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...

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...

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...