Customer loyalty and supplier quality competition

被引:108
作者
Gans, N [1 ]
机构
[1] Univ Penn, Wharton Sch, OPIM Dept, Philadelphia, PA 19104 USA
关键词
customer loyalty; quality competition; Bayesian bandit;
D O I
10.1287/mnsc.48.2.207.256
中图分类号
C93 [管理学];
学科分类号
12 ; 1201 ; 1202 ; 120202 ;
摘要
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.
引用
收藏
页码:207 / 221
页数:15
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