Name
Abstract | ||
|---|---|---|
We develop a model of customer choice in response to random variation in quality. The choice model yields closed-form expressions which reflect the effect of competing suppliers' service quality on the long-run fraction of purchases a customer makes at the various competitors. We then use the expressions as the basis of simple normative models for suppliers seeking to maximize their long-run average profits. The results provide insight into the effect of switching behavior on the service levels offered by competing suppliers. |
Year | DOI | Venue |
|---|---|---|
2002 | 10.1287/mnsc.48.2.207.256 | Quality Engineering |
Keywords | Field | DocType |
long-run average profit,simple normative model,service quality,customer loyalty,various competitor,bayesian bandit,supplier quality competition,long-run fraction,quality competition,choice model yield,closed-form expression,customer choice,random variation,service level,marketing | Customer retention,Loyalty business model,Customer advocacy,Engineering,Relationship marketing,Marketing | Journal |
Volume | Issue | ISSN |
48.0 | 2.0 | 0025-1909 |
Citations | PageRank | References |
41 | 4.28 | 9 |
Authors | ||
1 | ||