TY - JOUR A1 - Lambrecht, Anja A1 - Skiera, Bernd T1 - Managing your customer's tariff choice: what to do when your customers pay too much T2 - GfK Marketing Intelligence Review N2 - 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. KW - tariffs KW - pricing KW - consumer behavior KW - telecommunication Y1 - 2016 UR - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/41715 UR - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-417153 SN - 1865-5866 N1 - © 2014. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License. (CC BY-NC-ND 3.0) VL - 1 SP - 16 EP - 23 PB - GfK Nürnberg, Gesellschaft für Konsum-, Markt- und Absatzforschung CY - Nürnberg ER -