A study of signaling game and its Bayesian equilibrium in CRM

The paper applies the analysis method of the signaling game into the customer relationship management (CRM). Based on the bi-direction information transmitted in the CRM, the signaling game model of business-customer is established, which is represented by six factors, such as advertisement input level, product price, service level, consultation input level, purchase quantity and satisfactory degree. The model focuses on the equilibrium activities of the business and customer in the environment of CRM. The Bayesian equilibrium of the model is obtained by applying backwards induction