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Personalized pricing for customer retention: Theory and evidence from mobile communication
Telecommunications Policy ( IF 5.6 ) Pub Date : 2021-02-01 , DOI: 10.1016/j.telpol.2020.102069
Giovanna Capponi , Nicoletta Corrocher , Lorenzo Zirulia

Abstract This paper analyzes firms' strategies that aim at retaining customers and examines consumers' characteristics that make them ideal targets for companies’ loyalty programs. Our contribution is both theoretical and empirical. On the theoretical side, we develop a formal economic model to study the incentives of firms to offer personalized pricing plans, when consumers are at risk of leaving and are heterogeneous in service usage. On the empirical side, relying on an original dataset of customers of one of the top mobile network operators in the Italian market, we find evidence of an inverted-U relationship between the usage intensity and the probability of being the target of a personalized offer, which is consistent with the theoretical prediction. In addition, we find that anti-churn campaigns have a positive effect on customer retention.

中文翻译:

客户保留的个性化定价:来自移动通信的理论和证据

摘要 本文分析了公司旨在留住客户的战略,并考察了使他们成为公司忠诚度计划理想目标的消费者特征。我们的贡献是理论的和经验的。在理论方面,我们开发了一个正式的经济模型来研究当消费者有离开的风险并且服务使用存在差异时,公司提供个性化定价计划的动机。在实证方面,依靠意大利市场顶级移动网络运营商之一的客户原始数据集,我们发现使用强度与成为个性化报价目标的概率之间存在倒 U 关系的证据,与理论预测一致。此外,
更新日期:2021-02-01
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