Incentive mechanism to control customer buy-down behaviour

Airlines have successfully practiced revenue management over the past four decades and enhanced their revenue. Most of the traditional models that are applied assume that customers buying a high-fare class ticket will not purchase a low-fare class ticket even if it is available. This is not a very realistic assumption and has led to revenue leakage due to customers exhibiting buy-down behaviour. This paper aims at devising a suitable incentive mechanism that would incite the customer to reveal his nature. This helps in reducing revenue leakage. We show that the proposed incentive mechanism is profitable to both the buyer and seller and hence ensures the buyers participation in the mechanism. Journal of the Operational Research Society (2011) 62, 1566-1573. doi:10.1057/jors.2010.57 Published online 11 August 2010

Provider-Customer Coalitional Games

Efficacy of commercial wireless networks can be substantially enhanced through large-scale cooperation among involved entities such as providers and customers. The success of such cooperation is contingent upon the design of judicious resource allocation strategies that ensure that the individuals' payoffs are commensurate to the resources they offer to the coalition. The resource allocation strategies depend on which entities are decision-makers and whether and how they share their aggregate payoffs. Initially, we consider the scenario where the providers are the only decision-makers and they do not share their payoffs. We formulate the resource allocation problem as a nontransferable payoff coalitional game and show that there exists a cooperation strategy that leaves no incentive for any subset of providers to split from the grand coalition, i.e., the core of the game is nonempty. To compute this cooperation strategy and the corresponding payoffs, we subsequently relate this game and its core to an exchange market setting and its equilibrium, which can be computed by several efficient algorithms. Next, we investigate cooperation when customers are also decision-makers and decide which provider to subscribe to based on whether there is cooperation. We formulate a coalitional game in this setting and show that it has a nonempty core. Finally, we extend the formulations and results to the cases where the payoffs are vectors and can be shared selectively.

Measuring the influence of customer-based store brand equity in the purchase intention

[EN] Store brands account for and important market share in the Spain and a further increase in expected in the next years due to the downturn. However, there is lack of research on store brand customer-based Brand Equity. This study attempts to propose an integrated model of Brand Equity in store or retailer brands, based on Aaker s well-known conceptual model. We propose a consumer-based model, including the main sources or dimensions of Brand Equity and considering the intention to purchase as a consequence. Based on a sample of 362 consumers and 5 store brands, structural equation modeling is used to test research hypotheses. The results obtained reveal that store brand awareness, loyalty along with store brand perceived quality have a significant influence on consumers intention to purchase store brands. Our study suggests that marketers and marketing managers from retailing companies should carefully consider the Brand Equity components when designing their brand strategies, and develop marketing activities in order to enhance their brands awareness.

An investigation of customer delight during product evaluation: Implications for the development of desirable products

This paper reports findings from three research methods used to study customer delight during product evaluation. The results are framed in terms of existing models, high-lighting inadequacies in the assumptions these models make. Implications for product development are proposed in the form of practical strategies for understanding and delighting customers. © IMechE 2007.

Foresight vehicle programme - Customer understanding processes in design

Customer feedback is normally fed into product design and engineering via quality surveys and therefore mainly comprises negative comments: complaints about things gone wrong. Whilst eradication of such problems will result in a feeling of satisfaction in existing customers, it will not instil the sense of delight required to attract conquest buyers. CUPID's aim is to conceive and evaluate ideas to stimulate product desirability through the provision of delightful features and execution. By definition, surprise and delight features cannot be foreseen, so we have to understand sensory appeal and, therefore, the "hidden" voice of the customer. Copyright © 2002 Society of Automotive Engineers, Inc.