Bad Customers Research Articles

Optimal ordering policies for a retailer who offers distinct trade credits to its good and bad credit customers

In practice, to reduce default risks, a retailer frequently offers its bad credit customers a partial trade credit, in which the retailer requests its customers to pay a portion of the purchase amount at the time of placing an order as a collateral deposit, and then grants a permissible delay on the rest of the purchase amount. By contrast, the retailer usually provides a full trade credit to its good credit customers without the collateral deposits. For generality, in this paper, I establish an economic order quantity (EOQ) model for a retailer who receives a full trade credit by its supplier, and offers either a partial or a full trade credit to its customers. The proposed model is in a general framework that includes numerous previous models as special cases. I then analyze the characteristics of the optimal solution, and provide an easy-to-use closed-form optimal solution. Finally, I use a real-world inventory problem to illustrate the proposed model and its optimal solution.

The impact of customers' perception of varying degrees of customer service on commitment and perceived relative attractiveness

PurposeThe study is motivated by business' mixed response to increasing demand for customer service, leaving the question as to its impact on performance open. The study is concerned with the impact of customers' perception of customer service (bad/good) on variables that are known to drive revenue, i.e. customer satisfaction, perceived relative attractiveness, and commitment.Design/methodology/approachData were collected through a survey among bank customers. Two groups were sampled: customers who have experienced good or bad customer service. The hypotheses were tested by applying structural equation modeling and running two group analysis using the PLS and LISREL softwares.FindingsCustomers that experience bad customer service do take into account the same variables in their evaluation as do customers that experience good customer service. They do however, put different weights on every factor in the evaluation process. Also the strength of the relationships between the variables seems to differ. Typically, analyses showed that customers experiencing bad customer service tend to consider more thoroughly all aspects of the service; the relationships between the variables were stronger and the explained variance of each construct higher, than in the group of customers experiencing good customer service. However, the paths are not different across the groups.Research limitations/implicationsThe paper has only tested the model and hypotheses in one industry. Future research should test the same model using different industries reflecting different customer involvement levels.Practical implicationsFrom this study, service managers can learn that investing in customer service in ongoing customer relations is “the right thing to do” as it is linked to customer equity through customers' commitment to the firm. Second, as customer service in such relationships drives perceived relative attractiveness, saving the bottom line by cutting back on the human side of the customer interaction, may harm the firm's competitive position in the marketplace.Originality/valueThe impact of customer service on key performance variables in ongoing relations has to the knowledge never been studied before.

Analysis of Defaulters' Behaviour Using Poisson-Mixture Approachs

Credit scoring is of major interest to financial institutions as a mean of controlling their capital allocation and increasing their profitability. Classical credit-scoring approaches are based on a ‘good’ or ‘bad’ basis, i.e. by classifying new applicants into one of the two possible categories based on a series of their characteristics. This strongly depends on the definition of good and bad customers. We adopt a different approach. Instead of trying to predict the class of a new applicant, we try to predict the number of defaults in the near future. Previous attempts toward this idea have used negative binomial regression models to fit the data. We fit finite Poisson mixtures treating the number of components unknown which have to be estimated from the data. Using covariates in all components, we reveal the impact of several demographic variates in creating the different groups of customers but we are able to predict for each customer the group to which he belongs, as well his expected number of defaults. This is of particular interest for financial purposes as it allows the estimation of the expected loss from each customer and thus the ability to create rules for providing the loan on a personal basis. This classification allows the means to determine the optimal interest rate to maximize bank profit under asymmetrical information. This paper uses real data and compares various models focusing on the finite Poisson mixture regression models.

Analysis of defaulters' behaviour using the Poisson-mixture approach

Credit scoring is of major interest to financial institutions as a mean of controlling their capital allocation and increasing their profitability. Classical credit-scoring approaches are based on a ‘good’ or ‘bad’ basis, i.e. by classifying new applicants into one of the two possible categories based on a series of their characteristics. This strongly depends on the definition of good and bad customers. We adopt a different approach. Instead of trying to predict the class of a new applicant, we try to predict the number of defaults in the near future. Previous attempts toward this idea have used negative binomial regression models to fit the data. We fit finite Poisson mixtures treating the number of components unknown which have to be estimated from the data. Using covariates in all components, we reveal the impact of several demographic variates in creating the different groups of customers but we are able to predict for each customer the group to which he belongs, as well his expected number of defaults. This is of particular interest for financial purposes as it allows the estimation of the expected loss from each customer and thus the ability to create rules for providing the loan on a personal basis. This classification allows the means to determine the optimal interest rate to maximize bank profit under asymmetrical information. This paper uses real data and compares various models focusing on the finite Poisson mixture regression models.

