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Maximizing profitability and return on investment: a short clarification on Reinartz, Thomas, and Kumar
In the January 2005 issue of Journal of Marketing, Reinartz, Thomas, and Kumar provide a valuable methodology for balancing resources between customer retention and acquisition. They conclude that optimal profitability (net return) coincides with the optimal rate of return on investment (ROI). This conclusion is surprising because the level of expenditure that provides maximum ROI is usually reached at a lower level than the expenditure required to maximize profitability. After exploring various ways to calculate ROI based on Reinartz, Thomas, and Kumar's data, Ambler posits that their conclusion arises from a rather individual, and some might think questionable, formulation of ROI that divides incremental profit by total expenditure. More conventional analysis of the same data indicates that maximum ROI is reached with lower expenditure than maximum profitability..Printed Journal
Call Number | Location | Available |
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PSB lt.dasar - Pascasarjana | 1 |
Penerbit | American Marketing Association., |
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Edisi | - |
Subjek | Marketing Return on investment Profitability |
ISBN/ISSN | 222429 |
Klasifikasi | - |
Deskripsi Fisik | - |
Info Detail Spesifik | - |
Other Version/Related | Tidak tersedia versi lain |
Lampiran Berkas | Tidak Ada Data |