1 AIT Asian Institute of Technology

Managing unprofitable customers : a cross-cultural study on various disengagement options

AuthorNazifi, Amin
Call NumberAIT RSPR no.SM-09-10
Subject(s)Customer relations--Cross-cultural studies

NoteA research study submitted in partial fulfilment of the requirements for the degree of Master of Business Administration
PublisherAsian Institute of Technology
AbstractUnprofitable customers may account for one third of the total customer base. That’s why companies are now trying to identify their unprofitable customers and treat them accordingly. So CRM is no longer about making all customers happy, but rather treating them as they deserve it. These treatment ranges from offering loyalty programmes for retention of profitable customers to divestment (or disengagement) of unprofitable customers. Companies can achieve customers’ disengagement through different strategies. They can, for instance, adapt “cost escalation” which involves imposing additional costs on unwanted customers. Another strategy, “withdrawal”, aims at reducing intimacy of contact with undesirable customers. As opposed to these two indirect strategies, “fait accompli” is a direct strategy in which a company openly tells the customer that it wants to bring the relationship to an end. This study will compare different disengagement options across cultures to find out if disengagement strategy choice should vary across cultures. It will also try to find out if these divested customers would get involved in negative WOM and also to whether or not their perception of fairness towards divestment action would change when divestment is accompanied by a sound reason.
Year2009
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Beise-Zee, Rian;
Examination Committee(s)Dimmitt, Nicholas J.;Sununta Siengthai;
Scholarship Donor(s)Asian Institute of Technology Fellowship;
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 2009


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