Dynamic competition for customer memberships

IF 1.2 4区 管理学 Q3 ECONOMICS Journal of Economics & Management Strategy Pub Date : 2024-08-12 DOI:10.1111/jems.12605
Cristian Chica, Julian Jimenez‐Cardenas, Jorge Tamayo
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Abstract

This paper analyzes a two‐period membership market with two symmetric firms charging a membership fee, allowing consumers to buy products or services at a given price. Firms can offer short‐term (ST) or long‐term (LT) memberships. When firms employ LT memberships, they have incentives to prevent their old customers from being poached by competitors and price‐discriminate them based on purchase behavior. Conversely, ST memberships lead to no unit price discrimination for old customers, but instead, they lead to membership fee discrimination, increasing the share of switchers. We find that, under general assumptions, ST memberships are offered in equilibrium. This result is robust to various extensions, including switching coupons or discounts, naive consumers, sunk costs, and asymmetric differentiation parameters. We find that firms are indifferent between ST and LT memberships only when the customer's switching coupon or discount is high relative to the transportation cost.
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客户会员资格的动态竞争
本文分析了一个两期会员制市场,其中有两家对称的公司收取会员费,允许消费者以给定的价格购买产品或服务。企业可以提供短期(ST)或长期(LT)会员资格。当企业采用 LT 会员制时,它们有动力防止老客户被竞争对手挖走,并根据购买行为对老客户进行价格歧视。相反,ST 会员制不会导致对老客户的单位价格歧视,反而会导致会员费歧视,增加转换者的比例。我们发现,在一般假设条件下,ST 会员资格是均衡提供的。这一结果对各种扩展都是稳健的,包括转换优惠券或折扣、幼稚消费者、沉没成本和非对称差异化参数。我们发现,只有当客户的转换优惠券或折扣相对于运输成本较高时,企业才会对 ST 和 LT 会员资格漠不关心。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
3.20
自引率
5.30%
发文量
43
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