The Future of Relationship Marketing

* Preface * The Future of Relationship Marketing (Adrian Palmer and David Bejou) * Relationship Marketing: The Challenge of Dialogical Interaction (Richard J. Varey and David Ballantyne) * Trust, Satisfaction and Loyalty in Customer Relationship Management: An Application of Justice Theory (Lyle R. Wetsch) * Are Variety-Seekers Bad Customers? An Analysis of the Role of Recommendations in the Service Profit Chain (Herbert Woratschek and Chris Horbel) * The 4Ps of Relational Marketing, Perspectives, Perceptions and Paradigms: Learnings from Organizational Theory and the Strategy Literature (Jaqueline Pels and Michael Saren) * An Exploratory Analysis of CRM Implementation Models (Stephan C. Henneberg) * Developing Buyer-Seller Relationships Through Face to Face Negotiations (Tracy G. Harwood) * Index * Reference Notes Included

Are Variety-Seekers Bad Customers?

SUMMARY Variety-seeking behavior occurs if customers derive utility from a change of service providers. It has negative consequences for the firm's profits, because it functions as a moderating factor in the relationship of customer satisfaction and customer loyalty. Even by offering high service quality variety-seekers cannot be retained. Therefore variety-seekers are often seen as “bad” customers, because they are not loyal to the firm. This article will show variety-seeking behavior in a more positive light. Variety-seekers are satisfied customers and therefore they are likely to engage in positive word-of-mouth communication. Recommendations will help to attract new customers and thus increase profits.

Bank Lending with Information Asymmetry, Information Sharing and Winner's Curse

Bank customers exhibit differing behavior when repaying credits. Lenders are, therefore, uncertain about borrowers' quality. Having superior knowledge about the behavioral type of a customer might generate a surplus for a bank. Crucial in that profit opportunity is the asymmetrically distributed information between the banks. Since it is not obvious which interest rate is paid in such circumstances, we will first show the equilibrium conditions and outcomes which are driven by winner's curse effects. These will be compared to an information-sharing, symmetric information setting. Banks are indifferent between both settings. A good customer favors a regime which allows banks to share information and for which he has a positive willingness to pay. A bad customer prefers no information sharing.

Managing loan customers using misclassification patterns of credit scoring model

A number of credit scoring models have been developed to evaluate credit risk of new loan applicants and existing loan customers, respectively. This study proposes a method to manage existing customers by using misclassification patterns of credit scoring model. We divide two groups of customers, the currently good and bad credit customers, into two subgroups, respectively, according to whether their credit status is misclassified or not by the neural network model. In addition, we infer the characteristics of each subgroup and propose management strategies corresponding to each subgroup.

SERVICE QUALITY: Understanding customer Perception and Reaction, and Its Impact on Business

This paper is an attempt to explain the process and outcomes of customer services levels and how they shape customer perceptions (of their relationship with services providers) and reactions. As an entirely conceptual work, this paper proposes a model for understanding the pathway and the end of good and bad customer service. Implications of the study on theory and practice are discussed.

Women, Justice, and Custom: the Discourse of "Good Custom" and "Bad Custom" in Papua New Guinea and Canada

Court decisions involving custom, the rights of women, and positivist law in Papua New Guinea and Canada are explored and contrasted. In Papua New Guinea the courts have struck down aspects of custom or customary law as being repugnant to the general principles of humanity and in violation of positivist law. In Canada men have argued for the application of custom as a mitigating factor in sentencing, asserting that it offers justification for conduct against women judged criminal under positivist law. Examining judicial discourse on custom or customary law in the two countries illuminates the tensions between custom and positivist law, revealing how custom comes to be judged good or bad and is reframed as non-normative in one country but as an appropriate cultural component in sentencing in the other.

