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Two concepts of brand loyalty are defined, “inertial” brand loyalty resulting from time lags in awareness, and “cost-based” brand loyalty resulting from intertemporal utility effects. Their market level implications are formally derived in a continuous time model. It is found that...
Persistent link: https://www.econbiz.de/10008787735
. One would expect these ISAs to subject sellers to intense price competition that results in uniform low prices. Yet … examine the impact of ISAs on market competition. An ISA creates differentiation in the pricing strategies of ex …
Persistent link: https://www.econbiz.de/10008787739
consumers to pay for such a product, but also has a negative strategic effect by increasing price competition between brands …
Persistent link: https://www.econbiz.de/10008787758
a seemingly suboptimal practice. Our analysis shows that reward programs weaken price competition. By offering the …, firms are able to commit to weaker competition and, therefore, higher prices. When the heavy-user segment is large or not … light users are very price sensitive, firms engage in intense price competition, thus benefiting little from the loyalty of …
Persistent link: https://www.econbiz.de/10008787783
trace the latter result to competition and to free-riding on the information provision. Specifically, in a monopoly market …
Persistent link: https://www.econbiz.de/10008787785
We consider two broad categories of incentives by which a manufacturer can motivate its retailers to provide high customer satisfaction: (1) manufacturer assistance that reduces the retailer's cost of providing customer satisfaction (CS assistance); and (2) customer satisfaction index (CSI)...
Persistent link: https://www.econbiz.de/10008787808
When an improvable durable good (such as packaged software) saturates the market, the seller could be tempted to release new versions too frequently, hurting her profit. A novel contractual device, which I term as a Free New Version Rights warranty (free NVR warranty), can help the seller...
Persistent link: https://www.econbiz.de/10008787809
The paper provides a formal rationale for the common practice of using sales assistance. The argument is made in a model where a consumer's situation determines his needs. The products are differentiated and the map identifying the best match between a consumer's situation and a product is known...
Persistent link: https://www.econbiz.de/10008787815
supermarkets adopting it in competition with Promotional Pricing (PROMO). Conventional wisdom attributes this success either to … generally, the retailing issues addressed in this paper, the economic analysis of competition, and the empirical findings should …'s success by analyzing the competition between supermarkets through a game theoretic analysis of a market consisting of both …
Persistent link: https://www.econbiz.de/10008787873
competition for such customers tends to erode the effects of higher CRM efforts of an individual firm. When firms develop a … developments may not always be desirable, because sometimes these future benefits may lead to more intense competition and hence …
Persistent link: https://www.econbiz.de/10008787891