en پژوهشی Original <p><span style="line-height: 115% font-family:"><em><font size="2"><font size="3">We </font><font face="Times New Roman"><font size="3"><span style="mso-spacerun: yes"> </span>deal with the relationship termination problem in the context of individual-level customer relationship management (CRM) and use a Markov decision process to determine the most appropriate occasion for termination of the relationship with a seemingly unprofitable customer. As a particular case, the beta-geometric/beta-binomial model is considered as the basis to define customer behavior and it is explained how to compute customer lifetime value when one needs to take account of the firm’s choice as to whether to continue or terminate relationship with unprofitable customers. By numerical examples provided by simulation, it is shown how a stochastic dynamic programming approach can be adopted in order to obtain a more precise estimation of the customer lifetime value as a key criterion for resource allocation in CRM.</font><span style="mso-spacerun: yes"> </span><span style="mso-spacerun: yes"> </span><span style="mso-spacerun: yes"> </span><span style="mso-spacerun: yes"> </span><span style="mso-spacerun: yes"> </span></font></font></em></span></p> Customer relationship management, Customer lifetime value, Empirical Bayesian models, Beta-geometric/beta-binomial model, Stochastic dynamic programming 83 93 http://iors.ir/journal/browse.php?a_code=A-10-450-2&slc_lang=en&sid=1 Samimi 0003194753284600857 0003194753284600857 Yes Aghaie 0003194753284600858 0003194753284600858 No Shahriari 0003194753284600859 0003194753284600859 No