How much to tell your customer? – A survey of three perspectives on selling strategies with incompletely specified products

Jochen Gönsch

European Journal of Operational Research, 2020, vol. 280, issue 3, 793-817

Abstract: Today's technology facilitates selling strategies that were unthinkable only a few years ago. One increasingly popular strategy uses incompletely specified products (ICSPs). The seller retains the right to specify some details of the product or service after the sale. The selling strategies’ main advantages are an additional dimension for market segmentation and operational flexibility due to supply-side substitution possibilities. Since the strategy became popular with Priceline and Hotwire in the travel industry about two decades ago, it has increasingly been adopted by other industries with stochastic demand and limited capacity as well. At the same time, it is actively researched from the perspectives of strategic operations management, empirics, and revenue management.

Keywords: Revenue management; Channel-choice; Supply-side substitution; Probabilistic/opaque/flexible products; Upgrades (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:280:y:2020:i:3:p:793-817

DOI: 10.1016/j.ejor.2019.02.008

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