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Published Articles >> Table of Contents >> Abstract
2004 IEEE International Conference on e-Technology, e-Commerce and e-Service (EEE'04)
pp. 149-156
e-CLV: A Modeling Approach for Customer Lifetime Evaluation in e-Commerce Domains, with an Application and Case Study for Online Auctions
Opher Etzion, IBM Research Laboratory in Haifa
Amit Fisher, Technion & Israel Institute of Technology
Segev Wasserkrug, IBM Research Laboratory in Haifa
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DOI Bookmark: http://doi.ieeecomputersociety.org/10.1109/EEE.2004.1287301
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| Abstract |
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e-Commerce companies understand that customers are their most important asset and that it is imperative to estimate the potential value of this asset. Hence, a model for calculating customer’s value is essential in these domains. This paper describes a general modeling approach, based on Markov Chain Models, for calculating customer value in the e-Commerce domain. This model extends existing models from the field of direct marketing, by taking into account a new set of variables required for evaluating customers value in an e-Commerce environment. In Addition, we present an algorithm for generating this model from historical data, as well as an application of this modeling approach for the creation of a model for online auctions. The article also describes a case study that demonstrates how our model provides more accurate predictions than existing models regarding the future income generated by customers.
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 Additional Information
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Citation:
Opher Etzion, Amit Fisher, Segev Wasserkrug,
"e-CLV: A Modeling Approach for Customer Lifetime Evaluation in e-Commerce Domains, with an Application and Case Study for Online Auctions,"
eee,
pp. 149-156,
2004 IEEE International Conference on e-Technology, e-Commerce and e-Service (EEE'04),
2004
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