Managing your customer's tariff choice: what to do when your customers pay too much
- Telecommunications companies traditionally offer several tariffs from which their customers can choose the tariff that best suits their preferences. Yet, customers sometimes make choices that are not optimal for them because they do not minimize their bill for a certain usage amount. We show in this paper that companies should be very concerned about choices in which customers pick tariffs that are too small for them because they lead to a significant increase in customers churn. In contrast, this is not the case if customers choose tariffs that are too big for them. The reason is that in particular flat-rates provide customers with the additional benefit that they guarantee a constant bill amount that consumption can be enjoyed more freely because all costs are already accounted for.
| Author: | Anja Lambrecht, Bernd SkieraORCiDGND |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-417153 |
| DOI: | https://doi.org/DOI: 10.2478/gfkmir-2014-0081 |
| ISSN: | 1865-5866 |
| Parent Title (German): | GfK Marketing Intelligence Review |
| Publisher: | GfK Nürnberg, Gesellschaft für Konsum-, Markt- und Absatzforschung |
| Place of publication: | Nürnberg |
| Document Type: | Article |
| Language: | English |
| Date of Publication (online): | 2016/10/21 |
| Year of first Publication: | 2014 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2016/10/21 |
| Tag: | consumer behavior; pricing; tariffs; telecommunication |
| Volume: | 1 |
| Page Number: | 8 |
| First Page: | 16 |
| Last Page: | 23 |
| Note: | © 2014. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License. (CC BY-NC-ND 3.0) |
| HeBIS-PPN: | 400351900 |
| Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Creative Commons - Namensnennung-Nicht kommerziell-Keine Bearbeitung 3.0 |
