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- W1966202460 abstract "This study proposes a new customer lifetime model: the gamma/Gompertz distribution (G/G). The advantage of this model relative to the well-known Pareto distribution is twofold: (i) its probability density function can exhibit a mode at zero or an interior mode, and (ii) it can be skewed to the right or to the left. We combine the G/G with a negative binomial distribution (NBD) and obtain the moments of the distribution of the number of transactions over (0, T] and (T, T+T * ]. Out of six data sets, the G/G/NBD model provides a notable improvement in the log-likelihood over the Pareto/NBD model in four data sets. It can indicate substantial differences in expected residual lifetimes compared to the Pareto/NBD and induce a retention rather than acquisition policy. On the average, the G/G/NBD exhibits slightly better forecasts of the mean number of transactions than the Pareto/NBD. This paper was accepted by Pradeep Chintagunta, marketing." @default.
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- W1966202460 date "2012-05-01" @default.
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- W1966202460 title "Modeling Purchasing Behavior with Sudden “Death”: A Flexible Customer Lifetime Model" @default.
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- W1966202460 doi "https://doi.org/10.1287/mnsc.1110.1461" @default.
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