Customer differentiation with shipping as an ancillary service? free service, prioritization, and strategic delay

• Main Author: Sainathan, Arvind
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2019
• Subjects: Business::Marketing; E-Commerce; Free-Shipping
• Online Access: https://hdl.handle.net/10356/106422; http://hdl.handle.net/10220/50041
• Institution: Nanyang Technological University

A service provider/retailer offers ancillary service (e.g., shipping by an online retailer) to two types of customers, impatient and patient, who may be heterogeneous both in their delay sensitivities and service valuations. She can use prioritization and/or strategic delay to differentiate them by...