Management Science and Financial Engineering

The Korean Operations Research and Management Science Society (한국경영과학회)
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Dynamic Customer Population Management Model at Aggregate Level

  • Kim, Geon-Ha (Dept. of Business Administration, Myongji University)
  • Received : 2010.03.24
  • Accepted : 2010.05.20
  • Published : 2010.11.30
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Abstract

Customer population management models can be classified into three categories: the first category includes the models that analyze the customer population at cohort level; the second one deals with the customer population at aggregate level; the third one has interest in the interactions among the customer populations in the competitive market. Our study proposes a model that can analyze the dynamics of customer population in consumer-durables market at aggregate level. The dynamics of customer population includes the retention curves from the purchase or at a specific duration time, the duration time expectancy at a specific duration time, and customer population growth or decline including net replacement rate, intrinsic rate of increase, and the generation time of customer population. For this study, we adopt mathematical ecology models, redefine them, and restructure interdisciplinary models to analyze the dynamics of customer population at aggregate level. We use the data of previous research on dynamic customer population management at cohort level to compare its results with those of ours and to demonstrate the useful analytical effects which the precious research cannot provide for marketers.

Keywords

References

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