Behaviour Revenue Management in Information Networks (BRIN)

Behaviour Revenue Management in Information Networks (BRIN)

The recent pervasive adoption of modern IT in the marketplace has profoundly changed information availability to consumers and firms. This improved information endowment results in changes in consumer behavior and corporate strategy. Better informed consumers know exactly what is available to them with the precise service attributes and prices. And they are able to find exactly what they want and are willing to pay premium prices to obtain products and services with perfect fit for them. As a result, firms are increasingly introducing new product portfolios and designing more diverse and even more precisely-targeted service offerings to what the consumers truly want. This latest development has provided firms with the opportunity to better determine a customer-centric strategy than ever before. The purpose of this research is to improve the understanding of the role of information in making revenue management decisions in complex business networks.  

Theme I: Informedness in Mobile Environment

Sub-Project 1: Smart Cards 

The way in which people use public transport in the Netherlands is changing, as it is in cities and countries across the globe. Trans Link Systems (TLS) delivers a seamless ticketing and fare collection solution for the complete public transport system throughout the Netherlands. The system was initially rolled out in Rotterdam in January 2009 and will be extended to cover the whole country. Using smart cards and reader technologies, this all-encompassing contactless ticketing infrastructure will cover trains, metro, trams and buses, providing travelers with increased convenience and added satisfaction. Once it has been fully implemented, the system will have to contend with an estimated 1.5 billion transactions each year. The use of smart card systems will simplify the purchase and use of public transport services across the nation – as similar systems have done for people around the globe (e.g., Hong Kong and London). Travelers will use smart cards with an e-purse, which can be combined with additional services. This research project examines a number of key issues related to smart cards implementation with respect to: information privacy, data usage, revenue management, customer behavior, user adoption, and vendor adoption. Different research methods are employed in this research project, including: case study, qualitative survey, field experiment, and computational simulation. 

Sub-Project 2: Location and Geo-Tagged Information 

 Technologies such as GPS, RFID, Mobile, Location Based Services, and smart cards allow firms to use location information and geo-tagged information to generate business value. It is important to investigate the effects of these information to different parties in the ecosystems: search provider, marketers, consumers, service providers, mobile operators, portals, publishers, and content providers. This research project involves interviews and surveys of a number of key technology vendors. 

Theme II: Informedness in Online Environment

Sub-Project 1: Personalization in Online Retailing 

Personalization and customization technologies offer a broad range of different services. For example, recommendations of books (Amazon.com), displaying selected news topics (Google News), and designing your own laptops (Dell.com). To compete for customers’ attention, firms are increasingly investing in technologies in developing personalization and optimization solutions. As an online retailer, what personalization services can online retailer bring to its customers? At the moment, a major online retailer in the Netherlands is experimenting with different personalized service designs to their returning customers. This research project answers the following questions: (1) Is personalization a viable method for online retailers to compete with brick-and-mortar retailers? (2) How far should an online retailer go in personalization? 

Sub-Project 2: Online and Offline Channel  

 Internet retailers face significant competition from brick-and-mortar retailers. Theoretical research on the competition can be traced back to 1998. However, it still remains unclear how and why customers substitute between online and offline channels? How do users’ information search and processing costs affect firms’ pricing strategies in online and offline environment? How can internet retailer increase its online visitors, more importantly, customers? This research project employs survey and experiment to examine how customers choose between online and office channels. The results will be translated to practical recommendations to our business partners. 

Sub-Project 3: The Impact of Long-Tail Offering on Firm's Value Network 

 "Our primary competitors are brick-and-mortar, so we have to be really responsive from a fulfillment standpoint. More and more, we’re going to be competing with the guy down the street where a customer can drive and pick up an order the same day." -- Kurt Goodwin, Vice President of operations of Crutchfield. Catalogue retailer is in the transition of moving from a traditional mail-order company to a pure online player. It allows the online retailer to sell more niche product offerings than previously possible. This has significantly changed many aspects of the firm. For example, product lifecycle has shortened over the past few years, from six months to three months as a result of moving online. This is expected to get even shorter (to maybe few weeks) in a couple of years. These changes will affect the firm’s logistic and ordering process. The research questions are: What are impacts of shortened product lifecycle? How does long-tail offering affect the value chain of the firm? 

 For more information regarding the BRIN project, or if you're interested in doing a bachelor or master thesis project in any of the sub-projects within BRIN, please contact Dr. Ting Li