MARKOV MODELS IN CALCULATING CLV

T h e   paper   p resents   a   me hod   of   ca l culating   c u stomer   life t i me   value and   findi n g o p t i mal re m ark e ting   strategy   bas i ng o n Mar k ov m odel   wi t h   short-t e r m m e m o ry of   clien t 's activi t y . Furthe r m ore, sensitivity anal y s i s of o p tim a l strategy i s conduc t ed for two ty p es of ret e n tion rate functi o n al fo r m defi n ing t r ansitin probabili t ies