Multichannel Shopping Behavior. Journal of Interactive Marketing 19(2) 44–62.

    Article  Google Scholar 

  • Kumar, V., R. Venkatesan, W. Reinartz. 2006. Does Marketing Improve Efficiency and Effectiveness of Sales Campaigns: Experimental Evidence Working Paper, University of Connecticut.

    Google Scholar 

  • Lewis, M. 2004. The Influence of Loyalty Programs and Short Term Promotions on Customer Retention. Journal of Marketing Research 41(3) 281–292.

    Article  Google Scholar 

  • Lewis, M. 2006. Customer Acquisition Promotions and Customer Asset Value. Journal of Marketing Research 43 (2) 195–203.

    Google Scholar 

  • Li, S., B. sun, R.T. Wilcox. 2005. Cross-Selling Sequentially Ordered Products: An Application to Consumer Banking. Journal of Marketing Research 42(May) 233–239.

    Article  Google Scholar 

  • Lilien, G.L., P. Kotler, K.S. Moorthy. 1992. Marketing Models Prentice Hall.

    Google Scholar 

  • LimDep 2002. Econometric Software Inc., Plainview, NY

    Google Scholar 

  • Malthouse, E. 2001. Assessing the Performance of Direct Marketing Scoring Models. Journal of Interactive Marketing 15(1) 49–62.

    Article  Google Scholar 

  • Malthouse, E., R. Blattberg 2005. Is it Possible to Predict Customer Long-Term Value? Journal of Interactive Marketing 19(1) 2–16.

    Google Scholar 

  • Manchanda, P., P.E. Rossi, P.K. Chintagunta. 2004. Response Modeling with Nonrandom Marketing-Mix Variables. Journal of Marketing Research. 41(4) 467

    Article  Google Scholar 

  • Morgan, R.M., S.D. Hunt. 1994. The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing 58(July) 20–38.

    Article  Google Scholar 

  • Mulhern, F. 1999. Customer Profitability Analysis: Measurement, Concentration, and Research Directions. Journal of Interactive Marketing 13(Winter) 25–40.

    Article  Google Scholar 

  • Neslin, S., S. Gupta, W. Kamakura, J. Lu, C. Mason. 2006. Defection Detection: Measuring and Understanding the Predictive Accuracy of Customer Churn Models. Journal of Marketing Research 43(2) 204–211.

    Article  Google Scholar 

  • Niraj, R., M. Gupta, C. Narasimhan. 2001. Customer Profitability in a Supply Chain. Journal of Marketing 65(July) 1–16.

    Article  Google Scholar 

  • Oldstein, J. 1989. Working Effectively with a List Brokerage Firm. Direct Marketing Manual. The Direct Marketing Association, Inc., New York.

    Google Scholar 

  • Paroush, J. 1965. The Order of Acquisition of Consumer Durables. Econometrica 33(1) 225–35.

    Article  Google Scholar 

  • Pfeiffer, P., R. Carraway. 2000. Modelling Customer Relationships as Markov Chains. Journal of Interactive Marketing 14(2) 43–55.

    Article  Google Scholar 

  • Reichheld, F., T. Teal. 1996. The Loyalty Effect. Harvard Business School Press, Boston, MA.

    Google Scholar 

  • Reinartz, W. 2005. Understanding Customer Loyalty Programs. Retailing in the 21st Century. Current and Future Trends, Mantrala M., M. Krafft, Eds. Springer Verlag.

    Google Scholar 

  • Reinartz, W., M. Krafft, W. Hoyer. 2004. The CRM Process: Its Measurement and Impact on Performance. Journal of Marketing Research 41(August) 293–305.

    Article  Google Scholar 

  • Reinartz, W., V. Kumar. 2000. On the Profitability of Long-Life Customers in a Non-Contractual Setting: An Empirical Investigation and Implications for Marketing. Journal of Marketing 64(October), 17–35.

    Article  Google Scholar 

  • Reinartz, W., V. Kumar. 2002. The Mismanagement of Customer Loyalty. Harvard Business Review. 80(July) 86–94.

    Google Scholar 

  • Reinartz, W., V. Kumar. 2003. The Impact of Customer Relationship Characteristics on Profitable Lifetime Duration. Journal of Marketing 67(January) 77–99.

    Google Scholar 

  • Reinartz, W., J. S. Thomas, V. Kumar. 2005. Balancing Acquisition and Retention Resources to Maximize Customer Profitability Journal of Marketing 69(1) 63–79.

