Unveiling the relationship between the transaction timing, spending and dropout behavior of customers

Nicolas Glady, Aurélie Lemmens and Christophe Croux

International Journal of Research in Marketing, 2015, vol. 32, issue 1, 78-93

Abstract: The customer lifetime value combines into one construct the transaction timing, spending and dropout processes that characterize the purchase behavior of customers. Recently, the potential relationship between these processes, either at the individual customer level (i.e. intra-customer correlation) or between customers (i.e. inter-customer correlation), has received more attention. In this paper, we propose to jointly unveil the direction and intensity of these correlations using copulas. We investigate the presence of these correlations in four distinct product categories, namely online music albums sales, securities transactions, and utilitarian and hedonic fast-moving consumer good retail sales.

Keywords: Correlation; Copula; Customer lifetime value; Customer portfolio management; Pareto/NBD model; Volatility of cash flows (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ijrema:v:32:y:2015:i:1:p:78-93

DOI: 10.1016/j.ijresmar.2014.09.005

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