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Mathematical analysis of the optimizing acquisition and retention over time problem
Published online by Cambridge University Press: 14 November 2008
Abstract
While making informed decisions regarding investments in customer retention and acquisition becomes a pressing managerial issue, formal models and analysis, which may provide insight into this topic, are still scarce. In this study we examine two dynamic models for optimal acquisition and retention models of a monopoly, the total cost and the cost per customer models. These models are analytically analyzed using classical, direct, methods and asymptotic expansions (for the total cost model). In order to numerically simulated the models, an innovative numerical method was developed for solving ODE systems with initial/final value problems.
Keywords
- Type
- Research Article
- Information
- ESAIM: Mathematical Modelling and Numerical Analysis , Volume 43 , Issue 1 , January 2009 , pp. 119 - 137
- Copyright
- © EDP Sciences, SMAI, 2008
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