How does firm scope depend on customer switching costs? Evidence from mobile telecommunications markets

• Main Authors: ABOLFATHI, Niloofar, SANTAMARIA, Simone, WILLIAMS, Charles
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2022
• Subjects: Customer switching costs; Demand-side perspective; Firm scope; Flexibility; Market frictions; Multiproduct; Sales and Merchandising; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/7277; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8276/viewcontent/FirmScope_av.pdf
• Institution: Singapore Management University

This paper examines the relative advantages of single-product and multiproduct firms following changes in customer switching costs. Whereas a single-product firm can closely tailor offerings to customers' needs, a multiproduct firm can create value for customers in the form of flexibility, allo...