Price has a direct and negative effect (Noone and Mount
(2008) on customers’ return intentions, regardless of
satisfaction with the service experience or reward programme
membership status. The proposition that customers may
switch services for price-related reasons implies a need
for careful management of pricing policies, especially
when firms charge higher-than-competitive prices or are
considering increasing rates, service charges or penalties. The
management should actively investigate the price sensitivity
of their various market segments. Armed with knowledge
of the price thresholds of customer segments, management
can incorporate consideration of the strategic implications
of price increases when making short-term pricing decisions
during high demand periods.
Venkatesan and Farris (2012) assessed how and why retailercustomized
coupon campaigns affect customer purchases.
Their conceptual model proposed effects on trip incidence
and revenues through the mere exposure to campaigns
(exposure effect) and the redemption of coupons (redemption
effect). They also proposed monetary savings of the coupons,
regularity of the campaigns, and coupon fit with customer
preferences as moderators. Analysis of data from a group of
regional grocery chains that were part of a quasi experiment
demonstrates that retailer-customized coupon campaigns
Price has a direct and negative effect (Noone and Mount
(2008) on customers’ return intentions, regardless of
satisfaction with the service experience or reward programme
membership status. The proposition that customers may
switch services for price-related reasons implies a need
for careful management of pricing policies, especially
when firms charge higher-than-competitive prices or are
considering increasing rates, service charges or penalties. The
management should actively investigate the price sensitivity
of their various market segments. Armed with knowledge
of the price thresholds of customer segments, management
can incorporate consideration of the strategic implications
of price increases when making short-term pricing decisions
during high demand periods.
Venkatesan and Farris (2012) assessed how and why retailercustomized
coupon campaigns affect customer purchases.
Their conceptual model proposed effects on trip incidence
and revenues through the mere exposure to campaigns
(exposure effect) and the redemption of coupons (redemption
effect). They also proposed monetary savings of the coupons,
regularity of the campaigns, and coupon fit with customer
preferences as moderators. Analysis of data from a group of
regional grocery chains that were part of a quasi experiment
demonstrates that retailer-customized coupon campaigns
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