The “Commitment Projection” Effect: When Multiple Payments for a Product Affect Defection from a Service

2019 ◽  
Vol 56 (5) ◽  
pp. 842-861
Author(s):  
Irit Nitzan ◽  
Danit Ein-Gar

Many service providers offer supplementary products related to their ongoing services (e.g., fitness centers offer fitness smartwatches). In seven studies, the authors show that the payment method for such supplementary products (multiple payments vs. a single lump sum) affects customers’ tendency to defect from the provider’s core service over time. Specifically, when customers pay for add-ons in multiple payments—provided that (1) they perceive the add-on as being bundled with the core service and (2) the payment period has an end point—they are initially less likely to defect from the service provider than when they pay in a single payment. Over time, however, as payments are made, this gap closes, such that defection intentions under the two payment methods eventually become similar. The authors propose that this phenomenon reflects “commitment projection,” wherein a decrease in customers’ commitment to the add-on product over time is projected onto their commitment to the service provider. These findings carry important managerial implications, given that many service providers offer add-on products in multiple-payment plans and that customers’ defection decisions substantially affect firms’ profitability.

2021 ◽  
Vol 75 (4) ◽  
pp. 476-490
Author(s):  
Dominik Remling

This study systematically profiles the International Manufacturing Network research literature on the topic of Performance Management and provides a research framework addressing the core debated topics. The findings reveal that the main barriers are the heterogeneity of manufacturing sites, the implementation, and the gap between site- and network-level. The main success factors are the inclusion of diverse types of metrics for a wide range of areas, following guidelines for the implementation, engaging skilled employees, and continuously adapting the system over time. Along-side the identification of the core debated topics, a research agenda is proposed and managerial implications are highlighted.


Author(s):  
Melvin A. Eisenberg

Chapter 15 concerns formulas for measuring expectation damages for contracts to provide services, including breaches by both service-purchasers and service-providers. In case of breach by service-purchasers one formula is based on the service-provider’s lost profit. Under an alternative formula the service-provider is entitled to the contract price minus the out-of-pocket costs remaining to be incurred by the service-provider at the time of breach. Although these two expressions look very different they are algebraically equivalent and yield the same amount of damages. In case of breach by the service-provider the core formulas for measuring damage to the service-purchaser involve either cost-of-completion or diminished-value damages.


2021 ◽  
Vol 13 (9) ◽  
pp. 4740
Author(s):  
Ka Leung Lok ◽  
Albert So ◽  
Alex Opoku ◽  
Charles Chen

The Contingency Outsourcing Relationship (CORE) model originated from the Four Outsourcing Relationship Types (FORT) model; the CORE model is used in the globalized Facility Management (FM) industry, while the FORT model is originally used in the global information technology industry. The purpose of this paper is to thoroughly analyse the simulated case studies of the four different categories (i.e., in-house, technical expertise, commitment and common goals) of the CORE model from the perspective of the various clients. This study builds on the previous work on the outsourcing relationships between a client and a globalized FM service provider. It further explores the application of this model with the aid of artificial neural networks (ANNs) towards a sustainable future. A quantitative methodology through a survey is used to analyse eight outsourcing strategies for the four outsourcing relationships. A set of revised rules of the CORE is introduced and discussed regarding the approaches to investigate the four simulated outsourcing relationship systems. The study further reveals that an interesting understanding of the four outsourcing categories can be systematically and efficiently implemented into the FM outsourcing relationships through the methodology of scientific Artificial Intelligence (AI). It is concluded that FM outsourcing categorization may help to define the appropriate relationships. This further detailed outcome generated from the ANN can be clearly considered a strong and solid reference to define and explain the existing outsourcing relationships between the stakeholders and the service providers with the aim to assign an outsourcing category to the FM relationship between the client and service provider based on the learnt rules.


