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The Identification of (Dis)Satisfied Customers in a Liberalized Energy Market: A Case Study of Essent N.V.

Schaik, R.A. van (2007) The Identification of (Dis)Satisfied Customers in a Liberalized Energy Market: A Case Study of Essent N.V. Bachelor's Thesis, Industrial Engineering and Management.

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Abstract

Due to the liberalization of the Dutch energy market, every company and customer is now free to decide from which power supplier they purchase their energy. Therefore, it is very important for Essent N.V. to know which customers are intended to switch to another energy company. In this bachelor’s thesis the identification of dissatisfied as well as satisfied customers of Essent N.V. is investigated. This research is a case study: we use available data of Essent N.V. for the analysis. Thus, none of the results can be generalized to other segments or competitors in the market. In this thesis, we aim at the identification of (dis)satisfied Essent customers, based on their power consumption, transaction costs and demographic factors. First of all, we did some literature research in order to come up with the most suitable analysis method, i.e. Procrustes analysis. After that, we used this analysis as optimal as possible. For instance, dealing with variables measured on different scales was one of the problems with Procrustes analysis, which had to be solved. The next step was to model the analysis method and apply this onto the data sets by programming it. In conclusion, we were not able to identify and specify (dis)satisfied customers based on all available factors completely. Still, we found some interesting results. First of all, non pensioned customers with a considerable number of inbound contacts with Essent do not think that Essent is involved with their customers. On the contrary, pensioners with a low number of inbound contacts do have this opin3 ion. Furthermore, the margins on electricity that Essent gain from this type of customers is relatively low. Secondly, customers who consider Essent to be non sympathetic have a relatively large urgency to switch to another energy supplier. These customers can also be identified by non reading glossy magazines, a small number of first reminders and a large number of outbound contacts. Further analysis is necessary in order to predict switch attitude of customers in the liberalized energy market in general, and for Essent customers in particular. Still, it is recommended to apply new marketing communication strategies onto the results found so far. Undoubtedly, satisfied and loyal customers are most important for Essent. Therefore, modifying actual marketing communication onto the segment of dissatisfied and switch intended customers is highly recommended.

Item Type: Thesis (Bachelor's Thesis)
Degree programme: Industrial Engineering and Management
Thesis type: Bachelor's Thesis
Language: English
Date Deposited: 15 Feb 2018 07:28
Last Modified: 15 Feb 2018 07:28
URI: http://fse.studenttheses.ub.rug.nl/id/eprint/8417

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