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Original title:
Trends in the Behavioral Sources of Customer Profitability and the Role of Flat-Rate Pricing
Translated title:
Trends in der Entwicklung von Kundenprofitabilität und die Rolle von Flat-rate Pricing
Author:
Frank, Felix
Year:
2012
Document type:
Dissertation
Faculty/School:
Fakultät für Wirtschaftswissenschaften
Advisor:
von Wangenheim, Florian (Prof. Dr.)
Referee:
von Wangenheim, Florian (Prof. Dr.); Friedl, Gunther (Prof. Dr.)
Language:
en
Subject group:
WIR Wirtschaftswissenschaften
Keywords:
relationship marketing, customer profitability, flat-rate bias
Translated keywords:
Beziehungsmarketing, Kundenprofitabilität, Flat-Rate Bias
TUM classification:
WIR 837d
Abstract:
One of the most fundamental considerations in relationship marketing concerns the trend in customer profitability over the course of the relationship. The prevailing tenet is that customers become more profitable over time. Focusing on the behavioral sources of profitability, the present work reviews this notion in an empirical analysis based on six customer datasets in consumer markets over a multiyear period. In contrast to the prevailing belief, churn rates are found to increase and customer activity and spending is found to attenuate over time.

In a subsequent step, this work examines the viability of flat-rate tariffs as a strategy to counter this decreasing trend. At first glance, firms seem to benefit from constant revenues. However, the decreasing trend further adds to the phenomenon of flat-rate bias. A survival analysis of transactional data from an ISP context shows that the expected lifetime decreases with every overspend Euro by about one percent. The results of an experimental study furthermore indicate that these consequences are moderated by the competitive position of the provider.
Translated abstract:
Eine der wichtigsten Überlegungen im Relationship Marketing betrifft den Trend in der Entwicklung von Kundenprofitabilität im Verlauf der Kundenbeziehung. Die vorherrschende Meinung ist, dass Kunden profitabler werden. Die vorliegende Arbeit überprüft diese Ansicht empirisch auf Basis von sechs Kundendatensätzen aus B2C Märkten. Anders als bislang angenommen, wird gezeigt, dass Churn Raten steigen und Kundenaktivität und -ausgaben mit der Zeit sinken.

In einem zweiten Schritt wird die Eignung...     »
WWW:
https://mediatum.ub.tum.de/?id=1097738
Date of submission:
06.03.2012
Oral examination:
16.08.2012
File size:
1550027 bytes
Pages:
221
Urn (citeable URL):
https://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:bvb:91-diss-20120815-1097738-0-8
Last change:
24.04.2013
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