Author(s):  
Dohoon Kim

The enterprise intelligence through e-transformation is one of the cornerstones of the next-generation e-business era where the Internet constitutes the core business resource. Furthermore, the severe competitive landscape of e-business makes firms focus on their core capability and farm out staffing functions such as IT. Under this circumstance, enhancing intelligence and synergy through e-transformation will be accomplished by IT outsourcing via ASPs (application service providers). The ASP industry now provides an essential infrastructure for the Internet-based e-business transactions, thereby accelerating corporate e-transformation.


2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ka Leung Lok ◽  
Albert So ◽  
Alex Opoku ◽  
Haiyu Song

Purpose The Contingency Outsourcing Relationship (CORE) model originated from the Four Outsourcing Relationship Types (FORT) model and the CORE model is used in the globalized facility management (FM) industry while the FORT model is originally used in the global information technology industry. The purpose of this paper is to analyze the CORE model through the rankings of relationship between a client and a globalized FM service provider from the perspective of the FM service provider in one of the four categories (i.e. in-house, technical expertise, commitment and common goals) and the application of this model with the aid of artificial neural networks (ANNs). Design/methodology/approach A quantitative methodology using a survey is used to analyze the four types of outsourcing categories. First, the background theory and a set of rules of the CORE is introduced and discussed regarding the proper ways to identify the rankings collected from the survey. Findings The study reveals that an interesting understanding of the outsourcing categories can be systematically implemented into the FM outsourcing relationships through the methodology of scientific artificial intelligence. FM outsourcing categorization may help to define the appropriate relationship; as either not too aggressive or too passive. Originality/value The outcome generated from the ANN can be considered a strong and solid reference to assess and define the existing outsourcing relationships between the stakeholders and the service providers with the goal to assign an outsourcing category to the service provider based on the learnt rules.


2015 ◽  
Vol 8 (1) ◽  
Author(s):  
Swati Ganeti ◽  
Rajat Agarwal ◽  
Murali Krishna Medudula ◽  
Mahim Sagar

Telecom industry is one of those industries which has changed dramatically during the past decade. With more and more players entering in this industry, competition is ever increasing. The war between these players is slowly shifting from the price to the augmentation. This paper aims at exploring such factors which influence a customers preference of one telecom service provider (TSP) over the other. It is a descriptive research where study has been conducted among the consumers of different telecom service providers (TSPs). By reviewing the existing literature in this domain, we explored different factors which affect the consumers decision to prefer one telecom service provider over the other. A consumer targeted questionnaire was designed where consumers were asked about the factors they consider (with their relative importance quantified using Likert scale), before buying a new network connection to know the relative importance of the various factors. Factor Analysis was performed to club various variables into distinct factors. Statistical techniques then helped in identifying the relative importance. From the Factor Loading matrix the following five factors were generated:- Overall service quality, Point of Purchase Differentiator, Promotion Measures, Tariff Plans and Size of the Network. Further study in the behavioural perceptions of consumer shows that the most important factor in influencing the customer buying behavior is Service Quality. The second most important factor is cost and various plans offered by the telecom service provider. Network connectivity was considered by almost all the respondents and consumers prefer the largest network player. The study also found that promotional measures dont influence the customers as expected.


2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Claire Chabut ◽  
Jean-François Bussières

