Title: The value of more accurate customer profitability reports: Does cost complexity matter?
Authors: Cardinaels, Eddy
Roodhooft, Filip
Warlop, Luk
Van Herck, Gustaaf
Issue Date: 2002
Publisher: K.U.Leuven - Departement toegepaste economische wetenschappen
Series Title: DTEW Research Report 0252 pages:1-23
Abstract: This paper reports experimental evidence on the potential benefits of reporting different levels of customer-related information in a pricing decision context. The paper mainly focuses on the influence of the complexity of the cost environment -measured by the degree of heterogeneity across customers- on the value of more accurate customer profitability systems. Contrary to the findings of Gupta & King (1997) our results indicate that the value of more accurate cost reports increases, as the cost environment becomes more complex. In addition we find that, compared to a situation where decision makers receive only general profit feedback, reports based on traditional costing systems improve the quality of the pricing decision only in a complex cost environment.
Publication status: published
KU Leuven publication type: IR
Appears in Collections:Research Center Accountancy, Leuven
Research Centre for Marketing and Consumer Science, Leuven

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