    Google Scholar 

  • Rust, Roland, T. 2007. Seeking Higher Roi? Base Strategy on Customer Equity. Advertising Age 78(36) 26–27.

    Google Scholar 

  • Schmittlein, D., D. G. Morrison, R. Colombo. 1987. Counting Your Customers: Who Are They and What Will They do Next?. Management Science 33(January) 1–24.

    Article  Google Scholar 

  • Schmittlein, D., D. G., R. A. Peterson. 1994. Customer Base Analysis: An Industrial Purchase Process Application. Marketing Science 13 41–67.

    Article  Google Scholar 

  • Sharp, B., A. Sharp. 1997. Loyalty Programs and Their Impact on Repeat-Purchase Loyalty Patterns. International Journal of Research in Marketing 14(5) 473–86.

    Article  Google Scholar 

  • Shugan, S. 2004. Endogeneity in Marketing Decision Models Marketing Science 23(1) 1–3.

    Article  Google Scholar 

  • Srivastava, R., T. Shervani, L. Fahey. 1998. Marketing-Based Assets and Shareholder Value: A Framework for Analysis. Journal of Marketing, 62(January) 2–18.

    Article  Google Scholar 

  • Steenburgh, T., A. Ainslie, P.H. Engebretson. 2003. Revealing the Information in Zipcodes: Bayesian Massively Categorical Variables and Aggregated Data in Direct Marketing. Marketing Science 22(Winter) 40–57.

    Article  Google Scholar 

  • Thomas, J.S., R.C. Blattberg, E.J. Fox. 2004. Recapturing Lost Customers. Journal of Marketing Research 41(February) 31–45.

    Article  Google Scholar 

  • Thomas, J.S., U. Sullivan. 2005 Managing Marketing Communications with Multichannel Customers. Journal of Marketing 69 239–251.

    Article  Google Scholar 

  • Venkatesan, R., V. Kumar. 2004. A Customer Lifetime Value Framework for Customer Selection and Resource Allocation Strategy. Journal of Marketing 68(October) 106–25.

    Article  Google Scholar 

  • Venkatesan, R., V. Kumar, N. Ravishanker. 2007. The Impact of Customer-Firm Interaction Characteristics on Channel Adoption Duration. Journal of Marketing forthcoming.

    Google Scholar 

  • Verhoef, P.C., B. Donkers. 2005. The effect of acquisition channels on customer loyalty and cross-buying. Journal of Interactive Marketing 19(2) 31–43.

    Article  Google Scholar 

  • Verhoef, P.C., P.H. Franses, J.C. Hoekstra. 2001. The Impact of Satisfaction and Payment Equity on Cross-Buying: A Dynamic Model for Multi-Service Provider. Journal of Retailing 77( Fall) 359–378.

    Article  Google Scholar 

  • Villanueva, J., S. Yoo, D. Hanssens. 2006. The Impact of Marketing-Induces vs. Word-of-Mouth Customer Acquisition on Customer Equity. Working Paper, IESE Business School, University of Navarra, No. 516.

    Google Scholar 

  • Webster, F., Jr. 1992. The Changing Role of Marketing in the Corporation. Journal of Marketing 56(October) 1–17.

    Article  Google Scholar 

  • Webster, F., Jr., A. Malter, S. Ganesan. 2005. Understanding the Changing Role of Marketing Management. MIT Sloan Management Review 46(4) 35–43.

    Google Scholar 

  • Wind, Y., V. Mahajan. 2002. Convergence Marketing: Strategies for Reaching the New Hybrid Customer. Prentice Hall, Inc., Upper Saddle River, NJ.

    Google Scholar 

  • Winer, R.S. 1983. Attrition Bias in Econometric Models Estimated with Panel Data. Journal of Marketing Research 20(May) 177–86.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. University of Cologne, Germany

    Werner J. Reinartz

Authors
  1. Werner J. Reinartz
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Rajkumar Venkatesan
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Werner J. Reinartz .

Editor information

Editors and Affiliations

  1. Erasmus University, Rotterdam, The Netherlands

    Berend Wierenga (Prof) (Prof)

Rights and permissions

Reprints and permissions

Copyright information

© 2008 Springer Science+Business Media, LLC

About this chapter

Cite this chapter

Reinartz, W.J., Venkatesan, R. (2008). Decision Models for Customer Relationship Management (CRM). In: Wierenga, B. (eds) Handbook of Marketing Decision Models. International Series in Operations Research & Management Science, vol 121. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-78213-3_9

Download citation

Publish with us

Policies and ethics

Search

Navigation