On the Integration of Customer Lifetime Value into Revenue Management

Conference paper
Part of the Operations Research Proceedings book series (ORP)

Abstract

This paper provides insights into assessing customer relationships in a revenue management environment and depicts methodological problems that may arise in this context. For this purpose, we formulate a multi-period deterministic linear programing model, which accounts for customers’ future demand behavior being dependent on the provider’s previous availability decisions. Moreover, on the basis of an illustrative example, we investigate the impact on the control policy of a traditional deterministic linear program when both the product-related revenue and the previously developed long-term profitability measure are considered.

Keywords

Customer Relationship Management Revenue Management Customer Segment Customer Lifetime Value Customer Class 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.Department of Analytics & OptimizationUniversity of AugsburgAugsburgGermany

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