Case Title Safe Elevators: Customer Retention Model
Case Author(s) Aishwarya Pasricha           
University T. A. Pai Management Institute (TAPMI), Manipal, India
Abstract Safe Elevators, an OEM of elevators, faces tough price competition from third party maintenance providers in the market for annual maintenance contracts (AMCs). AMCs are very lucrative and service quality and reputation play an important role in securing orders for new elevators. A management trainee has proposed a discount scheme to attract customers for its proposed long term (5 years) AMCs. He has developed a spreadsheet model for working out the breakeven discount rate, as a function of the probability of retaining a customer without such a discount.
Available In MIP Case Collection
Publisher T. A. Pai Management Institute (TAPMI), Manipal, India
Publisher Case No. 1997-99-01
Distributor(s) T. A. Pai Management Institute (TAPMI), Manipal, India               
Pub/Rev Date 04/01/1999
ISBN
Case Length 4
Teaching Note No
Pub TN Ref No.
Pages (TN)
Issues Services Marketing, Spreadsheet Modeling, Decision Analysis
Organisation(s)        
Countries India
Industry Industrial Products, Tools & Machinery
Period Covered 1997-1999
Level Postgraduate