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Author:Cans, N.
Title:Customer Loyalty and Supplier Quality Competition
Journal:Management Science
2002 : FEB, VOL. 48:2, p. 207-221
Index terms:CUSTOMERS
CUSTOMER RELATIONS
SUPPLIERS
SUPPLY
QUALITY
COMPETITION
Language:eng
Abstract:The author of the article develops 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. The author then uses 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. The paper also provides a substantial list of references on this subject.
SCIMA record nr: 236575
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