An empirical study of the dynamic customer relationship management with M

We apply the Gonul and Shi (1998)([1]) approach in the analysis of the transaction patterns between a local supermarket and its consumers. We investigate the relationship between the customer utility and the purchasing frequency by modifying the return function of the model discussed in Gonul and Shi (1998). When applied to some nonseasonal products in the supermarket, we find that our model is suitable and much more superior to the one-stage model commonly used. Our dynamic model gives the optimal marketing-mixed strategies in different customer states and the results show. that the firm can enjoy 20.7 percent incense in profit.