Problem In 2012, I have this idea which has been slowly developing in my mind for quite some time and the idea came about from the process of doing grocery shopping with my wife. In the Korean supermarket industry, they are a big advocate of rewards programme to try and get their customers to come […]
Most banks know the profitability of their existing customer base. They would have done deep analysis using their customer relationship management (CRM) tool or from market research to produce perceptual maps of customers based on behaviour or psychographic variables.
The Fundamental Principle: In perfectly competitive markets, no firm realises economic profits e.g. pets.com downfall where the nature of the business is easily copied – the competitive aspect. Economic profits are returns in excess of the opportunity cost of capital. (Above and beyond accounting profits). In the real world, product markets are rarely perfect and […]