Comparing Sales Strategies Using the Markov Chain Relationship Model

Authors

Bocheng Chen, School of Economics & Management, Tsinghua University, Beijing 100084, ChinaFollow
WH Ip, Department of Industrial and Systems Engineering, The Hong Kong Polytechnic Univ, ChinaFollow
Peng Sheng, Beijing Time Sonic Consulting Co., Ltd, Beijing 100085, ChinaFollow
HL Yu, Department of Industrial and Systems Engineering, The Hong Kong Polytechnic Univ, China

Document Type

Article

Abstract

In this paper, the author applied the concept of the Markov chain and divided sales procedures into several indexes and states; use the state index for connecting success in sales and customer relations into Pfeifer’s method, establish a mathematical model, and demonstrate its result. In order to increase profits and decrease the cost of sales for the company, we further classify customers and propose different sale strategies. Case study and analysis are provided to elaborate the approach and its contribution to sales and CRM (customer relationship management) strategy.

Recommended Citation

Chen, Bocheng; Ip, WH; Sheng, Peng; and Yu, HL, "Comparing Sales Strategies Using the Markov Chain Relationship Model" (2004). ICEB 2004 Proceedings (Beijing, China). 42.
https://aisel.aisnet.org/iceb2004/42