Women, Justice, and Custom: the Discourse of "Good Custom" and "Bad Custom" in Papua New Guinea and Canada

Women, Justice, and Custom: the Discourse of "Good Custom" and "Bad Custom" in Papua New Guinea and Canada

Servitude in Roussillon

Was there serfdom in Roussillon during the thirteenth century, a time when it developed in Catalonia ? The question is linked to the status of Roussillon within the Aragonese-Catalan kingdom. The fortress of Salses was the conventional northern boundary of Catalonia in political-geographic discourse, but Roussillon and the diocese of Elne’s relation to Old Catalonia (the dioceses of Vic, Girona, Urgell and most of Barcelona) was ambiguous. Old Catalonia was the territory of servitude while the lands south and east of the Llobregat River ("New Catalonia") were free. Roussillon does not fit clearly into this territorial and social division. Documents from Roussillon include aspects of servile tenure ("bad customs", redemption, sale of land with existing tenants, peasant complaints of mistreatment), but the general impression is one of a weak and incidental form of serfdom rather than a dominant or even preponderant institution.

Bel ou mal canto ? Le chant romantique selon Hector Berlioz

In his musical reviews, that have been written for fourty years, from 1823 to 1863, Berlioz often proved to be intolerant, biased and full of contradictions as a judge. One of the targets he most often ill-treated with his ironical writing, certainly is the tenor of the romantic opera, who uses too many easy effects and chest notes, to the detriment of the music and the dramatic truth. Berlioz drew up a very severe indictment of the bad customs that, according to him, had come from Italy : in fact he is waiting for a « new » school of singing and above all of composing, specifically french, which means that it would be inspired by the colours and the rhythms of the natural prosody to create the truth of emotion. With no nationalism, but the demand of authenticity within originality, Berlioz thus introduced the romantic fight at the intersection of the arts of entertainments, esthetic and pedagogy.

Good and bad customers: the benefits of participating in the banking relationship

The development of effective customer relationships is widely advocated as a key element of marketing strategies in the service sector. The advantages associated with the development of such relationships are thought to be particularly relevant in the case of services for which credence qualities are high. However, a key feature of most services is customer participation in the production and the delivery of the service. The ability of an organization to develop and maintain a relationship with its customers will be dependent on their willingness to participate. For participation to be worthwhile, customers must perceive that it yields benefits which are greater than those which accrue from non‐participation. Examines the extent to which participation in the banking relationship occurs and the implications of this for quality of service, using evidence from a survey of over 6,000 UK small businesses.

Popular Catholicism in Irish New York, c1900

In 1905 was published one of the most interesting books ever written about New York. It was a study by Elsa Herzfeld of twenty-four working-class families living on Manhattan’s West Side. All too briefly, yet with many tantalizing quotations and anecdotes, she discussed a whole series of themes that most previous students of New York life had taken for granted, or perhaps regarded as too trivial to be worth recording: the pictures people had on their walls, the music they liked, relations between spouses and between parents and children, beliefs about good and bad luck, funeral customs, and attitudes to physicians and hospitals. The families all included at least two generations, the older of which was predominantly European born. Most were of Irish or German descent. The purpose of the volume was to identify the distinguishing characteristics of what it termed Tenement-House Man’. There is thus a tendency to stress what is common to the families studied, and to suggest a shared pattern of life. Time and time again, though, there are hints that religion was a differentiating factor within this allegedly homogeneous culture. In particular there are frequent references to Catholics as in some sense a group apart—a very large group apart, as they made up about 40 per cent of the city’s population at that time.

THROMBOSIS.Remarks made at the Opening Exercises of the College of Physicians and Surgeons, Boston, Sept. 19, 1894.

HEART CLOTS OR THROMBOSIS. Practically this subject is in my line of genealogy, as my father, Dr. Benjamin Cutter, died of thrombosis; in my line of clinical morphology, as it includes the detection of the pre-thrombic or embolie state, and in the line of applied medicine, which teaches that thrombosis is caused by soured food and is curable by diet, mainly, an American idea practically proved. The subject has been studied much and well. I own a Latin essay on the polypi of the heart, published in 1729, at Jena, and read before a critical audience, including Dr. Hermann Frederick Teichermeyer, President of the Medical College, by Dr. John Christian de Winterbach, as his inaugural thesis for the doctorate of medicine. Not a bad custom for to-day! The essay is short, but deep and creditable now. It shows that fibrinous concretions in the heart and blood vessels have been observed