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    Survey evidence on customer markets

    Choudhary, A. and Karlsson, T. and Zoega, Gylfi (2009) Survey evidence on customer markets. Working Paper. Birkbeck College, University of London, London, UK.

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    Abstract

    This paper uses survey data from Iceland on 884 firms to test for the theory of customer markets proposed by Phelps and Winter (1970) and Okun (1981). The results provide support for the customer market theory in that managers agree that customers are valuable to firms – they rank them second only to employees – and they use various means of augmenting and retaining their customer base, such as advertising. Surprisingly, however, price setting appears not to be an important ploy for attracting and retaining customers. In this we confirm the earlier results of Lye and Sibly (1994) using Australian data. Instead, advertising and direct contact with customers are listed as significantly more important.

    Metadata

    Item Type: Monograph (Working Paper)
    Additional Information: BWPEF 0916
    Keyword(s) / Subject(s): Customer markets, counter-cyclical markups, survey evidence
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Economics, Mathematics and Statistics
    Research Centre: Applied Macroeconomics, Birkbeck Centre for
    Depositing User: Administrator
    Date Deposited: 09 Jul 2013 13:52
    Last Modified: 07 Dec 2016 14:54
    URI: http://eprints.bbk.ac.uk/id/eprint/7605

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