Strategy Dynamics Briefing 58: Varying Customer Characteristics

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Customers usually differ from each other on many factors – purchase rates, price sensitivity, switching costs, rationality, time to respond etc. – and these differences affect the dynamics of competition. The table below gives some illustrative characteristics for two distinct customer groups in the electricity market discussed in Briefing 57.

Low users High users
Fraction of customers in each group 0.7 0.3
Quarterly usage $400 $600
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