Business Commons^™

Effects Of Free Riders And Incentive Discrimination On Customer Acquisition And Retention Resource Allocation, Geng Wang

Managerial Sciences Dissertations

How should a company best allocate its spending between acquisition and retention? Under what condition should a company devote resources and money to analytics? The above questions are just examples of more general issues concerning many companies when managing their customer acquisition and retention programs. To answer the above questions, I will conduct a study on the allocation of financial resources between incentives that target different types of customers, and the allocation of resources between incentives and analytics spending. This research first distinguishes between customers and acquisition, between incentive and price discount, and between acquisition and retention. It then proposes …