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Customer Retention in a Competitive Power Market: Analysis of a 'Double-Bounded Plus Follow-Ups' Questionnaire

Author

Listed:
  • Yongxin Cai
  • Iraj Deilami
  • Kenneth Train

Abstract

A model is developed and estimated that forecasts the share of an electric utility's customers who would switch to a competitor under various price discounts and service attributes (reliability, renewable power, energy conservation assistance, and customer service.) The method builds upon previous double-bounded dichotomous choice procedures, extended to account for the multi-attribute nature of electric power service.

Suggested Citation

  • Yongxin Cai & Iraj Deilami & Kenneth Train, 1998. "Customer Retention in a Competitive Power Market: Analysis of a 'Double-Bounded Plus Follow-Ups' Questionnaire," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 191-215.
    • Handle: RePEc:aen:journl:1998v19-02-a12
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    Cited by:

    1. César Alonso-Borrego & Antonio Romero-Medina, 2008. "Students’ Assessment of Higher Education in Spain," Working Papers 2008-31, FEDEA.
    2. Kai Hockerts, 2015. "A Cognitive Perspective on the Business Case for Corporate Sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 24(2), pages 102-122, February.
    3. Dahal, Keshav & Al-Arfaj, Khalid & Paudyal, Krishna, 2015. "Modelling generator maintenance scheduling costs in deregulated power markets," European Journal of Operational Research, Elsevier, vol. 240(2), pages 551-561.
    4. Madden, Gary & Savage, Scott J. & Coble-Neal, Grant, 1999. "Subscriber churn in the Australian ISP market," Information Economics and Policy, Elsevier, vol. 11(2), pages 195-207, July.
    5. Ndebele, Tom & Marsh, Dan & Scarpa, Riccardo, 2019. "Consumer switching in retail electricity markets: Is price all that matters?," Energy Economics, Elsevier, vol. 83(C), pages 88-103.
    6. Jeuland, M.A. & Bhojvaid, V. & Kar, A. & Lewis, J.J. & Patange, O. & Pattanayak, S.K. & Ramanathan, N. & Rehman, I.H. & Tan Soo, J.S. & Ramanathan, V., 2015. "Preferences for improved cook stoves: Evidence from rural villages in north India," Energy Economics, Elsevier, vol. 52(PB), pages 287-298.
    7. Irina Klytchnikova & Michael Lokshin, 2009. "Measuring Welfare Gains from Better Quality Infrastructure," Journal of Infrastructure Development, India Development Foundation, vol. 1(2), pages 87-109, December.
    8. Cabral, Luís & Gilbukh, Sonia, 2020. "Rational buyers search when prices increase," Journal of Economic Theory, Elsevier, vol. 187(C).
    9. Ndebele, Tom, 2020. "Assessing the potential for consumer-driven renewable energy development in deregulated electricity markets dominated by renewables," Energy Policy, Elsevier, vol. 136(C).
    10. repec:cte:werepe:we084823 is not listed on IDEAS
    11. Wüstenhagen, Rolf & Schleich, Joachim & Rennings, Klaus & Heinzle, Stefanie & Brohmann, Bettina, 2009. "What's Driving Sustainable Energy Consumption? A Survey of the Empirical Literature," ZEW Discussion Papers 09-013, ZEW - Leibniz Centre for European Economic Research.
    12. Asher A. Blass & Saul Lach & Charles F. Manski, 2010. "Using Elicited Choice Probabilities To Estimate Random Utility Models: Preferences For Electricity Reliability," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(2), pages 421-440, May.
    13. repec:cte:werepe:we1016 is not listed on IDEAS
    14. Tabi, Andrea & Hille, Stefanie Lena & Wüstenhagen, Rolf, 2014. "What makes people seal the green power deal? — Customer segmentation based on choice experiment in Germany," Ecological Economics, Elsevier, vol. 107(C), pages 206-215.
    15. Andrea Mezger & Pablo Cabanelas & Mª. Jesús López‐Miguens & Francesca Cabiddu & Klaus Rüdiger, 2020. "Sustainable development and consumption: The role of trust for switching towards green energy," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3598-3610, December.
    16. Amador, Francisco Javier & González, Rosa Marina & Ramos-Real, Francisco Javier, 2013. "Supplier choice and WTP for electricity attributes in an emerging market: The role of perceived past experience, environmental concern and energy saving behavior," Energy Economics, Elsevier, vol. 40(C), pages 953-966.
    17. Gans, Joshua S., 2000. "Network competition and consumer churn," Information Economics and Policy, Elsevier, vol. 12(2), pages 97-109, June.
    18. César Alonso-Borrego & Antonio Romero-Medina, 2016. "Wage Expectations for Higher Education Students in Spain," LABOUR, CEIS, vol. 30(1), pages 1-17, March.

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    JEL classification:

    • F0 - International Economics - - General

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