Abstract Objectives Several societies have published guidelines to limit the occupational exposure of workers. Several of these guidelines recommend periodic (once or twice a year) environmental monitoring of specific sites where antineoplastic drugs are prepared and administered. However, most of the guidelines provide no guidance concerning which antineoplastic drugs should be monitored, the preferred sampling sites, appropriate test methods or limits of detection. The aim of this study was to characterize providers that quantify antineoplastic drug measured on surfaces. Methods This was a cross-sectional descriptive study. To identify service providers offering environmental monitoring tests, we searched the PubMed database and used the Google search engine. We contacted each service provider by email between June 3rd and June 15th, 2020. We specified the objective of our study and described the information needed and the variables of interest with standardized questions. Additional questions were sent by emails or via teleconferences. No statistical analyses were performed. Results We identified six providers offering services to Canadian hospitals, either based in Canada or in the United States. Five of these providers were private companies and one was a public organization. Each service provider was able to measure trace contamination of 3–17 antineoplastic drugs. Five of the providers quantified drugs using ultra performance liquid chromatography coupled with tandem mass spectrometry (UPLC-MSMS), which allowed for lower LODs. The sixth provider offered quantification by immunoassay, which has higher LODs, but offers near real-time results; the surface area to be sampled with this method was also smaller than with UPLC-MSMS. The services offered varied among the service providers. The information about LODs supplied by each provider was often insufficient and the units were not standardized. A cost per drug quantified could not be obtained, because of variability in the scenarios involved (e.g. drug selection to be quantified, number of samples, nondisclosure of ancillary costs). Four of the six service providers were unable to report LOQ values. Conclusions Few data are available from Canadian service providers concerning the characteristics of wipe sampling methods for antineoplastics. This study identified six north-American providers. Their characteristics were very heterogeneous. Criteria to consider when choosing a provider include the validation of their analytical method, a low limit of detection, the choice of drugs to be quantified and the sites to be sampled, obtaining details about the method and understanding its limits, and price. This should be part of a structured multidisciplinary approach in each center.


2021 ◽  
pp. 1-22
Author(s):  
Qiang Zha

Abstract This paper examines several research questions relating to equality and equity in Chinese higher education via an extended literature review, which in turn sheds light on evolving scholarly explorations into this theme. First, in the post-massification era, has the Chinese situation of equality and equity in higher education improved or deteriorated since the late 1990s? Second, what are the core issues with respect to equality and equity in Chinese higher education? Third, how have those core issues evolved or changed over time and what does the evolution indicate and entail? Methodologically, this paper uses a bibliometric analysis to detect the topical hotspots in scholarly literature and their changes over time. The study then investigates each of those topical terrains against their temporal contexts in order to gain insights into the core issues.


2013 ◽  
Vol 18 (2) ◽  
pp. 130-144 ◽  
Author(s):  
KEES DE BOT ◽  
CAROL JAENSCH

While research on third language (L3) and multilingualism has recently shown remarkable growth, the fundamental question of what makes trilingualism special compared to bilingualism, and indeed monolingualism, continues to be evaded. In this contribution we consider whether there is such a thing as a true monolingual, and if there is a difference between dialects, styles, registers and languages. While linguistic and psycholinguistic studies suggest differences in the processing of a third, compared to the first or second language, neurolinguistic research has shown that generally the same areas of the brain are activated during language use in proficient multilinguals. It is concluded that while from traditional linguistic and psycholinguistic perspectives there are grounds to differentiate monolingual, bilingual and multilingual processing, a more dynamic perspective on language processing in which development over time is the core issue, leads to a questioning of the notion of languages as separate entities in the brain.


2020 ◽  
Vol 11 (1) ◽  
pp. 91
Author(s):  
Xiaoyu Ma ◽  
Jihong Zhang ◽  
Yuan Cao ◽  
Zhou He ◽  
Jonas Nebel

Rapidly increasing mobile data traffic have placed a significant burden on mobile Internet networks. Due to limited network capacity, a mobile network is congested when it handles too much data traffic simultaneously. In turn, some customers leave the network, which induces a revenue loss for the mobile service provider. To manage demand and maximize revenue, we propose a dynamic plan control method for the mobile service providers under connection-speed-restriction pricing. This method allows the mobile service provider to dynamically set the data plans’ availability for potential customers’ new subscriptions. With dynamic plan control, the service provider can adjust data network utilization and achieve high customer satisfaction and a low churn rate, which reflect high service supply chain performance. To find the optimal control policy, we transform the high-dimensional dynamic programming problem into an equivalent mixed integer linear programming problem. We find that dynamic plan control is an effective tool for managing demand and increasing revenue in the long term. Numerical evaluation with a large European mobile service provider further supports our conclusion. Furthermore, when network capacity or potential customers’ willingness to join the network changes, the dynamic plan control method generates robust revenue for the service provider.


Sign in / Sign up

Export Citation Format

Share Document