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Models of Customer Value

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Notes

  1. 1.

    We typically include acquisition cost (AC) for yet-to-be-acquired customers. To estimate the CLV for an already acquired customer, this cost is sunk and is not included in the CLV calculations.

  2. 2.

    This expression holds only if (1+i) > r(1+g).

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Authors and Affiliations

  1. Edward W. Carter Professor of Business Administration at the Harvard Business School, Harvard University, Boston, USA

    Sunil Gupta

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  1. Sunil Gupta
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  2. Donald R. Lehmann
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Correspondence to Sunil Gupta .

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  1. Erasmus University, Rotterdam, The Netherlands

    Berend Wierenga (Prof) (Prof)

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Gupta, S., Lehmann, D.R. (2008). Models of Customer Value. In: Wierenga, B. (eds) Handbook of Marketing Decision Models. International Series in Operations Research & Management Science, vol 121. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-78213-3_8

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