Although multi-attribute choice and judgment models have been used to support the product design decisions of firms in a wide variety of industries, their application nevertheless comes with a couple of important caveats. First, some argue that most modeling approaches are limited in their...

Today's managers are very interested in predicting the future purchasing patterns of their customers, which can then serve as an input into lifetime value calculations. Among the models that provide such capabilities, the Pareto/NBD Counting Your Customers framework proposed by Schmittlein,...

The past few years have seen increasing interest in taking the notion of customer lifetime value (CLV) and extending it to value a customer base (with subsequent links to corporate valuation). The application of standard textbook discussions of CLV sees us performing such calculations using a...

Several researchers have proposed models of buyer behavior in noncontractual settings that assume that customers are “alive” for some period of time and then become permanently inactive. The best-known such model is the Pareto/NBD, which assumes that customer attrition (dropout or...