When to "Fire" Customers: Customer Cost-Based Pricing

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Jiwoong Shin; K. Sudhir; Dae-Hee Yoon;
  • Journal: Management Science, volume 58, issue 5 5, pages 932-947
  • Identifiers: doi: 10.1287/mnsc.1110.1453
  • Subject: customer cost information, activity-based costing, behavior-based price discrimination, forward-looking customers, customer relationship management

The widespread adoption of activity-based costing enables firms to allocate common service costs to each customer, allowing for precise measurement of both the cost to serve a particular customer and the customer's profitability. In this paper, we investigate how pricin... View more
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