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결합할인으로 인한 소비자 전환비용 연구(A study on switching cost induced by discount on bundled products) : 신용카드 부가서비스 사례를 포함하여(Including rewards programs by credit cards)
| Title |
결합할인으로 인한 소비자 전환비용 연구(A study on switching cost induced by discount on bundled products)
Similar Titles
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| Sub Title | 신용카드 부가서비스 사례를 포함하여(Including rewards programs by credit cards) |
| Material Type | Report |
| Author(Korean) |
조성익 |
| Publisher |
서울 : 한국개발연구원 |
| Date | 2013 |
| Series Title; No | 정책연구시리즈 / 2013-07 |
| ISBN | 978-89-8063-792-8(93320) |
| Pages | 114 |
| Subject Country | South Korea(Asia and Pacific) |
| Language | Korean |
| File Type | Documents |
| Original Format | |
| Subject | Economy < Financial Policy |
| Holding | 한국개발연구원; KDI 국제정책대학원 |
| License |  |
Abstract
When a consumer switching cost is not negligible, firms may consider the possibility that consumers could be captured and locked-in later. Then they often want to lure consumers using special marketing strategies such as mileage programs and/or special deals on new arrivals. The rewards program by credit cards can be understood in the same vein, since it sometimes costly for consumers from one credit card to another. This work studies credit card companies’ optimal choice of duration when the reward program is maintained, and shows that the minimum duration regulation by the regulation authorities might be rather harmful for consumers. Due to the regulation, the firms are able to attract more consumers, especially the ones who were not buying since they believed the reward program would be terminated soon enough. Given the newly increased demand, however, firms have more incentives to reduce the length when the reward program is maintained.
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