Effect of Social Media Interactions on CLV in Telecommunications

Kivrak, Oğuzhan; Akar, Cüneyt

doi:10.1142/s0219622020500030

Cited by 2 publications

(2 citation statements)

References 44 publications

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“…In fact, a large number of existing studies in the broader literature have examined CLV. In 2020, Oğuzhan Kivrak and Cüneyt Akar investigated the effect of social media on customer lifetime value (CLV) as a recent communication channel [12]. Hence, they tried to develop both artificial neural network models and sector-specific applicable models.…”

Section: Literature Reviewmentioning

confidence: 99%

Considering Customer Lifetime Network Value in Oligopoly Markets With The Use of Game Theory Approach

Vatankhah

Samizadeh

2023

Scientia Iranica

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This research proposes a model that calculates the customer lifetime value and simultaneously considers the network effects. An oligopoly market is also considered in which companies compete with each other. Each company has a number of buyers and sellers and offers its services to the buyers free while receiving the sellers' membership fees in return. Interestingly, the customers interact with each other and change the companies' clients. This interaction between them is known as word-of-mouth marketing, and it also exists among the sellers. It is noteworthy that the existence of both buyers and sellers is only meaningful. Indeed, the increase of buyers leads to a rise in the number of sellers and also makes the company more profitable. In fact, the network effects are categorized into four forms that are as follows: (1) buyers' effects on each other, (2) sellers' effects on each other, (3) buyers' effects on sellers, and (4) sellers' effects on their buyers. These effects are the main factors that the companies tend to take into consideration when determining the optimal marketing and pricing policies. Applying differential game theory makes it possible to receive the companies' market share, advertising, and pricing strategy. Besides, two numerical examples and sensitivity analyses are provided to demonstrate the proposed model. Finally, it was found that making the network effects stronger leads to less need for advertising and attracting more customers; thus, the total costs are minimized.

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Section: Literature Reviewmentioning

confidence: 99%

Considering Customer Lifetime Network Value in Oligopoly Markets With The Use of Game Theory Approach

Vatankhah

Samizadeh

2023

Scientia Iranica

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“…As Kivrak and Akar (2020) state, understanding more about high and low profitable customers will help companies appropriately design resource allocation strategies for their services. The companies which plan their future marketing plans have to make predictions about their customers’ future profitability values (Mosavi and Afsar, 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

Development of a hybrid model to plan segment based optimal promotion strategy

Ekinci

Güran

2022

International Journal of Market Research

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The study addresses the long-term effects of promotions in terms of movement in a value-based segmentation (lead, iron, gold, platinum), instead of simply looking at response rates that occur shortly after the promotion. The study develops a framework for planning an optimal promotion strategy via Markov Decision Processes and Machine Learning methods for an online department store. In the first phase, the states are set as the customer profitability segments in order to conduct the MDPs. Then, MDP model is solved, and the optimal decision for each segment is determined. In the second phase, in order to aid the company for making their plans for the next year, the segment that the customer will belong to next year should be predicted. Prediction of the future customer profitability segment is performed by using several machine learning algorithms, and the best performing model is selected. Using this best performing model, the company can predict the future (potential) profitability segment of the customer and make plans which include the optimal promotions that will be directed to the customers depending on their segments (these optimal promotions are the outcomes of the first phase). The proposed framework can be applied by practitioners in e-commerce companies which keep customer data.

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Effect of Social Media Interactions on CLV in Telecommunications

Cited by 2 publications

References 44 publications

Considering Customer Lifetime Network Value in Oligopoly Markets With The Use of Game Theory Approach

Considering Customer Lifetime Network Value in Oligopoly Markets With The Use of Game Theory Approach

Development of a hybrid model to plan segment based optimal promotion strategy

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