Marketing Models for the Customer-Centric Firm

Abstract

We are very pleased to present this second edition of the Handbook of Marketing Decision Models. The field of marketing decision models is in a permanent state of development and growth. Since the publication of the first edition of this Handbook in 2008, new marketing phenomena have come under scrutiny and other areas have been developed more in-depth. This Handbook contains an introductory chapter, followed by seventeen chapters on marketing decision models in different domains. Thirteen of these are entirely new. Four chapters are by the same authors as in the first edition, but represent complete updates and extensions of previous texts. Information technology remains the main driver of developments in marketing decision models. Not surprisingly, this new edition of the Handbook has chapters on models for customer relationship management, customer loyalty management, Web site design, Internet advertising, social media, and social networks. In addition to this, there are new chapters on many other topics. The introductory chapter offers a short description of each chapter. Biographies of the contributing authors can be found at the end of the book. The Handbook presents state-of-the-art marketing decision models and is highly relevant for several subsets of readers including builders of marketing models, users of marketing models, and academics in marketing departments of business schools, in related departments such as decision sciences and strategy, marketing scientists working outside academia, Ph.D. students, marketing researchers, and consultants. The book is also designed to cover the substantive content in marketing models courses at the graduate level. The Handbook is available in hard copy and in electronic form (also as individual chapters) and will be part of Springer's eBook package for universities. We would like to thank all our colleagues in the field who have helped us to write this Handbook. Most of all, we thank the authors of the chapters of this book. They are all world-renowned specialists in their fields, people with busy schedules, and they have taken the time and effort to write and revise their chapters. By doing this, they offer the opportunity to others to share their expertise. This is a great service to the field.

Retention Futility: Targeting High-Risk Customers Might be Ineffective

“…2For a review of the broader literature on customer retention (beyond proactive churn management), refer to Ascarza, Fader, and Hardie (2017) and Ascarza, Neslin, et al (2017).…”

“…This practice differs from untargeted approaches to reduce churn, which aim at increasing satisfaction and switching costs across all customers, or from reactive churn management programs, in which firms wait for customers to churn (or attempt to churn) before offering them incentives to stay(Blattberg, Kim, and Neslin 2008). 2 For a review of the broader literature on customer retention (beyond proactive churn management), refer toAscarza, Fader, and Hardie (2017) andAscarza, Neslin, et al (2017).3 Unlike purchasing, customers can only churn once, limiting the number of observations per customer. Moreover, most firms do not vary their proactive retention strategies as often as marketing variables change in other contexts (e.g., price, display).…”

Conversion Uplift in E-Commerce: A Systematic Benchmark of Modeling Strategies

“…Digital marketing uses analytic methods to extract relevant insights from massive amounts of data and to drive the company toward growth and profitability. Empirical marketing decision models support all stages of a customer lifecycle including acquisition, development, and retention management (Ascarza et al, 2017;Rhouma & Zaccour, 2018). Digital marketing is most successful when it is personalized and well-targeted (Huang & Tsui, 2016).…”

Informational Challenges in Omnichannel Marketing: Remedies and Future Research

“…Thus, whereas Verhoef et al (2015) emphasize experience over transactions and Ailawadi and Farris (2017) emphasize communications over sales, our view of omnichannel marketing considers sales, experience, and communications. Note that the synergistic management of touchpoints and experiences might affect important outcomes for firms, such as market share, profits, and customer lifetime value (Ascarza, Fader, and Hardie 2017). The exact objective function is likely to vary across firms and its and customers' life cycle.…”