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Organization customer behavior: Elected models

Marketing Science 2008
Paper is dealing with business-to-business marketing issues with particular attention to some of models oriented to explain differences relative to FMCG marketing. Author describe the core principles of selected models including their basic features. In this paper some of models are in focus - Window and Webster-Window model as well as Sheets model, Nielsen model and Multivariation tools.

A Hidden Markov Model of Customer Relationship Dynamics

Marketing Science 2008
This research models the dynamics of customer relationships using typical transaction data. Our proposed model permits not only capturing the dynamics of customer relationships, but also incorporating the effect of the sequence of customer-firm encounters on the dynamics of customer relationships and the subsequent buying behavior. Our approach to modeling relationship dynamics is structurally different from existing approaches. Specifically, we construct and estimate a nonhomogeneous hidden Markov model to model the transitions among latent relationship states and effects on buying behavior. In the proposed model, the transitions between the states are a function of time-varying covariates such as customer-firm encounters that could have an enduring impact by shifting the customer to a different (unobservable) relationship state. The proposed model enables marketers to dynamically segment their customer base and to examine methods by which the firm can alter long-term buying behavior. We use a hierarchical Bayes approach to capture the unobserved heterogeneity across customers. We calibrate the model in the context of alumni relations using a longitudinal gift-giving data set. Using the proposed model, we probabilistically classify the alumni base into three relationship states and estimate the effect of alumni-university interactions, such as reunions, on the movement of alumni between these states. Additionally, we demonstrate improved prediction ability on a hold-out sample.

Customer relationship management: Modern aspects of information technology application

Marketing Science 2008
The concept of Customer Relationship Management has emerged around the maxim on the essential importance of the customers for business success of the company. The vital role in the concept development is assigned to an employment of the various information communication technologies: in the scope of operational CRM that is the application of Internet technologies, web browsers, e-mails, POS terminals, call centers; on the other side, analytical CRM involves activities such as data mining, web mining, click stream analysis etc. Modern tendencies in the development of information-communication technologies have generated new communication models between company and its customers, therefore companies are not only focused on the products and services, but also on the communication channels and techniques with customers. On that ground many companies are accepting and using new tools belonging to the web 2.0 technologies which have produced the new CRM model - CRM 2.0.

The marketing strategy of a small enterprise

Marketing Science 2008
Small enterprise shows some specific characteristics which are necessary for creation of marketing strategy. The goal of this work is an attempt of marketing strategy analysis of the small enterprises. The necessary request of the analysis is to define the small enterprise. There have also been analyzed the specific orders for small enterpriser. Special part of work is dedicated to a small enterprises management strategy and the other one to their marketing communications. There are mentioned some specific advantages and problems of the small enterprises, too.

RFM customer profitability analysis

Marketing Science 2008
Measuring the customer profitability is a very important activity for each and every modern marketing oriented firm. By identifying profitable customer segments, the efficiency and the effectiveness of the marketing strategies can be significantly improved. One of the best-known methods for identifying the most valuable customers is the RFM method. The application of this method is particularly important in the decision-making process related to justification of the application of the various direct marketing strategies, and especially when the introduction of the new product into the market is the key issue.