Measuring Customer Churn and Interconnectedness

Baker, Scott R.; Baugh, Brian; Sammon, Marco

doi:10.3386/w27707

Cited by 11 publications

(4 citation statements)

References 12 publications

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“…Companies will lose customers if they charge exorbitant prices during these tough times. Also, people might not accept that brand when the economy is back to normal (Baker, Baugh, & Sammon, 2020). However, if the brand decides to put itself out there as a brand for people, and a brand that cares, it definitely will have an added advantage when things start to get better.…”

Section: Economic Restrictionsmentioning

confidence: 99%

Pricing Strategies for Companies During the COVID-19 Pandemic

Chopra

Verma

Mandal

2021

International Journal of Business Strategy and Automation

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Companies adopt pricing strategies to maximize their profits. However, in light of an ongoing pandemic, these strategies have been put under the scanner across industries. Companies need to modify their pricing strategies to adapt to these unprecedented times. The study focuses on these pricing strategies, their necessity during the pandemic, and how they can be effectively implemented without any long-term implications for various companies and businesses. The study focuses on various aspects of pricing and the suitability of pricing strategies during the pandemic. The study suggests pricing strategies which companies may follow. Pricing strategies of several industries which are in crisis are also discussed. The study will help companies to understand the economic situation and formulate pricing strategies accordingly. Such pricing strategies will allow companies to satisfy their customers, sustain in the competition, and achieve business excellence.

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Section: Economic Restrictionsmentioning

confidence: 99%

Pricing Strategies for Companies During the COVID-19 Pandemic

Chopra

Verma

Mandal

2021

International Journal of Business Strategy and Automation

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“…Moreover, they find that the composition of customer bases is important, with stronger stock returns following increases in spending from customers with higher credit scores, wealth, and loyalty. Baker et al (2020b) demonstrate that aggregated firm-level statistics derived from household transaction data match well to traditional sources of firm-level data like Compustat. They develop two novel statistics about customer bases that cannot be generated using traditional data sources: the rate of churn in a firm's customer base and the pairwise similarity between two firms' customer bases.…”

Section: Analysis Of Firms Using Transaction Datamentioning

confidence: 64%

Household Financial Transaction Data

Baker

Kueng

2022

Annu. Rev. Econ.

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The growth of the availability and use of detailed household financial transaction micro data has dramatically expanded the ability of researchers to understand both household decision making and aggregate economic fluctuations across a wide range of fields. This class of transaction data is derived from a myriad of sources, including financial institutions, FinTech apps, and payment intermediaries. We review how these detailed data have been utilized in finance and economics research and analyze both their benefits and limitations as compared to more traditional measures of income, spending, and wealth. Finally, we discuss the future potential of this flexible class of data in firm-focused research, real-time policy analysis, and macro statistics.

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“…For the average firm, this real-time revenue amount is 1.31% of their reported revenues over the same quarter per Compustat (Comp_rev), and this percentage ranges from 0.23% to 1.76% for the first to third quartile. While this is a small fraction of reported revenues, our proportional coverage is larger than in other studies that use credit and debit card transactions as measures of firm sales, which range from 0.002% (Aghamolla and An 2021) to 0.6% (Baker et al 2021) of reported revenues. The first and third quartiles for Size (defined as the natural log of a firm's market value of equity) are 6.49 and 8.96, or $660 million and $7.8 billion, respectively.…”

Section: Sample Selection and Descriptive Statisticsmentioning

confidence: 81%

Real-time revenue and firm disclosure

et al. 2022

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We examine firm disclosure choice when information is received on a real-time, continuous basis. We use transaction-level credit and debit card sales for a sample of retail firms to construct a weekly measure of abnormal revenue for each firm. We validate the informativeness of this abnormal real-time revenue information, confirming its positive correlation with abnormal returns, unexpected revenue realizations, and management revenue forecast news. Using revenue forecasts, we find that firms are less likely to disclose abnormally negative news early in the quarter. As the quarter progresses, firms reduce their withholding of negative news. These results are consistent with impending earnings announcements disciplining managers to provide negative news. This pattern of initial withholding and then disclosure exists primarily in firms with high analyst coverage, high institutional ownership, or high litigation risk. Finally, we find increased insider stock sales in weeks with abnormally negative news and no firm disclosure. Overall, our study provides evidence of the informativeness of real-time information and manager discretion in its release.

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Measuring Customer Churn and Interconnectedness

Cited by 11 publications

References 12 publications

Pricing Strategies for Companies During the COVID-19 Pandemic

Pricing Strategies for Companies During the COVID-19 Pandemic

Household Financial Transaction Data

Real-time revenue and firm disclosure

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