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.
@article{M2AN_2009__43_1_119_0,
author = {Ditkowski, Adi},
title = {Mathematical analysis of the optimizing acquisition and retention over time problem},
journal = {ESAIM: Mathematical Modelling and Numerical Analysis - Mod\'elisation Math\'ematique et Analyse Num\'erique},
volume = {43},
year = {2009},
pages = {119-137},
doi = {10.1051/m2an:2008043},
mrnumber = {2494796},
zbl = {1156.91432},
language = {en},
url = {http://dml.mathdoc.fr/item/M2AN_2009__43_1_119_0}
}
Ditkowski, Adi. Mathematical analysis of the optimizing acquisition and retention over time problem. ESAIM: Mathematical Modelling and Numerical Analysis - Modélisation Mathématique et Analyse Numérique, Tome 43 (2009) pp. 119-137. doi : 10.1051/m2an:2008043. http://gdmltest.u-ga.fr/item/M2AN_2009__43_1_119_0/
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