Optimal Investment and Marketing StrategiesOver the past decade, innovative technologies have resulted in an extensive growth of new services. Each new service requires a number of management and marketing decisions to be made well in advance of its launch and throughout its entire life cycle.This book develops mathematical models to facilitate decisionmaking dealing with technologically innovative services. Specifically, it develops (i) models for optimal pricing strategies of subscription services on monopolistic and duopolistic markets; (ii) an analytical model for optimal investment and optimal pricing strategies for innovative maintenance service contracts; and (iii) a model for targeting customers in marketing campaigns. In addition, the models (i)-(iii) can also be used to forecast an aggregate demand for a new service as well as the service demand for each individual customer.Key FeaturesPresents the first quantitative model for performance-based post-production service contracts resulting in optimal investment and pricing strategiesDeepens understanding of new service diffusion and patterns of customer migration from a legacy service to a new technological substituteHighlights models that provide accurate projections of service demand and ensure efficient targeted marketing campaigns