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A mathematical model for the customer dynamics based on marketing policy

Author

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  • Silva, César M.
  • Rosa, Silvério
  • Alves, Helena
  • Carvalho, Pedro G.

Abstract

We consider a compartmental model to study the evolution of the number of regular customers and referral customers in some corporation. Transitions between compartments are modeled by parameters depending on the social network and the marketing policy of the corporation. We obtain some results on the asymptotic number of regular customers and referral customers in several particular scenarios. Additionally we present some simulation that illustrates the behavior of the model and discuss its applicability.

Suggested Citation

  • Silva, César M. & Rosa, Silvério & Alves, Helena & Carvalho, Pedro G., 2016. "A mathematical model for the customer dynamics based on marketing policy," Applied Mathematics and Computation, Elsevier, vol. 273(C), pages 42-53.
    • Handle: RePEc:eee:apmaco:v:273:y:2016:i:c:p:42-53
    DOI: 10.1016/j.amc.2015.09.050
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    References listed on IDEAS

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    4. Fabio Tramontana, 2010. "Economics as a compartmental system: a simple macroeconomic example," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 57(4), pages 347-360, December.
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    6. Marc Artzrouni & Fabio Tramontana, 2014. "The debt trap: a two compartment train wreck ...and how to avoid it," Post-Print hal-01881906, HAL.
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    Cited by:

    1. Rosa, S. & Rebelo, P. & Silva, C.M. & Alves, H. & Carvalho, P.G., 2018. "Optimal control of the customer dynamics based on marketing policy," Applied Mathematics and Computation, Elsevier, vol. 330(C), pages 42-55.

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