Stand-alone marketing models are well-suited to deal with different behavioral features such as variation in transaction frequency (customer heterogeneity with latent classes), recency and attrition (“buy ‘till you die” models), and more general changes in customer transaction rates...

Customers often stockpile reward points in linear loyalty programs (i.e., programs that do not reward stockpiling) despite several economic incentives against it (e.g., the time value of money). We develop a mathematical model of redemption choice that unites three explanations for why customers...

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...

We examine grocery shopping paths through the lens of the Traveling We examine grocery shopping paths through the lens of the quot;Traveling Salesman Problemquot; (TSP), a classic paradigm from the field of operations research. We define the quot;TSP-optimalquot; path for each shopper as the...

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...

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...

As behavioral hypotheses about in-store decision making become more common in the marketing literature, there is a growing need for richer, more complete datasets in order to test them more carefully. We introduce a novel PathTrackerreg; dataset that captures consumers' in-store shopping...

"A customer-base audit is a systematic review of the buying behavior of a firm's customers using data captured by its transaction systems. It will help you answer questions such as: How healthy is your customer base? How realistic are your growth objectives? How do your customers differ in terms...