Abstract
Consider the case of a buyer-seller relationship in which neither the length nor the usage or monetary volume is contractually fixed, i.e. aviation services, hotels, retail outlets. In this non -contractual setting (Reinartz/Kumar 2000), it is especially challenging to forecast if a customer will repurchase at a company and if so how many transactions a customer will conduct with the supplier in the future. A customer may have moved to another city, may have been disenchanted with the purchased product and may have switched the provider or may for any other reason not need the supplier’s service anymore. The complexity of the problem stems from the fact that a company is generally not notified when a customer stops purchasing from it. Knowing whether and if so, how intensively a customer continues to purchase from the supplier is fundamental information for successful and reliable computation of e.g. CLV and customer equity. It may as well act as information for reactivation of lost customers and more importantly for preventing imminent customer dropouts .
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© 2006 Deutsher Universitäts-Verlag | GWV Fachverlage GmbH, Wiesbaden
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Wübben, M., Wangenheim, F.V. (2006). Parameter Estimation in the Pareto/NBD Model. In: Kleinaltenkamp, M. (eds) Innovatives Dienstleistungsmarketing in Theorie und Praxis. DUV. https://doi.org/10.1007/978-3-8350-9489-5_4
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