A Model of Consumer Learning for Service Quality and Usage

Abstract

This article is based on the first author's doctoral dissertation at Columbia University. The two coauthors are his dissertation advisors. The authors thank the other dissertation committee members (Kamel Jedidi, Yuxin Chen, and K. Sudhir) for their extensive comments and suggestions. The first author thanks Z. John Zhang for insightful discussions. The authors also thank Carl Mela and the Teradata Center at Duke University for providing the data. Finally, the authors thank the Marketing Science Institute for providing financial support for this project.

Optimal Three-Part Tariff Plans

“…They used conjoint data to estimate the model parameters, and then used a grid search to compute the optimal plans numerically. Iyengar Ansari, and Gupta (2007) analyzed data from a single wireless service provider. They developed a model for plan choice and consumption that incorporates consumers' usage uncertainty and consumers' learning for service quality and usage.…”

Cellular Service Demand: Biased Beliefs, Learning, and Bill Shock

“…A final alternative assumes that consumers choose a target quantity that is implemented with an exogenous error (Iyengar et al 2007, Jiang 2012. For comparison, our model of consumer choice can be reinterpreted as choice of a target quantity implemented with an endogenous error.…”

A review of the customer lifetime value as a customer profitability measure in the context of customer relationship management

“…Knowledge about customers is actually the basis of the CRM approach and it is essential for correct customer segmentation and customer treatment consequently reducing the risk to do business with loss making customers. Better resource allocation and increased market intelligence also result from customer learning (Iyengar et al, 2007). The quantification of nonfinancial effects is needed in order to make them comparable to financial measures.…”

“…Further, through the learning process resources can be allocated in a more adequate way attributing fixed costs of specific products or services more precisely. Iyengar et al (2007) investigated consumer learning for service quality and usage in wireless service. They found that consumer learning can result in a win-win situation for both customers and the company due to less minutes spent by the customers and an increase of 35% of the overall CLV.…”

“…Iyengar et al (2007) found the level of quality of service encounters to provide a strong signal for the overall service quality in wireless services. Therefore, customers' needs can be The successful utilization of the learning potential depends mainly on the ability to establish relationships with customers and to motivate them to share their specific knowledge.…”