Balancing Risk and Return in a Customer Portfolio

  title={Balancing Risk and Return in a Customer Portfolio},
  author={Crina O. Tarasi and Ruth N. Bolton and Michael D. Hutt and Beth A. Walker},
  journal={Journal of Marketing},
  pages={1 - 17}
Marketing managers can increase shareholder value by structuring a customer portfolio to reduce the vulnerability and volatility of cash flows. This article demonstrates how financial portfolio theory provides an organizing framework for (1) diagnosing the variability in a customer portfolio, (2) assessing the complementarity/similarity of market segments, (3) exploring market segment weights in an optimized portfolio, and (4) isolating the reward on variability that individual customers or… 

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