IDEAS home Printed from https://ideas.repec.org/h/spr/oprchp/978-3-319-55702-1_3.html
   My bibliography  Save this book chapter

Integrated Segmentation of Supply and Demand with Service Differentiation

In: Operations Research Proceedings 2016

Author

Listed:
  • Benedikt Schulte

    (Würzburg University)

Abstract

The presented research addresses the integrated segmentation of supply and demand with service differentiation by means of service-level menus. To this end, it establishes a joint perspective on the market side—that is, prices and service levels—and the operations side—that is, the inventory management policy and the corresponding parameters. This joint perspective comprises analyzing when the introduction of a service-level menu increases profits over those of a single undifferentiated offering and how to design optimal service-level menus. Surprisingly, in many cases service differentiation does not increase profits significantly. One way to interpret this finding is that differentiating customers based on service levels alone is a weak differentiation lever only, that is, the price differences between offerings with differing service levels need to be small in order to prevent customers from switching to offerings with lower prices and service levels. Therefore, successful price differentiation requires service differentiations being supported by presence of additional conditions or measures (e.g., pricing restrictions or further differentiation levers). Indeed, it is possible to show that service differentiation can significantly increase profits if the company experiences pricing restrictions.

Suggested Citation

  • Benedikt Schulte, 2018. "Integrated Segmentation of Supply and Demand with Service Differentiation," Operations Research Proceedings, in: Andreas Fink & Armin Fügenschuh & Martin Josef Geiger (ed.), Operations Research Proceedings 2016, pages 17-22, Springer.
    • Handle: RePEc:spr:oprchp:978-3-319-55702-1_3
    DOI: 10.1007/978-3-319-55702-1_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:oprchp:978-3-319-55702-1_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.