KNOWING WHEN TO LOWER PRICES OR RAISE 토토사이트 모멘트 OFFERINGS
A version of this article was originally published by IESE Insight(http://insight.iese.edu)
A study of the mobile phone industry by the consultancy Bain and Company showed that customers with higher usage levels were more likely to change providers than those with lower usage levels. This surprising result seems to go against the received wisdom that the more a customer uses the same provider, the less likely he is to switch. The same has also been observed in a financial 토토사이트 모멘트s setting, among many other fields. Who's right?
Sure, customer satisfaction has a proven impact on customer retention, but findings like the Bain study and others would seem to add another shade to the picture. Gabriel Bitran, Paulo Rocha e Oliveira and Ariel Schilkrut decided to explore the dynamics of 토토사이트 모멘트 quality and usage, customer retention and profitability.
They created and employed a mathematical model, which takes customer satisfaction and the depth of the relationship with the 토토사이트 모멘트 provider as paths toward measuring the impact of price and 토토사이트 모멘트 level on a company's profitability. Their analysis sheds light on the underlying dynamics governing 토토사이트 모멘트 delivery systems and the optimality of price and quality-based managerial decisions. It provides a rational basis for the previous findings, proving counter-intuitively how an increase in 토토사이트 모멘트 or a decrease in price may result in a smaller customer base but higher profits.
The authors argue the following: When a company experiences a decreased customer base after changing prices or the level of 토토사이트 모멘트 quality, the resulting increase in profits may stem not just from a decrease in costs, but from the indirect effects of the lower prices or higher level of 토토사이트 모멘트 on the customer's behavior.
The key to the analysis is the development of a model in which customers choose the depth of their relationship with the company based on their satisfaction level. While companies are wont to tout deep, personalized relationships with subscribers, these types of relationships actually increase the tension on the capacity-constrained 토토사이트 모멘트 delivery model. Thus, when a satisfied customer chooses to pursue a deeper relationship, adopting more and more 토토사이트 모멘트s, the 토토사이트 모멘트 provider is forced to either lower 토토사이트 모멘트 quality or invest in capacity to meet the subscriber's needs.
Interestingly, the authors argue that higher usage intrinsically leads to a higher number of 토토사이트 모멘트 failures, thereby eroding a company's future profits. In addition, increased use of a 토토사이트 모멘트 facility can lead to a decrease in supplier responsiveness and 토토사이트 모멘트 quality or higher costs in the form of further investments to prevent such failures.
The analysis thus provides managers with insight into how to tweak quality 토토사이트 모멘트 levels while maximizing the value of their customer base and ultimately pursuing higher profits.
An increase in quality or a decrease in price will make 토토사이트 모멘트s more valuable to customers, but the effects of these policies on the long-term financial performance of a firm are not easily determined.
"A decrease in the number of 토토사이트 모멘트s does not always lead to lower profits," the authors write. "The number of 토토사이트 모멘트s that a company has can actually be a remarkably poor indicator of the value of the 토토사이트 모멘트 base."
Given the tangled relationship among all the variables, it is possible that managers may see their profits drop while their 토토사이트 모멘트 base is growing, and vice versa. The authors recommend actions that managers can take to achieve optimality between pricing and quality.
The key variable is the type of relationship a customer has with the 토토사이트 모멘트 provider, which is based on each person's perception of 토토사이트 모멘트 quality. The authors remind managers that they must take care of their 토토사이트 모멘트-quality levels in order to differentiate their 토토사이트 모멘트 offerings.
This study shows managers how devising and implementing pricing and quality level policies can be mathematically modeled and tested. And such methodologies can be applied to test optimality in other fields, such as marketing spending in relation to new subscription rates. The authors are currently testing the results of their paper in situations where 토토사이트 모멘트s interact with the firm through multiple channels.
15,000개의 아티클을 제대로 즐기는 방법
가입하면, 한 달 무료!
걱정마세요. 언제든 해지 가능합니다.
토토사이트 토토사이트 토토사이트 가입하면하면면한 금융시장, 생각부터 바꿔라 | 토토사이트 토토사이트 토토사이트 가입하면하면면리포트 | 토토사이트 토토사이트 토토사이트 가입하면하면면
토토사이트 마블 글로벌리포트 | DBR
SHOULD 토토 사이트 바카라 NEGOTIATE WITH BULLIES? | 글로벌리포트 | 토토 사이트 바카라
인기기사
회원 가입만 해도, 토토사이트 모멘트 월정액 서비스 첫 달 무료!
15,000여 건의 토토사이트 모멘트 콘텐츠를 무제한으로 이용하세요.