Title

Stochastic Models for Optimal Assessment of Control Relationship Management with Customer.

Translated Titles

Stochastic Models for Optimal Assessment of Control Relationship Management with Customer.

DOI

10.6838/YZU.2011.00372

Authors

BubaBajo

Key Words

Customer lifetime value ; stochastic dynamic programming models ; Markov chain ; dual simplex method ; Customer lifetime value ; stochastic dynamic programming models ; Markov chain ; dual simplex method

PublicationName

元智大學工業工程與管理學系學位論文

Volume or Term/Year and Month of Publication

2011年

Academic Degree Category

碩士

Advisor

陳雲岫

Content Language

繁體中文

Chinese Abstract

ABSTRACT In any service system, one of the challenges in assessing customer lifetime value or more is the Classification of customers. Running a successful business is to maintain a good relationship with the customers. Classification of customers (i.e. a company should identify the profitable customers and keep them with an acceptable effort) plays an important role in promotion planning and budget setting. Promotion budget allocation is designed to attract and keep customers. In this thesis we applied stochastic dynamic programming models with the Markov chain techniques for capturing the customer behavior. The model can be implemented using dual simplex method in a Microsoft Excel worksheet, and precise implementation is also demonstrated and discussed in details. Furthermore, a higher-order Markov chain model is a further way of capturing the dynamics of practical data. The practical data from Telecommunication Company is used to illustrate the effectiveness of the higher-order Markov Model thereby observed the improvement in predicting the customer behavior. Keywords: Customer lifetime value, stochastic dynamic programming models, Markov chain, dual simplex method

English Abstract

ABSTRACT In any service system, one of the challenges in assessing customer lifetime value or more is the Classification of customers. Running a successful business is to maintain a good relationship with the customers. Classification of customers (i.e. a company should identify the profitable customers and keep them with an acceptable effort) plays an important role in promotion planning and budget setting. Promotion budget allocation is designed to attract and keep customers. In this thesis we applied stochastic dynamic programming models with the Markov chain techniques for capturing the customer behavior. The model can be implemented using dual simplex method in a Microsoft Excel worksheet, and precise implementation is also demonstrated and discussed in details. Furthermore, a higher-order Markov chain model is a further way of capturing the dynamics of practical data. The practical data from Telecommunication Company is used to illustrate the effectiveness of the higher-order Markov Model thereby observed the improvement in predicting the customer behavior. Keywords: Customer lifetime value, stochastic dynamic programming models, Markov chain, dual simplex method

Topic Category 工程學院 > 工業工程與管理學系
工程學 > 工程學總論
社會科學 > 管理學
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