3.4 Duration/Time
In contractual settings, the time customers spent with a company is critical to the maintenance and development of a business. Lewis [4] argued that customer acquisition promotions influence the duration of customer–company relationships. In the newspaper subscription industry, the author used survival analysis to model the relationship between discount depth and the length of time as a subscriber. The author adopted accelerated failure time models (Kalbfleish and Prentice, 1980) estimated as shown in the following specification:
where 
is a random disturbance term, 
and 
are the discount and discount squared, and 
and 
are parameters to be estimated. The author varied the restrictions on 
and and specified various forms of the hazard function. The author used the ...
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