Measurement of consumer preferences for bucket pricing plans with different service attributes

Schlereth, Christian; Skiera, Bernd

doi:10.1016/j.ijresmar.2011.08.004

Cited by 42 publications

(34 citation statements)

References 46 publications

(89 reference statements)

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“…The present model merely considers the rational choice of a risk-neutral consumer. However, our empirical results suggest that the rational tariff choice is systematically biased, e.g., due the above-mentioned insurance effect (Lambrecht and Skiera 2006), the flexibility effect (Krämer and Wiewiorra 2012), the overestimation effect (Nunes 2000), or brand effects (Schlereth and Skiera 2012). The detailed empirical investigation of the extent of a bias for cost cap tariffs, in particular, in relation to the well-known flat rate bias, therefore, seems to be a fruitful avenue for future research.…”

Section: Discussionmentioning

confidence: 76%

“…Yet, there has been an increase in empirical research (Danaher 2002;Schulze et al 2005;Iyengar et al 2008;Lambrecht et al 2007;Schlereth and Skiera 2012) within the last decade. An important aspect of modeling of consumer behavior under different tariffs is the literature on discrete/continuous choice models (Dubin and McFadden 1984;Hanemann 1984).…”

Section: Related Literaturementioning

confidence: 99%

“…Thereby, both papers propose a similar consumer surplus model with the intention in mind to explain observed tariff choice by estimating the models' underlying parameters. Schlereth and Skiera (2012) demonstrated that such models can be also used to predict tariff choice of innovative tariffs. The predictions of these models are, therefore, the result of a choice model that has been calibrated by actual tariff decisions, including consumers' biases and irrationalities.…”

Section: Related Literaturementioning

confidence: 99%

“…Like Iyengar et al (2008), Lambrecht et al (2007) and Schlereth and Skiera (2012), we assume a quadratic functional form for the consumer's surplus function as follows…”

Section: Tariff Choice and Consumption Under Certaintymentioning

confidence: 99%

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Optimal choice and consumption of cost cap tariffs: theory and empirical evidence

Köhler

Krämer

Krüger

2014

Bus Res

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Cost cap tariffs are pay-per-use tariffs for which costs cannot exceed a predefined cost limit. They were recently introduced to telecommunications markets, but were previously also applied in the insurance industry as deductibles or in the rental industry as day rates. This paper develops and empirically validates a consumer surplus model that explains the optimal consumption pattern under cost cap tariffs and the conditions under which cost cap tariffs are chosen over pure pay-per-use and flat rate tariffs by a rational consumer. We find that cost cap tariffs are an optimal tariff choice only if the level of uncertainty is sufficiently high. Our theoretical predictions are supported by survey data.

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Section: Discussionmentioning

confidence: 76%

Section: Related Literaturementioning

confidence: 99%

Section: Related Literaturementioning

confidence: 99%

“…Like Iyengar et al (2008), Lambrecht et al (2007) and Schlereth and Skiera (2012), we assume a quadratic functional form for the consumer's surplus function as follows…”

Section: Tariff Choice and Consumption Under Certaintymentioning

confidence: 99%

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Optimal choice and consumption of cost cap tariffs: theory and empirical evidence

Köhler

Krämer

Krüger

2014

Bus Res

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“…With these services, customers 'pay for the privilege to access a facility but do not acquire any right to, or 'use up', the facility itself' (Essegaier et al, 2002, p. 139). Popular pricing schemes that firms in access industries use include subscription programs (Choudhary, 2007;Zhang and Seidmann, 2010), bucket pricing (Baron et al, 2005;Schlereth and Skiera, 2012) and multi-part tariffs ( Jensen, 2006;Lambrecht et al, 2007). Especially linear tariffs and multi-part tariffs capture customers' intensityof-use.…”

Section: Characteristics Of Posted-price and Usage-based Pricing Schementioning

confidence: 99%

Consequences of usage-based pricing in industrial markets

Stoppel

Roth

2015

J Revenue Pricing Manag

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In industrial sales providers often neglect the potential for revenues in the customer's usage processes after the actual transaction. However, innovative providers tend to shift revenues to the usage phase by setting prices according to actual service usage. In this article, we discuss the consequences of usagebased pricing in a twofold manner: First, we point out the potentials of usage-based pricing. Here, we show the additional value proposition when usage-based costs and risks are shifted from customers to providers as well as the opportunities and challenges of adopting that pricing scheme. Second, we analyze the profit impact of a usage-based pricing scheme in comparison with posted-price selling. The findings show that usage-based pricing can help discriminate customers by their usage intensity. With low usage-independent costs, usagebased pricing is more profitable than posted-price selling, even though providers must cover usage-based costs with that pricing scheme. With high usage-independent costs, providers should consider a minimum usage level or improve their advantage over customers in terms of usage-based costs.

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q ‐Rung orthopair fuzzy Choquet integral aggregation and its application in heterogeneous multicriteria two‐sided matching decision making

2019

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In the real decision making, q‐rung orthopair fuzzy sets ( q‐ROFSs) as a novel effective tool can depict and handle uncertain information in a broader perspective. Considering the interrelationships among the criteria, this paper extends Choquet integral to the q‐rung orthopair fuzzy environment and further investigates its application in multicriteria two‐sided matching decision making. To determine the fuzzy measures used in Choquet integral, we first define a pair of q‐rung orthopair fuzzy entropy and cross‐entropy. Then, by utilizing λ‐fuzzy measure theory, we propose an entropy‐based method to calculate the fuzzy measures upon criteria. Furthermore, we discuss q‐rung orthopair fuzzy Choquet integral operator and its properties. Thus, with the aid of q‐rung orthopair fuzzy Choquet integral, we consider the preference heterogeneity of the matching subjects and further explore the corresponding generalized model and approach for the two‐sided matching. Finally, a simulated example of loan market matching is given to illustrate the validity and applicability of our proposed approach.

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Measurement of consumer preferences for bucket pricing plans with different service attributes

Cited by 42 publications

References 46 publications

Optimal choice and consumption of cost cap tariffs: theory and empirical evidence

Optimal choice and consumption of cost cap tariffs: theory and empirical evidence

Consequences of usage-based pricing in industrial markets

q ‐Rung orthopair fuzzy Choquet integral aggregation and its application in heterogeneous multicriteria two‐sided matching decision making

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