Maximizing Profitability and Return on Investment : A Short Clarification on Reinartz, Thomas, and Kumar  

Oleh:

Ambler, Tim

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Journal of Marketing (EBSCO) vol. 69 no. 4 (Oct. 2005), page 153-154.
Topik: investment; maximizing profitability

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ94.9 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

Reinartz, Thomas and Kumar (2005) provide a valuable methodology for balancing resources between customer retention and acquisition. They also conclude that optimal profitability (net return) coincides with optimal return on investment. This article clarifies this perhaps surprising conclusion and shows that it arises from the authors' methodology rather than from the data. More conventional analysis of the same data indicates that maximum return on investment is reached with lower expenditure than maximum profitability.

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