3 ms·
Seems like it's another form of price-segmentation. Just like some people take the time to cut and collect coupons, some people will spend the time on a 20 minu
by mieseratte 7y ago
Seems like it's another form of price-segmentation. Just like some people take the time to cut and collect coupons, some people will spend the time on a 20 minute hold to spend another 20 minutes wrestling with a disempowered customer service representative, to spend another 10 on hold, to spend another 5 with the "supervisor" who is allowed to finally give you the proper rate.
Some MBA bean-counter types figured out there is money left on the table, and the relative hit to reputation and lost customers comes out to less than they gain by doing it.
- nitwit005 7y agoBehaviors like this seem to mostly come out of companies with only a few competitors, such as telecom companies and airlines. They know they can push the limit of what people can or will pay due to lack of options.
- nerdponx 7y agoThis is literally why monopoly market power is bad.Even if you were not technically the only seller in the market, high transactions/switching costs can amount to more or less the same thing.