On June 12, Daniel McCarthy, Emory University, was awarded the 2019-2020 Gary Lilien ISMS-MSI-EMAC Practice Prize for his work, “CBCV: Reshaping the Practice of Corporate Valuation Using a Customer- Driven Approach.”

At a June 12 Award competition at the INFORMS Society for Marketing Science Conference (held virtually by Duke University), McCarthy presented evidence of excess returns from a trading strategy on the basis of Customer Based Corporate Valuation.

He demonstrated that CBCV is both straightforward to implement (requiring only publicly available data), and based on solid marketing science principles of valuing the current and likely future income streams from a company’s market-based assets, in particular its customers. CBCV analyses of Blue Apron, HelloFresh, Farfetch, Lyft, Revolve Clothing, and Wayfair has significantly influenced the practice of corporate valuation.

The other finalists in the 2019-20 competition were:

“The Comprehensive Effects of Sales Force Management: A Dynamic Structural Analysis of Selection, Compensation, and Training” by Doug Chung, Byungyeon Kim, and Byoung G. Park

“Machines and Humans: Field Experiments on Generating Business Value from Artificial Intelligence Chatbot in a Financial Services Company” by Xueming Luo, Siliang Tong, Zheng Fang, and Zhe Qu

All three finalists benefitted from feedback from John Roberts, UNSW Sydney,  and Gary Lilien, Pennsylvania State University. The judges for the competition were:

• Kusum Ailawadi, Dartmouth College
• Michael Cohen, Marketing Evolution
• Robert Moakler, Facebook
• Koen Pauwels, Northeastern University
• Greg Pharo, Coca-Cola
• John Wittenbraker, Ipsos

Established in 2003, the Gary Lilien ISMS-MSI-EMAC Practice Prize highlights and celebrates  outstanding marketing science work that has had significant organizational impact. Past papers describing these marketing science implementations are available in the journal Marketing Science.  Videos of past finalists and winners are available at http://lilienpracticeprizevideos.org/.