Working Papers

Optimal Allocation of Marketing Efforts by Customer-Channel Segment

Tarun Kushwaha and Venkatesh Shankar

Jan 1, 2007

Develops an integrated model for optimal allocation of marketing efforts across different customer-channel segments based on response models for purchase frequency and quantity, product return propensity, and contribution margin; estimates response models using customer-level purchase, cost, and promotional data for a large marketer of shoes and apparel accessories across catalog, store, and Web channels.

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