Dony Permana, Udjianna S. Pasaribu, Sapto W. Indratno, Suprayogi
A firm's potential reward in future time from a customer can be determined by customer lifetime value (CLV). There are some mathematic methods to calculate it. One method is using Markov chain stochastic model. Here, a customer is assumed through some states. Transition inter the states follow Markovian properties. If we are given some states for a customer and the relationships inter states, then we can make some Markov models to describe the properties of the customer. As Markov models, CLV is defined as a vector contains CLV for a customer in the first state. In this paper we make a classification of Markov Models to calculate CLV. Start from two states of customer model, we make develop in many states models. The development a model is based on weaknesses in previous model. Some last models can be expected to describe how real characters of customers in a firm. © Published under licence by IOP Publishing Ltd.
Statistics Study Program, Faculty of Mathematics, Natural Sciencies Universitas Negeri Padang, Indonesia; Statistics Research Division, Faculty of Mathematics, Natural Sciencies Institut Teknologi Bandung, Indonesia; Industrial System and Techno-Economics, Research Group, Faculty of Industrial Technology Institut Teknologi Bandung, Indonesia
